Lord Bilimoria Portrait Lord Bilimoria (CB) [V]
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My Lords, an independent review of the economics of biodiversity, produced by Professor Sir Partha Dasgupta of the University of Cambridge—I declare my interests—describes nature as “our most precious asset” and finds that humanity has collectively mismanaged its global portfolio. Our demands far exceed nature’s capacity to supply the goods and services that we all rely on, and the last few decades have taken a devastating ecological toll. The review highlights that recent estimates suggest that we would need 1.6 earths to maintain humanity’s current way of life. As Professor Dasgupta said:

“Truly sustainable economic growth and development means recognising that our long-term prosperity relies on rebalancing our demand of nature's goods and services with its capacity to supply them.”


Since 1970, there has been an almost 70% drop, on average, in the populations of mammals, birds, fish, reptiles and amphibians. Some 1 million animal and plant species—almost a quarter of the global total—are believed to be threatened with extinction.

The CBI, of which I am president, has been addressing resources and waste reforms. In the wake of Covid-19, the new UK-EU relationship, rapid technological advancement and climate change, the country has a defining opportunity to set an ambitious target and course for the next decade and beyond. Protecting the environment for future generations should be at the heart of any economic vision for the UK. We have just launched our economic strategy—Seize the Moment: An Economic Strategy for the UK—for the next decade until 2030; climate change, biodiversity and the environment are key pillars of this.

Just as the CBI and our members stand with the Government on meeting the UK’s target for net-zero carbon emissions by 2050, we are supportive of the ambition behind the resources and waste strategy to move towards a circular economy. The drive towards a circular economy, where resources are used efficiently and waste kept to a minimum, presents a genuine opportunity for the UK to be a world leader in sustainability. This could bring huge economic benefits, increasing our lagging productivity and improving prosperity for all. Responsible businesses know that they have a crucial part to play in protecting our environment and are acutely aware of the high consumer demand for firms to be proactive. We look forward to business continuing to work with the Government to ensure that we establish a pathway to a circular economy that enhances business competitiveness and empowers consumers to make positive choices. Does the Minister agree with this?

Some of the key points are that businesses need more visibility over how the reforms will work in practice. Taken together, the Government’s reforms are the most comprehensive overhaul of England’s waste and recycling system in a generation. Reforms on this scale are inherently disruptive, so it is crucial to ensure that their implementation, both logically and practically, take the pressures facing business into account. Many CBI members feel that the pace of reforms and lack of clarity of their design, so close to implementation, mean that many could struggle to make the necessary changes in time. Do the Government agree with that?

There are additional costs and burdens on business that need to be kept to a minimum. Consumers must be encouraged and empowered to make positive choices. The BBPA, which is a member of the CBI and of which my business is a member, says that it is crucial that the implementation of a deposit return scheme does not further hinder pubs, brewers and producers, but provides them with a platform to play an important role in supporting our environment, while continuing to operate efficiently and profitably.

The B7, which I was privileged to chair last month, feeds into the G7. There are important milestones to deliver successful outcomes and build momentum ahead of the B20, the G20 and COP 26. As we address the challenge of reducing carbon emissions, business also needs to consider wider impacts on the environment, particularly biodiversity, where more work needs to be done to understand how business and government can work together to create a sustainable future for all. G7 nations should prioritise national policies to support the development of markets that value diversity, biodiversity, natural environments, natural carbon sinks and nature-positive business activity. Biodiversity loss is occurring worldwide, and the decline is set to continue under business-as-usual patterns of activity. The World Economic Forum estimates that over half of global GDP is threatened by nature loss. Therefore, preserving nature is central to a sustainable future.

The G7 Energy and Climate Ministers issued a joint communique on G7 climate and biodiversity, and it is encouraging that they have taken the B7 recommendations on board. The OECD speaks about natural capital underpinning all economic activity. Greener UK says that the stakes could not be higher for this first dedicated environmental Bill in over 20 years. The World Wildlife Fund welcomes the Environment Bill and calls for a statutory deforestation target. Are the Government considering this? The UK NGO Forest Coalition says that halting the global loss of forests and other natural ecosystems is essential.

I conclude with Sir David Attenborough, the famed Cambridge alumnus, who welcomed the Dasgupta review, saying that it is

“the compass that we urgently need.”

He said:

“Economics is a discipline that shapes decisions of the utmost consequence, and so matters to us all. The Dasgupta Review at last puts biodiversity at its core … This comprehensive and immensely important report shows us how by bringing economics and ecology face to face, we can help to save the natural world and in doing so save ourselves.”

