1、Preventing Global Deforestation:Chinas Actions and Opportunities In collaboration with China Sustainability TribuneW H I T E P A P E RD E C E M B E R 2 0 2 2ContentsCover:GETTY/NORA CAROL PHOTOGRAPHYDisclaimer This document is published by the World Economic Forum as a contribution to a project,insi

2、ght area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Part

3、ners or other stakeholders.2022 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.PrefaceExecutive summary1.Introduction 1.1 Protect

4、ing forests:Critical to curb global heating 1.2 Greening soft commodity value chains:Where to start 1.3 Opportunity for and value of Chinese companies actions2.Consensus and challenges 2.1 Global consensus on forest and land use 2.2 Chinas actions for global forest protection 2.3 Reducing deforestat

5、ion driven by agricultural and forestry commodities:Key challenges3.Technology 3.1 Enhancing upstream production efficiency 3.2 Upgrading product traceability and transparency 3.3 Reducing imports through disruptive substitution4.Finance 4.1 Risks from deforestation 4.2 Financial mechanisms for defo

6、restation risk management5.Consumption 5.1 Sustainable consumption on the upswing 5.2 Synergies to release sustainable consumption6.Conclusion and recommendations 6.1 Consensus-based actions 6.2 Global response 6.3 The policy environment for Chinese companiesContributorsAcknowledgementEndnotesGoing

7、Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 23456602335363639PrefaceLiming Chen Chair of Greater China and Member of the Executive Committee,World Economic ForumZhu Hongren Executive Vice-President and Director-General of China Enterp

8、rise Confederation and the China Enterprise Directors AssociationPreventing Global Deforestation:Chinas Actions and OpportunitiesDecember 2022Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 3While international trade brings immense convenience into our lives,it als

9、o connects the worlds forests and land through a web of soft commodity trading.Value chains of products such as soybean,beef,palm oil and forest products contribute to global deforestation and land use change.How can China,as a giant consumer and manufacturer of agricultural and forest products,lead

10、 global partners in taking collective and innovative action?What role can its government and businesses play?This white paper examines the most promising initiatives that are currently under way to build sustainability into soft commodity supply chains.Based on this,it draws some actionable conclusi

11、ons.First,multistakeholder consensus needs to be built around the conviction that establishing responsible,healthy and sustainable supply chains is essential for preventing deforestation and land degradation,which in turn are imperative for tackling climate change.Second,global and collective action

12、s are required from upstream producing,midstream trading and downstream purchasing/consuming companies to promote green transformation of soft commodity supply chains.Third,while businesses are no doubt the primary players in soft commodity supply chains,efforts to mobilize collectively must include

13、 policy and financial instruments,as well as investments in technological innovation,capacity building and consumer awareness.The efforts presented in this white paper embody Chinas commitment to an“ecological civilization”,which entails building a shared future for all life on earth.We hope this wh

14、ite paper will establish a starting position from which more Chinese companies in the soft commodities segment can take action to prevent and avoid deforestation and land use change in their procurement and supply chains.We invite more business leaders to join hands in this endeavour to make soft co

15、mmodity supply chains greener and more sustainable.Executive summaryGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 4Globally,the demand for agriculture and forestry commodities such as soybean,palm oil,beef and paper is increasing rapidly.If not managed efficientl

16、y and sustainably,forested and agricultural lands will undergo deforestation and land use changes,both of which emit vast amounts of carbon into the atmosphere.Chinese companies,which operate in a major demand market for agriculture and forest products,have an opportunity to both contribute to and g

17、ain from the ongoing transition towards green supply chains of soft commodities.Analysis shows that more than 70%of the food industrys emissions come from land use,more specifically from agriculture and deforestation.1To prevent deforestation and make agriculture more sustainable,Chinese companies c

18、an invest in technological innovation,thereby tapping into emerging business opportunities while also unleashing market demand for sustainable consumption and sustainable finance.This report suggests some ways ahead:Foster breakthrough technological solutionsAgricultural technology is expected to tr

19、ansform the production efficiency and traceability of soft commodities.For example,the application of precision fertilization has greatly reduced the use of water and fertilizers while increasing productivity;digital management(such as the use of blockchain)in supply chains has provided transparency

20、 for tracing products to their origins;and integrated supply chain approaches are fostering sustainable intensification of agriculture.Such technological transformation can not only provide solutions to reduce commodity-driven deforestation but also create new business opportunities.Mitigate financi

21、al risks and discover investment opportunitiesNormally,soft commodity production requires pre-financing to clear land for development and planting.Establishing standards to reduce and remove harmful financial incentives for deforestation-related land clearance is important.Besides,financial institut

22、ions can establish risk-evaluation platforms to systematically manage financial risks pertaining to deforestation in their portfolio decision-making processes.This can actively contribute to climate and biodiversity targets by promoting greener soft commodity supply chains.Create consumer awarenessC

23、onsumption is both the end and the beginning of economic activity.Billions of consumers can team up with companies to promote sustainable consumption and production.By creating consumer awareness and changing consumption behaviour,companies can achieve a win-win for profitability as well as sustaina

24、bility.Building upon the Glasgow Leaders Declaration on Forests and Land Use,which pledged to halt and reverse forest loss and land degradation by 2030,China,as one of the biggest consumers of soft commodities in the world,can lead the way through business innovation,policy guidance and consumer awa

25、reness.Introduction1GETTY/ANUP SHAHGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 51.11.2Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 6At the 26th Climate Change Conference of the Parties(COP26)of the United Nations(UN)in Nove

26、mber 2021,China along with 144 countries and regions signed the Glasgow Leaders Declaration on Forests and Land Use,pledging to halt and reverse forest loss and land degradation by 2030.Together,these signatories account for more than 90%of the global forest area,and this was the first time that Chi

27、nas senior leaders signed up to join major global players in reducing deforestation on a global scale.With the major demand markets of China,Europe and the United States having made commitments and sent positive signals,it set a strong foundation for the sustainable management of forests and for coo

28、peration among the various partners in the international trade and cross-border supply chains of agricultural and forest products.At the 15th Conference of the Parties to the United Nations Convention on Biological Diversity(COP15),China holds the presidency and is actively urging all parties to sig

29、n the Global Biodiversity Framework.The international community expects the active participation and contribution of Chinese enterprises,and the Chinese government is developing a national strategic framework and roadmap to this end.The production and consumption of bulk agriculture and forestry com

30、modities(especially soybean,beef,palm oil and forest products)plays an important role in global biodiversity and in addressing the Sustainable Development Goals(SDG),particularly SDG 13 for climate action,as well as the broader aims of economic development,supply chain resilience,poverty alleviation

31、,food security and improvement of livelihoods.Shaping more sustainable supply chains is a shared responsibility of stakeholders including traders,processors,manufacturers,retailers and consumers,as well as governments.This report advocates that China-based companies make joint,cooperative efforts to

32、 accelerate industry-wide action to reduce agriculture-driven deforestation.Protecting forests:Critical to curb global heatingGlobal population growth and increases in per capita consumption of food,energy and products such as textile fibre,timber and animal feed have caused unprecedented exploitati

33、on of land.Statistics show that a quarter to a third of the potential net primary production of land is used for food,feed,textile fibre,timber and energy.2 Expansion of agricultural and pastoral lands has eroded natural ecosystems such as forests,savannahs,natural grasslands and wetlands,leading to

34、 a series of natural,climate,social and economic risks.From the 1990s to the 2010s,global forests shrank by 19%,while global carbon emissions soared by 46%.3 Deforestation accounts for 15%-20%of global carbon emissions generated by human activities in the world every year.4 As greenhouse gas(GHG)emi

35、ssions increased and forests ability to absorb them declined,tropical forests were able to offset just 6%of human-generated carbon dioxide(CO2)in the 2010s,down from 17%in the 1990s.Deforestation can also destroy the hydrological cycle,leading to soil erosion,desertification,habitat loss,biodiversit

36、y loss,floods and many other climatic phenomena detrimental to life on the planet.5 Tropical rainforests are among the most diverse ecosystems on earth,and deforestation may incur a series of systemic risks such as the outbreak and spread of infectious diseases.6Greening soft commodity value chains:

37、Where to start Studies show that fluctuations in prices of agricultural and forest products can increase or decrease deforestation.7 When a country enters international markets,local prices get closer to international prices.If trade liberalization raises local agricultural prices,deforestation incr

38、eases,and the opposite is also true.Restricting forest access can limit deforestation.In areas rich in forest resources,loose forest access and labour and capital inputs can increase deforestation.Countries that have a comparative advantage in producing agricultural and forest products are likely to

39、 be affected more.Empirical evidence shows that increases in prices of agricultural and forest products have led to increases in deforestation in countries with rich tropical forest resources,including Australia,Brazil,Costa Rica,Mexico,Tanzania and Thailand.8542 Mt(21%)72 million tonnes(Mt)(3%)59 M

40、t(2%)78 Mt(3%)228 Mt(9%)275 Mt(10%)62 Mt(2%)66 Mt(2%)148 Mt(6%)87 Mt(3%)64 Mt(2%)58 Mt(2%)95 Mt(4%)94 Mt(4%)106 Mt(4%)105 Mt(4%)0%0.71.21.82.22.6 Gt100%Share percommodity groupForest productsPlant-based fibresOther cropsSugarWheatRiceOther cerealsVegetables,fruits,nutsOilseed productsCattle meatBraz

41、ilRest of Latin AmericaRest of Asia-PacificAfricaIndonesia75%50%25%Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 7Studies have shown the extent to which land use changes and farming make up for global net carbon emissions caused by the destruction of tropical rai

42、nforests,about one-third of them driven by commercial interests of international trade,9 and at least 40%by the production of agricultural and forestry commodities such as soybean,palm oil,beef,paper and pulp.10 In addition,the upstream supply of agricultural and forestry commodities in the internat

