Decarbonisation

Baroness Blackstone Excerpts

Thursday 13th July 2023 Lords Chamber

Asked by

[Baroness Blackstone]

To ask His Majesty’s Government, further to their consultation on ‘Addressing carbon leakage risk to support decarbonisation’ published on 30 March, what assessment they have made of the case for extending green procurement targets beyond steel and cement to include other carbon-intensive sectors covered by the UK Emissions Trading Scheme, such as paper and power, and products made from materials covered by the UK ETS, such as vehicles.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, the Government are currently exploring options for utilising public procurement to create demand for green industrial products. We have sought views via consultation to help develop proposals for policy measures that support the growth of low-carbon industries. The Government’s Construction Playbook advises that projects should be accompanied by a whole-life carbon assessment and PPN 06/21 requires suppliers bidding for major government contracts to commit to net zero by 2050 and to publish a carbon reduction plan.

[Baroness Blackstone (Lab)]

My Lords, I am grateful to the Minister for his response, but I wonder whether I can press him a little further. In the Government’s consultation, they propose to use minimum product standards to protect just two or three sectors from unfair competition from overseas and not to bring in these measures until late in the 2020s. Should not the Government be setting minimum product standards across a wider range of sectors, and sooner, to protect domestic manufacturing from unfair competition, especially from China, where grid electricity has twice the carbon intensity and is half the price compared with the UK?

[Lord Callanan (Con)]

The consultation only closed at the end of last month, so the noble Baroness will need to give us a bit of time to analyse the hundreds of responses that we received. It is a complicated issue, and we of course understand the desire for quicker action, but there is a whole range of factors to be taken into account. We have to be very careful not to indulge in some form of green protectionism, where we incentivise lower-standard products against others that are better performing. Across a whole range of sectors and procurement areas, it is a complicated issue that deserves to be studied properly.