6 Baroness Young of Old Scone debates involving HM Treasury

Long-duration Energy Storage (Science and Technology Committee Report)

Baroness Young of Old Scone Excerpts
Thursday 9th January 2025

(1 week, 6 days ago)

Lords Chamber
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Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I declare an interest as the chair of the Labour Climate and Environment Forum. I joined the Science and Technology Committee just as it was finalising its long-term storage report, so I am afraid that I cannot claim any credit whatever. However, I am pleased that I can speak today in support of this important report and of our admirable chairman, who was quite unfairly attacked by the noble Lord, Lord Lilley—but let us not keep that debate going.

I also add my welcome to the Minister my noble friend Lady Gustafsson; I look forward to her maiden speech in response to this debate. With her investment role, she will understand that driving investment is probably the only issue in this topic that absolutely has to be grasped.

As many noble Lords already pointed out yesterday, the power grid operated in exactly the way that a long-term energy storage system should be designed to avoid: the temperature dropped, the demand for heat and power went up, the wind and sun were absent—the famous Dunkelflaute—and the reserve gas-fired power stations had to be cranked up at great expense, because everybody else in Europe was calling for gas at the same time. We cannot go on like that.

When Conservative Ministers came to the Select Committee a year ago and we probed how they saw such a situation being dealt with in the long term, we were quite hard on one of them, if I remember correctly. He eventually lost his cool completely and snapped, “That is why we need to have a reserve of gas-fired power stations, even if they are unabated. Something’s needed to keep the lights on”. I was a bit disappointed in that as a response.

I am glad to say that we have moved on considerably from then. The Clean Power 2030 Action Plan, which was published in December, is a major step in the right direction. It is only a first step, in a route map that needs to be clearly laid out, to the decarbonising of power to avoid the spectre of dependency on expensive, insecure and polluting unabated gas. It is interesting that polling of the public that we did last year for LCEF showed that, at the height of the energy price crisis, the public ranked energy security equal with reducing the cost of energy as important in their mind.

The 2030 action plan outlines intentions to capture and store excess renewable energy generated when the sun shines or the wind blows and we have more electricity than we need. As noble Lords have pointed out, we currently pay renewable energy generators not to produce this surplus energy, which, even given the polite title of “curtailment”, is bonkers in anybody’s books. The plan, of course, focuses only on the revised target date for zero-carbon energy of 2030—the clue is in the title—but, for longer-term back-up and storage, it points in the direction of travel beyond 2030. It outlines what measures need to be put in place and some initial timetables, although not enough. This is all vital if we are to inspire confidence in investors and leverage private money to tackle the task.

Can my noble friend the Minister today provide us and the investment market with additional assurance about the Government’s intentions beyond 2030? I have some specific questions. First, are the Government clear that long-duration energy storage, which provides highly flexible power, is the missing piece of the energy jigsaw and that it will reduce our reliance on unabated gas generation, allow variable renewables to be used more efficiently, reduce costs, enhance our energy security and contribute to the reduction in carbon emissions?

Secondly, do the Government support the central role of hydrogen storage, along with other technologies such as pumped hydro storage, battery technologies and compressed air? Do they support the central idea that a reduction in the reliance on gas, as outlined by the Royal Society, will reduce costs?

Thirdly, are the Government committed to providing an investable policy environment, including a cap and floor regime, for long-duration energy storage technologies and policy support through dispatchable power agreements and other mechanisms beyond 2030, to enable the construction of hydrogen storage projects and supporting pipelines?

Fourthly, does my noble friend the Minister judge that we are providing enough support for projects aimed at testing the viability of carbon capture and storage, to achieve both the decarbonisation of gas-fired power stations and the creation of a sustainable hydrogen supply chain?

All these issues have a strong spatial element, and noble Lords will recognise that I cannot speak without mentioning the Government’s land use framework, which we hope is about to emerge. There are some very interesting steps, such as is happening in Hull, to co-locate various cutting-edge testing projects, such as CCUS and hydrogen projects, to see the value of co-location and to explore the spatial aspects of these technologies. Can my noble friend the Minister tell us when we might see the strategic spatial energy plan and what it will contain? Can she say how it will nest in the Government’s overarching land use framework, which will deal with all the key demands for land? We heard from the Defra Minister on Tuesday that it will be launched for consultation this month—but I heard that last Christmas, too.

Our excellent chair and many other noble Lords have already addressed the need for speed, and I will finish, very briefly, with my view that all these strands need to be progressed with commitment and vigour, to give confidence to the investment market as well as to hit targets. Large-scale hydrogen will take seven to 10 years to build. Although the word of the debate may be “Dunkelflaute”, I prefer the title of the report: Get On With It. I am not as well brought up as our admirable Select Committee’s chairman, so I would urge, even more starkly, the use of the admirable phrase “JFDI”. For those who do not know what that means, it is simply, “Just do it”, with a little embellishment that I will not repeat for fear of offending the Hansard writers.

Baroness Hayman Portrait Baroness Hayman (CB)
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My Lords, I declare my interest as co-chair of Peers for the Planet—oh, I am not co-chair, I am chair now! I am sorry, I must have an old version of my speech.

I will speak to Amendment 25 in my name in this group. I am grateful for the support of the noble Baroness, Lady Young of Old Scone, and the noble Lords, Lord Teverson and Lord Young of Cookham. I am very glad to follow the noble Lord, Lord Holmes of Richmond, in his widening of the debate about the role of the Crown Estate into some of the huge challenges that we face as a nation and as a society.

This group of amendments takes up the themes suggested by the noble Lord, Lord Lansley, and the questions raised by the noble Lord, Lord Young of Cookham, which challenge us to answer the question of how the core responsibilities of the Crown Estate —the financial responsibilities and the objectives of creating an income stream for the Treasury—fit in and interact with other major responsibilities and other pieces of legislation. The noble Lord, Lord Young, was talking about this in relation to tenancy questions, while the noble Lord, Lord Lansley, was asking whether the Crown Estate is constrained in some of the things it wants to do—the environmental and climate change issues that I am interested in, for example—by the 1961 Act, and whether it is unable to recognise other responsibilities and objectives that the Government have put into legislation since that Act.

