Net-zero Carbon Emissions: Behaviour Change

Lord Callanan Excerpts

Thursday 16th September 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, I want first to express my appreciation to the noble Baroness, Lady Blackstone, for her excellent contribution and for securing this debate on this extremely important subject. There were some splendid contributions from all sides of the House, and I hope to address as many of the points raised as possible.

There is no doubt that achieving our net-zero target will be a shared endeavour, requiring action from everyone in society—from people, businesses and government. This Government absolutely accept this and are determined for the UK to play its part in upholding the Paris Agreement and our net-zero commitment, particularly in the run-up to COP 26. The Government agree with the noble Lord, Lord Grantchester, that net zero can be achieved only through engagement with the public and changing behaviours. As he observed, we are also publishing other world-leading strategies, such as the hydrogen strategy and the transport decarbonisation plan. I reassure the noble Baroness, Lady Jones of Moulsecoomb, that the Government share her concern about the urgency of tackling climate change. I particularly liked her quote that there is no silver bullet and only silver buckshot—I know that she will be opposed to shooting, but I liked the analogy anyway.

In June 2021, the UK Government set the sixth carbon budget at 965 megatonnes of CO₂ equivalent, which is a world-leading target which will see a 78% reduction in greenhouse gas emissions by 2035 compared to those in 1990. As the noble Baroness, Lady Sheehan, and the noble Lord, Lord Howell of Guildford, pointed out, this is how the Government intend to lead by example on climate change. This target is in line with the latest science, as the level recommended by our expert advisers at the Climate Change Committee, and consistent with the Paris Agreement goal to limit global warming to well below 2 degrees centigrade and pursue efforts to limit it to 1.5 degrees centigrade. The target would achieve well over half of the required emissions reductions from now to 2050 in the next 15 years.

This is a huge commitment which the Government are working flat out to achieve. Already our emissions are down by almost 44% across the last 30 years, and our economy has grown by 78% in that same period. If the noble Baroness, Lady Jones, does not like the economic growth, perhaps she will like the emissions reductions we have managed to achieve at the same time. The net-zero strategy, which we will publish ahead of COP 26—a number of noble Lords asked me about that—will set out our vision for transitioning to a net-zero economy. This strategy will build on ambitious plans already published in the past 12 months across key sectors of the economy, including the Prime Minister’s 10-point plan, which mobilises £12 billion of government investment, the energy White Paper, the transport decarbonisation plan, the industrial decarbonisation strategy and the hydrogen strategy.

These strategies deliver on many of the recommendations made by Climate Assembly UK, which a number of noble Lords referred to. The assembly called for a green recovery; the 10-point plan is the Government’s plan for a green recovery, delivering high-skilled green jobs. The assembly called for more wind and solar power; we will quadruple the capacity of offshore wind to 40 gigawatts by 2030. The assembly called for a faster transition to net-zero emissions vehicles; we will end the sale of new petrol and diesel cars and vans by 2030. The assembly called for the Government to invest in low-carbon buses and trains; this plan commits to a £4.2 billion investment in city public transport and £5 billion on buses, cycling and walking. The assembly called for the Government to speed up progress on low-carbon aviation—I know this is of particular interest to my noble friend Lord Kirkhope; this plan commits to research projects for zero-emissions planes and sustainable aviation fuels. The assembly recommended maintaining and restoring our natural environment; our plan committed to £40 million for a second round of the green recovery challenge fund.

The right reverend Prelate the Bishop of Blackburn referred to the importance of enabling everyone in society to contribute to achieving the net-zero target. I agree with him. We want to make it easier and more affordable for people to shift towards a more sustainable lifestyle while at the same time maintaining freedom of choice and fairness. These are two of the key principles also recommended by Climate Assembly UK. The Government are already taking steps to do exactly this.

For example, we are continuing to engage with key cycling and walking organisations to develop a behavioural change campaign aligned with our cycling and walking investment strategy action plan. We have funded digital tools that can support people in reducing their carbon footprint, including the Simple Energy Advice service, which can help people reduce energy use in their home, and the “Go Ultra Low” website, which provides information and advice on electric vehicles. We are supporting motorists buying electric vehicles through the plug-in car grant, which provides up to £2,500 for those making the switch to electric cars—I hope my noble friend Lord Kirkhope was able to take advantage of this Government’s generosity for his new purchase. As well as this, in partnership with industry we have supported the installation of nearly 25,000 publicly available charging devices in what is now one of the largest networks in Europe.

The forthcoming food strategy White Paper will build on existing work across government and identify new opportunities to make the food system healthier, more sustainable, more resilient and more accessible for those across the United Kingdom. Defra has also committed to a substantial update of the Government Buying Standards for Food and Catering Services, which provide a framework of mandatory and best practice standards for public sector procurers. This update will look to strengthen the emphasis on local procurement, SMEs, high procurement standards and sustainable, healthy produce.

Reaching net zero will require not only changes to our energy systems and substantial new low-carbon infrastructure but shifts, as individuals, in how we travel, what we buy and how we use energy in our homes. Given this, we will need to engage with the public on the changes required to deliver this ambition and listen very closely to their feedback. The noble Baroness, Lady Blackstone, asked whether we could create a national debate on how everyone can contribute to the country achieving net zero, and the noble and right reverend Lord, Lord Harries of Pentregarth, stressed the importance of informing people about it. To respond to the question of the noble Lord, Lord Oates, in the net-zero strategy, which will be published ahead of COP 26, we will communicate our approach to public engagement and supporting the public to make green choices.

Many people from all over the UK are already doing their bit on climate change. With the Together for Our Planet campaign we aim to celebrate this and inspire more people to join them. The campaign is building momentum in the lead-up to COP 26 by showcasing how people across the United Kingdom are going one step greener to tackle climate change. We are working across government and with numerous commercial partners. Our 26 “One Step Greener” champions and campaign will show how taking one step can have a positive impact on the environment, encouraging the general public also to do their bit, however large or small. We are also working with small businesses across the UK to support their journey towards becoming greener and more sustainable. This aims to create a mass movement of small green steps across the country in the lead-up to COP 26 to raise awareness of climate issues and launch a powerful legacy campaign to drive long-term behavioural change.

