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The Minister of State, Foreign and Commonwealth Office (Mr Hugo Swire)
It is a great pleasure, Mr Sheridan, to serve under your chairmanship this afternoon. It is arctic out there in the real world, so it is topical to be discussing this matter. I thank the Environmental Audit Committee for its timely report on the Arctic, and all hon. Members who have taken part in this debate on an important, complex and emotive issue. I am particularly grateful to my hon. Friend the Member for Stroud (Neil Carmichael) for orientating us to the part of the world in question by reminding us of the respective localities of polar bears and penguins.
I want to stress up front that the Government are absolutely committed to playing a constructive role in the Arctic. There is much debate, both here in Parliament and out in the wider world, on exactly what that role should be, and I want to take this opportunity to outline the Government’s views and approach before addressing the specific points raised by hon. Members.
The Arctic region has long been of strategic interest to the United Kingdom. The speed of climate change in the Arctic and the associated impacts and opportunities mean that developments in the region will increasingly affect key UK policy interests. As the hon. Member for Bristol East (Kerry McCarthy) said, those interests include energy security, shipping, fishing, trade, use of resources, and the environment, and many were touched on during the debate. The Government are committed to protecting and promoting them.
The Government’s approach to the Arctic, as outlined in our response to the Committee’s report, which is effectively what we are discussing, is based on respect: respect for the sovereign rights of Arctic states over their territory; respect for the rights and interests of the indigenous peoples who live in the Arctic; and respect for the environment. Sometimes it is difficult to balance all those, and some may say that we have it wrong, either generally or on specific policies. Adopting an approach to the Arctic that does not respect all three elements would be counter-productive to our influence and ultimately our interests.
Some criticism of the Government’s response has centred on lack of leadership or ambition. We must recognise that the UK is not an Arctic state or a full member of the Arctic Council, and we believe that, on the whole, leadership for the Arctic rests with the Arctic states. They are the countries with the most direct interest across the piece and the most experience of living, working and operating in the Arctic. It is they, first and foremost, whom we look to and rely on to ensure a peaceful, well-governed Arctic with a sustainable future.
The hon. Member for Bristol East asked about our vision for the Arctic, and what leadership we will provide. It is wrong to say that the UK should not, and does not show leadership on issues affecting the Arctic. No one can be in any doubt that climate change is the greatest threat facing the Arctic, and the consequences of climate change are driving the changes we are seeing there. The UK is a global leader on pressing for reduced emissions of greenhouse gases and understanding their impact. We are, therefore, leading the fight on tackling the underlying cause of the threats facing the Arctic.
Climate change is not the only issue. The UK can and does play a leading role in a wide range of international policies that could affect the Arctic. For example, we are pressing for global agreement on an implementing mechanism for designated marine protected areas in the high seas, and for reduced emissions from global shipping. The Government’s response to the Committee’s report outlines those in more detail.
It is wrong to say that we do not lead and that we have no role to play. A second central tenet of the Government’s approach to the Arctic is co-operation. The UK’s aim has always been to work closely and co-operatively with the Arctic states and others on the issues facing the Arctic. The Government are keen for the UK to continue to engage bilaterally and multilaterally with all Arctic states, supporting, politically and through the provision of science, policies that will help ensure a successful and sustainable future for the Arctic.
A point that was raised many times in the evidence to the Committee was the central role that science can play in influencing the policy of the Arctic states and the Arctic Council. The Government’s response to the Committee’s report makes it clear that the Government will continue to encourage, through the Natural Environment Research Council’s Arctic office and more broadly, scientific engagement with the work of the Arctic Council to this end.
The hon. Member for Stoke-on-Trent North (Joan Walley), who chairs the Select Committee, was publicly lauded by my hon. Friend the Member for Richmond Park (Zac Goldsmith) and clearly does a good job. She raised some important points, and I will address them in turn. The first point she wanted me to respond to was the International Energy Agency’s figures. Under the new policy scenario in its 2012 “World Energy Outlook” report, the world will consume 99.7 million barrels of oil a day in 2035, compared with 87.4 million barrels a day in 2011. Over the same period, production from existing sources of crude oil will have declined from around 65 million barrels a day to 26 million barrels a day, so new sources of oil will be needed to make up the difference. While seeking to limit emissions, we have to accept that major economic developments in parts of the world will result in greater energy use in the medium term. For example, while oil consumption is expected to fall significantly in the OECD, it will rise elsewhere, notably in India and China. What we can realistically seek to achieve is to limit the growth of emissions through international agreements, notably the United Nations framework convention on climate change, and by encouraging the increasing use of low-carbon technologies.
