This publication describes several examples of policy instruments that improve the sustainability of value chains. For private organizations it looks into the possibility of combining the use of policy instruments and sustainability certification to manage value chain sustainability. The main part of this publication discusses the potential of co-regulation (combination of public policy instruments with private control mechanisms such as sustainability certification) for global value chains such as food, forestry and bioenergy. The case of co-regulation for sustainability of biofuels consumed in the European Union is assessed in detail.