Deforestation in the Amazon

Neil Parish Excerpts

Wednesday 5th January 2022 Westminster Hall

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

I beg to move,

That this House has considered deforestation in the Amazon.

It is a pleasure to serve under your chairmanship, Mr Hollobone. One or two Members present will know that this is not the first debate that we have had on this subject in recent months, and I am grateful to have the opportunity to bring the issue back to the House. It was six months ago that we last debated the future of the Amazon here in Westminster Hall, so why bring the same issue back so quickly? The simple answer is that nothing shows any signs of changing. If anything, the situation is showing signs of worsening, despite the warm words at COP26.

We all know that the Amazon is one of the world’s most important ecosystems, if not the most important. It has been a vital carbon sink and is home to large numbers of indigenous people. Step by step, however, it is being destroyed. It is not the only place in the world where there is a major issue around deforestation, and Brazil is not the only country that faces similar challenges, that is taking controversial decisions or that faces illegal activity, but the reality is that the Amazon is the flagship of forests around the world, and it must be protected for the future.

For many years, it looked as though progress was being made. When I went to Brazil as a Minister and met Ministers there seven years ago, the level of deforestation was at its lowest for decades. It really did seem as though things were moving in the right direction, but I am afraid all that has now changed. Last year, deforestation was at its highest level for 20 years. Despite the Brazilian Government’s commitments at COP26 and the warm words, there is no sign of that ending. Land is being cleared every day for beef production, illegal logging, mining and urban development. Large areas continue to be burned each year to make way for land speculation, and vast numbers of the rarest species on Earth are being endangered as a result.

Why is it time for this House to debate this issue again, and for legislators here to send the strongest possible message to the Brazilians that deforestation must stop? The answer lies in two separate measures that are before the Brazilian Senate and due to be debated there again either later next month or in March. Both would have a further disastrous effect on the Amazon, and it is crucial that the Brazilian Senate steps in to take action to avoid the worst impacts of the legislation. The first measure would further legalise what have been illegal land grabs in the publicly owned part of the Amazon rainforest. The Brazilian Government control an area of the rainforest that is more than twice the size of France. Under Brazilian law, where logging is permitted on this land, it has to be carried out in a sustainable way. However, the reality is that over the years, there have been numerous illegal seizures and invasions of parts of that land, with huge areas being cleared for agriculture.

Brazilian law previously permitted the regularisation of such invasions that took place before 2011. Any subsequent invasion has been a criminal act, and the obligation is to restore the land to forest management, but the measures before the Brazilian Parliament are close to moving that deadline forward, from 2011 to 2017—six years later. That will effectively except a huge number of further illegal activities, and it will expose forest areas that are illegally occupied to further clearance. This will have the real-world effect of exposing of millions of hectares of forest to further clearance. The measure being considered also reduces the checks and balances on such occupation. In reality, this means that someone can claim responsibility for and ownership of an area without even being in that area. Environmental groups and researchers are warning that, in total, the measure could lead to the deforestation of up to 16,000 sq km of the Amazon over the next five years.

The second measure before the Brazilian Senate changes the country’s laws on environmental impact assessments, so that it will no longer be a requirement to analyse and mitigate indirect environmental impacts of a new project—the result being to make it much easier to build new roads through some of the most important areas of the Amazon. That leads to further deforestation, as it opens up previously inaccessible areas to illegal logging, mining and other activity that creates forest clearance. The evidence to support this looks incontrovertible to me; the research has demonstrated a clear link between road building and deforestation, with almost all previous deforestation taking place within 5.5 km of an official or unofficial road.

More worrying still, the measure creates an automatic self-licensing system, which allows applicants to self-declare that they will follow environmental standards, without any checks and balances to make sure that they do. There is a lot of support for small projects—that is probably reasonable—but not for big projects. They are the ones that lead to big impacts on the Amazon. For those major projects, it matters enormously. Taken together, these measures represent a clear and present danger to the future of the Amazon rainforest and its biodiversity.

