The Minister for Climate Change and Industry (Mr Nick Hurd)
As you well know, Madam Deputy Speaker, Opposition days are traditionally set up for division. When I saw today’s motion, I hoped that today was going to be different, but 28 minutes later I was really disappointed by the tone the hon. Member for Brent North (Barry Gardiner) set for this debate. That is because, as I hope he knows, I have a deep respect for him personally, and it is widely acknowledged that he has a deep and serious knowledge of this issue and agenda, and, to date, has had a serious commitment to it. His speech, however, was very disappointing. As I said, Opposition days are set up for division. Sometimes the divisions are real and sometimes they are exaggerated, but rarely have I been asked to open a debate where the division has been so entirely manufactured, stretched and distorted, in a way that is really unhelpful and matters. That is at the heart of my disappointment.
Today, we had, and I hope still have, an opportunity to have a substantive and timely debate on an issue of enormous importance. We can take stock, at a pivotal time, of where we are in, what is now, at last, a global effort to manage the risk of dangerous, expensive and possibly extreme climate instability. Arguably—and I have argued this—this is the most complex and important long-term issue that our generation of politicians have to grapple with. It is an issue on which there has been impressive and very important cross-party support over successive Governments, not least when the groundbreaking and enormously influential Climate Change Act, on whose Bill Committee I remain proud to have served, was passed by a majority of 463. Without that cross-party support, British Governments would not have been able to show the leadership we have shown, under different political colours, which has, in turn, enabled us to have the global influence that is at the heart of the hon. Gentleman’s motion.
The motion encourages the Government to get on and do what we have already said we will do, which has been confirmed again by the Prime Minister today: ratify the Paris treaty as soon as possible. I therefore urge the hon. Gentleman, who is widely respected for his knowledge and commitment to this agenda, to resist what I think I heard, which is an urge to play party games, particularly against a backdrop of a Labour leadership election. That is extremely unhelpful and out of character for him.
Out of respect for the hon. Gentleman, I do, however, want to address his motion and, in doing so, seek to reassure the House and many outside, whom he rightly says are deeply concerned about this issue, that this new Department, led by a highly respected former shadow Secretary of State for Energy and Climate Change, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who is sitting alongside me on the Front Bench this afternoon, and the new Government remain very committed to Britain playing a full part in the global effort to improve our climate security. There is no backsliding here; we are genuinely committed to this. Why? It is not only because we see climate change as one of the biggest long-term risks to our future security and prosperity—a risk that has to be actively managed—but because we believe that long-term, cost-effective climate action is an opportunity to promote growth, good jobs and improvements to our health, not least through the right to enjoy cleaner air in our cities.
We are committed to ratifying the pivotal Paris agreement, and we see it, as I said last night, as a start. We are committed to the UK Climate Change Act 2008. Arguably, there is no more important proof of that in the short term than the very early unflinching decision to put into law the fifth carbon budget. I pay tribute to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who, just hours after he was lured from the charms of chairing the thoroughly agreeable Select Committee to enter Government, was on his feet facing the Opposition Front-Bench team putting the fifth carbon budget into law. Anyone who knows anything about this subject will understand that that is an extremely important and challenging commitment on behalf of the British people. Therefore, there is no more important proof than that the new Department was prepared to make such a commitment at such an early stage in its life.
Gloria De Piero (Ashfield) (Lab)
The hon. Gentleman mentioned the importance of green jobs. I represent Ashfield, a former coalfield community, where the pits are now closed and the replacement jobs are not as secure or as well paid. What are the Government doing to get those green jobs to areas such as mine?
Mr Hurd
The hon. Lady addresses a very important and substantive issue, which lies at the heart of this Government’s commitment to forge and commit and put on the tin of this new Department the need for an industrial strategy. As the Prime Minister said, that strategy needs to work for everyone, to create a broader sense of opportunity across the country and to take a very hard look at industries, sectors and places and think about future competitiveness and resilience, It needs to ask such questions as: “Where are the opportunities going to come from?” and “How do we broaden the opportunity for other people?”. I am talking about fundamental, deep-seated questions, which my right hon. Friend the Secretary of State is considering. Fundamental to that incredibly important work is this debate today and the debate about the future of our low carbon economy.
