Retrofitting Buildings: National Strategy

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Duncan of Springbank

Thursday 9th June 2022 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

I cannot answer that specific point but, if the noble Lord had been present yesterday at the University of Birmingham’s presentation on this, he would understand that a lot of what it discussed was in exactly this area. It went on to say that more power should be devolved to local authorities to bring forward the retrofitting of buildings. But companies like Vaillant and Cadent are doing an awful lot of research into retrofitting and adapting to the future possibility of using hydrogen in the heating system, which will also help to decarbonise it.

[Lord Duncan of Springbank (Con)]

My Lords, I will pick up on a point from the noble Baroness, Lady Blackstone. It is estimated that only one in six manage to secure tradesmen qualified to install under the green grant scheme, which is an extraordinarily low figure. How do we know that it will improve? What measures are the Government bringing in to improve it, and how will we measure that?

National Grid: Capacity

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Duncan of Springbank

Monday 11th January 2021 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Lord is absolutely correct; the commitment to build the national thermal hydraulics facility was made when we launched the nuclear sector deal in November 2018. It remains the Government’s ambition to do so. The issues recently identified, which have resulted in conversations about this, relate to the need of the Rolls-Royce-led UK SMR consortium to have a slightly larger facility delivered sooner than had been proposed in Ynys Môn. The UK and Welsh Governments are in discussion about how to resolve the planning and timing issues quickly, and they may be able to start the construction of just the facility needed for the Rolls-Royce machine before they proceed with the rest of the site.

[Lord Duncan of Springbank (Con)]

I draw the House’s attention to my register of interests. The UK Government are committed to a gigawatt-scale nuclear future, but there are now some 72 SMRs in 18 countries. What can we learn from the work that is being done elsewhere, and how can we facilitate the exchange to ensure that we are benefiting from the pace of the fastest in the moving camel train?

[Baroness Bloomfield of Hinton Waldrist (Con)]

My noble friend is absolutely right that the UK is still one of the front-runners of the development of SMRs, because we acknowledge that SMRs and, indeed, advanced modular reactors will also play an important role as a low-carbon source. The Government announced a £385 million advanced nuclear fund in the energy White Paper, which will support the research and development of both SMRs and AMRs. Of course, we watch with interest the development of other research projects abroad.

Greenhouse Gas Emissions Trading Scheme Order 2020

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Duncan of Springbank

Tuesday 27th October 2020 Grand Committee

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank noble Lords for their valuable contributions to this short debate, and for their broadly supportive comments on carbon pricing and this SI. I recognise the strength of feeling about the carbon emissions tax and reassure noble Lords that no decisions have been taken about it; I shall certainly make sure that their voices are heard.

The noble Lord, Lord Bilimoria, raised the need to ensure that our heavy industrial emitters receive free allocation to ensure competitiveness. Free allocation of allowances will continue to be the main policy instrument through which carbon leakage risk and competitiveness impacts are addressed in the UK emissions trading scheme. Our initial UK ETS free allocation approach will be similar to that of the EU ETS period 2021-30, to ensure a smooth transition for participants for the 2021 launch. In 2019, the value of those free allowances given to the UK installations was over £1 billion, taking an average EU allowance price of £22. The Government also compensate some energy-intensive industries for the indirect cost of the ETS and other climate policies passed on to electricity prices.

The noble Lord, Lord Bilimoria, also mentioned the CBI’s heat commission report. I welcome his commission’s thoughtful recommendations on how to decarbonise this too often forgotten sector, which the noble Baroness, Lady Bennett of Manor Castle, described as a Cinderella sector. As he will know, industrial heat processes are within the UK ETS, but heating in domestic and non-domestic buildings is not. The Government plan to publish a heat and building strategy in due course that sets out our immediate and long-term actions for decarbonising heating in buildings. An industrial decarbonisation strategy will be published in the spring.

My noble friend Lady McIntosh raised a series of important and detailed questions. Given time constraints, I will be happy to respond to them in writing, but she also raised the impact of Covid on the aviation sector, as did other noble Lords. Our absolute focus in government at this time is combating Covid-19. We recognise the challenges that Covid-19 has caused the aviation sector and are working closely with the industry to provide support, but it is important that we continue to work on our longer-term priorities, including tackling climate change. There should be a minimal impact on the sector, as the UK ETS will ensure that aircraft operators continue to face obligations for emissions on UK routes that will no longer be part of an EU ETS.

