Here are the climate-related sections of speeches by MPs during the Commons debate Emission Reductions and Low Carbon Investments.
Steve Double (St Austell and Newquay) (Con)
Following the European Council’s agreement in October 2014 on a 2030 policy framework for climate change and energy, including a binding target to reduce EU greenhouse gas emissions by at least 40%, the European Commission advanced a proposal for a directive to give effect to that decision during phase IV of the ETS from 2021-30 and to make a number of other changes. Although the Government said that there were a number of detailed aspects that they wished to examine further, they had been pressing the Commission to produce proposals and therefore welcomed the document.
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16:39 The Minister for Climate Change and Industry (Mr Nick Hurd)
If we stay in the EU emissions trading scheme, it is clearly in our interest to shape the rules of the mechanism, given its impact on our economy and the economic life of our partners and competitors. However, even if we decide to leave, it makes sense to take this opportunity to play whatever role we can in shaping the rules of an important mechanism—not least to ensure that our European partners and competitors play their full part in the global efforts on climate change. Given the impact for our competitors, it must make sense for the UK, which has arguably played more of a role than any other country in shaping the emissions trading scheme, to stay at the table.
We are in until we are out, and we are playing an active role in shaping this important mechanism so that it does what it was set up to do: be a technology-neutral, market-based platform to help European economies decarbonise at the lowest possible cost, particularly in relation to our power and heavy industrial sectors. That is what we set it up for. The debate matters, and this phase of reform matters whether or not we stay in the emissions trading scheme, which is why we are playing such an active role in the negotiations.
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16:46 Mr Hurd
I have explained the decision we have taken. As with many of the climate-related issues in relation to the EU—we have participated in negotiations about the burden-sharing regulation following the Paris agreement and this scheme—we have taken a view that while we are still a member of the European Union we will participate fully in these negotiations. Whatever we do in the future in terms of our ongoing relationship, these negotiations matter for our national interest. It is entirely right that we are at the table negotiating fully.
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16:57 Mr Hurd
At the same time—and this is part of the complication, and, to be clear, I remind the Committee that I speak as the Minister for Climate Change and Industry in the Department for Business, Energy and Industrial Strategy —we have to listen to all voices. I had a round table last week with representatives of the power sector and industries which, in many cases, were arguing against each other. It is Government’s role to find a path through the various rocks on the road. I am not entirely sure that in the past the path has led to the outcome we want, but my hon. Friend will know that we must be extremely sensitive, particularly at this time, when various sectors of the economy are feeling vulnerable and uncertain, not least because of Brexit. Therefore they need as much visibility and certainty as possible. Those are just some of the compromises that the Government must think through and negotiate on behalf of the country.
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17:00 Dr Whitehead
I suggested that it is worth examining the EU ETS’s structures in respect of the countries that fully participate in it but are not EU members. There are particular regulations relating to that, but those countries participate fully in the EU ETS and are not just observers at the table. They are bound by what happens in the ETS, but they are active participants in shaping it. I hope at the very least that, in our future relationship with the EU ETS, we aim to be a full member and sit round the table, even if we are not a member of the European Union, so that the fact that the development of the EU ETS reflects our country’s priorities for the decarbonisation of our industries and for climate change is fully taken into account.
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Mr Hurd
For the record, I am neither nodding nor winking, but I thank the hon. Gentleman for a typically thoughtful and constructive response. He is probing exactly the right issues, which are the effectiveness of the cap and the right mechanisms for accelerating the withdrawal of allowances. Without effective action there, we are unlikely to get the robust price signal which he and I want, and which will drive the behaviour we want. I thank him for his constructive attitude to our approach to energy-intensive industries. It is a difficult balance to get right, but he and his colleagues know that we have done a lot over the years to try to protect our energy-intensive industries in this process while trying to ensure that they are fully incentivised to pursue energy efficiency and decarbonisation.
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