Due Diligence in Supply Chains: The Case of the EUDR

Overview & Synopsis

The European Union Deforestation Regulation (EUDR) introduces a transformative shift in global trade governance by mandating due diligence for commodities linked to deforestation. While the regulation aims to reduce the EU’s environmental footprint, it places significant burdens on developing economies to comply, especially those reliant on agricultural exports, many of which are characterized by fragmented value chains and limited digital infrastructure. To ensure that no country is left behind in the transition to sustainable trade, this policy note outlines a dual-track strategy: one for national governments whose firms are exporting regulated commodities to the EU and another for development partners to support the efforts of national governments. These strategies are grounded in diagnostics, case studies, and a proposed policy framework.