My amendment tries to ensure that the Crown Estate does what it can as an important part of our national wealth to contribute to combating the nature and climate crises. It would equip the Crown Estate to play its role and future-proof that commitment against a future change of government. It does so by ensuring the Crown Estate has a statutory duty to contribute to national efforts to meet our climate and nature targets, as set out in the Climate Change Act and the Environment Act. In relation to the seabed, about which the noble Lord, Lord Holmes, spoke so eloquently, the amendment would also safeguard the Crown Estate’s ability to fulfil its stated mission to,

“take a leading role in stewarding the UK’s natural environment”,

by requiring seabed leaseholders to meet a new conservation condition.

The amendment would enable the Crown Estate to continue to fulfil its role of creating wealth for His Majesty’s Treasury while recognising that, as it moves away from being solely an asset owner and takes on new borrowing and investment powers, it should also be accompanied by obligations to deliver for nature and the climate. The last significant modernisation of the Crown Estate was over 60 years ago, when the issues relating to climate change and the threats to the natural environment were far less understood and far lower down the national and global agenda. Today, however, the impacts of climate change are undeniable. Only last week, a new report on the state of the world’s climate led by international scientists concluded that:

“Much of the very fabric of life on Earth is imperilled. We are stepping into a critical and unpredictable new phase of the climate crisis”.


The report highlights that we are still moving in the wrong direction, with emissions and their often catastrophic effects, which we have seen so recently, still rising.

At Second Reading, the Government did not seek to deny the threat or the urgency of the climate and nature crises, nor the need for the Crown Estate to play its part in combatting them. Rather, they suggested that a statutory duty was not necessary because:

“the Crown Estate has existing governance structures in place to ensure that environmental impacts are a central consideration of its investment decisions”.—[Official Report, 2/9/24; col. 1021.]

But there is an important difference between considering environmental impacts in investment decisions and making sure that those decisions actually contribute to our nature and climate targets.

My amendment supports the Crown Estate not just to think about minimising the impacts on the environment but to look at the contribution it can make that will bring us closer to our climate and nature goals. I welcome the important progress that the Crown Estate is making through its new nature goals and the initiatives it has taken, including the Marine Delivery Routemap, but our amendment seeks to embed such initiatives in legislative form. It is constructive work that is already being done, but—I go back to it not being a cuddly organisation—we need to embed it and to future-proof it, and we can do that only by changing the Bill.

The need for a legislative base to underpin environmental responsibilities was, in fact, recognised in the Scottish Crown Estate Act. I believe that my amendment reflects a similar, and indeed even stronger, objective by linking the contribution to our legally binding targets. I know that there is concern about the possibility of these provisions in some way encroaching on the commercial independence of the Crown Estate, but my amendment does not seek to constrain that commercial independence. It simply commits the organisation only to

“take all reasonable steps to contribute to … the achievement of”

our nature and climate targets, in line with the legally binding targets the Government have already committed to.

There is a growing recognition that we have to integrate nature and climate responsibilities across our national and local bodies and across all organisations that discharge public duties. As the Minister will recall, there have been a number of Bills affecting regulators and public bodies on which we have brought forward amendments similar to this and often succeeded in integrating nature and climate responsibilities into legislation—but we are doing it piecemeal at the moment. The noble Lord, Lord Krebs, has a Private Member’s Bill before the House this week that gives us the opportunity to take a more coherent and comprehensive approach. I support that—I hope we will have coherent and comprehensive support—but today, and as we go through this Bill, we have the opportunity to make a very specific contribution through the work of the Crown Estate. I hope that the Minister will be sympathetic to amending the Bill in the ways that I suggest.

Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I add my support to Amendment 25, to which I have put my name, alongside the noble Baroness, Lady Hayman, and the noble Lords, Lord Teverson and Lord Young of Cookham.

I think that we have all agreed that the Crown Estate is not cuddly, but it is also big and hugely important. It is the third-biggest landowner in this country and it is a major owner of the seabed, covering an area twice the landmass of England, Wales and Northern Ireland, so it is absolutely crucial that it does the right thing. The decisions it makes about land and sea are important not just for energy and climate change but for biodiversity, food resilience, flood risk, water management, and the quality and quantity of water—a whole plethora of things. That is why I bang on about the need for a land use framework, but you could almost say that the Crown Estate could have a mini land use framework and a mini sea use framework all of its own, because it is sufficiently large a player.

As the noble Baroness, Lady Hayman, said, we have national targets set in statute for net zero and biodiversity recovery. It is absolutely clear that the Government will simply not be able to make these targets without the Crown Estate playing a full role, as it is one of the big boys on the block. For example, the offshore wind partnerships that we have heard about in collaboration with Great British Energy will leverage £60 billion of private investment and provide energy to nearly 2 million homes.

The Crown Estate is also fundamental to economic and environmental issues, including flood risks, owning as it does great tracts of the coast. Carbon capture, use and storage, if you believe in it, is a big part of the net zero strategy—I have my doubts that it will actually play that role—but it depends hugely on the Crown Estate playing its role, otherwise it simply will not be able to happen. We have to recognise that the Crown Estate is a massive player, including in coastal habitats which are uniquely important in UK terms. We are a major staging post for marine and bird migration as a result of our globally important coastal habitats. The Crown Estate is big in all of those things.

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Lord Livermore Portrait Lord Livermore (Lab)
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I am sure the noble Lord is much more expert in those things than I am. I take what he says seriously.

The decision to grant leases is informed by advice from the relevant statutory nature conservation body, either via the statutory consent process or, where appropriate, direct engagement. It can include enhancement requirements. Statutory nature conservation bodies are responsible for providing advice to government and regulators on the management, monitoring and assessment of marine protected areas. For those activities that are deemed exempt from statutory consents, the Crown Estate requires applicants to demonstrate that advice has been sought from relevant environmental bodies to inform their decision on leasing.

More broad protections, which would prohibit even temporary damage anywhere on the UK territorial seabed owned by the Crown Estate, would also cause major disruption to many critical marine sectors. These include, for example, offshore renewable energy, which requires the burial of power cables in the seabed to transport energy to shore; the laying of subsea and telecom cables, which carry 99% of all intercontinental data traffic for the UK; the UK’s ports, harbours, marinas and shipping channels within UK waters that require dredging for the creation and maintenance of navigable depths; and the manufacturing industry, which relies on marine aggregates, which are used, for instance, on major construction projects, beach replenishment and coastal protection schemes across the UK. The Government therefore consider these amendments to be unnecessary given the existing statutory protections and the Crown Estate’s existing practices.

