Financial Investment and Deforestation

Debate between Lord Grayling and Barry Gardiner

1st reading
Monday 17th October 2022 Commons Chamber

[Chris Grayling (Epsom and Ewell) (Con)]

I beg to move,

That leave be given to bring in a Bill to require banks and investment institutions regulated in the UK to verify and certify that they do not provide any form of financial or investment support to businesses which derive income from forest risk commodities, or that relevant local laws were complied with in relation to such commodities; and for connected purposes.

Deforestation around the world is a critical issue for the future of our natural world and our planet. The loss of forest cover has made climate change worse, has pushed millions of species closer to extinction and continues to cause real damage to ecosystems. The threat to the three biggest forest areas, in the Amazon, the Congo basin and south-east Asia, is particularly acute, and I am very proud that the United Kingdom has taken such a lead in the Congo in particular to try to halt deforestation and protect the key habitats there. I know that Members on both sides of the House share my concern about the conduct of the Brazilian Government over deforestation in the Amazon, and I will continue to use opportunities in the House to push for change there, regardless of who wins power at the elections later this month.

The deforestation threats that remain around the world overwhelmingly result from commercial pressures driven by agriculture. Forests are being cut down to make way for palm oil plantations, for soya production or for cattle ranches. In some places, including Costa Rica and Gabon, Governments have put a brake on deforestation, which is hugely welcome, but in too many places illegal deforestation is still destroying the natural world.

I am proud that this country has been at the forefront of creating legislative frameworks to help to address the commercial exploitation of forest-risk products. The Environment Act 2021 creates the first real framework to require UK businesses to know where their supplies are coming from and whether they come from areas affected by illegal deforestation, although I would say to Ministers that they need to move faster in putting the necessary regulations in place to back up the Act. What we have done should make it much harder for UK retailers to end up selling products from areas where illegal deforestation has taken place, but more needs to be done and that is what this Bill seeks to achieve. Solving the problem of illegal deforestation is not just about identifying where agricultural products originate from, or the sustainability, or otherwise, of supplies of commodities such as timber; it is vital to follow the money as well and that is where we need another round of change.

We should all be proud that the UK has one of the tiny number of major financial centres around the world. The City of London is probably the most important part of our economy today, generating profits that bring taxes to the Exchequer and help to pay for things such as the NHS. But the City is also a place where deals are done that affect countries around the world, so it is a place where corporate responsibility is of exceptional importance. I want the City to provide financial resource and advice to investment projects and to corporations around the world—that is a given, and the City does a good job of it. In doing so, however, the institutions offering those services from the UK also need to be mindful of the impact the finance they provide has on the communities, countries and environments they work with. Although the clearance of an area of rainforest is often carried out at a local level by people creating a new farmland area, rather than by big corporations, it is the corporations that then arrive to buy the products of that illegal land clearance.

The Government are rightly requiring retailers to know where products such as soy and palm oil come from, and that they do not sell products that are sourced from illegally deforested areas, but it has to be right that the financial institutions that bankroll those big corporations also apply a similar standard to the investments that they make, to the banking services that they supply, and to the shares that they purchase.

Over the past couple of years, the Government’s global resource initiative taskforce has looked carefully at this issue and I commend the Ministers involved in setting up that initiative. However, it found that the UK finance sector lends and invests, directly and indirectly, in forest product supply chains where issues genuinely exist. Although it found that there is no overall figure for the UK finance sector’s exposure to forest-risk ventures, it clearly identified that the financial support and investment being provided to companies, sectors and financial institutions with high deforestation risk amounts to hundreds of billions of pounds. It also found that, although a handful of the biggest institutions internationally are working to try to address the issue, the majority of financial institutions have not taken steps to actively assess or manage deforestation risks.

The majority of institutions do not have deforestation policies. Many of these are headquartered in the UK. Many others also operate local branches in the City of London.

[Barry Gardiner (Brent North) (Lab)]

Will the right hon. Member give way?

[Chris Grayling]

If I am allowed to. Am I? No.

Protecting and Restoring Nature: COP15 and Beyond

Debate between Lord Grayling and Barry Gardiner

Thursday 14th July 2022 Commons Chamber

[Chris Grayling]

This is why my argument is around a real focus on the restoration of degraded land. Semi-desert subsistence farmland will never deliver anything for anyone except an impoverished lifestyle and poor biodiversity, but the restoration of land is a tangible that can be addressed in the COP because it can be measured and tracked.

[Barry Gardiner]

I welcome the right hon. Gentleman’s intervention. He is right that we need to look at land restoration as one of the key indicators. It is particularly the case in sub-Saharan African countries, which are facing an increasing challenge of desertification from climate change, which they are having to fight against, rather than just looking at the land that is already semi-desert and trying to see how to restore that. It is a huge problem. The NBSAPs must be living documents, which is why they need to be ratcheted up, as the hon. Member for Brighton, Pavilion said, every five years between major COPs.