The noble Baroness, Lady Bennett of Manor Castle, rightly said that we should question whether we are going far enough. That is the right question to ask and why we are committed to consulting within nine months of receiving the Committee on Climate Change’s sixth carbon budget advice, to ensure that the cap is net-zero consistent.

My noble friend Lord Moynihan, the noble Baroness, Lady Bennett, and the noble Lords, Lord Bilimoria, Lord Bradshaw and Lord Grantchester, all raised linking a UK ETS with the EU ETS and the status of negotiations with the EU. As noble Lords will appreciate, negotiations are still ongoing and it would clearly be wrong of me to prejudice the outcome of those discussions. We are continuing discussions with the EU on carbon pricing, and we have also been clear with the EU that we are open to considering a link if it is in both sides’ interests. We have been clear that, whatever decisions we take on carbon pricing and whatever the outcome of those negotiations, we will ensure that the UK will have an ambitious carbon pricing system, in line with our net-zero commitments.

The noble Lord, Lord Grantchester, asked why the cap, while 5% lower than the EU ETS, has been set at 156 million tonnes above current emission levels. The cap we are setting at the start will enable a smooth transition from the EU ETS to the new UK ETS to provide certainty for business. Demand for allowances is expected to come from the banking of allowances for future years or as a hedge against price increases. As such, some headroom is crucial to allow for these behaviours to continue without risking price spikes in the early years of the system. This has been acknowledged by the Committee on Climate Change in its advice to us. This initial cap is already more ambitious than the UK’s notional share would have been if we had stayed in the EU ETS. I reassure the noble Lord that once we have received the Committee on Climate Change’s advice on the sixth carbon budget, we will consult next year on a net-zero consistent cap. It would not be right to set the level of the cap before we have received this advice, but I reassure him that we are seized of the urgency of making this decision once this advice has been received.

I confirm to my noble friend Lord Moynihan that international credits cannot be accepted for compliance with the UK ETS. This is the same as would have applied in the EU ETS during the same period. With the UK ETS we will continue to lead the world in carbon pricing, which is why we plan for the UK ETS to be the first truly net-zero consistent emissions trading scheme.

My noble friend asked how the devolved Administrations will be actively involved in the decision on the eventual carbon pricing mechanism. This concern was also raised by the noble Lord, Lord Bradshaw. We have worked closely with the devolved Administrations throughout the development of the UK ETS. Their views on the ETS and the potential carbon emissions tax have been communicated clearly and are understood by the UK Government. The final policy decision will be made collectively by the UK Government, but with full consideration given to the devolved authorities’ views. We will of course work with them to ensure that they have the support needed to implement either policy option.

My noble friend also asked for the likely date of the first UK ETS auction in 2021 and about the operation of a market stability reserve. The current proposed timing for introducing UK emissions allowance auctions is the second quarter of 2021. We will not bring in a supply management mechanism like the MSR from day one because an SAM cannot be operational in a stand-alone UK ETS until approximately mid-2022. This is due to the requirement for at least one year of verified UK emissions data. We will have a transitional auction reserve price in place to prevent very low allowance prices and ensure minimum price continuity. We will consult separately on the design of a stand-alone SAM if it is required in due course.

The noble Lords, Lord Grantchester and Lord Bradshaw, and others asked questions about whether the Government will proceed with the UK emissions trading scheme or a carbon emissions tax. We understand businesses’ need for policy certainty and will provide it as soon as we can. This instrument is required to establish a UK ETS, either stand-alone or linked. It is critical to ensure that this can be delivered for the end of the transition period.

I think I have answered most questions. I will read Hansard and, if I have not, I will reply in writing.

This Order in Council, laid under the Climate Change Act 2008, establishes a UK-wide greenhouse gas emissions trading scheme, which will drive cost-effective emissions reductions across our intensive industries, and our power generation and aviation sectors. As we reach the end of the transition period, this legislation will ensure that the UK has a domestic carbon pricing policy fit for the net-zero future that we have led the world in committing to. The UK was a pioneer in carbon pricing and trading almost 20 years ago and has taken a leading role in the continued development and improvement of the concept through our participation in the EU ETS. We have therefore designed the system with the benefit of that knowledge and experience.

In this way, many features will be familiar to businesses. We will fulfil our promise of a smooth transition to our future carbon pricing policy. At the same time, launching a UK ETS will allow us to have autonomy to pursue our climate goals in the way that works best for UK. In some areas, we have already taken the opportunity to make the system work better for the UK and we will continue to do this as the UK ETS evolves over time. Most crucially, we will consult on aligning the emissions cap of the UK ETS with our net-zero commitments. We will seek to implement changes by January 2023 and no later than January 2024.

