Net-zero Carbon Emissions: Behaviour Change
Baroness Sheehan Excerpts(3 years, 2 months ago)
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Baroness Sheehan (LD)
My Lords, it is a pleasure to follow the noble Baroness, Lady Jones of Moulsecoomb, and I totally agree with her that we must have a sense of urgency in taking action now. I add my thanks to the noble Baroness, Lady Blackstone, for introducing this debate and bringing it to us. It is so important, and I was very impressed with the way she introduced it.
It is self-evident that we will all have to start doing things differently if we are to stand any chance of keeping warming within the aspirant 1.5 degree target agreed at Paris. The Climate Change Committee’s report to Parliament in June this year said that profound changes in behaviour and high-impact action from consumers, workers, households, businesses and citizens are needed to reach the target. However, there is one other crucial sector that has to step up to the plate and change its behaviour if we are to have any success whatever in asking others to change theirs. I am speaking, of course, of Governments.
My remarks will concentrate on the importance of the Government leading by example. Time and again, they have demonstrated that the left hand does not know what the right hand is doing. All too often, they seem to be engaged in a tug of war. Government departments are pulling in opposite directions. They seem to be acting in a contradictory manner and sending mixed signals to all the other sectors.
Let me take policy on fossil fuels as a glaring example. In its sixth assessment report, published last month, the IPCC makes it crystal clear that fossil fuels must stay in the ground if we are to stay within the 1.5 degree warming limit. The International Energy Agency states in its report Net Zero by 2050: A Roadmap for the Global Energy Sector that the necessary wide-scale transformation of the sector dictates that reliance on fossil fuels must cease almost completely by 2050.
The IPCC and the IEA are agencies whose reports are underpinned by rigorous scientific evidence, yet the Government appear to be in hock to the fossil fuel lobby. How else does one explain their willingness to toy with giving the go-ahead to the new Cumbrian coal mine and the expansion of the Cambo oilfield to the west of the Shetlands? How else does one explain the report in the Guardian six days ago that:
“Ministers, including the business secretary, Kwasi Kwarteng, held only seven private meetings with renewable energy generators between July 2019 and March 2020 compared with 63 with fossil fuel producers”,
among them controversial biomass interests? When will the Government make it clear that the era of fossil fuels is over in the UK? When will we finally draw a line under the anachronistic MER policy, which says that the UK Government must maximise economic recovery of oil and gas in the North Sea?
Surely tidying up our policy on the extraction of fossil fuels will send a message to countries such as China and India that we mean what we say about being a world leader on climate action. What a fillip it would give to COP 26, which is just a few weeks away, if we were to signal our intent to phase out fossil fuels. The industrial economy based on fossil fuels started here. Let us end it here too.
I am going to give other examples of where behaviour change on the part of the Government is necessary, and where questionable policy changes that they have made ought to be reversed. Why is it that sectors that pollute receive far greater subsidies than sectors that do not pollute as much—for example, road tax and fuel duty freezes versus train and bus fare increases; subsidies that airlines receive on fuel versus train fares; and keeping gas prices low at the expense of cleaner electricity?
Subsidy reform would be a great tool, as a carrot and a stick, to push forward behaviour change. Businesses and consumers will change their behaviour when they see that the Government are also getting their house in order. Indeed, government actions signalling policy certainty are a prerequisite for business to change.
My noble friend Lady Randerson also impressed on us the importance of tackling transport emissions, and I shall end with a few words about a simple, proven, popular and cheap measure that the Government could take which would signal their willingness to encourage the behaviour change needed to get more people out of their cars and walking or cycling instead. Introducing 20 mph speed limits on roads where people live and work has been shown to do just that. Introducing such a limit in one fell swoop would reduce the number of vehicles on our roads, reduce fine particulate matter from brake and tyre wear, reduce the number of people killed and seriously injured and reduce demand on the national grid. Surely this is a measure that is a compelling candidate for encouraging people to embrace behaviour change.