COP26 may not have delivered all of the Government’s ambitions for tackling climate change, but it was notable for the general agreement to protect biodiversity and ecosystems. Some 141 countries, including Brazil, signed a declaration to work collectively to halt and reverse forest loss and land degradation by 2030, and over £20 billion of public and private funding was pledged to achieve that. The real question is whether those 141 countries, which control almost all of the world’s forests, will deliver on that commitment. The biggest question of all is whether the Brazilians, who control most of the world’s most important forest—the Amazon—will change course and act to prevent it from disappearing.

It is all very well countries having a commitment to end illegal deforestation by 2028 if they get there, but it is pretty pointless if it is preceded by five years of slash and burn—a wave of further deforestation that destroys tens of thousands more square miles of what is the world’s most important ecosystem. The evidence shows that clearing land for agriculture often only brings temporary benefits to agriculture anyway. Land in the Atlantic forest, which was Brazil’s other major forest, is now often degraded and of poor agricultural quality, so cutting down trees does not always create fertile land for the future.

[Neil Parish (Tiverton and Honiton) (Con)]

I thank my right hon. Friend for giving way and for securing this debate. My argument with the Brazilians is twofold: not only is there deforestation, but, as my right hon. Friend was just saying, they are not actually making good use of the land when they farm it. Basically, they farm all of the fertility out of the land, then leave it and move on to other land. It is bad in all respects, not only for the environment, but for agriculture.

[Chris Grayling]

My hon. Friend makes a very important point, and he knows very well the world of agriculture. Smart land management could give Brazil a higher quality agricultural resource without chopping down the Amazon. That is what it needs to achieve.

This is an important moment for Parliament to send a message to our counterparts in the Brazilian Senate and the Chamber of Deputies on this issue. I hope the Chamber of Deputies will adopt any amendments that the Senate pushes through next month, and I hope the Senate, when looking at these issues in the next couple of months, will put in place safeguards to stop deforestation. Parliament can send a message to the Brazilian Government, who I know will be following this debate and will get a report back on it. We are a friendly nation and a friend that is not afraid to criticise when it is appropriate to do so, but there is a very strong view in this Parliament that this has to stop. The Brazilians need to be good citizens of the world. They have an asset they need to protect, and they need to do the right thing.

It is in the Brazilian Government’s interests to do so, because more and more countries and people around the world now see environmental protection as crucial for the future of the planet. What that means is that more and more decisions will be taken by consumers, investors and Governments that underline that necessity. A country that chooses not to follow the same path will, step by step, acquire pariah status. The UK has already legislated to ban forest risk products from illegal sources. Other countries are strengthening their legislation, too, and I think there will be more change on that front.

Major buyers of agricultural products are also having to review their supply chains to ensure that the purchases they make come from sustainable sources. Major retailers use earth observation data from satellites to track the origins of their purchases. Sustainable food labelling—something that I have championed in this House—will inevitably come, either through regulation or simply by the choice of the retailers themselves. Customers will choose not to buy products that come from unsustainable sources.

Then there is the investment issue. International investment institutions are under increased pressure from their investors to provide green investment routes and to walk away from those that are not sustainable. A number of pressure groups have highlighted major financial institutions that continue to fund projects in places such as the Amazon that damage the environment, and their investors are not going to put up with this for much longer. They are already under intense pressure to stop doing that. That pressure will grow and grow, and they will have to walk away from those projects. The reality is that countries that simply ignore international pressure to protect their own ecosystems will lose investment in the future.

Then there are trade agreements, which will increasingly require commitments on environmental improvements. I expect, and strongly support and urge the Government to consider, the introduction of punitive tariffs on forest risk products from countries that ignore international pressures and continue to destroy vital ecosystems. I say to Ministers: there can be no question of this Parliament backing a trade agreement with Brazil while extensive forest clearances in the Amazon continue. I urge them and the international community to set out detailed plans for how they will impose punitive tariffs on those forest risk products if countries where the risk of forest clearance is great do not take action to stop it happening. The commitments made in Glasgow must be met.

There will of course be those who argue that taking this kind of action in the western world will be pointless if the huge and growing Chinese market for agricultural produce remains in place and if the Chinese do not participate with similar measures. However, that is not a reason for us to stand aside, or not to send those messages and take the action we need to protect the world’s vital ecosystems. We all know, understand and deal with the economic issues and challenges that our nations face, but all countries, in all parts of the world, have to face up to the reality that over the next years we all have a duty to protect our ecosystems and our natural world.

