UK deforestation laws within reach

On 23 June, during London Climate Action Week, the UK government finally announced its long-awaited plans to implement forest risk commodity regulations. Four years ago the UK promised “world leading” legislation to tackle the deforestation linked to UK imports. Now, at last, we have a proposal to move forward with, and the government has promised that it will consult businesses, civil society and international partners later this year on the details of the proposed policy. 

Until now there has been nothing to stop the import of commodities grown on illegally deforested land. The Environment Act provides the broad legal basis for action, but since it was passed in November 2021, more than 54,000 hectares of forest – an area the size of Liverpool – have been destroyed to produce goods imported to the UK, according to Global Witness. 

The delay has left UK consumers with little choice but to buy products linked to illegal tropical deforestation, even though polling consistently shows very strong public support for regulation to end this.

From 30 December, the EU Deforestation Regulation (EUDR) will begin to be implemented in Northern Ireland. Under the proposals, the new regime for England, Scotland and Wales will cover the same core commodities and underlying information requirements as in Northern Ireland (and therefore the EUDR). Initially it will only target illegal deforestation, but the government says that its ambition is to transition to a deforestation-free standard which will require relevant products to be produced free from any deforestation. 

Global Canopy’s Deputy Executive Director Helen Bellfield welcomes the news:

“As the climate crisis sends temperatures soaring, the need to tackle deforestation is clear. Regulation is key to moving the market at scale and speed. We also agree with the government’s proposal to align with EU regulations and its ambition to extend the law to cover legal as well as illegal deforestation. But we need these regulations as soon as possible, because each second of delay means more forests fall. Critically, we also need to end the financing of deforestation, so the government must turn its attention to the regulation of the finance sector without any further delays.”

Helen Bellfield, Deputy Executive Director at Global Canopy

Financial regulation is essential

Through their loans and investments, financial institutions provide the capital that drives deforestation. While some leaders are showing what is possible and making good progress, most are not acting seriously or with pace on the issue. The latest Forest 500 report shows that 59% of the 150 financial institutions with the most influence on global deforestation have no deforestation policies at all. 

Currently, neither the UK plans nor the EUDR covers the finance sector. But the EU has promised a finance sector review, and in the UK, once the regulations are signed into law, this triggers a review of the adequacy of existing financial regulations for the purpose of eliminating the financing of the use of prohibited forest risk commodities.

Both the Environmental Audit Committee and the GRI taskforce have recommended regulating the finance sector. The government says it wants to make the UK the sustainable finance capital of the world. To achieve these aspirations, regulation of the finance sector is essential. 

Human rights not fully covered by UK and EU due diligence laws

Deforestation goes hand in hand with human rights abuses. Companies and financial institutions cannot be relied on to address their own human rights impacts, particularly in respect to Free, Prior and Informed Consent (FPIC) and customary land tenure rights of Indigenous Peoples and local communities.

Both laws include ensuring commodities are produced in compliance with laws in countries of production. The EUDR highlights relevant laws including land use rights, labour rights, human rights protected under international law and FPIC. In the UK, the “relevant local laws” on land ownership and use may also include human rights standards. However, these approaches depend on the strength of laws in producer countries, which can vary, as well as the capacity of enforcement agencies to understand and apply the legality criteria. 

This latest announcement by the UK government is welcome. And aligning UK laws with the EUDR makes it easier for companies and competent authorities to act. This is a clear, sound basis to move forward on, and we urge the government to do so without delay.