Paris Agreement on Climate Change

Mary Creagh Excerpts

Wednesday 7th September 2016 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

I apologise for not attending the first part of this debate. I was chairing the Environmental Audit Committee where we were hearing from Ministers from the Department for Environment, Food and Rural Affairs and the Minister from the Department for Exiting the EU.

I congratulate my hon. Friend the Member for Brent North (Barry Gardiner) on bringing this debate forward. It has been some time since we debated climate change. Like other speakers, I believe that this issue is one of the three great challenges of our age. The first is the challenge of the ageing society and how we can all live better now that we are living longer. How can society adapt to that new longevity? The second challenge stems from technology hollowing out traditional jobs and traditional workforces. How can the Government collect taxes on the new economy when the intellectual capital exists in places such as California, but the products are consumed in our own country? The final great challenge of our age is climate change.

There is the challenge of adaptation to protect our island from the different weather patterns we will see in the future. How can we mitigate the risks and play our part in the world in standing by our poorer neighbours? As previous speakers have said, they have done nothing to cause this catastrophe, but having risen out of poverty, they now risk seeing hundreds of millions of their own people being dragged back into it through climate change. It will either cut off their food supplies and their traditional ways of life or, in the worst-case scenarios, see island states disappear under water altogether.

In 2015, 190 countries adopted the new climate agreement in the first ever universal and legally binding global deal. We cannot overstate how much of an achievement that was and what a great part the UK Government played in achieving it. The Home Secretary, then Climate Change Secretary, really took the lead on that, and it is a great shame that the Government have now abolished the Department for Energy and Climate Change. The lessons from other countries show that when climate change is put into a pot alongside other industrial and energy policies, climate change is often the loser as economic interests take over. We do not value what we cannot see. This is one of the big “abstract thinking” problems of trying to deal with climate change. We are talking about worst-case scenarios in 20, 30 or 40 years’ time, but scientists would argue that we have just seen 14 consecutive months as the hottest on record and are now 1.1° above our pre-industrial revolution peak.

[John Mc Nally (Falkirk) (SNP)]

Does the hon. Lady agree that if the Government want an example of certainty of policy, which has been mentioned by previous speakers, they should look at the state of California, where what I think is a 20-year all-party agreement on renewable energy has led to investment by various companies? Does she agree that Westminster Governments have probably been practising long-termism and short-termism for far too long, and they cannot allow this to go on until 2020, 2030 or 2040, or for an indefinite period?

[Mary Creagh]

I strongly agree that what investors and businesses want is certainty. Members of the Conservative party may want to see outcomes, but one way of achieving those outcomes is to set a strict framework and then stick, within that framework, to the interim targets that we wish to meet. The hon. Gentleman has played an important part in the Environmental Audit Committee, sharing with us not only the Scottish experience, but his wider global experience.

As we know, 23 countries have now ratified the agreement, and over the past week the United States and China have come together. Given that they represent 40% of the world’s carbon emissions, this is a really significant moment. It seems to me that they are firing the starting gun for the next big industrial revolution. Britain led the way in the first industrial revolution, with the spinning jenny, electricity and other forms of energy, and the steam engine. The second industrial revolution, in the 1990s, introduced technological change which has revolutionised the way we think and do business. This will be the third great industrial revolution of our time. Whichever country first gets to market with individual transport solutions that are non-emitting—solar-powered cars and battery storage—will have a massive competitive advantage in the global race.

We have heard about the Climate Change Act 2008. That was Labour’s achievement, but it was a cross-party achievement in that only five Members voted against it. It committed the United Kingdom to reducing its emissions by 80% of the 1990s level by 2050. It has been copied, replicated and imitated across the world because it gives investors certainty, which is crucial, particularly at a time when, following the referendum result, there is a great deal of uncertainty in our economy. The Act sets out long-term goals, but it also gives Governments flexibility to decide how they want to meet those goals. Our Government also introduced feed-in tariffs and the renewables obligation, which brought about an energy revolution in this country. In 2005, none of our energy was being produced from renewable sources, whereas at certain points last year, 25% of our electricity was coming from such sources.

