Abena Oppong-Asare is the Labour MP for Erith and Thamesmead.
We have identified 10 Parliamentary Votes Related to Climate since 2019 in which Abena Oppong-Asare could have voted.
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We've found 29 Parliamentary debates in which Abena Oppong-Asare has spoken about climate-related matters.
Here are the relevant sections of their speeches.
09:55
I thank the hon. Member for raising such an important matter. I want to put on record my thanks to the emergency services, which have been doing a lot of work on the ground, particularly through local resilience forums and her work as a local MP. As part of the resilience review, we are looking at the issues she has raised. We are also working collaboratively across Departments to make sure that the climate change matters she has raised are looked at, because they should be looked at not only by the Cabinet Office alone, but across all Departments.
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I send my sympathy to the hon. Gentleman’s constituents who are still directly affected. Our priority is to ensure that everyone without power is reconnected as quickly as possible. Our colleagues in the Department for Energy Security and Net Zero have been receiving regular updates from the Energy Networks Association on electricity outages. Work is being done swiftly to ensure that those who are directly affected get their power back as soon as possible.
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12:49
We and our colleagues in the Department for Energy Security and Net Zero are working closely together, and as I said earlier, they are receiving updates from the Energy Networks Association. If any of the hon. Member’s constituents are directly affected, I urge them to call the network operator directly by dialling 105, or to visit the Power Cut 105 website. However, she is right that we should be exploring the impact that this could have on us in the future.
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This Tory Government effectively banned new onshore wind, which is vital for net zero, energy security and getting bills down. We now learn this could change because one fine group of Tory rebels is shouting louder than another group of Tory rebels. There is no leadership, just a Government led by their Back Benchers. Can we finally get an answer from the Government on whether they will dither and delay or join Labour in leading the way and acting on onshore wind?
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17:46
With our mission to secure the highest sustained growth in the G7, we will create good jobs and productivity growth across every part of the country. Our plan is to replace business rates to support our high streets; to implement a modern industrial strategy to help businesses succeed; to introduce start-up reforms to make Britain the best place to grow a business; and to fix the holes in the Brexit deal so that we can export more. That will be complemented by our green prosperity plan, which will create jobs across the country. We will deliver greater self-sufficiency in renewable energy by doubling onshore wind, trebling solar and quadrupling offshore wind, thus reducing people’s energy bills and guaranteeing our energy security. We will create half a million jobs in renewable energy, and an additional half a million by insulating 19 million homes over 10 years— [ Interruption. ] Members may laugh, but this is more ambitious than what this Conservative Government have been delivering for 13 years.
We will make Britain a world leader in the industries of the future and ensure that people have the skills to benefit from those opportunities. As my hon. Friend the Member for Ealing North said, the world economy is changing and Britain is not grasping the opportunities to get ahead of the game. We see developments across the US and Europe that highlight the scale of the opportunity, and we see just how much Britain might miss out if we do not grasp the nettle. I know that this issue is serious, having met businesses up and down the country, including this morning. We should be at the forefront of the race to net zero, and there are individuals and innovative businesses across the UK who are working hard to play their part, but their question is: when will the Government back them and give them the tools they need to succeed? Labour’s economic plan would do just that and put the UK at the head of the pack.
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12:06
The Confederation of British Industry says that we are investing five times less in green industries than Germany—five times less. Meanwhile, the United Nations issues warnings of a climate disaster. Where is the urgency and action from the Conservatives to decarbonise our economy and win the global race for green jobs?
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15:05
A lost decade of broken Tory promises has left much of the UK with second-rate infrastructure, which is why we support the establishment and the strengthening of the UK Infrastructure Bank and will not be opposing the Bill. The bank is much needed. It will invest in projects that support our net zero targets and contribute to local and regional economic growth. However, we will go further than the Government and harness the full potential of the bank to provide good jobs and opportunities across the country. I will speak to our amendments a little later.