My hon. Friend the Member for Stroud—I pay tribute to his work on the Antarctic Bill; I was privileged to take part in the proceedings—made valuable points about our legitimate jurisdiction in the Antarctic, in contrast to our lack of jurisdiction in the Arctic. However, he is right that we can, by using examples of best practice and leadership, show those who have a responsibility and a role in the Arctic what we are seeking to achieve in the Antarctic. That is a valuable lesson. I would say that, although the Committee’s response is critical on the whole of the Government’s response, others are not. Denmark’s Arctic ambassador, for example, thought it struck a very reasonable tone, balancing concerns against the plain facts of our status as an observer to the Council and a non-Arctic state.
My hon. Friend also asked me about the Arctic Council. The UK recognises the Arctic Council as the pre-eminent regional forum, which provides an opportunity to consider many key Arctic issues, especially those relating to the environment and sustainable development. We believe that the Arctic Council could benefit from greater participation and exchange of expertise from the UK and other state observers.
My hon. Friend also asked about science. I want to reinforce the points made by many this afternoon and particularly when evidence was given to the Committee, that science is an excellent lever for influencing the development of Arctic policies. Promoting UK science in forums such as the Arctic Council has been central to our strategy for influencing Arctic decision making and will continue to be so. That, again, reinforces my point about best practice in terms of what we are seeking to do in the Antarctic.
The hon. Member for Edinburgh North and Leith (Mark Lazarowicz) asked about the Svalbard—or Spitsbergen—treaty. Just to remind hon. Members, the 1920 treaty of Paris set out the conditions under which Norwegian sovereignty over Svalbard was recognised. Those include non-discrimination between the parties to the treaty and a limit on the royalties chargeable on minerals extracted. The UK is a party to that treaty. No country disputes Norwegian sovereignty in the Svalbard archipelago, although there are different interpretations of the treaty’s applicability to maritime zones surrounding Svalbard. We consider that the treaty applies to the maritime zones generated by Svalbard, but Norway disagrees. However, we support the careful stewardship that Norway exercises in protecting the Svalbard environment. There is no hydrocarbon activity currently taking place on the Svalbard continental shelf.
The hon. Gentleman also asked whether the UK supports the negotiation of an Arctic treaty. That would depend on the scope and objectives of any proposed treaty. Comparisons are sometimes made with the Antarctic treaty, but that treaty deals with matters of territorial sovereignty, which are not relevant in the Arctic. The United Nations convention on the law of the sea provides the framework for the international governance of the areas of the Arctic ocean beyond national jurisdiction. The Arctic states have recently, through the Arctic Council, agreed a legally binding framework on search and rescue and are negotiating on an oil spill response agreement. We believe that the international governance arrangements in the Arctic are sound, and it is the rules and policies underneath those that require greatest attention.
My hon. Friend the Member for Richmond Park asked about—
Mark Lazarowicz
I am sorry for the delay; I was trying to find the appropriate section of the report. I want to be absolutely clear: on the Svalbard treaty, is it the UK’s position that we regard it as applying to the entire exclusive economic zone on Svalbard? I am surprised if that is the case.
Mr Swire
I repeat the salient point that I think the hon. Gentleman is trying to get at: we consider that the treaty applies to the maritime zones generated by Svalbard, but Norway disagrees.
My hon. Friend the Member for Richmond Park asked about oil spill falls. Of course, we all have sympathy; the idea of an oil spillage occurring in that part of the world—I think it has happened there—is absolutely abhorrent and has terrifying consequences for the environment. However, determining how to ensure that those liable in the case of oil spills meet their liabilities, as he will well know, is a matter for the relevant countries. It is a matter for those jurisdictions to determine both the scope of such liabilities and the levels of compensation and penalties payable in the event of a spill.
Zac Goldsmith
I recognise the limits of our international clout in respect of that issue, but it is nevertheless possible and reasonable to imagine the British Government adopting as their formal position the view that there should be, preferably, unlimited liability in the event of an accident. I am not suggesting that we can push a button and make it happen, but it could certainly be our position, formally and on the record.