43、ional supply chains and by large multinational traders also makes up a significant part of carbon emissions.How business drivers affected permanent deforestation from 2001 to 2019FIGURE 1.1:FIGURE 1.2(A):92.0%93.0%94.0%95.0%96.0%97.0%98.0%10Area of deforestration(million hectares)Commercial driver98

44、765432000000012001Urbanization driverProportion of commercial driverSource:Global Forest Watch,“Global Primary Forest Loss”,https:/gfw.global/3zPogL2.CO2 emissions of major producers of agricultural and forest products,2010-2014Going

45、Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 8FIGURE 1.2(B):Relationship between carbon emissions from agricultural and forest products and international trade in tropical regions,2010-2014Latin America1.2 billion tonnes of carbon dioxide t CO2Producer(where deforestr

46、ationoccurs to produce food and timber)Consumer(where these productsare consumed)Consumed in Latin American country it was produced in0.9 billion t CO2Consumed in African countries it was produced in 0.4 billion t CO2Consumed in Asian country it was produced in0.6 billion t CO2Traded within Latin Am

47、erica,or imported 0.1 billion t CO2Traded within Asia Pacific,or imported0.2 billion t CO2Traded within African countries,or imported0.1 billion t CO2Europe0.2 billion t CO2China0.12 billion t CO2Middle East0.1 billion t CO2North America0.1 billion t CO2Asia Pacific1 billion t CO2Africa0.4 billion t

48、 CO2Sources:F.Pendrill,U.M.Persson,J.Godar,T.Kastner,D.Moran,S.Schmidt,R.Wood,“Agricultural and forestry trade drives large share of tropical deforestation emissions”,Global Environmental Change,2019,Volume 56,pp.1-10,https:/ and M.Roser,“Deforestation and Forest Loss”,https:/ourworldindata.org/defo

49、restation.In particular,in the international market for soybean,beef,palm oil and forest products,the four largest traders Archer Daniels Midland(ADM),Bunge,Cargill and Louis Dreyfus Company(LDC),collectively referred to as“the ABCD companies”usually capture high market concentration and have a stro

50、ng industry-wide presence.They account for 70%or more of international agricultural goods trade,with great clout in pricing and trading mechanisms.11 At the 26th UN Climate Change Conference(COP26),12 agricultural commodities traders represented by the ABCD companies and the Chinese food processing

51、and trading company COFCO International issued a joint statement reiterating their commitment to the 1.5C pathway and an action roadmap for carbon reduction in their supply chains.Production-linked carbon emissions in the supply chain are likely to be classified as“indirect emission sources”that fal

52、l under Scope 3 emissions,currently not subject to mandatory corporate disclosures.12 With increasing consumer demand for green purchases,stricter supervision of corporate ecological impacts,and better-defined international trade laws such as the EUs Carbon Border Adjustment Mechanism(CBAM),excessiv

53、e indirect carbon emissions will eventually hinder companies from reaching real carbon reduction goals and social responsibility commitments.Therefore,companies must work to eliminate the upstream carbon emissions of soft commodities.UNSPLASH/REISEUHU DEGoing Above and Beyond:Chinas Opportunities in

54、 the Shared Future of Global Forests 9GHG emissions at various steps in food products supply chainsFIGURE 1.3:Beef(beef herd)27%22%41%28%17%12%13%5%5%25%52%76%66%63%9.7%20%Coffee100%80%60%40%20%0%Dark chocolateLand use changePalm oilSoybean oilFarmAnimal feedProcessingTransportRetailPackagingSource:

55、Our World in Data,“Food:Greenhouse gas emissions across the supply chain”,https:/ourworldindata.org/grapher/food-emissions-supply-chain?country=Beef+%28beef+herd%29CoffeeDark+ChocolatePalm+OilSoybean+Oil.ChinaEUNorth AmericaSouthern AsiaUnit:10 thousand tonsWorldChinaEUNorth AmericaSouthern AsiaWorl

56、dChinaEUNorth AmericaSouthern AsiaWorldChinaEUNorth AmericaSouthern AsiaWorldChinaEUNorth AmericaSouthern AsiaWorldChinaEUNorth AmericaSouthern AsiaWorldChinaEUNorth AmericaSouthern AsiaWorld020052050000000250003000035000Wood pulpBeaf and vealCoffee beans(green)Oil(p

57、alm)Loss rate of global primary forestLoss rate of global tropical forestOilseeds and soybeanOil(palm)1.3Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 10FIGURE 1.4:Import volume by region and global natural forest loss rateNote:The statistics for some

58、years are incomplete,and all totals are rounded off.Source:FAO,“Forestry Production and Trade”,http:/www.fao.org/faostat/en/#data/FO;USDA,“Market and Trade Data”,https:/apps.fas.usda.gov/psdonline/app/index.html#/app/advQuery;R.J.Keenan,G.A.Reams,F.Achard,J.V.de Freitas,A.Grainger and E.Lindquist,“D

59、ynamics of global forest area:Results from the FAO Global Forest Resources Assessment 2015”,Forest Ecology and Management,2015,Vol.352,pp.9-20,https:/doi.org/10.1016/j.foreco.2015.06.014.The latest data show that the rate of global forest loss has declined substantially since the 1990s(Figure 1.4).W

60、hile the decline is good news,agricultural expansion remains the main driver of global forest loss.13 More sustainable solutions are needed to satisfy the need for soft commodity products while avoiding deforestation.Driven by factors such as its increased economic strength and expanded domestic dem

61、and,China has grown into the worlds largest importer of soybean,beef and forest products,and the second largest importer of palm oil.This has created great potential for China to promote the low-carbon transformation of global supply chains of soft commodities.Figure 1.5 shows to what extent various

62、 countries import of Brazilian soybean causes GHG emissions from activities such as land use change,crop production,transportation and industrial processing.Opportunity for and value of Chinese companies actionsGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 11Redu

63、cing carbon emissions China will aim to hit peak emissions before 2030 and to reach carbon neutrality before 2060.Chinese companies need to conform to these targets and complete their low-carbon transformation accordingly.Taking the soybean example from Figure 1.5,since Chinas imports are from areas

64、 at lower risk of deforestation,emissions related to land use changes and farming account for a slightly smaller proportion of GHG emissions than those from transportation and industrial processing.Choosing the right supply sources can reduce deforestation,and shows where Chinese companies have the

65、most scope for emissions reduction in the Brazilian soybean supply chain.FIGURE 1.5:Carbon emissions per ton of Brazilian soybean imported by economies from 2010 to 2015 SpainSaudi ArabiaJapanPortugalGermanyRomaniaUnited KingdomThailandMainland ChinaRussian FederationVietnamNetherlandsItalyNorwayFra

66、nceIndonesiaSouth KoreaIranSloveniaTons of carbon dioxide equivalent per ton of soybean equivalent.00.20.40.60.811.21.4Land use changeCrop productionDomestic transportMaritime transportIndustrial processingNote:Soybean equivalent means the amount of raw soybean used in oil,cake and beans at the end

67、of each supply chain.The figure has been simplified based on the source.Source:N.Escobar,E.Tizado,E.Ermgassen,P.Lfgren,J.Brner and J.Godarf,“Spatially-explicit footprints of agricultural commodities:Mapping carbon emissions embodied in Brazils soy exports”,Global Environmental Change,2020,Vol.62,htt

68、ps:/ KingdomUnited StatesSouth AfricaLuxembourg1.24Belgium0.970.95Switzerland0.640.51France0.420.42Sweden0.410.39Japan0.380.35China0.140.09India0.080per ton0.511.522.532.712.78Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 12Source:World Economic Forum,“Forests,Fo

69、od Systems and Livelihoods:Trends,Forecasts and Solutions to Reframe Approaches to Protecting Forests”,Switzerland:World Economic Forum(2021);F.Pendrill,U.M.Persson,J.Godar,T.Kastner,D.Moran,S.Schmidt and R.Wood,“Agricultural and forestry trade drives large share of tropical deforestation emissions”

70、,Global Environmental Change,2019,Vol.56,pp.1-10,https:/ 1.6(A):FIGURE 1.6(B):Countries per capita protein consumption,1990-2019Countries average deforestation-related carbon footprint from food consumption20050000000250003000035000400004500050000550006000065000222426283032343638404244Pro

71、tein consumption per capita(kg)Per capita GDP,1990-2019/Real 2017$PPP per personChange in protein consumpion from 1900 to 20191.This includes all protein sources:plant,meat,eggs and dairy,aquaculture,wild-catch fisheries and non-traditional.2.Includes lower-income and lower middle-income countries a

72、s classified by the World Bank.OECD countries average protein consumption 20191Developing countries average protein consumption 20192NigeriaIndiaChinaBrazilSouth AfricaIndonesiaJapanGermanyUnited StatesAustraliaFranceUnited KingdomSouth KoreaCultivating new types of consumersBenefiting from rapid ec

73、onomic growth,Chinas per capita protein consumption has overtaken the average of OECD countries(Figure 1.6).Chinese consumers may now enter a new consumption stage to place greater premium on health and environmental protection.The relatively low correlation between Chinas per capita carbon footprin

74、t and tropical deforestation is a favourable foundation.14 Far-sighted Chinese companies should turn towards enabling more sustainable consumption.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 13Strengthening influence in international tradeIn 2018,Chinas soybean

75、 imports from Argentina,Brazil and the United States accounted for 95.63%of its total,up 1%over 2017,yet the increase in import volume did not earn a lower purchase price.Evidently,even as a major buyer on the international stage,Chinese companies have limited bargaining and discourse power in some

76、markets of soft commodities that are highly dependent on other countries.15 In such cases,sustainable finance and technology will be an opportunity for companies to enhance their market advantages in cross-border trade and ensure Chinas food security.Avoiding reputation risks Deforestation-related r

