Brexit: Environment and Climate Change

Baroness Featherstone Excerpts

Thursday 23rd March 2017 Lords Chamber

[Baroness Featherstone (LD)]

It is an honour to follow the noble Lord, Lord Krebs, who really made my role redundant as he has said everything I would wish to say. On Brexit, of which I am sure it is clear I am not a great fan, I think of the phrase, “How do you eat an elephant? One bit at a time”. This is obviously the environment and climate change bit. I congratulate my noble friend Lord Teverson and the committee on beginning its gargantuan task identifying and categorising the issues and actions needed even to begin to address extracting ourselves from the EU in this regard. I sometimes think that everyone who works on this, whether a remainer or leaver, must have at some point thought, “Wow, it would be much easier to stay”—at least, that is what I hope they think.

I hope and trust that much of what we are about to do will be to recreate what currently exists. My particular portfolio is energy and climate change. I will confine myself to those aspects of the report and perhaps look at some of the compensatory actions that we will need to take. The report rightly says that we have established in UK law our commitment to those measures contained within the Climate Change Act, including the carbon budgets and of course the well-respected Climate Change Committee—thank goodness. As I said, I thought the speech from the noble Lord, Lord Krebs, covered beautifully all the aspects of climate change policy that need to come into play. But while the Climate Change Act protects us to a degree it goes only so far.

The Government have stated on many occasions, in this House and in the other place, that they will uphold their agreements, standards, targets, commitments et cetera, but I confess that I lack confidence in the Government. When we are not held to those standards or targets, when we are no longer monitored by the EU institutions and fail standards enforced by the EU, I fear we will not meet our targets. I fear a decline and a rush to deregulation. I was a Minister in the coalition. I cannot forget those occasions when the Conservative part of the coalition went on and on about deregulation. It was almost a religion with them. Statements made on becoming a virtual tax haven and other comments in that direction do not encourage confidence in the maintenance of standards.

The emissions reduction plan was mentioned by the noble Lord, Lord Krebs. I ask the Minister: where is it? Is it ever disappearing into the future? Although I understand that the Government believe they can hold themselves to account, I do not share that optimism. Sadly, I prefer supranational oversight in this regard. We will need to set up new institutions to deal with compliance, infraction and additional enforcement. There will need to be biting sanctions on non-compliance. If we adopt EU regulations on energy efficiency into our own law, as I think we should, and if we keep up fuel standards for land vehicles and product standards for appliances, we will surely have to comply in order to trade. We need that alignment of standards. The report rightly says that the emissions trading scheme is not super-effective but it is very important. How and with whom will we trade emissions? What will happen about updates to EU regulations? They do not stand still, so even if we adopt them as they are, we will very quickly fall behind on, for example, the energy efficiency directive.

I do not want to just go through the report: it lays out well the areas and issues of importance. I trust that we will work towards reconstituting literally all of this. If this is the opportunity that we are encouraged and enjoined to support, then we have not only to reconstitute outside the EU what we subscribed to and benefited from in the EU but to go further. We need to change gear. There is no sense of urgency currently from the Government about meeting our targets or taking new actions and producing new policies to help us reach the level of emissions reductions that the Paris agreement committed us to. That was not an EU commitment but a world commitment. If the argument that there is a big, wonderful world out there with which to trade is to hold water, we need to capitalise on the economic opportunity that the clean economy offers us. We need to act faster and more urgently to make it clarion clear to the rest of the world that we are open for clean business and completely committed to decarbonisation.

Our future prosperity is going to depend on developing an economy that is innovative, entrepreneurial, internationally open and environmentally sustainable, and one where the benefits of growth are shared fairly across the country and with future generations. Our membership of the EU guaranteed our commitments to the climate change agenda and was a safeguard against this Government or any Government undermining our ability to deliver on our legally binding targets. Will the Minister say, outside the EU, what our guarantor of delivery will be?

We must improve the efficiency of resource use and decarbonise the economy. That will help create high skills and high value-added industries able to compete in the new global markets for low-carbon and resource-efficient products, technologies and services and create jobs throughout the country. It is really as plain as the nose on your face that with the Paris agreement and the sustainable development goals, low-carbon products and services are the future, and that future is worth trillions to this country.

I have to say that the industrial strategy offered by the Government was virtually mute on climate change. We need to establish a clear and consistent commitment to policies that create long-term demand for low-carbon transport and energy efficiency, thus giving investors the confidence they need. And boy, do they need confidence, because thus far this Government have done their best to undermine investor confidence by changing the goalposts. They have taken away from wind and solar subsidies that everyone would agree were necessary to remove in the long term but which, done at a stroke, undermined all business plans—let alone the removal of the £1 billion carbon capture and storage manifesto pledge.

