Environment Bill — House of Lords, 2021-07-12
Topic: Environment
Sue Hayman (Labour, Centre-left): My Lords, this is a really important group of amendments and I am pleased that, despite the late hour, we have managed to have a good debate around them. I will speak to Amendment 264ZA, in the name of my noble friend Lady Jones of Whitchurch and the noble Lord, Lord Oates, but we also support other amendments in this group and thank noble Lords for tabling them. There are some very important points that need to be addressed In his introduction to his amendment, the noble Lord, Lord Randall of Uxbridge, talked about the Government’s 25-year environment plan and their commitment to ensuring that "our consumption and impact on natural capital are sustainable, at home and overseas." It is therefore a bit disappointing that the Environment Bill does not currently reflect this commitment adequately The Global Resource Initiative task force recommended back in March 2020 that the Government "urgently introduces a mandatory due diligence obligation on companies that place commodities and derived products that contribute to deforestation", whether legal or illegal under local laws, on the UK market. It also recommended that, since not all businesses have begun to commit to and implement sustainable supply chains, a legally binding target to end deforestation —as we have heard from other noble Lords—would provide the "necessary signal" for a shift in industry behaviour. As the noble Baroness, Lady Bennett of Manor Castle, did, we welcome the Government’s amendment that was tabled in the other place following campaigning, and the fact that Schedule 16 now includes a new prohibition on the use of certain commodities associated with illegal deforestation and requirements for large companies to undertake due diligence and reporting. However, as we heard in the debate, the provisions simply do not go far enough in progressing either the GRI recommendations or the level of action that is demanded The noble Baroness, Lady Sheehan, mentioned the lack of attention to human rights in Schedule 16. NGOs such as Global Witness and Forest Peoples Programme have highlighted that there is currently no mention of human rights or of indigenous peoples and others who live in forests and rely on them for their livelihoods and survival. The Bill must be strengthened to tackle the growing problems caused by deforestation and to drive action to significantly reduce our global footprint. The noble Lord, Lord Oates, talked about the appalling impact of this country’s role in deforestation. This really does need to be better recognised. Due diligence legislation is only part of the comprehensive approach that will be needed to deliver deforestation-free supply chains and to significantly reduce global footprint impacts more broadly Land conversion for agricultural purposes is often associated with negative human rights impacts. Beyond local laws, it is therefore critical to ensure that the UK requires businesses to have evidence that the free, prior and informed consent of indigenous peoples and forest communities was obtained in relation to the production of forest risk commodities on their land and in the local area. Our amendment does this, although I am aware that some indigenous communities see this as just the starting point. We thank the noble Earl, Lord Sandwich—as others have done—for his support; he was unable to speak in the debate today We offer our support to Amendments 260B and 260C in the name of the noble Lord, Lord Randall of Uxbridge. Schedule 16 introduces an important requirement that regulated businesses must not use certain forest risk commodities in their UK commercial activities unless relevant local laws are complied with in relation to that commodity. This is an important first step, but it does not go far enough since 30% of tropical forest destruction is defined as legal under local country laws. The noble Baroness, Lady Meacher, expressed her concerns that this could create a loophole, and the noble Lord, Lord Oates, also mentioned this. This loophole could risk limiting the effectiveness of the legislation and, as the noble Baroness said, could even incentivise Governments in countries such as Brazil to roll back forest protections in order to access UK markets. As deforestation is more prevalent where local laws are not enforced or upheld, this also poses challenges as to how the UK will interpret exactly what is meant by "legal". So, we support the very important Amendment 264A in the name of the noble Baroness, Lady Meacher, which addresses this. This amendment also provides for an exception for forest risk commodities produced by indigenous peoples, as the noble Baroness spelled out so clearly We also support Amendment 265A in the name of the noble Baroness, Lady Parminter, on finance. Schedule 16 does not address the financing behind deforestation. The noble Baroness, Lady Parminter, talked about the huge amount of financing that comes from the UK and the lack of due diligence. I have to say, I learned an enormous amount from her introduction to the amendment, and I thank her for it. In March 2020, the Global Resource Initiative task force recommended that the UK should require companies to undertake checks on deforestation risk in their supply chains and that similar measures should apply to finance. But the Government chose to cover supply chains only, responding that UK finance institutions can use the new information gained from companies undertaking due diligence reports to inform their decisions. However, experience has shown that this is likely to fail and that they are likely not to do so unless required to by law. This is very important as broad-based measures on finance, such as the Task Force on Climate-Related Financial Disclosures, or similar efforts on nature or biodiversity, are really not suited to the specific issues around deforestation and are unlikely to curb financing. The Bill needs to specify that UK finance institutions must not provide financial services to commercial enterprises linked to deforestation and human rights abuses, so we strongly support the noble Baroness’s amendment We also support Amendments 265B to 265D in the name of the noble Lord, Lord Randall of Uxbridge, which seek to introduce a requirement that the Secretary of State must take the steps identified through a review to improve the effectiveness of Schedule 16. Amendment 293B in the name of the noble Lord, Lord Randall of Uxbridge, would require the Secretary of State to set a target to significantly reduce the global footprint, and we support this amendment as well. In his introduction to this amendment, the noble Lord referred to the Biodiversity in the UK: Bloom or Bust? report that was published in June by the Environmental Audit Committee, which recommended that the Government should set such a target We also welcome Amendment 263, tabled by the noble Lord, Lord Lucas. The noble Lord, Lord Blencathra, talked passionately about global biodiversity, but it is important that we are all very aware of our own impacts on this. The production of forest risk commodities is linked to the conversion and degradation of natural ecosystems other than forests; noble Lords have mentioned savannahs, wetlands, peatlands, grasslands, and mangroves. The noble Lord, Lord Lucas, talked specifically about the production of palm oil, and other noble Lords have mentioned soya as well. There is no policy justification for limiting provisions to forests when other natural ecosystems are under the same pressures from commodity production and provide the same or even greater biodiversity and climate benefits A large number of amendments have been discussed in this group, and it has been an important debate on an important issue. I hope that the Minister has listened carefully to the many amendments that have been debated. It is clear that noble Lords have some very serious concerns and believe that it would not take a lot to improve the Bill quite significantly on this aspect. I await the Minister’s response with interest.