77、eputation events can impact a soft commodity-related companys value by up to 30%,by one estimate.16 This value impact has increased in the last 20 years through the effect of social media.As the global awareness of environmental protection increases,investors,consumers,governments and other stakehol

78、ders take deforestation more seriously.By expanding markets through green supply chain management,Chinese companies can build their international brand reputation,reduce investment risks from climate change and increase profits.Consensus and challenges2GETTY/D3SIGNGoing Above and Beyond:Chinas Oppor

79、tunities in the Shared Future of Global Forests 142.12.2Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 15Global consensus on forest and land useAt the COP26 in Glasgow in 2021,China together with the 144 other signatories to the Leaders Declaration on Forests and

80、Land Use pledged to stop deforestation and land degradation,conserve and restore forests and other terrestrial ecosystems,and conserve biodiversity.Among other steps,they agreed on the following:1.Facilitating conducive trade and development policies,internationally and domestically,and promoting su

81、stainable commodity production and consumption.2.Incentivizing sustainable agriculture and promoting food security while protecting and benefitting the environment.3.Increasing and driving finance and investment from a wide variety of private sector sources towards sustainable agriculture and forest

82、 management,as well as forest conservation and restoration.In addition,12 countries announced the Global Forest Finance Pledge(GFFP)to provide$12 billion for forest-related climate finance to support activities such as strengthening forest governance,supporting landscape restoration,assigning land t

83、enure clearly and leveraging private investment.A range of international pacts such as the United Nations Framework Convention on Climate Change(UNFCCC),Paris Agreement,Convention on Biological Diversity,United Nations Convention to Combat Desertification,as well as the Sustainable Development Goals

84、,also converge towards the goals of sustainable agriculture and forestry and the conservation of biodiversity.Chinas actions for global forest protectionPolicy action2.2.12.2.2In addition to the joint commitment at COP26,China also pledged in the Joint Press Communiqu following the Second EU-China H

85、igh Level Environment and Climate Dialogue and the US-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s to support global action against deforestation through greater cooperation in:conservation and sustainable management of forests.promotion of more sustainable supply chains.

86、action against illegal logging and associated trade.The high-level commitment has also extended the scope of“ecological civilization”from eco-environmental protection to green and low-carbon development in corporate production,commodity circulation,investment and related fields.Industry actionChines

87、e industry associations have stepped up efforts to alter their supply chains and operations for the protection of global forests.In 2017,the China Meat Association along with the World Wide Fund for Nature(WWF)and 60 Chinese meat companies released the Chinese Sustainable Meat Declaration.In 2018,th

88、e China Chamber of Commerce for Import and Export of Foodstuffs,Native Produce and Animal By-Products(CFNA),the WWF and the Roundtable for Sustainable Palm Oil jointly launched the China Sustainable Palm Oil Alliance.And in 2021,China published a Specification for Meat Industry Green Trade,17 the in

89、dustrys first collective standard calling for“avoiding the purchase of products from areas at high risk of deforestation”.Multinational corporations dealing in soft commodities have started to commit to completely avoiding deforestation anywhere in the world.Globally,14 agricultural commodity corpor

90、ations have pledged to halt forest loss associated with agricultural commodity production and trade,and 21 of the worlds largest manufacturers and retailers have joined the Forest Positive Coalition of Action to collectively develop commodity roadmaps for forest-positive targets.18 To work towards C

91、hinas aim to hit peak emissions before 2030 and carbon neutrality before 2060,242 Chinese companies have committed to climate action and emissions reduction through the Science Based Target initiative(SBTi).Among them,82 companies have submitted their climate targets.19 They will also prioritize sha

92、ping a green supply chain,for instance by assessing their supply chains carbon inventory and trading in products that are certified as sustainable.20 2.3Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 16Reducing deforestation driven by agricultural and forestry com

93、modities:Key challengesAgricultural and forestry commodities feature long supply chains,diverse business types,a wide range of areas and worldwide stakeholders with complex interests.Setting clear goals and reaching consensus for action by all parties are prerequisites for promoting zero deforestati

94、on,addressing climate change,reversing biodiversity loss,and achieving global sustainable development.The picture is complicated by the facts that no international consensus exists on the definition and measurement of deforestation,nor are the respective responsibilities of the various stakeholders

95、clearly defined.The channels for access to information related to forest and land use risks are not open,and since no timely disclosures are mandated,assessing progress on fulfilling commitments is difficult.No clear supervision mechanism or authority exists,and producing countries,indigenous people

96、s,consumer countries and individual consumers have little influence on promoting the demand for and consensus on zero deforestation.What is needed is a bridge between national policies and actions by various stakeholders along the supply chain.Soft commodity supply chains are complex and encompass a

97、 range of stakeholders with varying interests.The production side(mainly producers and governments of producing countries)is focused on reaping commercial rewards and achieving socioeconomic development while maintaining sustainable livelihoods for farmers and protecting the natural environment.Proc

98、essors,manufacturers and traders devote greater attention to ensuring the smooth flow of trade and a continuous supply of raw materials and commodities that meet the relevant standards.The consumption side(mainly consumers and governments of consumer countries)cares more about the acquisition of sta

99、ble,reliable,healthy and safe products,and expects more sustainable consumer behaviour.Other organizations(mainly financial institutions,industry associations,international organizations,NGOs and research institutes)are more concerned about how stakeholders could register sustainable economic growth

100、 to ensure that commodity production is more socially inclusive and environmentally sustainable while meeting human needs and promoting development around the world.The demands and expectations of stakeholders in the industry chain contain both incentives for forest conservation and disincentives fo

101、r zero deforestation.(See Table 2.1)As such,promoting synergies among all stakeholders at the system level is key to mitigating deforestation.Incentives,challenges and actions for various stakeholders TABLE 2.1:StakeholderIncentives aligned with forest conservation and sustainable supply chainsKey c

102、hallenges to implementing zero-deforestation policyDirection of actionProducers(farmers,ranchers,smallholders,etc.)Stabilization of market demand Increased productivity and output More land is reclaimed for farming and grazing in order to maintain livelihoods,making for illegal deforestation.Low-cos

103、t raw materials are selected to reduce production costs.Agriculture is excessively expanded to meet the growing global demand Improve production technology to increase productivity Engage in sustainable certification of raw materials Seek compensation and incentives for forest conservation Establish

104、 direct access to buyers of sustainable raw materialsGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 17Processors/manufacturers Improved incomes and livelihoods Legal compliance and reputation management Achievement of climate targets with reduced carbon emissions

105、Stable supply chains and ability to meet market demands Access to more capital Improved reputation Cost sensitivity in procuring soft commodities as raw materials Lack of information and access to certified products To reduce costs,only mandated sustainable certification is carried out.Lack of actio

106、ns to develop product traceability systems,take carbon inventory and related actions.Make a commitment on or take action for zero deforestation Enhance efficiency and produce in a green and low-carbon manner Monitor and evaluate the deforestation risk of the raw materials purchased Disclose forest c

107、onservation actions regularly Practice sustainable sourcing Provide sustainability training to suppliers Acquire information about sustainable consumer requirementsSuppliers/traders Legal compliance Achievement of climate targets with reduced carbon emissions Increased global trade and supply chain

108、resilience Access to more sustainable capital resources Improved reputation More land is brought under agriculture to expand market share Procuring products with sustainable certification costs more Relatively low recognition or market demand for certified products Make a commitment on or take actio

109、n for zero-deforestation products Purchase and raise the ratio of commodities with sustainable certification Seek sustainability loans Set up a product traceability system Provide sustainability training to suppliers Disclose forest conservation actions regularlyConsumers Better food security,health

110、 and sustainability Peer influence Due to low awareness regarding sustainable consumption,quality,security and price are prioritized when buying goods while the impact on the environment is consideredless seriously Lack of information to recognize sustainable consumption and limited expressionof dem

111、and for sustainable products and services Pay attention to/buy sustainable goods Place a premium on the environmental reputation and sustainable development values of a brand Focus on corporate social responsibility information Enhance the awareness and recognition of sustainable consumption Express

112、 demand for sustainable consumption and refuse to buy deforestation-related goodsGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 18Financial institutions Reduced non-financial investment risk Promotion of sustainable finance in alignment with national guidance Impr

113、oved reputation Lack of deforestation risk review,effective monitoring and investigating mechanisms for investment projects Neglect of the environmental risk in investment projects or failure to incorporate deforestation in the environmental riskassessment.Develop financial products,including sustai

114、nable finance,green credit,etc.Strengthen ESG investment Evaluate the deforestation risk in investment Assess the carbon emissions of the investee Encourage the investee to seek out sustainable certificationIndustry associations Promotion of green,low-carbon and sustainable industry development Eval

115、uation of companies in the industry in all respects Fulfilment of industrys social responsibility commitments Lack of awareness about deforestation risk in industrysectors Lack of an industry-wide deforestation risk supervision system Lack of information and resource access for producing countries I

116、ntroduce relevant norms,standards and guidelines that promote the sustainable development of the industry Establish an exchange platform for sustainable industry development Engage in industry-wide cooperation with sustainable standard and certification institutions Incorporate deforestation-free is

117、sues into industry group standards Launch industry initiatives to address climate change and stop deforestation Conduct training on climate change,stopping deforestation and other sustainable development issuesRegulators Prevention and investigation of violations of laws and regulations Building of

118、a sound business environment Facilitation of information disclosure Protection of public interest Unclear liability for the deforestation risk caused by cross-border trade along the supply chains Lack of globally unified regulation of deforestation risk Strengthen the depth of corporate environmenta

119、l information disclosure and focus on the scope of carbon emissions Enhance the regulation of environmental issues and encourage corporates to focus on deforestation-free issues Propose carbon inventory requirements for imported soft commodities Introduce deforestation-free market incentive policies

