The UK Government announced the launch of a consultation into proposed new due diligence regulations requiring companies using key deforestation-linked commodities to assess their supply chains and ensure that they are not driving illegal deforestation.
The proposed rules would apply to the same range of commodity categories as the EU’s Deforestation Regulation (EUDR), and set similar traceability and due diligence requirements, and would include in its scope companies with annual global revenues greater than £1 million that use the commodities or products derived from them.
Despite the alignment with the EUDR, however, the proposal includes key differences from the EU regulation, with the UK not yet seeking to prohibit commodities if they are not deforestation-free, although the government did note an ambition to transition to a deforestation-free standard in the future.
According to the government, the proposal comes as the UK’s consumption of goods linked to the production of internationally traded commodities is associated with approximately 29,000 hectares of deforestation worldwide annually, and 9.4 million tonnes of related carbon emissions, while businesses such as supermarkets have been calling for stronger regulation to help tackle deforestation in product supply chains.
Environment Secretary Dame Angela Eagle said:
“British consumers want to feel confident that the everyday goods they buy are not driving devastating illegal deforestation abroad, and so we are stepping in to give them that certainty.”
The new consultation includes proposals on the products and businesses that would be in scope of the regulations, requirements for an effective due diligence system, and how businesses would identify, assess and mitigate the risks of illegal deforestation.
Commodities proposed for coverage under the new regulations would include coffee, cocoa, cattle, soy, oil palm, rubber and timber, as well as products derived from these. Proposed requirements include the use of harmonized system codes for identifying the products that fall within scope of the regulations, commodity traceability with geolocation data collected as evidence of origin, and requirements for identified risks of non-compliance to be mitigated to a negligible level.
The government is also consulting on annual reporting requirements for businesses at different points in the supply chain, and on enforcement and compliance measures, including monetary penalties.
The consultation will remain open until January 17, 2027. Click here to access the consultation.