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15:08
Just this week, the British electric van start-up “Arrival” announced that it is cutting 800 jobs, as it moves for extra funding and green subsidies in the US. Hon. Members will not be surprised to hear that Labour has no faith in the Government harnessing the potential of the UK Infrastructure Bank to invest in the high-skilled jobs of the future. A Labour Government will use our green prosperity fund to invest in wind, solar and nuclear energy; insulate 19 million homes; grow our economy; and get Britain winning the race to net zero. We have tabled new clause 2 and amendment 5 to ensure that the UK Infrastructure Bank can play its role in this mission. New clause 2 would require the bank to publish an annual report setting out the geographical spread and the ownership of businesses and bodies that it invests in. It would also require the bank to publish a good jobs plan for every project it invests in, to ensure that the project will improve productivity, pay, jobs and living standards.
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As we enter another year of low growth and failed Conservative government, we know there is a vital need to invest in the infrastructure of the future. We support the establishment of the UK Infrastructure Bank and have sought to improve the Bill throughout. We want to see stronger objectives and reporting for the bank, so that it can play a role in meeting our net zero targets while creating good jobs across the country and supporting the UK supply chain’s resilience, but what the bank needs most of all from the Government is an ambitious plan. Once again, the Government are on the back foot and U-turning at the last minute with amendment 1, on the bank’s reviews. It is yet another sign that Labour is the party with a plan for government—a party that will grow the economy and create jobs for the future.
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20:19
Our plan is to replace business rates to support our high streets, to implement a modern industrial strategy to help businesses to succeed, to introduce start-up reforms to make Britain the best place to grow a business, and to fix the holes in the Brexit deal so that we can export more. That will be complemented by our green prosperity plan, which will create jobs across the country. We will deliver greater self-sufficiency in renewable energy by doubling onshore wind, trebling solar and quadrupling offshore wind, thus reducing people’s energy bills and guaranteeing our energy security. We will create half a million jobs in renewable energy, and an additional half million by insulating 19 million homes over 10 years. We will make Britain a world leader in the industries of the future, and ensure that people have the skills to benefit from those opportunities.
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14:04
“The Chancellor must appoint an independent person to carry out reviews of…the effectiveness of the Bank in delivering its objectives, and…its impact in relation to climate change and regional and local economic growth (including the extent to which its investments in particular projects or types of projects have encouraged additional investment in those projects or types of project by the private sector).”
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14:22
I point out to the Minister that the levelling up missions are due to be met by 2030 and the net zero target by 2050, so a review in seven years’ time would miss the first of those targets. I would be interested to hear from the Minister how, without that review, those targets will be met.
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14:27
The Minister is being generous with his time. I appreciate that he will take this matter away, but I remind him of the bank’s core function: to help us to meet our climate change targets by 2050. Several Back Benchers have already mentioned that. I urge the Minister to review the situation, because if we are going to meet the targets, particularly the 2030 targets, seven years will be far too long. Our proposal seems reasonable, so it would be helpful if the Minister would consider it and write to me about it.
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Before I turn to clause 2, I want to say in my opening remarks that Britain has so much potential, but right now we are facing—and I want to put this on record—a Tory economic crisis that is holding us back. To get our economy growing again, we will need to see investment in infrastructure projects and create highly-skilled, well-paid jobs and tackle climate change in a modern industrial strategy, working hand in hand with businesses.
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09:39
“tackle climate change, including by supporting efforts to meet the target for 2050 set out in section 1 of the Climate Change Act 2008”
I welcome the bank’s first objective. With COP27, a climate conference that the Prime Minister had to be shamed into attending, ending just days ago, it is clear that there is still a way to go to ensure that our country’s emissions reach the targets enshrined in international law. I have to be honest: the Prime Minister does not get it. He is a fossil-fuel Prime Minister in a renewable age. His is a record of tax breaks for oil and gas giants and blocks on wind and solar power. It has left our energy bills higher and our country less secure. The UK Infrastructure Bank sets out to invest in projects that lower emissions, while the Government undermine those ambitions. It will be unsurprising to the Committee that Labour has no confidence that the Government will deliver the long-term investment that the country needs.
Labour wants to see the bank succeed. There is a global race for the jobs and industries of the future that, under the Tories, we will not win. We know that investment in green jobs, improved rail and other transport and modern infrastructure, such as broadband, have the potential for large returns and will boost our economy. We want the bank to crowd in private sector investment and help to provide confidence for investors and businesses innovating in new technologies. We also want the bank to have the freedom to invest in projects based on their ability to tackle climate change and grow our economy.
