Investments: Environmental, Social and Governance Criteria

Debate between Lord Oates and Baroness Penn

Wednesday 2nd March 2022 Lords Chamber

[Baroness Penn (Con)]

The noble Baroness is absolutely right. That is why the UK is developing an economy-wide regime for ESG disclosure, focusing in the first instance on those requirements related to climate change. Alongside that, the FCA is creating a consumer-facing label, so that consumers seeking to invest in ESG products know what they are investing in and that it meets the high standards that they would expect.

[Lord Oates (LD)]

My Lords, is the Minister aware of the comments made yesterday by the chair of the US Securities and Exchange Commission? He said of the ESG funds:

“When I think about these questions, I’m reminded of walking down the aisle of a grocery store and seeing a product like fat-free milk … in that case you can see objectives figures like grams of fat … Investors should be able to drill down and see the ingredients underlying these funds.”


What activity is the FCA taking to ensure that such detail is provided? Is there co-ordination with the Securities and Exchange Commission in the United States?

[Baroness Penn (Con)]

On the point about co-operation with the United States, I will have to check and write to the noble Lord. On the FCA, in addition to developing this consumer-facing label so that people can, with transparency, understand what they are investing in, it is also looking at the question of regulating the firms and providers that look at ESG ratings and providing that information also.

Windfall Tax: Oil, Gas and Energy Companies

Debate between Lord Oates and Baroness Penn

Tuesday 22nd February 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I would not speculate on the green levy or any other tax or levies outside of the Budget process. What I would say to the noble Baroness is that we remain committed to our transition to net zero. While we recognise that in the short term we need to continue our oil and gas supplies, in the longer term we need to move to greener forms of energy.

[Lord Oates (LD)]

My Lords, does the Minister recognise that between 2010 and 2020 real energy bills for consumers fell? That was in significant part because of the green levies which helped to reduce energy consumption, quite contrary to what the noble Lord on the Government Privy Bench has just said. Will she ensure that we do not cut these energy-saving levies, and will she make absolutely clear that what is driving up prices is the cost of fossil fuels, not of renewables and green levies?

[Baroness Penn (Con)]

My Lords, I believe I have already answered a question about the level of the green levy on bills. However, I have also given the reassurance that the Government are committed to their net-zero targets. That involves a transition from fossil fuels to greener forms of energy, which is why we have a plan in place to do so.

Greenhouse Gas Emissions: Tax Strategy

Debate between Lord Oates and Baroness Penn

Tuesday 6th July 2021 Lords Chamber

[Lord Oates]

To ask Her Majesty’s Government what assessment they have made of the benefits of implementing a tax strategy that aligns with the United Kingdom’s net zero greenhouse gas emissions target.

[Baroness Penn (Con)]

My Lords, this Government are committed to net zero and take their legally binding climate commitments very seriously. The UK emissions trading scheme and a wide range of taxes, including the climate change levy and vehicle excise duty, are designed to encourage businesses and consumers to make greener choices. The Government’s net-zero strategy will be published later this year. Any tax changes in future will be considered and announced by the Chancellor.

[Lord Oates (LD)]

My Lords, I declare my interests as set out in the register. In 2019, UK taxes per barrel of North Sea oil were just $1.72, compared with Norway’s $21.35. HMRC estimates that the cost to taxpayers of tax relief for decommissioning the mess the oil companies created themselves is at least £24 billion. Does the Minister think that providing huge tax subsidies to fossil fuel industries while refusing to consider tax incentives such as stamp duty rebates to improve tax efficiency is sending the right signals to meet the net-zero target?

[Baroness Penn (Con)]

My Lords, we are conscious that the net-zero transition requires us to think more strategically about the role of levers that change the price of emitting greenhouse gases in supporting that transition—including carbon prices through taxes or emission trading schemes—and we are doing that work in the context of the net-zero review.

Skills and Post-16 Education Bill [HL]

Debate between Lord Oates and Baroness Penn

Committee stage
Tuesday 6th July 2021 Lords Chamber

[Lord Oates (LD)]

My Lords, I declare an interest as chair of the advisory group of Weber Shandwick UK. I support the objectives of the wide array of amendments in this group—

[Baroness Penn (Con)]

My Lords, I believe there were a couple of additions to the speakers’ list. I believe that the noble Lord is winding for the Liberal Democrats, and we may be due to hear from the noble Baroness, Lady Sheehan.

Build Back Better Business Council

Debate between Lord Oates and Baroness Penn

Thursday 25th February 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the pandemic has led to the Government having to take some difficult decisions, but I reassure the noble Lord that the UK Government still plan to spend £10 billion in overseas development assistance in 2021, based on current GNI forecasts. We remain one of the largest donors and spenders in the world.

[Lord Oates (LD) [V]]

I would like to ask the Minister specifically about the council’s approach to SDG 13 on climate action. Will the council learn from the failure of the green homes grant scheme, which now looks like it will pay for about 50,000 home upgrades, rather than the 600,000 promised or the 24 million needed? Will it recognise that addressing climate change requires long-term investment, rather than stop-start short-term stimulus measures?

[Baroness Penn (Con)]

The green recovery is integral to the Government’s plans to build back better. Businesses’ contribution to that will be essential. I am sure it will be a subject for future meetings of the business council. One of the purposes of the council is to get the perspective of businesses on the development and implementation of such policies.

Green Investment Fund

Debate between Lord Oates and Baroness Penn

Wednesday 2nd September 2020 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government take into account both the economic and climate impacts of the aviation sector. As that sector seeks to rebuild after the virus, we need to invest in technologies to ensure that that can be done in a greener way.

[Lord Oates (LD)]

My Lords, does the Minister recognise that the anger of the Extinction Rebellion protesters outside Parliament relates directly to our failure inside Parliament, particularly the gaping chasm between the Government’s rhetoric on climate change and their actions? Will they at least begin to bridge that gap by instituting a comprehensive green investment plan, including investment in green hydrogen and clean battery production, so that the UK economy is not once again left catastrophically behind the curve?

[Baroness Penn (Con)]

I am afraid I have to disagree with the sentiments the noble Lord expressed in that question. We have announced, including in the summer economic update, billions of pounds for a green recovery to support our economy. The evidence from fiscal stimulus packages in response to the global financial crisis showed that green policies can support short-term jobs—indeed, more short-term jobs than traditional stimulus. That is why the Government are investing in a green recovery.