Environmental Sustainability: UK-Indonesia Collaboration

[Sir Jeremy Wright in the Chair]

I beg to move,

That this House has considered UK-Indonesia collaboration on environmental sustainability.

It is a pleasure to see you in the Chair, Sir Jeremy. I am also pleased to see the Minister for the Indo-Pacific in her place; I did want this to be an Foreign, Commonwealth and Development Office debate, even though the Department for Environment, Food and Rural Affairs was also answering questions this week, because, while my focus will be on environmental issues, this is also about our broader relationship with a country that is increasingly important to us.

Indonesia is the fourth-largest country in the world by population, behind India, China and the US. It is the largest south-east Asian economy, and the only one in the G20. It has seen steady—rather than spectacular—economic growth in recent years. While it does not currently account for a huge part of our trade, there is much potential. The UK-Indonesia economic partnership was launched earlier this year, and I gather that negotiations for a full trade deal are on the cards. So economically, it matters to us.

Indonesia is also one of the most environmentally important countries in the world. It has vast tropical rainforests, deep peatlands, iconic species such as the orangutan, the Sumatran tiger, elephants and the Komodo dragon, and amazing biodiversity in the waters and reefs around its 17,000 islands. It absorbs more carbon dioxide from the atmosphere than the UK and USA emit combined. Healthy peat stores huge quantities of carbon but, if drained, it will start to release carbon, making it contribute negatively. Forest loss also leads to major CO₂ output annually.

I thank the hon. Member for bringing forward this important debate. As she is setting out, peatlands store more carbon than all the world’s forests combined, whether that be on the Somerset levels in my constituency or in the rainforests of Borneo, and their destruction accelerates the climate crisis. Does she agree that, rather than cutting climate funding, the Government should be investing in bilateral peatland partnerships, sharing our British expertise to protect these irreplaceable global carbon stores?

I certainly think that peatlands are incredibly important. It has been one of my frustrations that we put so much emphasis on forests, and on the UK on planting trees—like a race to how many millions of trees each party can pledge to plant—whereas, as the hon. Member says, the carbon sequestration impact of peatlands is greater. We need to do much more to protect them, including, I would say, banning horticultural peat, which I know she has campaigned long and hard for.

I will come on to the question of climate finance later, but I will say that we are in a world in which public money is under severe constraints. The USA, for example, has pulled out of its commitments under COP. I want to see a lot more done to use public money, and philanthropic money, as a catalyst to leverage in far more private sector funding, including through things such as the voluntary carbon and nature markets, so that we can get that finance into protecting our forests, our peatlands and, indeed, our marine environment, which I will touch on a bit later as well.

My hon. Friend is talking about peatlands; she will know that Indonesia had a huge, deep burn of its peatlands in 2019, with 31,000 sq km of land burned. In the UK, when we had a terrible peatland fire on Saddleworth moor in 2018, just the year before, an estimated 4.5 million people suffered from the particulate matter—the smoke that went into their lungs—and the health conditions caused by that. Keeping those peatlands moist, damp and wetted in Indonesia is so important. My hon. Friend rightly talked about the population of Indonesia being so large; it is so concentrated that it can be desperately affected by that health risk.

I very much agree. We both spent the Easter recess wading through peatlands. I was going to say that we were wading up to our knees; I was wading up to my knees, but for everyone else there the peat came up to about mid-calf on them. I had very short wellies on, too—I was given children’s ones. There was an awful lot of squelching going on. Nevertheless, it was amazing to see the richness of the peatlands. We also took boats along the river. The water there is brown—apparently it is entirely drinkable—because of the peat in the water supply. I very much agree that stopping peatland fires and underground burning are as important as stopping the wildfires that destroy our forests.

I commend the hon. Lady for rightly securing this debate. She has given us some of the problems and, in her intervention, the hon. Member for Glastonbury and Somerton (Sarah Dyke) suggested some of the things that could happen to solve them.

Back home in Northern Ireland, we have a number of small and medium-sized green tech businesses. They are innovative firms, who have new ideas about how to do things. Although I am not smarter than anybody else, I think that in Northern Ireland we are capable of giving some help to others.

Might there be access for companies in Strangford to bidding pipelines or other international investments, to ensure that we can help? Obviously, it would be at a price, because that is how businesses operate; they exist to make a profit. If that is possible, perhaps the hon. Lady would be kind enough to direct me on the right way to go.

I direct the hon. Gentleman to the Minister, because she is the one with the power to put him in touch with the embassy, for example.

However, I know exactly what the hon. Gentleman is saying. I was at the desertification COP in Riyadh in December 2024, which was all about land degradation and water scarcity. I went to the UK stand, which had a number of British investors. What really struck home with me there was a small company in my constituency called LettUs Grow, which grows salad vegetables through aeroponics, so no water is required and the company has a very low carbon footprint.

It was brilliant to see out in Riyadh that countries such as Jordan and Iraq, which are managing extreme water scarcity, were aware that a company in Bristol might be of use to them in future. We need to use opportunities such as those showcases at COPs to illustrate what we do, so that our companies can find buyers in the markets that need their products the most.

