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UK retailers stock charcoal linked to Paraguay deforestation, group says - Finance news and analysis from Global Banking & Finance Review
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UK retailers stock charcoal linked to Paraguay deforestation, group says

Published by Global Banking & Finance Review

Posted on September 10, 2026

4 min read

· Last updated: September 10, 2026

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UK Retailers Linked to Charcoal Sourced from Paraguay Deforestation

Investigation Reveals Supply Chain Links and Environmental Impact

By Iñigo Alexander and Daniela Desantis

Charcoal Supply Chain and UK Retailers

MEXICO CITY/ASUNCION, Sept 10 (Reuters) - Major British retailers, including B&Q and Waitrose, are selling barbecue charcoal from trees cleared to create more farmland in Paraguay's Gran Chaco, according to an investigation published on Thursday by advocacy group Global Witness.

The report traces charcoal sold in UK supermarkets and hardware stores to the Paraguayan forestry company Taruma. Global Witness says Taruma is the largest international supplier of British barbecue brand Big K, whose products are sold across the country.

Gran Chaco: A Critical Forest Region

The subtropical dry forest of Gran Chaco, South America's second-largest forested region after the Amazon rainforest, stretches across Paraguay, Argentina, Brazil and Bolivia. 

Retailer Responses

In response, a Waitrose spokesperson said all the charcoal it sells complies with standards set by the Forest Stewardship Council, an independent forest certification system.

B&Q did not respond to requests for comment.

Paraguay’s Trade Ambitions and Environmental Scrutiny

Paraguay has been seeking closer trade ties with Europe through the EU-Mercosur agreement, at a time of growing scrutiny of the environmental impact of imports from the South American bloc that includes Paraguay, Argentina, Brazil and Uruguay. 

Satellite Analysis and Deforestation Data

Satellite analysis cited in the report found that Taruma sources its wood from ranches that since 2012 have cleared more than 28,000 hectares (69,000 acres) of forest. 

A second supplier, Paben SA, which worked with Big K until 2023, has cleared roughly 2,700 hectares of forest in the Paraguayan Chaco since 2021, the report said. 

Supplier Responses

Paben SA did not respond to requests for comment. In a written response to Reuters, Taruma denied wrongdoing. 

"Taruma does not clear forest and holds no clearing permits, so our operations do not add to deforestation or to its effects on the regional climate. Our sustainability team follows the research on Chaco land-use change closely," Chief Executive Rahmeen Farudi said. 

Deforestation Rates and Government Policy

Researchers, including NASA scientists, have said Paraguay has one of the world's highest deforestation rates relative to forest cover, driven largely by farming and cattle ranching.  

Paraguay, a major grains and meat exporter, unveiled in July its first national forestry policy, acknowledging decades of state-driven deforestation for agriculture. The government pledged to move toward stricter environmental monitoring to meet EU trade standards. 

While Britain is no longer part of the EU, the sale of charcoal to the UK may hurt Paraguay's ambitions to sell other products to the EU under an eventual trade deal with Mercosur.

Paraguay's National Forestry Institute did not respond to requests for comment.

Deforestation, Legislation and Trade

DEFORESTATION, LEGISLATION AND TRADE

UK and EU Laws on Deforestation-linked Imports

Global Witness said that both Paraguay's permissive environmental laws and the UK's "flawed" environmental legislation allow deforestation-linked charcoal to reach the British market. 

Britain's 2021 Environment Act bans imports linked to illegal deforestation. It applies only to products sourced from illegally deforested land and does not cover charcoal products. This means Paraguayan goods produced on legally cleared land can still enter the UK.

Starting on December 30, the EU will have stricter rules banning all products linked to deforested land regardless of whether the clearing was legal.

Reactions from Authorities and Environmental Groups

The UK's Department for Environment, Food and Rural Affairs, known as Defra, did not immediately respond to a request for comment. 

Environmental groups and several EU governments, including France, Austria and Poland, have warned that extending Mercosur's agricultural exports to Europe could accelerate deforestation in ecosystems such as the Gran Chaco.

(Reporting by Iñigo Alexander in Mexico City and Daniela Desantis in Asuncion; Editing by Lucinda Elliott, David Gregorio, Rod Nickel)

Key Takeaways

  • Global Witness links Big K charcoal sold by B&Q and Waitrose to Paraguay’s Gran Chaco deforestation—Taruma cleared over 28,000 ha since 2012; Paben SA cleared ~2,700 ha since 2021 (globalwitness.org)
  • UK’s Environment Act 2021 bans only illegal‑deforestation products—charcoal from legally cleared land is still permitted; EU’s upcoming rules (EUDR) from end‑2026 will ban all deforestation‑linked products (gov.uk)
  • Paraguay unveiled its first National Forestry Policy in July 2026, aiming to improve sustainable governance and global market access—yet imports to the UK may still jeopardize its EU‑Mercosur trade ambitions (ip.gov.py)

References

Frequently Asked Questions

Which UK retailers are selling charcoal linked to Paraguayan deforestation?
Major UK retailers, including B&Q and Waitrose, are selling barbecue charcoal traced to timber from Paraguay's Gran Chaco region.
What is the Gran Chaco and why is it significant?
The Gran Chaco is South America's second-largest forested region after the Amazon, spanning Paraguay, Argentina, Brazil, and Bolivia, and is threatened by deforestation.
How does the UK's environment law affect charcoal imports?
The UK's 2021 Environment Act bans imports from illegally deforested land, but it does not cover charcoal, allowing legally cleared Paraguayan charcoal into the UK.
What are the implications for Paraguay's trade ambitions with Europe?
Deforestation concerns linked to charcoal exports may jeopardize Paraguay's ambitions to expand exports to the EU under the Mercosur agreement.
How has Paraguay responded to deforestation issues?
Paraguay introduced its first national forestry policy in July to improve environmental monitoring and address decades of deforestation for agriculture.

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