I turn next to Amendments 37A, 37B and 37C, tabled by the noble Baroness, Lady Vere, which would all place new duties in respect of granting licences to access the seabed. Amendments 37A and 37B would prohibit the Crown Estate from granting new licences to access the seabed unless it has considered the impact of those licences on commercial fishing and commercial shipping. While the Government support the spirit behind these amendments, the Bill will not directly impact how much commercial fishing or shipping takes place in areas managed by the Crown Estate, nor is the Crown Estate responsible for the regulation of these sectors.

The Crown Estate collaborates extensively with industry stakeholders, statutory nature conservation bodies, environmental non-governmental organisations and marine licensing bodies to ensure activities on the seabed are conducted responsibly and enable a restored and thriving marine environment. A recent blog post from the National Federation of Fishermen’s Organisations, for example, noted on engagement with the Crown Estate ahead of the offshore wind leasing round 5 in the Celtic Sea that the

“process succeeded in identifying and avoiding the places where it would be most harmful to the fishing industry to see turbines installed. The cooperation between the Crown Estate and fishermen was unprecedented and the outcome was a positive one”.

The Crown Estate has also invested £50 million in the offshore wind evidence and change programme, which includes several initiatives to consider and support the fishing industry. I will give two examples. The first is the fisheries sensitivity mapping and displacement modelling project, which identifies areas of offshore wind development that present risks to the fishing industry to try to reduce the likelihood of conflicts between the two sectors. The second example is the ecological effects of floating offshore wind research programme, which focuses on understanding how marine ecosystems will react to the planned large-scale expansion of floating offshore wind in UK waters over the next decade. The goal of this programme is to change the way the Crown Estate deploys floating offshore wind on a large scale, ensuring nature recovery and enabling co-existence with other sea users, including fisheries.

Amendment 37C would prohibit the Crown Estate from granting new licences to access the seabed unless it has considered the impact of those licences on coastal communities. Coastal communities are already a primary consideration of any investment decision by the Crown Estate. For example, it has specifically designed the leasing process for its offshore wind leasing round 5 opportunity in the Celtic Sea in such a way that developers have to make commitments to deliver social and environmental value as part of the development of their new wind farms. Tender bidders are required to think innovatively and constructively about how their developments can create a legacy of healthier, more resilient, fairer, more vibrant and more prosperous communities which stretch beyond the lifetime of the wind farm leases for the benefit of generations to come. Commitments made during the tender process will be monitored, reported on and enforced throughout the lifetime of the relevant round 5 developments.

We could of course make this an explicit duty for the Crown Estate in legislation, but if we did that then there are many other points we have debated today that could also be added as statutory duties. As I said earlier, a key purpose of the 1961 Act was to repeal various detailed statutory provisions that had built up over 150 years previously, to avoid the Crown Estate having to work through a maze of requirements for each investment decision.

I turn next to Amendments 15, 17 and 29, tabled by the noble Lord, Lord Holmes, and the noble Earl, Lord Russell. These amendments seek to create new objectives for, or impose new duties on, the Crown Estate. Specifically, Amendment 15 would require the Crown Estate to seek to prioritise the objectives of UK food security and to support the development and promotion of new technologies, including artificial intelligence, in the managing and turning to account of Crown Estate land.

Amendment 17 would require the commissioners to publish a review assessing how Crown Estate assets can be deployed to support nature prescribing. The amendment would also require the commissioners to work with NHS England and devolved counterparts to enable the Crown Estate’s nature assets to form part of a major UK-wide nature prescribing scheme.

Amendment 29 would require the commissioners, when exercising their duty in Section 1(3) of the 1961 Act, to act in a way best calculated to further the achievement of sustainable development and to seek to manage assets in a way likely to contribute to the promotion or improvement of economic development, regeneration, and social and environmental well-being.

Before I speak to these amendments it is worth reiterating that the Crown Estate is a commercial business, independent from government, that operates for profit and competes in the marketplace for investment opportunities, yet it is currently restricted in its ability to do so. As I have already set out, the Government believe that it is right that the Crown Estate continues to operate as a commercial enterprise. A key purpose of the 1961 Act, as I have noted, was to repeal various detailed statutory provisions that had built up over 150 years previously, which were hampering the effective management of the estate. Since then, the Crown Estate has shown itself to be a trusted and successful organisation with a proven track record in effective management. That is a valuable outcome, which I stress we need to be careful not to undermine.

This track record includes its commitment to enable the development of new net-zero technologies and to invest in artificial intelligence to enhance its habitat and environmental monitoring system. The Crown Estate has also made it clear that it is prioritising food security alongside nature recovery and enabling the diversification of income for its tenant farmers. The investment and borrowing powers proposed in this Bill will allow for even greater investment in these areas by the Crown Estate.

The Government believe that the Crown Estate’s existing duties give it a clear focus, leading to a consistently significant return to the Exchequer to support the funding of public services. At the same time, the Crown Estate is already able to, and does, focus on activities which also closely align with wider national needs, including energy security and sustainable economic growth. As a public body, the Crown Estate seeks to work with the grain of prevailing government policy.

I turn next to Amendments 25 and 30, tabled by the noble Earl, Lord Russell, and the noble Baroness, Lady Hayman. Amendment 25 would create a new duty for the Crown Estate commissioners in the exercise of their functions to take all reasonable steps to contribute to the achievement of targets under Part 1 of the Climate Change Act 2008; the achievement of biodiversity targets under Sections 1 to 3 of the Environment Act 2021; and to adapt to any current or predicted impacts of climate change as identified in the most recent report under Section 56 of the Climate Change Act 2008. This amendment would also require the Crown Estate to include conditions in all seabed leases for the leaseholder to contribute to the conservation and enhancement of the natural environment.

Amendment 30 would create a new nature recovery duty. This would require the Crown Estate to take steps to embed nature into spatial planning and seabed leasing, allocate space for nature recovery in all projects and invest in clean energy projects.

Before I explain the Government’s position, let me express strong support for the intention behind these amendments. It is right that the public and private sectors make every contribution they can to help achieve our climate change targets, and the Crown Estate should continue to be a national trailblazer in this regard. The Crown Estate has committed to becoming a net-zero carbon business by 2030, aligning with the 1.5 degrees trajectory, and will prioritise activities which help enable a reduction in national carbon emissions, such as building net-zero homes, transitioning its holdings to sustainable agricultural practices and working in partnership with government to meet the national renewable energy targets.

