Kerry McCarthy
Main Page: Kerry McCarthy (Labour - Bristol East)(1 year, 9 months ago)
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It is a pleasure to see you in the Chair, Mr Efford. I thank the hon. Members for Bath (Wera Hobhouse) and for Glasgow South (Stewart Malcolm McDonald) for securing this debate, which is a very timely one, given that COP is about to start. I think I agree with the hon. Member for Glasgow South that this debate should have fallen within the remit of the FCDO or the Ministry of Defence, but the Minister and I, with our climate change briefs, will try to do justice to some of the issues that have been raised.
The hon. Member for Bath was right to talk about Putin’s hostile actions in Ukraine, which have drawn energy security to the forefront of people’s minds. It has always been quite difficult to get people interested in energy policy—it is sometimes seen as a very techy issue—but when we put it in the global context of how undue reliance on Russian energy supplies affects our security and the security of many countries, the lesson to be learned is that we need to be more self-sufficient. Obviously, the way to achieve self-sufficiency is through a quicker shift towards renewables, and—as I hope Members spotted—at its recent conference in Liverpool, Labour made a pledge for clean power by 2030. That is not just based on the awareness that we need to tackle the climate emergency, or that renewables are far cheaper—nine times cheaper—than gas; it is about our energy security needs as well.
It was interesting to hear the hon. Member for Bath talk about the impact on the financial system. I have spoken to insurance companies that are having to reappraise what they do, given that some of the risks they are used to insuring against are getting to the stage where they are either uninsurable, or those companies are far more likely to have to pay out on them. Flooding is an obvious example, but there is also this issue of stranded assets when it comes to their investments. Both the hon. Member for Glasgow North (Patrick Grady) and the hon. Member for Bath talked about how this is an opportunity, and as the shadow Secretary of State for climate change, my right hon. Friend the Member for Doncaster North (Edward Miliband), said at Labour conference,
“It’s cheaper to save the planet than it is to destroy it.”
Most people—although perhaps not the previous BEIS Secretary, the right hon. Member for North East Somerset (Mr Rees-Mogg)—are beginning to realise that we have huge opportunities in this space.
The hon. Member for Strangford (Jim Shannon) spoke about the irony of there being flooding one moment in Northern Ireland and hosepipe bans the next, which brought home the fact that this is not just something that is happening in the most climate-vulnerable countries: we are seeing the impacts of climate change everywhere. Even just in recent times, we have seen floods in Pakistan, as has been mentioned; droughts and famine in east Africa; extreme weather events hitting central America, the Caribbean and the Asia-Pacific; and wildfires in California. We are seeing those physical manifestations of climate change around the globe, and the associated geopolitical risks.
Obviously, climate migration—the outflow of people from areas where their lives or livelihoods are threatened—is one of those risks. In some cases, those people are in mortal danger and it is imperative that they flee; in other cases, it is because their former way of life is no longer economically viable. A report from the World Bank suggests that 216 million people may be displaced by 2050 due to climate breakdown. Of course, not all of those people will choose to leave their homes, but they will then be left in an increasingly vulnerable situation where they are likely to be in immense poverty and at risk of resorting to desperate measures.
The other aspect is the battle over resources—for example, the melting of the ice on the third pole, the Himalayas. That is absolutely crucial to the water supply in India and China, and we may well see those two major superpowers at war with each other over access to that resource. Increasingly, we also see criminal elements being involved in deforestation in a bid to plunder the forests. Somali piracy, which was an issue a few years ago, is not quite a climate change issue, but it is closely linked to overfishing. It might not be climate change, but it is about the plundering of the world’s natural resources, and the inadvertent consequences of Somali fishermen not being able to make a living from their traditional way of life, and therefore turning to other activities.
The climate crisis accelerates instability around the world, and opens up a vacuum in which extremism can fester. As the UN Secretary-General said, it is a “crisis amplifier”. It often contributes to a breakdown of law, increased inequality and rapid social change. For example, in the Lake Chad basin, Boko Haram has taken advantage of a scarcity of natural resources to conscript young people to its cause. In war-torn Yemen, the humanitarian crisis has been exacerbated by drought. ISIS has exploited water shortages in the middle east. As well as turning people towards terror, the damaging effects of climate change also risk leaving countries dependent on hostile states. A delegation from Madagascar is here this week, for example, and we know the role that China is beginning to play there. Countries in desperate need of economic support and security are turning to China, which gives China a huge degree of influence over their politics and full access to their resources.
