Climate Change: Nature-based Solutions (STC Report)

Baroness Brown of Cambridge Excerpts

Thursday 9th February 2023 Grand Committee

Moved by

[Baroness Brown of Cambridge]

That the Grand Committee takes note of the Report from the Science and Technology Committee Nature-based solutions for climate change: rhetoric or reality? (2nd Report, Session 2021-22, HL Paper 147).

[Baroness Brown of Cambridge (CB)]

My Lords, I start by declaring my interest as chair of the adaptation committee of the Climate Change Committee.

I am delighted to introduce for debate this Science and Technology Committee report on nature-based solutions for climate change on behalf of my noble friend Lord Patel, the former chair of the committee. I thank all the committee members who participated in the report; our expert adviser, Professor Peter Smith, of the University of Aberdeen; and particularly the committee staff at the time, George Webber, Thomas Hornigold and Cerise Burnett-Stuart.

Nature-based solutions form a critical element of the Government’s net-zero strategy. We will need the carbon sequestration services of new forests and woodlands, restored peatlands, and new wetlands and marine environments if we are to take enough carbon dioxide out of the atmosphere to get us to net-zero greenhouse gas emissions by 2050. We may also need to grow significant new areas of bioenergy crops to enable us to generate energy with carbon capture and storage, and to contribute to decarbonising aviation through the production of sustainable aviation fuels. All of that implies significant change to the way in which we use land. The CCC estimates that forest and woodland cover will need to increase from about 14% today to 18% by 2050, supported by major changes to what and how we farm. If we get it right, this will lead to healthier diets.

Our inquiry was important, but it was also timely, because the replacement of the common agricultural policy—following our departure from the European Union—by the development and introduction of the new environmental land management scheme is the key opportunity to support farmers properly to deliver the changes that we will need, while maintaining their livelihoods and enhancing our precious countryside.

The inquiry considered how protecting, managing and restoring natural ecosystems and agricultural land can reduce net greenhouse gas emissions and provide co-benefits such as adaptation to the changing climate, examining issues of both science and policy. The inquiry ran from July 2021 to January 2022, and we heard from a wide range of witnesses, including scientists with domain expertise on different types of nature-based solutions. We heard from stakeholders such as the National Farmers’ Union, the National Trust and the RSPB, as well as government agencies, including Natural England, the Forestry Commission and the Environment Agency, that deliver nature-based solutions. We also heard from government witnesses including civil servants, the Defra Chief Scientific Adviser, and the Environment Minister at the time, the noble Lord, Lord Goldsmith of Richmond Park.

Overall, we found that the Government have ambitious, even laudable, plans for nature-based solutions. There are headline commitments to plant 30,000 hectares of trees a year by 2025 and to restore 280,000 hectares of peatland by 2050. These sit alongside the ambitious reductions in land use emissions needed to achieve net zero. The scale of this ambition to restore nature is a major and essential component of reaching net zero, and could provide significant co-benefits for biodiversity, human health and well-being, and adaptation to climate change. We were pleased to see the Government lobby for the inclusion of nature-based solutions in the COP 26 decision text, as we advised in a letter to the president of COP 26.

However, in our report we were sceptical and concerned about whether the current level of policy support is sufficient to see these plans realised. There are strong headwinds that need to be overcome to deliver effective nature-based solutions. There are scientific uncertainties around how much carbon these approaches will sequester, and on what timescales. The Government have neither assessed the skills gap nor provided sufficient training to ensure that nature-based solutions can be deployed at scale.

There remains huge uncertainty about the details of the policies that are set to incentivise nature-based solutions, such as the new environmental land management schemes. More funding is likely to be required in key areas, from basic scientific research to funding for public delivery bodies that will have to regulate and support these projects. Many land managers feel disengaged and uncertain about the changes they will need to make, but their support is critical for these schemes to be delivered.

The Government are relying on private finance to help to fund nature-based solutions by creating markets for carbon credits and other ecosystem services that nature-based solutions can provide. However, these markets exist only on a small scale at present, and the regulatory infrastructure needed to ensure that they work as intended and genuinely deliver carbon removal over time does not yet exist.

Finally, we found that the Government have not said anywhere how they will balance the many competing demands on UK land. The committee was seeking evidence that the Government have a coherent plan for meeting these demands; we did not hear it. In short, although the Government’s ambitions for nature-based solutions are admirable and we support them, our report found that there is a clear and present danger that they will not be achieved, and that this could undermine the target of net zero by 2050, as well as undermine the agricultural sector with a failed transition.

Our committee made a number of recommendations to assist the Government in delivering their ambitions. Among these, we wanted the Government to invest further in researching the storage potential of nature-based solutions, especially for soils and in the marine environment. We recommended that the budgets of public delivery bodies such as Natural England and the Environment Agency be increased to be commensurate with the increased workload of deploying nature-based solutions at the scale of the government targets.

We asked the Government to provide urgent clarity on the nature of environmental land management schemes and how they will support nature-based solutions among their other objectives. We recommended that communication with land managers be improved, and the introduction of a dedicated advisory service for land managers to help them to navigate ELMS.

We made a number of recommendations about private financing for nature-based solutions, including that existing standards such as the woodland and peatland codes incorporate additional value for ecosystem services and co-benefits beyond carbon sequestration. We asked for clearer regulatory standards for emerging carbon markets and for the Government to create or sponsor an independent central broker to allow stacked and blended finance from the private and public sector and for a combination of different projects.

Finally, as with much in climate change policy, we wanted to see a plan that added up. Specifically, we wanted the Government to develop an overall land use strategy that explained how trade-offs in land use would be managed to deliver nature-based solutions as well as other important targets.