On the biodiversity targets in the Environment Act, the Crown Estate is committed to delivering a measurable increase in biodiversity by 2030. It will publish its delivery plan to meet this goal next year, which will include commitments to restore habitats in line with targets in the Environment Act. As I have already noted, all leases granted by the Crown Estate for development that affects the seabed already require the leaseholder to have the necessary statutory consents in place before development can begin.

The Crown Estate also published its approach on nature recovery last week, where it has committed to delivering increased biodiversity, to protect and restore freshwater, marine and coastal systems, and to increase social well-being benefits from nature. However, as I have already set out, the reforms being introduced in this Bill are not intended to alter the fundamental statutory basis of the Crown Estate as a commercial business independent from government.

The commissioners operate under a clear commercial objective, as set out in the 1961 Act, to maintain and enhance the value of the estate. I know that some noble Lords take a different view as to how the Crown Estate should operate, but it is the Government’s view that the existing statutory commercial focus, coupled with adherence to environmental and other nature requirements as set out in other legislation, as well as the need in the 1961 Act for the commissioners to have due regard to the requirements of good management, remains the best approach. One of the functions of the Crown Estate is to return its profits to the Exchequer each year, and it has returned a combined total of more than £4 billion in the last decade. This is used to fund the priorities of the Government of the day, which currently include spending on policy that helps achieve our climate change goals.

The more the Crown Estate’s core purpose in legislation is expanded, particularly with additional duties or objectives that may unnecessarily complicate, conflict with or risk compromising the achievement of that core commercial objective, the harder—

Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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I know the Minister is anxious to get on to the dinner break business, but I think he misunderstands exactly what we are saying by asking for biodiversity and climate change target achievement to be included. The reality is that we want the Crown Estate commissioners to be able to walk, talk and chew gum. They have to be able to be smart enough to deliver on the commercial and economic imperatives that the Minister has been absolutely clear about—he has repeated them several times—and do the biodiversity and net zero delivery at the same time. That is doable but not if, as the Minister has just done, he continues to say and reinforce for the Crown Estate commissioners that their primary purpose is a commercial one, because that will always take precedence.

Crown Estate Bill [HL]

Baroness Young of Old Scone Excerpts
2nd reading
Monday 2nd September 2024

(4 months, 2 weeks ago)

Lords Chamber
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Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I too welcome the Bill and the opportunity that it gives for the Crown Estate to make a greater contribution to net zero, but the Crown Estate is a big thing—it has 200,000 acres of land, 12,000 kilometres of coast and a seabed area that is bigger than the combined landmass of England, Wales and Northern Ireland. It is the third biggest landowner in the UK, yet I bet that the vast majority of people in this country have only a very woolly concept of what the Crown Estate does. It keeps its light well hidden under a bushel, which I suspect is a tactic.

We need to recognise that the Crown Estate owns more land than the entire landmass of Luxembourg, and it is particularly important land, because it is marine land, which is clearly hugely important for net zero; it is coastal land—likewise; and it is urban land. So the Crown Estate has even more opportunities to do good for the nation in a multifactorial way than the Bill outlines, and I would like to ask the Minister for further commitments from the Crown Estate in return for these new powers.

I am sure that others will dwell on a number of issues connected with the core purpose of the Bill, particularly how the relationship between the Crown Estate and Great British Energy will deliver the pace and extent of offshore wind, carbon capture and storage, and other net-zero developments that we need to achieve our net-zero targets.

The one I would like to focus on in this area is joining up to the grid. The process of revamping the grid in this country and changing the way in which join-up to the grid happens needs to be fundamentally reformed to become much more agile. It continues to drag behind the pace we need in order to meet the net-zero commitments and to develop a new, more distributed system to join up with the renewables pattern that we are seeing emerging. We cannot be behind the pace on that particularly important item.

We also need to understand how the new powers that the Crown Estate will have will increase investment, not just in seabed leasing partnerships, which have been its stock in trade primarily in the marine area so far, but in technological development, innovation, port development and the development of provisioning systems. Can the Government give us some assurances on all those things and on how the Crown Estate will use its improved investment powers to take them forward?

I shall also focus on beyond the net-zero objectives of the Bill, because the Crown Estate has other strategic objectives. One is the promotion of the natural environment and biodiversity, and one is about communities and urban centres. The Crown Estate briefing on this Bill says that it will unblock investments for nature recovery across its portfolio as a result of the provisions of the Bill, but the Bill and the Explanatory Notes are remarkably silent on how investment for nature recovery will be unblocked. Can the Minister fill us in on this and on how it will happen? The Crown Estate, as a major landowner, would be a hugely powerful player in biodiversity recovery.

Associated with that, and connected to it, is the role that the Crown Estate is playing in the development of the strategic spatial energy plan. Noble Lords who have heard me bang on about a land use framework will recognise that I am just about to bang on about a land use framework. That strategic spatial energy plan needs to be nested in an overarching land use framework that will allow energy needs for land to be considered alongside the multitude of other land use needs and requirements, such as housing and development, biodiversity, food resilience, flood risk management, other climate change and adaptation needs, timber, trees, green space infrastructure, to name but a few.

The Conservative Government endlessly promised a land use framework but failed to deliver it. The new Government have also committed to such a framework, and I am very grateful for that, but I received an Answer to a Written Question during the Summer Recess that rather disappointed me, and I had no Minister to be able to rant to immediately, because it was very non-specific on dates and seemed to focus primarily on land use issues as defined by Defra and a few CLG issues rather than including energy, transport and other infrastructure needs for land.

Can the Minister tell the House when we might expect the much awaited land use framework, how the Crown Estate and its enhanced powers will be a key player in delivering a land use framework, and how the Government’s very welcome commitment to join up policy across government departments will work in this particular area of land use to ensure that we see the needs of all factors in UK public life across all departments in a multifunctional way brought together in a land use framework?

A further principal strategic objective of the Crown Estate is the promotion of communities and urban centres. The Crown Estate is a major urban landowner, as I said. Can the Minister tell the House what requirements will be laid upon the Crown Estate to use its assets of land, buildings and powers, both old and new, to ensure that it helps the nation to turn the corner in delivering not just houses to pace but the right sort of houses? The current speculative developer-dominated system in this country is broken. We do not build enough genuinely affordable houses with a range of tenures. Instead, volume housebuilders wriggle out of commitments to deliver affordable houses using the viability challenge.