120、Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 19Government departments(of producing countries)Land restoration and sustainable utilization Improved access to international financial resources Better climate action and reduction of carbon emissions Conservation of

121、 biodiversity and natural assets Ensuring the livelihoods of smallholder farmers and local communities Inadequate recognition and assessment of the sustainable value of forest resources Insufficient focus and management of legal deforestation Less stringent punishment for illegal deforestation Insuf

122、ficient incentives and continuous support for certification Introduce more detailed forest protection-related regulations and policies Establish forest reserves and strengthen the monitoring and punishment mechanism Compensate non-deforestation soybean and beef producers to stimulate forest conserva

123、tion Popularize and promote deforestation-free products to raise public awarenessGovernment departments (of the consumer country,China)National food security Improved climate action and reduction of carbon emissions Enhanced supply chain resilience Biodiversity conservation Lack of a standardized re

124、view mechanism for deforestation risk in imported commodities on the premise of meeting domestic market demand and ensuring stable supply Insufficient incentive and continuous support for certification Combat illegal trade;investigate and restrict imports of illegal deforestation products Introduce

125、regulations,policies and standards related to sustainable trade and green procurement Incorporate zero deforestation into actions against climate change Build a soft commodity traceability system and encourage commodities with sustainable certification Advocate the concept of sustainable consumption

126、 and boost the application of the zero-deforestation certification markInternational organizations/NGOs/research institutes Better climate action and reduction of carbon emissions Reversal of biodiversity loss Progress on Sustainable Development Goals Impetus to the green transition of companiesin a

127、groforestry and related industries Lack of in-depth research and international consensus on data and scientific evidence on forest and land use Insufficient advocacy on deforestation-free issues Conduct research on deforestation-free solutions and establish global sustainable certification standards

128、 Launch more initiatives and promote good practices related to zero deforestation Establish a communication platform to promote deforestation-free products and push concerted action by public and private sectors Provide technical assistance and training for farmers Collaborate on technology innovati

129、on in deforestation-freeproducts and systems Expose companies deforestation behavioursTechnology3GETTY/KDPGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 20Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 21Given the growing global

130、 demand for agricultural and forest products,technology can tackle the contradiction between unlimited demand and limited resources.The development and application of breakthrough agricultural technology is expected to bring disruptive changes to the production and supply of soft commodities.The dev

131、elopment and application of new technology such as digital technology in agriculture and commodity trade is reshaping supply chains towards more efficient,transparent and green development.This can not only prevent deforestation but also bring enormous new business opportunities.Enhancing upstream p

132、roduction efficiency 3.1Digital agriculture 3.1.1The development and application of digital agriculture can boost agricultural efficiency,reducing the use of inputs including land,thus cutting down the need for deforestation and land use change.The cattle industry is considered the primary driver of

133、 deforestation in Brazils Amazon region.However,beef production per hectare in this region is less than 10.5%of the European average,and unit income is only 11%of that from fruit or vegetable cultivation there.According to a 2014 study by Brazilian scientists,Brazilian pastures only produce one-thir

134、d of their sustainable carrying capacity.21 If ranchers could increase the figure to half,they could satisfy the global demand for Brazilian beef in 2040 as predicted by the Food and Agricultural Organization(FAO)without adding any new livestock land.22 Evidently,Brazils cattle industry has great ro

135、om for efficiency improvement,signaling a business opportunity to develop smart animal husbandry.Remote-sensing drones to accelerate land restorationCASE STUDY:XAG is a Chinese company that builds remote-sensing drones,unmanned ground vehicles(UGVs),autopilot consoles,agricultural Internet of Things

136、 platforms and smart agriculture systems to accurately manage the agricultural cycle of cultivation,planting,management and harvesting.Its smart agriculture solutions include mapping and intelligent field patrolling using remote-sensing drones,and auto-accurate cultivation and management with drones

137、,which have increased both the quality and the efficiency of land management while increasing productivity.In 2019,the yield per hectare of rice and wheat rose by nearly 2,250 kg over 2018.23 Precise management has saved pesticide spending of more than RMB 1 million($140,005)and a similar sum in mec

138、hanical oil spending in a state-level farm spread over 5,080 ha in Jiangsu province of China.XAGs UGVs and drones conduct autonomous operations in designated areas,avoiding repeated or omitted spraying.Combined with its precise variable spray technology,farmers can apply pesticides on demand,thereby

139、 using 30%less pesticides and fertilizers,and nearly 90%less water.24 XAGs drone technology can accelerate the restoration of vegetation after environmental crises such as the Australian fires and the degradation of the Ruoergai grasslands in the Sichuan province of China.Vertical farms 3.1.2The Uni

140、ted Nations projects that the worlds population will be 9.7 billion by 2050 and 11.2 billion by 2100.25 The business-as-usual scenario projects arable land to rise globally by 11%by 2050,or 172 million hectares,compared with 2012.26 Vertical agriculture will alleviate the pressure on land,while usin

141、g renewable resources to provide the precise conditions including temperature,humidity and light for crops to grow fast.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 2201800MillionhectaresHistoricalWorld2000201220252050Business as usualTowards sustaina

142、bilityStratified societiesVertical farming to increase productivity per hectareLand requirements projected by FAOFIGURE 3.1Source:FAO,“The future of food and agriculture:Alternative pathways to 2050”,http:/www.fao.org/3/I8429EN/i8429en.pdf.US-based Plenty,a vertical farming technology leader,claims

143、its farms produce about 400 times more food per acre than a traditional farm while using 99%less land and 95%less water.Equipped with digital technology to monitor the environment where plants grow,it uses artificial intelligence(AI)to grow crops faster and improve their quality and output.The techn

144、ology frees agricultural production from the external factors on which traditional agriculture depends,including pests and weather.Besides,when vertical farms are located close to markets,fresh produce can be taken to market without adding to the transport carbon footprint.Another US-based company,I

145、nfarm,has received$300 million in funding and expects to have 5 million sq ft cultivated by 2025.The company is building the worlds largest vertical farm to help cities become self-sufficient in food production.Chinese companies have undertaken vertical farm pilots.However,such businesses are still

146、working out their cost and business models to be truly successful in China.CASE STUDY:CASE STUDY:Integrated farming systems3.1.3Integrated crop-livestock systems enable sustainable intensification of agriculture by utilizing the synergistic relationships between plant and animal systems.The manure a

147、nd other organic matter produced as byproducts of livestock and poultry production are used as fertilizers to provide nutrients for crop production.The crops so produced in turn provide food for livestock and poultry breeding.Integration of forage crops,dairy farming and milk processing A leading Ch

148、inese dairy company applies the“zero-distance integration”model of forage planting,dairy farming and milk processing to produce infant milk powder.Through an approach based on the chain of“grass growing cow breeding milk production manure treatment power generation from biogas soil fertilization wit

149、h organic waste”,it improves efficiency while reducing GHG emissions arising from agricultural and industrial activities.By encompassing the primary,secondary and tertiary industries,it fosters a circular economy.Further,in a forage planting project,the company converted sandy farmland to grassland.

150、Through dryland farming,the soil was prevented from further desertification and the ecosystem was protected.It carried out planting around the pasture too,transforming 25,000 ha into a forage planting site.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 23Other agr

151、icultural technologies3.1.43.2.1Among other factors,agricultural production efficiency is rooted in seed selection,breeding and cultivation.To reduce agricultural dependence on resource endowment,it is necessary to breed seeds of high quality that offer larger yields and can thrive in adverse condit

152、ions.Upgrading product traceability and transparency3.2Improving the traceability and transparency along soft commodity supply chains enables companies and consumers to make informed decisions for sustainable,deforestation-free procurement and consumption.New technology secures traceability througho

153、ut supply chainsTraceability is a key lever to make soft commodity supply chains green and sustainable.China has increased research and development investment in tracing technology and has instituted regulations to promote traceability under the Food Safety Law of the Peoples Republic of China,which

154、 requires food producers and traders to“establish a food safety tracing system”.27 In addition,the COVID-19 pandemic has strengthened the traceability of Chinas imported frozen foods chain.Digital agriculture and traceability from farm to table CASE STUDY:CASE STUDY:Syngenta Chinas Modern Agricultur

155、e Platform(MAP)has established a new sustainable low-carbon brand,beSide,which provides consumers with safe and high-quality agricultural products,as well as visualized traceability information covering the entire value chain,including growing,harvesting,warehousing,transportation and sales.MAP empo

156、wers farmers with digital agriculture technology and innovative practices to grow high-quality and traceable crops in a climate-smart way and sell to commercial buyers at premium prices.In 2021,MAP beSide worked with farmers to assess and reduce their carbon footprint and found that the GHG emission

157、s of the beSide rice farm in Tianjin was 7,060.35 kg CO2e per hectare,40.20%less than the regional average.The brand now partners with several large-and medium-sized agricultural product distributors in China such as Dole,COFCO,Freshippo and JD.28The blockchain technology has enormous potential to a

158、ccelerate the construction of sustainable supply chains for soft commodities.A China-US soybean trade based on blockchain technology in 2018 proves that applying blockchain in commodity trade not only greatly improves trade efficiency and reduces corruption and fraud,but also promotes green trade fi

159、nancing by linking trade financing channels with certifiable sustainable production sources and transparent supply chains.Blockchain technology facilitates traceability along the supply chainIn January 2018,a cargo of US soybean shipped to China was traded in a blockchain-based system,with Louis Dre

160、yfus Company as the seller,and Bohi Industry,a Chinese private oil producer,as the buyer.The transaction involved several international banks and shipping companies,which made China the first in the world to complete a full-fledged agricultural trade through blockchain.The deal was settled on the Ea