Deep Seabed Mining
Baroness Sheehan Excerpts(3 years, 2 months ago)
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Lord Callanan (Con)
It is important to say that there are no mining projects ongoing at the moment; there is a discussion about possible mining projects in future. Our position is that we need to ensure that, before any projects take place, strong environmental regulations and controls are put in place, and we are playing a critical role in helping to ensure that.
Baroness Sheehan (LD)
My Lords, yesterday the congress of the IUCN, the International Union for Conservation of Nature, agreed the wording of a motion calling for a moratorium on deep seabed mining. How do our Government plan to vote on that?
Lord Callanan (Con)
We are engaging closely in the process. We will possibly abstain on the final resolution, but we are working closely with our international partners to drive this and ensure strong and sustainable progress.
Net Zero Test
Baroness Sheehan Excerpts(3 years, 4 months ago)
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Lord Callanan (Con)
I do not agree with the noble Lord. Of course, local authorities are critical in terms of delivering this agenda and I have many meetings with them to discuss a number of the grand schemes for which I am responsible. We have spent something like £1.2 billion in dedicated funds given to local authorities through the local authority delivery scheme and the public sector decarbonisation scheme to help them in this job.
Baroness Sheehan (LD)
My Lords, the Government’s remit to the Oil and Gas Authority is MER, maximising economic recovery—also known as “drill every last drop”. The Government’s continued support for this policy leaves them open to applications such as the Cambo oilfield, which one trusts they will turn down. May I ask the Minister how the MER policy is compatible with our net-zero targets, given that existing oilfields already in production will take us over our agreed NDC?
Lord Callanan (Con)
The independent Committee on Climate Change recognises that there is an ongoing role for oil and gas, and we are working hard to drive down demand and emissions. The updated Oil and Gas Authority strategy includes a requirement for industry to “take appropriate steps” to support the delivery of the net-zero target—and, of course, we have put forward the ambitious decarbonisation plan for the North Sea. With regard to the Cambo field, Shell and Siccar Point have put forward a development proposal seeking consent, with an intention to commence production in 2025. This is not a new project; it was licensed in 2001 and 2004 and is going through the normal regulatory approval process.
Human Rights Due Diligence
Baroness Sheehan Excerpts(3 years, 4 months ago)
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Baroness Sheehan
To ask Her Majesty’s Government what plans they have to make human rights due diligence mandatory for businesses, in particular those engaged in forest risk commodities.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, the Government expect businesses to target their human rights due diligence approaches according to the UN Guiding Principles on Business and Human Rights. We currently have no plans to make this mandatory because there is existing legislation which holds businesses to account on human rights. All UK quoted companies are required to report on relevant human rights issues in their annual reports, and large businesses must publish supply chain transparency statements on steps they take to prevent modern slavery.
Baroness Sheehan (LD) [V]
My Lords, I thank the Minister for his reply. The European Commission plans to publish its sustainable corporate governance proposal this autumn, and UK companies operating in the single market would fall into its scope. I hear what the Minister says about the Government having no plans, but what consideration are they giving to keeping pace with the European Commission? Does he really believe that the current law is satisfactory to enable business practices to ensure that all commodities and services are subject to human rights and environmental due diligence processes?
Lord Callanan (Con)
Of course, we will keep these matters under review, but we believe that mandating compliance presents some practical challenges in definition, enforcement and so on. However, we will of course keep it under review.
Hydrogen Economy
Baroness Sheehan Excerpts(3 years, 4 months ago)
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Lord Callanan (Con)
My noble friend makes extremely good points. We have a number of world-leading companies in these fields. Indeed, I was able to visit JCB a few weeks ago, and drive a hydrogen digger—also without apparent accident, which is quite amazing. A number of other companies are also developing excellent, innovative products in this field. We have some world-leading companies but, as I said in a previous answer, our hydrogen strategy will indeed be published in due course.
Baroness Sheehan (LD)
My Lords, the energy White Paper pledges to establish the UK as a world leader in the deployment of carbon capture and storage and clean hydrogen. This clean hydrogen is, in fact, blue hydrogen, which is a by-product of the fossil fuel industry. Does the Minister believe that CCS, the process that is supposed to render blue hydrogen clean, is proven at scale and, if so, can he name just one example?
