Climate Change, the Environment and Global Development

Andrew Stephenson Excerpts

Wednesday 10th July 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

I beg to move,

That this House has considered tackling climate change, protecting the environment and securing global development.

I welcome this timely debate and the work of the Select Committee on International Development, and of many hon. and right hon. Members on both sides of the House, to highlight the urgency of addressing the interlinked challenges of tackling climate change, protecting the environment and ensuring sustainable development.

The challenge has never been clearer and our will to act has never been stronger, as demonstrated by the resounding support from both sides of the House for committing the UK to a target of net zero emissions by 2050. The world faces the challenges of doubling global infrastructure to meet development and of feeding 1 billion more people, while simultaneously halving global greenhouse gas emissions by 2030 to keep pace with the Paris climate change targets.

Globally, we are not yet on track to meet the aspirations of the Paris climate agreement. On our current trajectory, we may hit 1.5° C above pre-industrial temperatures as early as 2030, and 3.5° C above by 2050. This risks 100 million people being pushed into poverty by climate change by 2030, making the sustainable development goals much harder to achieve.

[Mr Jim Cunningham (Coventry South) (Lab)]

What has been the impact of the Americans withdrawing from the Paris agreement? Has there been any dialogue, for want of a better term, with the Americans to get them back into the agreement?

[Andrew Stephenson]

We have regular discussions with the American Government. Obviously we think the Paris climate change agreement is important, but we are seeing reductions in America’s emissions because many states and many bodies across the country have decided to up their ambitions despite the actions of the federal Government. We are seeing some encouraging signs, even if we hope the US Administration would go further and faster.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Minister talks of the need for the US to go further, but will he acknowledge that the UK needs to go an awful lot further, too? He will be aware that the Committee on Climate Change reported just this morning that

“actions to date have fallen short of what is needed for the previous targets and well short of those required for the net-zero target”.

If that is what the Government’s own watchdog is saying, what will they do to make sure we have real action, not just warm words?

[Andrew Stephenson]

We are the best in the G20 in terms of our reductions. Between 1990 and 2017 we reduced our emissions by 42% while growing our economy by 72%. I will happily take some criticism from the Committee on Climate Change, but we should acknowledge that this country is a global leader in our efforts to tackle climate change.

[Henry Smith (Crawley) (Con)]

I congratulate the Government on leading the way as the first major industrial country to call for net zero carbon emissions by 2050. We lead the world on our international development commitments, and as a member of the International Development Committee—the Committee is meeting in a few minutes’ time, which is why many members of the Committee are not here today—may I urge the Government to make sure we do so on the environment, too?

[Andrew Stephenson]

I thank my hon. Friend for what he says, and I pay tribute to him and to other members of the International Development Committee for their inquiry on this subject. I know the Committee heard many different pieces of evidence, and it made firm recommendations to the Government. I hope we will have the official response soon—hopefully next week—and then we can all reflect on how we can go further and faster, because we do need to go further and faster in all these areas.

[Caroline Lucas]

Will the Minister give way?

[Andrew Stephenson]

I am going to make some progress. I am about one minute into my speech, and I have already given way to the hon. Lady.

The International Development Committee described the impacts of climate change as “nightmarish,” and it talked about increasing drought, flooding, displacement, hunger and disease, potentially reversing the hard-won development progress we have seen over the past few decades.

The International Development Committee’s inquiry on UK aid for combating climate change, published in April, found that

“it will be the least developed countries and the most vulnerable people who will be hit the first and the hardest by climate change…Climate change cuts across everything. The effectiveness of all UK aid spending is dependent on whether the international community rapidly and effectively combats the causes and impacts of climate change.”

As the scale of the challenge becomes ever clearer, we see a tipping point in public awareness and engagement.

I doubt whether any hon. Member here today does not have schools in their constituency that are going above and beyond in learning about the environment. I recently visited St Joseph’s Catholic Primary School in Barnoldswick, in my constituency, to present it with an Eco-Schools green flag award.

We have also seen children at schools around the world going on strike to call for urgent climate action. We have seen the success of London Climate Action Week, with 150 events showcasing a wide spectrum of climate action and solutions, and we have witnessed the strength of cross-party support for our bid to host COP 26 next year and for the UK leading the way with our net zero target.

There are many challenges ahead. We know we need to do more, and we do not have all the answers yet, but we should be proud of the UK’s ambition and leadership to date on climate change. We have led the world in delivering clean growth, showing that action on climate change can be a win-win for the environment, for the economy and for quality of life.

