Baroness Sheehan
To ask His Majesty’s Government what steps they are taking to implement due diligence requirements for forest-risk commodities.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)
My Lords, the UK strongly supports global efforts to protect forests and remains steadfast in working with partners to deliver the shared commitment to halt and reverse deforestation and forest degradation by 2030. The Government are currently considering their approach to addressing the deforestation impact of the use of forest-risk commodities in our supply chains, and we will update the House at the earliest opportunity.
Baroness Sheehan (LD)
My Lords, the national security assessment, which the Government still refuse to publish in full, has been leaked in full to ITV News. It states that nature loss, including deforestation, is already slowing UK growth and productivity and could leave annual GDP 12% lower by 2030 than it would otherwise have been, making a mockery of the Government’s growth agenda. Will the Minister confirm these figures? When will the Government start taking nature loss as the grave economic threat that it is and get on with urgent job of protecting nature?
Baroness Hayman of Ullock (Lab)
I assure the noble Baroness that the UK remains absolutely committed to providing international climate finance, both now and in the future, and to play our part alongside other developed countries and climate finance providers to deliver on our international commitments. There is a real economic benefit globally, not just here, to do that. We are on track to deliver £11.6 billion in international climate finance by the end of 2025-26 and are supporting the transition to more sustainable food and land use globally to help ensure the future of our global supply chains.
Lord Hannay of Chiswick (CB)
My Lords, I imagine that the Minister is aware that the Government have signed a memorandum of understanding with the Government of Indonesia, which is a substantial producer of palm oil and palm oil products. What steps are the Government taking to ensure that Indonesian palm oil products exported to us are not being grown in plantations planted in place of tropical rainforests?
Baroness Hayman of Ullock (Lab)
As I mentioned, we remain steadfast in working with partners to deliver our shared commitment to halt and reverse deforestation and forest degradation. Clearly, examples such as that which the noble Lord has just given are part of that. We need to ensure that any regulatory frameworks we bring in are robust and proportionate but also effective in addressing any deforestation in UK supply chains. Any decision-making will also have to consider the implications of the EU deforestation regulation on UK businesses that trade with the EU, and that is part of the bigger picture in order to address exactly the issues that the noble Lord is talking about.
Baroness McIntosh of Pickering (Con)
My Lords, some might say that the Government’s proposals for nature loss are very ambitious; some might say they are overambitious. Does the noble Baroness agree that taking 10% of farmland out of food production to go towards clean energy projects is not in the interests of the country? Surely, taking farmland out of production in this way must count against nature loss and biodiversity gain.
Baroness Hayman of Ullock (Lab)
I am sure the noble Baroness is aware that the Government are working alongside farmers and environmental organisations on our farming road map, “Farming 2050, Growing England’s Future”, in order to set the course of farming over 25 years. We need a long-term vision for farming and food security, and this road map will be designed to get there, because ultimately, we need to deliver our food security alongside our environmental objectives.
Lord Harris of Haringey (Lab)
My Lords, this is surely part of a much wider problem concerning the line of sight that businesses in this country have over their supply chains and supply lines. That applies to forests and to modern slavery, but it also applies generally in all sorts of ways—I declare my interest as chair of the National Preparedness Commission—to the sources and sustainability of the products on which we rely. This is not just about food security; it is also about ensuring that businesses know what their supply lines are and where they are from. What are we doing as a nation to make it easier for businesses to understand their supply chains?
Baroness Hayman of Ullock (Lab)
My noble friend asks a really important question. We announced a review of the UK’s approach to responsible business conduct as part of the UK trade strategy, and that is exploring the UK’s effectiveness in preventing human rights harms, labour rights harms and environmental harms in supply chains. That is how we are looking to support businesses and give them access to the kind of information my noble friend talks about.
Lord Roborough (Con)
My Lords, while it is right to take steps to protect forests overseas, I point out that Brazil and Indonesia, for example, have 50% forest cover, versus only 13% here. These countries already protect their forests through the Brazilian forest code and the Indonesian timber legality assurance scheme. Can we not do more to make the world greener in our own country by increasing our paltry 16.5% forest cover target? I declare my interest as an investor in SLC Agricola and Anglo Eastern Plantations, and as a forest developer.
Baroness Hayman of Ullock (Lab)
We have ambitious tree-planting proposals, including planting three new national forests—one has already begun and two are well on the way—because it is important that we increase tree coverage. We are also looking at how we can better protect the forests we already have, particularly our ancient woodlands. The environmental improvement plan the Government have recently published addresses many of those issues.
Baroness Grender (LD)
My Lords, what projections have the Government made of the impact on regional GDP and jobs if UK food and retail businesses lose market share because overseas competitors can show that they are stronger on deforestation-free credentials? Will the Minister commit to publishing any economic modelling behind their current chosen timetable and the scope for these due diligence regulations?
Baroness Hayman of Ullock (Lab)
Due diligence, particularly around trade and standards, is incredibly important. We want, as I am sure the noble Baroness is aware, to grow our economy in this country, but at the same time we must support business and ensure that we are doing so in a way that is sustainable—whether it is to do with the environment or human rights and so on. We discussed the issues she talks about with the Department of Trade, and we will continue to have very close discussions with it on how we continue to grow sustainable businesses in this country.
Baroness Coffey (Con)
My Lords, regulations about forest-risk commodities were starting to be drawn up in 2023. In August 2024, the Labour Government said that they supported the policy and would work on it. It is really concerning to hear the Minister now say that they are still considering this policy. I know there was an issue connected with aspects of Northern Ireland, but can the Minister please say what is going on? Are they now going to change to the EU regulations which were decried around the world, or can we press on so that we can do something to help save the planet?
Baroness Hayman of Ullock (Lab)
I shall take the noble Baroness’s concerns back to Defra because they are fair. But the issue is that we must make sure that we get the best regulatory approach to address deforestation in our supply chains. There are a number of factors we are considering, and I will just mention a couple. First is the compatibility of the forest-risk commodities approach which is enshrined in Schedule 17 to the Environment Act 2021 and the EU’s deforestation regulations. The issue is the differences between them—the EU approach introduces a strict deforestation-free standard and customs controls, whereas the Environment Act addresses illegal deforestation. The Government’s ongoing review of the UK’s approach to responsible business conduct that I just mentioned, led by the Department for Business and Trade, is also looking at the effectiveness of the UK’s approach to preventing human rights harms and environmental harms in supply chains. We must tie all this together if we are going to get it right and make it effective.
Baroness Bennett of Manor Castle (GP)
My Lords, returning to palm oil, global production affects at least 193 threatened species, with potential impacts on 54% of all threatened mammals and 64% of all threatened birds. It is the leading cause of orangutan decline: eight orangutans are lost every day. Do the Government not need to take urgent action on the deeply problematic product of palm oil?
Baroness Hayman of Ullock (Lab)
As I have already mentioned, we are absolutely committed to delivering this and ensuring that any regulatory framework we bring in that will affect any kind of product, such as palm oil and the UK trade in it, is going to be robust and effective, because there is no point in doing it if it is not going to make a difference.