I was just trying to make the point about the importance of the fifth carbon budget, which commits us to reducing our emissions in 2030 by 57% relative to 1990 levels. That is a very major commitment. I will return to our commitment to take effective climate action in the UK, but, out of respect to the hon. Member for Brent North, I will address the issue of Paris ratification, before moving on to address how we intend to maintain our international influence.
We signed the Paris agreement in April and we said that we would ratify it as soon as possible, and we will. For the information of the House—the hon. Gentleman knows this—there are two steps to ratification. First, countries complete their domestic processes to approve the treaty and then they deposit an instrument of ratification with the UN. We signed the agreement as part of the European Union. As many Members know, we negotiated the treaty together and—this point was ignored in the hon. Gentleman’s speech—the convention is that we will ratify it together. That is our understanding. Until we leave the EU, the UK will remain a full member with all the obligations that that entails.
Colleagues will understand that with such a complex process in which so many different countries are going through their domestic processes of approval—we are lucky because ours is relatively straightforward and there is an understanding that we will ratify simultaneously —it has always been understood that the EU was never expected to be at the vanguard of ratification. Indeed, that was confirmed to me by the most senior people involved in the negotiating process and, in part, explains why others have chosen to go first. Of course we welcome that, as we want early ratification of this hugely important treaty.
Mr Hurd
I will just finish my point and then, of course, I will take the hon. Gentleman’s intervention. For the same reason, it is very difficult for us to set the timeline for ratification that the hon. Gentleman seeks. It depends on the timing of the other processes. However, I wish to reassure him and the House that we will start our own process as soon as possible. Although I cannot confirm the exact timetable today because the processes are not complete, we will make a decision and we will communicate it at the appropriate point. The main issue is not whether that decision comes next week, as he seeks, or soon after, but that we fulfil our commitment to ratify as soon as possible. With that I am very happy to take the hon. Gentlemen’s intervention and thank him for his patience.
Barry Gardiner
I am grateful to the Minister for allowing me to intervene. He has just said that it was never the intention that the EU would ratify the treaty as one of the founder members, but in March this year, the EU Council underlined
“the need for the European Union and its Member States to be able to ratify the Paris Agreement as soon as possible and on time so as to be Parties as of its entry into force.”
The conclusion of the March Council, therefore, was that we would be founder members and that we would enter the agreement. However, because it is now clear that that final ratification with the Secretary-General will be in December of this year, it is vital that EU member states now take early action. We should be taking even earlier action to push other member states to fulfil what the European Council statement said.
Mr Hurd
Let me be absolutely clear: this Government welcome the shift in dynamic in terms of the ratification process. It is fantastically good news. As the hon. Gentleman has rightly pointed out, the important change—it has been the most important change since I was immersed in this matter in my first Parliament—is the shift in the attitude of the two biggest economies—the United States and China, This is the big game changer. Frankly, that is much, much more important than the exact timing of when we lay a command order in this place. No one is in any doubt about the commitment of the UK to this process. We have demonstrated that commitment under the leadership of successive Secretaries of State—I am delighted to see the right hon. Member for Doncaster North (Edward Miliband) in his place today—over many Governments.
Rebecca Pow
I am heartened by the positivity from the Minister on this subject. The fact that the United States has come forward first with the ratification is largely because Britain was leading the way on this matter. Many of these countries, China in particular, are among the biggest offenders on climate change, so to see them taking part is great. I urge the Minister to continue to lead the way, and I am heartened by his assurance that we will ratify this treaty and that we will be playing our part.
Mr Hurd
I thank my hon. Friend for that constructive and positive intervention. I am delighted that we are doing our bit to shift the tone of this debate, which is much needed. I will go on to address her point about how we intend to maintain our leadership and this international influence.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister is quite right to point to the two-stage process of ratification, and the question of how the UK will go about that process in conjunction with the EU. The fact is that that process is undertaken in the UK by laying an order to achieve the objectives of an EU treaty, by having it debated by both Houses and by it coming out the other end. That process has already been completed by France, and yet the UK is nowhere near even thinking about it. Is that the Minister’s understanding, or is such a process imminent in this House?
