Clean Growth Fund

Lord Grantchester Excerpts

Wednesday 28th October 2020 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Baroness that there are tremendous opportunities, but we have a number of other government funds outside of the one that we are discussing today. For instance, the Green Homes Grant scheme has a training element within it, with several million pounds of grants allocated to training providers to provide jobs in exactly the sector that she mentions.

[Lord Grantchester (Lab)]

The managing partner of the Clean Growth Fund, Beverley Gower-Jones, has said that the fund will hopefully invest in two companies before the end of the year. This is from among hundreds of applications. Can the Minister explain how the aim of only two companies is reflective of the UK’s bold climate ambitions? How will the taxpayer share in any return and when might that opportunity materialise?

[Lord Callanan (Con)]

That is two companies this financial year; a number of other companies are in the pipeline. I am sure that the noble Lord would agree that it is proper that the fund manager does the appropriate due diligence to check that the money is well spent and invested properly. There have been 400 expressions of interest and the duration of the fund is over 10 years. It is a commercially driven fund and we hope to get our money back at the end of the day.

World Energy Outlook 2020

Lord Grantchester Excerpts

Tuesday 20th October 2020 Lords Chamber

[Lord Callanan (Con)]

Indeed there is—and we have taken a leadership role by setting our 2050 net-zero targets, by setting a phase-out date for petrol and diesel vehicles, and by introducing policies to incentivise the electric vehicle market. Accelerating the clean energy transition globally is the focus of our work going up to COP 26.

[Lord Grantchester (Lab)]

My Lords, the 2020 report shows above all that renewables will be integral to the future energy mix that will power modern economies. Yet, under this Government, clean energy investment plummeted by 56% in 2017 as a result of cuts to various renewables schemes, and it has fallen each year since. Can the Minister confirm what urgent steps the Government will take to promote clean energy investment? In particular, will the continually delayed national infrastructure strategy contain strong policies in this regard?

[Lord Callanan (Con)]

Well, the Government’s policies towards clean energy investment have been a resounding success. We are seeing record levels of deployment and the costs of clean energy are falling dramatically—we will see that during the next contracts for difference round next year—but, of course, we keep all these things under review.

Trade Bill

Lord Grantchester Excerpts

Committee stage
Thursday 15th October 2020 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, I support Amendment 84 in the name of my noble friend Lady Noakes, which she moved so eloquently. Like her, I am a strong supporter of the Government’s trade policies, but I share her wariness about the Bill’s powers to require disclosure of information. I believe that it is not the kind of thing a Conservative Government should do, in so far as those powers go beyond what is absolutely necessary.

I also agree with my noble friend’s Amendment 87, and I ask my noble friend the Minister to explain exactly which other functions the Government had in mind when they drafted the rather convoluted language of subsection (2). I also agree with my noble friend’s Amendment 88. Why does the Minister think that HMRC should have the power to disclose what may well be sensitive information, the disclosure of which might have an anti-competitive effect?

I also have some sympathy with Amendment 85 in the name of the noble Lord, Lord Bassam of Brighton. Can the Minister explain in what circumstances he thinks it would be necessary and reasonable to use this Henry VIII power?

[Lord Grantchester (Lab)]

My Lords, I thank the noble Baroness, Lady Noakes, for her Amendment 84 in this group, as it gives the Committee the opportunity to examine again the powers being taken by the Government and their agencies in the Bill and whether they are being drafted too widely. The noble Baroness asked some very pertinent questions about the powers being given by the Government to HM Revenue and Customs, not only regarding the compulsion with which any person must comply and the comments made in the other place but on whether this will become a general trawl for all sorts of commercially sensitive data. Under Clause 7(3)(a), regulations may be drawn rather more widely than is considered appropriate.

I will speak to Amendment 85, in the name of my noble friend, Lord Bassam of Brighton, which raises the issue that secondary legislation does not and should not have the power to change primary legislation. Clause 7(4) does this, “among other things”. Paragraph 71 of the Explanatory Memorandum explains that this power is needed to make amendments to the tax primary legislation in order to allow tax returns

“to be amended to include the request for exporter information.”

This probably brings us back to Amendment 84 and compulsion. Would it be an offence to mark the question “not appropriate”? When the words “among other things” are used, how far does that go? If the power is necessary, surely it can be made quite simply in the next Finance Act, maintaining constitutional propriety.