The noble Lord, Lord Browne of Ladyton, stressed the importance of empowering citizens to hold the Government to account and share their views. We have already increased our engagement with the public on policies for net zero. Since 2019, we have run deliberative dialogues on a range of net-zero topics, including net-zero societal change, homes and heating, hydrogen and the transport decarbonisation plan. I can reassure the noble Baroness, Lady Blackstone, that we will continue to monitor and evaluate public engagement to ensure effectiveness. We already track public views on climate change on a regular basis, for example through the BEIS Public Attitudes Tracker, which is published every quarter.

The noble Baroness also asked how we can engage with hard-to-reach citizens. BEIS has commissioned research from the Carbon Trust, with leading academics, which is exploring how the UK can reach net zero in a fair, socially inclusive way. I know this will also be of interest to the right reverend Prelate the Bishop of Blackburn. A key part of this will be advice and recommendations on how we best ensure that vulnerable and underrepresented groups can have their voices heard. Furthermore, findings from Climate Assembly UK have formed a valuable addition to the Government’s evidence base on assessing the UK public’s understanding, attitudes and perceptions around net zero.

The noble Baroness also asked whether the Government have assessed work on climate change assemblies undertaken in countries such as Scotland and France. I can confirm that we have been closely monitoring national and local citizens’ assemblies and officials have met the organisers and facilitators of these initiatives. In September 2020, we invited the Climate Assembly UK expert leads to present the assembly’s findings to officials. Over 400 officials attended these briefings.

In the lead-up to COP 26, as I have said, we will publish a comprehensive net-zero strategy which sets out the Government’s vision for transitioning to a net-zero economy, making the most of the new growth and employment opportunities across the UK. My noble friend Lord Kirkhope of Harrogate and the noble Baroness, Lady Blackstone, asked whether the net-zero strategy will include a public engagement strategy. This also addresses the points of the noble Lord, Lord Oates. I confirm again that, through this strategy, we will communicate our approach on public engagement, supporting the public to make green choices. The strategy will mark an important moment, where our priority shifts towards setting out a clear plan for delivery, which will allow us to look beyond COP, outlining a sustained effort to tackle climate change in the longer term.

To address the points raised by the noble Baronesses, Lady Blackstone and Lady Bull, the national curriculum provides the knowledge that pupils need to help address climate change in the future, while schools have the autonomy to go into as much depth on these subjects as they see fit. In citizenship, pupils are taught about the wider world and the interdependence of communities within it. At primary school, pupils are taught about what improves and harms their local, natural and built environments. More detailed content on climate change is included in geography and science. Certainly I have been receiving in my postbag an increasing number of letters that children have written in their classrooms. DfE has established a Sustainability and Climate Change Unit, which is preparing a change strategy. This will likely look at topics such as education and skills for a changing world, taking into account net zero, resilience to climate change and how to create a better environment for future generations.

In addition, we established a Green Jobs Taskforce, working with industry, unions and skills providers to advise on how we can develop plans for new, long-term, good-quality green jobs, and support workers to transition from high-carbon sectors. Its independent report, published in July, will feed into and inform our net-zero strategy.

The Government are committed to publishing a heat and building strategy later this year; I think it was my noble friend Lord Kirkhope who asked me about that. The strategy will set a comprehensive set of actions that will set the way for net zero in heat and buildings by 2050, with a real focus on the action needed in this decade to reach our interim targets.

Moving on to transport—a topic raised particularly by the noble Baroness, Lady Randerson, and others—we published the first plan in the world to set transport on a path to net zero by 2050: the transport decarbonisation plan. Enabling people to use public transport, to walk or to cycle is one of the plan’s six strategic priorities. Backed by a £2 billion package of investment, we are committed to establishing a world-class cycling and walking network in England by 2040, delivering on the Prime Minister’s bold vision that he announced last summer. This plan also commits that we will deliver a net-zero rail network by 2050, with sustained carbon reductions in rail along the way, by supporting new technologies such as hydrogen or battery trains and removing diesel-only trains. We also want to get more people on to trains, and we are building extra capacity on the network and working with industry to modernise fares, ticketing and retail to encourage a shift to rail.

To address the points raised by my noble friend Lord Howell of Guildford on international leadership, in addition to the action we are taking at home, we remain committed to demonstrating global leadership in tackling climate change. It is a global challenge and, of course, no country can tackle it alone. There is a clear need for countries across the world to do more. We have strong relationships with key emitters—including India and China—on climate, and we work closely with their Governments on a range of mutually beneficial programmes, with the aim of reducing emissions while also improving their resilience to climate change. Of course, we will continue to push for more ambition globally as the host of COP 26.

I thank the noble Lord, Lord Brooke of Alverthorpe, for his views on the quality of life and how net zero will be beneficial for all. He referred to the importance of enabling youth to drive climate action, and I agree: it will be key to listen to their concerns. Therefore, we have a dedicated youth engagement team which is co-ordinating the UK Government’s strategy to ensure that youth voices are heard at COP 26 and in its legacy.

Inclusive public engagement that gives representation to different groups’ diverse needs and interests, as well as their meaningful participation in decision-making, is vital to inform the design and implementation of successful net-zero policies. Public engagement can help build awareness, acceptability and uptake of sustainable behaviours over the longer term. Therefore, we are increasing our work on public engagement on net zero, both in communicating the challenge and giving people a say in shaping our future policies.

I hope I have been able to provide at least some reassurance to the noble Baroness, Lady Blackstone.

Sovereign Defence Capability: Meggitt Takeover

Lord Callanan Excerpts

Wednesday 15th September 2021 Lords Chamber

[Lord West of Spithead]

To ask Her Majesty’s Government what assessment they have made of the impact of a takeover of Meggitt by Parker-Hannifin on the United Kingdom’s sovereign defence capability.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we welcome trade and investment where it supports UK growth and jobs, and which meets our legal and regulatory requirements while not compromising national security. Where we believe there are concerns, we raise them, and where we need to intervene, we will. The Government continue to monitor the situation closely. However, commercial transactions are primarily a matter for the parties involved. It would therefore be inappropriate to comment on the potential consideration of this or any other case.

[Lord West of Spithead (Lab)]

My Lords, I thank the Minister for his Answer. I thought that the Government had made very clear that they feel sovereign capability in these high-tech areas is hugely important for the nation, certainly in defence terms. We have now seen a succession of takeovers of highly capable British firms with a lot of high-tech workers and a huge amount of intellectual property by primarily American groups that are not primarily defence firms. Although promises have been made, I am afraid that, in terms of keeping the firms in being and running them as they were, those promises do not seem to have been kept. This is extremely worrying. Is there some way more than he has already described of ensuring that we do not lose high-tech jobs, that these firms are not broken up and that we keep a controlling interest? Is there, for example, any sense in having a golden share?

