Methane (Environment and Climate Change Committee Report)
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The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)
My Lords, it has been an interesting debate. Like members of the Grand Committee, I am grateful to the noble Baroness, Lady Sheehan, for initiating the debate and her chairmanship of the Environment and Climate Change Committee. The committee’s report on methane emissions has shed light on one of the most pressing challenges we face in the pathway to net zero. I thank all noble Lords who took part in the production of the report, as well as those who participated in this well thought-out and thorough debate.
I go back to the beginning, the noble Baroness’s speech, when she referred to the outcome of the Select Committee report as being a message of hope. I agree. I should also go back to what the noble Lord, Lord Trees, and other noble Lords pointed out about the reduction in methane emissions, which must be counted. While there can never be complacency in this area, this has to be counted as a significant achievement by this country.
I also accept the point from the noble Baroness, Lady Sheehan, that we need to keep up the momentum. As noble Lords have said, the science on this is unequivocal: methane is responsible for almost one-third of global warming since the Industrial Revolution. However, as the noble Baroness explained, it remains in the atmosphere for only a fraction of time—approximately 12 years. Therefore, reducing those emissions is one of the fastest ways that we can avert one of our most acute climate change risks and keep the Paris Agreement in reach, which is a fundamental global challenge that we face.
The independent advice from the Climate Change Committee ahead of our next carbon budget sets a cross-economy pathway to reduce emissions, including measures that contribute to the reduction of methane emissions. We are considering the recently received Climate Change Committee’s report and we are bound to respond by summer 2026.
Let me make this clear. The noble Lord, Lord Jay, asked whether we are absolutely committed to net zero. The answer is yes; we have to be: the science about the impact of climate change is so convincing. We have to stay determined. One of the tragedies of current political discourse is that there have been so many attacks on net zero. The ludicrous idea that the measures being taken on net zero have led to damage to our economy is so nonsensical, because the one thing on which I am clear is that the big issue on energy prices has nothing to do with the policies that have been taken on net zero but everything to do with our vulnerability to the international fossil fuel market.
In February, the CBI produced a report on what I think was described as the green economy. A 10% increase in the green economy in 2023 compares to a very modest increase generally, and nearly 1 million people are employed in the green sector overall. One can make a very convincing argument that investing in net zero, which we have to do, is actually a way to kick-start growth in the economy. We have this mission statement and I have taken part in a number of cross-government discussions over the last few weeks: the Government are absolutely committed. I take the point from the noble Lord, Lord Roborough, that we need a practical approach to making progress, but there cannot be a let-up in the drive to net zero.
This is the context in which we need to consider the recommendation of the committee to which noble Lords have referred and the question of an action plan. It is obvious that the response given in our written report is disappointing, and I am sorry that I am not in a position to overturn that in the light of your Lordships’ contributions. However, we basically believe that this is covered in our existing delivery plan for carbon budgets. The point I make is that carbon budgets are the very engine room of our pathway to net zero. We are absolutely committed to including key methane policies in the carbon budgets plan, covering the period up to 2030, which will contribute to the Global Methane Pledge.
Under the Climate Change Act, legally binding carbon budget targets require domestic reductions across all greenhouse gases, including methane, to keep us on track to meet net zero. As I have said, we are committed to a progress report in relation to the fourth, fifth and sixth carbon budgets, and we have just received the advice from the Climate Change Committee in relation to the seventh carbon budget.
On the EU and UK trading emissions system, at this stage all I can say to the noble Earl, Lord Russell, is that we understand the importance of what he is saying. We are in discussions at the moment, but I am afraid that I cannot go any further at this point.
We had very interesting insights into agriculture. It is the largest source of UK methane emissions, and we were treated to expert interventions from my noble friend Lord Grantchester, the noble Earl, Lord Leicester, and the noble Lord, Lord Roborough, who all made important points. I very much take the point made by the noble Lord, Lord Roborough, about the impact of measures on food prices. This is clearly a tension that Governments have been facing for many years, which also relates to the issue of welfare standards, as well as comparisons between this country and others, and it feeds into discussions on trade. It is a very difficult and challenging issue.
It is right to place on record my gratitude to the National Farmers’ Union for its valuable contribution to the Select Committee. I certainly appreciate the efforts of farmers in this area and find no attraction whatever in a punitive approach. When I was a Minister in Defra—I had a joint ministerial job across Defra and DECC, as it was called in 2008—I took part in discussions with the NFU on reducing emissions in the agricultural sector. I think it is right to say that it gladly took part in those discussions, and that co-operation has continued.
