Queen’s Speech

Baroness Blackstone Excerpts

Wednesday 18th May 2022 Lords Chamber

[Baroness Blackstone (Ind Lab)]

My Lords, I will focus on the need for international decarbonisation, and how the UK can have an impact abroad, largely through our overseas development aid and export finance.

We may account for only around 1% of global emissions, but nearly one-third of emissions are from countries with 1% of emissions or less, so that does not excuse us from action. Moreover, the statistics on historical emissions show that we rank fifth, after the US, China, Russia and Germany. Climate change and the heating of our planet stem from the Industrial Revolution, so although we do now emit less than some other nations, we none the less have a historic duty to take action. Self-interest also dictates that we should do so. It does not matter if a tonne of CO₂ is emitted in London, Mumbai or Shanghai; it all goes into the same atmosphere and has the same impact. That is why it is so important to rapidly use all the levers available to us to reduce emissions globally.

Traditionally, we punched higher than our weight as a large provider of overseas aid. It is now vital that this is used to tackle arguably the greatest crisis that the world has ever faced. The international development strategy published this week describes, in the first paragraph of its executive summary, climate change and biodiversity as two of the largest global challenges we face. It says we will support the recommendations of the Dasgupta review and that from 2023 ODA spending will be aligned with the Paris Agreement. This is most welcome. The strategy says that British International Investment—BII, which is the newly branded CDC and a wholly owned subsidiary of the FCDO—has set a target of 30% of new commitments over five years to be in climate finance. Of course, any money going into climate finance is extremely welcome, but can the Minister give an assurance that the other 70% of investments will not be in any way working against that 30%? Can he confirm that money will never go towards companies which are involved in environmentally damaging practices? The investment criteria for 2022-26 state that the CDC—now the BII—will not invest capital in fossil fuel subsectors that it has classified as misaligned with the Paris Agreement. This should mean we make absolutely no new investments in fossil fuels; as the International Energy Agency’s analysis indicates, there can be no additional fossil fuels if we are to limit warming to 1.5 degrees. Can the Minister please confirm that this is the case?

The strategy says also that we should deliver “honest and reliable investment”, but we cannot say we are doing so if any of that investment is in assets which increase emissions instead of reducing them. Africa, where the BII invests much of its capital, will be on the front line of the ravages of climate change. It is not Africa’s longer-term interest if we use taxpayers’ money to invest in the dirty technologies of the past, such as the £1 billion of UK export finance which is currently committed to the Mozambique gas pipeline.

Although it is well known that coal is the dirtiest of fuels—the coal phase-out was agreed in Glasgow last year—it is less well known that, according to the IEA, new coal infrastructure will be used for many years unless we intervene, and quickly. The average age of coal plants in Asia is currently 11 years but their usual life expectancy is 40 years, so we need to mobilise investment in clean energy in developing countries and help these nations shut down their dirty technology.

I regret the omission from the gracious Speech of a return to 0.7% of GNI for overseas development aid. I am sure the Minister will agree that, were this to happen, we could greatly increase the programmes to reduce carbon emissions and prevent climate change announced in the international development strategy published this week. I hope he will agree when he replies.