Let me turn to finance. I pay tribute to Mia Mottley, the Prime Minister of Barbados, who spoke at the beginning of COP26. For my money, she was the most powerful speaker at the whole event. She pointed out to the politicians assembled for the launch of COP26 that the promise we had given was for $100 billion a year to be put into the global planet fund to help the global south to cope with climate change and to take effective mitigation efforts. We have not delivered that, and we are nowhere near delivering it. She pointed out that it was not because we could not afford it, because we had just spent $9 trillion—trillions, not billions—bailing ourselves out over the covid pandemic. The funds are available and they must be made available.

The extent of quantitative easing that the global north has allowed itself since the 2008 global financial crisis has been more than $36 trillion. What is COP15 asking for? It is asking for the same as was promised at COP26: $100 billion a year, rising to $700 billion a year. That is essential. If we are to enable those developing countries in the global south to do exactly what the right hon. Member for Epsom and Ewell was talking about with regard to the restoration of degraded land, and if we are to deal with these problems, we have to be serious. As the human species, we do not have the right not to be.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 10th March 2016 Commons Chamber

[Chris Grayling]

My hon. Friend tempts me, but he must bear in mind that the Government’s formal position is to recommend that Britain stays in the European Union. We will, of course, have lively debates in the House and the country about what should happen, and in June the British people will decide.

[Barry Gardiner (Brent North) (Lab)]

The Leader of the House will be aware that, three days ago, the Institutional Investors Group on Climate Change, which represents £13 trillion of assets under management, wrote to the Chancellor to press for regulation to ensure mandatory corporate disclosure of climate risks. May we have a debate in Government time on the mandatory reporting of climate risks, so that there is transparency about the financial health of our corporate sector, and so that the confidence of such an enormous body of investment funds can be increased?

[Chris Grayling]

The hon. Gentleman is another person for us to wish a happy birthday. This country is at the leading edge of combating climate change, and we have adopted targets that stand comparison with any in the world. However, there is a point at which simply putting additional reporting requirements endlessly on to business leads to us having fewer jobs in the country, rather than more, and that is not something I support.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 11th February 2016 Commons Chamber

[Chris Grayling]

I am sure everyone in the House today will commend my hon. Friend for his determination to pursue the cause of ensuring the protection of a noble species. I congratulate him on what he is doing. The hedgehog is an integral part of our country’s wildlife. [Interruption.] Despite what the shadow Leader of the House says, it is a very noble species and a very important part of our national heritage. I commend my hon. Friend for the work he is doing. I have no doubt whatever that when he comes forward with a successful petition, as I am sure he will, the Petitions Committee will make time available for such a debate.

[Barry Gardiner (Brent North) (Lab)]

My constituent Mr K has received two fixed penalty notices—one for exiting a car park from the wrong exit, and another for parking in a business permit bay—and, as a result, he was told that he had failed the good character requirement for British citizenship. May we have a debate on proportionate decision making in the Home Office?

[Chris Grayling]

It is difficult for me to comment on the individual case. Clearly, we want people who apply for citizenship to be of good character. However, I accept the hon. Gentleman’s point that if the system has gone badly wrong, somebody should do something about it. The Home Secretary will be in the Chamber for oral questions on Monday week and I suggest that the hon. Gentleman puts that question to Ministers, who I am sure will want to take it up on his behalf.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 21st January 2016 Commons Chamber

[Chris Grayling]

As we have heard, my right hon. Friend feels strongly that we should have such debates. He may be right about the Leader of the Opposition, but I am not sure that the rest of those on the Labour Front Bench want to have that debate any time soon. This is a matter under consideration and I hope to be able to indicate in the not too distant future the Government’s plans for future debates about defence matters.

[Barry Gardiner (Brent North) (Lab)]

The International Association of Athletics Federations has recently acknowledged the widespread doping in world athletics. This morning, UK Anti-Doping has asked to see Arsène Wenger because of his long-term brave outspokenness on doping in football. What are the Government going to do about this issue, and may we have a debate?

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 7th January 2016 Commons Chamber

[Chris Grayling]

We have a debate coming up on funding for rural areas. It is quite noticeable that Conservative councils, with the financial challenges we all face across the country, have risen to those challenges and still deliver high-quality services at a lower price, but Labour councils are struggling even to operate with the money they have.

[Barry Gardiner (Brent North) (Lab)]

Driven grouse shoots damage wildlife sites, increase water pollution, increase greenhouse gas emissions, increase water bills, result in the illegal killing of hen harriers and shed water off hillsides, which causes millions of pounds of damage in floods—we have seen such floods in recent weeks—so may we have a debate and a vote on whether to abolish driven grouse shoots?

[Chris Grayling]

Conservative Members believe that we should support our countryside and our country traditions. Labour Members have absolutely no interest in rural communities or the people who live in them, and every time they are in power they damage those communities.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 17th December 2015 Commons Chamber

[Chris Grayling]

That was an interesting segue. Many turkeys will be gracing our tables at Christmas time, possibly with pigs in blankets, except in the Rhondda, where the sausages are all thrown away. The consequences of leaving the European Union will be debated and discussed in the coming months, strong views will be articulated on both sides and then the people of this country will decide.

[Barry Gardiner (Brent North) (Lab)]

The Leader of the House will be aware that one of our most eminent conservationists, Chris Patten, talked earlier this week of the 75% decline in butterfly species, saying that it was a final warning to the UK. May we have a debate on the decline in species in this country and the need to take urgent action to meet our Aichi targets?