Mr Hurd
The hon. Gentleman has a long and distinguished record. We served together on environmental Committees a very long time ago. I thank him for his interest. He is right on one point. Yes, France has completed its domestic processes. He is entirely wrong on his second point, which was that the Government have not even begun to think about the process. We have, and we will be in a position to make our announcement on this at an appropriate point. I am sorry that it is not today, but we have made it clear, as the Prime Minister set out explicitly today, that we do intend to ratify as soon as possible.
On the important question of international influence, the challenge is not just how we meet our own commitments in the fairest and most cost-effective way, but how we maximise our influence to make sure that others play their full part. Those two aspects are linked, because it is easier for us to keep our people, businesses and private sector with us on this journey if they feel that other countries are fully engaged, and if they see that the global opportunity offered by the low-carbon economy, which I will come to, is real, substantial and growing, and that we must maximise our involvement in it.
I want to address the question of an international instrument, which the hon. Gentleman is rightly and understandably probing and which underlies the motion. UK diplomacy is widely recognised as having played an important role in shaping and securing the Paris agreement. The framework for the commitments to which countries have signed up has clearly been influenced by the structure that we have set up in the UK. That is enormously welcome. Our influence was built not on symbolism, but on substance.
We were the first to put our own house in order, putting world-leading targets into law and implementing the policies to meet them. We then established what is still the most extensive network of climate attachés in our embassies overseas. We gave other countries practical help in areas such as carbon pricing, energy planning, power sector reform, low-carbon urban development, green finance and climate legislation. Climate change researchers are now, apparently, working with the Chinese on the structure of their own emissions trading scheme. In many of these areas, UK expertise is world leading, and sharing it has strengthened our bilateral relationships and opened up commercial opportunities. I pay tribute to Sir David King for the work that he has done over many years with commitment and passion, which he maintains today.
We have also played a leading role in international climate finance. Ahead of Paris, we committed to providing at least £5.8 billion—that is serious money—of international climate finance over the next five years to support poorer countries in raising their level of ambition to reduce emissions and strengthening their resilience to growing climate insecurity. In the Department for International Development, I had responsibility for the climate finance brief. On regular trips to Africa, I saw the exposure, vulnerability and cost attached to lack of resilience to climate change, which made even clearer to me the importance of international climate finance. I am very proud of the lead that we have taken, and of the fact that we have been asked by the global community to take the lead in Marrakesh on setting out the road map for further progress.
We arrived in Paris well respected, with a strong set of relationships. On top of that, the UK negotiating team in the UN is recognised as one of the strongest in the world. It was rightly praised after Paris for playing a key role in bringing diverse countries into the agreement. Before I close on the past, it is appropriate to put on record my personal appreciation, and I am sure that of many colleagues, of the leadership role played by the then Secretary of State for Energy and Climate Change, who is now Home Secretary.
I can reassure the House that all these elements of our influence remain strong. Our bilateral co-operation on climate and energy with key international partners remains as wide ranging and ambitious as ever. As I said, our climate finance over the next five years will be 50% greater than it was over the past five years. Our investment in clean energy research and development will double over the next five years, and we are a leading member of a group of 20 countries that have all made such a commitment. The Governor of the Bank of England is leading the way globally on green finance and the important issue of climate risk disclosure. The Bank of England co-chairs the G20’s working group on green finance with the People’s Bank of China. Our negotiating teams across Government remain active and influential, not only on the US process that will meet again soon in Marrakesh, but in critical negotiations on emissions from civil aviation and the maritime sector, and hydrofluorocarbons.
I agree that ratifying the Paris agreement early is important symbolically. That is why we will ratify as soon as we can, but it is not credible to suggest that our international influence hangs on this one symbol when it is so firmly rooted in substance. We in this Government are proud of the leadership that the UK has shown and we have no intention of surrendering it.