I appreciate that this is a matter for FCDO, but one way in which the Government could make an immediate impact, if they wanted to, would be to reinstate our overseas aid commitment of 0.7% of GDP. The cut was a stark betrayal of the world’s poorest people, and may well have security consequences. Given our respective briefs, however, I will focus primarily on COP and what can be achieved there.
At COP, there should be a big focus on climate mitigation, renewed ambition when it comes to countries’ nationally determined contributions, and a focus on keeping 1.5° alive. Somebody said during a debate this week, I think, that 1.5° is on a life support machine, but we certainly must ensure that it is still very much the ambition. However, COP cannot be just about mitigation. We must also hear much more about adaptation, and how we can support the most climate-vulnerable countries as they try to make their nations more resilient. That could be about building sea walls; about natural defences against rising sea levels, such as planting mangroves; or about buildings that can better withstand extreme weather events.
There is a lot that we can do, but those countries need finance. In some cases, they are very poor countries that would normally be in receipt of aid, or they are tiny countries, for example the small island developing states. They tell me that they find it almost impossible to access climate finance. There are too many hurdles for them to jump over. In some cases, that is because they do not have the resources: they are tiny countries, and do not have the people to do all the research for the paperwork.
According to the UN, the 10 most environmentally fragile countries receive a mere 4.5% of all climate funding. That falls far behind other nations. It is not just about giving them climate finance; it is also about supporting them with their own initiatives. For example, the island and coastal states are increasingly looking at blue bonds. I know that Seychelles is doing so, as is—I think—Belize. As the centre of global finance, whether it is green finance or blue finance, the City of London could play a good role by helping those countries to access that money. That would be money from investors that are looking to do climate offsetting, for example. I am not that keen on carbon offsetting. It is not the solution to reaching 1.5°, but if there is an opportunity to get climate finance to climate-vulnerable countries, the UK ought to be playing a leading role.
We need to see progress at COP27 on loss and damage, too. There should be a formal mechanism in place so that those with the responsibility and capacity to pay for it do so. I was part of a meeting last week in Parliament with John Kerry, the US climate envoy. I asked him about the issue, and it was good to see that he thinks that it is important. He spoke about trying to bring forward progress on loss and damage, so that it is something we can deliver on at the 2023 COP, rather than perhaps something for 2024.
I also met the Foreign Minister of the Maldives recently, on Tuesday. That is an island state with a small population that covers a massive territory when we include the ocean around the islands. Seventy of its islands flooded this year. I wonder whether the Minister remembers when the then President Nasheed held a cabinet meeting underwater with scuba gear. I think he addressed the Conservative party conference around the same time. He was highlighting the fact that they will all be living under water if they are not supported. They are paying a price for a problem not of their own making.
The Foreign Minister spoke to me about how the country hopes to get to fully renewable energy by 2030. Although its own carbon footprint is absolutely minuscule, it is doing its bit. The islands are of course surrounded by salt water, but fresh water is really important, and the rain water is so polluted by the industrialisation of neighbouring India that it cannot be used. That demonstrates the interface between what the industrialised world is doing, and small countries such as the Maldives. They cannot sort out this issue by themselves. They need collective responsibility to be shown.
On finance, it was shocking to hear that the UK has not yet coughed up its contributions to the green climate fund and the adaptation fund—the $300 million promised in Glasgow. We currently hold the COP presidency. If we cannot meet our promises when we are meant to be showing leadership, we really cannot expect anybody else to do so. It is a total abdication of responsibility, as is the Prime Minister’s reluctance to attend COP27. He is going now, but it is pretty obvious he regards it as an inconvenience. I suspect he is only going because the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) is going and he does not want to be upstaged.
I hope that when he gets there, the Prime Minister rises to the challenge. It is crucial that, in the outgoing days of our presidency, we bring together countries to co-operate and that we show climate leadership. I hope that he has a bit of an epiphany as he flies out to Sharm El Sheikh and realises that he is there to do a serious job, and that he does it.
The hon. Lady is right in that respect, but it is important to acknowledge where we are. We have gone further and faster than any major economy on Earth in reducing our emissions while also leading the global conversation. If we do not acknowledge those points, we do not create a properly contextualised conversation. That is all I have sought today, but I entirely agree with her; my job from the Prime Minister is precisely about accelerating this. We need clean baseload, and that is why we are seeking to do more on nuclear. It is a great shame that the Opposition parties—with some exceptions—do not support that. It is interesting to see that if Scotland were to have 100% renewable energy, it would be reliant on the baseload provided by nuclear in England.