[Lord Callanan (Con)]

The noble Lord is tempting me down a path down which I cannot go. The United States is a valued trade partner and a large source of inward investment in the UK. UK and US officials work closely together to protect against any hostile foreign investment that threatens our shared security. We have a shared interest in keeping important defence suppliers in safe hands.

[Lord Trefgarne (Con)]

My Lords, can my noble friend confirm that the nuclear warheads fitted to our Trident missiles, which form such an essential part of our continuous at-sea deterrence posture, have been, and always will be, manufactured in the United Kingdom, and that if Scotland chooses to leave the United Kingdom, Faslane and Coulport will have to be shut?

[Lord Callanan (Con)]

I can indeed reassure my noble friend that the UK’s replacement warhead will be designed and manufactured in the United Kingdom. While work continues with US counterparts to ensure that the UK replacement warhead remains compatible with the Trident missile system, the requirements, design and manufacture of the warheads are sovereign to each nation.

[Baroness Wheatcroft (CB)]

My Lords, the undertakings given by Parker-Hannifin last for only one year. Does the Minister believe that they should be extended if jobs in this country, and other things, are to be safeguarded by those undertakings? Could he update the House on how the investigation into the Chinese takeover of Britain’s largest computer chip manufacturer is progressing?

[Lord Callanan (Con)]

Those are competition concerns. I am in a difficult position, as noble Lords will understand. It is a quasi-judicial process, and it would not be appropriate for me to comment on the details of the specific commercial transactions of any security or competition assessments that are currently taking place.

[Lord Rooker (Lab)]

When manufacturing and defence of the realm are concerned, I want a hard-line, patriotic Minister, not a weak, sell-out capitalist. Which is the Secretary of State?

--- Later in debate ---

[Lord Callanan (Con)]

The noble Lord knows me well, and I would love to engage in debate with him on this issue—because of course he is wrong—but I cannot comment on the specifics of this case. Whether the Secretary of State takes the decision to intervene is a quasi-judicial matter.

[Lord Lee of Trafford (LD)]

My Lords, going somewhat wider, is not the failure by UK investors properly to value many quality companies in the defence sector, such as Meggitt, Ultra and possibly Cobham in the past, the real reason for the spate of takeovers? In this regard, does not the abject failure of television to cover stock market investment and our hugely important savings and investment industry bear some responsibility? With financial education so lamentable, does this not explain why thousands sadly leave money in the bank, earning zero interest, when they could put some into a company of the stature and strength of, say, Legal & General, which offers a dividend yield of 6.5%?

[Lord Callanan (Con)]

I know of the noble Lord’s campaign to raise awareness of the important work and value of private UK companies, but as I mentioned in my Answer to the noble Lord, Lord West, we value trade and investment into the United Kingdom. We believe in an open trading environment, and that is why the noble Lord, Lord Rooker, is wrong. We cannot just exist on an individual basis, not taking account of trade in the rest of world. We are proud to be one of the largest sources of inward investment in Europe, and long may that continue.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, as others have said, we need a defence industry that is secure for jobs and the economy but also whose technology is secure from hostile hands. Given that, as the noble Baroness, Lady Wheatcroft, said, the assurances of jobs from Parker are for only a year, can the Minister indicate whether he considers that a more thorough assessment is needed? Also, had the new national security and investment regime been in place now, would the Meggitt takeover have been caught by the definition for mandatory notification?

[Lord Callanan (Con)]

The answer to the second part of the noble Baroness’s question is yes. On the first part, it is a quasi-judicial process, and the Secretary of State has not taken a decision on it, so I cannot go any further than what I have said so far.

[Lord Holmes of Richmond (Con)]

My Lords, what steps have the Government taken to strengthen their investment screening processes?

[Lord Callanan (Con)]

As I just indicated in my answer to the noble Baroness, Lady Hayter, this House debated at length and passed the National Security and Investment Act, which strengthens the Government’s powers. That Act is in the process of being implemented now. We have already passed a number of statutory instruments, and it will commence fully in early January.

[Lord Browne of Ladyton (Lab)]

My Lords, 85% of defence R&D is government funded. In the integrated review, the Government promised a defence and security industrial strategy that will “prioritise UK industrial capability”. Announcing it, Defence Minister Jeremy Quin said the DSIS

“will help retain onshore critical industries for our national security and our future.”—[Official Report, Commons, 23/3/21; col. 797.]

First Cobham, then Ultra Electronics and now Meggitt—these are all critical industries for our national security and our future. At what point will the Government follow their own strategy and try to slow the current US equity fund-led spree of buying these businesses?

[Lord Callanan (Con)]

The current takeover is not by an equity fund but a defence contractor. As I said, we welcome investment into the UK but will not hesitate to take action if it threatens or compromises our national security.

[Baroness Smith of Newnham (LD)]

My Lords, Tom Williams of Parker told the Financial Times that he was open to talking to Ministers and, in particular, said:

“We recognise the importance that everybody has around national security and defence capabilities. We want to reassure people that we have no intention of impacting that.”


That is fine in this case, perhaps, but what assessment have the Government made of bids where those wishing to take over sovereign defence capabilities do not have such apparently benign aims?

[Lord Callanan (Con)]

As I said, we have not taken any decision on the current takeover yet, but the UK will always enthusiastically champion free trade, recognising that the vast majority of inward investment into this country is highly beneficial and creates jobs and prosperity for the country. An open approach to international investment, as many other countries have, has to include the appropriate safeguards. We have powers under the Enterprise Act 2002 to intervene in mergers or takeovers that raise particular public interest concerns. As I have intimated in other answers, we have recently strengthened our powers through the National Security and Investment Act, which will commence on 4 January.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked and we now move to the next Question.

Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021

Lord Callanan Excerpts

Wednesday 15th September 2021 Lords Chamber

Moved by

[Lord Callanan]

That the Regulations laid before the House on 1 July and 5 July be approved.

Relevant document: 9th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 14 September.

Motions agreed.

