Lord Newby (LD)
My Lords, I agree with the Prime Minister that those who thought that COP 26 would be a failure have been proved wrong. There were agreements on forests, methane, cars and finance, and there is undoubtedly some momentum among Governments and the private sector to move more quickly than previously.
Alok Sharma clearly worked extremely hard to achieve even more substantive progress, and he and his team deserve our thanks for all their efforts. By contrast, the Prime Minister seems to have played no concerted role at any point over the last two years. As the noble Baroness, Lady Smith, said, his second visit to COP seemed to consist only of a press conference dominated by the question of whether the UK, under his watch, is now a corrupt country.
The Statement itself demonstrates the Prime Minister’s addiction to hyperbole. The world, he says, is “calling time on coal.” Really? When is that time? The declaration on coal is positive but, as it stands, is consistent with India and China continuing to use very large amounts of coal for decades ahead, decades which the world simply does not have. The Prime Minister says, we have
“ticked our boxes on cars, cash and trees.”
I fear that, for him, that is exactly what we have done: enough to enable him to claim that a success has been achieved, with no recognition that the agreements in these areas, although very welcome, are partial and will need continuing global pressure to achieve their stated goals.
As the dust settles on the conference, the key questions in every sector contributing to climate change are, “How do we build on the progress of COP 26?” and, “What role can the UK play?” I will concentrate on just three areas: finance, China, and the UK’s own carbon reduction strategy.
On finance, it is important that companies set targets and keep to them and that we do not facilitate the funding of climate-threatening activities. On the former, can the noble Baroness confirm what carbon reduction plans the UK will require companies listed in the UK to set in future, and what sanctions there will be to ensure that they are fulfilled? Does she agree that choking off finance for new fossil fuel exploration and development is potentially crucial? If so, will the Government commit to banning new stock exchange listings of fossil fuel companies and funds? Will the Government also press for a change in the capital adequacy rules, so that they reflect the climate change risks attached to lending by banks to fossil fuel companies? Does she accept that this could in effect price out the viability of such loans in future?
On China, the Prime Minister has expressed his frustration that they did not make further commitments at COP 26. He rightly accepts that he is not in a position to tell President Xi what to do, but there seems to have been a retreat in the diplomatic resources and effort put into climate change diplomacy, not just with China but globally. China’s stock has been weakened in the eyes of the island states, and much of the developing world, by their unwillingness to move more quickly. Surely this is something we should be tapping into via our Diplomatic Service to encourage those countries to put pressure on China, which in the past has so assiduously sought their votes at the UN and in other international bodies. Will the diplomatic resources devoted to climate change be increased to allow this to happen?
Domestically, the Government’s policy, despite the targets, is characterised by a lack of consistency and ambition. Will the Government now make it clear that they oppose any further coal or oil extraction in this country? Will they up their game on insulating homes and installing heat pumps? Will they give real impetus to developing working carbon capture and storage schemes, which have been promised for so long but not delivered? Will they stop doing counterproductive things, such as the reduction in air passenger duty?
The Prime Minister, quoting Aristotle in his Statement, says that
“virtue comes ... from habit and practice”
and implies that he favours virtue, at least in our approach to climate change. Will he therefore heed his own, or rather Aristotle’s, words, cut out the hyperbole and more assiduously practise what he preaches?
The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)
I thank the noble Baroness and the noble Lord for their comments. I am slightly disappointed, although, to be fair, the noble Baroness did highlight that much progress had been made. I think we have been very clear that we did not reach all the targets that we wanted to reach, but it is a misrepresentation of COP to say that we did not make some significant progress. The Glasgow climate pact was a historic agreement, the gap in ambition has narrowed and we now have net-zero commitments for over 90% of the world’s economy, up from just 30% two years ago.