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09:43
I thank the hon. Member for South Ribble for her comments, but I do not fully agree with her, because I feel that the Government have not done enough. There has also been a cancellation of Northern Powerhouse Rail and a dismal failure to invest properly in renewable energy and to take decisions on nuclear; there has been a lack of strategy and planning. That has happened under this Tory Government in the last 12 years.
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09:49
As I have hinted, Labour Members believe that the bank’s objectives need expanding. My hon. Friend the Member for Ealing North will speak later about the bank’s climate objective and the ways in which it might achieve it. I will talk about the economic objective of the bank, which is to support regional and local economic growth. After a mini-Budget that crashed our economy and an autumn statement last week that papers over the cracks, the importance of that objective is as clear as day; but we believe in growth not for growth’s sake, but because it creates jobs and improves living standards. As a result of fairer choices, we could see our economy growing again, powered by the talent and effort of millions of working people and thousands of businesses.
Those are his words. I find it strange that when he outlined the bank’s objectives in the strategic steer, his description of the climate objective matched that in the Bill, but his description of the economic objective did not. He said that the bank’s objectives are to
“help tackle climate change, particularly meeting the government’s net zero emissions target by 2050”.
Labour has called for a strategic approach to infrastructure, and presented an industrial strategy that is based on evidence from around the world. Supported by the creation of a publicly owned Great British energy company, we would deliver self-sufficient renewable energy by doubling onshore wind, trebling solar and quadrupling offshore wind. We would create half a million jobs in renewable energy, and an additional half a million jobs by insulating 19 million homes over 10 years.
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The Government allow offshore wind but are still banning onshore wind. Ending the ban would give us a vital tool to reach net zero, make Britain a clean energy superpower, and open up new investment and growth opportunities. Keeping the onshore wind ban will make energy bills £16 billion higher between now and 2030. Why on earth are Ministers undermining green growth and cheaper energy by maintaining the self-defeating ban on onshore wind?
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00:00
Several hon. Members have mentioned the Bill’s tax break for oil and gas producers. We simply do not think it right that the Bill will hand back money to the same companies that are supposed to be contributing their fair share to tackling the cost of living crisis. As my hon. Friend the Member for Ealing North said, for every £100 that an oil and gas company invests in the North sea, it will receive £91.25 from the taxpayer. How is that right? I compare that with the £25 that companies receive for investing for renewable energy, which is set to fall even further. A third or more of the revenue from the windfall tax will be handed straight back to oil and gas producers. How can it be right that we are subsidising oil and gas projects, which companies have said would happen anyway, to this level? It is an insult to families who are struggling and it makes a mockery of our climate commitments.
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16:40
I have said before that we want to see a plastic packaging tax that is ambitious and makes a real impact in reducing plastic pollution. Just last week, the Environmental Investigation Agency released a report saying that plastic pollution is now a global emergency nearly equivalent to that of climate change itself. It has shown that the toxic pollution resulting from over-production of virgin plastics and their lifecycles is irreversible, and that it directly undermines our health, drives biodiversity loss, exacerbates climate change and risks generating large-scale harmful environmental changes. For those reasons, we cannot afford to slow down the fight against plastic pollution. We hope that the plastic packaging tax can be part of that fight, but we need reassurances from the Minister that these changes will not undermine its impact.
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16:55
Finally, although we welcome this measure and hope that it ensures that vital British industries are better protected in the future, we remain concerned about the Government’s wider failure to support British industry. Industries such as steel are of vital strategic importance for our economic prosperity and national security, but the Government’s lack of an industrial strategy means that the steel industry is lurching from crisis to crisis. We need a proper plan to decarbonise the sector, to boost business competitiveness and to use British steel in UK infrastructure projects, in order to safeguard the future of the steel industry, as Labour’s plans to buy, make and sell in Britain would do.
