UK Unveils Deforestation Due Diligence Rules for Commodity Supply Chains

Key Takeaways

• Mandatory Due Diligence Proposed: Businesses importing commodities such as cocoa, soy, palm oil and rubber would be required to verify their supply chains are not linked to illegal deforestation.
• Alignment With EU Rules: The government intends to align core commodity coverage and information requirements with the EU's deforestation regulation to reduce compliance complexity.
• Retail Industry Support: Major retailers have backed stronger regulation, arguing that voluntary commitments alone are insufficient to address global deforestation risks.
• Long-Term Regulatory Ambition: The UK ultimately aims to move beyond illegal deforestation and establish a broader deforestation-free standard for covered products.

Deep Dive

The British government is moving forward with plans to require companies importing commodities such as cocoa, palm oil, soy and rubber to demonstrate that their supply chains are not contributing to illegal deforestation, marking one of the most significant expansions of the country's environmental due diligence regime since the passage of the Environment Act.

The announcement, made during London Climate Action Week, shows the government's intention to introduce new rules in Great Britain using powers contained within the Environment Act while also strengthening the UK's existing timber regulations. The measures would apply to businesses trading in commodities commonly found in everyday consumer products, including chocolate, cooking oils, cosmetics and personal care items.

Officials said the proposal is designed to address the role that international commodity supply chains play in forest loss around the world. According to government figures, approximately 90% of global deforestation is driven by agricultural expansion, much of it associated with internationally traded commodities.

The Department for Environment, Food and Rural Affairs said UK consumption of these goods was linked to roughly 29,000 hectares of deforestation globally in 2023, an area equivalent to about one and a half times the size of Manchester. That activity was associated with an estimated 9.4 million tonnes of carbon emissions.

Businesses would be required to conduct due diligence on their supply chains to identify and reduce the risk that imported products are connected to illegal deforestation or land clearing. The government plans to launch a formal consultation later this year involving businesses, civil society organizations and international partners to determine the details of the regime.

Nature Minister Mary Creagh said tackling deforestation remains one of the most effective ways to address climate change while protecting vulnerable ecosystems and wildlife.

"Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity," Creagh said.

The move follows growing pressure from environmental organizations as well as support from major retailers that have argued voluntary corporate commitments alone are insufficient to address deforestation risks across global supply chains. British Retail Consortium Director of Food & Sustainability Andrew Opie welcomed the announcement, saying retailers had long advocated for a UK regulatory framework while emphasizing the need for alignment with European requirements to avoid unnecessary costs and complexity.

The issue has taken on added urgency because the European Union's Regulation on Deforestation-Free Products will begin applying in Northern Ireland in phases starting December 30, 2026. Under arrangements established through the Windsor Framework, Northern Ireland will continue to maintain access to both the UK internal market and the EU single market.

To minimize compliance burdens and preserve the integrity of the UK internal market, the government said it intends to consult on a Great Britain regime that covers the same core commodities and information requirements as the rules taking effect in Northern Ireland. Officials said this approach would reduce administrative duplication while helping British exporters meet EU traceability and data requirements.

Environmental groups argued the announcement addresses a longstanding regulatory gap between Northern Ireland and the rest of the UK. World Wide Fund for Nature Director of Advocacy Gavin Crowden said the government had previously identified tropical forest collapse in regions such as the Amazon and Indonesia as a national security concern because of its implications for climate stability, food systems and biodiversity.

The government said its longer-term objective is to move beyond preventing illegal deforestation and eventually establish a broader deforestation-free standard requiring covered products to be produced without contributing to any deforestation. Officials described the proposal as part of wider efforts to decouple global supply chains from forest loss and land conversion.

The initiative forms part of the UK's commitment under the Glasgow Leaders' Declaration on Forests and Land Use, agreed during COP26, to halt and reverse forest loss by 2030. It also supports the government's broader 2035 International Climate, Nature & Energy Strategic Framework. If implemented, the new rules would expand transparency and traceability requirements across agricultural commodity and timber supply chains while further aligning UK environmental trade standards with those of the European Union.

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