Here are the climate-related sections of speeches by MPs during the Commons debate Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023.
14:30 Graham Stuart (Conservative)
That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023.
The UK emissions trading scheme—the UK ETS— was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020 as a UK-wide greenhouse gas emissions trading scheme to encourage cost-effective emissions reductions, contributing to the UK’s emissions reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments—we are all in this together. Our aim is to be predictable and responsible guardians of the scheme and its markets. In so doing, we will ensure that the scheme remains a cornerstone of our ambitious climate policy.
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14:37 Graham Stuart (Conservative)
A consultation was not carried out for the CCS free allocation amendment as that is a clarification of existing policy intention and not a change to the policy.
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14:50 Stella Creasy (Labour)
More fundamentally, I wish to speak up for British steel, which will be directly impacted by this legislation; indeed, it has called for the Government to answer questions arising from the SI. I hope that I speak for all of us in the room in saying that we recognise the value to our national security and our climate change objectives of having a national steel industry. I understand the industry’s concerns about this legislation and the fact that, without support, the free allowances will not lead to the sustainability of the British steel industry. I hoped that we might hear some answers today, but the Minister did not mention the word “steel”. I am sure he will wish to correct that in responding to the debate. The industry thinks it will take nine years to decarbonise British steel at this rate; without support, the 2026 deadline could lead to the end of British steel and all the concerns that might arise from that.
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14:54 Graham Stuart (Conservative)
On the overall position of the UK carbon market, the UK ETS is of course a market mechanism. The price of carbon allowances in the UK ETS is set by the market. In line with the net zero cap we announced in July, the supply of emissions allowances entering the market will fall significantly every year from 2024. We are committed to continuing to deliver on these changes, as we have shown, by legislating to amend the supply of allowances over the coming years and publishing an auction calendar.
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14:56 Graham Stuart (Conservative)
The UK ETS is a cornerstone of UK climate policy. It is worth noting, to look momentarily at the bigger picture, that since 1990, the UK has cut its emissions by more than any other major economy on the planet. The Government put net zero into law for the first time, and the former Conservative leader, now the Foreign Secretary, was the first leader of a major party to call for a climate Act, which was introduced in 2008. I was proud to serve on the Joint Committee on the Draft Climate Change Bill under the excellent chairmanship of Lord Puttnam.
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14:58 Graham Stuart (Conservative)
Yes. The SI sets a cap on emissions in the sectors covered—currently a quarter of the UK’s emissions. In doing that, it guarantees that those sectors will reduce their emissions in line with our world-leading net zero target,
In July, the UK Government and the devolved Governments, as the joint UK ETS Authority, set out a comprehensive package of reforms to the scheme. It increased the ambition of the UK ETS and set it on a path to net zero. As that package set out, a wide range of changes is required to ensure that the UK ETS remains a key part of the UK’s approach to achieving net zero.
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