Hardening corporate accountability in commodity supply chains under the European Union Deforestation Regulation

The European Union has introduced a new Regulation on deforestation to improve sustainability and legality in the supply chains of forest and agricultural products. Based on accountability studies and institutionalist theories, this regulation seeks to reinforce corporate responsibility through strict state regulation of supply chains, reducing the role of market incentives and private regulation. This change arises from experience with previous trade rules and the need to correct failures in the accountability of voluntary agreements. The new EU regulations will tighten the liability of foreign companies for socio-environmental externalities, although their effectiveness will depend on the final design, acceptance, compliance, implementation and the prevention of unintended negative effects.