Here are the climate-related sections of speeches by MPs during the Commons debate Fourth Carbon Budget.
Full text: https://hansard.parliament.uk/Commons/2011-05-17/debates/11051737000002/FourthCarbonBudget
16:44 The Secretary of State for Energy and Climate Change (Chris Huhne)
Today I am announcing that the Government propose to set an ambitious target in law to reduce greenhouse gas emissions in line with the advice from the independent Committee on Climate Change.
By agreeing to the level proposed by the Committee on Climate Change, we are demonstrating our desire to drive the changes needed to turn the UK into a dynamic, low-carbon economy that is attractive to investors in the new and growing low-carbon sectors. We are also sending a clear signal to the international community that the UK is committed to the low-carbon economy. That will help us to reach agreement in Europe on moving to a 30% emissions reduction target and build momentum towards a legally binding global climate change deal.
The Climate Change Act 2008 sets a target to reduce greenhouse gas emissions in the UK by at least 80% from 1990 levels by 2050. It also requires Governments to set carbon budgets, which are limits on greenhouse gas emissions in the UK for consecutive five-year periods. Carbon budgets must be set at least three budget periods in advance. They are designed to put emission reductions on an appropriate and cost-effective pathway to our 2050 target. The first three carbon budgets were set in 2009, following advice from the independent Committee on Climate Change. The fourth carbon budget, which sets the limit on emissions for the five-year period from 2023 to 2027, has to be set in law by the end of June 2011.
As advised by the Committee on Climate Change, the level that we propose setting in law would mean that net emissions over the fourth carbon budget period should not exceed 1,950 million tonnes of carbon dioxide equivalent, which is a 50% reduction from 1990 levels. As required by the 2008 Act, once the fourth carbon budget has been set in law, we will publish a report setting out the policies and proposals required in the medium and long term to meet the budget, building on the strong foundation provided by our existing policies. That will take the form of the revised Government carbon plan later this year, following the publication of the interim version in March.
The Committee on Climate Change advised that we should aim to meet the budget through emissions reductions in the UK, rather than by relying on carbon trading, such as under the EU emissions trading system or the purchase of international credits from projects abroad. We will aim to reduce emissions domestically as far as is practical and affordable, but we also intend to keep our carbon trading options open, to maintain maximum flexibility and minimise costs in the medium to long term. Given the uncertainty involved in looking so far ahead, that is a pragmatic approach.
Under the Climate Change Act, emissions reductions by the UK’s industrial and power sectors are determined by the UK’s share of the EU emissions trading scheme cap. That protects the UK industrial and power sectors from exceeding EU requirements. However, if the EU ETS cap is insufficiently ambitious, disproportionate strain could be placed on sectors outside the EU ETS, such as transport. To overcome that problem, and to provide clearer signals for businesses and investors, the Government will review progress towards the EU emissions goal in early 2014. If at that point our domestic commitments place us on a different trajectory from the one agreed by our partners in the EU under the ETS, we will revise up our budget as appropriate to align it with the actual EU trajectory. In line with the coalition agreement, the Government will continue to argue for an EU move to a 30% target for 2020, and for ambitious action in the 2020s.
As part of the transition to a low-carbon economy, we need to ensure that energy-intensive industries remain competitive and that we send a clear message that the UK is open for business. Before the end of the year, we will announce a package of measures for the energy-intensive businesses whose international competitiveness is most affected by our energy and climate change policies. Rising electricity costs pose a risk to those businesses’ sectors, which are critical to our growth agenda. We will therefore take steps to reduce the impact of Government policy on the cost of electricity for those businesses, allowing them to continue to play their part in delivering our green industrial transformation. In that way, we will ensure that those sectors remain internationally competitive and send a clear message that the UK is open for business.
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16:48 Meg Hillier (Labour)
The importance of this decision cannot be overstated, and I shall not repeat what the Secretary of State clearly laid out on the rationale behind the Climate Change Act 2008, which was established under the previous Government. However, I am puzzled about the 2014 review that he announced, because it introduces new uncertainty for those investing in the country’s greener future and breaks with the five-year cycle. He has already failed to provide business certainty by delaying the green investment bank and pulling the rug from underneath the solar industry. It is therefore essential that the scope of that review is clarified so that it does not do the same.
