Paying Polluters: UN Report

Lord Browne of Ladyton Excerpts

Monday 22nd April 2024 Lords Chamber

Asked by

[Lord Browne of Ladyton]

To ask His Majesty’s Government what assessment they have made of the United Nations Special Rapporteur report on Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate and environment action and human rights, published on 13 July 2023.

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

My Lords, investor-state dispute settlement mechanisms offer investors an independent means of legal redress to seek compensation following a breach of international investment agreements. The report notes that, outside the UK, investors have brought ISDS claims against climate change measures; however, the UK has not faced a successful ISDS claim. On 22 February we announced withdrawal from the energy charter treaty, to avoid remaining in a treaty not aligned with our energy security and net-zero ambitions.

[Lord Browne of Ladyton (Lab)]

My Lords, on 7 December we had a debate on a Motion moved by the noble Baroness, Lady Hooper, on Latin America. In the context of our trade deal with Colombia, my friend, the noble Baroness, Lady Coussins, raised the issue of the inherent manifold injustices of the ISDS. The Minister responding to the debate, the noble Lord, Lord Ahmad, wrote in response:

“ISDS is an effective means of resolving … disputes”,


and the Government are

“content with the standard of protection”

provided. So it is surprising that none of the free trade deals concluded since Brexit contains an ISDS—and the absence of one is an explicit goal of our negotiations for a UK-Canada deal. What is the Government’s view of an ISDS as a means of resolving disputes? If they have shifted their view, what are they doing to ensure that their new approach is reflected in trade with Colombia?

[Lord Callanan (Con)]

This is a complicated area. Of course, these treaties are bilateral, and they also help to protect the investments of UK companies investing in other overseas territories. However, the UK’s investment policy is designed to protect the UK’s right to regulate in the public interest, and so far we have been successful in that, in that we have not seen any successful claims against us.

Biomass: Power Generation

Lord Browne of Ladyton Excerpts

Wednesday 13th March 2024 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a good point. It is not just Drax; there are many commercial and domestic biomass boilers as well that I am sure would be happy to use sustainable British-produced biomass.

[Lord Browne of Ladyton (Lab)]

My Lords, when biomass subsidies were initially awarded, was it envisaged that the Drax power station would receive more than £2 million a day in biomass subsidies, emit about 12 million tonnes of CO₂ a year, and, last year, take more than 40,000 tonnes of wood from old-growth forests in British Columbia—a practice, incidentally, which Drax previously decried in its own sustainability reports? If not, what criteria will the Minister’s department use when a decision is made about whether subsidies should be extended beyond 2027?

[Lord Callanan (Con)]

The noble Lord posed a number of different questions. First, as I said, sustainability criteria are extremely strict. They are policed by Ofgem. I have spoken to the chief executive of Ofgem about this—it is investigating the allegations. It is Ofgem’s job to uphold the rules and it will not hesitate to take action if the rules are breached. We have some strict sustainability criteria, and it is important that Drax and every other producer abides by those rules. Drax is responsible for about 5% of the UK’s electricity generation, and noble Lords should be aware that this is important for keeping the lights on, and for British energy security.

Climate: Behaviour Change (Environment and Climate Change Committee Report)

Lord Browne of Ladyton Excerpts

Wednesday 7th June 2023 Grand Committee

[Lord Browne of Ladyton (Lab)]

My Lords, it was a pleasure to serve on the Environment and Climate Change Committee for close to two years, during which time the evidence was laid and this report was published. It was a distinct pleasure to serve under the excellent, able and inclusive chairmanship of the noble Baroness, Lady Parminter. It was also a pleasure to work with the excellent staff and advisers who we had in this inquiry—too many to name; I am conscious of my time.