Our influence overseas will always rest on our action at home. Few countries can lay greater claim to leadership in decarbonisation than the UK. Through the Climate Change Act, we were the first country to set a legally binding 2050 target to reduce our emissions by at least 80% compared with 1990. That target is in line with the Paris agreement’s goal of keeping the temperature rise to well below 2º C. We have not just set targets; we have acted. At home, just as abroad, we focus not on symbolism, but on substance. We reduced UK emissions by 36% in 2014 compared with 1990. Between 2010 and 2015 alone, we reduced emissions by 17%, which was the biggest reduction in a single Parliament.
On this journey, we have proved something that was in doubt when we started debating the issue in 2005 and 2006: whether cutting emissions comes at the expense of economic growth. We have proved in the UK that it does not. UK emissions have steadily decreased since 1990 while GDP has increased. By 2014, emissions had fallen by 36%, while GDP has increased by 61% since 1990. We have proved that green growth is a reality.
We have invested in clean energy, with 99% of our solar power being installed since 2010. Renewables now provide a greater share of our electricity generation than coal. I am confident that that impressive progress will continue. During this Parliament, our investment in clean energy generation is set to double, and we are on track for 35% of our electricity to come from renewables by 2020.
I will respond to the provocation from the hon. Member for Brent North. As we develop our emissions reduction plan, which is one of the Department’s top priorities, we will set a course towards deeper emission reductions in both heating and transport. The hon. Gentleman asked me about the emission reductions plan and, I think, manufactured a suggestion of gossip from the Secretary of State. The hon. Gentleman totally distorts what I said last night. He needs to check his sources.
The emissions reduction plan matters enormously. Any suggestion from the hon. Gentleman that this Government are not taking it seriously, are sliding away from it or do not understand its importance is misleading and misrepresents our position. It is important for the reasons that he states: to underpin the credibility of our progress towards challenging decarbonisation targets, and because, as he stated, if it is done well, it will send signals to market for investment and for the mobilisation of private capital and the private sector that is fundamental for success. It is essential that we get our carbon reduction plan right.
Mr Hurd
I am about to finish. The hon. Gentleman had plenty of time to speak. He knows that I am very laid back, but he stirred me with the approach that he took. The conversations that we are having about the emissions reduction plan—the carbon plan—are driven by the conviction that we must get this right. The hon. Gentleman knows the subject well and he knows the challenge that faces us. We have to take people with us, including a set of new Ministers with critical briefs, who need some time to get on top of the issues at stake because they are so important. We need to engage with the private sector and non-governmental organisations. This has to be a shared challenge. We have to make sure that the process is properly connected with the extremely important substantive and long-term work and thinking being done about the industrial strategy, because Paris, as he rightly said, changes so much—not least because the two largest economies in the world are saying, “We are now set out on a path towards decarbonisation of our power systems and our transport systems.” If we turn that into an estimate of the investment required, it runs into trillions of dollars.
We need to get this right, and all I was saying is that that is the priority. If we can meet all those criteria—if we can do all those things—by the end of 2016, great, but the overriding priority is to get this right, and that is what drives us. I hope that that is supported by Members on both sides of the House who can see that this commitment is important for our UK national interest, as it is for our identity as a responsible global citizen.
I am going to conclude. Our primary task is to manage a risk, but all this investment and innovation, as I have suggested, is creating one of the most important economic opportunities the UK has seen—arguably since the industrial revolution. The global low-carbon market is estimated to be worth more than $5 trillion, and it is now forecast to expand rapidly in the wake of the Paris agreement. Over the next 15 years, it is estimated that around $90 trillion will be invested in the world’s energy systems, land use and urban infrastructure, and an increasing proportion of that needs to be low-carbon if our globally agreed climate goals are to be met. The UK’s leadership and experience will put UK industry in a prime position to benefit.
