COP 27: Commitments

Lord Thomas of Cwmgiedd Excerpts

Thursday 24th November 2022 Lords Chamber

[Lord Thomas of Cwmgiedd (CB)]

I too thank the noble and right reverend Lord, Lord Harries of Pentregarth, for securing this debate and congratulate the noble Lord, Lord Leong, on his excellent maiden speech.

Before one criticises the progress that was not made at COP 27, we ought to recognise the huge progress that has been made and the general recognition that climate change is now a real problem. What happened at COP 27 is an illustration of a familiar problem: namely, where the pain to avert damage in the future, and long in the future, does not at present seem real or entails costs, it is very difficult to persuade people to live to their commitments. I want to deal with three matters: first, the rule of law; secondly, the issue of transparency; and, thirdly, leadership, because they are all clearly interlinked.

First, let me address the status of the Paris Agreement. It is a legally binding commitment, and we sometimes forget that. Our commitment as a state has always been to uphold the rule of law, and we must continue to do that. We cannot expect to set an example of leadership without doing it. In most countries, it is impossible for domestic courts, either because they do not have the guts to do so or because their legal system does not permit it, to force Governments to comply with international obligations. There is no international tribunal or court that can force states to comply with their obligations.

So what is one left with? One is left with transparency. I think the German Federal Constitution Court in considering the German Act of 2019 put the matter very well in relation to Paris. It said:

“The purpose of the transparency provisions is to ensure that all states are able to trust that other states will act in conformity with the target … Creating and fostering trust in the willingness of the Parties to achieve the target is therefore seen as a key to the effectiveness of the Paris Agreement.”


Therefore, I think that if we are to comply with the rule of law and set an example for others to do so by our leadership, that leadership must include transparency because it is critical.

Are we achieving that? Turning to the domestic plane, having moved from the international plane, we have a great deal to give thanks for to those who created the Climate Change Act 2008, but its basis is essentially transparency. You cannot hold people to account, you cannot make them do things, unless there is transparency. Here, the courts can help. In the very recent decision of the High Court in Friends of the Earth v the Secretary of State for Business, Energy and Industrial Strategy, the court looked at what had been made available, decided that it did not comply with the Act, and ordered the Secretary of State to do so. To his great credit, the then Secretary of State accepted that. I am sure that he did so because the mechanism of our Act is transparency. You cannot expect our Act to work unless all the facts are put forward as to how the climate reduction plan and the carbon budget are to work, unless there is total transparency.

I mention that case and the decision of the then Secretary of State because it is a powerful demonstration of the importance of transparency, and of leadership, as well as compliance with the rule of law. It is important that, although the UK makes a tiny contribution to global emissions, we can make an enormous contribution to these three areas.

The third area that I want to mention very briefly is the position of corporations. Here it is essential that we continue to take leadership. There is the question of corporate purpose. The British Academy is to be congratulated on the work that it is doing on the future of the corporation. Is our company law sufficiently up to date that there is an emphasis on the long term rather than the short term? Is there sufficient emphasis, if it is the right thing to do, on the accountability and duty of directors and shareholders in the company to the public good? Our Companies Act goes some way, but we need to ask ourselves whether that is enough, and we can certainly show leadership here.

Are our regulations that force disclosure, and therefore transparency, clear enough? It is essential that if we are to move to a system that works in practice, the disclosure regulations must be clear, and there must be international standards. We cannot in this respect think that we are on our own. We must recognise what goes on elsewhere. Also, are our regulations strong enough in relation to carbon credit, trading, and the emission trading scheme? We have seen that greenwashing across this whole sector is a major problem.

This is all very important, but I cannot emphasise enough, when one looks across the litigation that is being brought by NGOs across the world, how critical disclosure is. You need to be able to persuade people that companies which do not live up to their legal or other commitments are companies that you should shun or avoid. The market should be used for that effect. Equally importantly, if banks, through syndicated loans or otherwise, are investing in companies that are responsible for emissions, public pressure can be brought. One can see the effectiveness of this in the actions being brought by NGOs across the world, virtually. In this respect, we must show leadership. We have a leading Act, we believe in the rule of law and we have a reputation for that—which I hope is still intact—and we are pushing transparency.

But I also think that in the leadership we show—as has been mentioned by others in the course of this debate—we must lead in respect of technology transmission as well. I was in Malaysia last week and was delighted at the work being done by His Majesty’s ambassadors in this respect. This is an area where again one can say that this is of benefit to us, apart from our worldwide leadership.

So what is the ultimate problem that we have to tackle? If transparency is to work, we must find a means of ensuring that what is made and put into the public domain is put in it without party-political or other spin. That is a huge challenge. I hope that this will not be a party-political issue but that we can rely on one person who is outstanding for their contribution on climate change, who can be seen as a spokesman and who will be properly supported to make our case as leaders, as believers in transparency, and as a nation, tiny though it is, that can make a real contribution. I hope that is the lesson from COP 27.