Earl Russell (LD)
My Lords, we welcome this Statement and the progress made at COP 29. The world—indeed the very future of humanity—stands at a cross-roads. One path leads to a near-term end of the viable future of humanity on planet earth, and the other leads to concerted, collective and constructive change and a willingness to fight for humanity’s future. Time is a luxury that is rapidly running out. We are on the cusp of breaching our collective goal of limiting climate change to 1.5 degrees. We must keep hope alive. We must fight for further rapid progress with the little time we have left.
The near future—one that our children will experience—is one where they will need to fight climate change and deal with the ever-growing consequences of the failure to do so earlier. The tragic loss of life and destruction from Storm Bert is the latest reminder of this fact. It is not acceptable that funding shortfalls mean that the number of properties to be protected from flooding by 2027 was cut by the previous Government by 40%. Will the Minister commit to including natural flood defences as a central part of the £5.2 billion flood-defence spending to protect our communities? Much more work is also needed on adaption and resilience programmes.
COP 29 concluded with a deal that, while welcome, still leaves much to be desired. The $300 billion a year is a start, but the developed world must do more to support the developing world to implement its own clean energy and adaption programmes. It is estimated that this funding can deliver reductions equivalent to more than 15 times the UK’s annual emissions. Simply put, we can either pay now or we can pay more later. The greatest cost of all is always that of doing nothing.
We very much welcome the return of UK leadership on the world stage on climate issues, after the dying days of the Conservative Government did so much damage to our international standing and reputation with their retreat from reality. I congratulate our negotiators on their work. We welcome the commitments to new ambitious emissions targets, including the reduction by at least 81% by 2035. Delivery depends on bolder and more decisive action. We support this programme and I express our willingness to work with the Minister to help the UK to seize this opportunity.
We need concentrated and immediate action to insulate our homes, reduce energy costs and ensure that no one has to choose between heating and eating. The delay to Labour’s warm homes plan until spring 2025 is unacceptable when millions of people, including 1.2 million pensioners, face a cold and uncomfortable winter due to the cut in the winter fuel allowance. We need clearer plans to roll out heat pumps, to increase the update of electric vehicles, to fix the unacceptable delays to grid connections, and to achieve rapid progress in improving our energy security and enabling a swift reduction in energy bills.
We will work to progress the GB Energy Bill through this House, but we call on the Minister to give clear commitments to deliver clear community energy programmes. Labour must do more to decentralise the energy transition, bring much-needed jobs and growth from the green economy, and work to ensure that the benefits of our transition and increased energy security are properly communicated. Climate leadership must prioritise solutions that protect communities and restore nature. The nature and climate crises are interlinked and intertwined. We are one of the most nature-deprived countries in the world. Our 30 by 30 target still has unrealistic delivery pathways.
I note that the Statement says:
“The UK will decide what our own contribution will be in the context of our spending review and fiscal situation, and that will come from within the UK aid budget”.
On loss and damage, are these funds ring-fenced against the development cuts announced in the Budget? Lastly, I call on the Government to give the gift of time to the Climate and Nature Bill—a Private Member’s Bill being discussed in the other place. It is so important that we update our climate legislation.
The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)
My Lords, I thank both noble Earls for their comments and questions. I must say that it is good to welcome the noble Earl, Lord Courtown, to the Dispatch Box to talk on such an important issue; it is like old times. His comments were interesting because he started by talking about his own Government’s achievements in the area of climate change, net zero and the decarbonisation of our power supplies. But then he moved away from that, and it is worth reflecting that, of course, it was Prime Minister May who showed leadership on net zero, and it was the last Government who signed up to the £11.6 billion in international climate finance for the period 2021-26. They also signed up to the national adaption programme 2023-28.
