How the UK can help lead the fight against global deforestation
Kristina Flexman, Senior Environmental Policy Consultant
| WSP
WSP’s Kristina Flexman discusses the opportunity for the UK to enhance its efforts in combating global deforestation by strengthening its regulations to protect ecosystems, support sustainable trade, and stay competitive with the EU’s stringent standards
Deforestation is one of the most pressing environmental challenges. Since the turn of the century, about 12% of the world’s tree cover (and 7.5% of the UK’s tree cover) has been lost. Forests play a key role in combatting climate change and biodiversity loss, as well as providing other ecosystem services. As such, halting the global trend of deforestation is imperative.
The production of forest-derived products such as timber, cocoa, coffee, palm oil, rubber, and soya can lead to deforestation. In the UK, a considerable proportion of these products are imported from countries where deforestation is rife. For example, about 20% of imported hardwood is from Brazil and about 10% of imported palm oil is from Malaysia. In 2021, UK consumption led to over 3,500 hectares of deforestation in Brazil and over 1,000 hectares each in the Democratic Republic of Congo, Bolivia, and Indonesia. In total, UK consumption leads to the loss of about 84 hectares of forest every day (about 150 football pitches).
The current regulatory landscape
UK legislation (the UK Timber Regulation and Forest Law Enforcement, Governance and Trade Regulation) prohibits illegally harvested timber from being placed on the market. However, it does not tackle deforestation and forest degradation. The legislation is based on the European Union’s now outdated Timber Regulation (EUTR).
In 2021, WSP (the Environment & Infrastructure business of John Wood Group plc at the time) undertook a study for the European Commission, identifying several gaps in the EUTR. Critically, the regulation does not cover all forest-based products and does not prohibit deforestation or forest degradation.
EU developments
After assessing policy options in the 2021 study, the EU has since overhauled its legislation on deforestation. The EU Deforestation Regulation (EUDR) was introduced in 2023 and will fully repeal the EUTR by the end of 2024. Going forward, companies trading forest-sourced commodities in EU countries will face more stringent due diligence requirements to prove that their commodities are deforestation-free. Companies will need to identify and document the geographical coordinates of all plots of land from which commodities have been sourced, as well as contact details of actors in the supply chain, and various other pieces of information.
The EUDR represents a huge leap from the EUTR, and environmental benefits are expected to be momentous. The EUDR goes beyond the EUTR (and UKTR) by applying to forest-derived products beyond wood (e.g. soya); explicitly requiring that products must be deforestation-free; requiring full traceability of supply chains; and requiring risk assessment and mitigation to prevent deforestation-related products from entering supply chains.
Where does the UK stand?
In comparison, the UK’s approach has developed differently. The Environment Act 2021 implements similar provisions to the EUDR; however, it focuses on compliance with local legislation in the location where forest-derived products have been sourced. This does not explicitly prohibit deforestation and forest degradation.
Beyond environmental impacts, the UK must consider how divergence from the EUDR may impact trade. UK businesses exporting to EU countries will need to comply with the EUDR in addition to UK legislation, which may incur costs. For example, companies will need to prepare and submit due diligence statements. Companies must also ensure that due diligence statements provided by their suppliers are accurate.
Challenges faced by business may include difficulties in verifying which commodities are under the scope of the EUDR and ensuring compliance with all elements of the EUDR, particularly the geolocation information requirements. A FAQ document from the European Commission highlights numerous questions and complexities that companies may have to navigate. Tools from organisations such as the Forest Stewardship Council (FSC) are available to support EUDR compliance.
What’s next for the UK?
Stakeholders have recommended that the UK could benefit by further adapting its approach to preventing deforestation. FSC UK and the Soil Association suggest that regulations could be amended to introduce sustainability requirements. Moreover, the European Union invites third countries to enhance deforestation-free supply chains and strengthen public traceability systems to help traders comply with their obligations.
Given the urgency of the deforestation crisis and considering the EU's proactive stance with the EUDR, there is an opportunity for the UK to lead the fight against global deforestation. By evaluating our current regulatory landscape and considering alignment with the EUDR, we can protect vital ecosystems, support sustainable trade, and ensure that UK businesses remain competitive in the global market.
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