161、sy Trading Connect platform developed by a number of financial institutions including the International Netherlands Group(ING).The time spent on processing documents and data was reduced five-fold.29Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 24Digitalization s

162、hapes a new pattern of cross-border trade3.2.2Cross-border e-commerce platforms have changed commodity circulation and product supply chains.By 2035,50%of Chinas international trade by volume is projected to be via cross-border e-commerce.30 By cutting out intermediaries or agents,such platforms sho

163、rten transaction chains,optimize processes and reduce costs.At the same time,they rapidly transmit the output and demand of sustainable soft commodities,while verifying the sustainable certification through blockchain technology,thereby creating an efficient and accurate closed-loop green trade.The

164、potential of cross-border online tradeCASE STUDY:Over the last two decades,A has grown to be a leader in global digital trade.It reconstructs all the linkages in cross-border trade with digital technology,accurately aligning the business needs of cross-border buyers and sellers,and is speeding up th

165、e digital transformation of global trade.In 2022,there were over 245,000 paying members from China and around the world on A,and more than 40 million buyers from over 190 countries have sourced business or completed transactions on it.According to As 2020 Analysis Report of Agricultural Products and

166、 Food Industry,from January to May 2020,the 10 most inquired-about agricultural secondary categories included soft commodities such as edible oils,livestock products,feed and beans,projecting a bright prospect for cross-border e-commerce of soft commodities.31Launched in 2016,Alibabas multistakehold

167、er electronic World Trade Platform(eWTP)initiative works towards more convenient,innovative and inclusive global trade through digitalization and collaboration.eWTP shares experience,deploys advanced technology and consults on policy to facilitate global trade.It has launched 10 cooperative projects

168、 on four continents.These include promoting cross-border digital commerce,improving digital finance and digital logistics,building a digital“public service platform”to facilitate trade,and carrying out digital talent training and technology sharing.As the Alibaba example shows,online cross-border tr

169、ade has huge potential to promote sustainable,digital cross-border trade of soft commodities.32Ranking of the inquiry times of agricultural secondary categoris on A from January to May 2020Nuts and kernels17.49%Plants and animal oilAnimal productsGrainFresh vegetablesFresh fruitAgricultural equipmen

170、tPlant seeds and bulbsAnimal feedBeansOrnamental plantsTimber raw materialsOther agriculture productsCoffee beansAgricultural wasteMushrooms and trufflesVanilla beansHerbal cigars and cigarettesCacao beansSource:AGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 25Re

171、ducing imports through disruptive substitution3.3The growing global demand for meat,eggs and milk has accelerated the development of animal husbandry,whose demand for feed has spurred the demand for soybean.By increasing the domestic production of soybean in China,dependence on imports can be reduce

172、d.Since 2019,China has implemented a soybean rejuvenation plan to raise the yield and quality of the domestic soybean crop.Chinese soybean research institutions have made breakthroughs in breeding high-quality soybean varieties such that in 2020,the average yield per hectare of soybean in China was

173、48.8 kg,up 11%over 2016.33 This helps reduce deforestation for soybean plantations in critical ecosystems elsewhere,and also reduces the transport footprint of soybean-based feed.Scientific feed formula Around 80%of Chinas soybean imports are for livestock and poultry feed.In March 2021,the Ministry

174、 of Agriculture and Rural Affairs issued the Work Plan for Reducing and Substituting the Usage of Corn and Soybean Meal in the Feed Production,whose implementation is expected to reduce soybean meal demand/consumption by 12 million tons every year.34Plant-based meat Plant-based protein can help meet

175、 the rising global demand for protein.According to one survey,42%of Chinese respondents said they wanted foods that are better for the environment,and more than 50%said they were interested in trying novel plant-based protein products.35 The Boston Consulting Group expects alternative-protein revenu

176、es to reach$290 billion in 2035.36Finance4GETTY/HAO ZHANGGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 26Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 27In many cases,soft commodity production requires pre-financing to develop

177、 land for plantation.Therefore,setting up standards to reduce and revert harmful financial incentives for deforestation is important.Besides,establishing a risk evaluation platform to systematically manage deforestation-related financial risks is also seen as measures financial institutions can take

178、 throughout their portfolio decision-making process.The sustainable management of land use changes and deforestation risks in a portfolio can actively contribute to global climate and biodiversity targets,creating new green investment opportunities in transitioning soft commodity supply chains towar

179、ds greener options.Risks from deforestation 4.1For soft commodity companies:Producers of soft commodities are directly dependent on forests and nature for their operation,asset value and business continuity.Other supply chain stakeholders such as traders,processors and sellers also face physical,reg

180、ulatory,legal,market and reputation risks from the direct and indirect impacts of their business activities on deforestation.These risks include the decline in output of soft commodities caused by deforestation-related climate change and ecological damage,government restrictions on deforestation and

181、 public interest litigation against deforestation.For financial institutions:Industries related to soft commodities such as agriculture and food are highly dependent on natural capital such as forests,which are critical for coping with climate change and conserving biodiversity.As a result,deforesta

182、tion has become closely linked to climate change and biodiversity,both of which are frontier risk-management areas of concern in the financial field.These“fat-tail risks”may produce negative impacts far greater than other risks.Financial institutions are therefore required to assess and manage more

183、carefully the deforestation risk in their investment or loan portfolios associated with soft commodities as well as their accompanying climate and biodiversity risks.According to a research report released by Forests&Finance,an alliance of American research groups and civil society organizations,the

184、 50 most significant financial institutions accounted for$128 billion in credit and underwriting from 2016-2020,and a further$28 billion in share and bond holdings as of April 2021.37 The finance came primarily from financial institutions from major commodity producing countries such as Brazil,Malay

185、sia,the United States and Indonesia,followed by those from consumers such as Japan and China.From January 2013 to April 2020,Chinese banks and investors provided over$22.5 billion for major companies producing and trading in commodities at high risk of driving deforestation.38 Chinese financial inst

186、itutions must improve their management and control of the credit and investment risks related to soft commodities.They must also evaluate their exposure to risks such as land use change and deforestation higher up in the supply chain and assess the corporate risk management measures taken.Further,th

187、ey must incorporate deforestation risk management in the process of granting loans,screening investment projects,carrying out due diligence,signing agreements,undertaking project monitoring and embarking on an exit strategy.The attention of financial institutions encourages soft commodity companies

188、to prioritize the risk from deforestation in their ESG considerations.Given the heightened scrutiny from investors,companies should prioritize deforestation risk management within their overall ESG risk management,strengthen the oversight of the board of directors on deforestation risk,and develop p

189、olicy mechanisms for deforestation risk management.They should also systematically identify the relationship between deforestation risk and important environmental and social issues such as climate change,biodiversity conservation and community development,in order to strengthen their management and

190、 information disclosure.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 28Governance Identify the deforestation risk management responsibilities of the board of directors or senior management.Clarify the communication and decision-making process for deforestation r

191、isk management at the board level and highlight deforestation risk in existing ESG reviews.Identify,manage and report deforestation risk to the board of directors.Incorporate the performance of deforestation risk management into the incentive mechanism for directors and senior managers.Strategy Carr

192、y out scenario analysis from the perspective of long-term development and investigate the impact of deforestation risk on corporate development strategy.Clarify the relationship between deforestation risk management and corporate strategies coping with climate change and biodiversity conservation.Pl

193、an and launch cooperation plans and projects for sustainable transition of soft commodity supply chains in key markets.Risk management Embed deforestation risk management in corporate risk management processes.Identify major risks of deforestation and opportunities for sustainable transition of soft

194、 commodities,and analyse the impact on financial indicators.Develop action plans for management of deforestation risk and sustainable transition opportunities.Objective setting Develop and explain the objectives and performance of deforestation risk management and sustainable transition opportunitie

195、s.Disclose key indicators and target achievement.Financial mechanisms for deforestation risk management 4.2A financial system for sustainable soft commodity supply chains would have four dimensions:clear criteria,transparency,incentive mechanisms and financial products.Clarify the criteria and rules

196、 for non-deforestation soft commodities4.2.1Clarifying the classification criteria for sustainable soft commodity supply chains is a prerequisite for guiding banks and investment institutions in financing sustainable soft commodity supply chains.China needs a set of classification criteria suitable

197、for its context and in line with international standards.Chinese financial regulators have achieved some results in creating green financial supply chains.For example,the 2021 Catalogue of Green Bond Endorsed Projects aims to support the trade of green agricultural commodities that possess sustainab

198、le certificates issued by the relevant international certification systems.39 Regulators should further specify the criteria for identifying and classifying sustainable projects,ensuring that these align with Chinas criteria for green credit,green bonds and green enterprise ratings,so that banks and

199、 investment institutions can identify which suppliers meet the sustainability standards such as non-deforestation.For example,alignment with the EU Taxonomy should be strengthened to promote consistency and comparability.40Meanwhile,the Guiding Opinions on Promoting the Investment and Financing in R

200、esponse to Climate Change include GHG emissions from agricultural activities in the scope of support.41 The Central Banks and Supervisors Network for Greening the Financial System(NGFS)jointly sponsored by the Peoples Bank of China and the central banks of seven countries is studying the relationshi

201、p between biodiversity and financial stability,and is expected to give specific advice,including how regulatory authorities and financial institutions can strengthen biodiversity conservation.42 All these have brought new opportunities for industries such as agriculture and food to garner financial

202、support for emissions reduction in their supply chains.Deforestation risk management solutions for soft commodity companiesTABLE 4.1:Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 29Establish a green financial incentive mechanism for soft commodities4.2.34.2.4For

203、sustainable transition projects to be attractive to investors,they must have an acceptable risk profile and profitability,which requires the government to establish green financial incentive mechanisms.These may include:A mechanism to reduce tariffs on the trade of agricultural products that meet gr