It was the noble Lord, Lord Sharma, who so ably led the COP 26 Glasgow negotiations. I was just reminding myself of the ministerial meeting in Copenhagen only two years ago, co-chaired by the noble Lord, Lord Sharma, in which Ministers agreed the urgency of responding to climate change and of the need to accelerate practical action and support for a just transition to low greenhouse gas emissions. It seems to me that the Conservative leadership is essentially turning its back on climate change, and it seems to be obsessed with fossil fuels.
As we heard from the noble Earl, Lord Russell, both just now and in the Oral Question earlier, climate change is here. It is having damaging impacts in this country and globally. We simply cannot hold back: we have to charge on. I agree with the noble Earl, Lord Russell, on the importance of flood defences, charging on to net zero, heat pumps, and grid connections. His comments on the GBE Bill were helpful, and I noted his point on community energy. He mentioned the warm homes plan: we have that and continue to work on it, but we have already made some substantive announcements, which I hope he will be able to study.
There has been a lot of comment on the outcome of the negotiations, which were obviously very challenging. Developing countries were disappointed with some of the outcomes. The fact is that the focus was on finance, and the agreement calls on all actors to scale up financing to $1.3 trillion for developing countries by 2035 from all sources, public and private. Also agreed was a goal for public and publicly mobilised finances of at least $300 billion per year for developing countries by 2035. I should say that this new goal will take account of contributions from major economies such as China that are in a position to support developing countries.
Although we made strides in relation to finance and carbon markets, COP did not make progress elsewhere. We wanted much stronger outcomes on taking forward the global stocktake, agreed at COP 28, on the transition away from fossil fuels and on keeping 1.5 degrees Celsius alive. We will continue to push that as we move towards the run-up to COP 30 in Brazil.
I acknowledge that both noble Earls have welcomed UK leadership, which has been very important. The visit of the Prime Minister and the Secretary of State was influential, and it is right that Britain should be there at the negotiating table. I know that noble Lords say that we produce only 1% emissions, but there are many countries with 1% emissions, and collectively, we are very powerful. I acknowledge that we want to build on what the last Government achieved in this area. National consensus here is very important indeed.
On the 81% target for 2035, we think that that is in line with the advice from the Climate Change Committee. Clearly, we will now need to work through the implications of that. On our contribution to the £300 billion of public and publicly mobilised finance, clearly, I cannot be drawn on what that will be. As we have said, this will go into the multiyear spending review. However, overall, we can at least recognise that agreement was reached in very difficult negotiations.
I know that noble Lords are concerned about China, and I understand the issues they raise. The fact is that China disclosed that it has contributed £24 billion in climate finance to developing countries since 2016. We know that part of the COP agreement is to encourage more voluntary contributions on that basis. It is interesting that International Energy Agency figures show that China is accelerating its use of renewable energy.
There is clearly much to discuss and to tease out of the agreement, and a lot of work has to be done on the pathway to Brazil. But at least an agreement has been reached which gives us some hope that we can move forward, and for this country, the message is to charge on.
Lord Woodley (Lab)
My Lords, the Statement clearly says that the move towards clean energy is unstoppable, and of course I welcome that, but I have two questions for the Minister. First, does he agree that to get consumers to buy more electric vehicles, reducing VAT from 20% to 5% would be incredibly helpful? Secondly, does he agree that the mayor of Liverpool’s proposals for a Mersey barrier—which, obviously, would generate energy not through wind but through tide—would be a fantastic step forward in investing in the long-term prospects of cleaner energy?
Lord Hunt of Kings Heath (Lab)
My Lords, on the issue of tidal potential, my noble friend may be interested to know that the noble Lord, Lord Alton, has tabled a related amendment for consideration in Committee on the Great British Energy Bill, and I look forward to discussing it. Of course, I recognise the potential, and we will be very happy to discuss that with the mayor and other local bodies—that is without commitment, I have to say.