[Chris Grayling]

I ought to declare a particular interest in this subject, as not only is the grayling a species of fish, but it is a species of brown butterfly. Like the hon. Gentleman, I would not wish butterflies to disappear from our country, and I share the concerns that he has raised. It is important that in this country we have a balanced policy that ensures that we protect our countryside and protect habitats, as well as providing space for agriculture. The points he makes are well made and I will make sure that they are communicated to the relevant Secretary of State, whom I am sure shares the views that he and I both do.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 17th September 2015 Commons Chamber

[Chris Grayling]

The hon. Gentleman might not be terribly sympathetic if his new leader decides to campaign to leave the EU. The Opposition are already in chaos over this policy area, as in many others.

[Barry Gardiner (Brent North) (Lab)]

If 52,500 people were dying each year in road traffic accidents, the Government would have to respond to the public outcry and act. Last week, the Government revealed that 52,500 people were dying from air pollution every year in this country. The Supreme Court has found that the Government’s failure to prepare a plan to deal with that is illegal, and the UK now faces infraction fines. Will the Leader of the House make time for an urgent debate, in Government time, to set out the Government’s proposals to deal with this damage to the health of the British population?

[Chris Grayling]

There will be plenty of opportunities to question Ministers about this issue. It is a matter that the Government take seriously, but of course it is a challenge for any Government to deliver dramatic change to our society overnight. Ministers are working carefully on ways to improve the situation, and the hon. Gentleman will have an opportunity to call a Back-Bench debate, either here or in Westminster Hall, bring a Minister to the House, and ask questions at one of the monthly Question Times.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 16th July 2015 Commons Chamber

[Chris Grayling]

Of course, one of the benefits of how this place works is that Members have a number of ways to bring Ministers before the House to answer questions—whether it be through Adjournment debates, oral questions, debates called by the Backbench Business Committee or whatever. I have no doubt that the hon. Gentleman will use one of those different approaches to bring the Secretary of State for Scotland here so that he can put those questions directly to him.

[Barry Gardiner (Brent North) (Lab)]

The third international conference on financing for development, which took place in Addis Ababa last weekend, made it clear that aid donor countries received five times as much in illicit financial flows as they gave out in aid—for every $1 in aid, they received $5 in illicit financial flows. We have not had a statement on the conference, which has been some surprise, but will the Leader of the House make time for a debate on what this country is doing to stop such illicit financial flows from flowing back from the developing world into the UK?

[Chris Grayling]

We are—I believe rightly—good citizens in the world when it comes to providing development support where it is needed, but none of us would ever condone illegal practices; in fact, we have some of the world’s toughest and most highly regarded anti-corruption laws. I will make sure that the Secretary of State for International Development is made aware of the concerns that the hon. Gentleman has raised.

Business of the House

Debate between Lord Grayling and Barry Gardiner

Thursday 11th June 2015 Commons Chamber

[Chris Grayling]

We are fortunate in this country to have some excellent schools that do a first-rate job for our young people and raise standards in a way that is essential to our future, but some schools do less well and some need a bit of a push, and Ofsted does an important job in making that happen. The purpose of the Education and Adoption Bill—the education piece of it—is to ensure we have the right mechanisms to continue to drive up standards. I hope that my hon. Friend will use that debate to raise some of the success stories in his constituency, and to address our strategy to ensure that things carry on getting better.

[Barry Gardiner (Brent North) (Lab)]

The under-10 metre inshore fishing fleet in coastal communities around England is urgently waiting to know when the Leader of the House will lay before Parliament the proposals in the Conservative manifesto to reallocate fishing quotas towards the under-10 metre fleet. When will this be coming forward?

[Chris Grayling]

I cannot give the hon. Gentleman an exact date, but the Secretary of State for Environment, Food and Rural Affairs will be before the House next Thursday. I suggest that he puts his question to her then. I know she will try to be helpful.

Oral Answers to Questions

Debate between Lord Grayling and Barry Gardiner

Tuesday 4th February 2014 Commons Chamber

[Chris Grayling]

Fundamentally, in my opinion, the problem is that the Court is interpreting the convention as an unfettered jurisprudence that allows it to move into areas never envisaged by the people who wrote the convention. My clear view is that the Court is moving into areas that are matters for national Parliaments and which do not belong within the remit of an international court. It is a matter of disagreement between the coalition parties—we are open and honest about that—but we will leave it to the electorate in 14 months to decide which of our approaches they prefer.

[Barry Gardiner (Brent North) (Lab)]

Would the Secretary of State care to reflect on the role of the European Court of Human Rights in protecting fundamental freedoms in this country that he would support? For example, it was due to the Court that journalists were not forced to reveal their sources and that people were allowed to go on wearing crucifixes when they had been told not to wear them. These are essential and fundamental freedoms that I know he agrees with. Would he care to comment on that?

[Chris Grayling]

Where I differ is that I do not believe it is necessary to have an international court deciding things that should be a matter for this Parliament and our courts. That is what needs to change.