Last week at the Paris Climate Change Conference, two of the world’s leading multinational consumer goods companies unveiled an important new supply-chain program aimed at protecting the world’s forests and combating climate change. Marks & Spencer and Unilever announced that they will prioritize sourcing from suppliers that are specifically trying to protect forests and reduce greenhouse gas emissions.

Why does this matter? Many people don’t know that deforestation, agricultural practices, and other land uses contribute nearly one quarter of global greenhouse gas emissions. The largest driver of deforestation is clearing for agriculture.

hairs of the Consumer Goods Forum Sustainability Working Group, will now direct purchases of agricultural commodities to the same places that are trying to reduce deforestation could set a new industry standard, and help stem the destruction of our forests.

These companies, like many others, had previously pledged to eliminate deforestation from their supply chains and were taking important steps. For instance, they had pursued measures like certifying farms, training smallholder farmers, and mapping their supply chains.

But now, in announcing this new initiative, these companies have taken a major step forward to expand upon their prior commitments. This effort send a strong signal that reducing greenhouse gas emissions by preserving forests can be a competitive advantage.

In addition, governments in developing countries, the United States and elsewhere, have been working to put in place what are known as “jurisdictional” programs. These are national or subnational programs designed to reduce emissions from forests (known as REDD+ for Reducing Emissions from Deforestation and forest Degradation) and other landscapes. The United States has shown leadership on several of these jurisdictional initiatives including the Forest Carbon Partnership Facility, BioCarbon Fund Initiative for Sustainable Forest Landscapes.

In order for jurisdictions to qualify for preferential sourcing from Marks & Spencer and Unilever they must comply with specific criteria. These include:

· A strategy that reduces emissions from forests and other lands, increases agricultural productivity, and improves workers’ livelihoods;

· A system for measuring and monitoring greenhouse gas emissions reductions caused by deforestation;

· A commitment to adhere to social and environmental safeguards, and a monitoring system that measures success in achieving these goals;

· High-level political commitments to support the program’s objectives;

· Stakeholder engagement in the development and implementation; and

· Finally, eligibility will be restricted to countries that have ambitious Intended Nationally Determined Contribution (INDC) target.

Additionally, this initiative encourages robust consultation among stakeholders along with a system to monitor environmental safeguards. This approach not only helps conserves forests, but also supports a full range of benefits that come with better land use.

I’m optimistic this type of initiative can be successful and economically viable. I’ve seen firsthand how healthy forests can coexist with the interests of rural communities and agricultural producers.

Earlier this fall, I visited the Peruvian Amazon. There, I saw innovators at all levels of society, from indigenous peoples and rural communities to the highest government officials, implementing programs that safeguarded forests, reduced emissions, and created economic opportunities.

Now, we have another approach. One that can reward governments, farmers, and other stakeholders who have shown leadership in reducing emissions from deforestation and other harmful land use practices.

In the coming months and years, jurisdictions will have to demonstrate they can meet the eligibility criteria set forth under the companies’ new sourcing policies. And companies will need to further define how supply chains will incorporate this approach.

Still, this plan and its announcement is an important step in the right direction. It is a public-private climate partnership at its best — demonstrating that climate action can deliver benefits for the economy as well as for the environment. This is exactly the sort of economically sustainable initiative that we need to meet our climate goals.