On electric vehicles, obviously there has been a lot of discussion recently of the decisions of commercial manufacturers. We are committed to the manifesto commitment to phase out new cars powered solely by internal combustion engines by 2030. We realise that there are many challenges for industry at the moment. Ministers in the relevant departments are engaging with key industry figures, and obviously, we want to work very closely in partnership with industry to tackle some of the challenges that have been raised.
Lord Howell of Guildford (Con)
My Lords, the Minister made it clear that a number of targets appear to be floating around, as my noble friend touched on when he opened the discussion. Is the 2030 target anything to do with net zero, or is that just an ambition for cleaner energy? I have heard that target described as “base camp”, which means we have not started climbing even when we get there. Would he agree with that description? It is rather different from some of the descriptions the Government have offered in the past.
Lord Hunt of Kings Heath (Lab)
My Lords, it is always interesting to have the noble Lord’s perspective, given his long-standing interest in energy. He enjoyed being Energy Secretary, and it is good that we have a department focused very much on energy issues. I think the target is consistent: 2030 is the aim for clean power; the 2035 goal we have agreed on the reduction in greenhouse gases is the UK offer that we have made. The actual target we have set is an 81% reduction in emissions by 2035, against a 1990 baseline. I am clear that this is consistent with 2030—in other words, the 2030 target takes us on to the 2035 target we have now agreed. The noble Lord asked that question on Monday, and we are clear that we are being consistent; and obviously, we are taking the advice of the Committee on Climate Change on this.
Lord Teverson (LD)
My Lords, one of the things that has improved hugely is satellite monitoring of emissions, particularly of methane. According to a recent report, some 1,000 major methane escapes have been identified and notified to the nations which caused them, but there has been very little reaction or implementation of measures. The UK has shown leadership here as part of the global methane pledge. How can we much better ensure that we implement the solution to emissions of this most concentrated of greenhouse gases, as doing so is really important?
Lord Hunt of Kings Heath (Lab)
I am grateful to the noble Lord, who raises a very important issue. In fact, during or around the time of the COP 29 discussions, we announced £5 million to help developing countries tackle methane emissions from their fossil fuels. This is supporting delivery of the global methane pledge launched at COP 26. However, I am very happy to take a further look at this and to respond to the noble Lord in some detail about what further actions we might take on this important matter.
Baroness Hayman (CB)
My Lords, I declare an interest as the chair of Peers for the Planet. There were two COPs this year but as far as I could see, in the Statement there was only one passing reference to nature, yet biodiversity loss and climate change are profoundly integrated and intertwined challenges. Does the Minister recognise that we need to find the policy synergies to address both issues and to manage the trade-offs that sometimes need to be made? Can he also think about where we could make a start with some integrated language in the Great British Energy Bill?
Lord Hunt of Kings Heath (Lab)
That is quite a challenge from the noble Baroness. When we come to Committee next Tuesday, we will certainly discuss this issue further, but I very much take her point about nature and biodiversity. She is also right to highlight that there are sometimes tensions. Yesterday we had an Oral Question on the use of farmland for solar farm development; there is clearly a tension there that has to be managed, and I very much accept the challenge she described.
Lord Ahmad of Wimbledon (Con)
My Lords, I welcome both the tone and substance of the Statement. Indeed, I recall the £11.6 billion commitment made by the Conservative Government—because I made it myself at the UN meeting. However, my focus is on the progress that was made. Article 6 of the Paris agreement focused on carbon trading. Can the noble Lord focus on the UK’s approach to that? Linked to that, I associate myself with the just point made by the noble Baroness, on climate-based solutions. In practical terms, we have seen that when we are looking at climate solutions, nature-based solutions provide the best example of both mitigation and adaptation on the ground.
Lord Hunt of Kings Heath (Lab)
My Lords, I readily acknowledge the noble Lord’s personal commitment and thank him for it. I do think a consensual approach to this is really important in giving long-term stability both to our country and to industry, in terms of the policies that we are taking forward.