The Government need to strengthen their support for clean innovation and encourage the creation of clean financial products to bring consumer capital into these clean industries. As I am at seven minutes, I will simply thank my noble friend Lord Teverson and the committee for the vital work that they have done. I reiterate, however, that although reconstituting must be mandatory, it is but the minimum needed to drive both our economy and a clean planet forward.

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[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I thank the noble Lord, Lord Teverson, and the sub-committee for holding this inquiry, and for the opportunity for this thought-provoking debate today. Although this has predominantly been an environment and climate change debate, I should declare my farming interests as set out in the register. There have been a number of questions that I would like to reflect upon and, given the hour, write a more detailed reply to. Any questions that I am not in a position to attend to, I shall of course respond to in writing to your Lordships.

The committee highlights the scale and complexity of repatriating environmental policy as we exit the EU. This is not something that the Government underestimate—and the noble Lord, Lord Teverson, elaborated on the range of issues at large. As the committee’s report indicates, it is of vital importance that policy stability is provided as we leave the EU and that no legislative gaps or uncertainties are created. To provide this stability, as noble Lords know, the Government have set out our plans for a repeal Bill that will convert current EU law into domestic law. We will ensure that the environment is properly protected in law and that—I emphasise this—the whole body of existing EU environmental law continues to be given effect in the law of our country, either as it stands or in a manner that ensures that it works as a UK regime.

The department is continuing its work on the operability assessment of EU legislation following exit. This is a matter of process—and I understand the issue, which has arisen before, about one-third and two-thirds. I emphasise that this work is to ensure that the whole body of EU environmental law continues to be given effect in the law of the UK. As I say, it is about ensuring the manner in which it works as a UK regime.

This is also in conjunction with our manifesto pledge to leave the natural environment of this country in a better state than we found it. We want to design an effective approach to driving environmental improvement, tailored to the needs of our country. We will continue to explore the scope for new approaches to regulation which deliver better environmental outcomes, in the context of our commitment to developing a 25-year plan for the environment.

The noble Lord, Lord Teverson—and perhaps the majority of your Lordships—found this more a challenge than an opportunity, but I do think that there are opportunities that we should grasp. We should be positive about our joint determination to improve the environment of this country. That is a great opportunity for us all to work on.

The committee considered the role played by EU institutions in ensuring effective enforcement of environmental protection and standards—I listened very carefully to what the noble Baroness, Lady Sheehan, said—but the UK has always had a strong legal framework for environmental protection which predates our membership of the EU and the oversight provided by its institutions. I was going to refer to the Clean Air Act 1956 as a first example, but my noble friend Lord Caithness took us as far back as the 19th century, when we gave a lead.

I say to the noble Lord, Lord Grantchester, in particular, that we were the first country in the world to introduce legally binding emission reduction targets through the Climate Change Act 2008. Our commitment to the environment can be seen through our action in extending the blue belt: 23 new areas were designated as marine conservation zones only last year. The blue belt now covers more than 20% of English waters, and our record for waters around our overseas territories is also impressive.

In considering the future enforcement mechanism for environmental law, we should recognise the fundamental roles of Parliament, the UK courts and, indeed, the electorate. Parliament is the UK’s supreme law-making body. As we have seen, particularly in this Chamber, it holds Governments to account by questioning and challenging the laws they seek to make and amend. Parliament in turn is accountable to the electorate. Our system of judicial review and its body of public law enables any interested party to challenge the decisions and actions of the Government through the UK courts.

I very much regret the lack of confidence of the noble Baroness, Lady Featherstone, in what I believe are our exceptional UK institutions. The noble Lord, Lord Grantchester, referred to the Thames Water case and the fine of £20 million. I listened very carefully to the commentary of the Environment Agency spokesperson. It shows exactly that such environmental issues are taken with extreme seriousness and rigour in our domestic courts.

Countries that are not EU members are well capable of driving environmental improvements in their countries. Many countries around the world with strong environmental records would think it extraordinary if we were to say to them, “By the way, you need a supranational body and court to ensure that you behave yourself”. They would feel extremely insulted. I will give way, but time is short.

[Baroness Featherstone]

My view was that I prefer the supranational authority to our Government here; I was not referring to other countries. Sadly, my confidence is lacking in this Government.

[Lord Gardiner of Kimble]

I am sorry that the noble Baroness does not have confidence in our institutions, our Parliament and our courts, because that is in effect what she is saying. She is saying that other countries around the world are well able to look after their own environment. In fact, in many cases, as I have described, we are already leading and are recognised as a leader of the world.