I want to say something about the work of the Environmental Audit Committee. I have here a copy of an excellent report that we published about 10 days ago, entitled “Sustainability in the Department for Transport”. It did not receive quite as much press coverage, or Daily Mail pick-up, as the microbeads report, which is a great shame. I am sure that no Member who is present, or anyone sitting in the Galleries, uses microbeads. I must say that we are all looking very polished and relaxed after our summer break.

What the Committee found was concerning. We found that the UK is failing to reduce its carbon emissions in the transport sector, that air quality targets that were supposed to be met in 2010 will not be met until 2020 at the earliest—and the only reason there is a plan for developing them is the United Kingdom’s membership of the European Union, and the threat of action against us by the European Commission and the European Court of Justice—and that although a year has passed since we discovered, on 18 September, that Volkswagen had fitted cheat devices to a range of cars, the Government have yet to decide what action, if any, to take against the company. As far as I am aware, not a single Volkswagen has been recalled in this country for any sort of fix or refit. That is completely unacceptable to Volkswagen customers who, for instance, may wish to change their cars and are unable to obtain a fair valuation.

Domestic transport is the single largest emitting sector of the economy, accounting for 22% of UK emissions. Those emissions need to fall by 31% over the next 10 years. We found that the UK is on course to miss that target by 50%. So demand for transport is growing and, despite marginal falls in average car and van CO₂ intensity, this is driving up emissions. Therefore, we are not going to be on the most cost-effective pathway to those 2030, 2040 and 2050 targets. That is deeply worrying, because if we are not on the most cost-effective pathway, it means we are idling along in the slow lane, hoping that something will turn up to suddenly help us meet those carbon budgets later on down the road, literally and figuratively.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Does the hon. Lady agree that the Scottish Government proposition to make sure that all towns, communities and cities are free of fossil fuel vehicles by 2050 is the right approach? Does she agree that the UK should be looking to follow the example of Norway and the Netherlands, which are looking at banning all new petrol and diesel vehicles by 2025?

[Mary Creagh]

What I would say about a 2050 target is that it is long enough away for none of us to be accountable for it, because most of us will be dead by then. [Interruption.] Well, some of us; I probably will be—no, I will be enjoying a long and fruitful old age, as I intend to live until I am 100. I want to see interim targets, so if there is a 2050 target I would be interested to see what are the 2020, 2025 and 2030 targets, because faraway targets can always be our children’s problems.

The issue in the report about our transport sector is that we are not doing enough now, and I want to develop my theme because transport emissions increased in both 2014 and 2015. Some 94% of those transport emissions are from road transport, and we were concerned that less than 1% of new cars are electric. There is a good reason for that: they are very expensive—£30,000 or £32,000, perhaps. The Committee on Climate Change says that we need 9% of all new cars to be ultra-low emissions vehicles by 2020 if we are to meet those targets at the lowest cost to the public. We should match what the Committee was saying with the Department’s forecasts; the Department was saying, “Well, actually 3% to 7% of vehicles will be ultra-low emissions by 2020, but our average central point is 5%.” So the Department’s central forecast is 5%, but the Committee on Climate Change says it should be 9%.

That is worrying, because the next target—the 2030 target—is that 60% of all new vehicles should be low-emissions. If we are only at 5% by 2020, I cannot see a way of getting to 60% of low-emissions vehicles without some spectacular change in the way we buy cars in this country, and we did not hear any brilliant bright ideas from the Department for Transport. We heard of the money that was committed, but we did not hear a strategy for getting that mass take-up. That means we are playing catch-up and we are not going to follow the lowest cost route to decarbonise the economy.

[Bob Stewart]

I am no expert, but is there any way of measuring progress towards the targets for 2020, 2030 and so on, perhaps by year?

[Mary Creagh]

Yes; it is done in the single departmental plans and the annual reports, and the Committee on Climate Change looks at these targets every year and says whether we are going to meet our various carbon budgets. There is a range of reporting mechanisms, and I see it as the job of the Committee to point out where we think things are going wrong.