On Article 6, at COP the parties agreed outstanding rules to fully operationalise it. This can enable higher global mitigation ambitions and facilitate flows of finance, particularly to emerging and developing economies. We obviously very much welcome this outcome. It delivers high-integrity rules to govern international carbon markets, which are underpinned by environmental integrity, as he said. Obviously, in terms of what we now do, we will be taking this forward. However, alongside some of the disappointments that have been expressed about the outcome, this is a very important one.
Lord Browne of Ladyton (Lab)
My Lords, I draw attention to my entry in the register of interests, particularly as working vice-chair of the Nuclear Threat Initiative. According to the IAEA, nuclear power must significantly expand to new markets if climate rules are to be achieved. Currently, there are 31 countries using nuclear power. We learned from COP 28 and COP 29 that around 30 so-called newcomer countries are either embarking on or considering its introduction, and some are already building their first nuclear reactors.
As nuclear energy expands to new locations, it is critical that non-proliferation in nuclear security practices and standards keeps pace. This will require significant extension. Moving in the wrong direction could foster a world with more weapons-usable nuclear materials that are less secure, more countries with the ability to produce these materials and perhaps even more nuclear weapon states. Engaging with Governments who have established nuclear energy to promote key non-proliferation standards is essential. What steps are we taking in that regard? We need to make sure that Atoms4NetZero does not turn into “Atoms for Peace”, which left many dangerous materials lying about all over the world.
Lord Hunt of Kings Heath (Lab)
My Lords, I am very grateful to my noble friend. I understand that six more countries signed the nuclear agreement declaration at COP. These are the countries that have pledged to triple nuclear energy by 2050. It is quite clear that there is a global renaissance occurring in nuclear energy. I have attended a number of international conferences where there is a lot of interest in countries like ourselves, who have turned back to nuclear, in countries that have not had nuclear power stations. This has great potential for the UK. We have great potential for exporting technology and expertise and, in relation to what my noble friend said, efficient systems of regulation. I assure him that we are encouraging business and agencies here to do all that they can in an international setting. I have met a number of Ministers from countries who are going back to or starting nuclear on that. In relation to non-proliferation, the work of the IAEA is critical. I assure him that the United Kingdom plays a very strong role in it and contributes to it extensively.
Lord Mott (Con)
My Lords, I refer the House to my entry in the register of Members’ interests. I welcome the Statement today, but can the Minister reflect on the recent COP and those over the last few years and whether the format of discussion, debate and agreement is best achieved through the format of COP or whether there is a better way to move this forward on a more regular basis, perhaps holding to account some of the countries in the world on a more regular basis?
Lord Hunt of Kings Heath (Lab)
My Lords, it is clearly an interesting question. The noble Lord will have seen that some of the country participants in Baku were very unhappy with parts of the process. Some felt excluded from some of the key corridor discussions, if I can put it that way. The problem is that it is the only forum that we have for discussing and negotiating these important matters. Whatever fora you have, if you have over 190 countries involved, it is going to be very complex. Notwithstanding that I understand the frustrations of many countries and the difficulties, the fact that agreement was reached and we can now see clear a line to Brazil next year means that we need to continue to work with the process and encourage it to be run as effectively as possible. I do not see any option but to go with the COP process.
Baroness McIntosh of Pickering (Con)
The noble Earl, Lord Russell, raised the warm homes discount. I am the honorary president of National Energy Action. I see that the discount rate is still £150. Given the current level of electricity bills, this seems quite low and not to have been reviewed for some time. Will the Minister review this and look at the level of the warm homes discount?
Lord Hunt of Kings Heath (Lab)
My Lords, I have to say to the noble Baroness that at the moment we do not have any plans to review it.
Lord Hamilton of Epsom (Con)
My Lords, China is a major contributor to global emissions. Much of its energy is still generated through coal and it is still building coal-fired power stations. China is not alone. India is also building coal-fired power stations and depends on coal for much of its energy as well. The result is that both countries are keeping their prices low, compared with the rest of the world, and the undertakings that we have from them seem rather hazy. What guarantees are there that they will reduce their consumption of coal and are they likely to keep to them?