As this is a probing amendment, there is no need to press the point regarding Clause 7(5). Your Lordships’ Delegated Powers and Regulatory Reform Committee did not draw anything in the Trade Bill to our attention, although the Constitution Select Committee discussed the Bill at length in its 15th report. While that committee focused primarily on the Trade Remedies Authority and the devolved Administrations, it drew attention in general to the Government taking presumptive rather than explicit powers. It did not specifically draw attention here to Clause 7, even though powers over taxation have a long history. The Committee needs to seek further clarification and detail on the exporter information being requested in the clause. Can the Minister clarify whether this will be purely financial and whether any guidance on the matter will be published? Could not this information be acquired in a separate request, apart from a person’s tax return? Clause 7(1) seems to suggest that the information required is merely to establish the number and identity of exporters. Is this heavy-handed approach therefore appropriate? I suggest that the information sought goes somewhat wider than that.

The noble Baroness’s Amendments 87 and 88 return to the extent and the wide-ranging nature of the powers. Other speakers in this group have outlined the importance of data to companies. The noble Baroness, Lady Neville-Rolfe, confirmed that data can and does go astray. In a later group we will discuss wrongful disclosure. The noble Baroness, Lady Bowles, spoke against allowing disclosure to be wholly at the Government’s discretion. There are some serious questions here, and I await the Minister’s further comments.

[Viscount Younger of Leckie (Con)]

My Lords, I am most grateful to my noble friend Lady Noakes and the noble Lord, Lord Bassam of Brighton, for their amendments and their contributions to the discussions on the Bill and on these amendments. I will take Amendments 84, 85, 87 and 88 together as they are closely related. I hope I will be able to address most of the questions raised this afternoon in this very short debate, notably by my noble friend Lord Trenchard and the noble Lord, Lord Grantchester. If not, I will certainly do so in writing, in particular on the questions raised on the powers and constraints regarding data sharing.

--- Later in debate ---

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

I wonder whether I could take advice from the Minister on whether to call a Division.

[Lord Grantchester (Lab)]

I suggest that, as with all other noble Lords’ amendments, the Government just withdraw it at this stage so that we can return to it on Report.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

Would the noble Lord, Lord Purvis, be happy if we returned to this at a later stage? Does the noble Lord particularly want to call a Division at this stage?

Trade Bill

Lord Grantchester Excerpts

Committee stage
Tuesday 13th October 2020 Lords Chamber

[Deputy Chairman of Committees (Lord Alderdice) (LD)]

I call the noble Earl, Lord Sandwich. No? Then I call the noble Lord, Lord Grantchester.

[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady Sheehan, for bringing forward both amendments in this group. I also thank my noble friend Lord McConnell for adding his name to Amendment 39, on sustainable development goals, and the noble Baroness, Lady Bennett, for adding her name to Amendment 97 on agreements in relation to the least developed countries. All speakers last week expressed support.

We need to make sure that developed countries are not the only winners from trade, and certainly not at the expense of developing countries. We need to be mindful of the effect on those less developed so that they are encouraged and not inadvertently harmed through any unintended consequences. The winners from trade should be people and the planet. Any trade deal should help tackle inequality and the environmental challenges we face. Trade should not mean ignoring our commitments to the sustainable development goals and to a sustainable trade policy, especially now, as all nations seek to recover from Covid-19. The scheme of preferences may not be sufficient.

The pandemic has exposed global inequality and is projected to push millions of people into unemployment and poverty, even at the risk of starvation and death. It is more important than ever to bring a renewed impetus to achieve all the sustainable goals. This has been reflected in more and more councils across the country passing commitments in support of the SDGs. My noble friend and colleague Lord Collins is conducting a review on reform of the United Nations to consider how best to improve its workings to meet SDGs better. So far the UK has not been on a trajectory to meet any of the goals that the Government have committed to. No progress has been made on this since 2011.

The issue is important; the benefits of trade need to be shared with everybody, both here in the UK and in developing countries around the world.

[Viscount Younger of Leckie (Con)]

My Lords, I thank all noble Lords who spoke to Amendment 39 on Thursday and the noble Lord, Lord Grantchester, today. As I mentioned last week as we debated Amendment 12, our continuity programme is fully compliant with environmental obligations, such as those found in the Paris Agreement on climate change. So, too, is it fully compliant with the UN sustainable development goals.