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17:09
I thank the Minister for her explanation of the clause, which introduces technical amendments to the changes introduced to restrict the entitlement to use rebated fuel, more commonly known as red diesel. We discussed the substance of that change in Committee on the last Finance Bill. As I said then, we support the intention behind the Government’s measure. There is a clear need to ensure that fuel duty rebates are as limited as possible in order to meet our net zero commitment.
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17:24
The transition from petrol and diesel cars to electric vehicles is critical as part of our broader transition to net zero. The Opposition have constantly raised concerns about the fact that the Government are not doing enough to support the take-up of electric vehicles, whether through supporting consumers and producers or improving the critical charging infrastructure. We continue to believe that the Government must do more in that area, but we also believe that they must begin to set out how they will deal with the fiscal consequences of the transition.
Fuel duty and VED currently raise around £35 billion for the Treasury each year. They are by far the largest revenue-raising environmental taxes. It is a truly significant amount of Government revenue, equivalent to nearly half the Education budget, but as electric vehicles become an increasing share of vehicles on the roads, that revenue will decline rapidly. One estimate shows that tax revenues from car usage could fall by around £10 billion by 2030, £20 billion by 2035, and £30 billion by 2040. The Treasury’s own net zero review stated that much of the current revenue from taxing fossil fuels was likely to be eroded during the transition to a net zero economy.
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18:04
I thank the Minister for making the point about the Prime Minister’s 10-point plan and about the Treasury’s commitment to net zero. I welcome that, but I also want to point out that the Treasury’s own net zero review said that much of the current revenue from taxing fossil fuels is
“likely to be eroded during the transition to a net zero economy”.
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18:34
I thank the Minister for her explanation of clause 82, which increases the rate of landfill tax in line with inflation. The clause is very straightforward, and we do not oppose it. However, since we are talking about a specifically environmental tax, I will take this opportunity to bring to the Minister’s attention the climate change tax policy road map published by the Chartered Institute of Taxation, which calls on the Government to set out how they plan to use the tax system to meet our net zero goal.
There are obviously several different taxes that affect the environment, some of which we have already discussed today, but there is a clear need to start thinking strategically about the role that the tax system will play in reaching our net zero goal. Of course, tax can play a number of roles in achieving net zero. It provides a source of revenue for the investment we desperately need—in renewable energy, for example—but it can also incentivise climate-friendly behaviour, whether for individuals or businesses, and I have met businesses that are quite keen to have a bit more direction on that, particularly from the Government.
It is not just me who is saying this: in a number of meetings I have had, quite a number of stakeholders have said that we need the Government to take a joined-up approach that links climate tax policy with wider policy objectives. Unfortunately, the recent Treasury net zero review said very little about this really important issue, so could the Minister set out whether the Treasury will publish a net zero strategy? Failing that, will she give us an indication of how the Treasury intends to use the tax code as part of our effort to achieve net zero?
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18:43
I thank the Minister for being extremely generous in giving way. I appreciate it. On the net zero review, a lot of businesses and stakeholders have come to me to highlight their concerns where they feel that actions do not go far enough, so I urge the Government to review that and take that on board.
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16:41
My hon. Friend the Member for Bethnal Green and Bow spoke powerfully about the Bill’s failure to boost growth, increase living standards and tackle the climate crisis. I will return to those points shortly. She also made a very important point about wasteful Government spending and the dodgy contracts that have been given out during the pandemic.
Instead, the Government’s priorities in the Budget and the Bill are to cut taxes on the banks and make domestic flights cheaper. It is beyond belief that in a Budget just days before COP26 began in Glasgow, the Chancellor chose to cut domestic air passenger duty. I am afraid that that is yet further evidence that the Treasury is not serious about our net zero commitment. Clause 6 will slash the corporation tax surcharge for banking companies from up to 8% to 3% and will raise the surcharge allowance from £25 million to £100 million. Those are the wrong priorities for an increasingly out-of-touch Government.
Labour’s priorities are different. We would use the Finance Bill to bring down energy bills with a cut in VAT on domestic energy; to tackle the climate crisis, rather than making it worse; and to fundamentally reform business rates to help businesses in every part of the country.
With the transition to net zero, the Government seem intent on leaving individuals and businesses to meet the costs on their own, without recognising the opportunity for growth and jobs. Labour knows that investment can unlock good jobs across the country, while helping households to cut bills and keep their homes warm. On business rates, Labour has put forward proposals for fundamental reform, while the Government have broken their promise to do so.