Lord Callanan (Con)
There are a number of demonstration projects around the world on CCS, but we need to demonstrate it at scale and, as the noble Baroness will be aware, we will shortly be announcing our first CCUS clusters in the UK.
Covid-19: Vaccine Production
Baroness Sheehan Excerpts(3 years, 5 months ago)
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Baroness Sheehan
To ask Her Majesty’s Government what progress they have made in discussions with members of the World Trade Organization to facilitate increased production and supply of COVID-19 vaccines.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, the UK is proud to be playing a global leading role in the development and distribution of coronavirus vaccines. What is now needed most is the scaling up of existing and new vaccine production to achieve equitable, affordable access for all. We continue to engage actively and constructively at the WTO regarding increasing the production and supply of Covid-19 vaccines.
Baroness Sheehan (LD)
My Lords, the temporary TRIPS waiver proposed by South Africa and India to the WTO is supported by the US and France, as well as the leaders of the COVAX initiative—Gavi and the WHO—which has proven entire-chain processes that deliver to the last mile. Does the Minister agree that the counter-proposal by the European Commission to encourage voluntary action and reliance on compulsory licences is a red herring, because both options already exist? Millions of people have died while we rely on the good will of big pharma, which has yet again failed the humanity test.
Lord Callanan (Con)
I am afraid that I do not agree with the noble Baroness. We are working with industry, the COVAX Manufacturing Task Force and the ACT-A Vaccine Manufacturing Working Group to champion other routes to scale up capacity and engage on forward supply chain planning in order to accelerate and progress vaccination programmes across the world. We think that is the best way forward.
Climate Change: Targets
Baroness Sheehan Excerpts(3 years, 6 months ago)
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Baroness Sheehan
To ask Her Majesty’s Government what plans they have to ensure that legislation aligns with their ambition for the United Kingdom to be a global leader in achieving its climate change targets.
Baroness Sheehan (LD)
My Lords, I start by thanking all noble Lords who will be speaking in this debate. I look forward to their contributions, which will fill in some of the gaps left by mine.
This year presents a unique opportunity for the UK to really grasp the nettle of collaborative global action on climate change. It is an existential issue for our planet and we owe it to our children and future generations to get this right. For us to lead the world we must, when all eyes are on us, present a clean domestic scene, which means some good housekeeping. My husband will testify that I am no domestic goddess but I can dust—maybe not behind fridges—and I can hoover a bit. So let me tell noble Lords why I think a bit of housekeeping is in order.
During my time as Lib Dem spokesperson for international development I came across various anomalies, the most egregious of which was the fact that at the same time as we were spending ODA to combat dreadful climate-related disasters overseas, such as the effect of famine in the Sahel due to increasing desertification, we were also investing in new fossil fuel infrastructure in Africa and elsewhere in the world, including in the North Sea. What really struck home was the injustice of those least responsible for climate chaos being the ones who suffer most.
According to Global Justice Now, since the 2015 Paris Agreement was signed, approximately £568 million of UK aid has been invested in fossil fuel projects overseas. If we include export credits provided by UK Export Finance for fossil fuels, that figure rises to £3.9 billion. This makes a nonsense of our commitments to tackling climate change—not just the Paris Agreement but the sustainable development goals and our own Climate Change Act. We cannot be serious about keeping global temperature rises to between 1.5 and 2 degrees centigrade, or about domestic net-zero targets, if we continue to export fossil fuel infrastructure, the ultimate source of the problems we face today.
The situation is worse than that. Our domestic legislation has incoherencies that reverberate here at home. In 2019 I tabled my Private Member’s Bill, the Petroleum (Amendment) Bill, the essential aim of which was to stop the issuance of new licences for oil and gas exploration, to put in place plans to safeguard jobs and livelihoods of communities as we start to phase out existing fossil fuel infrastructure, and to stop UK support for new fossil fuel projects abroad.
