Air Quality (Domestic Solid Fuels Standards) (England) Regulations 2020

Lord Goldsmith of Richmond Park Excerpts

Tuesday 29th September 2020 Lords Chamber

Moved by

[Lord Goldsmith of Richmond Park]

That the draft Regulations laid before the House on 21 July be approved.

Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee.

[The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con) [V]]

My Lords, the instrument before you includes the measures to phase out the supply of the most polluting fuels used in the home. These fuels are traditional house coal and wet wood, or wood with a moisture content of more than 20% when sold in units under two cubic metres. It also introduces sulphur and smoke emission limits for manufactured solid fuels. These measures will come into force in a staged process from 1 May 2021 to 2023.

As noble Lords will know, the Government have made a commitment in the clean air strategy to tackle harmful emissions from domestic burning and to improve air quality. In February, the Government published national statistics on emissions of air pollutants in the UK. It is clear from these statistics that domestic burning is a major source of fine particulate matter emissions. These emissions can have a considerable impact on human health. The tiny particles can enter the bloodstream and internal organs, leading to long-term illness and reduced life expectancy, mainly due to cardiovascular and respiratory diseases and lung cancer. Indeed, the World Health Organization has identified fine particulate matter as the most damaging pollutant in its impact on human health. Given this, the Government consider it vital to take action to protect the health of householders and their neighbours.

We know, of course, that domestic burning is not the only source of fine particulate matter emissions. However, while we have secured a reduction in the amount of emissions from transport and industry, emissions from domestic burning are increasing. The clean air strategy states that we should be looking beyond transport and industry and we should now take steps to deal with pollution from other sources including the pollution caused by heating our homes. The instrument before us will make a substantial contribution towards the reduction of fine particulate matter emissions, which are causing considerable harm.

The Government also recognise that better management and restoration of our peat-lands is needed. We have always been clear of the need to phase out the rotational burning of protected blanket bog to conserve these vulnerable habitats; we are now looking at how legislation could achieve this.

I want to set out in broad terms what the instrument before us will do and make clear what it will not do. The regulations introduce measures which will apply to domestic burning only. The measures will not apply to businesses or the heritage sector. The regulations do not ban domestic burning. We are fully aware that many people enjoy using open fires and wood- burning stoves; we are not looking to stop them. Instead, we are looking for people to move from using more polluting fuels to less polluting fuels. That is why we are phasing out the sale of traditional house coal and wet wood sold in smaller volumes, and requiring that all manufactured solid fuels meet sulphur and smoke emission limits. These regulations will enable people to make informed choices and source cleaner fuels, thereby protecting the health of their families and neighbours.

I will now set out in more detail why it is necessary to regulate the supply of each of the fuels regulated through this legislation—that is, traditional house coal, wet wood and manufactured solid fuels. The amount of fine particulate matter emitted from the domestic burning of coal is less than that emitted by burning wood. However, the Government have taken into account evidence indicating the level of harm that the emissions from coal can cause. The World Health Organization’s International Agency for Research on Cancer has advised that the smoke from burning coal is carcinogenic. The agency has also highlighted the harmful elements and compounds which are released when coal is burned. These include arsenic, mercury, lead, fluorine and selenium. It is government policy to reduce people’s exposure to these more harmful pollutants, as set out in the clean air strategy. That is why we need to regulate the supply of coal used in the domestic setting. These regulations will encourage people to switch from traditional house coal to smokeless coal and low-sulphur manufactured solid fuels.

The regulations also tackle the domestic burning of wet wood. Burning this type of wood releases significantly more fine particulate matter, smoke and soot than burning wood which has been seasoned. Our estimates indicate that 24%—or nearly a quarter—of all the wood burned domestically is burned at least partly wet. We understand that wood burned in smaller units is more likely to be bought for immediate use. Under these regulations, wood sold in smaller units must have a moisture content of 20% or less. It will be easy to tell whether wood meets the new requirements. To be sold in these smaller units, the wood will need to be certified and bear a logo indicating that this is the case.

The regulations encourage people to switch from traditional house coal to manufactured solid fuels. We want to avoid unintended consequences arising from this switch in fuels, and we want industry to manufacture these solid fuels to the cleanest specifications. Unlike coal, the amount of sulphur and smoke emitted by these fuels can be controlled. That is why these regulations extend the sulphur and smoke emission limits which currently apply in smoke control areas across England. This will mean that manufactured solid fuels sold throughout England will need to meet a 2% sulphur limit and emit less than 5 grams of smoke per hour. Again, it will be easy to tell whether a fuel meets these requirements, as all fuels of this type will need to bear a logo showing that they have been tested and certified.

The Government are aware of concerns that these regulations could have a negative impact on people who are reliant on coal and are in fuel poverty. We have taken these concerns very seriously, and we want people in fuel poverty to share in the benefits of this legislation. We consider that they should be protected from the harmful effects of more polluting fuels just as much as anyone else. We have commissioned research which indicates that they may also be better off financially, as manufactured solid fuels have been shown to be cheaper than coal when energy efficiency is taken into account.