The UK low-carbon sector is worth over £46 billion across more than 90,000 businesses. It employs more than 240,000 people and indirectly supports many more. There is great potential for it to continue to create high-value jobs in construction, manufacturing and services. That is why—here there is a genuine point of difference with the Opposition—the creation of the new Department for Business, Energy and Industrial Strategy is such an exciting opportunity. As we contemplate the importance and the consequences of Paris, and as we go through substantive processes in the industrial strategy, we think deeply about the future of our places, industries and sectors, and about what we can do to make them more competitive and more resilient, to broaden opportunity in this country and to make the economy work for everyone. It must be right to look at how our energy decarbonisation and industrial challenges can be brought together and thought through much more effectively than in the past. I regret that the Opposition continue to shadow the Government as they would like them to be, rather than as they actually are.
Rebecca Pow
I thank the Minister for so generously giving way to me again. Are not the Government showing that they really have thought deeply about the situation by linking business with energy and with this new low-carbon era in tackling climate change? This shows a whole new move in the direction of this Government. Does not the Minister agree that this is absolutely the way to go if we are really serious about climate change and linking it with business?
Mr Hurd
I could not agree more with my hon. Friend. More importantly, the feedback we are getting from the business community on this is extremely positive, because they want the Government to join things up, and to think intelligently and for the long term. However, I have to finish my speech because Back Benchers must get in.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
I am very grateful to the Minister for finishing. Can he tell us when we will see the emissions reduction plan for the fourth and fifth carbon budgets?
Mr Hurd
I know the hon. Gentleman has been busy talking to his colleagues, so he might have missed the bit of my speech in which I said we were reviewing where we are with that plan. It is massively important, and this has to be done well. We would like to do it in 2016. We are reviewing the whole process now, but if that changes and we feel that there is a case for doing this later, we will make an announcement and a decision at an appropriate point, which is not today.
Mr Hurd
When we are ready is the answer to that.
The UK always has been and, as the Prime Minister has made very clear, always will be an outward-looking country. Brexit does not change that, and nor does it change our commitment to tackling major international challenges such as climate change. We have an unrivalled set of relationships around the world, and our leadership on climate change is recognised in all the key international groupings. We will continue to use the authority that comes from our domestic track record to shape the international agenda.
Few issues that affect our national and global security, economic prosperity and poverty reduction ambitions are as important as climate change. We can rightfully—across all parties and on both sides of the House—be proud of the role we have played. This Government embrace the challenge of keeping the country on track to meet our long-term domestic commitments fairly and in the most cost-effective way possible. We will do everything that we can to maintain our influence, to make sure that other people play their part and to ensure that, on this long-term journey, we maximise the benefits to British businesses, British consumers and the British taxpayer. I leave the House in no doubt about the Government’s commitment to play a full part in the global effort to improve our climate security. I suggest in all sincerity to the hon. Member for Brent North that he does not press his motion to a Division.
Mr MacNeil
One of the first reports that the Select Committee on Energy and Climate Change undertook was on investor confidence. If there is a plea that I can make to the new team, it is not to lurch and suddenly make announcements, as happened just over a year ago, last July.
Mr MacNeil
I am seeing some nodding, so I feel reassured that that will not happen. I am grateful for that.
Dr Whitehead
There is perhaps an irony in the words “put into storage”, because the whole purpose of the exercise in the first place is storage. However, my hon. Friend is absolutely right that the whole question of what will happen with not only CCS pilot projects but the infrastructure and the prospects for CCS as a whole appears to have been put into the long grass, and that is a profound problem as far as our future climate change commitments are concerned.
It is going to be hard to write a convincing new low carbon programme in the light of just some of these things unless the Department gets to work very rapidly and unpicks the damage to the long-term low carbon prospects that have been underlined by the savage changes of the past year. I know that the new Minister is committed personally to making sure that the consequences are right, so that is perhaps an early task on his desk. Let us turn this round so that we can put into the low carbon programme positive consequences for the future rather than the negative consequences that there are at the moment.
These two issues go very closely together. We have to get on, very soon, with doing our bit on ratification. I am encouraged to hear from the Minister that if the documentation is not imminent, perhaps it is pretty imminent.