If Members have not had the chance to go to it already, I will just let them know that the British Red Cross is holding an event in a dining room A or B today. Earlier, I was talking to a young lady who is doing some work in Nepal on water issues, including water shortage. There is flooding in Nepal, but it is projected that in about 20 years’ time there will perhaps be a water shortage in the country. The British Red Cross might have some innovations or ideas for Nepal. The hon. Lady and I both know the British Red Cross; I know that she knows it very well. There is an organisation that perhaps could help, too.

The hon. Member makes a very important point. At Foreign Office questions last week, I had the first question on the Order Paper, which was very ably answered by my hon. Friend the Minister. My question was about the Tibetan plateau, the environmental degradation there and what China is doing to divert water sources. Obviously, Nepal is part of that situation, as it is in the Himalayas. I think that a fifth of the world’s population depends on the Tibetan plateau for water sources.

If the hon. Gentleman seeks out the answer that the Minister gave me on that occasion, he will see that we have quite a few international initiatives that try to ensure that people get access to the water that they need.

If Indonesia is under threat environmentally, that affects us all, as I think some interventions today have already illustrated. Over recent decades, Indonesia has lost hundreds of thousands of hectares of forest each year. The main drivers of that loss are unsustainable agriculture, especially palm oil production, legal and illegal logging, mining, and rapid urbanisation.

My hon. Friend will recognise that where there is such degradation, huge amounts of biodiversity are lost. Indonesia is one of the most biodiverse countries in the world, and I am grateful to the Indonesian Government for the work that they have been focused on in this regard.

My hon. Friend will also know that forests in Indonesia are home not only to flora and fauna, but to people as well. The Indonesian Government agreed to a visit from the UN Human Rights Commissioner six years ago—that visit has not happened yet. I hope that the UK Government can keep pushing on that. Does she agree that protection for flora and fauna, which she is talking about so eloquently, has to go alongside protection for people as well?

I absolutely agree. I have just come from an event that Fairtrade is hosting in the Inter-Parliamentary Union room, at which people were talking, among other things, about the forest risk commodities legislation—I will come on to that later, because the Government have announced regulations today—and about the cost to smallholders and indigenous communities of complying with it. Of course, we want to ensure sustainability and stamp out deforestation in the supply chain, but we have to remember that there are small farmers and indigenous communities whose livelihoods depend on that.

At Easter, a number of us went to Indonesia—Borneo, in particular—and met communities doing agroforestry projects. We were looking at how we could support them. It was mostly about orangutans, which I will talk about at some length in a moment, but the people matter very much too.

This is an essential point. My hon. Friend will remember the words of Pak Ja Martin, who was in charge of the project that we went to see. He said, “You can’t talk conservation to people who are hungry.” Therefore, local indigenous people, who for centuries have protected and conserved their environment, must be involved. That was a key aspect of what we went to look at.

I could not agree more. I really appreciate all the interventions, which are a very good way of getting the debate flowing, but it is quite easy for me to lose my place. I was talking about the impact of mining, logging and urbanisation, and about the fact that forest and peatlands have been damaged by wild fires. I will come on to the marine environment later.

The UK has been at the forefront of efforts to help reverse these problems. In a joint statement in November 2024, our Prime Minister and the President of Indonesia agreed a new strategic partnership, underpinned by people, planet, prosperity and peace. It included a commitment to address illegal, unregulated and unreported fishing, conservation of ocean species, sustainable supply chains and food security.

At COP29 in Baku in 2024, we pledged £239 million to halt and reverse deforestation in forest-rich nations that act as critical carbon sinks, including Indonesia. The measures included £188 million for high-integrity forest carbon markets, £48 million for blended finance for forest programmes to attract private investment and £3 million for the United Nations framework convention on climate change to support communities to benefit from forest restoration.

We have also funded some specific Indonesia programmes, including UK Partnering for Accelerated Climate Transitions, which covers low-carbon transportation and energy efficiency. Phase 5 of a 20-year forestry programme looking at timber governance, legislation and regulation has had £12 million from us. The UK partnered with Jakarta and funded the Nature Transition Support programme for biodiversity protection in key national parks and pioneer carbon and biodiversity credit markets. The Climate and Ocean Adaptation and Sustainable Transition programme is funded by the UK’s Blue Planet fund. I have several more things on my list, but I am slightly worried that I will steal the Minister’s thunder. I suspect that she will tell us a bit about what the UK has done, so I will save them for her. As I say, good things have happened, but I will now focus on the challenges.

The hon. Member for Brent West (Barry Gardiner) said that the first thing for people is always to feed their children and look after their families, and he is absolutely right: that is critical. If we cannot get that right, nothing can happen. Palm oil is in short supply at the moment, so how can we better ensure that those who produce it get the price they want, and the rest of the world gets the supply it needs? We need to find a balance, so perhaps we need a working partnership.

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.

I was also delighted to see today that that announcement has been made. Is my hon. Friend aware that the five-year delay in passing the regulations has meant that imports totalling 54,000 hectares of tropical forests have happened? That is an area the size of Leeds.

I was going to wind my hon. Friend up by saying that I have no idea how big Leeds is—slightly bigger than Bristol, I think—but he is right that delay has consequences. I gather that the Government have announced a consultation now, but we do not want that to drag on. We must ensure that it is a genuine consultation, but that it is time-limited and that action follows as swiftly as possible.