Carbon Budget Order 2021

Lord Sarfraz Excerpts

Thursday 10th June 2021 Grand Committee

[Lord Sarfraz (Con)]

My Lords, it is a privilege to follow such experienced and distinguished noble Lords. I declare my interest in agricultural technology as set out in the register.

The monsoons will shortly start in south Asia. Traditionally, the arrival of the monsoons begins with a festival to celebrate nature and express gratitude for all that the planet gives us, but things are different now. As the climate has changed, so has the mood on the subcontinent. Sadly, the rains that give sustenance have become floods that take lives. So as we think about our carbon budget today, we are reminded of those living with the real effects of climate change around the world.

Our carbon budget is part of an international balance sheet. For us to achieve net zero, carbon offsets must work too. Despite a false start a decade ago, this time round, the voluntary carbon market can be a real success. For this to happen, we need to make some improvements—and quickly. Currently, the entire system of carbon offsets is extremely complex and needs specialist advisers and consultants to navigate it. This desperately needs to be simplified, standardised and made accessible so that income from carbon offsets can directly benefit those changing their practices—particularly those using nature-based solutions and those in low-income countries. This must be done without compromising the quality of credits; the Taskforce on Scaling Voluntary Carbon Markets has proposed a very good set of core carbon principles, which are a useful framework to verify credits. The verification and validation of carbon savings also need to be digitised so they can be rolled out at scale.

We must also recognise that the voluntary market is voluntary, and the institutional investors driving it must be supported. We must fully support the voluntary carbon market. Does my noble friend the Minister agree that we have a duty to make sure that this market works for everyone?