UK Infrastructure Bank Bill [HL]

Baroness Boycott Excerpts

2nd reading
Tuesday 24th May 2022 Lords Chamber

[Baroness Boycott (CB)]

My Lords, it is a pleasure to be part of this debate. I add my voice to those saying that we can no longer see biodiversity as separate from climate change. Everywhere you look, the two are not just different sides of the same coin; they are indeed the same. As we acidify the oceans, we lose the phytoplankton that absorbs carbon, which then affects the whole system. Each thing compounds the other, so while of course it is a fantastic opportunity to deliver some of the Government’s key strategic ambitions, it is incredibly important that delivery on nature is included as one of the bank’s strategic objectives.

The World Economic Forum recently said that global annual investment in nature-based solutions will need to quadruple to avoid the planet’s environment being pushed literally to the point of no return—it will not be able to regenerate. In the UK, we put very little investment into nature-based solutions, which is very unimaginative. We can find good examples but they are small. Most of the Government’s focus is on a few solutions such as tree planting. Wider nature restoration is so underinvested, with just 0.02% of UK GDP spent on restoring nature in 2018-19. Fantastically that, according to Wildlife and Countryside Link, was less than was spent on pothole repairs. Given that roads caused the problem in the first place, this is a bad state of affairs.

Like every other noble Lord in this House, with one exception, I welcome this bank. I am sorry we need it; we should be doing this stuff in the Treasury anyway, as has been promoted by Dasgupta and others. It is very important to see how many co-benefits come from linking up our delivery on tackling climate change and levelling up with delivery on nature. There are jobs and opportunities, and the restoration of all the beauty around us.

The Government’s response to the Dasgupta review, which many noble Lords in this House have debated over the last three years, recognised that

“more needs to be done … if we are to deliver a nature positive future.”

They are committed to

“ensuring economic and financial decision-making, and the systems and institutions that underpin it”.

So it is disappointing that, in view of the catastrophic decline in nature, as highlighted by the OEP, the Government have not taken the opportunity, following their review, to add a third natural capital objective to the bank’s overall objectives. Will the Minister reconsider this decision and help the UKIB to be a world leader in driving investment on this? Certainly, many noble Lords will be tabling amendments on this crucial point.

The Chancellor provided a strategic steer to the bank in March, setting out the detail of the Government’s priorities. He said:

“I’d encourage you to prioritise opportunities that align with the government’s renewed focus on energy security. Examples of relevant opportunities may include helping to bring forward low carbon energy projects that accelerate the UK’s transition to clean energy and improve the energy efficiency of buildings and homes.”

This is great. He also said:

“The Bank should work closely with central government to ensure its activities are complementary to … Net Zero”.


However, the Bill’s definition of infrastructure includes gas and roads, so I am concerned that these projects will be those that are actually funded and that they will cut across many commitments to net zero.

Nature investments have a much higher cost-benefit ratio than traditional infrastructure, with £4.60 returned for every £1 invested in peat-land and £2.80 returned from woodland, as highlighted by Green Alliance. The WWF reports that agriculture and nature-based investments could generate financial returns of £4 billion a year by 2050. Will the Minister consider including natural capital projects within the definition of infrastructure in the Bill? The returns speak for themselves, as does the commitment we need to bring. This is part of levelling up; these are projects in which communities will be involved. They are obviously more complicated to administer, so everything about the structure and directorships of the bank, or the questions of experts on its board, is crucial. If we miss this opportunity, however, we will ultimately fail in our goals towards net zero.