I welcome and support the objectives of the SDGs, and I assure your Lordships that the work of my department is always in alignment with important multilateral commitments. As our continuity programme seeks to replicate existing EU agreements, it follows that it is absolutely coherent with existing international obligations, including the UN sustainable development goals, and it will remain so. On that basis, I believe that this amendment is unnecessary.

Amendment 97 would oblige the Government to lay before Parliament a further assessment of the impact of our free trade agreements with the least developed countries and lower-middle-income countries before commencing the substantive provisions of the Trade Bill, and again every 12 months afterwards. I can assure noble Lords that the Government are determined to continue playing their role as an engaged partner to the developing world. We have signed continuity agreements with the CARIFORUM states, the Eastern and Southern African states, the Southern African Customs Union bloc and others. Discussions with further developing countries continue, and my department hopes to make good progress in delivering continuity before the end of the year.

In terms of questions that were raised on Thursday relating to communication and transparency, we are committed to providing Parliament with updates on our trade programmes with the developing world, which we are delivering through our parliamentary reports, where that is relevant, a regular and productive dialogue with parliamentary committees at ministerial and official levels, and a report which the DIT will make to Parliament. I remind your Lordships that we are seeking only to replicate the provisions of the EU’s agreements with developing countries.

Ultimately, we do not believe it is proportionate or sensible to provide reports every year, when our objective is continuity with the status quo. As our continuity agreements clearly safeguard such international commitments and the Government are wholly committed to the preservation and improvement of the environment, I ask for the amendments to be withdrawn.

Trade Bill

Lord Grantchester Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 8th October 2020 Grand Committee

[Lord Grimstone of Boscobel (Con)]

I have noted carefully the noble Baroness’s comments. I am sure that both I and other Committee members will consider them carefully.

[Lord Grantchester (Lab)]

I have one more small point. The Minister’s reply to the question of CRaG and how it applies to continuity agreements did not really reflect on the remarks of the noble Lord, Lord Lansley, regarding TRQs, as they go wider than just the Japan deal. The status quo underlying EU agreements and continuity agreements cannot really ignore TRQs and any outcomes. Can the Minister respond more fully on TRQs and their differences and how they are reported on under the CRaG process?

COP 26: Sponsors

Lord Grantchester Excerpts

Tuesday 6th October 2020 Lords Chamber

[Lord Callanan (Con)]

We will be closely studying and monitoring companies that come forward for these sponsorship opportunities, which will favour taxpayers’ money—that is the ultimate objective. We will study their plans carefully and monitor them as they progress.

[Lord Grantchester (Lab)]

According to overnight reports, the Government are planning for all 30 million homes in the UK to be powered by gusts of wind from offshore wind installations. The Government have always maintained that they stay technology-neutral in their encouragement of renewable energy sources. Yet the Conservative Party has advised that the sun does not always shine brightly, nor the wind blow consistently. Can the Minister confirm whether the Government are now picking winners and losers among green technologies and whether this will be reflected at COP 26 in its sponsors?

[Lord Callanan (Con)]

No, we are not picking winners. We always examine a range of different technologies and we are backing a range of different technologies. The contract for difference auctions will not discriminate between different technologies and we will keep them all under constant review.

Trade Bill

Lord Grantchester Excerpts

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Tuesday 6th October 2020 Grand Committee

Moved by

[Lord Grantchester]

20: Clause 2, page 2, line 23, at end insert—
“( ) Regulations may only be made under subsection (1) if—(a) the provisions of the international trade agreement to which they relate are consistent with standards for food safety and quality as set and administered by—(i) the Department of Health;(ii) the Food Standards Agency;(iii) Food Standards Scotland; and(iv) any other public authority specified in regulations made by the Secretary of State;(b) the Secretary of State is satisfied that mechanisms and bodies charged with enforcement of standards for food safety and quality have the capacity to absorb any extra requirement which may arise from the implementation of the agreement; (c) the provisions of the international trade agreement to which they relate are consistent with policy to achieve reduction in the risk of disease or contamination as set and administered by—(i) the Department of Health;(ii) the Food Standards Agency;(iii) Food Standards Scotland; and(iv) any other public authority specified in regulations made by the Secretary of State;(d) the provisions of the international trade agreement to which they relate are consistent with achieving improvements in public health through any food policy priorities set and administered by—(i) the Department of Health;(ii) the Food Standards Agency;(iii) Food Standards Scotland; and(iv) any other public authority specified in regulations made by the Secretary of State;(e) the provisions of the international trade agreement to which they relate comply with policy to achieve targets for farm antibiotic reduction set by the Veterinary Medicines Directorate;(f) the provisions of the international trade agreement to which they relate comply with retained EU law relating to food standards and the impact of food production upon the environment; and(g) any food or food products to which the provisions of the international trade agreement apply meet standards of labelling, indication of provenance, and packaging specified by the Food Standards Agency or Food Standards Scotland.”Member’s explanatory statement
This amendment would ensure that regulations made under Clause 2 can only be made if the trade agreement which the regulations would implement enshrines UK standards in legislation and adheres to UK standards of food production and food safety.

