Forest-Risk Commodities

Baroness Coffey Excerpts

Monday 2nd March 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Due diligence, particularly around trade and standards, is incredibly important. We want, as I am sure the noble Baroness is aware, to grow our economy in this country, but at the same time we must support business and ensure that we are doing so in a way that is sustainable—whether it is to do with the environment or human rights and so on. We discussed the issues she talks about with the Department of Trade, and we will continue to have very close discussions with it on how we continue to grow sustainable businesses in this country.

[Baroness Coffey (Con)]

My Lords, regulations about forest-risk commodities were starting to be drawn up in 2023. In August 2024, the Labour Government said that they supported the policy and would work on it. It is really concerning to hear the Minister now say that they are still considering this policy. I know there was an issue connected with aspects of Northern Ireland, but can the Minister please say what is going on? Are they now going to change to the EU regulations which were decried around the world, or can we press on so that we can do something to help save the planet?

[Baroness Hayman of Ullock (Lab)]

I shall take the noble Baroness’s concerns back to Defra because they are fair. But the issue is that we must make sure that we get the best regulatory approach to address deforestation in our supply chains. There are a number of factors we are considering, and I will just mention a couple. First is the compatibility of the forest-risk commodities approach which is enshrined in Schedule 17 to the Environment Act 2021 and the EU’s deforestation regulations. The issue is the differences between them—the EU approach introduces a strict deforestation-free standard and customs controls, whereas the Environment Act addresses illegal deforestation. The Government’s ongoing review of the UK’s approach to responsible business conduct that I just mentioned, led by the Department for Business and Trade, is also looking at the effectiveness of the UK’s approach to preventing human rights harms and environmental harms in supply chains. We must tie all this together if we are going to get it right and make it effective.