Environment Bill

Baroness Meacher Excerpts

Committee stage
Monday 12th July 2021 Lords Chamber

[Lord Lucas (Con) [V]]

My Lords, I have two amendments in this group: Amendments 263 and 265. I thoroughly welcome the Government’s approach in this area. We have a responsibility as the consumers of forest products to make sure that they are sourced in a way we are comfortable with. To keep blindly consuming, say, palm oil without regard to the consequences is to take less than our responsibility for what is happening. It is our demand that is driving the production, and it is therefore our responsibility. We need to find ways in which we can exercise that responsibility without encroaching on the national rights of the people doing the producing. For instance, in the case of palm oil, I think it is entirely reasonable to ask that it is produced without further encroachment on virgin forest. My Amendment 263 suggests that we should also include peatlands and wetlands within that definition of “forest”. Both of these are environments that palm oil plantations can encroach on. They are both environments of great ecological significance, and we should therefore have as much interest in them as we do in a forest.

In order to know what is going on in response to our demand for palm oil, we need some information. The obvious information we have access to is satellite records, but they are not much use unless you can tie them to what is happening on the ground. We will need some form of baseline—I hope very much that COP 26 may provide that—or a map of where things are so that change can be measured from that. We need to be conscious of the fact that it is not necessarily the big boys doing the encroaching. It can be small farmers, subsistence farmers or people working out a small living who make the first cut, and then the big boys come in behind them, reward them and move them on to the next patch of virgin forest. What we need to watch is not some small detail but the overall effect, so that we know that palm oil sourced from a particular area or country has been done so ethically.

Amendment 265 deals with how we might make that work. I am suggesting that we should be able to give our approval to an organisation such as the Roundtable on Sustainable Palm Oil so that we can use it as an internationally recognised collaborative method of telling us which sources of palm oil are ethical. Then we should build some reward into that system. I am sure we would come up against the WTO again, but, as we have discussed before this evening, we need the WTO to become responsive to environmental imperatives. If a country is producing ethically farmed palm oil, we should be able to reward it with a premium, which should then go back into the process of making sure that palm oil is ethical and supporting the people producing it on those terms, so that we get a virtuous circle.

Those are my two suggestions for how we might make things more effective than they appear to be in the Bill. It is important that we look for a system that does not just deal with the import of the primary product but enables us to get at imports that contain substantial amounts of the product; otherwise, we just disadvantage our own producers. Working through something like a round table or an import tariff scheme would allow us to do that.

[Baroness Meacher (CB)]

My Lords, I will speak to my Amendment 264A. The noble Earl, Lord Sandwich, was very keen to speak on this amendment, to which he added his name, but for technical reasons was unable to do so.

I congratulate the Government on their attempt to tackle the alarming rate of deforestation. They plan to do this by prohibiting the use of certain commodities associated with illegal—I emphasise the word—deforestation and by requiring large companies to undertake due diligence and report on their activities in the relevant areas. I emphasise the word illegal because here lies the risk; the Bill as it stands risks incentivising Governments to change their laws to make sure that far greater deforestation—perhaps all of it—becomes legal. This Environment Bill will then have little or no benefit in preventing deforestation. I know this is not the intention of the Government, but I ask the Minister to consider most carefully the risk of leaving Schedule 16 as it stands.

As other noble Lords know, deforestation is a huge global problem and solving it has to be a top priority for COP 26. Just a couple of statistics will make the point. In 2020 alone, primary humid tropical forest loss covered some 4.2 million hectares—an area the size of the Netherlands. Paragraphs 2(1) and 2(2) of Schedule 16 make it clear that, as long as local laws are complied with, commodities grown on land where forest has been cleared can be traded commercially by UK companies. However, deforestation behind UK imports of commodities accounts for an area of tree loss almost the size of the entire UK. This year has seen the highest deforestation rates in the Brazilian Amazon in over a decade. This will only get worse without this amendment.

Apart from the Bill as it stands incentivising Governments to legalise deforestation in their own countries, even now a third of tropical deforestation is defined as legal and will not be tackled by Schedule 16, unless it is amended. Scientists in Brazil tell us:

“Currently in Brazil, approximately 88 million hectares … 4 times the size of the UK, could be cleared legally on private properties under Brazilian forest law.”


Another major issue is that laws relating to land use, forests and commodity production are often uncertain, inconsistent or poorly implemented, making the determination of legality very difficult, time-consuming, expensive or virtually impossible. Schedule 16 as it stands risks bogging down UK courts with difficult questions about the interpretation and application of foreign laws.

I know the Government have absolutely no wish to impose these problems on our industries. If they accept this amendment, they will surely provide clarity, consistency and certainty for UK businesses and for the countries of origin where deforestation is currently taking place. Leading UK companies have appealed to the Government to support a more rigorous standard than that set out in Schedule 16.

I thank the head of the Bill team and four other officials for the very helpful meeting we had on Thursday. They argued that 70% of deforestation for agriculture is illegal. Yes, but 30% is legal. Also, this is changing as we speak. The Brazilian Government are in the process of legalising forest lands. Paulo from Brazil, at a highly informative Global Witness meeting—I thank Global Witness for its incredible help on this—referred to a recent forest code which has legalised 12 million hectares of forest and a legislative package that will retrospectively legalise deforestation. The Bill encourages further legalisation to circumvent laws based on legality. This is dangerous. I understand that, despite all these issues, the Government want to work with producer countries to improve governance. This approach assumes that we are dealing with Governments who share our values—sadly, we are not.

Paulo from Brazil was appealing to the UK—appealing to me to appeal to the Minister, I should say—to introduce a strong law to prevent commercial activity based on deforested land, whether legal or illegal. He is deeply concerned about his Government’s determination to undermine our legality-based legislation.