[Lord Grantchester (Lab)]

Amendment 20 is in my name and I thank the noble Baroness, Lady Bennett of Manor Castle, for adding her name to it. It concerns the importance of food safety and quality, and how these issues are administered through government departments and agencies for these matters. This includes the importance of nutrition.

We are all rightly proud of the high agricultural and food standards in this country. Many people believe that trade must not undercut those standards, not only to maintain fair competition for agriculture, the food service and food manufacturing sectors—and the diverse food chain—but to maintain and improve the health benefits to consumers from transparent certified and production regulations. These latter points have been underlined by the Mail on Sunday in a letter from Jamie Oliver, the people’s chef, and PE teacher Joe Wicks. The letter, with wide public endorsement, does not want the Government to

“trade away our children’s futures”.

Alongside the letter, a Delta poll found that 68% of people believed that the most important priority for Britain is to maintain high standards for food, even if that meant some trade deals did not materialise.

Amendment 20 has an overreach into the Agriculture Bill, which passed all its stages in the House last week, now that it includes important provisions on this issue. “Food standards” includes not only food safety but production standards, environmental protections and welfare. In this amendment, these regulated standards are administered by the named government department —the Department of Health—and the other executive agency, the Food Standards Agency, including Food Standards Scotland.

We all know the threat post by a potential trade agreement with America and Australia, for example. Although the Bill technically deals with precursor agreements, nevertheless it is important to clarify that these also pass these most stringent tests as they develop. In the case of Japan, these rollover deals can go further. It is material to this debate that the US has 10 times the level of food poisonings that exist in Europe.

The Global Economic Governance Programme of Oxford University has reported that as the Government transferred the entire acquis of EU law into UK law through the withdrawal Act, substantial decision-making powers were conferred on UK Ministers to amend the legislation. That includes amendments through secondary legislation, which carries far less scrutiny in its procedures than primary legislation. There are anxieties around the claimed certainty of the withdrawal Act, heightened by the Government’s bringing forward the internal market Bill, now with further amendments proposed and inserted into the Bill at a very late stage in its Commons consideration. That is why so little credibility is attached to the many protestations from the Government that their word that they will maintain the UK’s high standards in its negotiations can be relied upon. May I stress to the Minister that he reconsider his often-repeated assurances, since they are not being developed into meaningful, transparent procedures and are in themselves inadequate?

This amendment, under proposed new paragraph (e), also has cognisance of future dangers through antimicrobial resistance—AMR—on which UK agriculture has already demonstrated admirable awareness by reducing antibiotic usage considerably over recent years. I also underline proposed new paragraph (g), which draws attention to the issue of labelling, country of origin specifications and the importance of branding through geographical indicator schemes, which have proven so successful in driving high-quality exports. It would be helpful to have the Minister’s comments on the record that these provisions will continue to be recognised through continuity agreement enhancements.

Although it was not initiated by me, I have added my name to Amendment 23, in the name of the noble Lord, Lord Purvis, and other noble Lords, and I will speak only momentarily to it. The Government themselves brought forward this amendment on Report of the previous Trade Bill, which was so graciously steered through your Lordships’ House by the noble Baroness, Lady Fairhead. It was good to see her attending this Committee, and I look forward to hearing from her later. Our Benches were part of the cross-party consensus on which that government amendment was based. I am sure that, through these amendments, other proposers will underline the key necessity of maintaining statutory protections. Only 18 months on, can the Minister give cogent reasons why the Government should now wish to discard this important safeguard?