204、een standards and/or are deforestation-free,and to increase green quotas.A mechanism to lower the export credit insurance guarantee fee for soft commodities that meet green standards and are deforestation-free.A mechanism to increase commercial banks ability and enthusiasm to provide financial suppo

205、rt,for instance by cutting the refinancing rate for projects transitioning to deforestation-free soft commodity value chains.A mechanism to provide subsidies and loans at discounted interest rates.A mechanism to drive financial guarantee insurance for soft commodities,and to appropriately increase t

206、he governments share of related risks.Develop diversified green financial products for soft commoditiesTo ensure that adequate funds are available,it is necessary to develop diversified green financial products such as loans,bonds,equity investment and insurance,and innovate the financing models bas

207、ed on them.Sustainable development loans:Financial institutions should provide low-interest sustainable development loans for soft commodity companies.For instance,COFCO International has been issued a$2.3 billion sustainable development loan(see case study).Sustainable investment:From the perspecti

208、ve of diversifying investment risks,priority should be given to introducing hybrid financing,including development finance,sovereign funds,charitable funds,China-LAC Cooperation Fund and agricultural risk funds,to leverage a wider range of private investment.Sustainable development bonds:The governm

209、ent,financial institutions and companies should issue various bonds at home and abroad in accordance with the Catalogue of Green Bond Endorsed Projects(2021),the Green Industry Guiding Catalogue(2019),the Green Investment Principles for the Development of Belt and Road Initiative,etc.45 Sustainable

210、development insurance products:Deforestation risks and liability should be included in insurance assessment.Innovative insurance products for forest assets should be developed.For instance,Conservation International has incorporated the protection and carbon storage value of mangroves for coastal co

211、mmunities into insurance products.464.2.2Enhance transparency of all links in supply chainsGovernment bodies,regulators,financial institutions and soft commodity companies must work together to strengthen the transparency of commodity origins and the risks related to deforestation.While China has ma

212、de it compulsory for listed companies and bond issuers to disclose environmental information,the government and regulators should refine deforestation information disclosure requirements for soft commodity companies and incorporate such information in the green financial information system for unifi

213、ed supervision.Financial institutions should promote investment and loan policies for deforestation reduction and provide more financial products and tools that can drive companies to engage in a green transition.They must disclose the size of their loans and investments in sustainable soft commodit

214、y projects to enhance confidence in the transition and motivate companies.Companies should actively disclose details and data on the governance,strategy,risk management and other action taken and progress made towards curbing deforestation throughout their supply chains,in accordance with the recomm

215、ended framework of the Task Force on Climate-Related Financial Disclosures,43 and the relevant methods and tools of the Carbon Disclosure Project.44Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 30COFCO International,a unified platform for procurement,deployment,i

216、nvestment and development of the parent companys international agribusiness,owns transit bases in key grain export and inland logistics nodes around the globe,such as Santos in Brazil,Rosario in Argentina and St Louis in the United States.Sustainable development loansIt secured a$2.3 billion sustain

217、ability-linked loan from a consortium of 21 banks in 2019.COFCO made commitments to sustainable development,including a year-on-year improvement of environmental,social and corporate governance(ESG)performance assessed by Sustainalytics,a leading provider of ESG ratings,as well as to increase the tr

218、aceability of agri-commodities.COFCO also promised to reinvest the interest discount on the loan into sustainability work.This represents the largest-ever sustainability-linked loan for a commodity trader in the world.This landmark loan also signaled COFCO Internationals alignment of finance,busines

219、s operations and sustainability.Deepening sustainable supply chainsIn 2020,COFCO International signed a cooperation agreement with the International Finance Corporation for support in creating more traceable and sustainable soybean supply chains in Matopiba,a region in Brazils Cerrado biome.The proj

220、ect aimed to screen soybean farms in ecologically vulnerable regions to ensure compliance with key environmental and social criteria.It used farm geolocation,satellite imagery and other geographical information and official data to ensure that supplying farms were not located on ecological reserves

221、or embargoed areas,and were in compliance with the Amazon Soy Moratorium.47 The project also established land conversion profiles and assessed supplier compliance with the Cadastro Ambiental Rural,an environmental registry in Brazil for protecting the Amazon rainforest.48In 2020,357 supplying farms

222、were mapped and analyzed,covering nearly 428,000 ha.By December 2021,COFCO International had reached traceability and completed social and environmental screening of all its directly sourced soybean from current suppliers in the Matopiba region.In addition,COFCO International provides rural communit

223、ies with information on sustainable agricultural practices through a web portal,and helps farmers comply with sustainable soybean procurement policies.In 2021,the project held trainings for more than 1,000 farmers.These activities have enabled COFCO to fulfil key criteria for financing agreements wi

224、th sustainability-oriented financial institutions and meet its commitments to the Soft Commodity Forum,which brings together the six biggest agribusinesses for collective action on sustainable soybean supply chains.49COFCO Internationals partnership with financial institutions CASE STUDY:Consumption

225、5GETTY/D3SIGNGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 31Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 32Billions of consumers can team up with companies to promote the sustainable transition of consumption and production.

226、In 2015,the United Nations issued 17 Sustainable Development Goals,of which Goal 12,ensuring“responsible consumption and production”,clearly defines sustainable consumption and production as“increasing net welfare gains from economic activities by reducing resource use,degradation,and pollution alon

227、g the whole lifecycle,while increasing the quality of life”.50 It aims to meet peoples basic needs and yearning for a better life without exceeding the carrying capacity of the ecological environment by increasing peoples awareness and changing their consumption behaviour.Sustainable consumption on

228、the upswing5.1Over the past few years,people have become more alert to the need for sustainable consumption and production.Sustainable consumption has become an integral part of the green development strategy.A large number of global,regional,national and local policies,measures and practices to pro

229、mote sustainable consumption have come through.Europe is a forerunner in promoting sustainable consumption and has gained remarkable results.China,like other countries,is also promoting sustainable consumption through policies and practices.51 Consumer demand for deforestation-free products can put

230、pressure on companies.Eco-friendly,sustainable consumption is bringing new business opportunities and stimulating the internal motivation of companies to achieve zero deforestation.Sustainable consumption contributes directly to reducing deforestation5.1.15.1.2Around a third of all food produced in

231、the world,1.3 billion tons,is wasted every year.52 This costs the global economy$1 trillion per year as food rots in the dustbins of consumers and retailers or spoils due to improper transportation and harvesting.By reducing food wastage,the need for growing more food by clearing forests and bringin

232、g them under food production can be obviated.For example,Chinese consumers have used soybean as their main source of high-quality protein for thousands of years.The protein content in soybean is about 35-40%,equivalent to that of beef,but food made of soybean has a much lower carbon footprint than b

233、eef.53 According to a carbon footprint analysis across global food systems published in Science in 2018,tofu only produces 1.6 kg of carbon for every 100 grams of protein,and pure edible soybean even less,only 0.65 kg;beef produces about 25 kg.54 Therefore,soybean and related products such as soybea

234、n milk,tofu and dried bean curd,popular among Chinese people,are both nutritious and low-carbon.Eating more soybean or soybean products is a choice for a low-carbon life.Consumer demand can pressure companies to reduce carbon footprintAlthough much of the worlds deforestation goes towards production

235、,it ultimately serves consumer demand.As eco-friendly consumption catches on around the world,more consumers are willing to buy green and low-carbon products,which will drive soft commodity-related companies,especially producers,to make responsible purchases and reduce deforestation.The 2019 Survey

236、Report on the Status of General Publics Green Consumption in China said 83.34%of the respondents expressed support for green consumption behaviour,and 46.75%were“highly supportive”.Consumers are not only willing to buy high-quality green products but are also concerned about the impacts of productio

237、n methods on the environment.Hence,a constant increase in businesses willingness to procure,utilize and sell environment friendly,sustainable products.55 Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 33Synergies to release sustainable consumption 5.2With stricter

238、 regulation and enhanced consumer awareness of environmental protection in response to the intensifying ecological crises such as climate change and biodiversity loss,companies can integrate sustainability into their long-term development strategy and realize new competitive advantages.Not only woul

239、d sustainable business choices reduce deforestation and associated business risks,they would also improve brand value.In the digital information age,advanced technology is a key instrument for reducing carbon emissions.For instance,big data has unique value in helping mitigate and adapt to climate c

240、hange.Alipays Ant Forest,for example,allows users to plant a virtual tree on their phone by accumulating“green energy”through low-carbon behaviours such as green travel,paper and plastic reduction,and online work.As an incentive for each virtual tree,Ant Forest and public welfare partners plant a re

241、al tree in desert areas to motivate low-carbon environmental protection.In the four years to 2020,550 million users had planted more than 223 million trees.56 Similarly,businesses can promote healthy and environment friendly eating habits,using interactive applications to match carbon emissions redu

242、ction data to dining habits,helping people reduce waste,balance the intake of animal and plant protein,and actively participate in the responses to climate change.Conclusion and recommendations 6Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 34With capital as the

243、pull,technology as the driver,consumption as the thrust,policy guidance as the mechanism,and deforestation-free production as the aim,all stakeholders must unite to drive the green and low-carbon transition of companies in the soft commodity supply and demand ecosystem.Diagram of the ecology for gre

244、en and low-carbon transition of soft commodity industry chainFIGURE 6.1Trading companiesConsumptioncompaniesProductioncompaniesSustainable sourcingCapital promotion(sustainable finance)Technological renovation(sustainable innovation)Environmental mechanism(sustainable policy)Sustainable consumptionC

245、onsensus-based actions 6.16.2The upstream producing,midstream trading and downstream purchasing/consuming companies must all promote the thorough transformation of soft commodity supply chains by effecting their own transformation.A multitude of new business opportunities will arise in this process.

