The Amazon rainforest is under threat and consequently so is the world's climate balance. Global deforestation reached 6.6 million hectares in 2022, with primary tropical forest loss at 4.1 million hectares. These losses occurred despite governments from over 130 countries having signed a pledge at COP26 in Glasgow in 2021 to halt and reverse deforestation around the world by 2030.
Companies increasingly recognize that deforestation in supply chains represents material physical, reputational, and financial risks. More than 250 companies reporting tosuggests the financial risk of deforestation in supply chains in the United States could be as high as $115 billion.Ranked The 20 Happiest Countries In The World In 2024 According To A New Reportsuch as food and fuel that support the livelihoods of billions of people.
Despite all the words that have been spoken about the importance of forests, the 4% increase in deforestation worldwide compared to the previous 12 months, as revealed by the annualReversing this trend requires a dual-pronged strategy: providing financial support and technical assistance to tropical forest countries grappling with deforestation and implementing demand-side measures to restrict the entry of deforestation-linked products into the market.
The bill now also includes provisions that will encourage a more targeted enforcement approach, mitigating concerns about disruptive measures that blunt-instruments could have on supply chains and minimising unintended adverse impacts on sourcing regions.
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