I thank the noble Baroness, Lady McIntosh, and other noble Lords for their supporting Amendments 24 and 25; I will speak to my Amendment 56 in this group. I also thank the noble Baroness, Lady Jones of Moulsecoomb, and my noble friend Lord Rooker for adding their names to this amendment. While it may appear onerous, I consider it important that government must produce a register that can ensure equivalence and a transparent baseline for a level playing field. That would be another way for the Government to deliver on their election promise to maintain the UK’s high agricultural, environmental, plant health and animal welfare standards.

My Amendment 67 in this group goes further by recognising the importance of animal sentience. The Government have agreed to introduce a measure recognising this to ensure that all future legislation on the welfare of animals is assessed against that standard. While the amendment does not seek to be the whole answer to this issue and does not define animal sentience, nevertheless it would be helpful to hear from the Minister what now is the Government’s view on this and when they might bring forward a specific Bill.

I thank the noble Baroness, Lady Jones of Moulsecoomb, for her Amendment 74 in this group and commend her for the thorough way she approaches the issues at all times—that ratification of trade agreements must be compatible and have equivalence with UK standards. The key approach of all these amendments is that modern trade agreements allowing imports of food into this country have to reflect the quality of food to which all domestic food must comply. Why allow substandard food that would be condemned here to be imported into the UK? This needs to be enshrined in legislation. I beg to move.

[Baroness Kramer (LD) [V]]

My Lords, I will speak to Amendment 23 in particular. All the amendments in this group have very similar goals—they just choose rather different avenues for achieving them.

Amendment 23 would require that trade agreements maintain UK statutory levels of protection for human, animal or plant life or health, animal welfare, the environment, employment and labour. I join noble Lords in supporting the noble Lord, Lord Grantchester, who, along with the noble Lord, Lord Purvis of Tweed, and I, is a signatory to this amendment. He said that upholding standards should not be a matter of trust. We live in a country where important principles are reinforced in law and in statute. That is exactly what this amendment tries to do; I suspect that the other amendments in this group are trying to do the same.

I particularly support this amendment because, as the noble Lord, Lord Grantchester, said, it uses the exact language of a government amendment agreed on a cross-party basis and introduced into the Trade Bill in 2019. On that basis, one would think that the Government would have no problem with it, yet they have removed that language from the Bill. That act of removal is very powerful. Choosing to omit a clause—in effect, withdrawing it—sends a message. I am sure that those countries with whom we are negotiating trade deals, whether they are continuity deals or future deals, have taken note. I am very sure that the United States has taken note of the decision to remove this language and the clause. As we know, actions speak louder than words. I also take the view that, if Amendment 23 does not apply to continuity agreements, why would anyone negotiating a future agreement suddenly insist that the precedent should be broken?

In this context, I want to pick up a point made by the noble Viscount, Lord Younger of Leckie, in the debate on an earlier amendment. He said that regulatory standards are not set in trade Bills. For many years, I worked in the United States as a banker in two major companies. I can tell the noble Viscount that his description will be real news to American companies, which have a long history of using dispute resolution mechanisms in trade Bills to achieving particular policies regardless of whether they override domestic legislation. As we look forward to negotiating a US-UK FTA, we must be well aware that everything we do will make that conversation either more difficult or easier.

In the United States, a complex mix of federal and state regulators set and uphold a wide range of standards. The fragmentation is one of the reasons why the US is so successful at keeping out imports; few exporters want to take on the highly complex US federal and state court systems. In the United States, where there is a very different culture, in nearly every company, there is a real taste for aggressive litigation. Many companies have deep pockets in which large amounts of money are set aside for litigation, making such companies effective at intimidating negotiating partners. In effect, they export US standards regardless of domestic legislation elsewhere.

We are in a period when trade is a tense issue. Historically, we would probably have said that most major developed countries would avoid trade battles with each other. We are not in that period any more. The US is at present taking a very aggressive view towards trade protectionism, and any kind of loophole or weakness within any trade deal will be fully exploited. When we say that we must have safeguards to protect our standards, I hope that the Government will recognise that that protection must extend to this Trade Bill.

--- Later in debate ---

[Lord Grantchester (Lab)]

I thank all noble Lords who contributed on this group of amendments and reflected on the provisions that they would bring forward. I thank my noble friend Lord Rooker for his experiences at the Food Standards Agency and for bringing up serious concerns over paragraph 9(b).

The noble Baroness, Lady McIntosh, drew attention to previous experiences when the UK imposed higher standards on its producers than the EU did, and the lack of redress that resulted in the closing of many UK businesses.