Labour’s plan for replacing business rates will introduce a system that will incentivise investment, reward businesses moving into empty premises and encourage environmental improvements. Our climate investment pledge will encourage billions in private finance, and unlike Government Ministers, we have a real plan for growth.
This is a Finance Bill that fails to rise to the challenges we face. It contains nothing to make up for the years of low growth over which this Government have presided, nothing to tackle the climate crisis or to unlock opportunities that the transition to net zero brings, and nothing to ease the growing tax burden on working people. Indeed, the Government have used this Finance Bill to cut taxes on banks rather than cutting them for working people.
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12:04
As well as deciding to cut domestic air passenger duty, which will lead to 400,000 more domestic flights a year, the Chancellor failed to invest in public transport. He is subsidising those who can already afford to take domestic flights, while putting up taxes on ordinary people. How on earth does he think that this sends the right message as the COP26 summit begins? Is not the reality that he is flying in completely the wrong direction when it comes to tackling climate change?
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18:48
I thank my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) for introducing this debate on behalf of the Petitions Committee. May I welcome the Minister to her place? This is the first time that we have faced each other and I look forward to debating with her on many issues. I also thank the hon. Member for Broadland (Jerome Mayhew), who spoke passionately about the climate crisis and made recommendations for changes. I found that really insightful.
I want to begin with some general points about the Government’s approach to net zero, the Treasury’s role and what Labour believes we should be doing differently. I will then make some specific points about carbon pricing and the emissions trading scheme.
As my hon. Friend the Member for Newcastle upon Tyne North said, the debate comes while COP26 is taking place in Glasgow, which I think has affected attendance at this debate. I want to state clearly that Labour hopes that COP26 is a success. We do not believe that the Government have done enough in the run-up, but for the sake of our planet and our future, we hope that it is a success.
A couple of weeks ago, the Government published their long-awaited net zero strategy and the accompanying Treasury review. We welcome the fact that the Government have published a detailed strategy for reaching net zero, but we are concerned that there are serious flaws in the strategy and the Government’s overall approach. The strategy does not go far enough to close the gap between the Government’s promises and delivery. First, in too many areas, there are issues: heat pumps, hydrogen, electric vehicle infrastructure, heavy industry and carbon capture and storage. We are not seeing credible plans from the Government that match the scale of ambition that is needed.
Secondly, the strategy underlines the total failure to provide the investment that is needed. The blame for that falls squarely on the Treasury and the Chancellor. The Treasury’s net zero review argued against borrowing to invest in the net zero transition because it would deviate from the polluter pays principles and would not be consistent with inter-generational fairness. That is extraordinary––an extremely worrying statement. It is precisely future generations who will benefit from the green transition, cleaner air and the jobs of the future. There is a failure to act and it would be an unfair legacy to leave this to future generations. I hope that the Minister will reconsider that statement.
It is also staggering that, in last week’s Budget, the Chancellor did not use the word “climate” once: on the single biggest issue facing the planet, the Chancellor has said nothing. When we look in detail at the Budget, we can see why, because it failed to take the decisive action needed on climate change. The Budget had no plans for economic growth, and certainly no plan to invest, at scale, in the transition to a zero carbon economy.
In contrast, the shadow Chancellor has set out Labour’s climate investment pledge: £28 billion of green capital investment each and every year for the rest of the decade. That would go towards critical sectors, such as retrofitting and insulating 90 million homes, bringing down energy bills in the process, and helping industries, such as steel, to transition and keep the good jobs that so many communities rely on.
Unlike the Government, we will not leave households and businesses to face the costs of net zero transition on their own. That has been welcomed by a number of environmental and business groups as a serious offer that meets the scale of the challenge. Business groups and others know that the cost of inaction is far greater than that of action. Just last week, the Office for Budget Responsibility said that the Government’s failure to set out a clear plan for apportioning net zero costs between businesses, households and Government is a source of long-term fiasco risk.