COP has kept 1.5 degrees alive. I completely accept the noble Baroness’s point that we did not get as far as we wanted, but the combination of net-zero targets, enhanced 2030 emission-reduction commitments and agreed action in key sectors, all underpinned by the rules, systems and support agreed in Glasgow, will significantly reduce emissions by 2030 and can put the world on track for below two degrees. I totally accept, as does the Prime Minister, and indeed Alok Sharma, that there now needs to be a concerted effort and delivery by all countries. We are not on track for 1.5 degrees at the moment, but that is one reason why COP 26 agreed that countries will return next year with stronger emission reduction targets for 2030, so that we can keep the momentum going and try to get back on track.
So countries have agreed to return next year with their new targets. This will be combined with a yearly political round table to consider a global progress report and a leaders’ summit. The pact creates a new UN programme to work with countries to scale up their emission reduction targets, and these will report back next year. Following this COP, a yearly report from the UNFCCC, which was previously conducted every five years, will give a clearer picture of countries’ latest targets and how they are going to close the emissions gap. The noble Lord talked, for instance, about pressure on China. All these actions are aimed at shining the spotlight on all countries and globally, and helping us continue to move forward.
One thing that neither the noble Baroness nor the noble Lord mentioned, but which it is important to mention, is that the Paris rulebook—the guidelines on how the Paris Agreement is to be delivered—was completed after six years of discussion. These guidelines are an important step forward in transparency and holding countries to account for their targets.
The noble Baroness and the noble Lord rightly talked about coal. We have been quite clear that it was disappointing that some countries wanted softer language than perhaps we would have liked. However, I still maintain that this was the first time that a pact has mentioned coal power and fossil fuels. They were referenced in a COP text and were agreed by all the countries involved. Some 65 countries have now committed to phasing out coal, including four of the world’s top 20 coal power-generating countries: South Korea, Indonesia, Vietnam and Poland. All major coal-financing countries have committed to end international coal finance by the end of 2021. We also saw a significant commitment of the G20 countries in that regard, which included China, the USA and India, which can have an immediate impact in the Asia-Pacific region.
The noble Lord asked about the Chancellor’s announcement. He set out plans for the UK to be the world’s first net-zero aligned financial centre, with new requirements for UK financial institutions and listed companies to publish net-zero transition plans that detail how they will adapt and decarbonise as the UK moves towards a net-zero economy by 2050, and further work and publications will come on that side of things.
Both the noble Lord and the noble Baroness rightly mentioned the $100 billion climate finance target. Again, we have said that we deeply regret the fact that this target was not met in 2020 as originally committed to, but the plan does show that the goal will be met by 2023 at the latest and continues on a rising trajectory to 2025. We are increasingly hopeful of meeting, or coming close to meeting, the goal by 2022, although I accept that that is obviously still two years out. It has been important that 95% of the major developed country climate finance providers have come forward during COP with increased multi-year climate finance commitments, with some doubling or even quadrupling their climate finance.
We welcome Australia’s commitment to net zero by 2050. I can assure the noble Baroness that our trade deal with Australia will include a substantive chapter on climate change, which reaffirms our joint commitment to upholding our obligations under the Paris Agreement, including limiting global warming to 1.5 degrees. That goes further than many previous trade agreements.
Domestic aviation, which both the noble Lord and the noble Baroness mentioned, accounts for less than 1% of the UK’s total emissions in 2019. We have announced, alongside the announcements in the Budget, a new ultra-long-haul ban to align more closely with our environmental objectives. We are also investing £180 million in a competition to support the development of plants for sustainable aviation fuel in the UK.
The noble Baroness asked about the Cambo field. That proposal is being scrutinised by independent regulators, and no decision has yet been taken, but the UK was the first G7 country to agree a landmark deal to support the oil and gas industry’s transition to clean green energy by 2050 while supporting 40,000 jobs. The reason we were able to bring people together and take these steps forward is that we are a world leader in this area. We are leading by example and we will continue to lead by example. While we did not achieve everything that we wanted at COP, it has been a major step forward for the world.
Baroness Anelay of St Johns (Con)
My Lords, the oceans play a unique role in regulating our climate. Unless we take unprecedented action to restore and protect the oceans, none of the shared goals announced at COP can be met. Can my noble friend give an indication of the progress made at COP 26 on ensuring that oceans play a stronger role than they are currently able to play in regulating our climate? It is essential.
