I wonder how this will be enforced. Can't public bodies simply not buy goods from the illegal settlements or fossil fuel companies without stating their true reasons?
There's no distinction between making the decision to buy from the settlements, and making the decision not to. Both are ethical actions and both have consequences. Given that the EU and indeed Britain label products from the Israeli settlements, implicit in this is the recognition that there is something wrong with buying from these settlements.
"To learn who rules over you, simply find out who you are not allowed to criticize."
This policy is going to be announced in Israel, so it's obviously about Israel and suppressing criticism of Israel, regardless of what this scheming government claims. Well, this will simply make individuals more determined to boycott goods from Israel's illegal settlements.