We could see a whole range of policies that would help drive low-emission vehicle uptake, and local authorities had a range of innovative ideas, particularly in the area of fleet procurement. The Government are probably the largest buyer of vehicles in the country, and if the NHS were to move to all electric vehicles, they would get them at much less than £30,000 per car. They could then guarantee buy-back and there would then be a second-hand market that gets people used to buying these vehicles. We could see workplaces investing in charging points—one of the perceived problems with electric vehicles is their range—and the introduction of a national grant scheme, or scrappage scheme, for electric and low-emission taxis.

We also want the Treasury to think about changes to the taxation of vehicles, including company cars, to make electric vehicles more attractive. This is really important for the UK’s industrial strategy. I was born and brought up in Coventry, and I watched the car manufacturing industry virtually disappear around me in the 1980s. The remaining manufacturers, including Nissan, Honda, LTI—which I am delighted to say makes electric taxis in Coventry—and Toyota, need a reason to choose their UK car factories based in Sunderland, Swindon, Coventry and Derby to manufacture the next generation of low-emission vehicles. We have heard from the Japanese ambassador about some of the anxieties following the vote to leave the European Union, but we are obviously keen to see Nissan manufacture the next generation of its electric car, the Leaf, in Sunderland from 2018. That decision is under consideration at the moment. Investors want stability, certainty and policies that will signal the Government’s intention to incentivise the uptake of these vehicles. All those factors are vital.

[James Heappey]

The Energy and Climate Change Committee has similarly been looking at the uptake of electric vehicles. What assessment has the Environmental Audit Committee made of the preparedness of our energy system, particularly for clusters of electric vehicles? For example, are we going to be able to provide the level of charge required if, say, two dozen or more electric cars on the same road all need to be charged at the same time?

[Mary Creagh]

We did not look at all the life cycle issues, but I have a feeling that that might be coming out in the hon. Gentleman’s report. If so, that would be great—a good bit of boxing and coxing from both Committees. He makes a good point: we still have coal-fired power stations, and it would make no sense to have emitting power stations fuelling electric vehicles. We need to look at the whole life cycle of the power supply. There are big issues with battery storage and battery life, and it would be a great prize for our industry if we could find a way to capture renewable energy and store it when we have more than we need.

I have talked about air pollution and air quality zones, and the fact that the targets will not be met until 2020. The report contains a detailed analysis of that. The Volkswagen emissions scandal revealed that 1 million diesel cars in the UK contained cheat device software, and we found a worrying inertia among Ministers when it came to deciding whether to take legal action or any other action. We want Ministers to ask the Vehicle Certification Agency to carry out tests to find out whether those Volkswagen group cars in the UK would have failed emissions tests without those cheat devices. It is important for people to know that. We would also encourage the Serious Fraud Office and the Competition and Markets Authority to make their decisions about whether to take legal action against Volkswagen. In the United States, Volkswagen owners have already started to receive compensation; some have received as much as $10,000.

The Committee has also produced a report recently on the Government’s approach to flooding. Flooding is the greatest risk that climate change places on our country, and the risk is threefold. There is a risk from surface water following heavy rainfall, whether in summer or winter. The July 2007 flooding, which flooded more than 1,000 homes in Wakefield, was the largest civil emergency that this country had seen since world war two. There is a risk from river flooding, which is what we saw in the Christmas and Boxing day floods in York and all across the country, including Scotland and Wales. There is also a risk from a tidal surge from the North sea. We were in a position, I think in 2014, in which a combination of high winter tides and heavy rainfall resulted in red flood warnings and evacuations from Newcastle all the way down to Margate. The entire east coast of England was at risk from a tidal surge.

The ways of mitigating these risks are complex. We need to get in place the civil resilience systems so that we are able to respond when floods occur. So far, we have been fortunate that most of them have happened at different times, but if we were to experience all those different kinds of flood problems at the same time, there could be issues relating to our ability to respond adequately.

[Barry Gardiner]

My hon. Friend is making such an important point about flooding. Does she recall that had the high tide and the surges been realigned by one hour, more than 10,000 homes in the Humber area would have been underwater?

