Crown Estate Bill [HL]

Debate between Baroness Young of Old Scone and Baroness Hayman

Committee stage
Monday 14th October 2024 Lords Chamber

[Baroness Hayman (CB)]

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 (Lab)]

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.