Regional Comprehensive Economic Partnership

Lord Howell of Guildford Excerpts

Tuesday 15th December 2020 Lords Chamber

Asked by

[Lord Howell of Guildford]

To ask Her Majesty’s Government what assessment they have made of the Regional Comprehensive Economic Partnership free trade agreement.

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

My Lords, as a supporter of free trade the UK takes a close interest in RCEP, which should help standardise rules and facilitate trade between partners in the region. The Government are committed to enhancing our trade with RCEP members, having concluded the CEPA with Japan and negotiated with Australia and New Zealand, along with our intention to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—plus, of course, our bilateral trade engagement with partner countries.

[Lord Howell of Guildford (Con) [V]]

My Lords, I thank the Minister for that reply and congratulate him on the work that he and his colleagues have done in this whole area. But this new regional comprehensive liberalisation partnership, although it is much shallower than other market liberalisation such as the EU single market, for instance, is actually much bigger than any other. It covers 2.3 billion people and a third of the world’s trade; and it is in the region where most of the world’s growth will be over the next 10 years. Does my noble friend agree that we need to engage very closely indeed with this development? Now that we are aiming to join the revised Trans-Pacific Partnership, and are involved in the Japan agreement that he mentioned, does he agree that this should all be seen as part of what his right honourable friend Elizabeth Truss, the International Trade Secretary, calls the “Pacific mindset” in our overseas commercial strategy? That is thoroughly welcome and to my mind, as some would say, overdue.

[Lord Grimstone of Boscobel (Con)]

I agree with my noble friend that RCEP is a very interesting trade agreement, and it is a notable achievement that it has been concluded. However, we feel that the Trans-Pacific Partnership is a significantly deeper agreement that will set standards globally in a large number of areas; that is our priority.

Comprehensive Economic Partnership (EUC Report)

Lord Howell of Guildford Excerpts

Thursday 26th November 2020 Grand Committee

[Lord Howell of Guildford (Con) [V]]

My Lords, I join in warmly congratulating the noble Lord, Lord Darroch, and welcome him and indeed his wisdom to our counsels. I declare interests in advising for many years two major Japanese companies and writing a regular column since the 1980s in their newspapers, and as UK chairman for 10 years of the UK-Japan 2000 Group, renamed the UK-Japan 21st Century group when we got to the millennium, which in those days included such legendary giants as “Sony” Morita and Shoichiro Toyoda. However, I want to concentrate here on the less business-related and more strategic significance of this agreement.

The agreement, which is thoroughly modern in focusing on digital trade and services, has had a rather grudging reception in some quarters, like the Financial Times, which has emphasised the undoubtedly small immediate trade aspects compared with large issues like the EU, or, as some have said, a new trade deal with the United States—although I have always been a bit sceptical about the wisdom of disturbing our present very strong trade with the USA by going for something bigger still: a slight case of the dog with a bone seeing the bigger bone in the pool.

This new agreement with Japan has also had a thorough and impressive going-over, as we have heard, from our EU International Agreements Sub-Committee, as well as from the independent Regulatory Policy Committee. It made the point, which I agree with, that we have no bilateral investment treaty with Japan, nor does this agreement create one, which is slightly odd when one considers that foreign direct investment is, has been and will often be the main trade driver.

However, the new agreement is significant for the UK—and maybe for Japan—for a number of reasons that go very much deeper than just trade. It marks a firm step towards the realisation in British policy circles that the future will be increasingly Asian. It could therefore herald a new era of increased collaboration with Japan, not just in trade relations but in much wider fields. For instance, extending the Five Eyes intelligence alliance would be an obvious next step on this front. Opening the gateway for us to join the Comprehensive and Progressive TPP is another, already featured. Aid co-operation could also increase, although it is worth noting in passing that Japan runs an excellent aid programme at only 0.29% of its GDP.