My noble friend Lady Henig underlined why the British public hold standards to be of key importance and that this must be clearly understood when food purchases are made by them. This point and other comments from the noble Lord, Lord Inglewood, and others were reflected around the Committee in the debate, and the Government were asked to show leadership. The Bill sends a clear message, both in and beyond continuity agreements. Principles do not rely on circumstances. The noble Lord, Lord Purvis, spoke very powerfully.

I thank the Minister for the consideration that he has shown. I am glad that he concurs, but he then seeks to wriggle out of what this requires. The evidence is the omission of Amendment 23 in the Bill. Partly why his assurances are so unconvincing is that there does not seem to be any coherent strategy between trade agreements and why trade deals are being pursued by the Government. Elements of that strategy could certainly address standards—that is, how they will be addressed through continuity agreements and beyond. We need to know how the UK Government will approach competing standards regimes.

Another element of a strategy could be climate change, which we addressed earlier in our debates. There does not appear to be any rationale for scrutinising trade deals in the recently established Trade and Agriculture Commission. The Government do not appear to look beyond Brexit and tomorrow’s headlines. There is no real answer other than Brexit.

When amendments to the Agriculture Bill on food standards were proposed in the Commons, the Government argued that their place was in, and their relevance was to, the Trade Bill. However, the Government have not put any such amendments in the Trade Bill. We are happy to enshrine the Government’s commitment in their place. Do they wish to vote against their commitment here?

The charge of protectionism is often levelled against these amendments, but who is being protected and against what? Free and fair competition is to be encouraged. That does not include constraining domestic production in law while allowing access to lower-quality produce that it would be illegal to produce here, for many good reasons.

The WTO allows recognition of standards in international agreements, especially in relation to mutual recognition and the outlawing of dumping practices. These are all serious considerations to be kept in mind in the drafting of amendments and in how best to reflect them in legislation. We will need to keep amendments in mind for further consideration while the Government reassess their approach. We will consider carefully the situation and how best to respond to complement the Agriculture Bill. However, in the meantime, I beg leave to withdraw the amendment.

Amendment 20 withdrawn.

Trade Bill

Lord Grantchester Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Thursday 1st October 2020 Grand Committee

Moved by

[Lord Grantchester]

12: Clause 2, page 2, line 23, at end insert—
“(4A) Regulations under subsection (1) may make provision for the purpose of implementing an international trade agreement only if the provisions of that international trade agreement do not conflict with and are consistent with the United Kingdom’s environmental obligations in international law and as established by but not limited to—(a) the Paris Agreement adopted under the United Nations Framework Convention on Climate Change; (b) the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); and(c) the Convention on Biological Diversity, including the Cartagena Protocol on Biosafety.”Member’s explanatory statement
This amendment would ensure that regulations made under the Bill can only be made if the trade agreement which the regulations would implement does not contravene the UK’s environmental obligations.

[Lord Grantchester (Lab)]

My Lords, I will speak to Amendment 12 in my name. I am grateful to the noble Baroness, Lady Hayman, and the noble Lords, Lord Duncan and Lord Oates, for adding their names to this amendment. That it has drawn such widespread support underlines the importance of making climate change, biodiversity and environmental protection central to the United Kingdom’s trade policy—a feature that goes totally unmentioned in the Trade Bill.

I am sure many colleagues across your Lordships’ House believe that achieving the UK’s environmental goals, including net zero by 2050, requires action across all government departments and areas of policy. Trade must be included in that. Trade agreements, including existing EU agreements, typically include national treatment of trade in oil and gas, thereby locking in dependency on fossil fuels, with high greenhouse gas emissions, while incentivising increased fossil fuel infrastructure and even fracking, which would need to be reduced in any continuity agreements.

The risks to the environment from poor trade policies are considerable. Trade agreements could promote the import of cheap higher-carbon goods, effectively off- shoring the UK’s emissions. For example, the EU’s own impact assessment of TTIP, the EU-US trade deal, predicts that it would generate an additional 11 billion tonnes of carbon dioxide per year. This would be fundamentally at odds with our international climate obligations. We must require our trade policies to be up to date and consistent with our environmental obligations.

There was consensus on Tuesday that modern trade agreements go far wider and deeper in their consequences on domestic policy. New and existing trading relationships also present opportunities for the United Kingdom to promote ambitious biodiversity and environmental standards abroad and strengthen the UK’s economic competitiveness through exports of low-carbon goods and services. This new opportunity represents a market for low-carbon goods, estimated by the Committee on Climate Change to be worth more than £1 trillion a year by 2030.