“The UK has now launched its own Emissions Trading System (ETS) to replace membership of the EU ETS. This will be the world’s first net zero cap and trade market, delivering a robust carbon price signal and promoting cost-effective decarbonisation by allowing businesses to cut carbon where it is cheapest to do so.”
Finally, can the Government tell us what further plans they have for carbon pricing policy? The Treasury’s net zero review leaves us with many big questions unanswered, such as how costs will be rebalanced from electricity to gas, the future of vehicle and fuel taxes, and where new sources of revenue will come from.
To conclude, we need the Treasury and the Chancellor to get serious about our net zero transition. We need to end the delays and insufficient investment. We need a plan backed by funding to help us meet our moral obligations to the planet and to future generations. Anything less is simply not good enough.
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11:57
It is only 55 days until COP26 in Glasgow and households, consumers and businesses urgently need clarity and certainty about how the costs and benefits of our transition to net zero will be shared. Labour’s approach to tackling the climate crisis would have fairness at its heart, because we know that while some are planning to build personal heated swimming pools in their homes, millions of others are struggling with energy bills. The net zero review is supposed to consider fairness. At the last Treasury questions, the Chancellor told my hon. Friend the Member for Leeds West (Rachel Reeves) that the final report would
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09:32
We support the Government’s intention behind the measure, which was first announced in the 2020 Budget. There is a clear need to ensure that fuel duty rebates are as limited as possible in order to meet our net-zero commitment. I note that several sectors retain their entitlement to use red diesel, including agriculture, rail transport and permanently moored houseboats. More recently, the Government have announced further exemptions, including generating power from non-commercial premises for amateur sports clubs and for travelling fairs and circuses.
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09:54
“short of the support needed to transform the industry and market to the net zero future to which both the Government and industry aspires.”
If UK car manufacturing is to survive the covid crisis and thrive as part of a net zero future, it needs the Government to develop a long-term strategy to support the sector. Labour urges the Government to do just that by implementing a strategy that accelerates the electrification process in a manner that provides a lifeline to the industry, stimulates investment and ensures the future of the automotive sector in the UK for the communities that rely on it. We have called on the Government to create new gigafactories by 2025, make electric vehicle ownership affordable by offering interest-free loans for those on low and middle incomes and accelerate the rollout of charging points, particularly in the areas that have lagged behind. That is the support the automotive industry needs.
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10:03
We believe that part of any aviation support must include a clear commitment to tackling climate change and leading the industry to use cleaner fuel and other cutting-edge low or zero emission technologies. Government support should be contingent on airlines retiring old and inefficient aircraft, so that they meet the new industry standards in accordance with the framework of the Paris agreement and the UK’s Climate Change Act 2008.
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10:29
If I may, I will address the clauses in reverse order. Clause 108 repeals the carbon emissions tax. As the Minister said, the Government introduced this legislation when deciding what to replace the EU emissions trading system with. We welcome the fact that the Government have decided to implement a UK emissions trading system, rather than a carbon emissions tax. The Minister and I recently debated regulations relating to the UK ETS, and I will not repeat the points I made then. However, I stress that our belief is that the UK ETS must be linked with the EU ETS in order to achieve a robust system of carbon pricing to meet our net zero target.
Clause 107 increases the landfill tax in line with inflation. We welcome this small, uncontroversial measure. We talked at considerable length about waste and recycling during our discussion of the plastic packaging tax. I repeat only the point that the Government should invest the revenue from these taxes into recycling facilities and technology. Finally, clauses 105 and 106 make a number of changes to the climate change levy over the coming years, including raising the gas levy and adjusting the climate change agreement rates. Could the Minister set out whether the Government intend to keep the climate change agreement scheme beyond its current period, and if not, what they will replace it with?
As we come to the end of the group of environmental clauses, I will make a few points about tax and our net zero commitment. In February, the National Audit Office published a report into environmental tax measures. The NAO criticised the Treasury and Her Majesty’s Revenue and Customs for failing to properly consider and evaluate the impact of these taxes on the Government’s environmental targets.
