Protecting the Arctic

Lord Goldsmith of Richmond Park Excerpts

Thursday 7th February 2013 Westminster Hall

[Zac Goldsmith (Richmond Park) (Con)]

It is a pleasure to speak under your chairmanship, Mr Sheridan. I will give a very short speech, which I had not intended to make, but I want to pay tribute to the hon. Member for Stoke-on-Trent North (Joan Walley) who chairs the Environmental Audit Committee, oversaw the report and has commanded the respect of the entire Committee. She is a stellar Chair in my view.

I do not want to repeat the points that have already been made in the excellent opening remarks, other than to echo the importance of keeping in mind climate change. My hon. Friend the Member for Stroud (Neil Carmichael) made the point well, and we have just heard about the importance of preserving fish stocks. There are many reasons that ought to be obvious, so I will not go into them.

I want to make one point. Last year, in response to questions from the Environmental Audit Committee, Shell’s head of emergency response admitted that the company had not yet costed a clean-up operation in the Arctic, leaving shareholders effectively exposed to potentially huge financial losses. As we know, a similar attitude from BP before the Deepwater Horizon disaster ended up costing the company in the region of $40 billion.

Given the huge risks, there is already an emerging view from a wide variety of sources, both in the oil industry, for example, most recently the French oil company Total, and the financial industry that supports oil industry activity, including Crédit Agricole, that oil exploration in the Arctic is too risky—effectively, that it is not supportable.

I therefore urge the Minister to take up one particularly important recommendation—I would prefer him to take up all the recommendations—to use this country’s diplomatic clout to push for Arctic states to set a much higher and preferably unlimited financial liability regime for oil and gas exploration in their national jurisdictions. That is in line with the Government’s approach to the Antarctic region, and is the bare minimum position that this country should be taking.

--- Later in debate ---

[Mr Swire]

I repeat the salient point that I think the hon. Gentleman is trying to get at: we consider that the treaty applies to the maritime zones generated by Svalbard, but Norway disagrees.

My hon. Friend the Member for Richmond Park asked about oil spill falls. Of course, we all have sympathy; the idea of an oil spillage occurring in that part of the world—I think it has happened there—is absolutely abhorrent and has terrifying consequences for the environment. However, determining how to ensure that those liable in the case of oil spills meet their liabilities, as he will well know, is a matter for the relevant countries. It is a matter for those jurisdictions to determine both the scope of such liabilities and the levels of compensation and penalties payable in the event of a spill.

[Zac Goldsmith]

I recognise the limits of our international clout in respect of that issue, but it is nevertheless possible and reasonable to imagine the British Government adopting as their formal position the view that there should be, preferably, unlimited liability in the event of an accident. I am not suggesting that we can push a button and make it happen, but it could certainly be our position, formally and on the record.

[Mr Swire]

I do not think my hon. Friend would be arguing for that, seeing as the Government are limited in their jurisdiction in the area, and seeing as they do not own any oil companies exploring in the area. For the British Government to make a unilateral proclamation about unlimited liability in that area would be seen by some as somewhat condescending and interfering. However, clearly, environmental protection should be at the forefront. That is why a lot of British companies—in terms of deep sea drilling, and the kind of measures and safety measures that we have learnt over years in the North sea—could have a very real application to safe drilling in that sensitive part of the world.

The hon. Member for Bristol East asked a technical question about the threat of methane released from permafrost. Continued warming of Arctic land masses will lead to a large-scale melting of permafrost, which may well release large quantities of methane, a potent greenhouse gas. Although the magnitude of any release is uncertain, it has potential to significantly accelerate global warming. While the amount of methane currently being released is small compared with other sources, that contained below permafrost and land ice is thought to be huge. The Arctic Council’s Arctic Monitoring and Assessment Programme is looking at methane release in the Arctic as part of its Task Force on Short-Lived Climate Forcers.

The hon. Lady also asked how serious black carbon is in the Arctic. It is definitely an issue for consideration. The United Nations Environment Programme report into black carbon produced last year concluded that emissions of black carbon particles into the atmosphere can have a significant impact on human health and both direct and indirect climate impacts. For example, some emissions can be transported long distances and deposited as soot on Arctic ice or snow, which decreases surface reflectivity—albedo—and increases ice melt because of the additional warming effect. The Arctic Council’s AMAP produced a report in November 2011 on the effects of black carbon and has a task force that is following up that work. It is currently drawing up its work programme.

The hon. Lady also asked about the report in The Guardian, the issue of higher standards for drilling in the Arctic, and the allegation in that report that we are in some way undermining the EU’s attempts to apply them in our own backyard. All I will say is that she should not believe everything she reads in the papers, let alone The Guardian. However, negotiations are continuing with the EU on the proposed directive to regulate offshore oil and gas activities, and the UK is working to ensure that the highest levels of safety and environmental protection are upheld in an effective manner. It is worth saying that the UK already has a robust regime in place to regulate offshore oil and gas. Environmental safety is paramount, and offshore operations are only permitted in the UK where there is a thorough and comprehensive oil spill response plan in place.

The hon. Lady asked what more we are doing to move forward marine protection issues at the United Nations. I will write to her on that point and provide an update. She also asked about the Arctic policy framework. We will produce the Arctic policy framework in the summer of 2013. That will be a dynamic process involving interested stakeholders, and it will outline the Government’s policy and approach in more detail.

The hon. Lady also asked how the UK’s influence in the Arctic Council would be affected if observer status is granted to applicant countries. We do not believe that the UK’s influence will be impacted. Most of our influence on the council comes through scientific engagement with the working groups. We will continue to provide that, regardless of the status of other countries with respect to the Arctic Council.