European Union Touring Visas

Lord Callanan Excerpts

Tuesday 14th September 2021 Lords Chamber

[Lord Aberdare]

To ask Her Majesty’s Government, further to their announcement on 4 August that United Kingdom musicians and performers will not need visas or work permits for short-term tours in 19 European Union countries, what plans they have to seek similar arrangements for (1) mountain guiding professionals, and (2) other service providers whose livelihood depends on touring in European Union countries.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The Government are committed to supporting individuals and businesses to adjust to our new relationship with the European Union. The types of activity that UK service providers can undertake without visas or work permits vary by country. We have published detailed guidance on GOV.UK to help business travellers navigate these rules. We engage regularly with our embassies and welcome the opportunity to speak with member states to improve mutual understanding of our respective systems.

[Lord Aberdare (CB)]

My Lords, many UK providers of specialist services across European borders—in sport, travel, events, cultural and creative industries and numerous other sectors—are deeply concerned at the risk of losing their businesses because of the omission of such services from the trade and co-operation agreement, and feel a growing sense of abandonment by Her Majesty’s Government. Many, such as mountain guides, hold advanced UK qualifications. What are the Government doing to accelerate the process for achieving the mutual recognition of such qualifications? What practical, immediate support will they offer to those service providers who can no longer operate under the terms of the TCA or within the multiplicity of different requirements for working in individual member states—including those under which the Government claim that visa-free and permit-free touring are possible?

[Lord Callanan (Con)]

The noble Lord asks a number of questions. This is a complicated area. Of course, the requirements differ by member state, and different qualifications and regimes are applicable in each member state. We are engaging with all member states through our embassies and contacts in the EU to try to improve the situation and provide advice, encouragement and support for them to liberalise their regimes and provide the service providers mentioned by the noble Lord with the appropriate support.

[Lord Faulkner of Worcester (Lab)]

My Lords, I declare an interest as a patron of the International Guild of Battlefield Guides. The guild’s UK members fall exactly within the description in the second part of the Question asked by the noble Lord, Lord Aberdare. Will the Minister support the restoration of a level playing field so that guild members may continue to provide guiding services in EU and EEA countries on the same basis as that on which guides from those countries are able to operate in the United Kingdom? Will he also support the guild in achieving recognition by EU/EEA nations of UK tour guide qualifications in the way described by the noble Lord, Lord Aberdare?

[Lord Callanan (Con)]

We will certainly support the guild and its professional qualification associations in achieving mutual recognition. If battlefield guides come under the responsibility of tour guides, which we think they do, that is a regulated profession in 14 EU member states.

[Lord Strasburger (LD) [V]]

My Lords, following the Government’s announcement on 4 August, I wrote to DCMS asking what, if anything, had changed for performers wanting to perform in Europe. Last week, I received a long reply from the Secretary of State that said nothing to justify the claims in the August announcement. Can the Minister comment on the industry’s view that the August announcement contained nothing new and was a “cruel hoax” on struggling performers and their crews?

[Lord Callanan (Con)]

I do not agree with the noble Lord. The Government have established that many touring activities, such as taking part in music festivals, are possible in at least 19 out of 27 EU member states, including France, Germany and the Netherlands. We were clarifying the law and the rules in those countries for the benefit of travelling musicians.

[Lord Berkeley of Knighton (CB)]

My Lords, I know that various government departments, particularly DCMS, are working hard to get bilateral agreements, which are certainly better than nothing. Can the Minister confirm that Spain will be top of the priorities? Secondly, have the Government made any assessment of the ETIAS regulations that Europe will implement in 2022? Will they help or just act as another burden of red tape and bureaucracy?

[Lord Callanan (Con)]

As I said, we are working closely with the various professional associations and seeking to clarify the law in existing member states through our embassies, with which we are working closely. We want to provide as much clarity as possible. I am afraid that I do not have information on whether the ETIAS regime will change the situation, but I would be happy to write to the noble Lord.

[Lord Flight (Con)]

My Lords, the noble Lord, Lord Aberdare, is asking whether the Government might seek similar arrangements with 19 EU countries to end the visa and work permit requirements for those providing short-term tours and mountain guides. I wish the negotiators good luck, but I suspect that the European Union, especially France, might take a more protectionist view, especially where ski guides and instructors have had to be fully French-trained.

--- Later in debate ---

[Lord Callanan (Con)]

My noble friend might be right. If noble Lords cast their minds back even to when we were part of the free-movement regime, it was already difficult in some member states, particularly France—which is particularly awkward about these matters—for ski instructors and others to practise their professions. That was true under the old EU arrangements, so I suspect it would be similarly difficult now.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, whether it is performers, their back-up teams, interpreters, ski instructors or battlefield guides, the Government simply forgot about citizens when they negotiated the Brexit deal. Indeed, had they negotiated a Brexit deal rather than an “exit at any price” deal and put citizens at the heart of it, these difficulties might never have happened. Can the Minister assure the House that real priority and urgency will be behind their efforts to put the future of these professionals at the heart of what they now do?

[Lord Callanan (Con)]

I am afraid that the noble Baroness is simply wrong in the first part of her question. We tried to negotiate an ambitious deal on recognition of different qualifications and movement with the European Union, and it rejected our proposals. On the second part of her question, I agree with her and we will now try to work with all the associations and individuals to improve the situation.

[Lord Addington (LD)]

My Lords, it is clear that the Government have actually added bureaucracy for anybody who is taking a small band across Europe, for example, and wants to play in more than three or four countries. Given that, will the Government give some form of assistance to ensure that people have enough clerical support and knowledge to actually fill in all the forms they are now presented with?

[Lord Callanan (Con)]

We are attempting to provide as much clarity as possible. It is difficult because, of course, the regimes are different in every member state. They have different immigration regimes and different enforcement regimes, but we are endeavouring to provide as much clarity as possible and we are publishing that information on GOV.UK.

[The Lord Speaker (Lord McFall of Alcluith)]

Lord Mann? He is not here. I call Baroness Altmann.

[Baroness Altmann (Con)]

My Lords, given that these impacts were known and understood during the Brexit negotiations, has the pandemic had any particular effect on this problem? What measures did the Government intend to introduce alongside the trade and co-operation agreement to protect and support these citizens?

[Lord Callanan (Con)]

It is difficult to disaggregate the effects of the pandemic from those caused by EU exit. We will see the full effects in the fullness of time, but we are certainly endeavouring to provide as much support to individuals as possible. As I said in my answer to the noble Baroness, Lady Hayter, we tried to negotiate these provisions as part of the TCA, but the EU rejected it.

