Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021

Baroness McIntosh of Pickering Excerpts

Tuesday 13th April 2021 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My Lords, I am delighted to follow the noble Baroness. I welcome my noble friend Lord Callanan to his place and I look forward to his views. I also welcome the noble Lord, Lord Teverson, to his position and thank him for his excellent chairmanship of the outgoing EU Sub-Committee on the Environment.

I thank my noble friend Lord Callanan for his clear exposition of the statutory instrument, which I support as it gives a clear legal basis on which the UK register will function. Does he share my concern that there will be a number of months before any trading can take place? Is my understanding correct that these account holders have now left the international register and cannot start trading until June this year? If that is the case, I understand from paragraph 7.3 of the Explanatory Memorandum that his department is encouraging account holders to register with other countries. If that is the case, can he explain what the cost and administrative burden on these account holders will be? Does he accept my concern that this is a burden with which they could well do without? Is it the department’s intention that they continue to register on two registers—the UK’s and another country’s register—or is this meant to be a short-term fix for the five months until our register becomes operational?

Further, is my understanding from A5 in appendix 1 of the Secondary Legislation Scrutiny Committee’s report correct that the account holders have to register for two UK registers, effectively holding a register for the UK emissions trading scheme as well as for this one before us on the ETS allowances? Again, can my noble friend comment on what the cost and administrative burden to these companies will be?

Can my noble friend also assure me and other noble Lords who have asked him about this that we will not lower expectations on reducing greenhouse gas emissions now that we have left the European Union? What will be the mechanism? Will there be a role for the OEP under the Environment Bill in this regard?

My final point is that there has been no public consultation, but there has apparently been an ongoing communication with account holders. That is slightly alarming. Could my noble friend explain to us precisely what those forms of communication have been? If they have not been sufficient, is it therefore any surprise that no account holder has registered any dissent?