The houses we now build in this country are the smallest and meanest in Europe—that has happened over the last 15 years—and they have inadequate environmental standards. Can the Minister assure us that the Crown Estate will be required to play a key role in promoting housing management and building that is affordable, well designed and environmentally progressive, rather than expensive, spatially inadequate and environmentally lacking? I was encouraged by the noble Lord’s mention of the work already done by the Crown Estate to make its own estate more environmentally sound and appropriate for future needs. We want to see more of that, both in the Crown Estate’s existing estate and in the future development that the Bill will enable it to undertake.

I will make one last point. The Crown Estate is a key player in climate change mitigation but, as a major landowner and property owner, it also has a great opportunity to promote a better way forward in adaptation to the very real impacts of climate change that we are already seeing. I am talking about increased flooding and heatwaves—especially urban heat—as well as challenges to water supply and quality, and increased storminess.

The Crown Estate is a major property owner and developer. It can do much to make land and property more resilient in the face of climate change challenges. The noble Baroness, Lady Brown, who is chair of the Adaptation Sub-Committee of the Climate Change Committee, has reported very critically in successive reports on the lack of progress being made across the board in improving the resilience of this country in the face of climate change impacts. The time has now come to start taking seriously this Cinderella/poor relation on the climate change spectrum. We are simply not making progress on adaptation and we need to do so because the effects are not something that will happen in the future; they are happening now. It is only a matter of time before we will see a serious flood risk incident where lives will be lost—and we will have been asleep at the wheel.

Can the Minister tell us how the Government will ensure that the Crown Estate will step up to the mark and drive forward the big difference it can make, in its roles, to climate resilience in the UK? The Minister very kindly had a conversation with me and other noble Lords. I am sure he will say that this is a modest Bill but, in reality, the Crown Estate is a big opportunity and I hope that we will hear big assurances from the Minister today.

Financial Services and Markets Bill

Baroness Young of Old Scone Excerpts
Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I support Amendment 15 in the name of the noble Baroness, Lady Hayman, who introduced it very powerfully. I want to talk to the House about the real relationship between nature conservation and climate change and the need to bring those together in the regulatory process. Nature restoration is essential for our reaching of net zero—we cannot do net zero without restoring nature; I think that is globally accepted now—but nature restoration is important to economic prosperity in several other ways. More than half of global GDP is considered moderately or highly dependent on natural assets and half the world’s population is completely dependent on biodiversity for their livelihoods. That means that biodiversity is as important as climate change.

Biodiversity is also highly material in assessing risk, including financial and economic risk, and it is pretty clear that if biodiversity is going down the tubes, so is the economy and, indeed, so are we. So, it is a bit of a no-brainer, in my view, that financial services regulators should have, as a regulatory principle, net zero and nature recovery together: the two are absolutely indissolubly linked. I hope the Minister will not say that the provisions that are in the Bill for net zero will act as a proxy for biodiversity restoration. It does not work that way: net zero is a necessary condition but not a sufficient condition for biodiversity recovery.

The noble Baroness, Lady Hayman, threatened the House with simply reading out all the commitments that have already been made that are encapsulated in her Amendment 15. I want to add another one that no one has mentioned so far. The Environmental Audit Committee, in its report on biodiversity in June 2021, highlighted the fact that, although some progress had been made in transforming the financial system to reflect the pressures of climate change, the whole accompanying handshake with biodiversity was way down the line and much slower and needed to accelerate. It called on the Government to play a part in creating a narrative that there is a lot of international commitment to biodiversity recovery linked with climate change that we are going to have to respond to in this country, because we have signed up to it globally, and that it is therefore important to get the financial services industry and its regulation up to speed soon in order to cope with that global pressure. The noble Baroness’s Amendment 15 would do that and, more importantly, it would secure this through a legislative approach and not be overly reliant on voluntary action.

Without delaying the House any longer, I also support Amendment 91 on deforestation. I will not repeat what the noble Baroness, Lady Boycott, said, but it was the bee’s knees. I end with a note of distress at the comments made by the noble Lords, Lord Davies and Lord Naseby, about pension scheme investments and investors and pension committees and pension advisers’ responsibility and duty to pensioners. I declare an interest, having set up the Environment Agency pension scheme some 25 years ago to be, at that stage, the only really green pension scheme and now probably the foremost green pension scheme in the world.

Let us not be in any doubt: there is not a dichotomy about responsibility to pensioners and taking action on climate change and biodiversity. They are absolutely one and the same thing. If climate change and biodiversity decline continue, there will be irreparable harm to the economics that pensioners and pension schemes depend on. Let us not be in any doubt about that: pension scheme trustees and their advisers—and I hope, if the Minister will accept Amendment 15, their regulators—have a responsibility towards climate change and biodiversity recovery, because it is absolutely in the economic interests of their beneficiaries.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP)
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My Lords, I rise very briefly to express Green support for the non- government amendments in this group and acknowledge the way in which the weakness of the government amendment has already been acknowledged. Noble Lords will note that the explicitly environmental amendments, from Amendment 15 onwards, do not have a Green name on them. I am delighted about that because there was not space for one, because the amendments have cross-party support from right across the House, which really shows how far we have come in these debates.

I shall make four brief points, because I am very aware of the time. They are building on the points just made by the noble Baroness, Lady Young, and reflecting on an article published last week in Nature, which demonstrated that in seven of eight key measures, including climate, biodiversity and water, we are outside the safe and just operating space of this planet. We are absolutely at crisis point and I pick up the point made by the noble Baroness, Lady Hayman, that we cannot afford to wait. We cannot wait for the next Bill, the Bill after that and the Bill after that. I very much agree with the point just made by the noble Lord, Lord Vaux, that the country should not have to wait for the House of Lords to insert these things into Bills; they should be there in government Bills as a matter of absolute, basic course.

I have a particular point about Amendments 93 and 113, which strengthen the fiduciary duty of pension funds to ensure investors consider the impact of their investments on environment and society. The case has already been made that there is no finance on a dead planet and there are no pensions on a dead planet, but the society element also deserves to be noted. We have had a huge amount of discussion of the problem of the large number of people of apparently working age who are not engaged in our labour force at the moment, and the public health crisis that is associated with that. It is the kind of thing that Green councillors have been going on about, as members of governing boards of pension funds for years: such things as tobacco and the kinds of food products that are being supported are all issues that have an impact on pension returns.