My message to our Brazilians counterparts, in the Senate, the Chamber of Deputies and the Brazilian Government, is this. We know it is tough. We know there are economic challenges. We know that the easiest option is often the most straightforward one to take politically. But in the end, if we destroy ecosystems around the planet, humanity will all pay a terrible price, whether we are Brazilian, British, American, Chinese or whatever. The Amazon is probably the jewel in the crown among all our most important ecosystems. Our friends in Brazil have a historic duty to protect it. Too much of it has already been lost, but in the end Brazil will suffer if it is not protected, because there is a tide of opinion around the world that will punish any country that no longer protects its natural resources.

Brazil is a great country. It is a long-standing friend of the United Kingdom, and good friends are not afraid to tell the truth. I urge the Minister, her colleagues and the Foreign Secretary to do just that in their interactions. The deforestation of the Amazon is wrong and it must stop. There will be a dreadful price to pay, for Brazilians and all of us, if it does not stop.

--- Later in debate ---

[Neil Parish (Tiverton and Honiton) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) for securing the debate.

I will concentrate on Brazil and the deforestation that has been going on there. I agree with my right hon. Friend that we are a critical friend of Brazil, but we need to be critical when an area twice the size of Devon was deforested last year alone. While the Brazilians are making good noises about COP26 and the environment, in practice that is not reflected on the ground.

Between 1990 and 2016, the world lost some 502,000 square miles of rainforest—an area larger than South Africa. In 2020 alone, over 11,000 sq km of the Amazon was lost to deforestation, which is the largest area in 12 years. As I said, that is twice the size of Devon. Between 2001 and 2018, Brazil lost almost 55 million hectares of tree cover, at a rate of 5.7 football pitches per minute. Deforestation rates in the Brazilian Amazon are at their highest in 15 years, and over the past 50 years forest coverage across the Amazon biome has declined by some 20%. There may be warm words, but the actions in Brazil do not show them.

In July 2021, scientists confirmed that the Amazon is a net producer of CO₂, emitting more carbon dioxide than it absorbs, as the hon. Member for Bristol East (Kerry McCarthy) said. We can all work on a cross-party basis to bring about pressure to correct the situation in Brazil.

The importance of the Amazon has been stated before. The Amazon alone contains some 90 billion to 140 billion metric tonnes of carbon. It is significantly more effective to maintain the current tree cover than to replant forests retrospectively. A tree in the Amazon rainforest probably holds as much carbon as two or three trees in this country just because of the rate of growth.

Forests hold 80% of the world’s terrestrial biodiversity. They support complex ecosystems such as plant life, animals, soils, bacteria and fungi. They also support our food supply system by ensuring that we have enough pollinators as well as providing pest control. The Amazon holds at least 10% of the world’s biodiversity and accounts for 15% of total river discharge into the oceans. Forest degradation can lead to catastrophic impacts, including increased soil erosion, disruption of water cycles, loss of habitat for endangered animals and increased greenhouse gases. Because the Amazon carries around 15% of the world’s freshwater into the sea, it probably has an impact on the salt in the sea overall.

Forests are home to communities and indigenous people. The Amazon is home to some 34 million people, including almost 3 million indigenous people. Half the Amazon basin is covered by protected areas and indigenous territories. Over 100 communities live in voluntary isolation. Illegal deforestation destroys communities, homes, livelihoods, culture and a way of life. Land that is the ancestral and sovereign right of indigenous communities is being taken by violent force, driven by consumer demand for widely used commodities. A Global Witness report entitled “Last Line of Defence” stated that 227 lethal attacks were carried out on land defenders in 2020—an average of more than four people a week—making this

“the most dangerous year on record for people defending their homes, land and livelihoods, and the ecosystems vital for biodiversity and the climate.”

I welcome the action taken by the UK Government in the Environment Act 2021. The Government have introduced a law that prohibits the use of certain commodities associated with illegal deforestation, and they have placed a requirement on large companies to undertake due diligence and reporting on their supply chains. That will prohibit the use of forest risk commodities within the UK market and encourage other nations to carry out proper due diligence when sourcing materials. We need only look at major importers of cereal into this country, such as Cargill, to know that much of the soya comes from Brazil. We need to question exactly where it has come from. Has it come from land that has been illegally deforested? The Department for Environment, Food and Rural Affairs is carrying out a consultation on secondary provisions that will run until March this year, which is an opportunity to strengthen the Environment Act to ensure that institutions cannot profit from illegal deforestation.

