Climate Change: Targets

Lord Mountevans Excerpts

Thursday 27th May 2021 Grand Committee

[Lord Mountevans (CB) [V]]

My Lords, I add my congratulations to those offered to the noble Baroness, Lady Sheehan, on securing this important debate. There is no greater challenge facing humanity than containing and reducing global warming. I want to focus the lens on maritime, an area of significant challenge but one of great opportunity for the UK. Before I start, I pay tribute to the Minister, who kindly made time to meet me and some maritime colleagues last year—here, I should declare my unremunerated maritime interests as declared in the register promoting the UK’s maritime industries.

Maritime is now, very properly, being brought into government legislative requirements. The industry is committed to playing its part. Although it can be said that maritime is a lesser sinner in terms of emissions per tonne mile of freight moved, due to the scale of the industry, it has been estimated that it accounts for 2.5% to 3% of global emissions. It is early days, and the technology for zero-carbon main engines has not yet been commercialised. An additional challenge is to lay on power at ports to supply ships that are alongside with electricity.

So far, the Government have awarded £3 million to the maritime research and innovation institute and have set up a £20 million clean maritime demonstration competition, which is currently open. These initiatives are of course welcome to the industry. I should also mention one significant example of government support: £30 million from BEIS for a Strength in Places bid from Artemis in Belfast to build high-tech ferries. This is not specifically a green investment, but I believe there will be a green beneficial outcome.

These investments represent a start, but they are small and must be regarded as only a start, and they are less than those of competitor states. If we are to be successful in meaningfully reducing carbon output from shipping, a fundamental problem that we face is that vessel charterers and users are unlikely to pay for expensive new ships with as yet untried technologies, with owners therefore discouraged from investing. Carbon pricing is the elephant in the room. The industry needs urgently to know what form carbon pricing in the UK will take. It is essential that any funds realised from the maritime sector are reinvested in shipping and maritime.

Does the Minister agree that, with the right policy framework, Britain can attract international owners as well as orders for the shipyards that government and all of us are so keen should flourish?