[Anna McMorrin (Cardiff North) (Lab)]

Is the Minister able to go into more detail on the radical change that is urgently needed across all levels of government and all Departments to make sure that change happens within the next 11 years? That is what the advice is telling us. Otherwise we face a climate emergency the likes of which we have never seen.

[Andrew Stephenson]

As the hon. Lady will be aware, the Government have published a number of strategies that are kept under constant review. In my own area—business and industry—“The Road to Zero” was published about a year ago, and it talks about phasing out all petrol and diesel cars by 2040, which is something we need to keep under review. Many hon. Members on both sides of the House think we should do it faster, and as we roll out charging points, invest in industry and take various other steps, we should always keep these things under review as we seek to decarbonise transport, home heating and all sectors of our economy.

[Anna McMorrin]

Words are fantastic, but we need to see action and targets to meet them. The advice of the Committee on Climate Change is actually to move towards getting rid of diesel cars long before 2040. We need to take urgent action to cut those emissions, and to cut them now.

[Andrew Stephenson]

I have some sympathy with what the hon. Lady says, but the Government set the target in “The Road to Zero” after consultation with industry and different groups. We came to it as a sensible target. We now have more than 200,000 electric vehicles on our roads and more than 20,000 charging points.

One thing that is overlooked when people think about the charging infrastructure is that, over the past few months, we have been installing 1,000 additional public charging points every month. We are starting to see a significant ramping up of progress, following announcements of investment in this area over successive years. Over £1.5 billion is being invested in the decarbonisation of cars in this country. In the months ahead, in addition to further Government announcements, we will start to see progress in this area.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my hon. Friend agree that what we have is a process in which the Committee on Climate Change is helping us by pointing out what we need to do next, and we are doing it? Recently, 80% by 2050 became 100%, so it is a process by which we are meeting our targets.

[Andrew Stephenson]

I thank my right hon. and learned Friend for that point. Most of the committee’s critique of the Government is fair, but we are about to publish updates on 80% of the actions. In many we have signalled a clear policy intent, for example on future home standards. A lot of progress is being made, and I agree with his point.

On 27 June, we set a legally binding target to achieve net zero greenhouse gas emissions from across the UK by 2050. That world-leading target will bring to an end our contribution to climate change, and makes the UK the first major economy to legislate for a net zero target. The UK also has a strong track record on international development, through our legal commitment to provide 0.7% of our gross national income as official development assistance. Alongside efforts to reduce our own emissions, we have committed to work with developing countries, including as part of our ODA, to enable them to pursue clean growth and climate-resilient development. We are on track to provide £5.8 billion of climate aid—our international climate finance—to help developing countries tackle the causes and impacts of climate change between 2016 and 2020.

That climate aid is delivering real results. Since 2011, we have helped more than 47 million people cope with the effects of climate change and natural disasters. We have provided 17 million people with access to clean energy. But it is still not enough. As the International Development Committee noted, it is not a problem that can be solved by Government action alone. We need businesses, communities and individuals to also act. It will be really challenging: real shifts in behaviour and global ambition will be needed, and there can be no more business as usual.

The next few years are critical. That is why tackling the crisis has become such a high priority for the UK, and it is why we have offered to preside over the major UN climate summit next year—COP 26—in partnership with Italy.

[Wera Hobhouse (Bath) (LD)]

On the point about business, what has also been said clearly this morning in the report back from the Committee on Climate Change is that the Government need to set out a road map so that business can understand in which direction they are going, and then the investment will follow. The first action has to lie with the Government.

[Andrew Stephenson]

To go back to the example I have just used of decarbonising transport in this country, “The Road to Zero” is a clear road map that was set out a year ago by the Government. It was not a kneejerk reaction: it was done in consultation with industry, other bodies and our international partners to come up with a credible track to reduce carbon emissions from road transport.

The UN climate action summit in September this year is a key staging post in our efforts. It will be a critical opportunity for world leaders to set out their ambitions ahead of COP 26, and to drive an unprecedented shift in the way we approach resilience and adaptation. Despite the scale of this challenge and the opportunities to be gained from acting, it is often seen as a problem for the future. That is why the United Kingdom and Egypt are co-leading the resilience and adaptation theme at the UN climate action summit in September. We want to drive a transformational change in the way different stakeholders around the world think about and invest in resilience and adaptation.

