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.
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I understand that we must take seriously the fact that WTO rules are against import bans. We need to argue for an exception to this rule on the basis that our law is the least restrictive to achieve our objective. In view of the regimes responsible for the world’s greatest forests, we can legitimately use the least restrictive argument in this case. I understand that the Government’s position is that we should not be creating a wall around the UK in the year of COP 26, but we would not be alone. The Minister will be aware that the EU is planning legislation to adopt a full deforestation approach. That is an approach in line with this amendment. I would be very grateful if the Minister could explain the Government’s attitude to this. I hope the Government want us to be a world leader on deforestation, not a weak state lagging behind the EU. I hope that the Government will bring forward their own amendment on Report based on a deforestation-free standard drawing on international standards and which would apply to all UK sourcing. Dozens of organisations from Brazil, Indonesia and Cameroon working on the front lines of deforestation called on the Government to take this approach, as did over 20 of the UK’s largest agri-food supply chain companies. I ask the Minister to follow that advice and I look forward to his response. I apologise for the length of this contribution.