[The Earl of Clancarty (CB)]

My Lords, the Minister will be aware that the big problem for the creative and service industries is being able to move easily across borders without red tape or incurring extra cost. For the music industry, the key problem in this regard is cabotage. When will the Government respond to the summer consultation on this, to which the noble Baroness, Lady Barran, referred in answer to a question last week, bearing in mind that the industry is asking for an exemption from cabotage and cross-trade laws for vehicles carrying passengers and equipment, as the rules agreed through the TCA are prohibitive?

[Lord Callanan (Con)]

The Department for Transport has been working closely with the industry to see what unilateral measures the Government could take to support the industry. We are currently considering the evidence that we gathered from the call for evidence that was taken, as the noble Lord says, over the summer. We will endeavour to update the sector on our approach later this year.

[Lord Moynihan (Con)]

My Lords, pursuant to the commitments given in this House by the noble Lord, Lord Grimstone, and the offers of assistance to the British Association of Snowsport Instructors by government on behalf of members of the Alpine Sports Group, does the Minister agree that it is absolutely imperative that the Government redouble their efforts to remove employment restrictions on British nationals working as mountain guides, ski instructors and employees of ski holiday companies in order to counter the negative impact of Brexit on British winter sports tourism and UK snowsport professionals?

[Lord Callanan (Con)]

First, I wish my noble friend a happy birthday which, I understand, was yesterday. It was a shame that he had to spend it voting on the Environment Bill in the House, but I am sure that he enjoyed himself anyway. We recognise how important it is for UK businesses, including those in the winter sports industry, to be able to send their employees across borders quickly and easily. As I said in an earlier answer, EU member states are principally responsible for deciding the rules governing what work UK visitors can undertake in their own countries. However, we met in July with representatives of the UK snowsports organisations to try better to understand the constraints placed on them and to work with them to alleviate those concerns.

Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021

Lord Callanan Excerpts

Tuesday 14th September 2021 Grand Committee

Moved by

[Lord Callanan]

That the Grand Committee do consider the Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021

Relevant document: 9th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the draft lighting products regulations were laid before the House on 1 July 2021 and the draft amending regulations were laid before the House on 5 July 2021. Before I begin, I will provide a brief overview of ecodesign and energy labelling and what these policies try to achieve.

Ecodesign policies regulate products that consume energy when in use, such as lighting products, by setting minimum energy performance standards to increase their energy efficiency. More recently, ecodesign policies have included resource-efficiency measures, which seek to make products more repairable and recyclable, thereby reducing the use of material resources. Ecodesign policies make the products that we use in our homes and businesses more environmentally friendly and support long-term product innovation. Energy labelling policies make clear and consistent information on a product’s energy use readily available to consumers at the point of purchase, to help them make more informed purchasing decisions. In effect, energy labelling encourages the uptake of more energy efficient products, thereby reducing energy usage and saving consumers and businesses money on their energy bills.

Taken together, these policies make an important contribution to reducing energy use, improving environmental outcomes and cutting energy bills. It is expected that the full suite of ecodesign and energy labelling policies in force in Great Britain will save consumers about £75 on their energy bills and save 8 megatonnes of carbon dioxide in 2021.

The lighting products regulations will raise the minimum energy efficiency of lighting products on the market in Great Britain. In effect, this will phase out the least energy-efficient lighting products—in other words, the costliest and most environmentally damaging products to run. The lighting products regulations will replace the existing energy label with a rescaled label, moving from an A++ to E scale to a simpler A to G scale, making it easier for consumers to identify the most energy efficient lighting products. New innovations in lighting technology have led to lighting products becoming much more energy efficient than they were a few years ago, making it necessary to rescale the energy label to show the difference in efficiency more clearly between today’s products. By setting ambitious boundaries for the A to G classes on the energy label, this policy will spur innovation in the design of lighting products as manufacturers compete to achieve the highest energy efficiency ratings.

In addition to rescaling the energy label for lighting products, the union flag must now be displayed on the label for products on the GB market, rather than the EU flag. The lighting products regulations reflect the technical requirements of two EU regulations, which the UK supported when it was a member state and which began to apply in Northern Ireland, under the terms of the Northern Ireland protocol, and the EU on 1 September.

By introducing these more ambitious and environmentally friendly ecodesign and energy labelling requirements, we will ensure that we will maintain high product standards in Great Britain and push the market to achieve even greater carbon savings. The measures introduced by the lighting products regulations will contribute savings of approximately 1.8 megatonnes of carbon dioxide in the UK by 2030, which increases to 2.6 megatonnes of carbon dioxide by 2050. On top of this, the resultant reduction in energy use will cut much money from household and business energy bills.

Lastly, introducing these requirements in Great Britain will ensure a mostly common set of product standards with Northern Ireland, thereby avoiding any technical barriers to trade across the Irish Sea and between Great Britain and the EU. A public consultation was conducted between November 2020 and January 2021. Feedback on the consultation proposals showed strong support for implementing these new requirements in Great Britain.

Moving on to the second instrument, the amending regulations will make amendments to retained EU ecodesign and energy labelling law in force in Great Britain. The EU has recently made these same amendments to its equivalent legislation, which must be complied with in Northern Ireland under the terms of the protocol. Therefore, this SI ensures that we avoid technical discrepancies with the equivalent legislation in force in the EU and Northern Ireland.

The amendments this instrument makes are to servers and data storage products with respect to ecodesign; and electronic displays, household refrigeration, dishwashers, washing machines and washer-dryers with respect to energy labelling. The amendments correct technical errors and improve accuracy with the aim of facilitating the understanding of and compliance with the requirements by product manufacturers.

Further, as for the lighting regulations, implementing these amendments in Great Britain avoids technical barriers to trade between Great Britain and Northern Ireland, and Great Britain and the EU as there will be mostly a common set of standards. A consultation was again conducted between March and April 2021 with those who will be impacted by the legislation. Respondents were supportive of implementing these new requirements in Great Britain.

In conclusion, introducing the lighting products regulations and the amending regulations is aligned with the Government’s ambitions to achieve our carbon budgets and our net-zero target. It will take us ever closer to reducing our energy use and environmental impact. Furthermore, both SIs will avoid technical barriers to trade and ensure an effective regulatory environment for business, while also providing greener choices for consumers and encouraging product innovation. I commend the regulations to the House.

[Baroness Ritchie of Downpatrick (Non-Afl)]

I thank the Minister for his explanation of these regulations. This is my first time in a statutory instrument debate actually in the Moses Room because I always used Zoom over the last 15 months; notwithstanding that, I am very pleased to see everybody in the flesh.