Amendment 12 simply states that regulations to implement trade agreements cannot be made unless agreements are consistent with and in consideration of the UK’s international obligations. The amendment names three main international protocols specifically—the Paris climate agreement, CITES and the Convention on Biological Diversity—but is important to recognise that it is not limited to these alone. Indeed, many of the amendments grouped with this one go further and name additional international agreements, notably Amendment 40, tabled by the noble Lord, Lord Oates, and other noble Lords including my noble friend Lord Browne of Ladyton.

I will also speak to Amendment 14 in this group, in the names of my noble friend Lord Stevenson of Balmacara and the noble Baroness, Lady McIntosh of Pickering. This restricts the powers of the Secretary of State to make regulations to those that have been rolled over, as originally agreed or substantially similar to trade agreements previously agreed by the UK while a member state of the EU. The powers given to the Secretary of State under Clause 2(6) are drawn far too wide and all-encompassing, enabling the Secretary of State to modify any retained EU legislation or primary legislation, as well as to confer discretion to make subordinate legislation, delegate functions and impose penalties. This allows the Government to undermine existing standards across important areas such as food, animal welfare, production methods and environmental protections.

Amendment 22, also in the name of my noble friend Lord Stevenson, specifically removes from Clause 2(6)(a) its tendency to Henry VIII powers. I am grateful to Greener UK and others for their public support for this amendment, and I welcome the many other similar amendments in the group, underlining how important it is that trade agreements are consistent with the UK’s obligations and endorsed by Parliament. The noble Baroness, Lady Hayman, has achieved a precedent for such an amendment by securing climate change protections in the Pension Schemes Bill. This is an opportunity to replicate that provision in this Bill. It stresses that the UK does not want trade agreements that drive a race to the bottom in standards and environmental protections, especially when they contribute to an unacceptable and damaging global footprint. I beg to move.

[Baroness Hayman (CB)]

My Lords, I declare my interest as co-chair of Peers for the Planet. As the noble Lord, Lord Grantchester, said, I have added my name to Amendment 12 in this group, and will speak to others, notably Amendments 40 and 73. As the noble Lord also said, this group deals with the critical role that trade can play in tackling climate and nature emergencies.

The Bill gives us the opportunity to shape the UK’s future trade policy for the first time in over 40 years, and represents a once-in-a-generation opportunity for the UK to show global leadership on climate action in advance of our presidency of COP 26 next year. It allows us the chance to ensure that the UK’s trade policy aligns with existing environmental obligations and the UK’s climate goal of achieving net zero by 2050.

At Second Reading, I raised my concerns that the Bill is currently silent on climate change and highlighted the benefits which can come from ensuring that all our legislation is consistent with climate goals. As the noble Lord, Lord Grantchester, said, we achieved this with the climate change provisions inserted in the Pension Schemes Bill during its passage through this House. I welcome the Minister’s positive response at Second Reading, when he said that continuity agreements will be consistent with international environmental obligations and Amendment 12 makes this explicit in the Bill. Amendments 40 and 73 go further, to ensure that future trade agreements and trade negotiations also align with our climate ambitions.

On Amendment 40, I particularly support the introduction of sustainability impact assessments. Only with such assessments will Parliament be able to sufficiently scrutinise trade deals against our current obligations made under the Paris Agreement and the Climate Change Act, in the very limited 21-day period that the CRaG Act allows for. Sustainability impact assessments will help to incentivise trade deals which promote low-carbon imports, services and technologies, rather than those that increase global emissions, impacting the health of our planet and our citizens.

The benefits of a long-term future trade policy which can help to meet our climate and environmental goals are enormous and can strengthen the UK’s economic competitiveness through supporting exports of low-carbon goods and services. As has been said, the business opportunities of moving to a low-carbon economy were estimated by the Committee on Climate Change as being worth £1 trillion a year by 2030. UK low-carbon services are estimated to have a growth potential of 12% to 15% a year up to 2030. It makes sense from an economic, social and environmental perspective.

This is being more widely recognised. Business groups such as the Aldersgate Group, an alliance of major businesses, academic institutions, and professional and civil society organisations driving action for a sustainable and competitive economy, support amendments that aim to better align the UK’s trade policy with its environmental and climate goals, and enable sufficient parliamentary scrutiny in doing so. It believes that, without careful reference to climate change and the environment in the Bill, the terms of future free trade agreements could make it harder for the UK to achieve its domestic targets and could undermine the momentum behind its clean growth agenda.