For now, I will focus on what is happening here at home. Existing legislation currently pulls government Ministers in different, incompatible directions. For example, the Petroleum Act 1998, as amended by the Infrastructure Act 2015, confers a duty on the Oil and Gas Authority to maximise revenues from petroleum, while the Climate Change Act commits Governments to aim for a target of net-zero carbon by 2050. To tidy up this anomaly, my Private Member’s Bill proposes that the Petroleum Act 1998 be amended so that its principal objective is no longer maximising economic recovery of UK petroleum, but instead is aligned to the otherwise competing statutory aim for a target of net-zero carbon by 2050 in the Climate Change Act 2008, as amended in 2019.
Since the Bill was tabled, the OGA, in July 2020, carried out a consultation to revise its MER UK strategy. It published its response to the review in December. Can the Minister confirm that the principal objective of the OGA is still to maximise economic recovery? If so, how can the Government continue to justify the OGA’s remit to, in effect, extract every last drop of petroleum from the North Sea, given that our existing fields alone will take us over our nationally determined Paris commitment?
On 24 March, the Government announced a new deal with the oil and gas sector, very much in line with the OGA response to its own review. In essence, the sector should reduce its own carbon footprint, deliver carbon capture and storage, and support the development of blue hydrogen. This came as a bitter disappointment to many climate campaigners, because it does not address the fundamental issue that the sector’s raison d’être—the extraction of fossil fuels—is the fundamental root of the problem of greenhouse gases that we face today. Nor does it recognise that carbon capture and storage is not a proven technology at scale. It remains decades away and is technology for the future. The Government’s deal with the sector shows little appreciation of the urgent need to act now. At the very least, we must draw a line under the issuing of new licences, as the International Energy Agency has done in its very recent landmark report, Net Zero by 2050: A Roadmap for the Global Energy System. What will be our response to the report? Does the Treasury intend to publish its own road map to net-zero emissions by 2050? Such an exercise is sorely needed and would concentrate minds on how we will go about this issue.
While I am on the subject of the oil and gas sector, I should mention tax breaks, and some other supports and subsidies that the sector enjoys. It was good to read in the media that the UK wants to lead discussions at the G7 to end fossil fuel subsidies. Sadly, the fossil fuel industries still get huge government subsidies. Annual fossil fuel subsidies were valued at £5.2 trillion dollars in 2017, equal to 6.5% of the global economy, according to the IMF, which also found that more efficient fossil fuel pricing in 2015 would have cut carbon emissions by a whacking 28%. The impact of success at the G7 and, one hopes, the G20 that follows, will be huge.
However, in this regard, the UK has, up to now, been a bit of a laggard, with a major sticking point on how subsidies are defined. What definition will we be asking our G7 partners to sign up to—the IMF’s, the OECD’s, the WTO’s, or will it be custom made? Also, is cutting the tax on North Sea profits, a policy introduced by George Osborne in 2015-16, a fossil fuel subsidy? Today’s tax rates in the UK are so low that in some years, the tax take is less than the subsidies, making UK oil revenues negative. As a result, UK oil and gas extraction is more profitable than most other UK sectors, is more profitable than oil and gas are in most other countries and enjoys benefits not extended to companies producing renewable energies. Rather than requiring companies to clean up after themselves, the UK taxpayer pays roughly half the cost of decommissioning oil platforms and cleaning pollution. Will these anomalies be addressed at the G7 leaders’ summit? These serious issues must be addressed if we are to match fine words with commensurate action.
In the short time I have left, I shall say a few words about planning, because it is so important to get this right. The Government have indicated they wish to reform the planning system and have plans to introduce a new planning law within this Parliament. However, what is needed more urgently is to bring existing planning rules into line with net-zero legislation. The national planning policy statements, which cover large projects, are a gaping hole and urgently need to be updated. The fiasco surrounding the Cumbrian coal mine decision is a salutary reminder of how badly things can go awry when legislation at all levels of government is not tightly aligned to the net-zero targets.
In conclusion, what does the Minister think of the Swedish Government’s climate action plan, published in December 2019, in particular their commitment to review all relevant past legislation and objectives for their compatibility with the plan, as well as to align future legislation? Our children deserve no less.