I must say that, having looked at the list of possible speakers, I had hoped that I would not be in the position of having to follow the noble Lord, Lord Lilley. We had very good-natured and interesting debates between us in the course of this inquiry. I really wanted to make another speech, but I cannot resist the temptation. Over a lot of our time together on the committee, I tried to persuade the noble Lord that, for example, my family’s decision to change from a petrol-driven car to an electric vehicle was a lifestyle change, and one whose consequences caused us to make other lifestyle changes. Because of the limited range of the vehicle, we changed the way in which we drove it—indeed, whether we drove it at all. We made distinct changes to the way in which we travelled. I cannot guarantee that I will not make any more than two flights in a year, but I have not yet made two this year. I travel less by carbon-fuelled vehicles and more, happily, by public transport, which is electrified, including trains where I live. These changes, like those of many of my friends and colleagues, have encouraged other lifestyle changes. For example, because we have solar panels on our roof, we make hay while the sun shines. We change the time at which we do certain things and therefore try to use only carbon-free energy if we can.

I could never convince the noble Lord that that was lifestyle change, that the technology was driving lifestyle change and that people’s decision to adopt this technology was not so that they could continue to live as they had but to change and live a more carbon-free lifestyle. I do not think that I ever will convince him. That is, I think, why he was in a minority of one in relation to the point that he made. The last time that we debated this issue, the noble Lord made an almost-identical speech. I was pleased to see that it got quite good coverage in certain media the next day; I suspect they may have been briefed in anticipation and I hope that they have been again today, so that this can be published. The fact of the matter is that, in the committee, all but one of us agreed that the report was a reflection of the evidence that we had heard and that the statistics that we quoted—and shared by the Government—reflected the reality.

I am almost out of time, but I had hoped to make one point, which I will make by referring to another report. We have already heard of the Chris Skidmore independent review, which the noble Baroness, Lady Parminter, referred to. There is an important conclusion in that report, which I came to in the course of listening to the evidence and being on this inquiry. The review by Chris Skidmore echoes a point that was made in the committee’s report about local action being the key to the delivery of net zero. His review highlighted:

“Taking a more locally led, place-based approach can deliver a net zero transition with more local support, better tailoring to local needs, and bring economic and social benefits”.


Having heard the overwhelming evidence that I did in this context, I have come to the conclusion that the future for net zero relies on activating our communities to work in that way to challenge these issues, that we should do this with the support of civic society and local government, and that the Government should enable that.

Heat and Buildings Strategy: Gas Boilers

Lord Browne of Ladyton Excerpts

Tuesday 28th February 2023 Lords Chamber

[Lord Callanan (Con)]

I partly agree with my noble friend. It is a good thing that the rectory was insulated anyway, whatever kind of heating was installed in it. Heat pumps obviously work best in well-insulated properties, but you can now get high-temperature heat pumps that work in all scenarios. I agree with my noble friend that, as I said earlier, there is a multiplicity of property types and different technologies will work in different properties.

[Lord Browne of Ladyton (Lab)]

My Lords, from the evidence that it received, the Environment and Climate Change Committee, of which I was a member at the time, concluded in its inquiry on the boiler upgrade scheme that a shortage of relevant skills is a major barrier to the take-up of the boiler upgrade scheme and low-carbon heat. The microgeneration certification scheme, which certifies whether companies are capable of fitting renewable heat products, gave evidence to the committee that the three-year duration of the scheme and

“the delayed release of the market-based mechanism to support heat pump growth”

did not

“provide sufficient long-term certainty to grow the sector and encourage retraining.”

Despite this investment in training, does the Minister agree with the MCS that a long-term policy of decadal length is required to create a stable policy landscape to encourage investment in training? If he does, what do the Government intend to do about that?

[Lord Callanan (Con)]

The noble Lord will be aware that the next Question is on the boiler upgrade scheme; his question might perhaps have been more appropriate there, but I agree with him. The Answer I gave earlier shows what we are doing to invest in upgrading existing skills. It is a long-term job over decades, as the MCS correctly said. I was at a reception with the MCS last week, talking to it about this very issue.