Mr Swire
I do not think my hon. Friend would be arguing for that, seeing as the Government are limited in their jurisdiction in the area, and seeing as they do not own any oil companies exploring in the area. For the British Government to make a unilateral proclamation about unlimited liability in that area would be seen by some as somewhat condescending and interfering. However, clearly, environmental protection should be at the forefront. That is why a lot of British companies—in terms of deep sea drilling, and the kind of measures and safety measures that we have learnt over years in the North sea—could have a very real application to safe drilling in that sensitive part of the world.
The hon. Member for Bristol East asked a technical question about the threat of methane released from permafrost. Continued warming of Arctic land masses will lead to a large-scale melting of permafrost, which may well release large quantities of methane, a potent greenhouse gas. Although the magnitude of any release is uncertain, it has potential to significantly accelerate global warming. While the amount of methane currently being released is small compared with other sources, that contained below permafrost and land ice is thought to be huge. The Arctic Council’s Arctic Monitoring and Assessment Programme is looking at methane release in the Arctic as part of its Task Force on Short-Lived Climate Forcers.
The hon. Lady also asked how serious black carbon is in the Arctic. It is definitely an issue for consideration. The United Nations Environment Programme report into black carbon produced last year concluded that emissions of black carbon particles into the atmosphere can have a significant impact on human health and both direct and indirect climate impacts. For example, some emissions can be transported long distances and deposited as soot on Arctic ice or snow, which decreases surface reflectivity—albedo—and increases ice melt because of the additional warming effect. The Arctic Council’s AMAP produced a report in November 2011 on the effects of black carbon and has a task force that is following up that work. It is currently drawing up its work programme.
The hon. Lady also asked about the report in The Guardian, the issue of higher standards for drilling in the Arctic, and the allegation in that report that we are in some way undermining the EU’s attempts to apply them in our own backyard. All I will say is that she should not believe everything she reads in the papers, let alone The Guardian. However, negotiations are continuing with the EU on the proposed directive to regulate offshore oil and gas activities, and the UK is working to ensure that the highest levels of safety and environmental protection are upheld in an effective manner. It is worth saying that the UK already has a robust regime in place to regulate offshore oil and gas. Environmental safety is paramount, and offshore operations are only permitted in the UK where there is a thorough and comprehensive oil spill response plan in place.
The hon. Lady asked what more we are doing to move forward marine protection issues at the United Nations. I will write to her on that point and provide an update. She also asked about the Arctic policy framework. We will produce the Arctic policy framework in the summer of 2013. That will be a dynamic process involving interested stakeholders, and it will outline the Government’s policy and approach in more detail.
The hon. Lady also asked how the UK’s influence in the Arctic Council would be affected if observer status is granted to applicant countries. We do not believe that the UK’s influence will be impacted. Most of our influence on the council comes through scientific engagement with the working groups. We will continue to provide that, regardless of the status of other countries with respect to the Arctic Council.
Kerry McCarthy
The Minister may be about to answer this question, but I specifically asked about the UK’s attitude towards China being given observer status and whether we would welcome that.
Mr Swire
The hon. Lady is right in saying that I am about to come to that. The Arctic Council has articulated a range of criteria against which state observers will be assessed. The UK considers that it fully meets all those criteria and has demonstrated its commitment to engaging with the Arctic Council since it was formed in 1996. The UK understands the Arctic Council’s desire to set such criteria, but encourages the Arctic Council to support applicant states to meet the requirements. In the view of the UK, there are likely to be benefits for the Arctic states in engaging constructively with all states that express an interest in Arctic affairs. That said, it is obviously a matter for the individual applicant countries and the members of the Arctic council as to whether they will achieve permanent observer status next year.
I think that I have now dealt with all the questions other than the one about which I shall write to the hon. Lady. The debate has been interesting and informative. I again thank the Select Committee for its report. I hope that, in the light of what I have said this afternoon, it will look again at the Government’s response and recognise the limits of what we can do, as opposed to what we are doing in the Antarctic. I fully agree that we are doing many good things in the Antarctic that have read-across to what other states are doing in the Arctic. Yet again, Britain is leading the way.