Dr Whitehead
The Minister is sort of nodding his head, so that is good. At the earliest opportunity, we need to have a good look at the new low carbon programme to see whether what we are committing ourselves to do can really be carried out, and, if it cannot, what we must do next to make sure that we can meet those commitments. That is part and parcel of the documentation, and the sooner it can come forward, the better. I hope that by putting the two issues together, we can get a real grip on what we have committed ourselves to and how well we can do it for the future.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)
Thank you, Madam Deputy Speaker. This is my first time at this Dispatch Box. I have often wondered what the view would be like, and I must tell you that it is really not bad. [Laughter.] And I do not just mean the Scottish National party. I was lured, without difficulty but with great regret, from the Culture, Media and Sport Committee because of the challenges involved and the extraordinary fascination of the issues. I discovered on my first day the challenging, testing and strenuous nature of the Department: the Canadian swim technique of being welcomed to the Department, briefed, and then invited to manage two statutory instruments within four hours—on carbon budgets, I might add. I could not have been more pleased to do that, given the importance of the issue.
We have heard many passionate speeches about climate change from Members on both sides of the House. We have gone from the Oracle of Delphi, to the Philippines, to Swansea, to Malawi. We have gone from “Star Trek” to logarithms, and from bogs to lagoons. It has been a fascinating debate. There has been great expertise, some humour and some real wisdom displayed across the House. However, one very odd thing is that this has been an Opposition debate with remarkably little true opposition. We heard very eloquent words from the right hon. Member for Doncaster North (Edward Miliband), who was very kind about the new ministerial team. We have had the hon. Member for Southampton, Test (Dr Whitehead) welcoming the fifth carbon budget. We have had the hon. Members for Wakefield (Mary Creagh) and for Wirral West (Margaret Greenwood) praising the Home Secretary. Their tone has been absolutely admirable—constructive, bipartisan, intelligent and right— and it has been echoed by other colleagues across the House, particularly the hon. Member for Aberdeen South (Callum McCaig).
What a contrast with the manufactured indignation of Opposition Front Benchers. You may know, Madam Deputy Speaker, that John Gielgud’s Hamlet was famous for its choked ferocity. He had the capacity to bring a tear to any eye, such was the intensity of his engagement. The Opposition spokesman managed to bring a tear to the eye of those in the House but, alas, it was a tear of laughter. He reminded me more than anything, in his histrionics, of Dame Edith Evans in the role of Lady Bracknell; but instead of declaiming about a handbag, he gave us a lot of nonsense about the Government’s record.
Barry Gardiner
Can the Minister adumbrate one single point that I made in my opening remarks—one single point where I criticised the Government for backsliding—on which I was wrong?
Jesse Norman
There are many that one could pick on, but my point was a matter of tone.
Jesse Norman
I am enjoying the sedentary contributions from the Opposition spokesman, but he has had his moment. Let us focus on the two themes that came through, loud and clear, across all the speeches and interventions today. The first is that the issue of climate change is now in the absolute mainstream of our political debate. Whatever people’s specific views, climate change is recognised across all parties, in all the nations and regions of this country, as a central issue of public concern. The second point follows from that, and it is that we cannot and we must not view this country’s commitments in relation to climate change in a narrowly partisan or party political way. The Paris agreement has been welcomed by Members from across the House, as has the concerted action taken this week by China and the USA.
As the Prime Minister underlined only a few hours ago, this country has long exercised global leadership in this area. It has balanced great ambition with a sober recognition of the costs involved—costs that can hit not merely industry but often, directly and indirectly, the poorest people in our society. There is so much more to do, but what the UK has done is cause for celebration, not regret.
We can all agree that climate change is one of the most serious threats facing the world, and that has been brought home to us again today by the excellent examples highlighted in the contributions of the hon. Member for Glasgow North (Patrick Grady), my hon. Friend the Member for South Ribble (Seema Kennedy) and the hon. Members for Wirral West, for Llanelli (Nia Griffith) and for Wakefield, as well as by my brilliant colleague the Minister of State. We agree that climate change is one of the most serious threats facing the world. We agree that the UK has played, and will continue to play, a unique and important role in global action to tackle the changing climate. We agree that that action is an opportunity for growth, for new jobs and for improvements to health, to cities and to our daily lives.
