After a long wait for news about the implementation of deforestation due diligence requirements under the UK’s Environment Act 2021, the Government announced today that it will introduce secondary legislation in the coming months.
Key points to note from the announcement:
- Specific secondary legislation has not been shared. While the announcement is welcome, there is little new that has been communicated beyond a few directional intentions from current policy makers. Details are being promised through (another) industry consultation later this year.
- The Government has clarified that Northern Ireland will be subject to the EU Deforestation Regulation (EUDR). It is not clear who the competent authority is yet, but this clarity at least provides the necessary signal to companies what legal regime will apply.
- UK commodity scope, data, and traceability requirements will be aligned with the EUDR, but it isn’t clear if the old intention to have all potential uses of the commodity (embedded and direct supply) remains, or if the Annex I products will be the only ones in scope.
- The UK approach will remain on banning only illegal deforestation for the time being, in line with the primary legislation. This remains at odds with the EUDR, which covers both legal and illegal deforestation using a 31 Dec 2020 cut-off date.
- The stated intention is now to extend the scope of the primary legislation to include conversion. This aligns with the EU’s similar ambition to review this in the next couple of years. Neither market currently has conversion in scope of requirements.
Why this is welcome
The Retail Soy Group, represented by 3Keel Co-Founder, Will Schreiber, has repeatedly called for these measures to be brought forward. Over the past five years, the call for secondary legislation has grown to a deafening chorus from the private sector as the EUDR implementation dates get closer. It’s helpful to see that within the announcement, the Government has particularly referenced how retailers have been a constructive driving force to hold them accountable for introducing these requirements.
A timely and effective UK regulatory environment creates a level playing field for action on deforestation, and helps promote more frictionless trade with its biggest trading partner.
Expected next steps
The Government has said it will consult businesses, civil society and international partners later this year, but has not provided an implementation timeline. Details of the timetable for implementation remain unclear, particularly in light of the Prime Minister’s resignation yesterday and the likely government reshuffle. However, it is essential that any new Ministers maintain momentum, as this regulation is urgently needed to ensure that the UK addresses its significant deforestation footprint and operates on a level playing field with the EU.