The committee is also anxious—rightly—for the Government to make clear what a free trade agreement with the EU will entail, arguing that this will have implications for future environmental policy. We will negotiate for an ambitious free trade agreement that allows the freest possible trade in goods and services with the EU. Trade and environmental considerations are closely related.

We want to ensure economic growth. Development and environmental protection go hand in hand. More trade does not have to come at the expense of the environment, and a healthy environment is in everyone’s interests. We will explore all options in the design of future bilateral trade and investment agreements, including environmental provisions within them.

In respect of the committee’s specific recommendations to review and evaluate the common agricultural policy and the common fisheries policy, I can assure your Lordships that we are assessing all the opportunities for agriculture and fisheries outside the EU. A number of noble Lords raised this, including my noble friend Lady Byford, who particularly raised the importance of a successful agricultural sector, and my noble friend Lady McIntosh of Pickering and the right reverend Prelate the Bishop of Leeds. It is absolutely clear that a successful agricultural sector in this country is compatible and has traditionally, in so many parts of our country, been compatible with a good environment.

The noble Lord, Lord Judd, has always been not only an outstanding champion of Cumbria but also of the national parks, for which it is my great privilege to be responsible at the moment. Farming, landscape, environment, and the agricultural system of the Lake District are absolutely hand in hand and entwined. It has been created by generations of farmers, and it is that agricultural system that has enabled the very designation that we granted to that wonderful part of our countryside.

There is much on which the Government will be working. I would say to the right reverend Prelate the Bishop of Leeds that it is my privilege to sit on the ministerial taskforce on broadband and we are absolutely clear about the need for increasing the rate of superfast broadband in rural areas. We have deliberately trialled the free childcare of 30 hours in rural areas, specifically because we think it is important that everyone in this country has those advantages. We are absolutely clear that, as I say, a great and improved environment and a strong agricultural sector are compatible with each other.

The committee points out a shared interest in maintaining cross-border trade with the EU. The Government agree with that. It highlights the need to co-operate with the EU on environmental pollution—of course, due to its transboundary nature. It is our neighbour and our friend and we should do this.

The committee also expressed some concern that withdrawal from the EU may impact on achieving climate change targets. I can assure noble Lords that we will continue to work closely with EU member states and international partners to tackle environmental issues which demand multilateral co-ordinated action. We will continue to co-operate with the EU on those policy areas where it is important for us to do so, including those issues which have effects across borders.

In relation to achieving carbon targets, I would say to the noble Lord, Lord Grantchester, that the Government remain committed to tackling climate change and to low-carbon, secure and affordable energy and clean growth. While we cannot know at this stage what our precise future participation in EU climate measures may be post-exit, the EU will remain an important partner and we are considering how best to continue to work together.

The committee also urged the Government to engage fully in negotiating and influencing EU environmental proposals for the full term of its membership. It expressed concern about the UK’s influence post-exit at both EU and international level. It also stressed the importance of ensuring that the UK adheres to its international commitments. As long as we remain a member of the EU we will continue to play a full part in its activities and to represent the interests of the British people. My ministerial colleagues and officials continue to play an active role in the EU institutions.

I want to emphasise, particularly because it has been emphasised by three noble Lords—the noble Baroness, Lady Featherstone, the noble Lord, Lord Rees of Ludlow, and the noble Lord, Lord Hunt of Chesterton—that, after our exit, the UK will continue to honour its international commitments. We are party to multilateral environmental and climate change agreements and are bound by their obligations.

We are signatories, for instance, to: the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Paris agreement, which set binding emissions targets; the Convention on International Trade in Endangered Species; the Montreal protocol, with its ban on most ozone-depleting substances and requirements to reduce hydrofluorocarbons—I was particularly grateful to my noble friend Lord Caithness for reminding your Lordships of the London conference, and the advances and all that followed on from that conference; the Convention on Biological Diversity; the Berne convention; the OSPAR Convention on the Protection of the Marine Environment of the North-East Atlantic; and the Basel, Rotterdam and Stockholm conventions, with their restrictions on the movement of hazardous waste and commitments relating to chemicals.

More than just honouring our international commitments, the UK will remain an active country at a global level. The UK has always played a significant role at the international level, whether this be in combating acid rain, or the role that we played last year in extending the Montreal protocol. We have led Europe on issues of environmental protection, let us remember. The Wildlife and Countryside Act 1981 provided protection in UK law for vulnerable species more than a decade before the EU introduced the habitats directive. The committee—I particularly draw the attention of the noble Lord, Lord Grantchester, to this—acknowledged, I believe rightly, the UK’s position as a global leader on climate change. The UK’s acknowledged skills and expertise have been a major factor in developing our influence in international climate and environmental policies. These skills and expertise will stand us in good stead for continuing to influence environmental policies. We will not step back from the international leadership that we have given on climate change.

