STAR4BBS White Paper whose impact of sustainability certification on trade

In Germany, sustainability requirements have become a decisive factor in shaping global trade, influencing competitiveness, transparency and responsible economic growth. While companies and policymakers increasingly rely on sustainability certification schemes and labels (CSLs) to demonstrate responsible sourcing, their actual effects on market access are complex. The STAR4BBS White Paper sheds new light on these dynamics, revealing when certification enables trade and when it restricts it.

The White Paper is based on a systematic review of 563 publications, of which 21 quantitative studies met the criteria for detailed assessment. This robust evidence base shows that CSLs influence trade performance through a combination of institutional, economic and supply-chain factors. Crucially, certification schemes are neither inherently trade enhancing nor trade restricting; their impact depends on the context in which they operate.

The analysis also highlights significant disparities in the availability of information on the certification of major biogenic feedstocks imported into the EU. While the certification of commodities such as palm oil and cotton is relatively well documented, the certification of others, including maize, wheat and sugar beet, remains largely unknown. This heterogeneity complicates trade monitoring and reduces transparency in global value chains.

The STAR4BBS White Paper shows that sustainability certification can both support and hinder trade, depending on the institutional and economic context. Certification enables market access when it reduces information asymmetries, signals product reliability and improves quality and process efficiency. These positive effects are strongest where strong governance systems and technical support structures assist producers in meeting requirements. At the same time, certification can restrict trade when compliance costs exceed potential benefits, when overlapping or inconsistent standards create administrative burdens or when smallholders and SMEs lack the resources needed for certification. In some sectors, certification has become a de facto prerequisite for market entry without offering additional competitive advantage.

A key finding across the literature is the unequal distribution of costs and benefits along global value chains. Downstream actors, including traders, processors and retailers, often capture most of the economic gains, while producers carry the majority of compliance-related burdens. Smallholders and SMEs are particularly affected, facing financial and administrative constraints that can limit their participation and undermine inclusiveness. To address these challenges, the White Paper recommends strengthening governance and harmonisation, providing financial and organisational support for smallholders and SMEs, promoting shared responsibility and fairer cost distribution, and improving data availability and interoperability to enable evidence-based policymaking. These measures are essential to ensure that certification functions as an instrument of inclusion, supporting competitive and sustainable trade.