Does the Minister agree that we need information on the environmental impact of all taxes and reliefs? Will she commit to working with HMRC and other bodies to publish this information regularly? Currently, UK taxes with a positive environmental impact account for only 7% of tax revenue, and those with an explicit environmental purpose, such as the climate change levy or landfill tax, account for only 0.5%. So far, and particularly in the last Budget, we have seen a lack of vision from the Chancellor on the environment. We await the Treasury net zero review, but will the Minister set out what steps the Government will take in the short, medium and long term to ensure that our tax system plays a role in meeting our net zero commitment?
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Jobs in the steel industry are crucial to the people of Hartlepool. In June, the first instalment of the EU research fund for coal and steel will be returned to the UK. Are the Government planning to ring fence that money to support the decarbonising and modernising of the industry, given the vital importance of protecting steel jobs for the future?
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00:02
We do not oppose the regulations, but I wish to make a couple of points and ask the Minister some questions. There has been a long-running debate, not least among the Government themselves, about what should replace the EU ETS as the UK left the EU. Until relatively recently, the Government were considering three options: a stand-alone UK ETS, a linked scheme or a carbon tax. The uncertainty about carbon pricing left many UK businesses in a state of confusion last year. It is welcoming that some clarity is now being given by the Government, but it is far from ideal that they are bringing forward this detail after the UK ETS has already been in existence for over three months. Once again, businesses have been left in the lurch. I am afraid that this sort of last-minute policy making, which does not recognise the long lead-in times that businesses need to operate, is typical of the Government.
We welcome the Government’s decision to stick with the cap-and-trade principles rather than pursue a carbon tax, and we support the creation of a UK ETS. However, we believe it is critical that the UK ETS is linked with the EU ETS. I am sure the Minister agrees that the only way to address climate change is to do so in partnership with countries around the world, and that we need an international approach to reducing carbon emissions. I hope that the Government will not let political or ideological aversion to working with the EU get in the way of doing what is best for the environment.
There is also an issue of market volatility, which has the potential to be especially problematic, given the smaller size of the UK ETS versus the EU ETS. A report by the Climate Change Committee said that
A well-functioning and ambitious emissions trading system will clearly be a critical tool in our path to net zero. It is extremely important that the Government get that detail of the system right, and I hope the Minister can provide some reassurances on this today.
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10:40
We need to recover jobs, with investment and co-ordination to secure up to 400,000 additional good green jobs. We need to retrain workers—something I think we all agree on—and equip them with the skills needed to deploy the green technologies of the future. We also need to rebuild businesses, with a stronger social contract between Government and businesses to tackle the climate crisis and ecological deterioration, while promoting prosperity and employment. I urge the Minister to recommend this plan to the Chancellor and to ensure that yet more money is not thrown at projects that are unlikely ever to be completed.
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11:07
I am delighted to speak in favour of amendment 24. In just 12 months, the UK will host and hold the presidency of the 26th UN climate change conference of the parties in Glasgow, where the world will be watching. The amendment shows that the UK means business on climate change and that the Government are putting in place their promise to join forces with civil society, companies and people on the frontline of climate action ahead of COP26. It has the support of all political parties, so this is in no way party political or controversial.
Last week the Committee heard evidence from the likes of the Finance Innovation Lab and Positive Money, which support the amendment. The witnesses mentioned that it would be helpful if the FCA could refer to the Climate Change Act when preparing secondary legislation. Will the Minister therefore consider putting in capital requirements for investment firms, introducing weighting on environmental, social and governance issues such as penalising assets that have climate risks? As we know, the Bill covers legislation on packaged retail and insurance-based investment products, which will bring the £10 billion market to the EU.
It is important to know that there is a drive towards greater ESG integration across the financial sector, which investors are pushing for as well. This is an opportunity for the Bill to be shaped more robustly, and it sends a really strong message that the UK takes climate change seriously.
As we sit here today, hundreds of young people are meeting virtually at the mock COP, ensuring that net zero goals are deliverable. I am therefore surprised that elements of the amendment are not already in the Bill, given the Prime Minister’s ambitious 10-point plan for a green industrial revolution, which will not be deliverable if we do not reinforce our commitment to environmental sustainability in the Bill.