The Government’s response to our report was generally positive, and I warmly thank the Defra civil servants involved for their detailed and helpful work. The response was characterised well by our evidence session with the noble Lord, Lord Goldsmith, who responded to most of our lines of questioning by agreeing with the concerns and points raised by the committee.

Among the concrete responses, we heard that the Government would publish more detailed information on the environmental land management scheme later in 2022. More detail has now been published on the sustainable farming incentive, launching new standards for payments, and further pilot projects for the landscape recovery scheme will be awarded in the next two years.

The Government said that Defra would conduct “spatially explicit analysis” on land use to assess the level and type of changes in land use in England indicated by government commitments, which would help to manage trade-offs in land uses. They said that the need for a land use strategy would be kept under review as work progressed in 2022.

The Government committed to engaging with land managers but stopped short of our recommendation to introduce a new advisory service to help them navigate ELMS. Farmers are now referred to a range of local organisations that can provide advice. However, evidence from stakeholder groups such as the National Farmers’ Union suggests that farmers are still struggling with the details of the schemes. The Government said they will work with stakeholders to develop a

“more stable and comprehensive standards framework … later this year”—

that is, in 2022, for carbon and other ecosystem services, to

“help ensure their use is beneficial for the climate, people, and nature.”

Section 6.5.1 of Chris Skidmore’s excellent review, Mission Zero: Independent Review of Net Zero, published this year, urges the Government to set up a regulator for carbon credits and offsets, and indeed repeats many of our recommendations in this area, suggesting that the problems are not yet resolved.

A year has passed since we published our report on nature-based solutions; we are a year closer to the net-zero target, and nature needs time to act. Trees take 20 or 30 years to grow and deliver their carbon sequestration potential, so action is urgent; we have to act now, and we do not seem to have seen much progress.

Let me illustrate my point with a few examples. In the environmental land management scheme, only the sustainable farming incentive has launched, which is the most basic payment scheme and the closest to the previous area-based payments. Local nature recovery and landscape recovery are still in pilot stages, and the old scheme of countryside stewardship is still being used. We hear that there are problems getting sufficient enrolment in schemes. Only 2.4% of eligible farmers—2,000 out of 82,000—applied for the sustainable farming incentive, which was intended to be the simplest ELMS and the one that most land managers would apply to. The Government have had to boost the payment rates to try to get more farmers to apply.

The House of Lords ad hoc Committee on Land Use in England, in its final report, published in December 2022, echoes our recommendations, saying:

“Create a Land Use Commission tasked with producing a land use framework. The framework must consider several factors, including food, nature, housing needs and the push for net zero.”


It continues by saying that we should

“provide immediate clarity on the Environmental Land Management Schemes … programme, ending the uncertainty which is causing serious problems for effective land use.”

We are hearing increased reports that the UK will miss its tree-planting targets, and there are similar stories about Scotland’s peat and the Scottish Government’s nature restoration targets. The Government missed their legal deadline for setting the first batch of targets under the Environment Act 2021, and there are concerns that the post-Brexit sunsetting of regulations will remove vital environmental regulations. These examples serve to underline that much more action is needed, and it is needed urgently.

To conclude, I ask the Minister to respond to the following questions. What are the Government going to do to ensure that we catch up with our tree-planting targets, given the shortage of nurseries, plug plants, skilled people and the lack of a clear land use strategy which addresses the trade-offs—for example, between food and carbon sequestration? The current markets for nature-based solutions have been described as the “wild west”, given a lack of strong governance and standards. Greenwashing is rife, while uncertainty about the level and consistency of revenues of certain ecosystems services is undermining the confidence of some investors. What discussions are the Government having about a strong, independent co-ordinating body to scrutinise and set national standards for nature-based solutions in the UK? This is an area where UK action could show real leadership and give confidence to corporates to fund these critical developments.

As you might expect, we are very fond of numbers on the Science and Technology Select Committee. We like sums that add up and measures that can be quantified. How will the Government make the numbers add up? The funding required for nature recovery in the UK is estimated to be between £4 billion and £10 billion per annum. Total government spending is about £650 million per annum, with aspirations for private sector investment to match this. How are we going to fill the gap?

Finally, after a catalogue of good intentions but missed targets and deadlines, what are we going to do to instil a sense of urgency and catch up with the delivery of this critical and laudable ambition? I beg to move.

--- Later in debate ---

[Baroness Brown of Cambridge (CB)]

I thank the Minister for his extensive response. I was pleased that he mentioned a lot of numbers and actions, and I too will study Hansard carefully—I will take them away and think about them further. At the moment, however, I fear I am still not convinced that they add up to an integrated solution to this issue.

I too thank all who have spoken in this debate—I will not repeat what noble Lords said so eloquently. I thank the noble Baronesses, Lady Worthington and Lady Bennett, for reminding us of what I will call the “zeroth” law of nature-based solutions, which is that they cannot be used as an excuse for not decarbonising rapidly. In that vein, the first law is that nature-based solutions are critical for achieving net zero for our residual emissions, as the noble Baroness, Lady Worthington, reminded us. The second law is that more research and training are needed. The third is that they will not work without robust monitoring and verification. The fourth is that this is not just a Defra issue; it needs the cross-government approach that the Minister mentioned. The fifth is that we must establish robust ways to fund them and we must have offsets that we can trust. The sixth is that our farmers are critical and need our help.

I hope that, as a result of today’s debate, the Government will reflect further—I think I heard the Minister say this, which pleased me—on whether the scale and pace of their current and proposed actions add up to a solution to the challenge of effective implementation and use of nature-based solutions in helping us reach net zero.

Motion agreed.