Another shift of huge significance could be about to occur on the UK home front as well. Ten years ago we were all talking about a golden era of UK-China relations, ushering in extensive Chinese involvement in many aspects of the British economy, from nuclear power to railways, ports, property, public utilities and even football clubs. However, in the decades since then, under the rule of Xi Jinping, China has forfeited much of the UK’s broad goodwill by its growingly assertive and prickly attitudes and disruptive policies, not least in Hong Kong. Maybe this will change under better leadership but, meanwhile, it could be that the golden era of UK relations with China is set to be replaced by a golden era of relations with Japan. The trade deal is a harbinger of just that. This would make a great deal of sense, since the two nations working in tandem could be a considerable force for good in a fragmented and frightened world and at a time when the voice and influence of a divided United States has regrettably become “an uncertain trumpet”—at least up until now.

Perhaps the new Prime Minister, Yoshihide Suga, could open his premiership not only by welcoming the new trade deal, as he has already done, but by recognising that this is one step along a road to very much closer co-operation in almost every field—security, defence, culture and intelligence included—and that Japan and the UK, working in harmony, constitute a formidable nexus around which the 21st-century connectivity between east and west can continue to be expanded.

United Kingdom Internal Market Bill

Lord Howell of Guildford Excerpts

2nd reading & 2nd reading (Hansard): House of Lords
Monday 19th October 2020 Lords Chamber

[Lord Howell of Guildford (Con) [V]]

My Lords, I join in congratulating and welcoming the noble Baroness, Lady Hayman. I am sure that most of your Lordships will agree that—after defeating Covid-19—the highest priority for our country, if we are to face the challenges of the next 10 years, is to hold this United Kingdom of ours together. The problem is that devolution has created a whole world of delicate compromises and unfinished constitutional business. Then on to the scene comes the Bill, which I am afraid is a bit like a bull in a china shop.

My question on the devolution side of the Bill is this: I admit that the timing may be unavoidable but, as the chairman of the Constitution Committee, the noble Baroness, Lady Taylor, asked, why on earth could not these issues between the different parts of the kingdom be handled mostly within the common framework procedure or consensually? Why was it decided to try to codify, in law, the thousand and one different complex and ever-shifting connections between all the myriad businesses across the devolved regions, rather than address them as they come along, which they will unceasingly, by ongoing practical co-operation—or maybe just by setting up the new internal market office?

As to the rule of law clauses which have so greatly disturbed your Lordships, and disturbed the legal profession, and indeed many of my good friends, including my noble friend Lord Howard, and now the Archbishops as well, I am a little less worried than some of my colleagues. It is quite correct, as the Constitution Committee’s report pointed, that the late Lord Bingham warned against a Government which “routinely”—and I emphasise that word—disregard their international law obligations, and I would not wish to live for one moment under such an Administration. But the reason I am not so worked up as some are in this instance, is that I believe we may be overlooking the degree to which the whole spirit of the withdrawal treaty and the Northern Ireland protocol was and already being undermined, and is now being undermined, by the other party, namely the Brussels negotiators and their legal advisers.

I believe that this is just what the Lord Chancellor meant when he rightly advised the Constitution Committee to consider the context behind the need for this Bill. Here, too, we are in an area of delicate ambiguity and compromise, as Northern Irish affairs always have been—as the Good Friday agreement was as well, and as I know full well from my years of working there at the height of the time of violence. So my question here, before rushing to judgment, is: why were these tangled problems of treaty interpretation, for that is what they are, not handled in the joint committee for settling disputes, which the withdrawal treaty set up? What happened in that committee? Was there a deadlock? Did the EU side make threats which were, in the Prime Minister’s words, “extreme and unreasonable” and undermined the withdrawal treaty? Were these clauses put into this Bill in fact justified as a response on that account? When it comes to would-be violations of the treaty spirit, are the critics, of which we have heard so many this afternoon, quite sure that they are looking entirely and solely in the right place?