246、Conformism is unsustainable,for without change,the future of the soft commodity industry may be upended by businesses in other innovative fields.Global response Coping with climate change by reducing carbon emissions is an imperative that has forged a global consensus for action.Deforestation reduct

247、ion is completely consistent with the goal of tackling climate change and conserving biodiversity.The value of forest ecosystem services needs to be effectively evaluated,and forest protection technically linked to contributing to the goal of tackling climate change.Positive feedback and incentives

248、should be provided to soft commodity companies that make changes and contribute to the goal of zero deforestation through effective policies and market mechanisms so as to guide more companies to make practical changes.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forest

249、s 35The policy environment for Chinese companies 6.3Government guidance is a key motivation for Chinese companies,and policy and guidance can propel concrete action.Based on the pledge that China made together with 144 parties at Glasgow in 2021,an international cooperation mechanism needs to be est

250、ablished,in which China can play an active role through its South-South cooperation and Belt and Road initiatives.Besides,credit and investment guidelines and standards related to deforestation risks should be developed to help and encourage financial institutions.Companies are already making multip

251、le efforts and taking innovative approaches,and would benefit from incentives for research and development into technological solutions as well as technical assistance.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 36ContributorsWorld Economic ForumPengyu Li,China

252、 Specialist,Tropical Forest AllianceJingxin Xiao,Early Careers,Nature-Based SolutionsYuan Zhang,China Specialist,Tropical Forest AllianceChunquan Zhu,Head,China Nature InitiativesChina Sustainability TribuneDeng Mingwen,Vice-Editor-in-ChiefHu Wenjuan,Executive Director,Media CenterJia Li,Researcher,

253、GoldenbeeYang Shihui,Researcher,GoldenbeeYu Zhihong,Chief EditorZhu Lin,EditorAcknowledgementsThe project team would like to express gratitude to the funding partners:World Economic Forum Tropical Forest Alliance,German Federal Ministry for the Environment,Nature Conservation and Nuclear Safety(BMU)

254、and the Gordon and Betty Moore Foundation.We would also like to give special thanks to the Tropical Forest Alliance(TFA)China Steering Committee Members:Chen Ming,Deputy Chief Economist,Foreign Environmental Cooperation Center(FECO),Ministry of Ecology and Environment of ChinaChen Yong,Deputy Direct

255、or,Research Center for Economics and Trade in Forest Products,National Forestry and Grassland Administration of ChinaFang Li,Chief Representative,World Resources Institute(WRI),ChinaFan Shenggen,Chair Professor,China Agricultural UniversityGao Guan,Vice-President,China Meat AssociationGao Wen,Secret

256、ary-General,China National Vegetable Oils AssociationJiang Yekui,Chief Sustainability Officer,Syngenta ChinaLi Fei,Associate Director,China,Carbon Disclosure Project(CDP)Li Xiande,Professor,Director of Research,Office of International Agricultural Economics and Trade,Institute of Agricultural Econom

257、ics and Development,Chinese Academy of Agricultural SciencesLiu Denggao,Senior Agricultural Economist,China Soybean Industry AssociationJoyce Ma,Country Director,The Nature Conservancy(TNC),ChinaMa Jun,Chairman,Green Finance Committee,China Society for Finance and BankingPeng Wei,Head,Sustainability

258、,Grains and Oilseeds,Louis Dreyfus CompanyQiao Lu,Executive Secretary,Sustainable Development Council,Yili Group Sun Lili,Chairperson,Society of Entrepreneurs&Ecology(SEE)Wang Chunfeng,Executive Director-General,International Cooperation Center,National Forestry and Grassland Administration of China

259、Wang Yi,Vice-President,Institutes of Science and Development,Chinese Academy of SciencesYu Zhihong,Chief Editor,China Sustainability TribuneGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 37Zhang Jianping,Director-General,Center for Regional Economic Cooperation,Ch

260、inese Academy of International Trade and Economic Cooperation,Ministry of Commerce of the Peoples Republic of ChinaZhou Fei,Chief Programme Officer,World Wide Fund for Nature(WWF)ChinaThe Project team would like to thank all those who have contributed to the consultations,interviews and workshops fo

261、r this white paper:Justin Adams,Executive Director(20182022),Tropical Forest Alliance,World Economic ForumDanielle Carreira,Head of Finance Sector Engagement,Tropical Forest Alliance,World Economic ForumMarielle Chen,Assistant Corporate Affairs Manager,Louis Dreyfus CompanyChen Ying,Chief,Cereals an

262、d Oils Dept,China Chamber of Commerce of Import and Export of Foodstuffs,Native Produce and Animal By-products(CFNA)Kevin Chen Zhigang,Chair Professor,Zhejiang UniversityDimitri de Boer,Regional Director,Asia and Chief Representative,China,ClientEarthDong Bo,Deputy Director,Public Affairs,Corporate

263、Affairs Department,Yili Group Dong Xin,Senior Project Manager,Foreign Environmental Cooperation Center(FECO),Ministry of Ecology and Environment of ChinaFang Lifeng,Head,China,Roundtable on Sustainable Palm OilFeng Yuefeng,Public Relations Manager,Yili GroupAlexander Fisher,Director,Sino-German Coop

264、eration on Climate Change(SGCCC),Deutsche Gesellschaft fr Internationale Zusammenarbeit(GIZ)Fu Xiaotian,Programme Director,Food and Natural Resources,China,World Resources Institute Christoffer Grnstad,Counselor,Environmental Affairs,Norwegian Embassy in ChinaSusan Hu,Specialist,Nature Action Agenda

265、,World Economic ForumHu Ying,Deputy Secretary-General,China Meat AssociationHuang Qiyun,Communications Assistant,East and Central Asia Office,International Food Policy Research InstituteJack Hurd,Executive Director,Tropical Forest Alliance,Member of the Executive Committee,World Economic ForumRebecc

266、a Ivey,Head of Impact and Platforms,World Economic ForumJia Feng,Director,Centre for Environmental Education and Communications,Ministry of Ecology and Environment of ChinaJia Ru,Senior Manager,TNC ChinaJiang Boya,Nature and Climate Lawyer,ClientEarth ChinaJin Zhonghao,Head,Markets Practice,WWF Chin

267、aLei Wenzhong,CEO,Julong Group IndonesiaLi Shaoxin,China Agriculture Transitions Lead,Climate Bonds InitiativeLi Yonghong,Deputy Director-General,Ministry of Ecology and Environment of ChinaLiu Rui,Researcher,Institute of Food and Nutrition Development,Ministry of Agriculture and Rural Affairs of th

268、e Peoples Republic of ChinaLiu Ting,Deputy Head;Director,Global Value Chains Research Institute,Foreign Environmental Cooperation Center(FECO),Ministry of Ecology and Environment of ChinaLiu Yuan,Division Head,Foreign Environmental Cooperation Center(FECO),Ministry of Ecology and Environment of Chin

269、aMao Huayun,Sustainability Lead,New Hope GroupTess Isabel Nepstad,Founder and Chief Strategist,Terra Bella Consulting Firm Sebastien Paquot,Counsellor Climate and Environment,Delegation of the European Union to ChinaQu Pengcheng,Head of the Geopolitical and Regional Agenda,World Economic ForumRong L

270、inyun,Division Chief,International Cooperation Center,National Forestry and Grassland Administration of ChinaSteven Shi,Director,Government Affairs,Cargill ChinaPetra Tanos,Head,Strategic Partnerships,Tropical Forest Alliance,World Economic ForumGoing Above and Beyond:Chinas Opportunities in the Sha

271、red Future of Global Forests 38Ronnie Tham,Senior Director,Global Sourcing,WalmartTong Xiaolei,Policy Officer,Environment,Maritime Affairs and Fisheries,Delegation of the European Union to ChinaViki Xue,Public Policy and Sustainability Manager,Bunge Wan Jian,Research Associate,Food and Natural Resou

272、rces Program,China,World Resources Institute Diana Wang,China Sustainability Manager,Consumer Goods Forum Wei Lihua,President,JunlebaoWen Bo,China Adviser,Rainforest Foundation NorwayJoshua Wickerham,Engagement Manager,ISEAL AllianceWu Chenbo,Manager,U.S.Soybean Export AssociationXia Dongmei,Program

273、me Officer,British Embassy in ChinaXu Jin,China Head,Global Zero Deforestation,TNC ChinaYan Jing,Manager,Louis Dreyfus ChinaYin Ling,Deputy Chief Representative,U.S.Soybean Export CouncilYu Le,Associate Professor,Department of Earth System Science,Tsinghua UniversityYu Xin,Director,Sustainable Food

274、Consumption and Supply Chain,WWF ChinaZhai Guiying,Deputy Director-General,Foreign Environmental Cooperation Center(FECO),Ministry of Ecology and Environment of ChinaZhai Yuezhu,Senior Project Officer,Carbon Disclosure Project(CDP)Zhang Junzuo,Director,China-UK Collaboration in International Forestr

275、y Investment and Trade Programme(InFIT)Zhang Ruibo,Deputy Secretary-General,SEE FoundationZhang Xinxin,Regional Director,East Asia,Preferred by Nature in ChinaZhang Xu,Center for Regional Economic Cooperation,Chinese Academy of International Trade and Economic Cooperation,Ministry of Commerce of the

276、 Peoples Republic of ChinaZhu Mingxing,Strategy Director,JunlebaoZou Dan,Manager,Sustainability Programme,U.S.Soybean Export CouncilGoing Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 39Endnotes1 World Economic Forum,“Net-Zero Challenge:The supply chain opportunity”,ht

277、tps:/www3.weforum.org/docs/WEF_Net_Zero_Challenge_The_Supply_Chain_Opportunity_2021.pdf.2 IPCC Special Report 2021,“Special Report on Climate Change and Land”,https:/www.ipcc.ch/srccl/chapter/summary-for-policymakers/.3 University of Leeds,“Tropical forests carbon sink is already rapidly weakening”,