The Minister is talking about what the Government are doing on renewables. It was not clear, in his response to the shadow Climate Secretary at COP questions this week, what the current position is on the ban on onshore wind. We know that the new Prime Minister spoke against onshore wind during his unsuccessful leadership campaign. Can the Minister confirm if there is now a ban on onshore wind, or if it has been lifted?
Onshore wind is our single largest renewable source, providing about 14 GW altogether, 3 GW of which are in England. In order to deliver, we need all these energy sources, but we need to do this in a way that works with the grain of communities, whether that is through ground-mounted or roof-mounted solar, onshore or offshore wind, nuclear, hydrogen, carbon capture, utilisation and storage—without which it is hard to see how we can do industrial decarbonisation. We need all those things in order to deliver the targets, which, as the hon. Member for Bath suggested, are extremely challenging, but which we are on a firmer path toward than any other major economy on Earth.
It is great that the Americans have now come back to this agenda, and it is good that they passed the Inflation Reduction Act to promote it. I met with John Kerry recently, and discussed how we need to work co-operatively. In that context, at Glasgow we brought about the break- through agenda, looking sector by sector at collaborative ways to drive forward change across nations.
The UK, and indeed the world, as colleagues have said, is facing unprecedented challenges. I and the Government agree with the picture that has been painted. The food and energy crises, the war in Europe, inflation and recovery from the covid-19 pandemic are all part of the context, but in all the short-term pressures, around energy bills and the like, we must not lose our focus on climate change and we must recognise that it has an impact on human security, precisely as the propagators of the debate have suggested.
Extreme weather events are increasing in frequency and severity, and this summer we observed record-breaking temperatures, as other hon. Members have said, across Europe, the US and China, including the temperature rising above 40°C in this city for the first time. It was reported that the European Union saw 53,000 excess deaths in July as a result of the heat. As has been mentioned, the devastating floods in Pakistan affected 33 million people and a third of the country—an area about the size of Britain—was under water at one stage, which is truly horrifying.
These events serve to underscore the point that climate change and its impacts are being felt today, not in some distant future. It is driving food and water scarcity, displacement, migration and humanitarian and economic crises, while eroding resilience and reducing our capacity to respond. People, countries and regions will be impacted differently and over different timescales, but climate-related disruptions will increasingly strain international security arrangements globally, precisely as has been said today, causing a knock-on impact on human security worldwide in ways that we cannot always predict. Urgent action is needed to adapt and build the resilience of people, economies and ecosystems to current and future climate change and nature loss, and to the associated risks and impacts.
Climate change exacerbates existing vulnerabilities. It was acknowledged as a threat multiplier by the UN Security Council and the science is absolutely clear. A rapid reduction in greenhouse gas emissions and a significant scaling up of investment in climate change adaptation is needed to avert the most damaging impacts, but some of those impacts are already baked in, as has been said. That is why the integrated review identified tackling climate change and biodiversity loss as a leading priority over the coming decades—so it is in our national security strategy, in the form of the integrated review—and highlighted the inextricable links between climate change, nature and national security.
We were the first country to bring the security implications of climate issues to the UN Security Council in 2007, and the first to convene a leader-level debate on climate security in 2021. We have also convened workshops within NATO and we are seen as an international thought leader on the security implications of climate change—something to which hon. Members are contributing today. So we recognise and understand that human insecurity caused by climate change is a significant challenge.
The UK’s COP26 presidency helped us to continue our leadership in this area. COP27 starts on Monday in Egypt, and the Prime Minister’s attendance demonstrates the importance this Government attach to the climate agenda. An African COP, in a continent on the frontline of climate change, will rightly shine a light on the need to follow through and deliver on the commitments that have already been made, and scale up action on adaption and mitigation. COP26 secured many important commitments. Countries reaffirmed their commitment to keep 1.5°C alive, albeit on life support. Among many other important pledges, developed countries agreed at least to double their adaptation finance from 2019 levels by 2025. Those commitments must now be delivered.