Alongside the UK ETS, the Government have an ambitious range of policies in place to help industry to reduce cost and decarbonise while supporting a clean, green recovery from Covid-19. These schemes must of course be supported by an effective carbon pricing policy. With the EU ETS having covered around a third of UK emissions between 2013 and 2020, carbon pricing is a key tool for achieving our carbon emission reduction targets at the least cost to business.

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

As a point of clarification, one of the difficulties we have in hybrid sittings is that those present cannot be permitted to follow up and ask additional questions, simply because those participating remotely cannot do so. But should any of those present wish to pursue these matters with the Minister I am sure she would be amenable—I can see her happy smiling face—to doing that should it be required.

Agriculture Bill

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Duncan of Springbank

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Tuesday 22nd September 2020 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, we can be rightly proud that the UK already has world-class animal welfare standards, but this Government are committed to strengthening these further.

We have introduced a ban on the commercial third-party sale of puppies and kittens, known as Lucy’s Law, to clamp down on puppy farming. Through the Wild Animals in Circuses Act 2019, we have legislated to ensure that wild animals can no longer perform in travelling circuses. We supported the Animal Welfare (Service Animals) Act 2019, commonly known as Finn’s Law, to increase protections for police animals, and CCTV is now mandatory in all slaughterhouses in England; this will help maintain and improve welfare standards. We are committed to banning the keeping of primates as pets. We published a call for evidence in October 2019 that ended in January this year. This exercise has informed proposals on which we will shortly be consulting. On Thursday, we reiterated our manifesto commitment to end excessively long journeys for slaughter and fattening.

I agree with the noble Lord, Lord Inglewood, that legal obligations towards animals should be enforced. That is why the Government are also supporting the Animal Welfare (Sentencing) Bill, which will increase the maximum custodial penalty for animal cruelty offences from six months’ imprisonment to five years. The new maximum sentence will send a clear signal to any potential offenders that animal cruelty will not be tolerated in this country and provide one of the toughest sanctions in Europe.

I place it on record that it has never been in dispute that animals are sentient beings, capable of experiencing pain or suffering, and this fact is central to our commitment to strengthening animal welfare standards. As the noble Baroness, Lady Parminter, should know, this Government have a manifesto commitment to introduce new laws on animal sentience, which we will do as soon as parliamentary time allows. However, this Bill is not the appropriate vehicle to legislate for animal sentience. As the noble Baroness recognises, the Agriculture Bill limits the scope of this amendment to agricultural, horticultural and forestry policy.

The noble Baroness’s amendment also extends the definition of “animal” to include decapod crustaceans and cephalopod molluscs, alongside non-human vertebrates. This is an important step that we should not take lightly. The current science is clear that vertebrate animals can experience pain and suffering. It is on that basis that the definition of “animal” in the Animal Welfare Act 2006 is limited only to vertebrate animals. However, this Act also contains an important power to extend the definition to cover invertebrates where we are satisfied on the basis of scientific evidence that these too are capable of experiencing pain or suffering. Defra recently commissioned an independent external review of the available scientific evidence on sentience in decapods and cephalopods. The outcome of this review will be vital in determining whether our new sentience provisions and other laws should be extended to decapods and cephalopods. This review is expected to report early next year.

In line with our manifesto commitment, this Government will introduce effective, credible and proportionate proposals in due course. I recognise the strength of feeling across the House on this issue, and say to my noble friends Lady Fookes and Lady Hodgson, and to the noble Lord, Lord Judd, that it is imperative that we allow appropriate time for debate to ensure that we get these important measures right. That is why I cannot accept this amendment as an interim solution, as was suggested in last Thursday’s debate.

As noble Lords will all be aware, parliamentary time has been at a premium in recent sessions, and I am afraid that, with other pressures, it has not yet been possible to find appropriate time to introduce these measures. However, I reassure your Lordships that this issue is a priority for this Government, and I hope that that gives the noble Baroness, Lady Wilcox, some comfort. When our measures are introduced, I very much look forward to discussing these issues in detail again.

I hope that I have given enough reassurance and that my noble friend will feel able to withdraw her amendment.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

I have received no requests to speak after the Minister, so I call the noble Baroness, Lady Hodgson of Abinger.