That consensus is the prerequisite. It is the essential long-term basis for concerted action in this area by all Governments, at any time. It will be especially helpful to us as we look forward to the COP22 meeting in Marrakesh in November, which will help to set many of the rules relating to the Paris agreement and so will mark a shift from aspiration to implementation. That consensus, and the need to maintain it, is fundamentally why I still hope that the hon. Member for Brent North will not press this needlessly divisive motion to a vote.
The Government have made it very clear that they welcome the push by the US, by China and by other countries towards the early ratification of the Paris agreement. We remain firmly committed to that agreement and to ratifying it as soon as possible. The convention, however, is that all European Union member states ratify the agreement together, collectively. We hope that that will happen, as has been said, as soon as possible.
Unfortunately, it is not true, as was stated by the hon. Member for Sefton Central (Bill Esterson), that France has ratified the agreement. The Commons Library briefing of 6 September says:
“As set out on the UK French Embassy website it will not do so until all Member states and the EU are ready to do so, and will focus”—
in the meantime, on—
“encouraging other Member States to make progress”.
France was reported in the press as having ratified the agreement, but it has not in fact done so.
I appreciate that we have heard some perfectly proper concerns about the Paris agreement coming into force before the EU has ratified it. However, there is widespread international understanding that in the event that the agreement enters into force early, countries that have not yet completed their domestic processes to allow ratification to take place—very important processes of consensual ratification—should not and will not be prejudiced. Not to do so would mean that as many as 140 countries, including some of the very poorest and most climate-afflicted nations in the world, would be denied a full seat at the table. COP22 in Marrakesh in November will, I hope, take a formal decision to that effect.
Turning to recent history, few countries have been more active in decarbonisation than this one. We were the first country to set, through the Climate Change Act, a legally binding 2050 target to drop our emissions by at least 80% on 1990 levels. Far from not having a strategy, we have just signed off our fifth carbon budget, which sets the terms for the overall picture. The UK has made great progress in reducing its emissions, which had fallen by 36% by 2014 on 1990 levels. During the past five years, between 2010 and 2015, our domestic greenhouse gas emissions have fallen by 17%, which is the biggest reduction in a single Parliament. We already have domestic obligations that keep the UK well below the 2° rise in temperature goal mandated by the Paris agreement.
Dr Whitehead
The Minister mentions the signing off of the fifth carbon budget and my pleasure about that, but perhaps he missed the point I made earlier, which is that the Government are nowhere near in any possible way meeting the terms of the fifth carbon budget, as a result of the policies they have recently put in place. That is presumably of some concern to him.
Jesse Norman
It has always been understood that, as has been stated, the Government would announce measures during this Parliament that will address the concerns—the perfectly proper concerns—the hon. Gentleman raises. I do not demur from the point that the framework exists, with the independent check of the Committee on Climate Change, whose suggestions the Government have, broadly speaking, in every case accepted. I do not think there can be much doubt about the structure and credibility of the long-term framework that the Government are following.
Through the Climate Change Act and the carbon budgets, Britain has an advanced model for the requirements set out in the Paris agreement, with a national plan to curb emissions and the aim to improve the plan every five years, setting progressively tighter targets. That model has been widely admired abroad, and it has proven extremely helpful and influential to other countries facing the same challenges, including Denmark, Finland and France. With the confirmation of our fifth carbon budget in July, we are in a strong position to continue on this steady path of improvement. That is the goal of this new Department. Its creation shows that climate change has become an absolutely mainstream part of our political life.
Mary Creagh
I do not know whether the Minister has seen the conclusions of the Environmental Audit Committee report, but the transport sector is set to miss one of the Committee on Climate Change’s interim decarbonisation targets by over 50%. Will he comment on some of the specific challenges facing the transport sector and on the fact that we are set to miss our fourth carbon budget for 2027, which is in nine years’ time?