We have asked these questions, but we have got no clear answers so far. Can we please have them now? Can we have a bit of chapter and verse about what actually went on the disputes committee? I know that this will not assuage my distinguished legal friends, nor the Church leaders, but it would at least explain more fully why the clauses got into the Bill and why they were felt to be necessary. Perhaps it would persuade me to oppose the two amendments, even though they have been spoken to by your Lordships at your most eloquent, and by people I most admire.

Energy White Paper

Lord Howell of Guildford Excerpts

Monday 28th September 2020 Lords Chamber

Asked by

[Lord Howell of Guildford]

To ask Her Majesty’s Government when they anticipate publishing the next energy White Paper.

[Lord Howell of Guildford (Con) [V]]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my interests as in the register.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The energy White Paper is a priority and will be published this autumn. This means that it will play a vital role in building back better and driving greener, clean economic recovery, delivering both jobs and skills.

[Lord Howell of Guildford (Con) [V]]

My Lords, I thank my noble friend for that Answer. Does he agree that when it comes to the future reliability of energy supplies, the public badly need some reassurance? Our main new nuclear project is well over budget and over time. The rest of our nuclear programme is full of uncertainties. The national grid warns of future power cuts unless it can invest fully in new systems, and household energy bills are still sky high. Can the Minister assure us that the long-overdue White Paper will restore some coherence to our medium and long-term needs for low-carbon, affordable and reliable electric power from all sources?

[Lord Callanan (Con)]

I agree with my noble friend; I know that he speaks with great authority on this subject as a former Energy Minister. The White Paper will consider the overall energy system, including how demand for low-carbon electricity will increase in buildings and transport, and the role of technologies such as hydrogen and nuclear in supporting that transition.

Japan Free Trade Agreement

Lord Howell of Guildford Excerpts

Thursday 17th September 2020 Lords Chamber

[Lord Howell of Guildford (Con) [V]]

My Lords, I declare my interests as set out in the register and join in the congratulations on the achievement of this agreement in principle, and for which my noble friend the Minister deserves a certain amount of personal credit. I join, too, in the sending of good wishes to the new Japanese Prime Minister, Mr Yoshihide Suga. Could this deal herald an era of increased collaboration with Japan, not just on trade and business but across the whole range of security and defence co-ordination, such as the extension of the Five Eyes alliance in south-east Asia, and here at home on major infrastructure projects in railways, nuclear and other areas—replacing perhaps over-ubiquitous Chinese involvement with a more friendly Japanese presence? I join my noble friend Lord Trenchard in urging a reversal of the Hitachi withdrawal from our nuclear programme, which is a pity. Could steps be taken urgently to reverse that and maintain the programme?

[Lord Grimstone of Boscobel (Con)]

Again, I thank my noble friend for his comments. He makes a very good point. I have always seen the signing of these agreements as having psychological and practical impacts that go far wider than the agreements themselves. The deep interaction that goes on in the negotiations gives rise to much better understanding between Governments. It awakens interest in a whole range of society in the countries being negotiated with. As he does, I see this as a harbinger of even closer relationships with Japan in a whole number of areas, including the important defence and security areas to which he refers.

Energy: Hydrogen

Lord Howell of Guildford Excerpts

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

I can certainly agree with the noble Lord’s first point; he is entirely correct. The energy White Paper should be out towards the end of this year.

[Lord Howell of Guildford (Con) [V]]

My Lords, I declare my energy interests as in the register. Does my noble friend agree that hydrogen as an energy vector is an old story with an entirely new life nowadays? Has he noticed that Japan has declared its aim to be the world’s first hydrogen-based economy, safely using both green hydrogen from surplus renewable electricity, of which there is plenty, and blue hydrogen or hythane, already referred to, when mixed with natural gas? Could the very welcome new Hydrogen Advisory Council be encouraged to follow Japan closely or even rival that ambition?

