Global Britain

Debate between Richard Graham and Barry Gardiner

Thursday 30th January 2020 Commons Chamber

[Barry Gardiner]

We cannot forget that this Government have continued to support the Kingdom of Saudi Arabia with arms sales, despite the humanitarian crisis in Yemen and despite the Court of Appeal ruling that such exports must cease. The Secretary of State had to come before this House to apologise for breaching the Government’s undertakings to the Court of Appeal and to the House of Commons. Perhaps she might be able to tell us the outcome of the Department’s inquiry into how many breaches of those undertakings there were and how they came about. I will happily give way to her if she can. If she cannot, can the Minister of State, Department for International Trade, the right hon. Member for Bournemouth West (Conor Burns), when he sums up, at least inform the House of when we might expect the outcome of that report?

I am reminded that we are also waiting for further information on the Department’s investigation into bribery and corrupt practices involving British companies overseas, especially those supported by taxpayers’ funds through UK Export Finance. Can we have an update on that investigation, too?

Earlier this week, it was revealed that Airbus has entered a deferred prosecution agreement in relation to allegations of corrupt practices overseas. This is not the global Britain that we should be projecting: a nation willing to sell arms and equipment to countries with a track record of violating international humanitarian law, where they may be used against innocent civilians, deployed in efforts to oppress citizens or exported through corrupt practices.

It is not just in the arena of international trade that the global order is under threat. NATO, too, is coming under increased strain. There are wrangles on costs and burden sharing, and member states are purchasing weapons systems outside the alliance.

Later this year, the UK will host the crucial United Nations framework convention on climate change—COP26—in Glasgow. This is a truly global responsibility but, sadly, it will also be the moment when America finally pulls out of the Paris agreement, in accordance with the notification it gave two years ago. It will also coincide with the result of the US presidential election. Many countries that have been earnestly engaging in the Paris process, seeking to reduce their own emissions, may come to question their engagement if America continues to be absent from the process.

The pattern of global power is shifting dramatically and swiftly. It is turbocharged by big data, the fourth industrial revolution, artificial intelligence, robotics and the internet of things. Above all, geopolitics will be affected by the energy transformation as the world moves towards a net-zero carbon economy.

From coal and whale oil to crude and shale, the geopolitical map has been moulded by the need to control energy supplies. Distribution pinch points such as the Suez canal and the strait of Hormuz have been flash points for conflict, and the projection of global power has relied on the ability to maintain security of energy supply. The inevitability of this shift is not simply due to the rapidly declining cost of renewables, or even the health and climate problems associated with fossil fuels.

Renewables, in many forms, are widely dispersed in most countries, promoting domestic self-sufficiency. They are not stocks that are used and then depleted; they are flows that are constantly recharged and so require less transportation and have no choke points. They lend themselves to decentralisation of production and consumption, and they can more easily be deployed at a local community scale. They also have marginal costs that approach to zero. So just as the geographic concentration of coal, oil and gas moulded our political landscape since the industrial revolution, the dispersed nature of renewable energy will erode those traditional patterns in a new global world. It is not clear that the Government have thought through the geopolitical implications of this energy transformation: which countries are likely to forge ahead and leapfrog the old technology; and which will fail to transform their subsoil assets of oil and gas into surface assets of human social and political capital quickly enough. It is often said that the stone age did not end because of a lack of stone, and nor will the fossil fuel age end because of a lack of oil, gas or coal. It will end with a lot of stranded assets that could pose severe financial risks that a global Britain must guard against.

The Government have sought to congratulate themselves repeatedly on our domestic progress towards net zero, but this has been achieved through the systematic exporting of our carbon emissions and an explicit policy of supporting activities overseas that we no longer support at home. I therefore welcome what the Prime Minister said:

“there’s no point in the UK reducing the amount of coal we burn if we then trundle over to Africa and line our pockets by encouraging African states to use more of it.”

He is right, and that is why we stopped UK Export Finance funding for coal back in 2002 and why we stopped official development assistance finance for coal back in 2012. What I want to hear from the Minister is an update, the logical corollary of what the Prime Minister said, which is that there is no point in the UK reducing the amount of fossil fuels we burn if we then trundle over to Brazil or Africa or India or anywhere and line our pockets by encouraging those countries to use more oil and gas.

UKEF has helped to finance oil and gas projects that, when complete, will emit 69 million tonnes of carbon a year. That is nearly a sixth of the total annual carbon emissions of the UK itself. Global Britain cannot be Janus-faced, with domestic virtue masking the international promotion of the very policies we say we want to prevent, freeing ourselves to embrace a net-zero future while locking other developing countries into fossil fuel dependency.

[Richard Graham (Gloucester) (Con)]

In the past 25 minutes, we have heard a lot of virtuous noises about renewable energy which we can all agree with. We know that the hon. Gentleman is against defence and security exports, against the US and against Saudi Arabia. He is against a whole number of things, and global Britain in terms of trade seems to mean for the Labour party “lining our pockets”. What is the Labour party’s vision of the role of the UK in the world? Does he not see enormous opportunities for us in working with continents such as Africa and Asia?

[Barry Gardiner]

I am sorry that the hon. Gentleman has sought to intervene in that way, because that quote about lining pockets is from his own Prime Minister, so I not think he does himself any credit. The fact that he has not listened to the positive things that I have been saying is his problem, not mine.

UK Export Finance plays a significant role in enabling fossil fuel projects by removing risk and sending safe signals to investors—these are the wrong signals. The Government’s dangerous approach risks leaving the UK taxpayer on the hook, financing stranded assets as the world rapidly moves away from fossil fuels. That is the point: this is a problem for us and for our economic security in the future. That is precisely what Mark Carney, Bloomberg and many others in the financial taskforce have tried to point out.

Two years ago, I called for the UK to end all fossil fuel projects supported by UKEF and to focus on our renewable technologies instead. Will the Government recognise that that is what a confident, outward-facing, global Britain needs to do? The UK has not yet depleted entirely its stock of fossil fuels, but its future does not lie so much in their further exploitation as in our capacity to use digital technology, smart grids and big data to place ourselves at the vanguard of this energy transition.

Global Britain cannot be backward looking. We must look forward to new opportunities and the repositioning of global powers. We must harness our unique skills and capabilities, and leverage them to take advantage of emerging economies and emergent technological solutions. We need a coherent industrial strategy that ensures a diverse economic base and a skilled workforce capable of meeting the emergent opportunities of a very different but precarious world. We need a proper, robust, independent, trade defence measure, and we need a Government that defend British interests and stand up against unfair practices overseas, including tariffs imposed on the likes of ceramics, which the Secretary of State has talked about. We need a democratic approach to trade agreements that have the early buy-in of affected stakeholders, businesses, trade unions, civil society, devolved Administrations and the elected representatives of the British people.

We cannot seek to make progress on the new issues affecting trade, digital economies and cross-border data flows, the treatment of bundled goods and services, the enforcement of intellectual property rights and so forth until we move forward. We must demonstrate the effectiveness of the rules-based system, work to progress and re-establish the appellate body of the World Trade Organisation, but we must also reform its structures to deliver the global order that is more just and more equitable.