Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021

Lord Whitty Excerpts

Tuesday 13th April 2021 Grand Committee

[Lord Whitty (Lab) [V]]

My Lords, I thank the Minister for these regulations, given that Brexit means that we are no longer party to the EU recording of emissions for Kyoto registry purposes.

I have three questions, two operational and one rather fundamental. First, can the Minister assure the House that this methodology for calculating greenhouse gas emissions will not be changed unilaterally by the UK and that, in terms of trends, we will be compatible with both past reported trends for the UK and the EU system of reporting, as well as simply meeting the requirements of the Kyoto registry?

Secondly, while the figures in this log will not determine what allowances can be traded in the new post- Brexit UK emissions trading scheme, can I assume that they will be compatible with it?

Thirdly, and more strategically, do the Government recognise that the methodology of determining individual nations’ contributions to greenhouse gas emissions, taken on its own, is fundamentally misleading? It reflects reduction within the national emissions’ geographical boundaries, not the national demand generated by that nation’s society and economy, which would produce a very different impact on global emissions. For example, the UK final demand will include demand for imports, in the production of which greenhouse gases will have been emitted in China, say, or on the high seas or in the air, in transporting them to the final user or consumer. The global total will be the same, but the relative contribution of each nation to that total will be radically different, and the implied policy priority for each nation will therefore also be radically different. To put it crudely, if countries such as the UK and the United States, or companies in those countries, in effect offshore or export their dependency on greenhouse gas emissions by shifting production to the Far East, it is our economy, our final user and our supply chains whose behaviour needs to be addressed, rather than, or as well as, those of the Far Eastern nations.

This, then, is an issue that the Kyoto mechanisms and registry need to address. I do not say we do not need this production-based data—we absolutely do—but it needs to be augmented by a parallel index analysing, as best we can, the carbon-equivalent content of each nation’s final demand. Production-based data is important and we need to keep it, but we also need demand-based data. Do the Government recognise this as a priority and, if so, is it an issue that will be discussed at the forthcoming COP 26 later this year, when the Government will be in a highly influential position to get the nations of the world to agree to work on a parallel system of demand-based greenhouse gas figures, as well as the figures covered in the regulations today?