I have certain questions. I am not opposed to these regulations or what they contain because I firmly believe in striving for climate change mitigation and for energy efficiency, which would help mitigate costs for the consumer. However, in that regard I have some questions and I hope the Minister might be able to provide me with answers. Does the new labelling scale indicate levels of greater safety? I do not think there is an indication of that. Who will monitor the safety of all these lighting appliances? Will there be reports on carbon reduction in relation to these lighting products to COP 26 in Glasgow in a couple of months’ time? Will Parliament receive an ongoing annual report about achieving zero targets in relation to lighting products?

I would be most grateful if the Minister could clarify whether there is any difference between what currently exists and what will exist under these new labelling arrangements. I would also like to ask the Minister what training will be provided to suppliers in terms of the new energy labels. I always fear that, when new labelling comes into play, a cost to the suppliers and those involved in the construction will be attached. I hope that the reduction in energy bills will not result in an increase, or no reduction, because of the costs that will be involved in the manufacture of these new labels. Could the Minister provide me with some detail on that? Will funding support be provided to small suppliers, because they will not have the type of financial outlay that bigger suppliers will?

Apart from flag designations, what other technical differences could exist? Could the Minister advise on that? Will electrical products conform to energy efficiency and climate change mitigation requirements? How will all this assist business development?

I notice that two of the regulations refer to the Northern Ireland protocol. I am glad to note that these are not areas where the contention will apply and that, generally, for these goods and services, there have been no impediments and there will not, we hope, be any. Could the Minister indicate whether he has received specific representations or overtures in relation to the application of the protocol? I note that these regulations apply to England, Scotland and Wales; I therefore assume that the Department for the Economy in Northern Ireland will have responsibility for lighting appliances from the Northern Ireland protocol perspective.

I look forward to the Minister’s answers on this welcome piece of legislation.

--- Later in debate ---

In finishing, I remain in firm approval of these regulations.

[Lord Callanan (Con)]

My Lords, I thank the noble Baroness, Lady Ritchie, and the noble Lord, Lord Grantchester, for their contributions to this debate.

As I have said before, the Government are committed to delivering on their carbon budgets and net-zero target. The lighting products regulations will make a modest contribution to achieving those targets by setting higher product standards. I will reiterate the figures for the benefit of the noble Lord, Lord Grantchester: 1.8 megatonnes of carbon savings will be made in the UK by 2030, which will increase to 2.6 megatonnes of carbon dioxide by 2050. The amending regulations will help to achieve this by safeguarding the carbon savings that will be secured from our retained EU law.

On the questions posed to me by the noble Baroness, Lady Ritchie, on product safety, which of course is not part of these regulations, the Office for Product Safety and Standards enforces ecodesign and energy labelling requirements placed on manufacturers and importers across the UK. Trading Standards and the Department for the Economy enforce energy labelling requirements placed on retailers in Great Britain and Northern Ireland respectively. The Advertising Standards Authority is responsible for ensuring that marketers’ advertising of energy labelling across various forms of media is in accordance with UK advertising codes. All market surveillance authorities work hard to uphold high product standards on the UK market and to ensure that businesses are supported to understand their obligations.

I can also tell the noble Baroness that there are currently no plans to report on the specific carbon-saving reductions from these regulations, but of course the Government will update Parliament on their carbon-saving targets on a more aggregate level. She also asked about differences between old and new requirements. The main difference introduced by these new energy-labelling requirements is the reinterpretation or reintroduction of the simple A to G scale. Many products under the previous regulations achieved A+ or A++ ratings, so the new scale has been reorientated to make them more understandable for consumers and enable consumers to better discern the most energy-efficient products. This would also encourage innovation by manufacturers to achieve the highest rating. We know that industry is already innovating to meet the highest levels of energy efficiency from lighting products, and we are working with it to understand how these technologies can go further to save even more energy, reduce carbon and of course, at the same time, reduce consumer bills.

On the noble Baroness’s questions about support to businesses, we expect the new requirements to have very limited impact on small businesses. Nevertheless, we have ensured that we work closely with suppliers of the affected products to help them understand the new requirements, and we have liaised closely with trade associations, which play a vital role in providing guidance to small and medium-sized businesses. Despite the new regulations creating some small new costs to manufacturers in the short term, they will in the longer term save businesses and consumers money on their energy bills. We estimate a net saving of something like £18 million a year for businesses up to 2050, due to their reduced energy bills. It is also important to emphasise that no products are being taken off the market; if they are currently on the market, you can sell out supplies of existing products before you need to move on to the newer ones, so nothing will be scrapped and nothing wasted.

With regard to working together with the noble Baroness’s home Province of Northern Ireland in relation to implementation of energy labelling, we work closely with officials in the Northern Ireland Executive to ensure that they are aware of the new requirements, including in relation to enforcement of these regulations on retailers, which, as I said, is the responsibility of the Department for the Economy in Northern Ireland. The OPSS enforces requirements on suppliers across the UK and has an excellent relationship with stakeholders in Northern Ireland.

I move on to the questions from the noble Lord, Lord Grantchester, who asked about awareness of the new regulations. The noble Lord can be assured that we have engaged extensively with the lighting industry to communicate the changes to the regulations, and we have provided guidance and support to manufacturers that have taken the trouble to contact us directly. The OPSS has also communicated widely to remind businesses of the new regulations coming into force.

On light pollution, ecodesign and energy labelling have played an important role in contributing to reducing UK emissions, and we believe that additional savings through better policy could make an important contribution to the Government’s carbon budget targets and to net zero. We are always exploring whether further energy savings could be made by using light products in smarter ways, which would help to contribute to an aim that we all share—that of reducing excess light pollution. The noble Lord can be assured that we will work closely with our colleagues in the Department for Environment, Food and Rural Affairs to see what more can be done with using smart lighting products and so on to reduce light pollution.

To close, I underline once more that the main purpose of these regulations is to raise the minimum energy efficiency of a range of lighting products sold in Great Britain and to reform energy labels for lighting products by rescaling the energy classes and introducing an energy scale. Both SIs will help to avoid technical barriers to trade, while also bringing significant benefits to consumers in the form of reduced energy bills and to the environment in terms of lower emissions. With that, I commend these regulations to the House.

[Lord Grantchester (Lab)]

May I just delay the Committee for one short moment and thank the Minister for clarifying those figures on the savings from the lighting regulations? However, could he perhaps write to me with wider details of what the power generated is in a more total setting of the lighting industry, and what percentage these savings should represent against that total?