Biomass Electricity Subsidies: Deforestation
Baroness Sheehan Excerpts(3 years, 6 months ago)
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Baroness Sheehan (LD)
My Lords, given the need to rapidly decarbonise and the impact of pellet production on forests, will the Government review the decision to class biomass as carbon-neutral under the UK ETS and stop subsidising new biomass projects? I should say here that I own a biomass boiler.
Lord Callanan (Con)
As I said, the biomass strategy will review all those factors. We want to continue subsidising biomass only if there are genuine carbon savings, if it does not contribute to deforestation and if it is produced in a sustainable way.
Industrial Strategy: Local Growth
Baroness Sheehan Excerpts(3 years, 7 months ago)
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Lord Callanan (Con)
Of course it is not always the case. Many councils do good work. We think that the local Industrial Strategy Council did some good work, but we are building on that, extending and taking it forward. The Build Back Better Council, to which the noble Lord refers, will take forward that work.
Baroness Sheehan (LD)
My Lords, why is the Industrial Strategy Council to be abolished? A number of other noble Lords have asked this question and I want to press the Minister on it. How do the Government intend to fill the gap that will be created to hold government Ministers to account on the plan for growth overall?
Lord Callanan (Con)
Many of the elements of the work of the Industrial Strategy Council have been superseded. There are now new challenges—we had the Covid epidemic. The Government, of course, are still being held to account in this House and elsewhere. The purpose of the Build Back Better Council will be to provide help and advice on the way forward.
Net-Zero Carbon Emissions
Baroness Sheehan Excerpts(3 years, 7 months ago)
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Baroness Sheehan (LD)
My Lords, it is a pleasure to follow the noble Baroness, Lady Hayman. I agree with her every word. In doing so, I pay tribute to her foresight and determination in creating a forum for Peers who are interested in tackling the climate emergency but rather bemused by its urgent complexity by setting up Peers for the Planet.
The complexity of the climate emergency is that the science and evidence before us are telling us with increasing urgency that climate change cannot be tackled issue by issue in silos. It is evident that our natural planetary systems inextricably link humans, animals, microorganisms—including viruses, the skies, the oceans and all land and its features, such as glaciers, forests, mangroves, coral reefs, peatbogs, mountains, lakes, farms and cities. That complexity is encompassed in many ways by this timely debate, tabled by my noble friend Lord Teverson, because it asks us to focus on the need for an integrated government approach if we are to successfully meet the interlinked challenges needed to get to net zero.
This is an important issue, and I thank my noble friend for bringing it to your Lordships’ House via Grand Committee. Declaring a climate emergency, setting a net zero target and even agreeing to the agenda for the sixth carbon budget, as set out by the Climate Change Committee, are, quite frankly, meaningless unless accompanied by meaty government processes that cover all arms of government, including its agencies, and all levels of government, especially those such as local authorities, which are rooted in their place and in touch and in tune with their communities.
The fact that my noble friend intimates in the title of his debate that the case for joined-up government needs to be made tells us that the Government’s words are just that: words. To date there has been little commensurate action to underpin their stated ambitions and intentions. I totally agree with the urgent need for a Cabinet Minister responsible for tackling the climate and biodiversity emergency, which many previous speakers have called for.
I will divide the rest of my contribution into two parts, the first focusing on local government and the second on one of the more egregious examples of unjoined-up, incoherent national policy-making by the Government. I very proudly served as a councillor for Kew ward in the London Borough of Richmond upon Thames. My roles for four consecutive years included that of assistant cabinet member for environment and climate change, and sitting on the planning committee, which was an interesting and fascinating experience. It will be crystal clear to anyone who has been a councillor that local government is key to success in reaching net zero targets.
I will pick out just a few of the myriad ways in which local government is essential to realising the CCC’s agenda for achieving net zero by 2050. Behavioural change is identified as a crucial component of success. A top-down approach will not on its own effect that; psychologists will tell you that peer pressure from friends, family and neighbours will have the biggest impact. We need to work from the ground up, and local authorities are well placed to do just that. They have the power to influence how residents use their local spaces; they can tweak local road schemes, encourage more walking and cycling and better eating habits and, crucially, put in place measures to increase energy efficiency in their local housing stock.