[Lord Callanan (Con)]

The noble Lord is entirely correct that a number of other countries are developing hydrogen strategies. However, the Government believe that the UK is currently well placed and in the leading pack internationally. We are keeping pace with international developments and leading in a number of international fora on this subject.

Renewable Energy

Lord Howell of Guildford Excerpts

Tuesday 15th September 2020 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a very good point. The Government recognise nuclear’s potential to support the transition to net zero, as a proven continuous low-carbon energy source. AMRs in particular could support the deep decarbonisation of industry in future.

[Lord Howell of Guildford (Con) [V]]

My Lords, I declare my interests, as in the register. Presumably, the Government accept the NIC’s view that

“renewables alone cannot create a resilient energy system for future decades”.

Following the excellent point made by the noble Lord, Lord Holmes, how many additional nuclear power plants, large or small, are now planned to keep us on the pathway to zero net emissions, prevent power cuts and, I hope, reduce crushing energy bills? Can we have some precision in the plans for this area?

Oil: Changes in Global Markets

Lord Howell of Guildford Excerpts

Thursday 21st May 2020 Lords Chamber

Asked by

[Lord Howell of Guildford]

To ask Her Majesty’s Government what assessment they have made of the changes in global oil markets and the implications of those changes for (1) trade, (2) addressing climate change, and (3) international security.

The Question was considered in a Virtual Proceeding via video call.

--- Later in debate ---

[Lord Howell of Guildford (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and draw attention to my interests as listed in the register.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The global Covid-19 pandemic has resulted in unprecedented falls in demand in global energy markets and increased market volatility. The Government are closely monitoring developments and assessing the implications, including for the UK’s oil and gas sector and for climate change, with an emphasis on the importance of a clean, resilient recovery and international security. In doing so, we are in regular contact with international partners.

[Lord Howell of Guildford]

I thank my noble friend for that reply. Does he agree that, with the average spot price of crude oil now around $25 to $30, having been down to almost zero the other day in the US, we are back at about the same cost per barrel as in 1970, which at that time was about $3 to $4, before the rise of OPEC? Is it not likely to stay that way, given the worldwide supply surplus, together with the huge demand reductions that he has just referred to? Do the Government see this as a good prospect? Could relatively cheap energy and low petrol prices help post-Covid economic recovery and maybe clip Mr Putin’s wings as well, or are there some dangerous costs and disadvantages, such as a further blow to the North Sea and the transformation to green energy being made a lot more difficult?

[Lord Callanan]

As my noble friend has implied, there are of course advantages and disadvantages. Around 11% to 13% of our domestic oil demand and around 47% of domestic gas demand are currently met through domestic hydrocarbon reduction. Any significant impact on oil production and prices would lead to an increased reliance on imports and therefore a loss of revenues from the North Sea. Of course, there are benefits as well—certainly regarding motoring costs and so on.

Green Economy

Lord Howell of Guildford Excerpts

Thursday 12th March 2020 Lords Chamber

[Lord Howell of Guildford (Con)]

My Lords, I declare my energy interests in the register as chairman of the Windsor Energy Group and as adviser to Japanese climate and energy companies, and as a former Secretary of State for Energy.

It is always a great pleasure to follow the noble Lord, Lord Giddens, in his wise words. I am still trying to work out how his third way will enable us to escape from the paralysing ideologies of the present and past age. I expect I have a lot more thinking to do on that subject.

I have two considerations to add to this complex and major debate. They may sound rather technical, but I really believe that their omission is hampering our policy over the climate and our net-zero goals and the more serious contribution that we ought to be making to the global climate battle.