My noble friend Lord Deben, the noble Lord, Lord Krebs, and the noble Baroness, Lady Brown of Cambridge, are all Members of your Lordships’ House who have been keen leaders in ensuring that, through all our efforts, we are better with our mitigation and our adaptation. I thank the noble Lord, Lord Krebs, who has recently handed over to his very worthy successor, the noble Baroness, Lady Brown of Cambridge, the chair of the Adaptation Sub-Committee.

The noble Lord, Lord Krebs, mentioned the UN Framework Convention on Climate Change, and we will continue to remain a very strong partner in that. We are now considering how best to take forward that continued engagement. The UK remains committed to international efforts to tackle climate change, and working with the EU will remain as important as ever. We will also continue to strengthen our relationship with other partner countries and work through multilateral groupings such as the G7, G20 and the Commonwealth.

The noble Lord, Lord Rees of Ludlow, referred to the Copernicus project; I think that this country has had a proud history of leading and supporting cutting-edge research, and the noble Lord knows more about that than almost anyone. As we exit the EU, Her Majesty’s Government welcome agreement to continue to collaborate with our European partners on major science research and technology, so this is very much on the radar as we move into the negotiations.

A number of your Lordships, including the noble Lords, Lord Grantchester and Lord Teverson, and my noble friend Lady McIntosh of Pickering, asked about resources, particularly for my department. The committee identified the resource pressures associated with maintaining environmental legislation. The Government are absolutely aware of the implications of EU exit for, in particular, my own department’s work programmes. I can assure your Lordships that Defra’s work programmes and recruitment plans are kept continually under review to ensure that we are staffed to deal with the tasks at hand. We have set up an EU exit programme to help co-ordinate, plan and assist several key work streams and are identifying and filling vacancies on a rolling basis—it has been my privilege to work with many of the officials; their commitment has been 110%, they are working extremely hard and effectively, and I congratulate and thank them.

The committee also raised concerns about the potential risk of divergent approaches to environmental regulation across the United Kingdom. I assure the noble Lord, Lord Grantchester, and all your Lordships that it is absolutely clear that Defra must work closely with the devolved Administrations, as it is doing. We will work in partnership with the devolved Administrations as we form our negotiating strategy for exiting the EU. It will be important to ensure that no new barriers to living and doing business within our union are created. That means maintaining the necessary common standards and frameworks for our own domestic market, empowering the UK as an open, trading nation to strike the best trade deals around the world and protecting the common resources of our islands.

A number of questions were raised. Time is pressing but I wish to respond to my noble friend Lady McIntosh of Pickering, who mentioned the EIB. The Government are in the process of assessing the contribution that the EIB makes. However, we are clear that the future relations between the UK and the EIB will be a matter for the Article 50 negotiations. Again, this is very much on the radar. The actual form of a dispute resolution in future relationships with the EU will also be a matter for the negotiations as they proceed.

A number of other points were raised and I will need to reflect on a considerable number of them and get back to your Lordships. I look forward to the debate on agriculture when your Lordships’ committee brings that forward. However, we have made sure that the current levels of funding for farmers are assured until 2020. Existing environmental stewardship and countryside stewardship agreements are fully funded for their duration. Clearly, we will have a major task in bringing forward our proposals for ensuring that our farmers have a vibrant future in an enhanced environment.

I hope that this has not been an unnecessarily pessimistic debate and wish to emphasise some of the significant gains that this country has achieved in improving its environment. The water environment is in its healthiest state for 25 years, with otter, salmon, sea trout and other wildlife returned to many rivers for the first time since the Industrial Revolution. We have had successful reintroductions of species such as the large blue butterfly, the red kite and the short-haired bumble-bee. We have seen many declining species such as cirl bunting, stone curlew, chough and bittern start to recover, although clearly there is very much more to do. We have an opportunity to develop an environmental policy that is bespoke to our country. We must grasp that opportunity, whatever our opinion of what happened last June. We can unleash the full potential of this country and develop innovative and efficient policies that will enable us to continue working globally on environmental protection.

I again commend the noble Lord, Lord Teverson, and his committee on producing this report. It will continue to be of great value as we proceed in securing our objective to enhance the natural environment of our country and leave it in a better state than the one in which we found it. Working together—I emphasise “together”—let us ensure that there is a better environment for all. We should address with clear purpose the adaptation and mitigation of climate change—causes on which we can all unite.