According to the CCC, local authorities have powers or influence over a third of emissions in local areas, much of which come from housing. To meet net zero, virtually all heat in buildings will need to be decarbonised and heat in industry reduced to almost zero carbon emissions. Given the importance of achieving success in this area, it is extremely frustrating that the green homes grant has been such an abysmal failure—cut in just six short months. Can the Minister say why the scheme, for which there was great demand, was cancelled? Can he also say why no notice was given and what will replace it?
I turn to local authority funding. The UK, despite its size, is one of the most centralised countries in the world; only about 5% to 6% of all tax revenue is raised by local government. However, it has not always been this way. In the 19th century, local government in Britain was as decentralised as Germany is today. It was only in the post-First World War era that Whitehall gradually accrued the spending power that previously lay with town halls. Given the growing inequality among the regions of the UK, I do not think that change has been an unqualified success.
To play their essential role in meeting the net-zero target, local authorities must be adequately funded. When grant schemes such as the green homes grant are suddenly cut off, that really hurts not just local authorities but local businesses and jobs. With £2.1 billion of EU structural funds cut off after Brexit, it behoves the Government to seamlessly put in place their successor scheme. We are heading towards the end of April 2021, and still there is no sign of the promised consultation on the shared prosperity fund. When can we expect it? Also, when will the Government issue the sovereign green bond, announced by the Chancellor in the House of Commons last November? Can the Minister confirm that, when set up, it will be able to make loans to local authorities?
I have just one other question for the Minister on funding for local authorities. Do the Government have a view on the new report from the London School of Economics and Leeds University, produced in association with the All-Party Group on Sustainable Finance, UK100 and HSBC? The report assesses how UK policymakers can engage the financial sector to meet the net-zero target and its commitment to the levelling up of regional economies in the context of Covid-19 and Brexit. Its authors and supporters would like to see Ministers make a strategic commitment to a just transition for jobs, including plans for mobilising public and private sector finance to deliver place-based projects which tackle both environment and social challenges. Will the Government respond to the report and put their response in the public domain?
I want to dwell on jobs for a moment. Maybe the Minister will correct me if I am wrong, but I think the green homes grant scheme, in large part, fell because of a lack of skilled people to carry out the installations and the complete lack of an efficient process to administer the scheme. Local authorities know their workforce. They know where they are; they know what they do. They will be invaluable in helping to get people reskilled and ready for new jobs in the greening of various sectors of our economy. The only way that communities will be ready to take advantage of the new jobs that green investment will bring is if there is strategic planning for the right sort of skills training and knowledge base that will be needed in the local neighbourhood. Central government does not have that knowledge—which, by the way, is not the same as data. If we are to reach our net-zero targets, local authorities will be key to successful transitions to new industries and new ways of doing things. We must value them, and we must fund them.
In conclusion, I will say a few words on the incongruity of the Oil and Gas Authority’s policy of maximising economic revenue and the legally binding target of net zero by 2050 both sitting within the same legislature. To limit global warming to 1.5 degrees centigrade, oil and gas production around the world needs to decline by an average of 6% per year between now and 2030, according to the UN Environment Programme 2020 Production Gap report. Instead, current global plans to increase production would lead to 120% more fossil fuels extracted by 2030 than would align with the Paris Agreement. Here in the UK, under the recently announced North Sea transition deal, the Government plan to continue to issue new licences to explore for and extract oil and gas. How is the MER—maximising economic revenue—policy compatible with our leadership of the climate emergency agenda and our standing on the global stage for COP 26 in November this year?
It is clear from our continuing MER policy and, indeed, the fiasco around the controversial Cumbrian coal mine that our legislation is not fit for the purpose of meeting the net-zero targets, and legislative alignment is sorely needed on our national planning regime. My final question to the Minister is: will we get our domestic legislation in order before COP 26? It would at least give departments a fighting chance of pulling in the right direction at all levels of government.