Introduction

Agricultural and forestry commodity production remains a leading driver of tropical deforestation and associated greenhouse gas emissions. Two independent approaches have emerged to address this challenge: Jurisdictional REDD+ (JREDD+) programmes, which are government-led initiatives to protect forest carbon at scale, and corporate supply chain sustainability policies, which involve company-level management of environmental and social risks. Despite sharing goals, these approaches have historically developed in parallel. This paper explores how tighter integration between these strategies could drive more effective conservation outcomes.

Introduction to JREDD+

JREDD+ is a framework designed to reward emissions reductions and forest carbon enhancement at the scale of a country, state, or province. It generates carbon credits that can be monetised through carbon markets or results-based payment programmes. Key standards include ART TREES and Verra’s Jurisdictional and Nested REDD+ (JNR). Early efforts were supported by donors, with the World Bank Forest Carbon Partnership Facility (FCPF) channelling over $1.3 billion across 47 countries.

In 2022, Guyana became the first jurisdiction to be issued credits under ART’s TREES standard. Currently, 27 jurisdictional programmes are listed in the ART pipeline and six within Verra’s JNR framework, representing nearly 25% of the world’s tropical forests. ART has issued more than 60 million JREDD+ credits, and the pipeline supply is projected to reach up to 300 million credits per year by 2030. Jurisdictional carbon credits currently account for approximately 5-7% of annual sales on the voluntary carbon market.

Company priorities for sustainable sourcing

Consultations with agricultural and forestry companies identified three core priorities: achieving deforestation- and conversion-free (DCF) sourcing, meeting climate targets (including Scope 3 and FLAG goals), and ensuring long-term supply chain resilience. JREDD+ programmes can support these goals by reducing the risk of non-compliance with regulations like the EU Deforestation Regulation (EUDR) and lowering emissions footprints. For companies using jurisdictional land use change (jdLUC) or statistical land use change (sLUC) accounting methods, verified decreases in deforestation will directly reduce Scope 3 inventories.

Three ways supply chain companies can invest or engage in JREDD+

Companies can engage with JREDD+ through three primary pathways:

• Purchasing JREDD+ credits: Companies like Walmart, Nestlé, and Unilever participate in the LEAF Coalition and have signed forward purchase agreements. Credits may be used to neutralise residual emissions or address ongoing emissions responsibility under the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard (CNZS).
• Investing in JREDD+ readiness: Supply chain companies have supported the establishment of programmes in Ghana and Mato Grosso, Brazil. In Ghana, the Cocoa and Forests Initiative mobilised companies like Mondelez and Touton to support national JREDD+ architecture through Hotspot Intervention Areas.
• Conducting aligned interventions: Implementing projects within supply chains, such as producer training or mapping, that complement jurisdictional goals. In Mato Grosso, the Produce, Conserve and Include (PCI) Institute explicitly links jurisdictional targets to corporate sourcing commitments.

Recommendations: improving synergies between sustainable supply chains and JREDD+

The report provides six key recommendations to improve interoperability:

1. Increase recognition of jurisdictional performance in DCF frameworks: Refine frameworks to reward jurisdictional progress as a component of due diligence or a pathway towards DCF status.
2. Increase recognition of landscape action in climate frameworks: Improve the effectiveness of jdLUC and sLUC accounting to capture real deforestation reductions in sourcing areas.
3. Reconcile carbon claims: Develop processes for nesting or reconciling carbon removals within supply chains to avoid double counting with jurisdictional credits.
4. Create shared MRV systems: Jurisdictions should publish verified forest cover data that companies can use for their own monitoring and reporting.
5. Incentivise participation in readiness: Jurisdictions could offer preferential access to future credits for companies that provide upfront financing or technical support.
6. Consider FLAG revision implications: The SBTi should clarify how the purchase of JREDD+ credits might contribute to activity-pool or sector-level mitigation.

Conclusions

While JREDD+ and supply chain policies have evolved separately, significant opportunities exist to strengthen their synergies. Strengthening interoperability can unlock private sector investment and lead to more successful forest conservation. Strategic co-development between supply chain initiatives and JREDD+ programmes can yield dividends for durable forest protection and the resilience of global supply chains.