We are committed to introducing a land use framework, which will make environmental land management schemes work for farmers. Defra is also looking at a number of other measures to reduce emissions from livestock, alongside the upcoming food strategy and farming road map. I am afraid that I cannot give a definite date to the noble Baroness, but we think that this will be a credible plan to reduce food and farming emissions by working closely with stakeholders.
The noble Lord, Lord Trees, made a number of comments about accurate reporting, and other noble Lords added to those discussions. There was reference to recommendation 7, in which the Select Committee asked the Government to move unilaterally to an auxiliary metric. It also asks us to play an active role in international discussions as the UN Framework Convention on Climate Change considers the need to review those common metrics by no later than 2028.
There are two points to be made here. It is clearly important that we have international reporting and that there is consistency in that. I take the point that some noble Lords here are critical about some of the standards of that reporting. However, I say to noble Lords—including my noble friend Lord Stansgate—that we will take an active role in UNFCCC discussions on common metrics. The agenda item will be continued in June 2027, and we will continue to be led by the best available science and international consensus. I have taken note of a number of comments made today by noble Lords.
On my noble friend Lord Grantchester’s comments on the dairy demonstrator project, I cannot go further than our response to recommendation 12. However, that project has now commenced, following the signing of the contract, and we will obviously watch its progress with a great deal of interest.
On the comments made by the noble Earl, Lord Leicester, I take his point about the important role that anaerobic digestion has to play in meeting net-zero goals. We think that, with the right standards of controls in place, it presents opportunities for improved nutrition management, nutrient management and a nutrient circular economy. There are, as he knows, challenges in relation to the risk of improper management, which can lead to issues with environmental risk. However, we certainly think that it has a role to play, and I will take note of the noble Earl’s comments.
The noble Lord, Lord Ravensdale, made a number of interesting comments too. I was especially interested in the points he made about regulators. Clearly, in a field where a number of regulators come into play, the key is to make sure that they work together and that there is no overlap or duplicated approaches. We have announced plans to conduct an internal review of regulations and regulators at Defra, which should help the noble Lord in that area.
I can say to the noble Lord, Lord Roborough, on fossil fuels and the role of the North Sea, that clearly this has been a crucially important sector of our economy for many years. We still have many highly skilled people working there, but we lost 70,000 people in the last 10 years under the previous Government. It is called a super-mature basin, and it is declining. Oil and gas have a role to play in the future, but we are right to go for a balance between different technologies. The emphasis we are making on nuclear as a baseload and putting huge effort into renewables, while having gas as a strategic reserve, is the right way to go forward.
On venting and flaring, which noble Lords have raised before both in the Chamber and here, my understanding is that the regulator is already taking action to increase transparency and accountability. In March 2024, the North Sea Transition Authority published its emissions reduction plan, requiring industry to reduce flaring and venting.
I am not sure for how long I am allowed to speak here, but I will just turn to international leadership. Noble Lords have said that the UK is in a great position to exercise international leadership, and I agree with that prospect. It is on a par with the country being the first major colony to establish a net-zero target in law, and I pay tribute to the noble Baroness, Lady May, for her leadership, which her party unfortunately seems to have forgotten in its fast retreat from net zero. I regret that, because the loss of consensus is a serious matter for the country and the future. We saw that at the local elections recently, during which net zero was attacked by some political parties.
It is important that we maintain our leadership. During the COP 26 presidency, as the noble Baroness said, we were one of the first countries to join the Global Methane Pledge. We are stepping up our efforts to deliver on the pledge through funding to support developing countries. We were one of the 30 signatories to the Declaration on Reducing Methane from Organic Waste at COP 29. Now, of course, we are thinking about COP 30 in Brazil, which is only a few months away, and we are working very hard with the COP 30 presidency, as noble Lords have suggested.
From the Government’s point of view, this is a very interesting report. I know that noble Lords are disappointed with one or two of our responses, but the overall response accepts that this is a thoroughly prepared and researched report. As the noble Earl, Lord Leicester, said, the witnesses came from a wide variety of backgrounds. It is clear that the committee had to give a great deal of thought to the recommendations; we should acknowledge that. We accept the core thrust of the report. Although I have disappointed noble Lords again tonight in relation to the action plan, there will be no lack of action by the Government in responding and in making sure that we make progress on methane reductions, but we think that the carbon budget process is the right way to go forward.
In conclusion, I thank noble Lords for what has been a really fascinating and helpful discussion; I can assure noble Lords that it will inform policy development in future.