On deforestation, the noble Baronesses, Lady Meacher and Lady Boycott, among others, have already made points about this, but there is £300 billion of UK pension money in high deforestation risk companies and financial institutions—that is a figure from Make My Money Matter. Again, there is a point about risk. The financial sector in the UK faces up to £200 billion of risk in Brazilian beef and soya and Indonesian palm oil supplies alone.

Finally, there is another risk in terms of our international reputation. We are of course enthusiastic signatories of the global biodiversity framework, which promises, under target 14, that the UK will align

“all relevant public and private activities, [fiscal] and financial flows with the goals and targets of this framework”.

How could the Government not be accepting all the amendments in this group?

Financial Services and Markets Bill

Baroness Young of Old Scone Excerpts
That is why I support these amendments. It is important that the net-zero aspects are not given a lower billing than growth and competitiveness. That would send the wrong message. Just “having regard” to net zero is not enough. As I have said, I do not believe there is any real conflict—quite the opposite, if done well. Good financial regulation in this area should help the UK become a global leader in the exciting technologies and businesses of the future, driving both growth and competition, so I urge the Government to accept them.
Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I very much enjoyed what was just said by my fellow countryman. I will talk to Amendment 69 in the name of the noble Baroness, Lady Sheehan, which I have also put my name to. The amendment adds nature to the new regulatory principle on net-zero emissions. I also recognise everything that the noble Baroness, Lady Hayman, said about needing an objective rather than a regulatory principle. However, if we are to be stuck with a regulatory principle, it needs to address the twin existential crises we are facing globally and as a nation: climate and nature decline.

I must confess that I was kind of taken aback by the two previous speakers. The fact that climate and nature are such major things and go hand in hand, with one not being able to be resolved without the other, is now so commonly recognised globally by the business and financial communities and by Governments that I felt there was a whiff of quill pen coming from the other side, which is most distressing. The reality is that our financial institutions have a key role in enabling the financing of decarbonisation of the economy but also in promoting nature-based solutions. It is partly about making sure that the natural environment is lending its full hand to solving the climate change crisis, because we need every lever in the kit—every tool in the toolbox—to step up to that challenge. The financial institutions have a key role in that.

However, we also already have government commitments on the natural environment in this country: the Environment Act targets. That was the first time we have had statutory nature conservation targets in this country, which the Environment Act introduced and which become binding on government at midnight tomorrow night. We have to recognise that, if we have big bucks that are directed by the financial institutions and by investment, they absolutely have to tackle both climate change and nature conservation.

We should not look at this as a sort of dead-weight cost on the regulatory process or the financial markets because these investments in nature and climate are vital for our future economic growth. They are the heartland of our future economic growth; the jobs of the future are green jobs. We are behind the curve at the moment; the director-general of the CBI and others are all commenting that we are falling behind and losing our international competitiveness because we are not being vigorous enough in getting investment streams into climate change and nature. So we need the regulators to drive green growth and green investment really hard, for both net zero and nature recovery, to give businesses the confidence to invest.

These are very big bucks: the director-general of the CBI was absolutely clear that, in the past two years, the UK has lost its market share in green tech, which is equivalent to a potential value of £4.3 billion by 2030. Globally, an estimated $32 trillion of investment is needed by 2030 just to tackle climate change. So we are talking about big bucks, big investment, big jobs, big economy and big growth, and we were on it until a very small number of years ago. We have to get back on it to be able to hold our heads up in the international economic community.

So I hope that some of the things I have heard tonight are not government policy and that the Government are still absolutely clear about their commitment to action on the twin crises to turn them into opportunities. So, if the amendment moved by the noble Baroness, Lady Hayman, on regulatory objectives is not adopted, I ask the Minister at least to ensure that the regulatory principles reflect that commitment.

Baroness Bowles of Berkhamsted Portrait Baroness Bowles of Berkhamsted (LD)
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My Lords, I had not intended to speak on this subject, but I very much agree with everything that has been said, especially by the noble Baroness, Lady Young, just now, about the lost opportunity if we do not take climate change and embedding it in financial services seriously. ESG investing is the big growth area at the moment, and what message are we giving if we say, “Well, we’re not really that interested in the ‘E’”? I am not sure about the “S” and the “G” either. We will potentially lose out.

It is not as if this will be an environmental tax on every business, or as if it has to be woven into every last little bit of financial services, like some chain round their neck. I spend some time looking at the general duties of the regulators, and, if I were to say anything about the positioning of this, I would say that it is not necessarily high enough up in the hierarchy because it is entirely forgettable within the layering that we have. I object to the notion that we are still in an era where we can do damage and compensate; you cannot compensate for a ruined planet. That is very much old thinking. It is almost centuries old in my book.

The FCA’s general duties state:

“In discharging its general functions, the FCA must, so far as is reasonably possible, act in a way which … is compatible with its strategic objective and … advances one or more of its operational objectives.”


What we are talking about here is a secondary operational objective, but the whole thing could be forgotten. If you ask me, it should be in the strategic objective, which is the only thing that cannot be rubbed out, because that is where we are at. We can go through this lovely list. Integrity gets rubbed out when it comes to SMEs—we have been through that debate—so climate things will be rubbed out if you want to be one of the rough-and-tumble financial firms that wants to deal with gas and oil exploration. Money is needed for that to work it all through and make sure that there are no stranded assets.

What is the big problem with what I would call a measly secondary objective? I understand the competitiveness and growth objective, which seems to be liberally sprinkled throughout to try to give it some kind of priority, but you have to balance that with sustainability in its broadest sense. All these things are about balance. We cannot have a Climate Change Act that says we will do things and then just ignore it in our biggest industry. It is the biggest case out there and we need something on it here. I will look at this again on Report and the Minister jolly well knows where I will put it.

Infrastructure Bill [HL]

Baroness Young of Old Scone Excerpts
Monday 10th November 2014

(10 years, 2 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Jenkin of Roding Portrait Lord Jenkin of Roding
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My Lords I understand the case that has been made by the noble Baroness, Lady Worthington. I started my consideration of the details of this with the hugely important joint report of the Royal Society and the Royal Academy of Engineering back in June 2012. Indeed, I had substantial discussions with the chairman of the committee that produced the report, Sir Robert Mair, whom I had known previously. Perhaps the most important statement in that report—and it had a great deal of detail backing it up—was that they had reviewed the scientific and engineering evidence on risks associated with UK shale gas development and concluded that those risks,

“can be managed effectively in the UK as long as operational best practices are implemented and enforced through regulation”.

