Contribution
That is probably the subject for another long debate, because it gets into the inequities in global food supply chains and making sure that farmers—whether in the hon. Gentleman’s constituency or the heart of the Indonesian rainforest—get fairly rewarded for what they do. I would say that a lot of products with palm oil in them are probably not the best elements of a healthy diet, such as the ultra-processed foods we should be stamping out. However, palm oil can be sustainable, and I will come on to talk about how we ensure that it is. Even if some palm oil products someone ends up consuming are not particularly great, there are others where palm oil is an important part of our food systems.
Indonesia is the world’s largest producer of palm oil, supplying more than half of global exports. Palm oil accounts for around 4.5% of GDP and supports 16 million jobs, with many of those involved being smallholders, as I said. This is a dilemma that many emerging economies face: going for growth, exploiting abundant natural resources to the max and boosting the livelihoods of people who might otherwise be living in poverty, or protecting their environment. However, I do not think those two things need to be at odds with each other.
It is true that palm oil has historically been linked to deforestation, peatland drainage and biodiversity loss, but Indonesia has been taking steps to address that. A mandatory national certification scheme for Indonesian sustainable palm oil, known as ISPO, was introduced in 2011. A palm oil moratorium was introduced in 2018, halting new plantation permits and revoking some non-compliant concessions, and many private sector companies have adopted NDPE, or “No Deforestation, No Peat, No Exploitation” policies.
Indonesia has also acted more widely to protect its forests and peatlands. Forest and peatland moratoriums were introduced in 2011 and made permanent in 2019. New permits to clear primary forests and peatlands were suspended, and that was complemented by peatland restoration programmes and stronger protection against wildfires. Secondary forests are still vulnerable, however, and many forests remain exposed within existing concessions.
Indonesia’s efforts are now focused on scaling up certification, strengthening enforcement and ensuring that future growth in palm oil production does not come at the expense of remaining forests, but this is a global issue, and we cannot expect Indonesia to act alone. We know that 90% of all global deforestation is driven by agricultural expansion to meet international demand for traded commodities. What we consume in this country is contributing to the destruction of forests and peatlands across the globe. The Government’s figures show that, in 2023, British consumption of everyday goods, such as palm oil, cocoa, rubber and soy, was linked to the clearing of around 29,000 hectares of forests worldwide. That is an area two and a half times the size of Manchester—we normally say the size of Wales, but perhaps Manchester is where it is at these days.
This was going to be the point at which I called out the Government for not making more progress with our legislation on forest risk commodities. I was going to say that we cannot have any credibility on the global stage in co-chairing initiatives such as the FACT—forest, agriculture and commodity trade—dialogue or the Forest and Climate Leaders’ Partnership, which we co-chair with Guyana, if we are not prepared to take steps to stamp out deforestation in our own supply chains.
During my time as Climate Minister, I spoke often to the Minister for Nature and the FCDO Minister responsible for international development, as well as to our two excellent envoys for climate and nature—Rachel Kyte and Ruth Davis—about this issue. I also pay tribute to the team in the international forest unit, which spans the Department for Energy Security and Net Zero and the FCDO, who were great to work with.
Our conversations went back and forth on the pros and cons of going down the EU route on regulation, which was focused on the concept of sustainability, or the route proposed by the previous UK Government under the Environment Act 2021, which was based on legality. There was a valid discussion to be had about which approach was best, complicated by the fact that the EU approach would apply in Northern Ireland.
What should not have been up for debate was whether we would act at all, yet some parts of Government were arguing that this represented another burden on business, which we could not impose. Businesses such as Ferrero, which I met, were calling for regulation, as were supermarkets. The opposition within Government was a straw man to argue for delay or, in fact, for dropping the proposal altogether.
As I said, I came here prepared to vent my frustration at the delay, but I was pleased to get a heads-up from the Nature Minister last night that the Government are announcing today, at London Climate Action Week, that they are moving ahead with the regulations. UK businesses that trade in internationally sourced commodities such as palm oil will be legally required to check that their supply chains are free from products linked to illegal land clearances and the destruction of the world’s rainforests.