To achieve human security in the face of climate change, the world must act. We need to reduce emissions faster than ever before. We need to seek to stop damage to nature and rebuild the biodiversity that is so central to human security, so we will continue to push for a landmark agreement to protect nature at COP15, the convention on biological diversity in Montreal in December—that is the other big COP, so we have COP27 and COP15. We need to enable countries and communities to avert and minimise losses and damages, while providing means to address impacts when they occur.
We estimate that, between April 2011 and March 2022, the UK’s international climate programmes directly supported 95 million people to adapt to the effects of climate change. We have pledged to double our international climate finance to £11.6 billion between 2021 and 2026, with the goal of mitigating climate change and supporting countries to adapt and build their resilience to its impacts, as well as protecting and restoring nature. Those investments directly support the improvement of human security.
We can and will do more. It is not just about the amount of money spent; the UK is making sure we spend smarter, plan more effective responses and utilise our world-class diplomatic service to support countries to be more resilient in the face of climate impacts. It is also about following through on our commitment to deliver net zero and nature action at home and internationally and to support the scaling up of adaptation globally as we build the legacy of our presidency and support Egypt to drive forward progress.
Hon. Members are right to challenge us to ensure that this takes place right across Government. I met the lead non-executive director of BEIS this afternoon, who leads on net zero. All Departments now have a non-executive member on their board with responsibility for net zero, because it is a matter for every Department. Through the Climate Action Implementation Committee and other Cabinet Sub-Committees, in my role as Minister for Energy and Climate Change I will be working to ensure that Ministers in every Department recognise the imperative to deliver net zero.
The Minister mentioned the Climate Action Implementation Committee, which came up in, I think, Prime Minister’s questions or perhaps COP questions. The Prime Minister is no longer chairing that Committee. The Chair of the Environmental Audit Committee, I think, asked who will chair it, but we did not get an answer. Can the Minister tell us who is in charge?
The Climate Action Implementation Committee has up to now been chaired by the COP26 President, my right hon. Friend the Member for Reading West. He will cease to be President of COP in a few days, of course, but he will lead our negotiations through Sharm El Sheikh. It will be up to the Prime Minister, I guess, but I do not know. It is quite likely that it might be the Minister for Energy and Climate Change—I do not know. It will be a Minister who leads that Committee, which reviews carbon budgets, gets presentations from the Climate Change Committee and others and ensures that we stay on track, as we must if we are to deliver that.
Our agenda is not just about avoiding harm; it is strongly in our national interest. By leaning in ahead of the rest of the world, by cutting our emissions more than many others, and by investing in renewables in a way that has led Europe, we can create industrial capability that we can then export to the rest of the world. We genuinely can do the right thing by the environment, build a more prosperous and reindustrialised nation—in some parts of the country—and serve the interests of humanity and the planet as a whole, while delivering greater economic security and prosperity at home. That is very much what we are focused on; it is all about accelerating what we are doing in order to enable that. That will be my job and those of my officials.
The transition to a net zero economy presents job and export opportunities. McKinsey estimates that the low-carbon transition could present a £1 trillion opportunity for UK business by 2030; it is genuinely enormous. At Glasgow, we took steps to make London the first net-zero aligned financial centre. There are opportunities for the City of London and our industry in things such as hydrogen and carbon capture. Up in the north-west and right across the country, there is an appetite to see that happen. Taking a lead will drive prosperity here in the UK and globally, as global markets transform.
International action enables us to meet our own net zero target more efficiently and cost-effectively, while positioning ourselves to take advantage of the global economic opportunities that arise. If we engineer it right, we can come out not only with a net zero, emissions-free energy system, but one that is internationally competitive because we have helped to lead the global conversation and others are following us. We can use our natural resources—for example, the North sea basin—not just to get out the oil and gas for now. With ever higher environmental standards around production, that is the right thing to do while its production declines. We can also use it for offshore wind, storage of CCUS, and storage of hydrogen, which might be part of that whole hydrogen story. We have a European resource here by which we can help to serve the whole continent of Europe in a way that helps with the net zero challenge, and also helps with prosperity, not least in areas that otherwise would be left behind, because levelling up remains a central mission for us.
COP27—we will hand over the presidency next week, a year on from the brilliant COP26 hosted in Glasgow—is an opportunity for the world to come together to address climate change. With the Prime Minister at the helm and leading our delegation, the UK will be front and centre in driving forward meaningful action, without which the security of all humanity is at stake. I entirely agree with colleagues across the Chamber who have given such powerful speeches today in support of that positive objective.