First, we hear amazingly little about the handling and potential of carbon dioxide in official plans and statements. What I think is missing is the understanding that CO₂ is not waste and a pollutant; it is in fact a resource. Far from being a substance that has to be stored in holes in the sea or suppressed at any cost, it is resource of enormous value. I have even heard it described by very well-primed authorities—particularly from the University of Swansea and a number of American universities—as “the new oil”. The reality is that CO₂ can replace the entire basis of the petrochemical industry. It can be converted into a vast range of inorganic materials, and can act as a feedstock for methanol and, if desired, ethanol—they of course are the basis of a vast part of the chemical and materials industries—and a variety of other catalytic processes. We have just been reminded that Asia is racing ahead in many ways in technology and indeed in living standards: Korean scientists have now found ways of converting CO₂ into hydrogen.

A major reset in policy thinking is demanded here, and I would like to hear from the Minister whether this is beginning. Carbon capture, and bringing down the cost of capture, from all industrial processes—the heat loss from industrial processes is enormous—is something we can all agree on; that is fine. There was little notice, but yesterday’s Budget funding of new carbon capture clusters is extremely welcome and a revival of an important area where we are falling miles behind our competitors. But storage is much more controversial, and it is I think probably the wrong and negative emphasis. If we want to stop carbon adding to the thermal blanket round the earth, it can be put profitably to a thousand uses, all of which we should be aiming at. That is the first point I want to make that seems to have been missing from the debate.

Secondly, when it comes to hydrogen itself, there still seems to be deep confusion. Hydrogen is not so much an energy source as a vector in energy transformation. It is enormously plentiful and can be added into our entire gas grid at up to 40% dilution without any change either to the piping of our national gas grid, which is very extensive, or to actual gas boilers or cookers, with huge savings in conventional hydrocarbon burning. It can also be used directly as a longer-range transport fuel, and is probably superior to dragging around heavy batteries in electric vehicles. I am very doubtful whether the battery technology required to make the EV revolution happen is not going to come to a dead end. For one thing, hydrogen can be loaded like petrol and just as fast. It is no wonder that some police forces—South Wales Police among them—have decided to go over to hydrogen when they have to respond in seconds to emergencies instead of using battery-powered vehicles for which they might have to wait half an hour to be filled up and ready to go on the job. Besides which, the lithium, cobalt, copper and rare earths required in batteries all come from monopoly sources, such as China, Argentina, Bolivia, Chile, Congo, Indonesia and Serbia—potentially a new sort of OPEC that could be a good deal more threatening and less friendly than the present one that we have had to work with for the past 40 years.

It is true that hydrogen needs electrolysis and that needs lots of electricity, but that is the one thing of which we have a vast, unused surplus in this country, surrounded as we are by massive and excellent investment in offshore wind farms. We now often have to pay those wind farms to stop generating for long periods to prevent major destabilisation of the whole grid, which has already occurred once or twice. The mismatch in timing between our now enormous wind electricity output and normal daily power demands provides the perfect extra electricity source for massive hydrogen electrolysis.

I read the recent report mentioned by the noble Lord, Lord Browne, from the so-called Energy Systems Catapult—a government-sponsored organisation, I understand. It was spouting nonsense about the need to double or treble electric power output, with 20-plus new nuclear stations by 2050—actually, the Times said 32 new stations, with classic exaggeration—along with drastic reductions in the eating of meat and dairy and other scary and difficult disruptions. Indeed, the report actually talked of the elimination of aviation and livestock products to get to the 2050 goal, all in my view adding up to the worst kind of fright, disincentive and discouragement to sensible and acceptable climate policies that will actually get us to the goals we want.

Of course, there is no silver bullet or single pathway to net zero or to really checking the growth of carbon particles in the atmosphere, but if the investment priorities go to carbon resource usage, and if plentiful hydrogen and major advances in efficient energy use are deployed—if those are the investment priorities—that is far the most promising way to actually get to net zero.