[Rachel Reeves (Leeds West) (Lab)]

The resilience point is well made and incredibly important. The Committee on Climate Change said today that some 9,000 properties a year need to be fitted with flood protection—up from 500 at the moment. Kirkstall in my constituency flooded in December 2015 and the Government still have not committed to the level of flood protection that the community needs. When the Government speak about resilience, is it not just more warm words and not enough action?

--- Later in debate ---

[Andrew Stephenson]

I disagree with the hon. Lady. We have seen billions of pounds spent on flood defences across the United Kingdom. There are areas where we want to go faster: the Environment Agency has just finished a £1 million project in Earby in my constituency, and I am lobbying for it to do even more in the area. I am aware that many right hon. and hon. Members would like us to go further and faster on flood defences. I will happily raise the issue with my colleagues in DEFRA, but we are investing in ensuring that we are resilient in the future. We can do more, and we need to do more, but we are making some good progress.

Let me turn to the issue of international climate finance. Many of the interventions so far have been about our domestic record, but I want to steer us back to our international obligations and what we are doing to help some of the poorest in the world.

Let me give the House a sense of the ways in which the UK is supporting developing countries with the climate challenge. The UK uses its international climate finance, a growing part of our UK aid budget, to support developing countries to move on from business as usual to: adapt and be more climate resilient; take up transformational low-carbon development; and tackle deforestation and unsustainable land use. The Department for International Development, the Department for Business, Energy and Industrial Strategy and DEFRA work together to deliver that support, which is making a difference in over 100 countries across Africa, Asia and Latin America.

[Kerry McCarthy (Bristol East) (Lab)]

Two quick points. At the launch of the “People and Nature” campaign in Parliament on Monday, we discussed the fact that there is not much point in DFID adopting these very admirable principles if UK Export Finance is supporting fossil fuel investment. Secondly, we have heard reports recently that in Brazil, parts of the Amazon the size of a football pitch are being deforested every minute. The current President’s approach suggests that he wants to continue that deforestation. Where does that fit? We hear that Government Ministers are going to Brazil to talk about fossil fuel exploration. There seems to be a lack of consistency between what DFID and other arms of Government are doing.

[Andrew Stephenson]

I thank the hon. Lady for those points. There has been a clear trend in UK Export Finance to move away from support for fossil fuels and towards significant additional resources going into funding renewables. Where fossil fuels have been supported they have been fuels such as gas, which is widely seen as a transition fossil fuel, and away from high-polluting fossil fuels such as coal, which UK Export Finance has not financed for well over a decade. I will touch on Brazil in my speech, so if she will allow me I will come on to that shortly.

Through programmes like the Climate Investment Funds, we are: climate-proofing road and canals in Zambia; mainstreaming climate resilience into Government planning in Malawi and Mozambique; supporting climate-vulnerable small island states to manage climate risks; and helping to drive investment in some of the largest solar power complexes in the world. Through programmes like the Renewable Energy Performance Platform, we are mobilising private sector investment in solar homes systems and small-scale renewable energy in sub-Saharan Africa, bringing clean power to those who need it most.

[Bob Stewart (Beckenham) (Con)]

I thank my good friend the Minister for allowing me to intervene. Ever since I was a boy, I have always been extremely concerned about jet fuel being injected directly into the upper atmosphere. I was told when I was young that it was clean. Of course it is not. One of the really big problems we have internationally is that jets go across our skies—some of them are not ours, obviously—and we cannot electrify a jet engine. It would be wonderful if someone could come up with a way of making an electric jet engine, so that we do not spew out exhaust into the upper atmosphere, which must have a direct effect on our climate.

[Andrew Stephenson]

I agree with most of what my hon. and gallant Friend says. I would just say that we do not have an electric jet engine—yet. Through the industrial strategy, a huge number of programmes are being run through my Department, including the Future Flight Challenge, which is looking at exactly these challenges so that we do not just electrify road transport, but move to lighter-weight and more efficient engines, and eventually on to electric engines flying our passenger aircrafts. Some of that work is running over a long period of time, but between Government and industry we are investing billions of pounds in exactly the kind of challenge he talks about.

We are a world leader in climate policy, green finance, and sustainable services and technologies. Through our climate aid programmes we are sharing our learning and expertise internationally, whether bilaterally or in multilateral forums, building on our pioneering Climate Change Act 2008, net zero legislation and standard-setting power sector reform, helping to build markets for clean growth technology and services worldwide. To give the House an example, in June, my Department hosted delegates from 12 developing countries for a week-long workshop to introduce them to British expertise in offshore wind and see it in action in the Tees Valley. We are now working with the World Bank to support those countries with their plans to develop their own offshore wind projects.