[Lord Callanan (Con)]

Of course, I would be very happy to write to the noble Lord with that information.

Motion agreed.

Ecodesign for Energy-Related Products and Energy Information (Amendment) Regulations 2021

Lord Callanan Excerpts

Tuesday 14th September 2021 Grand Committee

Moved by

[Lord Callanan]

That the Grand Committee do consider the Ecodesign for Energy-Related Products and Energy Information (Amendment) Regulations 2021.

Motion agreed.

Status of Workers Bill [HL]

Lord Callanan Excerpts

2nd reading
Friday 10th September 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, I congratulate the noble Lord, Lord Hendy, on securing a Second Reading for his Private Member’s Bill. I thank all noble Lords who have contributed. We had contributions from all sides of the House, except, surprisingly, from the Liberal Democrats. We had no contributions from the Liberal Democrat Front Bench or Back Benches. Perhaps it is a subject that they think is not so important.

Let me begin by recapping how our current employment status framework operates. Individuals’ employment rights are determined by their employment status. Employment status is based on the nature of the relationship between an individual and the person for whom services are provided. In the UK, there are three employment statuses. Is “statuses” a word? I think it is. Employees are entitled to all rights, subject to qualifying periods, and have responsibilities towards their employer. Limb (b) workers—which I realise is an unusual term but is how they are defined in legislation—are entitled to only some rights but have increased flexibility with more freedom over when, how much and where they work. Self-employed individuals generally have no employment rights but have complete flexibility in their work since they are in business for themselves. Agency workers can have any of the employment statuses I have described, but they benefit from additional protections under separate legislation.

I agree with many of the points made by my noble friend Lord Moylan and believe that our three-tiered employment status framework provides the right balance for the UK labour market by allowing flexibility, for both employers and individuals, while ensuring workers have fundamental protections, such as entitlement to a national minimum wage and the right to holiday pay.

Turning to the contents of the Bill, I understand that the noble Lord, Lord Hendy, introduces this Bill to ensure that vulnerable workers are protected from exploitative practices. The Government share his concerns, which were also expressed by a number of other Peers including the right reverend Prelate the Bishop of St Albans, and it is clear that everyone deserves to be treated fairly at work and rewarded for their contribution to the economy, in terms of both fair pay and fair working conditions. However, the Government do not believe that this Bill is the best way to achieve this goal. I believe that creating a single worker status would inevitably stifle the flexibility and dynamism of the UK labour market when it is most needed to help the economy recover from the pandemic.

As the noble Baroness, Lady Greengross, observed, the world of work is changing. Recent case law, such as the Uber Supreme Court judgment—I listened with great interest to the excellent contribution to the debate by the noble and learned Lord, Lord Etherton—has acknowledged that those who work in less conventional ways, including gig workers, can work flexibly and have fewer responsibilities to their employers and still be entitled to a number of important rights.

I believe that, rather than protecting vulnerable workers—here I disagree with the noble Lord, Lord Hendy—removing the limb (b) worker status may create a bigger cliff-edge between a single worker status and self-employed status. It could introduce a stronger incentive for businesses to opt for self-employment models, potentially even leading to a number of current limb (b) workers losing entitlement to employment rights rather than gaining more, and I am sure that that was not the noble Lord’s intention.

However, the Government recognise that it can be difficult to determine the employment status of some individuals with less traditional employment relationships, including in the gig economy. As the noble Baroness, Lady Donaghy, said, individuals need to understand their rights. We will continue to consider options to improve clarity around employment status, engaging externally with interested parliamentarians and across government on how best to address those issues in a post-Covid scenario.

Finally, I remind noble Lords—in particular my noble friend Lord Blencathra, who asked about this—of the number and range of actions the Government have taken, and are committed to take, to protect vulnerable workers while maintaining the flexibility of the labour market. Our comprehensive economic response to the pandemic has protected something like 14 million jobs and people through the furlough and self-employed schemes at a cost of £88.5 billion.

We took action to make sure that workers on zero-hours contracts have not been stopped from looking for or accepting work from another employer, and banned the use of exclusivity clauses in zero-hours contracts to give workers more flexibility. When parliamentary time allows, the Government will also bring forward a measure to request a more predictable contract to give qualifying workers greater certainty around their hours and income.

We will extend the permissible break in continuous service for employees from one week to one month. This measure will make it easier for those who have intermittent or flexible working patterns to access employment rights and will deter businesses from engineering breaks in employment to deny individuals important employment rights.

I will respond directly to the point from my noble friend Lord Holmes of Richmond about unpaid interns. The existing legislation and enforcement are sufficiently robust to ensure that workers undertaking work experience or internships should get the national minimum wage. If anyone thinks they should be getting the national minimum wage and are not receiving what they are entitled to, they can complain to HMRC or call the ACAS helpline; complaints are anonymous. I hope that deals with the point made by my noble friend.

In conclusion, I thank the noble Lord, Lord Hendy, for bringing the Bill to the House and enabling this debate. I have not been convinced that the Bill is the right solution to further protect those in insecure work, but the Government will continue to take steps to protect vulnerable workers where needed, including through the forthcoming Employment Bill.

Climate Change

Lord Callanan Excerpts

Tuesday 7th September 2021 Lords Chamber

[Baroness Ritchie of Downpatrick]

To ask Her Majesty’s Government what assessment they have made of the report by the Intergovernmental Panel on Climate Change Climate Change 2021: The Physical Science Basis, published on 9 August.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The Government are deeply concerned about the findings of the IPCC’s latest report, which shows that there is no doubt that human activity has changed the climate. The report is a further warning of the need for urgent global action to reduce greenhouse gas emissions over the next decade and reach net zero around 2050. This reinforces the importance of achieving the Government’s COP 26 objectives and the necessity of a UK transition to net zero.

[Baroness Ritchie of Downpatrick (Non-Afl)]

I thank the Minister for his Answer. Bearing in mind that he has indicated the Government’s concerns around the findings in the report, what new governmental, governance and statutory measures will the Government bring forward, in terms of amendments to the Environment Bill on Report and other means, to deliver on climate change and greenhouse-gas reductions? What plans will therefore be brought to COP 26 in Glasgow later this year, outlining that necessary climate-change stabilisation scheme?

