Net-zero Test for New Policies

Lord Oates Excerpts

Tuesday 11th January 2022 Lords Chamber

[Lord Callanan (Con)]

I thank the noble Baroness, but the reason my Answer was very similar to a few months ago was that the Question was very similar to the one she asked me a few months ago. We have taken new approaches to embed net zero in spending decisions, including requiring departments to include the greenhouse gas emissions of their spending review bids and their impact on meeting carbon budgets and net zero. There is a huge amount of co-ordination taking place across government and between this Government and the devolved Administrations in helping us to meet our goals.

[Lord Oates (LD)]

Does the Minister agree with the same letter where it says that we must

“ensure the competitiveness of UK businesses is not disadvantaged by imports that do not have the same carbon costs”?

If so, why is it that the only thing the Treasury’s Net Zero Review has to say in the way of action on carbon leakage is that

“a case for conducting a formal call for evidence may emerge.”

Is that not a woefully complacent approach which puts at risk British industry and British jobs?

[Lord Callanan (Con)]

I agree with the noble Lord that the competitiveness of UK industry is extremely important. The question he is asking is effectively about the carbon border adjustment mechanism which the EU and others are considering. I am sure that the noble Lord would be the first to accept that this is a complicated and difficult policy area. It cuts across various WTO and international trade commitments. I can see in principle the case for what he is saying, but it is a complicated area.