We are building bilateral partnerships to tackle these challenges. For example, the UK recently signed a memorandum of understanding with Colombia, signalling the start of a bold new partnership for sustainable growth. This first-of-its-kind partnership focuses on: clean growth; halting deforestation and environmental crime; preserving biodiversity; and promoting green finance to ensure the private sector can play its part in supporting Colombia’s transformation. About 200,000 square hectares of forest are lost each year in Colombia, putting its diverse ecosystems, indigenous communities and natural resources at risk, as well as driving greenhouse gas emissions. Our programmes address the structural development issues that lead to such deforestation, and in turn reduce carbon emissions.

One of our programmes works to restore degraded land, increase biodiversity and protect standing forests while at the same time increasing agricultural production by 17%, bringing income to the poorest farmers. That is sustainable development in action, benefiting the climate, the environment and people’s livelihoods. Working to mobilise private investment to address the climate challenges is a strong focus of our climate aid, and our innovative, market-driven approach ensures that we meet global climate and sustainable development needs hand in hand.

To give another example, growing demand for soy is driving agricultural expansion and deforestation in Brazil, particularly in the Cerrado savannah region, driving up emissions and causing environmental destruction. During London Climate Action Week, we announced a green bond that will help to prevent land conversion and restore natural habitats, while supporting farmers to grow their businesses. Launched the same week as the green finance strategy, it highlights our commitment to using our green finance expertise to support sustainable development in Brazil and other countries that will be most directly impacted by the effects of climate change.

[Sarah Newton (Truro and Falmouth) (Con)]

My hon. Friend makes an important point about sustainable development and preventing deforestation. Does he agree that we must reach out to countries that we currently have a difficult relationship with—for example, Russia, where we are seeing dramatic deforestation in Siberia that could create untold damage not only to the region, but to the climate?

[Andrew Stephenson]

I agree very strongly with what my hon. Friend says. We must work with all countries around the world. Obviously, most of our overseas work is focused on the poorest countries, but we must ensure that we engage with middle-income countries and all countries to ensure that they play their part, because it is the poorest in the world who will pay the price, and an ounce of carbon does not recognise national borders. We must work on this internationally; that is why I am really proud that we are bidding for the conference of the parties to be held here. We can never stop pushing on this globally to ensure that we are all doing everything that we can.

The scale of the challenge that we have talked about today is immense. Meeting our objectives and delivering the global transition to a low-carbon economy, while ensuring continued global development, will require action from Governments, business and communities. The UK is at the forefront of ambitious action to catalyse that transition. As announced by my right hon. Friend the Prime Minister at the G20, we have committed to ensuring that all UK aid spend will be aligned with the Paris agreement. That will mean that every penny we spend on support for developing countries, whether for education, job creation or infrastructure, will be compatible with our shared climate change goals.

We will work collaboratively with partners around the globe, including the multilateral development banks, to develop appropriate and robust methodologies for enabling our aid to align with the objectives of the Paris agreement, and we will encourage others to follow suit. My right hon. Friend the Secretary of State for International Development has also set out his intention to double the spending in his Department on climate and environment between 2021 and 2025, and to put climate and environment at the centre of our aid strategy.

Government action alone will not be enough; the global transition to a low-carbon economy will require unprecedented investment in green and low-carbon technologies, services and infrastructure. That is why the green finance strategy that we launched on 2 July is such an important step. Building a financial system fit for net zero will mean fundamental changes to the way in which investment decisions are made.

The strategy will position the UK at the forefront of this global transition, catalysing the investment we need to transition to a net zero economy, while strengthening the competitiveness of the UK financial sector and the wider economy, and ensuring that the City of London is the go-to hub for green investment and that we seize the significant opportunities of clean growth for the UK economy. Only once we are shifting the global economy by trillions will we really start to see a gear change in the low-carbon transition. It is critical that we all work together to make this transition. Tackling climate change and pursuing clean growth are critical to continued global prosperity and meeting the sustainable development goals, and for our continued prosperity and security right here in the UK.

As well as challenges, the low-carbon transition will bring huge opportunities—for cleaner air, for conserving the environment, for creating economic opportunities that the UK is well placed to seize. There are almost 400,000 jobs in the UK’s low-carbon sector and supply chains, and it is estimated that the UK low-carbon economy could grow by 11% per year until 2030. I am proud that UK companies such as Lightsource, which is developing solar in India, BBOXX, which is enabling off-grid power in sub-Saharan Africa, and Faro Energy, which is investing in renewables in Brazil, are helping to drive the clean growth transition around the world.

