Peers in the House of Lords have used a debate on the Financial Services and Markets Bill to call for a timeframe for forest risk commodity regulations.
An amendment requiring regulations under Schedule 17 to the Environment Act 2021 to have ministerial sign-off within six months of the Financial Services and Markets Act receiving Royal Assent was tabled by Baroness Sheehan with the support of Baroness Young of Old Scone, Baroness Coffey and the Bishop of Manchester.
They described the regulations as “five long years overdue”, and Baroness Sheehan made the point that companies are making decisions about supply chain management, traceability and compliance with the EU’s Deforestation Regulation, without knowing what the UK’s regulations will look like, nor when they will be published. This she described as “untenable.” She added,
“Clarity on the UK’s timelines and next steps would support investment, facilitate preparation and provide confidence that the UK is moving towards a coherent and predictable regulatory framework.”
Baroness Young of Old Scone described lack of action on forest risk commodities as “a major international embarrassment for the new Government” but also said that she had received “a little ray of light” in the form of an assurance from Defra that they are moving forward at pace.
Baroness Boycott called out the delays and drew particular attention to beef production which uses 60% of agricultural land globally and provides only 2% of global calorie consumption. Beef is also a forest risk commodity, and until the UK brings in forest risk commodity regulations, beef imported into the UK could have been raised on illegally deforested land.
Baroness Boycott also spoke in favour of the law being extended to cover both legal and illegal deforestation, because, in her words,
“We cannot afford to cut down any more forests.”
Lord Pitt-Watson, the Parliamentary Secretary, HM Treasury, agreed that urgent action is needed on deforestation. He confirmed that the government will consult later this year on Great Britain’s approach to tackling deforestation in domestic supply chains and to deliver legislation in 2027. He reiterated the government’s commitment
“to review the regulatory framework for tackling deforestation-linked finance within nine months of Defra’s legislation on domestic supply chains.”
Furthermore, he said he was prepared to require the PRA and FCA to consider their regard for climate change and environmental targets at a day-to-day level – rather than reducing this to an annual requirement, as proposed by the Bill.
Amendment 90 on forest risk commodities was not put to a vote, but it did succeed in putting pressure on the government to accelerate action on deforestation.
NGO Forest Coalition 