Net-zero Emissions Target

Lord Whitty Excerpts

Monday 11th October 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, as I said earlier, I cannot speak for the spending review or the Budget. However, we will not be seeking to inadvertently encourage excess use of aviation travel. But again, it is a very vital part of our economy and, until other forms of transport take its place, we need to support it.

[Lord Whitty (Lab)]

My Lords, it is, frankly, widely believed in both business and environmental circles that the Treasury is at best lukewarm about using fiscal measures to support the climate change strategy. If that is not the case, why has the Treasury not used the supposed freedom post Brexit to remove VAT from building refurbishment, thus continuing to incentivise high-carbon demolition and disincentivise refurbishment and retrofit?

[Lord Agnew of Oulton (Con)]

My Lords, I respectfully disagree with the noble Lord’s view of the Treasury’s position. I mentioned the emissions trading scheme that was announced earlier this year. We have published the Industrial Decarbonisation Strategy, which sets out the vision for a low-carbon industrial sector by 2050. In March this year we were the first G7 country to agree a landmark North Sea transition to support the oil and gas industry’s transition to clean energy. Through this deal, the sector has committed to cut emissions by 50% by 2030. The Treasury is closely involved in all these initiatives.