278、https:/ G.Kissinger,M.Herold and V.De Sy,“Drivers of Deforestation and Forest Degradation:A Synthesis Report for REDD+Policymakers”,https:/www.forestcarbonpartnership.org/sites/fcp/files/DriversOfDeforestation.pdf_N_S.pdf;C.V.Barber,B.Li,X.Fu,“China Can Save Forests While Strengthening Its Economic

279、Resilience”,https:/www.wri.org/insights/china-can-save-forests-while-strengthening-its-economic-resilience.5 IPCC,“Climate Change 2021:The Physical Science Basis.Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change”.Geneva:IPCC,2021.6 World

280、Trade Report 2021,“Economic resilience and trade”,https:/www.wto.org/english/res_e/publications_e/wtr21_e.htm.7 Ibid.8 J.Robalino and L.D.Herrera,“Trade and Deforestation:What have we found?”,https:/www.wto.org/english/res_e/publications_e/wtr10_robalino_herrera_e.htm.9 F.Pendrill,U.M.Persson,J.Goda

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282、Vol.361,Issue 6407,pp.1108-1111,https:/www.wri.org/insights/china-can-save-forests-while-strengthening-its-economic-resilience;S.Lawson,“Consumer Goods and deforestation:An analysis of the extent and nature of illegality in forest conversion for agriculture and timber plantations”,Washington D.C.For

283、est Trends,2014,https:/science.sciencemag.org/content/361/6407/1108.11 S.Murphy,D.Burch and J.Clapp,“Cereal secrets:The worlds largest grain traders and global agriculture”.Oxfam International:UK,2012,pp.38-39.12 SBTi,SBTi Corporate Manual,https:/sciencebasedtargets.org/resources/files/Legacy-Corpor

284、ate-Manual-v1.1.pdf.13 FAO,“Global Forest Resources Assessment 2020:Main report”,https:/doi.org/10.4060/ca9825en14 N.Escobar,E.Tizado,E.Ermgassen,P.Lfgren,J.Brner,J.Godarf,“Spatially-explicit footprints of agricultural commodities:Mapping carbon emissions embodied in Brazils soy exports”,Global Envi

285、ronmental Change,2020,Vol.62,https:/ Li Guangsi and Han Dong.“Competitive Structure,Market Power and Pricing Right of Food Market-Analysis of International Soybean Market”,Journal of International Trade,2020,Vol.9,pp.33-49.16 Chain Reaction Research,Deforestation-Driven Reputation Risk Could Become

286、Material for FMCGs,https:/ WWF,“Specifications for Meat Industry Green Trade”,https:/www.worldwildlife.org/blogs/sustainability-works/posts/how-argentina-could-emerge-as-a-leader-in-mainstreaming-beef-free-from-deforestation;https:/www.worldwildlife.org/blogs/sustainability-works/posts/how-argentina

287、-could-emerge-as-a-leader-in-mainstreaming-beef-free-from-deforestation.18 Why the Agricultural Sector Roadmap to 1.5C is encouraging,https:/www.weforum.org/agenda/2022/11/what-does-a-1-5-c-pathway-look-like-for-agricultural-commodity-companies/;Ten top global agricultural commodity copmpanies pledg

288、ed to halt forest loss associated with ag commodity production and trade at UNFCCC COP26 in 2021,https:/ukcop26.org/agricultural-commodity-companies-corporate-statement-of-purpose/;CGF Forest positive commitment,https:/ The SBTis target dashboard,https:/sciencebasedtargets.org/companies-taking-actio

289、n#table 20 CCICED,Global Green Value Chains Greening Chinas“Soft Commodity”Value Chains,https:/cciced.eco/wp-content/uploads/2020/09/SPS-4-2-Global-Green-Value-Chains-1.pdf.21 Bernando B.N.Strassburg,et al.,2014,“When enough should be enough:Improving the use of current agricultural lands could meet

290、 production demands and spare natural habitats in Brazil”,Global Environmental Change,Vol.28,pp.84-97,https:/ FAO,Global Perspective Studies Team,“World Agriculture Towards 2030/2050”,https:/www.fao.org/3/ap106e/ap106e.pdf.23 Digital technology comes into bloom to help harvest the taste of childhood

291、”,China Food News,https:/ Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 4024 Liu Hui,Plant protection drones have become the stars of the farm,helping farmers apply pesticides accurately,The Economic Daily,http:/ FAO,“The future of food and agriculture:Alternative path

292、ways to 2050”,2018,http:/www.fao.org/3/I8429EN/i8429en.pdf.26 Ibid.27 Ministry of Industry and Information Technology and Office of the Central Cyberspace Affairs Commission of China,“Guidance on Accelerating the Application and Industrial Development of Blockchain Technology”,http:/ MAP 2021 Green

293、Development Report,https:/ Reuters staff,“US soy cargo to China traded using blockchain”,Reuters,https:/ China Center for International Economic Exchanges,Trend Report:Cross-border Trade in Digital Era,March 2021.31 A,2020 Analysis Report of Agricultural Products and Food Industry,https:/ Alibaba,20

294、22 ESG Report,https:/ Ma Aiping,“To decipher the code of breeding and help increase soybean production”,China Science and Technology Daily,http:/ Liu Yiming,“Promoting Diversification of Feed Formula to Ensure Effective Supply of Feed Grain”,https:/ Lucia Wei He and He Mu,“Can Meat Substitutes Reduc

295、e Chinas Environmental Footprint in Latin America”,China Dialogue,https:/ B.Witte,P.Obloj,S.Koktenturk,B.Morach,M.Brigl,J.Rogg,U.Schulze,D.Walker,E.Von Koeller,N.Dehnert and F.Grosse-Holz,“Food for Thought:The Protein Transformation”,2021,https:/web- Forests&Finance,“Finances role in deforestation”,

296、https:/forestsandfinance.org/wp-content/uploads/2021/06/F_F_Briefing_2021_ENG.pdf.38 Global Witness,“Under the spotlight:Chinese banks risky agribusiness portfolio”,https:/www.globalwitness.org/en/campaigns/forests/under-spotlight-chinese-banks-risky-agribusiness-portfolio/.39 Peoples Bank of China(

297、PBOC),National Development and Reform Commission(NDRC),China Securities Regulatory Commission(CSRC),“Notice on Issuing the Green Bond Endorsed Projects Catalogue(2021 Edition)”,https:/ European Commission,EU taxonomy for sustainable activities,https:/finance.ec.europa.eu/sustainable-finance/tools-an

298、d-standards/eu-taxonomy-sustainable-activities_en.41 Ministry of Ecology and Environment,2020,“Guiding Opinions of the Ministry of Ecology and Environment,the National Development and Reform Commission,the Peoples Bank of China and Other Departments on Promoting the Investment and Financing in Respo

299、nse to Climate Change”,http:/ NGFS,“Interim report of the joint Study Group on Biodiversity and Financial Stability launched by NGFS and INSPIRE”,https:/ TCFD Knowledge Hub,2020,“Investor Guide to Deforestation and Climate Change”,https:/www.tcfdhub.org/resource/investor-guide-to-deforestation-and-c

300、limate-change/.44 CDP,“Our forests work”,https:/ Peoples Bank of China,National Development and Reform Commission,China Securities Regulatory Commission,“Notice on Issuing the Green Bond Endorsed Projects Catalogue(2021 Edition)”,https:/ Green Industry Guiding Catalogue”,https:/sesec.eu/Archive/2019

301、/others/2019-green-industry-guiding-catalogue/;“The Green Investment Principle for the Belt and Road Initiative”,https:/greenfdc.org/green-investment-principle-gip-belt-and-road-initiative/.46 Global Innovation Lab for Climate Finance,2019,“Restoration Insurance Service Company(RISCO)”,https:/www.cl

302、imatefinancelab.org/project/coastal-risk-reduction.47 H.K.Gibbs et al.,“Brazils soy moratorium”,Science,Vol.347,No.6220,pp.377-378,https:/www.science.org/doi/10.1126/science.aaa0181.48 CAR,https:/ COFCO International,“Sustainability Report 2020”,https:/ partnership traces and screens all direct soy

303、supplies in Brazils Matopiba”,https:/ study collection:Private sector companies engaging beyond their own value chains”,https:/www.undp.org/sites/g/files/zskgke326/files/2022-08/GGP-casestudies-FA.pdf.Going Above and Beyond:Chinas Opportunities in the Shared Future of Global Forests 4150 United Nati

304、ons,“Sustainable Development Goals:17 Goals to Transform our World”,https:/www.un.org/en/exhibits/page/sdgs-17-goals-transform-world.51 L.Xia,P.Ning and Z.Ye,“International Practice and Policy Implications of Sustainable Consumption”,China Population,Resources and Environment,2014,Vol.5,pp.46-50.52

305、FAO,“Global Food Losses and Food Waste”,https:/www.fao.org/3/mb060e/mb060e.pdf.53 J.Poore and T.Nemecek,“Reducing foods environmental impacts through producers and consumers”,2018,https:/ora.ox.ac.uk/objects/uuid:b0b53649-5e93-4415-bf07-6b0b1227172f/download_file?file_format=pdf&safe_filename=Reduci

306、ng_foods_environment_impacts_Science+360+6392+987+-+Accepted+Manuscript.pdf&type_of_work=Journal+article.54 Hannah Ritchie,“Less meat is nearly always better than sustainable meat,to reduce your carbon footprint”,https:/ourworldindata.org/less-meat-or-sustainable-meat.55 China Council for Internatio

307、nal Cooperation on Environment and Development,Green Transformation and Sustainable Social Governance,2020,http:/ Alibaba Group,2020-2021 Alibaba Group Social Responsibility Report,https:/ Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.