That has been at the heart of my continuing support for the development of the shale gas industry in this country.

My second point—and no doubt my noble friend will be able to elaborate on this—is that the regulation system that we have in this country, in general under the authority of the Environment Agency, is quite different from that in the United States. I am in no doubt that some of the regulation there has been quite seriously defective. That has given rise to accidents that have been reported, and to the lack of support that one is aware of here and that the noble Baroness has referred to. Of course, you only have to read the media to realise that every accident that happens there is greatly magnified through the media—with a trumpet, as it were. If noble Lords studied the various blogs that come out on this every day, I am sure they would realise what an unbalanced argument it has become because of the way in which all these things are presented here in this country.

I have been critical in the past of both the industry and the Government for failing to realise the extent to which they need to fight the case for the development of a shale gas industry. To be fair to the industry, it has now started a considerable programme called “Let’s talk about shale”. Briefly, the leaflet I have been sent speaks of the very considerable activities that the industry is now taking—primarily in the areas of the Bowland shale deposits, because that is where the main arguments come from at the moment, but of course that can eventually be spread nationwide. That is a welcome development, if perhaps a bit belated, but at least it is now happening.

The one point where I agree with the noble Baroness is that the Government have to match that as well, and take these scare stories seriously and counteract them. Indeed, when I talked to the head of the trade association UK Onshore Oil and Gas, I said, “Learn the lesson of instant rebuttal”. We learnt that from a previous Government. If they wanted to scotch a rumour, it had to be the subject of an instant rebuttal. I see very little sign in the media that either the industry or the Government are yet engaging effectively in the instant rebuttal of scare stories.

Having said that, I will perhaps anticipate what my noble friend will say. We now have the most effective system of regulation in the world for our oil and gas resources. It is of a very high standard and admired across the world. There is absolutely no suggestion that the existing powers of the Environment Agency and other bodies involved in this need reinforcing by additional statutory provisions, as in these amendments.

I read the amendments and thought, “For goodness sake, all this is happening already”. The noble Baroness mentioned baseline monitoring. The Environment Agency has the powers—as have the Scottish Environment Protection Agency and Natural Resources Wales—to require baseline monitoring of those environmental indicators it considers appropriate and for the lengths of time it deems suitable for each given site. We discussed this in Grand Committee. I was certainly there arguing that baseline monitoring is hugely important. If there is to be any question of contamination, you have to know what you are starting with. That is what it means and we do that in this country already. I have never heard it suggested that it is anything other than fully effective.

I am not sure that we need the additional provisions in the noble Baroness’s amendments. I have great faith in the ability of our existing monitors. They have these powers and the duties imposed on them. They do not need to be told in detail by Parliament what to do and how to do their jobs, so this is probably unnecessary. I understand the motives behind the amendments, but the issue should be dealt with effectively by proper information programmes to counter the mischievous rumours that one reads in the press every day. I shall be interested to hear my noble friend’s response from the Front Bench, but I do not think that these amendments actually add anything to what we have already.

Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Non-Afl)
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My Lords, I rise to support Amendment 113G. I declare a past interest, having been chief executive of the Environment Agency for eight years. This is a technology that is deeply distrusted by the public. Certainly, my experience of regulation in the environmental field is that if a degree of certainty can be given to both sides—the industry and the public—that is hugely beneficial in removing tension, distrust and suspicion. Industry used to tell me time and again that it would prefer to see clear, unequivocal regulation, which it could then fit its business around and make sure that it was compliant with, so that there was no doubt about the requirements that would be laid upon it. This was the most successful way of developing a degree of trust on hotly contested issues that could have an environmental impact.

Therefore, I urge the Minister to think seriously about placing in the Bill an environmental impact assessment and some of the other associated requirements here. Some of these exist elsewhere in legislation, but there is no harm in making the point that whether they are implemented is not the decision of the Environment Agency but a requirement because this technology is so distrusted by the public. I think it should cover exploration as well as extraction. It should also be associated, if I may say so slightly in advance, with the two amendments—or at least one of them—that I have put down, which we will be debating later. Certainly in the initial stages of this hotly contested area, we need belt and braces, not just belt.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I am content to support Amendment 113G as far as it goes but, to my mind, it does not go anything like far enough. I regret that I will be introducing rather a disconsonant note to the debate. I will outline my opposition to hydraulic fracking, lock, stock and two poisoned barrels, in the debate on a later amendment in my name—here’s to knocking these diabolical fracking provisions out of the Bill. These amendments give a modicum of increased environmental protection, and I welcome the reference to the levels of methane in underground water, to which I shall certainly be returning in a later bank of amendments. I seek some clarification from the mover of the amendment on whether either the Scottish Parliament or the National Assembly for Wales has any role in the consideration of these draft instruments.

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Moved by
113H: Clause 32, page 38, line 8, at end insert—
“(c) outside—(i) Special Areas of Conservation as designated under European Council Directive 92/43/EEC;(ii) Special Protection Areas as classified under European Council Directive 2009/147/EC;(iii) land which is functionally linked to Special Protection Areas and Special Areas of Conservation;(iv) Sites of Special Scientific Interest;(v) National Parks;(vi) the Broads;(vii) Areas of Outstanding Natural Beauty; and(viii) World Heritage Sites.”
Baroness Young of Old Scone Portrait Baroness Young of Old Scone
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My Lords, I am slightly nervous about speaking to Amendments 113H and 115 in my name on the Marshalled List. The mood of the House appears to be that if you dare to utter a word that strengthens environmental protection in any way you are immediately regarded as an anti-fracker. In my case, nothing could be further from the truth. I hope that my track record in having managed a good balance between business and the environment for many years in the Environment Agency and before that is an example of how environmentalists can be keen on ensuring good levels of protection, while not then getting in the way of progress or commercial activity.

The two amendments are about the need for protection of our most important conservation areas. Amendment 113H is similar to one about which we talked in Committee but has some significant differences. I thank the Minister for meeting me last week to discuss my concerns and to debate the best way forward in addressing them. The reality is that there are possible impacts on nature conservation and biodiversity as a result of fracking. We know about them; in terms of water abstraction and pollution, and habitat damage and disturbance, they have been rehearsed adequately here and in another place.

