Road Vehicle Carbon Dioxide Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2021

Lord Rosser Excerpts

Thursday 8th July 2021 Grand Committee

[Lord Rosser (Lab) [V]]

My Lords, CO₂ emission performance standards set a maximum average level of CO₂ emissions for new cars and vans, broken down into specific targets for each individual manufacturer. This issue of new car and van CO₂ emissions was originally included in the Northern Ireland protocol, which meant that Northern Ireland would continue to align with EU regulations on this aspect in accordance with annex 2.

However, on 17 December last year, the UK-EU joint committee made a decision to remove two regulations covering emissions from the protocol, which meant that Northern Ireland was no longer expected to align with the EU on those regulations and could instead align with the Great Britain regime, making it a UK regime. The reason given by the joint committee was that the regulations relating to emissions of new cars and vans

“do not relate to the placing on the market of such vehicles in the Union. They should therefore be removed from Annex 2 to the Protocol”.

Removing these two regulations from the protocol, as the European Scrutiny Committee report says, also ensures that

“vehicles in Northern Ireland will not count toward EU manufacturer CO₂ targets, and may count toward UK manufacturer CO₂ targets instead. This clarifies Northern Ireland’s place in the UK internal market.”

These regulations—I too thank the Minister for her introductory comments—extend the existing GB regime to cover Northern Ireland as well, now that Northern Ireland is no longer covered by the EU regulations on this issue. This will enable the UK Government to regulate CO₂ emissions from newly registered cars and vans in Northern Ireland in the same way as currently regulated in Great Britain, effective from 1 September this year.

We are supportive of the UK-EU joint committee as a forum for finding practical solutions and agreement over issues with the protocol, and that the Government must work through the joint committee, which they do not always do. I have one or two questions to ask and clarifications to seek. The Explanatory Memorandum states that, because the two regulations covering emissions were removed so late from the Northern Ireland protocol, in mid-December last year,

“Northern Ireland currently has no CO2 regulations for new cars and vans, meaning”,

as others have pointed out,

“manufacturers are free to sell highly polluting vehicles in Northern Ireland without restriction.”

Can the Minister say whether the selling of highly polluting vehicles in Northern Ireland actually happened, as the regulations we are debating, which cover Northern Ireland, do not come into effect until 1 September this year? Can the Government also say why these regulations, which will cover Northern Ireland, could not have been brought into effect much earlier than 1 September 2021, or, alternatively, why the regulations applicable in Northern Ireland could not have remained in the protocol until 1 September 2021, when the regulations we are discussing come into effect, thus presumably avoiding any period during which there would have been no CO₂ regulations for new cars and vans covering Northern Ireland?

The Explanatory Memorandum refers to the need to provide a short period of time to allow industry to adapt to the regulations coming into force. What does this adaptation actually involve doing? Is there a difference between the CO₂ regulations that applied in Northern Ireland prior to December 2020 and the regulations that will apply to Northern Ireland from 1 September 2021? As I said, removing these regulations from the protocol means that vehicles in Northern Ireland will not count towards EU manufacturer CO₂ targets and may count towards UK manufacturer CO₂ targets instead. However, since by 1 September 2021 there will have been no CO₂ regulations for new cars and vans covering Northern Ireland for some eight months, does that mean that relevant vehicles in Northern Ireland will have counted towards neither EU nor UK manufacturer targets? If so, what exactly has been achieved by creating that situation, and will adjustments to the figures for this eight-month period subsequently be made to EU and UK manufacturer CO₂ targets? The Explanatory Memorandum suggests that this will not be done. If that is the case, why not?

Following our departure from the EU, the Government’s policy for this year, as I understand it, has been to have a continuation of the existing EU-wide standards to minimise disruption for vehicle manufacturers. What, however, are the Government’s, intentions or plans for future vehicle emission standards in the UK, now that we are outside the EU? Or were the Government’s future intentions or plans covered by the comments the Minister made in her opening remarks? I look forward to the Government’s response to the points and questions that I and other noble Lords have raised in the debate.