UK to tighten deforestation rules for coffee, cocoa, soybean and palm oil supply chains

Source:  ESG United Kingdom
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The United Kingdom is preparing new regulations aimed at reducing the impact of consumer goods on illegal deforestation worldwide. The measures will target key commodities linked to forest loss risks, including soy, palm oil, cocoa, and rubber.

According to government estimates, UK consumption of these products in 2023 was associated with around 29,000 hectares of global deforestation. The new rules will require companies to demonstrate that their supply chains are not connected to illegal forest clearance.

Businesses operating in Great Britain will be required to carry out stricter due diligence on sourcing and improve traceability across agricultural supply chains. The government plans to use powers under the Environment Act and strengthen existing timber regulations.

London also intends to partially align its new framework with the EU’s deforestation-free supply chain rules, which are being phased in in Northern Ireland. This is expected to reduce administrative burdens for companies and support smoother trade with the European Union.

Officials stressed that voluntary measures are no longer sufficient to manage deforestation risks in global commodity supply chains. The new approach is designed to improve transparency and reduce the UK’s contribution to tropical deforestation, which is also linked to greenhouse gas emissions.

While businesses have generally welcomed the move, they have urged the government to ensure alignment with EU standards to avoid additional costs and regulatory complexity. A formal consultation with industry and international partners is expected later this year.

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