I will give an example—which I am sure is absolutely uppermost in your Lordships’ minds every minute of the day—and that is pink-footed geese. The pink-footed geese in this country in the winter comprise about 85% of the global population. We are hugely important for the survival of the species on a global basis. They are highly dependent on three parts of the UK for their wintering grounds and at least one of those, if not more, is a key site for shale gas extraction; that is, the Bowland area in the north-west. We really have to get this one right, not just for us and the pink-footed geese but for global conservation. If we expect other countries to look after their biodiversity in order to prevent species going extinct, we have to play our role with those species for which we have a huge international responsibility.

That is the whole purpose of some of those protected areas, to ensure that important habitats and important species are not put into jeopardy as a result of other activities. So there are areas where, when push comes to shove, their biodiversity importance has to take predominance. Less than 12% of the area currently potentially available for shale gas extraction comes under such designations, so we are not talking about huge areas. The amendment is seeking to demonstrate that we need to make special provisions and avoid extraction in those areas or where it would impact on land that is functionally linked to those areas, which would also create detriment as a result of that linkage.

Apart from the biodiversity and conservation importance of the amendment, it is vital to try to put up front what the key requirements are so that the industry is clear about what it needs to steer away from. In the very early stages of the offshore wind debate there were a number of sites in the North Sea that were, quite frankly, barking in terms of their biodiversity impact. To give them their due, organisations interested in biodiversity conservation and the industry worked together to identify the areas where it would be crazy to try to get offshore wind developed and, therefore, the areas where by default it was a sensible idea to press ahead. That good piece of work demonstrated very clearly where the industry could get ahead, get licences and start to generate power in a way that was not going to be stultified by conflict with the conservation movement. That is the approach we should be taking with shale gas extraction, to ensure clarity about those areas where it is really not a good idea to be proposing this, so that people can get ahead and move much more quickly in the areas where there is not that potential for conflict.

That is Amendment 113H. I know that the Minister is not inclined to accept it but there it is, for what it is. I am sure the Minister will say that there is the National Planning Policy Framework, which puts in enough controls, and that there is other European-linked legislation that will put in other controls, but I believe that it is worth putting it in the Bill, in one place, so that nobody is in any doubt about the areas that both the Government and the public would like shale gas extraction steered away from so that other areas can be much more rapidly exploited.

Amendment 115 is a fallback proposition—plan B, as it were—should the Minister not be inclined to accept the list, which is actually a shorter list than in my original amendment in Committee; I have taken out all the local wildlife sites and kept only the nationally and internationally important sites. If the Minister is not too thrilled with Amendment 113H, Amendment 115 might be a more practical proposition.

There is already precedent. There is planning guidance that the Government, in a very welcome fashion, have put down with regard to applications for development within AONBs—areas of outstanding natural beauty—and national parks. What I am asking for in Amendment 115 is a degree of consistency across all the landscape and conservation designations, with other protected areas being brought into that planning guidance. If not, there will be a feeling in the industry that if the Government think it is so important to give planning guidance for AONBs and national parks, and since they have not thought it as important to give planning guidance for SACs, SPAs, Ramsar sites and sites of special scientific interest, there is some sort of hierarchy and that the areas of outstanding natural beauty and the parks are more to be steered away from than the other designations because the Government have given additional guidance on them.

It would be useful if the Government would acquiesce to Amendment 115 and expand the planning guidance that has already been given to some protected sites to others in order to send a signal that the Government believe—and I absolutely accept that they do—that all these protected sites are important. I beg to move.

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Lord Jenkin of Roding Portrait Lord Jenkin of Roding
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The noble Baroness had an amendment in Grand Committee which addressed the question of whether there should be downward drilling and whether pads for developing shale gas could be located in any of these places. Although we did not vote in Grand Committee, the argument was perfectly clear that it would depend on the site. You have got planning permission and you have got a whole range of other things. I must confess I have not reread the noble Baroness’s debate on that occasion, but what we were talking about here is 300 metres below.

Baroness Young of Old Scone Portrait Baroness Young of Old Scone
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Perhaps I may give just a couple of examples. Water pollution and the impact on aquifers in general could be quite a substantial issue. We already know that the volume of wastewater coming from shale gas extraction sites is substantial. For the most part that will be brought back to base, but where aquifers are involved we are not absolutely clear about that. There are a number of issues which are not just the site-based issues on the surface. They are about what is happening in terms of underground processes as well.

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Baroness Young of Old Scone Portrait Baroness Young of Old Scone
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My Lords, I thank the Minister for her words, and all noble Lords who have contributed to this debate. I am reassured that there is already strong environmental protection for these sites, but I am not reassured that it is necessarily always going to work.

There are two dimensions. First, I was interested in the experience of the noble Earl, Lord Caithness, and his wind farms. There was an example where there were environmental considerations that should have given a strong signal to the developer that it was not a sensible place to put a wind farm, but he nevertheless barrelled on. One assumes that it will go to appeal. So we are not giving the right signals to potential developers of sites that it is a waste of their time, effort and money to get into disputes in areas where there is a very strong case for the protection of the biodiversity interest, and where it is therefore going to be a struggle for them to get permission. We need to give them very strong signals that it is going to be a lot easier and cheaper for them not to set their hearts on some of these highly protected biodiversity sites.

We also have a case in Kent at the moment, for a housing development being proposed to the local authority. I am earnestly hoping the planning authority will turn it down. It is a proposition for 5,000 houses to be built on 300 hectares of a site of special scientific interest. If the development goes ahead it will be the largest loss of SSSI land for the last 30 years in this country. It will be a complete outrage. But the developer has been barking enough to set themselves on that site. That is an example where the developer is simply not reading the signals, so the signals need to be absolutely explicit.

I very much appreciate the point that the noble Lord, Lord Whitty, made. This is an effort to try and make sure that fracking gets off on the best possible foot, with a really clear commitment linked specifically to shale gas extraction about environmental protection being absolutely paramount. We should not rely just on other pre-existing legislation but gather together the real requirements that this industry needs to take account of, so that we can reassure the public and move ahead.

I was hoping that the noble Baroness might give me hope for Amendment 115 at future stages of the Bill, because the situation seems totally anomalous. I would like to understand from her why the Government felt it necessary to issue guidance on areas of outstanding beauty and national parks, which have strong environmental protection requirements already, but not on the other nature conservation sites. However, I beg leave to withdraw the amendment and hope the Minister might think more kindly of the amendments in pushing the Bill to another place.

Amendment 113H withdrawn.