Australia Sustainability: Addressing Deforestation In Australia

Research evidence excerpt

Australia Sustainability: Addressing Deforestation In Australia

es proceed. However, the jarvis.lam@ubs.com

stronger penalty framework under the EPBC Act, now aligned to the Corporations +852-2971 7701

Act, materially increases the potential consequences of non-compliance. See our

previous research on the reforms: EPBC Reforms - from Bottleneck to Blueprint. Thi

Market risk: Australia’s beef sector faces growing market-access risk due to its s is an

reliance on export markets. Around 30% of Australian beef production is consumed domestically, while more than 70% is exported, generating A$18.7 ImageM

billion in export revenue in 2025 (Figure 4Befexports(ktpa)). Although direct exposure to the EU

market is limited, the EUDR reflects a broader shift towards deforestation-free

supply chains. This is reinforced by corporate commitments, with 39% of the

world’s largest beef-buying companies having adopted deforestation-free targets.

In addition, countries representing around 90% of Australian beef imports are

signatories to the Glasgow Leaders’ Declaration, which commits them to halt and

reverse forest loss and land degradation by 2030. Together, these developments

increase the risk that deforestation performance becomes a condition of market

access for Australian beef.

Reputational risk: For corporates that have set no-deforestation targets, the

current persisting technical challenges relating to traceability, increases the risk of

these targets not being met, which may impact stakeholder expectations.

Physical risk & Uninsurability: In addition to biodiversity loss and reduction of

nature as a carbon sink, land clearing increases exposure to drought and flooding,

with new Australian research finding that cleared land is 700% more likely to