[Mary Creagh]

It was an anxious time. I remember following events on the Met Office website and thinking, “This is not looking good. I would not want to be the Minister in charge.” We cannot keep relying on luck. We must be fully prepared. I am disappointed that the Government’s flood review and the analysis of the resilience of national infrastructure to deal with flooding emergencies has been postponed. We understand that it was a Cabinet Office responsibility, and I have written to the DEFRA Secretary and the Minister for the Cabinet Office to find out where that responsibility now lives because there has been some confusion.

During the recent flooding, we found that if the transport network goes down because a bridge has been taken out or a road has been flooded, the police, the fire service and ambulances are unable to respond. People are unable to make phone calls because digital infrastructure or phone lines go down, and power supplies can also go down. People end up literally and metaphorically in the dark about the flood situation sometimes only 10 miles up the road. We heard that from the people of the Calder valley who came to Leeds to talk to the hon. Member for Falkirk (John Mc Nally), who is not in his place, and me, and we had an interesting conversation.

Turning to the Environmental Audit Committee’s work on looking at the Treasury, all such decisions are ultimately signed off or not by the Treasury. The National Audit Office told the Committee that there is a growing gap between our stated ambitions on climate change and the policies and spending that the Government are bringing forward to get us there. According to the Government’s own calculations, we are on track to miss our fourth carbon budget between 2023 and 2027 by 10%, yet we saw no action in the previous spending review to take us nearer to closing that gap.

In fact, the spending review contained a number of negative decisions that impacted on our ability to tackle climate change. The last-minute cancellation of support for carbon capture and storage, for which industry had been preparing for seven years, has delayed the roll out of this crucial technology for a decade or more, meaning that the eventual bill for cutting our carbon emissions could be up to £30 billion more. Other last-minute changes, including ending all funding for the green deal, cancelling the zero band of vehicle excise duty on low-emission cars, abolishing the zero carbon standard for new homes, cutting the funding available for greener heating systems available under the renewable heat incentive, and closing the renewables obligation to onshore wind a year earlier than previously promised, have all damaged business and investor confidence.

We need to start valuing our natural capital, such as our bogs, peatlands and rivers—our wild and special places. There is twice as much carbon in our bogs than in the UK’s atmosphere. If we practice farming techniques that drain that land, degrading peat soil and releasing that carbon, we are contributing to the problem, not taking away from it. We need to consider the role of soils—that was another excellent report by the Committee that did not get much Daily Mail attention—and what peatland and bog restoration can do for capturing carbon. That work is vital and contributes to the richness of our ecosystems and wildlife. We will continue to scrutinise the Treasury’s record and work with the National Audit Office and evaluate every future autumn statement for its environmental impact.

In conclusion, the US and China have worked together to ratify the agreement. They are getting a head start in the next great innovation race: the decarbonisation of advanced economies. We are fortunate that we have the Climate Change Act 2008 and the framework that forms the basis for this new industrial revolution in sustainable technology. I hope that all Members will continue to work together and do diligent work in our Select Committees and interest groups to ensure that the Government ratify and honour the spirt of the Paris agreement.

--- Later in debate ---

[Jesse Norman]

It has always been understood that, as has been stated, the Government would announce measures during this Parliament that will address the concerns—the perfectly proper concerns—the hon. Gentleman raises. I do not demur from the point that the framework exists, with the independent check of the Committee on Climate Change, whose suggestions the Government have, broadly speaking, in every case accepted. I do not think there can be much doubt about the structure and credibility of the long-term framework that the Government are following.

Through the Climate Change Act and the carbon budgets, Britain has an advanced model for the requirements set out in the Paris agreement, with a national plan to curb emissions and the aim to improve the plan every five years, setting progressively tighter targets. That model has been widely admired abroad, and it has proven extremely helpful and influential to other countries facing the same challenges, including Denmark, Finland and France. With the confirmation of our fifth carbon budget in July, we are in a strong position to continue on this steady path of improvement. That is the goal of this new Department. Its creation shows that climate change has become an absolutely mainstream part of our political life.

[Mary Creagh]

I do not know whether the Minister has seen the conclusions of the Environmental Audit Committee report, but the transport sector is set to miss one of the Committee on Climate Change’s interim decarbonisation targets by over 50%. Will he comment on some of the specific challenges facing the transport sector and on the fact that we are set to miss our fourth carbon budget for 2027, which is in nine years’ time?