Agrifood expansion continues to drive deforestation in the Amazon. It is the main driver of deforestation, forest degradation and the associated loss of biodiversity. Large-scale commercial agriculture, primarily cattle ranching and the cultivation of soya bean and palm oil, accounted for 40% of tropical deforestation between 2000 and 2010, and local subsistence accounted for another 33%. A Global Witness report from October 2020, entitled “Beef, Banks and the Brazilian Amazon”, found that Brazil’s three largest beef companies were linked to tens of thousands of hectares of illegal deforestation, despite auditors saying otherwise. Over three years,

“beef giants JBS, Marfrig and Minerva bought cattle from a combined 379 ranches containing 20,000 football fields worth of illegal deforestation”.

A study in the Science journal states that

“roughly 20% of soya exports and at least 17% of beef exports”

from Brazil

“may be contaminated with illegal deforestation.”

The Bolsonaro Administration are in the process of implementing legislation that will legalise deforestation on public land for agricultural practices that has taken place since 2017. If granted a land title, businesses that have invaded land will be allowed to deforest public land and sell it for high profits. I say to the Brazilian Government that if they are really mindful that they will stop deforestation, such laws go completely in the opposite direction.

Financial institutions continue to hold the purse strings for illegal deforesting activity. The 2019 Global Witness report entitled “Money to Burn” found that more than 300 banks and investors had provided some $44 billion of finance to six of the world’s worst deforesters over the previous six years. It found that major financial institutions, such as HSBC, Santander and Barclays, have investments in agribusinesses that continue to carry out large-scale illegal deforestation. The investments and pensions of UK consumers may well be being used to fund deforestation.

A further 2021 Global Witness report, “Deforestation Dividends”, has found that financial institutions are bankrolling and profiting from agribusinesses that are destroying rainforest and forest habitats across the globe. Banks and asset management companies based in the EU, UK, US and China have invested $157 billion into firms accused of destroying rainforests in Brazil, south-east Asia and Africa since the Paris climate agreement. Global financial institutions including Deutsche Bank, J.P. Morgan, BNP Paribas, Rabobank and Bank of China have profited by some $1.74 billion in interest, dividends and fees from financing agribusinesses that carry out the most deforestation.

At a recent sitting of the Liaison Committee, the Prime Minister stated that more than 40 banks have signed up to the voluntary Glasgow declaration on forests and land use at COP26, which he said included Barclays and Aviva. However, no high street bank has, as yet, signed up to the agreement. I urge the Minister and the Government to put pressure on our banks to stop funding illegal deforestation. There is much we can do. If we can starve these major companies of credit, we can stop much of the deforestation.

Finally, I repeat that as we talk and trade with Brazil in the future, we must be absolutely certain that it has put its house in order. There must be no illegal deforestation, and the indigenous populations must not face having their land destroyed or taken from them, or, even worse, being killed. This debate is timely. I have used some strong language today, but I think it is important to highlight the current situation. I hope that it will improve in future, not only for the environment and agriculture, but for those indigenous people who are suffering.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Vicky Ford)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I add my words of thanks and gratefulness to my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) for securing a second debate on this important topic. I thank my predecessor as Minister responsible for Latin America, my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), for all her work on protecting the Amazon. I particularly thank her for the important work in the run-up to and during the COP26 meetings.

The importance of protecting the Amazon cannot be overstated, and we must tackle both climate change and biodiversity loss. Tackling deforestation is critical to both those issues, which is why it was at the heart of the UK’s COP26 presidency. In doing so, we must protect the natural environment and respect the rights of indigenous people. The Amazon, as the world’s largest rainforest, has to be at the centre of that effort. The Amazon is not only home to more than 10% of the world’s known plant and animal species but stores up to 200 billion tonnes of carbon—roughly a decade’s worth of global carbon dioxide emissions.