[Source]
My hon. Friend makes a good point. The UK Government constantly say on their website that they plan to go further and faster to tackle climate change. As my hon Friend has mentioned, this is a perfect opportunity to ensure that this is implemented in the Bill. I am surprised, frankly, that it is not in there. All that we are asking for is a reasonable amendment that already falls in line with the Government’s objectives. It is not going to create any extra work. We need to think about the future, particularly if we do not take action to address climate change, because we are heading for difficult times and I am really worried about the future for younger generations.
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14:23
We know that best practice corporate governance results in social and economic gains, and that is something the Government are particularly passionate about. Companies that persist in treating climate change solely as a corporate responsibility issue, rather than a business problem, are running a risky business and stand to lose out.
We have seen businesses turn the need to tackle climate change into successful business opportunities. For example, BrewDog, the world’s largest craft brewer, will remove twice as much carbon from the air as it emits every year, becoming the first carbon-neutral brewery. If companies can already shoulder this social responsibility and incorporate it into a successful business model, there is no reason not to hold all businesses to the high standards our country needs to tackle imminent social and political issues.
Climate change affects every facet of everyone’s lives. The effects of climate on companies’ operations are now so tangible and certain that the issue demands a strategy and leadership from the Government. Government intervention has worked before, and it will work again, particularly through amendment 25. Take the Equal Pay Act 1970, for example, which was mentioned previously. Business and civil society converged, and companies with over 250 employees were made to publish data on pay gender discrepancies, resulting in a win-win scenario. Excellent work is now being done to tackle this further and understand racial, gender and environmental concerns, which are intricately linked. We have to follow civil society’s work on equal pay and extend the reporting to data collections on the grounds of racial equality and environmental equity, because our actions will be futile if our evidence is not fertile.
There is no one-size-fits-all approach to climate change: each company’s approach will depend on the particular business and strategy. What we are calling for in this amendment is for the Government to support and enable employers to publish an action plan to tackle climate change and social inequalities, including initiatives to mitigate climate-related costs and risks in client value chains. Jesse Griffiths, the CEO of the Finance Lab, had some important advice for the Committee last week. He said:
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15:52
Those are the three main things. The fourth incentive point is that regulation does not solve everything, as Fran said. It is important not to try to solve all problems through this lens, but to think about all the other things that we should be doing—investing in the green future and so on—if we are to solve the climate crisis.
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This is why I am calling on the Government to work with businesses to produce a clear commitment to tackling climate change and investing to make the use of cleaner fuels and other low or zero-emission technologies viable options for businesses. If the Government truly want us to be the world leader, we must start acting like one. Direct emissions from aviation account for 2% of global greenhouse gas emissions. The threat to our planet, our country and our constituencies from climate change is ever growing.
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I thank the hon. Member for Huntingdon (Mr Djanogly) for tabling new clause 4, which will ensure proper parliamentary scrutiny of trade deals. I am pleased that he has recognised the flaws in his party’s Bill, as well as the importance of parliamentary scrutiny as we leave the EU and forge new deals with different countries. However, other areas of the current Bill are not fit for purpose, and it must be amended to offer security for workers in my constituency, to address the concerns of businesses that will be impacted, and to give the wider public confidence that the Government are serious about tackling climate change.
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14:25
There were questions earlier about how local government is rising to the challenge of the climate emergency. We, and many local authorities like Hackney, are investing in our agriculturalists and in the people who work in our parks. We have ambitious targets around planting trees and green infrastructure. We are resourcing that through our planning gain, within the existing planning system, and using policies around section 106 and the community infrastructure levy.
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15:39
To date, we have been really disadvantaged by the payment schemes that are out there. There is a 5-hectare threshold, which cuts people off from getting payments if they have less than 5 hectares. If someone has a large landholding that is used extensively for beef, they can get quite a lot of subsidy, but if they have less than 5 hectares and use it for intensive market gardening—providing the fresh fruit and veg that we need—they get nothing. That means that 85% of our membership have never received subsidies before. That puts us at a serious disadvantage, even though we as small farms provide a huge amount of public goods—we directly provide fresh food, the sorts of fresh fruit and veg that we need for healthier diets—to communities. In the transition around climate change, we need to eat more fruit and veg and less meat. That is the sort of thing that we can be in a position to do.
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