 Sustainability continues to be a driving force in shaping international trade regulations. At the UN Climate Change Conference (COP 30) held in November 2025, foreign countries discussed how trade tools can advance their climate goals such as using trade measures that would encourage deforestation-free supply chains, lower carbon emissions, and eliminating unnecessary packaging waste [1]. Several major trading partners, including the European Union (EU) and Canada, continue to incorporate climate‑related initiatives into their trade regulations. Below are sustainability efforts underway that showcase how climate goals are being accommodated in trade policy and how U.S. exporters should prepare: EU & UK: Traceability and Carbon Adjustment Requirements The EU is leading the way in climate-friendly initiatives, tackling both traceability reporting requirements and efforts to reduce carbon emissions. This year, the EU adopted the European Deforestation Regulation (EUDR) to cut emissions and biodiversity loss by promoting “deforestation‑free” products and reducing its global deforestation footprint. By 2027, any company importing at-risk agricultural products such as cocoa, soy, and palm oil into the EU will need to prove that these exports do not originate from recently deforested land or have contributed to forest degradation [2]. U.S. exporters sourcing these ingredients for products to then be exported to the EU may be asked to disclose information to their importer to ensure compliance. In addition, the EU launched their Carbon Border Adjustment Mechanism (CBAM) initiative in January 2026. CBAM implements a carbon levy on certain goods imported into the EU (i.e., fertilizers, steel, aluminum, iron, cement, electricity, and hydrogen) [3]. In addition, EU importers must gather and report information on both the direct emissions produced during the manufacturing of processed goods and the indirect emissions resulting from the electricity used in that process. U.S. exporters of the goods may need to be prepared to track and report on their direct and indirect emissions and disclose this information to their importer. The United Kingdom (UK) is also following suit with similar measures. In 2019, the UK introduced guidance to support businesses in meeting the requirements of its Streamlined Energy and Carbon Reporting (SECR) framework. Under these rules, any UK company listed on the London Stock Exchange, an EU-regulated market, or trading shares on the New York Stock Exchange or NASDAQ must disclose their scope 1 (direct emissions), scope 2 (indirect emissions from energy), and scope 3 (value chain emissions) emissions, along with the methodologies used to calculate them [4]. These reporting requirements may extend to U.S. exporters working with UK companies. Canada: Reducing plastic pollution and promoting the circular economy Policies encouraging efforts to continually redesign, reduce, reuse, repair, refurbish, remanufacture, repurpose, or recycle products to minimize waste are becoming more common [5]. These policies intend to promote a more circular economy by reducing plastic pollution. For example, Canada started implementing their new plastics policy in 2025, which requires companies to report annually on the quantities and types of plastics they manufacture, import, or place on the Canadian market. Once fully rolled out, Canadian companies will need to disclose the amount of plastic waste generated at their industrial, commercial, and institutional facilities. As a result, U.S. exporters should be prepared to disclose information to importers and manufacturers on the types of plastics that were used when manufacturing goods [6]. China & Brazil: Suggested Corporate Sustainability Standards In 2024, China published its Basic Guidelines for Corporate Sustainability Disclosure Standards (CSDS) with a goal to align Chinese companies with global environmental, social, and governance (ESG) expectations. This guidance marks a major step towards establishing a national sustainability disclosure system by 2030 [7]. China’s CSDS framework is designed to align with the International Sustainability Standards Board (ISSB), strengthening consistency and enhancing cross‑border comparability in sustainability reporting by issuing general standards for sustainability and climate-related disclosures [8]. By taking this step, China is helping their importers meet sustainability standards in export markets. Brazil followed a similar approach to China by adopting ISSB’s inaugural sustainability standards for voluntary reporting for all companies starting in 2026 [9]. With these standards in place, Brazilian companies now have clearer disclosure requirements that help them convey to investors the sustainability‑related risks and opportunities they face. U.S. companies working with Chinese and Brazilian companies may be asked to adhere to ISSB standards. United States: Sustainable Packaging Innovation Lab The United States sustainability initiatives remain fluid, reflecting shifting priorities throughout different Administrations. However, the United States recognizes that certain sustainability measures abroad could impose additional burdens on U.S. exporters and that businesses need assistance in transitioning to more sustainable practices. For example, several countries have adopted packaging and packaging waste regulations which ban the use of certain materials, set reuse and refill targets, and establish extended producer responsibility. Such regulations can increase costs and limit market access for U.S. exporters as they are expected to comply. One initiative designed to help U.S. exporters meet these requirements and better compete in overseas markets is US Department of Agriculture (USDA)’s grant as part of the Assisting Specialty Crop Exports (ASCE) Initiative to support the Sustainable Packaging Innovation Lab [10]. This initiative awarded multiple grants for research projects including innovative packaging solutions and technologies such as compostable plant-based thin film and bags, fully recyclable cellulose-based packaging, edible thin-film coating for cucumbers and bell peppers, and more [11]. The work of the Sustainable Packaging Innovation Lab demonstrates the US government’s awareness of potential sustainability-related barriers that may affect agricultural exports to foreign markets. Future Outlook These are only some of the various ways a handful of countries have pursued integration of climate-related measures into trade and business policies. However, more than 50 export markets have implemented measures designed to promote recyclability, lower carbon emissions, and reduce plastic waste. As more countries introduce climate-focused regulations, exporters must ensure they understand the relevant requirements and how to adapt to a greener, climate-friendly trade environment. [1] COP 30: Key issues on trade and climate agenda, IISD (4 Nov 2025) [2] Regulation on Deforestation-free Products, European Commission [3] Carbon Border Adjustment Mechanism, European Commission [4] Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements, UK Government (29 Mar 2019) [5] Circular Economy, Government of Canada (23 Mar 2025) [6] Federal Plastics Registry, Government of Canada (13 Mar 2026) [7] Corporate Sustainability Disclose Standards, China’s Ministry of Finance (17 Dec 2024) [8] China embarks on a journey of ESG disclosure: 2024 progress and focus for 2025, UN Environment Program (7 Jan 2025) [9] Brazil adopts ISSB global baseline, as IFRS Foundation Trustees meet in Latin America, IFRS (20 Oct 2023) [10] Sustainable Packaging Innovation Lab, USDA [11] Research funding awarded for packaging innovations to support American Fresh Produce Exporters, USDA FAS (29 July 2025) Comments are closed.
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