Jesse Norman
I think we all recognise that, on present projections, the UK will have more to do to reduce domestic emissions. As has been said, that is going to require an emissions reduction plan. It is too early to give specifics about what will be included in that plan, but I can say that it will aim to set out the Government’s proposals across key sectors of the UK economy over the medium to long term and will be specifically structured to meet such needs.
I turn briefly to the issue raised by the right hon. Member for Doncaster North, namely our relationship with the EU in the context of Brexit. His words were wise, well chosen and constructive. Although we will ratify the agreement as part of the EU, leaving the EU does not mean that the UK will step back from this agenda. Indeed, let us all be quite clear that the UK will not step back from international leadership as such, and remains as committed as ever to tackling climate change. We will continue to be an outward-looking country. We have an unrivalled set of relationships around the world and membership of key international groupings through which to make the case for action and to build bridges between different views and interests, as he said.
Even after Brexit, we expect to work closely with the EU and with individual EU member states with whom we will have a continuing shared interest in pressing the case for action on climate change. We will continue to use the authority from our track record to support domestic and international climate action and shape the wider international agenda.
As I have made clear, our history of domestic climate action puts us in a very good position to build on what was agreed in Paris. The COP22 conference in Marrakesh marks an important further stage in the implementation of that global agreement. The negotiations are very complex and will take time, and we should not necessarily expect headline-grabbing outcomes. But it is important to focus on the positive side, from an innovation standpoint; some very important contributions, including that of the hon. Member for Glasgow North, stressed the importance of innovation.
Ambitious action on climate change should also lead to real opportunities for this country. As a result of the UK’s historical leadership we can build our progress towards a low-carbon economy both domestically and abroad. Low-carbon sectors are already an important and growing part of our economy. In 2014, more than 95,000 businesses were directly engaged in low-carbon and renewable energy activity, generating £46.2 billion in turnover and resulting in 238,500 full-time equivalent jobs. I particularly enjoyed and benefited from the remarks of my hon. Friend the Member for Wells (James Heappey) in that context, with his call for common sense and his emphasis on social justice and the importance of taking advantage of the economic opportunities.
Capital markets, too, play an increasingly important role in the transition to the low-carbon economy, and green finance is a major priority for the largest emerging markets. The green bond market, which funds projects with positive environmental or climate benefits, has grown from just $3 billion in 2012 to $42 billion globally last year. With London, the world’s most international financial centre, and with significant expertise and strong professional and legal services, this country is very well positioned to help finance the transition globally to a low-carbon economy.
I conclude by congratulating and thanking every Member who has contributed to the debate. It has been a very absorbing debate indeed. The number and quality of the speeches testify to the importance of the issues involved. The UK remains firmly committed to the Paris agreement and to its ratification as soon as possible. This country has not and will not step back from international leadership in combating climate change. We also remain committed to ambitious domestic action. The fifth carbon budget was set in line with the recommendation of our independent advisers, the Committee on Climate Change, as I have stressed. It is equivalent to a 57% reduction on 1990 levels.
We know that there will be complex challenges to decarbonising in the years ahead. That is to be expected. But our aim is to meet those challenges in a way that is fair and affordable, and maximises the economic benefit to the UK. That requires a whole-economy approach to delivering our climate change goals, one that effectively balances the priorities of economic growth and carbon reduction. Through the creation of the Department for Business, Energy and Industrial Strategy we will do just that.
Question put and agreed to.
Resolved,
That this House notes that the USA and China have both ratified the Paris Agreement on climate change; regrets that the Government has not accepted the Opposition’s offer of support for immediate commencement of domestic procedures to ratify the Paris Agreement; further notes that if the UK lags behind its G20 partners in ratifying the Paris Agreement it risks losing diplomatic influence on this crucial future security issue; recognises, in light of the EU referendum vote, the need to maintain a strong international standing and the risk of rising investment costs in UK energy infrastructure; and calls on the Government to publish by the end of next week a Command Paper on domestic ratification and to set out in a statement to this House the timetable to complete the ratification process by the end of 2016.