Importantly, any explicit or implicit restrictions on the UK’s ability to implement new climate and environmental standards could create an uneven playing field for British businesses forced to compete with imports abiding by lower climate and environmental standards. The development and ratification of trade deals must also be subject to timely and close parliamentary and stakeholder scrutiny. These amendments would ensure much needed consistency between the UK’s trade policy, its international position on climate change and the environment, and its domestic policy and industrial strategy goals, to which the Minister made reference this morning.

We are at a critical turning point; the next 10 years are crucial, and we have a real opportunity for global action on climate change. It is vital that future trade policy helps, not hinders, the delivery of the UK’s climate and environmental goals. I hope that the Minister will be able to respond positively to these amendments.

--- Later in debate ---

[Viscount Younger of Leckie (Con)]

I thank my noble friend for that. I am not sure that I can be drawn to talk about tomatoes. The best thing I could do, particularly for the points on the US, is to write to her with a full answer on animal welfare, which I could attempt, but also on tea, cocoa, bananas and the fair trade question.

[Lord Grantchester (Lab)]

I am very grateful to all noble Lords who spoke on this group of amendments. The Bill is an opportunity to restate trade policy in the important area of environmental protections, in support of the UK’s international obligations. With COP 26 next year, when the Government must be a global leader on the climate emergency, the UK must set an example to the rest of the world by drawing attention to trade that is built on international commitments entered into with so many multilateral agreements.

I hear again that the UK cannot impose regulations on overseas jurisdictions. I merely reply that we already send inspectors into factories and workplaces in countries such as India and Bangladesh, to check on their work practices in the manufacture of clothing. The nature of trade agreements has changed considerably since the UK entered the EU, when it ceased to be the sole competent authority on trade matters, a point acknowledged by the Minister in his reply to an earlier debate on Tuesday. I thank the noble Lord, Lord Beith, for his remarks on the powers subject to annulment by Amendment 22. Your Lordships’ Delegated Powers Committee has not been entirely satisfied by the Government’s reply on this presumptive power.

However, I listened carefully to the reply from the Minister and the many contributions regarding how the Committee may return to the issue later, so I beg leave to withdraw the amendment for further consideration.

Amendment 12 withdrawn.

Energy White Paper

Lord Grantchester Excerpts

Monday 28th September 2020 Lords Chamber

[Lord Callanan (Con)]

The White Paper will look at the whole system of energy within the UK as part of our commitment to net-zero carbon emissions by 2050. I reaffirm the key role that nuclear will play as part of that future energy mix. I can tell the noble Lord that we will respond to the RAB consultation in due course.

[Lord Grantchester (Lab) [V]]

With this long-overdue White Paper, the Government have said that they will

“publish decarbonisation plans for key sectors such as agriculture and industry as part of its green agenda in the run up to COP26.”

Can the Minister confirm that a greater number of these plans will be published on the same day as the energy White Paper to demonstrate the Government’s joined-up approach, so needed to tackle the climate emergency?

[Lord Callanan (Con)]

The noble Lord is right to point out that intensive work is going on in all those areas. I cannot confirm that those documents will be published at exactly the same time.

Oil and Gas Industry

Lord Grantchester Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

The noble Lord is consistent in advocating for the hydrogen sector, and it is true that the oil and gas sector has an important contribution to make to the UK’s energy transition. Its world-class supply chain has many of the essential skills and capabilities to support emerging technologies such as hydrogen and carbon capture and storage. The noble Lord will be aware that we launched the Hydrogen Advisory Council on 20 July to help inform the development of a UK hydrogen strategy, which we intend to publish early next year.

[Lord Grantchester (Lab)]

The Energy Minister in the other place has said that an oil and gas sector deal will be critically important for the sector as it seeks to recover from the current crisis. There is some confusion over this, as we still know so very little. Can the Minister confirm that any oil and gas sector deal will comply with the UK’s domestic and international climate change commitments and include fully funded programmes to transfer skills into clean industries? Is this sector deal transforming into the North Sea transition deal?

[Lord Callanan (Con) [V]]

We are currently awaiting proposals from the industry and we are committed to working closely with it; it has a key role to play. We will, of course, be consistent with our international obligations.