SMEs: Net-zero Targets

Lord St John of Bletso Excerpts

Wednesday 7th June 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes an important point. We are aware of this issue. We are increasing the reporting requirements for bigger companies. We must be careful to make sure that we do not put too many undue burdens on business but I will certainly have a look at the issue for the noble Lord.

[Lord St John of Bletso (CB)]

My Lords, does the Minister agree that there is no clear consensus as to what net zero entails for SMEs? With them accounting for 99% of all businesses in the United Kingdom, what are the Government doing to standardise pathways to net zero among these businesses?

[Lord Callanan (Con)]

Of course it will vary depending on the type of business. Many businesses are already working in green areas. A lot of them are involved in retrofitting. On the other hand, some of them are very energy intensive. There are different solutions for different businesses.

Climate: Behaviour Change (Environment and Climate Change Committee Report)

Lord St John of Bletso Excerpts

Wednesday 7th June 2023 Grand Committee

[Lord St John of Bletso (CB)]

My Lords, I, too, congratulate and thank the noble Baroness, Lady Parminter, and her committee for this important and topical report. I warmly commend the recommendation to develop a public engagement strategy to inform the population about the need for greater behavioural change and greater awareness of the risks.

So-called climate anxiety has taken centre stage. I say this as a parent of four young ones, who are all acutely conscious that the seemingly inevitable climate crisis is here and that the ambition of maintaining and restricting global warming to less than 1.5 degrees is now, sadly, beyond our reach, with several leading scientists forecasting that—I stress—without significant efforts to reduce greenhouse gas emissions, global average temperatures could rise by between 2.5 and 4.5 degrees Celsius, with catastrophic implications.

There is no denying that by adopting more sustainable behaviours we can mitigate some of the worst effects of climate crisis, reduce the depletion of resources and promote environmental well-being. Reducing the information gap around individual carbon footprints is essential. It is important to understand that being climate positive does not just mean driving an electric car and switching off the lights when you leave home. I welcome the Department for Education’s initiative to promote sustainability and to focus the climate change strategy on children and businesses. Indeed, we recently had a Topical Question on what can be done to improve the awareness of SMEs so that they embrace the ambition of getting down to zero carbon.

Transportation accounts for only 29% of global emissions. The largest contributor is the built environment, which accounts for a staggering 40%. The challenge is now how we can change the narrative around which personal decisions and behaviours can truly move the needle. I welcome the Government’s commitment to spend over £6.6 billion to improve energy efficiency and the decarbonisation of heating in homes. New carbon capture and storage technologies, smart grids, sustainable agriculture solutions and carbon removal technologies can all play an important role, but for these technologies to be effective we need supportive policies. We need more investment and collaboration among the stakeholders. As the noble Lord, Lord Howell, mentioned, climate-friendly appliances such as ground source heat pumps can reduce one’s individual carbon footprint, but they continue to be significantly more expensive than gas-powered alternatives, with a huge upfront cost.

Amid a cost of living crisis, I welcome initiatives such as the ECO+ scheme to incentivise the implementation of these technologies. I am a great advocate of the circular economy and I welcome a change in this paradigm, with materials flowing back into the economy, where they can increase our productivity. What are the Government doing to work with organisations such as the Carbon Disclosure Project, which is gathering information around the constitution of our economy’s carbon footprint? How can they encourage further monitoring?

In conclusion, while I warmly welcome the report and the public engagement strategy, its effectiveness will depend on an approach of shared, joined-up thinking between Governments, businesses, local authorities, civil society and individuals. As with the US Inflation Reduction Act, we need to think bigger, think bolder and act now.

[Lord Evans of Rainow (Con)]

My Lords, I remind noble Lords that there is an advisory time of four minutes. We are going well over in some circumstances.