We recognise that vulnerable people who are used to burning coal will need some time to adjust and make the switch to appropriate alternative fuels. That is why these regulations include a transitional period when approved coal merchants will be able to sell loose coal direct to their customers. This will run until 1 May 2023. During the transition period, these coal merchants will work with their customers to inform them and help them find appropriate, cost-effective fuels which are far better for their health.

We have engaged with colleagues in the Department for Business, Energy and Industrial Strategy on the measures they are taking forward to tackle fuel poverty such as the updated fuel poverty strategy, which will be published later this year. BEIS also runs the national concessionary fuel scheme. Under these regulations, everyone receiving fuel as part of the scheme will continue to be entitled to it. Over 90% of recipients will not need to make any adjustment as they are already receiving fuel which complies with the new requirements. We will work through approved coal merchants so that others can move to compliant fuels which meet their needs. These will be available at no extra cost.

These regulations give small wood producers an extra year to comply with the new requirements. The suppliers qualifying for this transitional period are those who produce less than 600 cubic metres a year. We understand that these suppliers may struggle to meet the 20% moisture requirement immediately; this period gives them time to season their wood to the required level or to consider changes to their business model.

I am aware that there has been some concern about the impact these regulations may have on the heritage rail sector. As I said earlier, this legislation applies to domestic burning only. It will not apply to heritage rail. It may have some indirect impact on how this sector sources its coal, but the regulations give time for the sector to make any necessary adjustments. We will make guidance available to the manufacturers, distributors and suppliers of fuels affected by this legislation so that they are aware of the new requirements. We will also provide guidance for local authorities so that their enforcement officers understand their role in enforcing this legislation.

In summary, the instrument before us takes forward a key component of the clean air strategy, helping us to meet our national and international obligations to reduce polluting emissions, and dovetails with measures which the Environment Bill will deliver. The regulations will make sure that householders are able to make informed choices and can protect themselves and their families from the effects of the most polluting fuels. The measures in these regulations will deliver benefits to the environment and to the health of our citizens. They will also reduce the burden that illness caused by air pollution places on the National Health Service. I beg to move.

--- Later in debate ---

[Lord Goldsmith of Richmond Park (Con) [V]]

My Lords, I thank noble Lords who have contributed to this debate. The instrument takes forward a key component of the clean air strategy, to help us meet our national and international obligations to reduce pollution, and it demonstrates this Government’s commitment to delivering environmental benefits. The measures it contains will improve air quality and deliver benefits that improve the health of this country’s citizens and the quality of their lives. I will attempt to address in order the questions and comments put to me by noble Lords.

The noble Lord, Lord Mann, raised the prospect of unforeseen consequences, citing the example of the potential criminalisation of householders. More pertinently, he asked whether householders could find themselves being criminalised. This SI does not result in householders being criminalised; this is about the trade. The noble Lord’s logical next question was about the consequence for entrepreneurial individuals opting for a less formal, or even non-market, route to providing fuels to householders, who would not then get caught up in this legislation. He is, of course, right up to a point. Legislation rarely answers all the questions that are put to it; no legislation is perfect. We cannot stop people burning foraged wood and waste, but we are clear that burning these materials is highly damaging to their health and to that of others in the community. In addition, it is worth noting and remembering that people burning coal and switching to manufactured solid fuels could—and likely would—save money, because they would be burning a more efficient fuel than coal.

The noble Lord also asked about incentives around the uptake of clean energy and to encourage greater levels of energy efficiency. He is absolutely right; incentives are central. The payback on energy efficiency is already there. We know that money invested in energy efficiency has a faster payback than that invested in any form of new energy. The best power plant is the one that is not needed as a consequence of strategic investment in energy efficiency. That has always been, and remains, the case. My colleagues in BEIS are looking hard at the kinds of incentives that are going to be needed to see a step change in the volume and speed of energy efficiency that needs to happen around the country. I very much take the noble Lord’s point that such incentives should be targeted at fuel-poor, low-income and elderly householders.

On a broader point, the market is changing rapidly. Even in the last few years, the costs of renewable energy across the board have come down far faster than anyone anticipated. No one anticipated that, in the very early 2020s, we would be on the cusp of offshore wind being able to exist without subsidy. Most people put their assessments and predictions at around 2030-plus, but we are now right on the cusp of offshore wind being viable without subsidy. The cost of solar has come down by around 90% in the 12 years since the credit crunch. Last year, more money by far was invested in new renewable technology than in fossil fuels.

A final, interesting point on that is that coal use in the United States has declined far faster under President Trump, despite his being wildly in favour of coal, than was the case under President Obama, who was more interested in tackling climate change. This just shows that the market is racing ahead of politics, and the cost ratio is changing so dramatically that the Government’s job is to do what they can to accelerate those trends. The solution is easily within our grasp now, in terms of both energy efficiency and renewable energy.

The noble Baroness, Lady Bakewell, began by painting a vivid picture of the smogs that she was used to in an earlier part of her life. Although it is very hard to capture precise numbers of how many people’s lives were brought to a premature end as a consequence of air pollution, it is worth noting that the figures we have today are not dissimilar to those that existed at the time of the great smogs. The difference is that the pollution that damages people today is largely invisible and does not therefore have the same stark effect as the smogs which she described so well.