[Caroline Lucas]

Will the Minister give way?

[Andrew Stephenson]

I am about to conclude my remarks, but I look forward to the hon. Lady’s contribution.

The UK has a proud record in this area. We have committed to spend 0.7% of GDP on international development and are the first major economy to legislate for net zero. By working together—Government, business and individuals—we can be world leaders in this area. I look forward to the contributions of hon. Members from across the House, including that of the Minister of State, Department for International Development, my hon. Friend the Member for West Worcestershire (Harriett Baldwin).

--- Later in debate ---

[Sir Oliver Heald]

I agree that co-ordination is crucial. The hon. Lady makes a good point about infrastructure.

To make that long-term target a reality, we need short-term policies to get us to the point where we can accelerate electrification of road transport. Important measures include providing Government-backed interest-free loans for electric vehicle purchase; creating incentives for the installation of ultra-rapid electric vehicle chargers at key strategic points, such as on the motorway network; a new tax on sales of non-electric vehicles after 2030; introducing the right as a tenant to request an electric vehicle charging point; and changing the sort of fuel we use in petrol or hybrid petrol cars. I support the campaign recently instigated by the all-party parliamentary group for British bioethanol, which has considerable support in the House, for a shift to 10% ethanol in standard petrol, which would deliver both emission reductions and UK jobs and which I see as part of the transition.

British bioethanol is created essentially from wheat in the north of England. The wheat would otherwise be used for animal feedstuff if, and only if, a high-protein additive such as soya were added to it. It cannot be used for human beings. The soya comes from South America, which touches on the point about the Brazilian rain forest, which makes these soya imports a subject of environmental concern. A by-product of making bioethanol from British wheat is a rich-in-protein animal feed, which displaces the soya. With total investment of £5 billion, two factories have been set up in the north of England, involving 5,000 jobs. One of them is mothballed and the other is running at half capacity as they wait for the Government to mandate E10 petrol—petrol with 10% ethanol. Forward-looking countries in Europe, Australia, Canada and the USA are already doing that; it is time we got on board. It is estimated that the reduction in carbon emissions from E10 being used as the UK’s standard petrol would be equivalent to taking 700,000 cars off the road; it would also be less polluting and protect British jobs. I know the Department for Transport has already consulted on this, but it should move quickly to make this change, certainly for 2020.

Let me now talk about the tax situation and how we deal with the change from fuel duty to a world of electric vehicles. As we shift to electric vehicles, the amount of revenue the Exchequer takes from fuel duty will naturally shrink. We need, therefore, to change how we pay for roads. Road pricing is based on the principle that those making use of public roads should pay a sum commensurate with costs involved. Ideally, the total sum should include the costs of air pollution and greenhouse gases as well. Sophisticated schemes also use live data to factor in congestion, and charge people more to drive during peak times on busy roads. There are existing schemes, such as in Singapore, that show that this can be done. So the Government should be looking at that as a possible way forward. By working with the power of market price signals, road pricing incentivises individuals to use cleaner fuel and to travel at times that are less damaging.

I shall turn now to regional rail networks and bus, tram and cycling services. The lack of decent transport outside London is a handbrake on UK growth. Local transport networks in towns and cities are woefully undeveloped compared with those in similar sized places in other countries. For example, Leeds is the largest city in the European Union with no mass transport system. Its twin city, Lille, has two metro lines, two tram lines, and an international high-speed rail connection. Fixing this disparity is critical to UK growth and to easing the pressure on housing demand in London. To meet net zero, we need a switch of freight from road to rail, and for commuters and travellers to feel confident to use low carbon transport.

I wish to mention a few strategic transport investments at this point. Surely the time has come to modernise the rail network across the Pennines—

[Andrew Stephenson]

Hear, hear.

[Sir Oliver Heald]

The electrification of the rest of the midland main line is another that the Minister would probably agree with. What about the new super-tram network for Leeds? How long has Sheffield had its tram? As the Government engage in transformative infrastructure projects, it is important that they do not ignore local efforts to encourage active transport, such as cycling. I support cycling schemes, through Sustrans and the revamped cycle to work scheme.

In my North East Hertfordshire constituency, we have done a considerable amount to improve cycling facilities, but we want more. At a recent conference in Letchworth Garden City, the subject was “connectivity”. People were looking at how we can have connectivity in a low carbon way, and this involved new developments and how we fit them in with existing ones. Improving both the low carbon footprint of towns and industry, and the low carbon transport between them, was a key subject discussed.