Policy needs to be joined-up if we are to have the green industrial revolution that this country needs. We are clear that there is cross-party agreement on the carbon-reduction trajectory, but I should like to ask a few detailed questions of the Secretary of State. What will be the purpose and scope of the 2014 review, which I have already highlighted? Is there a prospect that the Government will weaken the targets that he announced today, or is he suggesting that they can only be tightened? What are the Department of Energy and Climate Change and the Department for Business, Innovation and Skills doing to support energy-intensive industries? When will he have more detail on that? He alluded to that, but we need more detail.
Does the Secretary of State agree with the Committee on Climate Change that we need to be more explicit in our support for new nuclear and onshore wind? Finally, what plans do the Government have for introducing road pricing, as suggested by the Committee? Has he consulted the Transport Secretary? Is that a policy for the next Parliament, or is there an urgent need to legislate for vehicle use now?
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16:55 Chris Huhne
Despite the Opposition’s warm words, in 13 years of a Labour Government not a single piece of turf was turned in order to install a single new nuclear reactor, yet work has already begun at Hinkley Point. The sense of urgency in dealing with the climate change challenge displayed by this Government is of an entirely different order of magnitude. On clean coal and gas, about which the hon. Member for Bolsover (Mr Skinner) and some of his friends are particularly concerned, the Government, in an extremely tough and difficult expenditure round in which we have to clear up the mess inherited from the Labour party, found £1 billion to set aside for the first commercial-scale carbon capture and storage project. In 13 years under Labour, no money was put aside and no planning was done for low-carbon growth.
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16:58 Chris Huhne
I very much agree with the hon. Gentleman, the Chairman of the Energy and Climate Change Committee, who has made a powerful case in the past for a low-carbon economy. This is no longer a set of cottage industries. We are talking about a sector of the British economy that employs 910,000 people, which is growing extremely rapidly in a major world market, and which offers us enormous opportunities. I have no doubt that to those who move first and furthest will come the great advantages of the low-carbon economy. On the point about purchasing credits, having in a misspent youth practised economic forecasting and knowing about the difficulties of getting forecasts right one or two years in advance, I think it makes pragmatic sense to preserve a little flexibility when looking ahead as far as 2023-27.
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17:03 Malcolm Wicks (Croydon North) (Lab)
The climate change targets that the last Parliament legislated for were arguably the most ambitious thing that any Parliament in this country has ever legislated for. I certainly welcome the broad thrust of the coalition Government’s proposals today, even if the Secretary of State failed to understand that turning over turf during his term of office depended on four years of preparatory work, which I am happy to discuss with him.
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Chris Huhne
The right hon. Gentleman’s question is an interesting one, as I would expect, given his background as an Energy Minister and his expertise in this field. Wherever one goes in the world, people will say that everyone else is working much less hard on the low-carbon agenda than they are. That is the prevailing myth. I was recently speaking to my counterpart in Australia, who said that the entire debate there is about how only the Australians are dealing with climate change and no one else is. The reality is that enormous progress is being made on this agenda right across the board, including in India and China. The five-year plan that the Chinese have just established is enormously ambitious. Six of the largest renewables companies in the world are now Chinese. The Chinese are making an enormous commitment to offshore wind, as well as in more conventional sectors such as nuclear. They are now the dominant player in solar photovoltaics, having taken the lead from Germany, so I simply do not accept that this is a world where we are moving ahead of other people. We are moving ahead together, but it will be the people who move furthest and fastest who get the best prizes.
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Dr Alan Whitehead (Southampton, Test) (Lab)
I congratulate the right hon. Gentleman on coming out on the right side of the scrap in Cabinet over the fourth carbon budget. Does he accept, however, that according to the Climate Change Act 2008, a fourth carbon budget with a review in 2014 will not really be a fourth carbon budget in law? Can he confirm that a review in 2014 would not change the law as far as the fourth carbon budget was concerned? If that is the case, why should there be a review?
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17:10 Chris Huhne
The key point of having a review is to make sure that in the tradeable sector, where we have industries exposed to international competition—and we want them to thrive—industries are not exposed to unique costs that will not be imposed on the competition in the EU. That is what the review is designed to achieve. Under the Act, any review will have to be preceded by a recommendation from the Climate Change Commission—and we have absolutely no plans to change that, so it will depend on recommendations from that commission.
