Deforestation in the Amazon

Vicky Ford Excerpts

Wednesday 5th January 2022 Westminster Hall

[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.

[Kerry McCarthy]

Will the Minister explain the logic of putting British money into such projects but allowing Bolsonaro other things? That is a pittance compared to what is happening on the negative side. Is it not just throwing away our money, when we could achieve far more if we were able to stop the deforestation that is happening elsewhere in the country?

[Vicky Ford]

I will come on to comments about Brazil, but let me say that, absolutely, from the perspective of the Brazilian people and the future of Brazil, being able to tap into those trillions in private sector investment and global supply chains that want to follow sustainable investment is key to their prosperity. If Brazil does not deliver on the promises that it made at COP, it will miss out on the ability to tap into that consumer demand and private sector investment that want to help tackle deforestation and protect the environment. It is therefore in the economic interests of the people of Brazil and of their Government that they deliver on those promises made at COP.

In the run-up to COP26, however, the Amazon countries demonstrated vital leadership in the key commitments that they made. Colombia, for example, enshrined in its climate action law a commitment to net zero deforestation and to protecting 30% of its land and ocean resources by 2030. Peru raised its emissions reduction target from 30% to 40% by 2030, with particular commitments to halting and reversing deforestation, as well as protecting oceans. Brazil increased its national emissions reduction target from 43% to 50% by 2030. That includes specific targets to stop all illegal deforestation in the Amazon by 2028, and to reforest 18 million hectares by 2030.

We know that it will be hard work for President Bolsonaro to turn those commitments into reality. I understand from press announcements that he has recently been taken into hospital, and I am sure that everybody in this place wishes him a speedy recovery. As I have just said, it is absolutely vital, both for the prosperity of the Brazilian people and for the protection of the environment, that those promises are turned into reality. If any future Brazilian Government were to choose to disregard the contribution of the private sector, that would weaken confidence and hit the pockets of the people of Brazil.

My right hon. Friend the Member for Epsom and Ewell also noted that the recent deforestation numbers are deeply concerning. Deforestation in the Amazon basin has increased by 20% in the last year. We will continue to work with and support the Brazilian Government, businesses and civil society organisations.

My hon. Friend the Member for Tiverton and Honiton, the hon. Member for Dundee West (Chris Law) and others mentioned indigenous people. Without the active participation of those who call the Amazon home, we will not be able to tackle deforestation. Around 6,000 indigenous territories and protected areas cover around half of the Amazon basin. That is why the UK brought together Government and philanthropic donors at COP26 to pledge at least £1.7 billion over the next four years.

The UK is also taking robust action as a consumer country. Through the Environment Act 2021, our world-leading due diligence legislation will tackle illegal deforestation in UK supply chains, looking in particular at commodities that we think play the largest roles in deforestation, including cattle, cocoa, coffee, maize, rubber, palm oil and soy. The hon. Member for Bristol East mentioned shrimp farming, and I thank her for doing so. I encourage those with evidence to submit it through DEFRA’s consultation, which is open until 11 March.

My hon. Friend the Member for South West Bedfordshire (Andrew Selous) mentioned the need for clearer labelling. What lies behind any deforestation-free labelling is the credibility of supply chains, so we are already working with Brazilian businesses and the Brazilian Government to firm up traceability and transparency of deforestation to help support that work on deforestation-free supply chains.

To conclude, there was genuine progress at COP, but never before have nature and forests been so central to the climate agenda, and never before have so many countries come together to help protect the Amazon. Countries in the region are showing real leadership. The task ahead remains difficult, but we are committed to working with Governments and other key players in the region to help them turn commitments into action.