Earl of Kinnoull Portrait The Deputy Speaker (The Earl of Kinnoull) (CB)
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I call the noble Lord, Lord Sheikh.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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Lord Sheikh, you need to unmute.

Earl of Kinnoull Portrait The Deputy Speaker (The Earl of Kinnoull) (CB)
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I regret that we are having connection problems with the noble Lord, Lord Sheikh, so we move to the noble Lord, Lord Bradshaw.

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Lord De Mauley Portrait Lord De Mauley (Con) [V]
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My Lords, only a few days ago, I was delighted to hear a speech given by my right honourable friend the Secretary of State for Environment, Food and Rural Affairs on restoring nature. In it, he lamented the failures of the past 50 years and promised a new approach, announcing plans for

“creative public policy thinking that can deliver results”

and moving

“the emphasis away from processes that simply moderated the pace of nature’s decline”.

Of particular note is this comment from my right honourable friend:

“In Natural England, we have exceptional technical expertise on habitats and our protected sites but this precious expertise is often distracted by highly prescriptive legal processes. I would like to get to a position where our talented staff in Natural England have fewer distractions and are able to prioritise the interventions that will make a big difference. I want them to have more freedom to exercise judgment rather than being stewards for a process.”


I was also fascinated to listen to the words of my noble friend Lord Ridley earlier. I propose to continue his theme. Biodiversity net gain is a particularly interesting concept to enable achievement of the Secretary of State’s ambition, as set out in a Written Ministerial Statement of 18 May,

“to deliver a regulatory framework that is fit for purpose in driving forward our domestic ambitions … We need a revised approach to deliver this new species abundance target and better support iconic and much-loved native species”.—[Official Report, Commons, 18/5/21; col. 45WS.]

I propose to focus my remarks on Clauses 92 to 94 and Schedule 14—the part dealing with biodiversity net gain, which I warmly welcome.

Noble Lords may be interested in a case study. As set out in the register of interests, I have an interest in a commercially operated lake in the Cotswold Water Park, as well as other land nearby. Land managers were notified on 7 January that an old 1994 SSSI of 135 hectares was being enlarged to 15 times its size to include all the Cotswold Water Park’s 177 lakes—a total of 2,074 hectares.

I have no doubt that all those managing land there agree that it is a special place for nature and are willing to work with Natural England to preserve and enhance nature and biodiversity. Indeed, for many years, many of us have welcomed the BTO’s volunteers, who have counted the birds there and contributed in many other ways. However, what is relevant to the provisions of the Bill on biodiversity net gain is that there is no doubt that active management will be needed to preserve and enhance the habitat.

Indeed, that is acknowledged by Natural England in its “views on management”, which accompanied the notification. For example, it says:

“For the more sensitive pioneer species suitable habitat conditions require regular management of the early successional stage … These habitats may require some active management … Exposed areas of bare ground on islands should be maintained to provide nesting sites”.


Those are just examples. Much more can and should be done if we are to improve matters for nature. These things will not happen on their own; they will cost money.

Habitat banks for the purposes of biodiversity net gain credits under the Bill offer much promise in that regard. However—I would be grateful if the Minister could check this and write to me—we are advised that Natural England, as a matter of policy, specifically denies land managers the ability to take advantage of the opportunities presented by biodiversity net gain and, I think, ELMS, in respect of land subject to an SSSI notification.

One can understand that, perhaps for pristine wilderness, that may be appropriate, but for a habitat created by human intervention and under active management to preserve its otherwise transient state, it does not sound very sensible. It rather sounds as if, on the one hand, Natural England is telling us that active management is necessary while, on the other hand, it is removing the very tool that the Government are even now fashioning to enable us to fund that necessary active management.

Rather shockingly, it transpires that of the lakes designated in 1994, every one is, in Natural England’s own assessment, at “unfavourable declining” status. However, the large areas of the Cotswold Water Park that had not until now been so designated are, again at Natural England’s own assessment, in favourable conservation condition. This is in spite of—or, it might be argued, because of—activities that have gone on for years, for which Natural England now insists its consent is obtained.

Unless there is a clear and coherent plan to overcome the historic failures, it is unreasonable to repeat the mistakes of the past on a much larger scale, especially when there are now better options available that provide for conservation and enhancement. I do not have time to talk about a number of other controversial matters about the process that has been followed by Natural England here. Suffice it to say, there are several, and they include serious legal errors.