Baroness Evans of Bowes Park (Con)
I thank my noble friend. The UK presidency marked Ocean Action Day at COP, championing a call for action to protect and restore ocean health and resilience. For instance, more than 100 countries have now signed up to protect at least 30% of the global ocean by 2030. My noble friend Lord Goldsmith is obviously very heavily involved in this work and will continue to lead international action in this area.
Baroness Bennett of Manor Castle (GP)
My Lords, like the noble Lord, Lord Newby, I was surprised that the Prime Minister rather bravely referred to Aristotelian virtue in the Statement. Four essential characteristics of virtue, according to Aristotle, are prudence, temperance, courage and justice. There is no provision in the Glasgow agreement for loss and damage payments—reparations for the fact that the global south is already suffering deadly horrendous damage because of the emissions of the global north. The Statement says that Alok Sharma will push countries to go further. Will the UK lead in putting in funds for loss and damage, as Scotland has already done, reflecting the fact that the most vulnerable nations made it very clear at COP that they expect this to be fully sorted out at Sharm el-Sheikh?
Baroness Evans of Bowes Park (Con)
I am surprised that the noble Baroness did not realise that this was, in fact, the first COP decision that included a position on loss and damage, which is a recognition of how seriously developed countries are taking their obligations. The Glasgow dialogue was launched better to co-ordinate financial support for extreme impacts, and it agreed that there would be a dialogue between parties, relevant organisations and stakeholders to discuss the arrangements for funding activities to avert, minimise and address loss and damage. We also established the functions of the Santiago network, which will provide technical assistance to developing countries to address loss and damage. So progress was most certainly made.
Baroness Bottomley of Nettlestone (Con)
My Lords, I congratulate the Government on the tremendous commitment and energy given to COP 26. My first global environment conference was on saving the ozone layer with Margaret Thatcher in 1988, which was British science-based. It was a global movement, with the Montreal treaty, business getting involved and a massive public campaign. Well, how much has happened. My real delight is that it is not only nations but regions and communities that will deliver these commitments. I was there to represent the Humber region, the greatest provider of carbon in the country, and it is going net zero, with a major wind farm, major investment in hydrogen and major investment in carbon capture. This is a community—local authorities and business leaders—with political support, taking action into its hands. We are none of spectators; we are all participants. If the Minister can find her way to Hull, I would very much like to introduce her to these remarkable leaders.
Baroness Evans of Bowes Park (Con)
I thank my noble friend. She is absolutely right. So many people played such an important part in COP 26. It was attended by 120 world leaders. There were over 38,000 delegates from 194 countries. We brought together thousands of delegates from civil society, indigenous peoples, business, youth groups and women’s groups—all coming together with a common goal. I would be delighted to visit Hull if she would like to arrange it.
Lord Teverson (LD)
My Lords, I was very pleased to hear in the Prime Minister’s Statement that, as I understand it, Alok Sharma will continue his full-time role as president of COP 26 until Egypt next year. I congratulate him on what he achieved this time.
Two themes that came out in COP 26 were methane and carbon sequestration. Going from the macro to the micro, I suggest two things that the Government could easily do, almost immediately, to help in those areas. In North Sea gas flaring, we are still the laggard in comparison with other North Sea oil and gas producers. We allow flaring. The Oil and Gas Authority recently released a new strategy which said that it would stop flaring, except in exceptional circumstances, by 2030. Why do we not stop it immediately?
With carbon sequestration, peatlands are one of the major areas of carbon storage and the UK has some of the largest areas in the globe. Yet we still allow peat extraction for gardening and other areas, and we allow it to be sold as a gardening accessory. We can stop this almost immediately. It is the Government’s intention to do so, so why do we not do both those things now?
Baroness Evans of Bowes Park (Con)
I am happy to raise the noble Lord’s points with colleagues and we will continue to look at ways to meet our obligations. The noble Lord rightly talked about methane emissions. More than 100 countries, responsible for just under half of all methane emissions, joined the global methane pledge to cut them by 30% by 2030. That includes six of the top 10 methane emitters—the US, Brazil, the EU, Indonesia, Pakistan and Argentina—and the noble Lord will be interested to know that, according to the global methane assessment, action on methane can avoid up to 0.3 degrees centigrade of warming by 2040. He is absolutely right that we need actions at all levels to ensure that we continue working towards this goal.