The noble Baroness also mentioned the importance of wood-burners to many people, including herself. I add myself to that list; I too use a wood-burner. However, in doing so she reinforced the need for this legislation. She made the case very well for a shift towards a cleaner fuel for those wood-burners. She raised the broader issue of air quality and zoned in on PM2.5, as did the noble Baroness, Lady Jones. This is just one measure—one tool—that the Government are using to tackle air quality. We certainly would not pretend that this SI is going to crack the problem of environmental air pollution. I will come to the specific point of PM2.5 in a moment.

The noble Baroness, Lady Bakewell, asked about the free-mining tradition and welcomed the fact that an exemption exists for those living in the Forest of Dean. Nothing in this SI changes the arrangements they have. Their rights remain protected. There is no difference; it has no impact. So they can, I hope, rest easy. She also asked about households being fined. Householders are not going to be fined. The target of this SI is the trader. She also asked about enforcement. Local authority enforcement of this SI is meant to be light-touch. It will involve checks at retail outlets that fuels being sold comply with the legislation, such as by carrying the correct certification number and logo and being correctly stored. We are looking closely at how we can best support local authorities in their enforcement of the regulations and will be issuing guidance on that very soon. This is alongside measures in the Environment Bill, which I will come to in a moment, which will also make it easier for local authorities to tackle air pollution in their areas.

The noble Baroness’s last point related to the logo. Wood and manufactured solid fuels that meet the legislative requirements will be identifiable by the same logo and certification number on the product packaging. Details about the logo will be made public as soon as the legislation and certification body are in place, so will come back to the House when appropriate. We intend that the same logo will be used for both manufactured solid fuels and wood, to provide clarity for consumers. We do not want to overcomplicate what should be a fairly simple measure.

Finally, I would like to come to some of the questions raised by the noble Baroness, Lady Jones. The failure to implement this legislation is most likely to result, as she says, in the UK failing to meet its legally binding targets for 2020, and possibly 2030, on fine particulate matter—PM2.5s, raised earlier by the other noble Baroness. Therefore, there is a consequence of this legislation not going through, and I am therefore very grateful to her and other noble Lords for supporting this legislation.

But she is also right to say that there is a big gap in terms of meeting our legal obligations. To that I say, yes, that is correct; there is much that the Government need to be doing, working with business and local authorities and other departments of government—not least the Department for Transport—to tackle the issues of air quality that are damaging the health, in some respects, of people in this country. This is just one of those measures; we are not pretending this a catch-all solution. But we are at the forefront of reducing industrial pollution in this country. We are currently consulting on bringing forward the end of the sale of new petrol and diesel vehicles to 2035, or even earlier if a faster transition is feasible. We are looking closely at that now and working closely with the industry. The Environment Bill delivers key parts of the clean air strategy and is the first environment Bill in over 20 years.

The noble Baroness asked when it is going to continue its passage through Parliament. I am extremely sorry; I wish I could provide a detailed answer, but I am not able to. But I am absolutely aware that timing is an issue and that this extraordinarily important piece of legislation needs to find its way through both Houses as quickly, efficiently and effectively as possible. I make this case at every opportunity, as do my colleagues in the Department for Environment.

The “Air quality” chapter in the Environment Bill makes a clear commitment to a certain ambitious air quality target that goes beyond EU requirements and delivers significant health benefits. The Environment Bill will also enable the Government to recall the engines of non-road mobile machinery and related emission components that are non-compliant with the environmental standards they were approved to meet, and more besides. The Environment Bill really does help us deliver on and achieve the ambitions within the clean air strategy.

The final—I think—question I was asked related again to the issue of fuel poverty. I reiterate that a number of concerns were raised during the consultation process that led to this situation today: to us being able to present the SI. We took those concerns, and we continue to take those concerns, extremely seriously. We want people in fuel poverty to be able to benefit from this legislation, just as anyone else can. There is no reason why those living in fuel poverty should be exposed to more dangerous, more polluting fuels than anyone else. Indeed, were that to be the outcome of this legislation, I would say that the legislation had failed. It is very important the benefits are spread evenly and equally.

We have commissioned research that, as I said in my opening remarks, tells us that once they have made the transition to cleaner fuels, they should be better off financially because of the efficiency with which these fuels burn. It is worth taking that into account. At every step of the way, we are determined to ensure that people are not left worse off, particularly those people who are living in fuel poverty today. We are absolutely determined that this legislation will help, rather than hinder or harm, people in vulnerable households, and we will continue to work with stakeholders to ensure that that is the case.

As I have outlined, the regulations phase out the supply of the most polluting fuels used for domestic burning. The measures they contain will enable people to enjoy their wood-burning stoves and open fires, safe in the knowledge that they are using cleaner fuels which will protect the health of their families and neighbours, as well as the wider environment. I will close my remarks at this point and thank noble Lords for their contributions and their support today.

Motion agreed.