Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021

Lord Grantchester Excerpts

Tuesday 13th April 2021 Grand Committee

[Lord Grantchester (Lab)]

I add my thanks to the Minister for his introduction to the SI before the Committee today. As he said, the Kyoto Protocol and its mechanisms have been crucial in setting up co-ordinated international regimes to combat climate change. The treaty agreement has focused on green development through sustainable technology and investment. It has helped countries to meet emission reductions targets, removing carbon from the atmosphere cost-effectively, and has certified trading through registries to encourage industries and companies towards sustainability.

This statutory instrument continues the necessary arrangements to set up a complementary UK protocol registry following the UK leaving the EU emissions trading scheme, and I approve of it. However, as others have commented, the Government have not yet got the UK registry operational in time for the end of the transition period. The UK Kyoto Protocol registry will not become available until May this year, albeit that that is now only a few weeks away. Can the Minister confirm that everything is on track and that the trading of KP units will begin in June this year? Granted that priority has been given to the UK emissions trading scheme to be operational at the end of the transitional period in January, can the Minister confirm that this scheme has been embedded successfully and that the preparatory work undertaken so that the necessary international connectivities can proceed under this protocol will now proceed smoothly?

The Secondary Legislation Scrutiny Committee highlighted in its 48th report the possible impacts on businesses. Interestingly, neither the department nor the Environment Agency has received complaints from businesses about interruptions or costs as a consequence of this failure to maintain continuity with the EU registry. As the noble Lord, Lord Bourne, has asked, will any issues become more pressing by June, when businesses bear the costs? While being reassured that any damage may prove to be minimal, does the Minister expect any consequences at all? Perhaps he could comment further on the point that the UK KP registry serves as a distinct and separate policy from the UK ETS registry. Along with the noble Lord, Lord Teverson, I think that an understanding of these technicalities would be most helpful.

At this point in the process of establishing the UK regime, the future objectives and priorities of the scheme closely resemble those of the EU. Does the Minister’s department have any variations in mind that might enhance the UK’s path towards net zero? Any changes to the scheme, including calculations on emissions, must have only that intention and direction in mind in order to avoid the offshoring of emissions.

We are also somewhat in the dark regarding the Government’s intentions. The weakness of this statutory instrument is that it is silent on all this. How similar to and how compatible will it be with the EU scheme? Indeed, what links may there be at all? As my noble friend Lord Whitty asked, will the UK scheme address carbon demands within the UK economy or merely reflect production? Will it add to the focus on the need for more attention to methane emissions, as the noble Lord, Lord Redesdale, asked? There are also issues about possible competitive distortions in state aid to certain industries. The greater challenge is halting the relentless increase in global warming, as emphasised by the noble Lord, Lord Howell. It may well be a challenge to the Minister, but if he could reveal anything at all, that would be most helpful.