Lord Grantchester (Lab)
During last week’s questions on the COP Statement, I asked the Minister how the funding was progressing towards raising that £100 billion annually from developed countries to distribute to less developed and developing countries, to help reduce emissions and to combat and adapt to climate change. Can she now update the House on the final climate finance contributions from the major economies, and can the Government publish a list documenting the amounts from each contributor?
Baroness Evans of Bowes Park (Con)
I thank the noble Lord. I knew that he would probably ask me this question, so I have an answer for him about the United States, which he asked about last week. It intends by 2024 to further double its annual public climate finance to developing countries to around £11.4 billion, including around £3 billion to support adaptation efforts. He might be pleased to know that we have indeed published such a document, COP26 Presidency Compilation of 2021-2025 Climate Finance Commitments, which lists the commitments made in this area and which he might be interested to read.
Baroness Neville-Rolfe (Con)
My Lords, I would like to acknowledge the unexpected progress that was made at COP, for example on rainforests, which I do not think anybody has mentioned. On the move to change the energy mix, I think it is at least as important for the Government that they keep the lights on as it is to take measures to save the planet. In that context, does my noble friend agree that the move to intermittent renewables needs to be balanced, and indeed balanced now, by a substantial investment in the British nuclear industry, another source of zero-carbon energy? Does she further agree that the neglect of the nuclear industry since the mid-90s has been a disgrace?
Baroness Evans of Bowes Park (Con)
I am sure my noble friend is aware that we have a Bill in the House of Commons looking at this area which will be coming to your Lordships’ House soon so we can discuss these issues. We are certainly looking to reinvigorate that sector. I will also just say that last year was the first year in which renewables were the primary source of the UK’s electricity and we have quadrupled the percentage of our electricity that comes from renewables but, of course, we need a mix in order to make sure that we have security of supply.
Viscount Stansgate (Lab)
My Lords, do the Government accept that to some extent global climate change and global heating and biodiversity loss are two sides of the same coin? In furthering their work after COP 26, will the Government do more to include the effects on biodiversity loss of the policies they are promoting?
Baroness Evans of Bowes Park (Con)
I completely agree with the noble Viscount. That is why we were so pleased, for instance, with the 140 leaders representing over 90% of the world’s forests pledging to halt and reverse forest loss by 2030. We also had 45 nations pledge action and investment to protect nature and to shift to more sustainable ways of farming and, as I mentioned earlier, there was action on the global ocean. The noble Viscount is absolutely right, and that is why we put this front and centre and included it in COP in a way that had not happened before. My colleague, my noble friend Lord Goldsmith, is leading this: he is passionate about it and will continue to talk to global colleagues in order to keep this agenda going forward.
Baroness Bennett of Manor Castle (GP)
My Lords, the Statement says that we have seen countries that really should know better dragging their heels on their Paris commitments. The Minister will be aware that the Beyond Oil & Gas Alliance has launched, led by Denmark and Costa Rica and also involving the states of California and Quebec. Given that we are committed to 1.5 and one of the commitments of the Beyond Oil & Gas Alliance is 1.5, meeting Paris commitments, are we not dragging our heels by not signing up to this alliance?
Baroness Evans of Bowes Park (Con)
No. We have been central to action in this area. For instance, we were central to setting up the Powering Past Coal Alliance which now has 165 members, including national and subnational Governments, businesses and organisations. We will obviously continue to look at this area but we are certainly leading the way. In fact, the transition is already under way. In OECD countries, the share of coal in power generation has fallen from a peak of 40% in 1990 to a low of 23% in 2019. As we have said, although perhaps we had watered-down language, as we have all accepted, the end of coal is in sight, and that is what we want to continue to work to.
The Deputy Speaker (Baroness Henig) (Lab)
If there are no more questions we will move on to next Business.