Lord Hunt of Kings Heath (Lab)
Obviously, there are no guarantees, but that is why it is very important to move to Brazil and deal with mitigation, in a way that we were unable to do in the last COP negotiations. In relation to China, I understand entirely what the noble Lord is saying. I understand entirely his concerns. However, China was a player at the COP discussions. It did indicate the voluntary payments that it has made to developing countries and I believe we have to work very hard to keep China in the tent.
I repeat again that, although clearly China has overtaken the EU and is now the world’s largest emitter, it is also developing extensively in renewable energy. What alternative do we have? In the end, we must come back to climate change and the awful consequences, for us and globally, of not taking action. It would be a huge mistake to put the brakes on, say, “No, we’re going to rely on oil and gas”, and hope that nothing happens. We just cannot do that. We have to work with China and India. We have to try as hard as we can to bring them with us and that is what we are seeking to do.
Lord Hogan-Howe (CB)
My Lords, this is a complex issue and I am a layman in what is a complex world. One thing which we are in control of but which we do not seem to make much progress with is building regulations for new properties. This confuses me. They still seem to allow gas boilers to be put in. They do not seem to encourage solar panels or glass that converts sunlight into electricity. Yet we are already building new properties. This Government quite properly have a huge ambition to build far more properties. Is this not the time to embed the price of some of these changes in the price of the new property, perhaps with some kind of taxation encouragement? At the moment, we are building properties that we know will not be helpful in the future when it is within our gift, with existing technology, to do about something it. It is confusing. Every time I have asked about this, somebody has said that they are looking into it. Is it not time that somebody did something about it and encouraged builders—incentivised them—to help us to make some progress, in this area at least?
Lord Hunt of Kings Heath (Lab)
My Lords, the noble Lord is right about the complexity of this whole area of policy, but he makes a powerful point. On Monday, we had an Oral Question from the noble Earl, Lord Russell, on solar panels on roofs, when essentially the same question was asked by a number of noble Lords. I recognise the force of his argument. We are having cross-government discussions at the moment looking at building regulations. I hope that within a fairly short period of time we will have a positive outcome.
Lord Wilson of Dinton (CB)
My Lords, I am perplexed by the slowness with which we pursue nuclear power. In 1980, the noble Lord, Lord Howell, announced to the House that we would build one PWR a year through the 1980s. I know because I drafted it. But it did not happen. Why is it so expensive and so slow?
Lord Hunt of Kings Heath (Lab)
Oh, my Lords. In 2007, the last Labour Government decided to go back to new nuclear—I was the Minister responsible from 2008 to 2010. We were starting to talk about Hinkley Point C with EDF and about developing a supply chain, and it was not until 2017 that the final investment decision was made. Hinkley Point C had many design changes because it was found that you could not simply take a model from France and put it in Britain without there having to be a lot of changes. However, there were a lot of positives, and it is being built—they are making substantial progress now. The second reactor has been much more efficiently built because they learned from the first reactor. Sizewell C, which will be 3.2 gigawatts, is moving to a final investment decision and will, in essence, be a replica of Hinkley Point C. So, although the noble Lord is right that there has been a lot of delay, I believe we can start to see greater progress. The small modular reactor and advanced modular reactor programmes have great potential for us in this country and for UK companies.
Viscount Younger of Leckie (Con)
My Lords, when it comes to the UK share of the $300 billion, whenever it is paid out to developing countries, which we are all for, can the Minister give some assurances that the money will go to the destinations as directed, and that corruption, which can be prevalent, is taken account of? It may be that the new Government have made a reassessment of that.
Lord Hunt of Kings Heath (Lab)
My Lords, that is a very important point. The integrity of the process is vital in terms of going forward. On our contribution, I think I said earlier that this will have to wait for the multiyear spending review.