In the end, one has to ask what impact all our national efforts are actually having on worldwide climate change. Britain may be leading by example; I think it probably is, but who exactly is following? China is building coal-fired stations as never before—I am told there are 200 in central Asia and Africa along the belt and road routes—so there is not much example-following there. Not to focus on the real priorities, just to remain inward-looking, ignoring the really big emitters and the best investment priorities to prevent greenhouse gas accumulation—that really would betray the younger generation. Greta Thunberg is right about that, but if we continue to be led by the experts on present paths, then all I can say is that the real betrayers will not be the ones she thinks.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, I am very grateful to the noble Baroness, Lady Parminter, for securing this important debate and for the excellent, well-informed contributions from many other Members. It is clear that your Lordships’ House has great expertise in these matters; that was very well reflected in the debate today.

There is no doubt that climate change is one of the greatest global challenges that we face and that action is urgently needed in the UK and across the world. It is worth repeating that the UK was the first major economy to legislate for a net-zero target, which will end our contribution to climate change. I am pleased to welcome the support for the net-zero target from the Church, as outlined by the right reverend Prelate the Bishop of Bristol.

We are looking to position the UK as a world leader in low-carbon technologies, services and systems. The UK will capitalise on established strengths to provide new jobs and business growth opportunities from the many future export markets. We have a strong base to grow from. There are already over 460,000 jobs in low- carbon businesses—the noble Baroness, Lady Parminter, said 400,000, so I hope my figures are more accurate than hers—and their supply chains across the country. Low-carbon exports are already worth billions of pounds each year to our economy. We have world-leading strengths in key sectors such as green finance, offshore wind, nuclear energy, smart energy systems and electric vehicles.

We are also seeking to capitalise on the UK’s world-leading expertise in fields such as industrial biotechnology and synthetic biology, the platform technologies that underpin the bioeconomy. This represents the economic potential of harnessing the power of bioscience, producing innovative products, processes and services that rely on renewable biological resources instead of fossil-based alternatives.

As well as the economic benefits we can achieve through a green economy, we must also ensure that we maximise resource efficiency, to protect our environment and minimise biodiversity loss. The resources and waste strategy is an ambitious document that sets out how we will preserve our stock of material resources by minimising waste, promoting resource efficiency and moving towards a more circular economy. It combines actions we will take now with firm commitments for the coming years and gives a clear long-term policy direction in line with our 25-year environment plan.

Setting this in context, our clean growth strategy sets out our proposals for decarbonising all sectors of the UK economy through the decade. The UK is determined to continue to lead the world in tackling the scourge of climate change by cutting our emissions while supporting strong international action to help meet the goals of the Paris Agreement. During this year, ahead of COP 26, we will be setting out further details of our plans to decarbonise key sectors of our economy including transport, energy, buildings and our natural environment.

Many excellent points were made during the debate and a number of questions were posed. I will try to go through as many as possible and apologise to individual noble Lords if I do not get around to their point. In her excellent contribution, the noble Baroness, Lady Parminter, asked about the just transition—this point was also made by the noble Baroness, Lady Sheehan. Clean growth offers the UK real opportunities and she is right to point out that the Treasury will be conducting a review into the costs of decarbonisation, including how to achieve this transition in a way that works for households, businesses and the public finances. Industrial clusters are one of our industrial strategy missions, reflecting the importance of strengthening our industrial base as we move to a net-zero economy.

The noble Baroness also asked about our nationally determined contribution. Increasing global ambition is key to closing the gap on meeting the temperature goals of the Paris Agreement. At the UN Climate Action Summit in September, the Prime Minister called on all countries to come forward with increased 2030 emissions reduction commitments. The UK will play its part and come forward with an increased NDC ahead of COP 26, in line with the global ambition cycle.

The noble Lord, Lord Oates, and the noble Baroness, Lady Parminter, both raised the important subject of energy efficiency in buildings. We plan to publish a heat and buildings strategy later this year which will set out our immediate actions for reducing emissions from buildings. These include the deployment of energy-efficiency measures and low-carbon heating as part of an ambitious programme of work required to enable key strategic decisions on how we can achieve the mass transition to low-carbon heating. The future homes standard will require new-build homes to be future-proofed, with low-carbon heating and world-leading levels of energy efficiency by 2025.