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17:11 Christopher Pincher (Tamworth) (Con)
I welcome my right hon. Friend’s ambitious announcement. I remind him that in evidence to the Energy and Climate Change Select Committee, Lord Turner said that our carbon targets might lead to an appreciable increase in domestic energy prices. I urge the Secretary of State to roll out the green deal with all speed to ensure that any domestic energy price increase is offset by the energy saving elements of that green deal.
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17:13 Mr Michael Meacher (Oldham West and Royton) (Lab)
Does the Secretary of State accept that purchasing carbon offsets abroad as a means of meeting carbon emission reduction targets in the UK is deeply flawed on grounds of additionality, leakage and uncertain duration and that, in any case, they do not achieve the ostensible objective of decarbonising Britain? What precise proportion of the 29% cut in carbon emissions planned between now and 2027 do the Government intend or expect to be achieved via carbon offsets?
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Simon Danczuk (Rochdale) (Lab)
The proposals on climate change are extremely important. Can the Secretary of State assure the House that they will receive his full attention over the coming days and weeks?
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Chris Huhne
I do. I noted the criticism from Opposition Members, and I refer them to a bit of socialist history. The attempt to build socialism in one country under Joe Stalin was not an unalloyed success, and, similarly, an attempt to build climate change policies in one country would not be an unalloyed success. We must keep a weather eye on the competitiveness of our industries and on what is going on overseas, but we have set a very clear direction. We will be ambitious in our climate change goals, and I am determined for us to drive the growth of these new opportunities and industries as a result.
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17:21 Mark Durkan (Foyle) (SDLP)
The Secretary of State has explained why he is resiling from the Committee on Climate Change advice to forgo the carbon trading option, but is he proposing to sidestep any of its other recommendations? Also, do any of his concerns for ensuring the competitiveness of energy-intensive industries and for signalling certainty to investors extend to feeling regret about the adverse impact of the Chancellor’s raid on the CRC scheme?
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17:27 Chris Huhne
We are keen to engage community groups; the ministerial team does a lot of visits and makes sure that we are talking to members of civil society and, of course, to non-governmental organisations, which have an important influence on community groups. This is also particularly crucial in an area that I know can be controversial, even among those on the Government Benches: proposals for onshore wind. I think that that is a beautiful form of renewable energy, although I know that that opinion is not always shared across the House. It is an important part of our strategy to get community groups involved and owning these policies, and some interesting proposals have been made. For example, the biggest proposal for onshore wind is the Viking proposal for Shetland and it is half-owned by the community group that supports Shetlanders. So I am very much in favour of the sort of engagement that my hon. Friend has rightly suggested.
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17:29 Chris Huhne
The hon. Lady raises an important issue that people periodically talk about, which is that no matter how well we do in the UK, we are not making a difference to the world as a whole if we are merely outsourcing production of carbon-intensive goods to economies such as China. However, I would make two points in response, the first of which is that we should not underestimate the progress being made in economies such as India and China to grapple with and move very fast on this agenda. The Department and the Government are working with the low-carbon pilot areas in China and the developments are truly impressive, so I urge her to look at them. We are aware of this issue, but I do not think that any time soon we will be able to move globally towards a situation where we are taking into account the embedded carbon emissions in trade. The reality is that most of the nearly 200 countries that are members of the United Nations are fiercely protective of their own territorial sovereignty, so it seems likely that our major efforts to tackle climate change will be based on states’ control of their own territorial integrity.
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Jo Swinson (East Dunbartonshire) (LD)
I congratulate the Secretary of State on accepting the ambitious fourth carbon budget recommended by the Committee on Climate Change. His statement highlights how vital it is to increase the EU carbon emission reduction target from 20% to 30% by 2020, so how will the Government redouble their efforts to secure that agreement and, in particular, to get a significant tightening of the EU emissions trading scheme cap?
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17:33 Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
The Secretary of State has made a number of points this afternoon, but one point that came out of the findings and recommendations of the Committee on Climate Change was that international aviation and shipping should be included in future carbon budgets. Does he agree with that recommendation?
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