The Bill contemplates innovative mechanisms for true, sustainable development, such as the opportunities emerging from biodiversity net gain as part of development and habitat banks for offsetting. In his speech, the Secretary of State said that if we are to

“reverse the downward trend we have seen in recent decades, we need to change our approach,”

and we need to change it right now.

I particularly welcome the biodiversity net gain provisions of the Environment Bill. I hope that sense will prevail and my right honourable friend’s ambition that Natural England has fewer distractions, is able to prioritise the interventions that will make a big difference and has more freedom to exercise judgment—rather than be a steward for a process—will come to pass.

Earl of Kinnoull Portrait The Deputy Speaker (The Earl of Kinnoull) (CB)
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The noble Earl, Lord Kinnoull, has withdrawn, and I call the noble Lord, Lord Duncan of Springbank.

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Lord Berkeley Portrait Lord Berkeley (Lab) [V]
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My Lords, I welcome the Bill, as many other noble Lords have done, but it clearly needs quite a lot of improvement, which I am sure we will be able to do in the subsequent stages. I shall start by commenting on the difference, raised by many noble Lords, including my noble friend Lord Whitty and the noble Baroness, Lady Sheehan, between the EU structure that we used to have and the present Bill. To sum it up, I found from working on transport and the environment from the industry point of view that the difference was that the EU was seen to be totally independent of the Government and had teeth. Those are the two things that we need to look at in discussing the Bill.

The Bill is full of targets, which is a good thing. As many noble Lords have said, they are very wide-ranging and welcome. I believe that many of them need to be legally binding, but we also need to talk about monitoring and enforcement, and all that needs resources. It is not just the targets in this Bill; many other parts across government need to have some kind of connection if we are going to achieve the overall targets that everybody wants, one of which is net-zero carbon.

I shall cite one or two examples from the transport field. The first is biomass. Ministers occasionally say that if we have 100% biomass-fuelled airliners, we can fly as much as we do at the moment, but then somebody else has said that if you want that amount of biomass, every piece of cultivatable land in the world will have to grow biomass and therefore we will all starve. That is not a very good idea. Ditto the latest idea of having hydrogen powering everything. I am told that to create so many kilowatts of hydrogen, you need double the amount of electricity that you need if you use it to power whatever you are trying to do. We have to find solutions for all this. In his wonderful valedictory speech, the right reverend Prelate the Bishop of Salisbury mentioned a phrase that many people are frightened to mention: there will have to be some change of lifestyle.

The other example I shall give is from a debate we had a couple of weeks ago in your Lordships’ House on electric scooters. I pointed out that by the end of this year there will be 1 million scooters operating illegally in this country and asked how the Minister would suggest that ensuring that these scooters do not go on the roads, cycleways or footpaths could be achieved without a massive increase in the number of people and the budget. I am afraid that Ministers tend to ignore the whole question of enforcement. They say that the allocation of funding is difficult, but it needs to be done if the law is to be respected, and that applies to many things in this Bill.

My other point relates to water contamination in the Chilterns caused by HS2, which the noble Lord, Lord Randall of Uxbridge, also raised. I am concerned about the non-disclosure agreements that people have to sign, which mean that all environmental data seems to be confidential. I am sure that many noble Lords would agree that environmental data does not need to be confidential. These poor people in the Chilterns could not even get the information they needed by making a freedom of information request, and they had to go to court. Of course, the documents have now come out saying that six public water suppliers may need additional treatments and asking who will pay for it. I have had similar problems trying to help the people of Wendover, a bit further up the line, get information out of the Government about why they will not talk about putting the railway in a tunnel rather than a viaduct. I have a little bit of experience with tunnelling, but it is still very difficult.

For me, the office for environmental protection needs many more teeth, as the noble Lord, Lord Duncan of Springbank, told us. I want it to be able to force government authorities to produce information, to take people to court, and to support judicial reviews and everything else which would make the concepts and principles in the Bill really work. If we do not do that, we are wasting our time, and it will just be a series of good words. I look forward to many more debates in the future stages of the Bill.

Earl of Kinnoull Portrait The Deputy Speaker (The Earl of Kinnoull) (CB)
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The noble Lord, Lord Curry of Kirkharle, and the noble Baroness, Lady Fookes, have withdrawn. I call the noble Earl, Lord Devon.