We have also committed to consulting on phasing out the installation of fossil fuel heating systems in off-gas grid properties, accelerating the decarbonisation of our gas supplies by increasing the proportion of green gas in the grid. We will publish these consultations in due course.

The noble Baroness, Lady Parminter, asked about the plan required to deliver the net zero target. In the run up to COP 26, we will bring forward ambitious plans across key sectors of the economy to meet our carbon budgets and net zero target, including an energy White Paper—I am afraid that I cannot give the noble Lord, Lord Grantchester, a date for that, but it will be published as soon as possible—a transport decarbonisation plan and a heat and buildings strategy. These plans will build on the strong frameworks we have established through our clean growth strategy.

The noble Baroness, Lady Parminter, raised an important point on the contributions that local councils can make to net zero targets. The local energy programme supports local enterprise partnerships, local authorities and communities in England to play an important leading role in decarbonisation and clean growth. The programme was announced in 2017 as part of the clean growth strategy. Almost £20 million has been invested in the local energy programme to date and the programme has funded a range of measures designed to build local capacity and capability and encourage joined-up working between local areas, investors and central government. In addition, funding was provided to local enterprise partnerships in England to develop an energy strategy for their area.

The noble Baroness, Lady Parminter, asked me a lot of questions, including on deforestation. We are committed to helping those countries and communities that will be most affected by climate change. The UK is doubling its international climate finance to £11.6 billion between 2021 and 2025 to help developing countries cut emissions, improve resilience and reduce deforestation.

The noble Lord, Lord Browne, and my noble friends Lord Howell, Lord Marland and Lord Selborne all raised the important subject of carbon capture and storage. It will be essential to meeting the UK’s net zero target. It can provide flexible, low-carbon power and decarbonise many of our polluting industrial processes, while also offering the option of negative emissions at scale. We are investing over £40 million in CCS innovation between 2016 and 2021, and I am delighted that the Chancellor yesterday announced our new CCS infrastructure fund, providing £800 million to establish CCS jobs in at least two industrial clusters, creating up to 6,000 jobs in the process.

The noble Lord, Lord Browne, also raised the point about offshoring the UK’s emissions, which is an important subject. We are following the agreed international approach for estimating and reporting greenhouse gas emissions under the UN framework and the Kyoto Protocol. Nevertheless, emissions on a consumption basis—what we import—fell by 21% between 2007 and 2016.

My noble friend Lady Jenkin made a very well-received speech. There was, perhaps, a bit too much information on her underwear strategy, but apart from that, it was an excellent speech about how individuals can act to change their own behaviour. She raised an important point about food waste, and we are taking action to help consumers reduce theirs. Ben Elliot—our Food Surplus and Waste Champion—recently announced the first ever Food Waste Action Week. It will run from Monday 11 May, calling on households and businesses across the country to join forces to reduce food waste. I am sure she will want to make her contribution to that.

My noble friend also asked about clarity on recycling consistency. The Government are committed to making recycling easier for everyone. We know that many people want to recycle but are confused by the many symbols and policies in this area. The Environment Bill introduces legislation so that, from 2023, all collectors of waste will collect a core set of materials from all households, businesses and other organisations. That core set will be metal, plastics, paper and card, glass, food and garden waste.

On the subject of fast fashion, also raised by my noble friend Lady Jenkin, the Government recognise the huge environmental impact of clothing as well as the importance of affordable and quality clothing. The Government have supported a collaborative industry-led approach through the sustainable clothing action plan, which has more than 80 signatories and supporters from across the clothing supply chain, representing nearly 60% of all clothes sold in the UK by volume.

My noble friend, along with the noble Lord, Lord Browne, also raised the subject of behavioural change. We entirely recognise that delivering net zero will need action across the whole of society. It does not necessarily mean net zero across everything that we do, because we can offset many of our emissions through tree-planting, carbon capture and storage, but we recognise the importance of engaging people across the whole of the UK in what will be a year of climate action.

