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Hardening sustainability: Supply chain laws complement cocoa and coffee certifications

Environmental Policy
European Union
Globalisation
Governance
Global
International
Trade
Lena Partzsch
Freie Universität Berlin
Lena Partzsch
Freie Universität Berlin
Helen Breunig
Freie Universität Berlin

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Abstract

The European Union (EU) has recently adopted several supply chain laws. The 2023 EU Deforestation Regulation (EUDR) and the 2024 Corporate Sustainability Due Diligence Directive (CSDDD) are still the subject of fierce debate. This article examines the extent to which the new legislation complements, or even falls short of, existing voluntary sustainability standards (VSS). The focus is on the two affected commodities with the highest share of certified sustainable production, cocoa (41.8%) and coffee (24.7%). Using an analytical framework of scope, process and enforceability, we compare EUDR and CSDDD with the most widely used certification initiatives, Rainforest Alliance and Fairtrade International, for cocoa and coffee. The EU’s largest suppliers, Brazil and Côte d’Ivoire, have above-average levels of certification, and some aspects of the new legislation provide their producers with first-mover advantages. Nevertheless, the public legislation is more ambitious than the VSS in other aspects, in particular, reporting (procedure) and supervision (enforcement). It is thus in the interest of major suppliers to weaken the public legislation but not to abolish it.