Around 17% of the Amazon has already been lost. If deforestation continues, it will reach a tipping point, potentially in the next decade. Unchecked deforestation will turn the Amazon from a carbon sink to a source of emissions, and the hope of keeping the 1.5° C target alive would slip from our grasp. Most of the emissions are caused by fires, many started deliberately to clear land for agriculture, particularly beef, as has been mentioned, and soy production. Even without fires, hotter temperatures and droughts mean that the south-eastern Amazon has already become a source of CO₂ rather than a sink.

In this critical decade, protecting the Amazon while supporting a sustainable economic transition in the region is one of the most urgent challenges that we face. My right hon. Friend the Member for Epsom and Ewell discussed Brazil, whose Government control two thirds of the Amazon as public lands. We must also remember the countries that are home to the other third of the Amazon. At COP26, much progress was made. As has been mentioned, more than 140 leaders from countries that together host over 90% of the world’s forests pledged to halt and reverse forest loss by 2030. That pledge included Amazon countries, such as Brazil, Colombia and Peru.

We know that to turn that promise into a reality will require funding. That is why at COP26 the UK mobilised 12 donor countries to pledge $12 billion of public climate finance through to 2025 in a new global forest finance pledge. The UK is contributing £1.5 billion—approximately $2 billion—to that pledge. We also committed to invest up to £300 million of climate finance towards tackling deforestation and delivering green growth in the Amazon by 2025.

The hon. Member for Bristol East (Kerry McCarthy) and my hon. Friend the Member for Tiverton and Honiton (Neil Parish) mentioned the importance of working with the financial sector. At COP26, 30 financial institutions, with more than $8.7 trillion of global assets, committed to eliminate investment in activities linked to deforestation. I know that that did not include all the banks that have been mentioned in the debate, and I call on other financial institutions to raise their ambitions. Nevertheless, the contribution from the private sector is deeply impressive. Although COP26 mobilised billions to support public sector investment in climate finance, it will be our efforts to mobilise trillions through deforestation-free supply chains that will deliver the substantive impact that we seek to achieve.

[Neil Parish]

I welcome the fact that financial institutions have made that commitment to stop funding deforestation, but many of our own, homegrown banks are still funding it. Please may I ask the Government to put real pressure on those banks? We all deal with them, and they have many good parts to them, but they must not put money into companies that are deforesting. If we take away the financial blood, they will not be able to carry on doing such damage.

[Vicky Ford]

The importance of private sector investment and the transparency of the supply chains, which I will come to, are key to unlocking those trillions in investment that will come through the supply chain and investment. That $8.7 trillion announced at COP was deeply impressive, but others should step up to the mark, because their own customers will expect them to do so.

My right hon. Friend the Member for Epsom and Ewell also mentioned the importance of trade. I reassure him that any future bilateral trade agreements with Mercosur member countries, including Brazil, will be in line with international obligations, including our commitment to a high level of protection for the environment.

At COP26, 12 of the world’s largest companies, which manage half of all global trade in commodities linked to deforestation, announced that they would lay out a road map for action by COP27, which is due to take place in Egypt. Eight financial institutions and agribusiness companies also announced commitments worth $3 billion to support soy and cattle production in the Amazon without the need for deforestation or land conversion.

The UK is also working on other projects with global partners to help protect the Amazon. Last February, for example, together with Indonesia, we established the forest, agriculture and commodity trade dialogue, known as FACT, which brings together countries that are major producers and consumers of agricultural commodities, including in the Amazon region, to protect forests while promoting sustainable development and trade. At COP26, 28 participants, including us, Brazil, Peru and Colombia, launched the FACT road map.

My hon. Friend the Member for Tiverton and Honiton and the hon. Member for Bristol East also mentioned the importance of sustainable agriculture. Since 2012, the UK has invested more than £60 million to promote sustainable agriculture in Brazil through the low-carbon agriculture programme known as Rural Sustentável, which promotes agricultural technologies such as integrated crop-livestock-forestry systems. Phase 1, which ended in 2019, reached more than 18,500 beneficiaries in the Amazon and Atlantic forest biomes, and delivered a sevenfold increase in livestock productivity, bringing more than 46,000 hectares of land under sustainable management and reducing carbon emissions by 52% compared with the baseline scenario. By the end of phase 2 in 2024, we expect to have prevented another 132,000 hectares of deforestation across the Cerrado, Caatinga and Amazon biomes.