Climate Change: Trade Policy

Lord Purvis of Tweed Excerpts

Thursday 28th October 2021 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My noble friend is an assiduous champion of these matters. Our ambitious trade deal with Australia includes the first substantive climate change article that Australia has included in a deal, which affirms both parties’ commitment to the Paris Agreement. Of course, our very recent agreement in principle with New Zealand goes beyond this and breaks new ground on climate change. It will include the most comprehensive environmental goods list of liberalised tariffs in an FTA to date and precedent-setting commitments on coal and fossil fuels. I look forward to debating these matters further with your Lordships’ House when the full texts of these agreements are available.

[Lord Purvis of Tweed (LD)]

My Lords, we welcome the fact that the Government have added trade and shipping to the reporting of UK emissions. They represent about 50% of all UK emissions. The Minister will be well aware that the UK is heavily reliant on trans-shipment—that is, shipments that come to the UK primarily via European ports. The European Commission is planning an extension of the Emissions Trading System to include ports and shipping. Does the Minister agree that it makes no sense for the UK to have a wholly separate scheme and that there are mechanisms within the UK-EU TCA to open up discussions for a pan-European trading scheme for emissions for shipping and ports? There is a way—is there a will?

[Lord Grimstone of Boscobel (Con)]

My Lords, the shipping industry is of course very important to the United Kingdom. I am sure noble Lords have noted that my right honourable friend the Chancellor of Exchequer gave some relief to the shipping industry yesterday in terms of tonnage tax. If I may, I will follow up in a letter the particular points the noble Lord has raised this morning.