[Jesse Norman]

I think we all recognise that, on present projections, the UK will have more to do to reduce domestic emissions. As has been said, that is going to require an emissions reduction plan. It is too early to give specifics about what will be included in that plan, but I can say that it will aim to set out the Government’s proposals across key sectors of the UK economy over the medium to long term and will be specifically structured to meet such needs.

I turn briefly to the issue raised by the right hon. Member for Doncaster North, namely our relationship with the EU in the context of Brexit. His words were wise, well chosen and constructive. Although we will ratify the agreement as part of the EU, leaving the EU does not mean that the UK will step back from this agenda. Indeed, let us all be quite clear that the UK will not step back from international leadership as such, and remains as committed as ever to tackling climate change. We will continue to be an outward-looking country. We have an unrivalled set of relationships around the world and membership of key international groupings through which to make the case for action and to build bridges between different views and interests, as he said.

Even after Brexit, we expect to work closely with the EU and with individual EU member states with whom we will have a continuing shared interest in pressing the case for action on climate change. We will continue to use the authority from our track record to support domestic and international climate action and shape the wider international agenda.

As I have made clear, our history of domestic climate action puts us in a very good position to build on what was agreed in Paris. The COP22 conference in Marrakesh marks an important further stage in the implementation of that global agreement. The negotiations are very complex and will take time, and we should not necessarily expect headline-grabbing outcomes. But it is important to focus on the positive side, from an innovation standpoint; some very important contributions, including that of the hon. Member for Glasgow North, stressed the importance of innovation.

Ambitious action on climate change should also lead to real opportunities for this country. As a result of the UK’s historical leadership we can build our progress towards a low-carbon economy both domestically and abroad. Low-carbon sectors are already an important and growing part of our economy. In 2014, more than 95,000 businesses were directly engaged in low-carbon and renewable energy activity, generating £46.2 billion in turnover and resulting in 238,500 full-time equivalent jobs. I particularly enjoyed and benefited from the remarks of my hon. Friend the Member for Wells (James Heappey) in that context, with his call for common sense and his emphasis on social justice and the importance of taking advantage of the economic opportunities.

Capital markets, too, play an increasingly important role in the transition to the low-carbon economy, and green finance is a major priority for the largest emerging markets. The green bond market, which funds projects with positive environmental or climate benefits, has grown from just $3 billion in 2012 to $42 billion globally last year. With London, the world’s most international financial centre, and with significant expertise and strong professional and legal services, this country is very well positioned to help finance the transition globally to a low-carbon economy.

I conclude by congratulating and thanking every Member who has contributed to the debate. It has been a very absorbing debate indeed. The number and quality of the speeches testify to the importance of the issues involved. The UK remains firmly committed to the Paris agreement and to its ratification as soon as possible. This country has not and will not step back from international leadership in combating climate change. We also remain committed to ambitious domestic action. The fifth carbon budget was set in line with the recommendation of our independent advisers, the Committee on Climate Change, as I have stressed. It is equivalent to a 57% reduction on 1990 levels.

We know that there will be complex challenges to decarbonising in the years ahead. That is to be expected. But our aim is to meet those challenges in a way that is fair and affordable, and maximises the economic benefit to the UK. That requires a whole-economy approach to delivering our climate change goals, one that effectively balances the priorities of economic growth and carbon reduction. Through the creation of the Department for Business, Energy and Industrial Strategy we will do just that.

Question put and agreed to.

Resolved,

That this House notes that the USA and China have both ratified the Paris Agreement on climate change; regrets that the Government has not accepted the Opposition’s offer of support for immediate commencement of domestic procedures to ratify the Paris Agreement; further notes that if the UK lags behind its G20 partners in ratifying the Paris Agreement it risks losing diplomatic influence on this crucial future security issue; recognises, in light of the EU referendum vote, the need to maintain a strong international standing and the risk of rising investment costs in UK energy infrastructure; and calls on the Government to publish by the end of next week a Command Paper on domestic ratification and to set out in a statement to this House the timetable to complete the ratification process by the end of 2016.