The noble Baroness, Lady Sheehan, asked whether our plans for continued oil and gas exploration are compatible with the net-zero goals. It is important to recognise that, as we transition to a low-carbon economy, there will continue to be a need for oil and gas, which are projected to still provide around two-thirds of our total primary energy demand in 2035. All scenarios proposed by the Committee on Climate Change setting out how we could meet our 2050 target include continuing demand for natural gas.

The subject of green finance was raised by a number of noble Lords, including the right reverend Prelate the Bishop of Bristol, the noble Baroness, Lady Sheehan, my noble friends Lord Gadhia and Lord Marland—the best of luck to him with his clean investment fund. We welcome the strong leadership that is provided in this field by the Church and the role of many institutional investors, which will be key as we build up to COP 26. In fact, only today, an industry-led group called the Pensions Climate Risk Industry Group, convened by the Department for Work and Pensions, produced regulations and published guidance on how pension scheme trustees can disclose their approach to climate risk in their portfolios. Delivering on that is a key promise in the green finance strategy.

My noble friend Lord Howell, with his immense experience in the energy industry, raised the important subject of hydrogen. This will be a key commitment of ours going forward; we are committed to exploring the development of hydrogen as a decarbonised energy carrier alongside electricity and many other decarbonised gases. We are already investing up to £121 million in hydrogen innovation, supporting a range of projects to explore the potential of low-carbon hydrogen for use in heating and transport, and the production of low-carbon hydrogen with CCUS and electrolysis technologies. We are considering our strategic approach to hydrogen and are conducting further stakeholder engagement, notably around building sustainable policy frameworks to support investment in low-carbon hydrogen production.

[Lord Howell of Guildford]

Does my noble friend agree that, if we can make greener our entire domestic gas supply, it would be a far better approach than attempting to tear out 15 million gas boilers from people’s homes?

[Lord Callanan]

Yes, I agree with my noble friend; hydrogen can of course provide a potential solution to that. I heard only the other day about investments that we are making with companies such as Worcester Bosch and Baxi to develop new boilers that are able to work on natural gas and can be easily converted with only one hour of service engineering to work on hydrogen in the future. Nevertheless, hydrogen is, at the moment, given existing technology, expensive and difficult to produce.

The noble Baronesses, Lady Suttie and Lady Jenkin, asked what we are doing about plastic waste. I am pleased to tell them that the UK is a world leader in tackling plastics and that we have committed to work towards all plastic packaging placed on the market being recyclable, reusable or compostable by 2025, and to eliminate avoidable plastic waste by 2042. The Government’s landmark resources and waste strategy sets out our plans to eliminate avoidable plastic waste over the lifetime of the 25-year plan.

I hesitate to referee the debate between the noble Baronesses, Lady Jenkin and Lady Jones, on Extinction Rebellion. I am sorry to tell the noble Baroness, Lady Jones, that I am very much on the side of noble Baroness, Lady Jenkin, on this. I witnessed at first hand the huge piles of disposable plastic waste that Extinction Rebellion left behind after its demonstrations. Before lecturing the rest of us on what we should be doing, it should act to put its own house in order first.

Sub-postmasters: Compensation

Lord Howell of Guildford Excerpts

Thursday 5th March 2020 Lords Chamber

[Lord Callanan]

We agree that there needs to be a full examination, with due rigour, of what happened and what the next steps will be, but I cannot go further than the answer that I gave earlier to my noble friend—that, as soon as we can, we will announce the next steps following the Prime Minister’s announcement.

[Lord Howell of Guildford (Con)]

My Lords, it is possibly worth remembering in this case that a major national organisation running a public service has stamped on and destroyed the lives not merely of local innocent people but of local people who are key members of their communities, serving those communities and doing their best to maintain the community spirit. Can this matter be addressed with intense urgency? Otherwise, some very sad personal tragedies will follow.