[Lord Callanan (Con)]

I totally understand the noble Baroness’s point, but of course we have already legislated for the greenhouse-gas emissions, as covered by the Climate Change Act. It is therefore our position that we do not need to cover any further measures within the Environment Bill, as it is at the moment. Before COP, we will publish our net-zero strategy to set out our plans to meet these ambitious targets, and we have also engaged regularly with devolved Administrations.

[The Lord Bishop of Oxford]

My Lords, we all agree, I am sure, that the climate emergency is an immensely complex subject with many different facets. There is an urgent need and responsibility to educate and engage the public in responsible ways on the urgent priority of public and private action. Does the Minister agree that investment and a serious programme of public engagement are needed to combat climate change deniers, climate change delayers and those who say that there is no hope and nothing can be done? What are the Government’s plans for this?

--- Later in debate ---

[Lord Callanan (Con)]

The right reverend Prelate makes some good points, and of course tackling climate change must be a shared endeavour. Our ambition puts affordability and fairness at the heart of our efforts, and that goes hand in hand with supporting economic growth and prosperity. We support a number of campaigns to do exactly that, such as the Simple Energy Advice campaign and Together for Our Planet.

[Baroness McIntosh of Pickering (Con)]

I congratulate the intergovernmental panel on a serious and thorough piece of work and the action that our own Government are taking. How confident is my noble friend that countries, such as India and China, that are not yet doing enough will actually step up to the plate on the basis of the scientific evidence before us today?

[Lord Callanan (Con)]

That is the £6 billion CO₂ question, in that we will have to wait and see. A tremendous amount of diplomacy is going on. My right honourable friend Alok Sharma, the COP president, is obviously engaging extensively, and we hope that they will publish realistic NDCs before COP.

[Baroness Boycott (CB)]

My Lords, the UK still has no fully costed plan to reach net zero. The Office for Budget Responsibility has made it clear that the cost of delaying will increase dramatically the longer we do so, and then we will not get the benefits of a more sustainable society and a greener economy. This vacuum of clear policies is now giving space to those who have vested interests in delaying and continuing subsidies for polluting fossil fuels—so can the Minister give the House assurances that he will act swiftly to address this misinformation and ensure that, in the forthcoming spending review, there are long-term investment commitments that take full account of all these costs and benefits?

[Lord Callanan (Con)]

We are certainly committed to action. We have published a number of strategies—the hydrogen strategy and the transport decarbonisation strategy—and the net-zero strategy will be published before COP. The noble Baroness will understand that I cannot give commitments for the Chancellor in the spending review.

[Baroness Young of Old Scone (Lab)]

In the face of the IPCC red card to all of us, will the UK Government commit to a faster date than 2050 for achieving net zero and more ambitious targets than the emissions reductions of 68% by 2030 and 78% by 2035? The IPCC report definitely pointed those out as needed.

[Lord Callanan (Con)]

Achieving the targets that we have already set will be difficult enough. I like the noble Baroness’s ambition to go even further and faster, but I think that we will stick with what we have got for the moment.

[Lord Oates (LD)]

My Lords, a year ago when I asked the Minister whether it was not about time that the Government had a credible short-term action plan to tackle the climate emergency, he replied:

“Indeed, and we will be setting this out in due course.”—[Official Report, 6/10/20; col. 517.]


In light of the IPCC report, which makes it clear that global warming of between 1.5 and 2 degrees will be exceeded this century without drastic cuts in emissions, when can we expect to see that credible short-term action plan? I emphasise “credible”.

[Lord Callanan (Con)]

As I said in response to the previous question, we have published a number of our strategies. The heat and buildings strategy is to be published shortly; the net-zero strategy will be published before COP. We need to set an example, and we intend to do just that. These are difficult decisions involving a lot of different players within government, but we will endeavour to do so as quickly as possible.

[Lord Randall of Uxbridge (Con)]

My Lords, can my noble friend confirm Her Majesty’s Government’s assessment of the likelihood of meeting the Paris Agreement’s target of limiting global warming to 1.5 degrees centigrade?

[Lord Callanan (Con)]

Yes, our assessment is that it is still possible by the end of the century, but only with immediate and significant reductions in global emissions over the next decade and net zero by around 2050. It would be a challenge, but given concerted action across the world, we could still do it.

[Lord Grantchester (Lab)]

The IPCC report underlines the statistical proof of man’s footprint across the globe and that climate breakdown is already well under way and accelerating, with ocean acidification and glacier meltdown baked in for centuries to come. Does the Minister agree that the biggest threat that the world now faces is not climate denial but climate dither and delay? Will the Government now revise their NDC pledge to cut carbon emissions, on which my noble friend Lady Young sought clarification, and bring forward a more ambitious programme for action before COP 26?

[Lord Callanan (Con)]

As I said in response to a previous question, I admire the ambition of the noble Lord and his noble friend, but we have already achieved more than the vast majority of countries in the world. We have one of the most ambitious policies and one of the most ambitious reduction targets. We have made some of the fastest progress among all the G7 countries. Of course, it is right for the Opposition to keep pushing us to go further and faster, but we have done a lot.

[Lord Bilimoria (CB)]

My Lords, if anybody still has any doubts about the scale of the climate crisis, this report must surely put those to bed. As president of the CBI, I am very proud that one-third of the largest businesses in the UK with a market cap totalling £650 billion have already committed to net zero by 2050, but does the Minister agree that, although the UK’s 10-point plan is ambitious, we need to see more detail and clear timeframes for delivery?

[Lord Callanan (Con)]

Indeed. I can agree with the noble Lord on the first part of his question. It has been encouraging to see the number of major businesses that have joined us in the race to net zero. I pay tribute to the work of the CBI in helping us to do that. But we have already set a number of quite ambitious targets. We have legislated in this House for the carbon budgets, and we will produce the net zero strategy before COP, which will see further progress.

[Lord McColl of Dulwich (Con)]

My Lords, as the European continent in the Middle Ages warmed up by 1.5 degrees centigrade and then reverted to normal temperature after a century, can the Minister tell the House of two scientific facts that show that we can stop or reverse climate change?

[Lord Callanan (Con)]

The noble Lord invites me to indulge in a long debate about the validity or otherwise of the various reports and the IPCC report. Perhaps we could discuss it separately outside. However, the IPCC report was a major piece of work taking on board many of the assessments from world-leading scientists, and we would do well to take it seriously.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, since 2007, the IPCC has rapidly increased its assessment of potential sea level rises. When will the planning process reflect the fact that siting nuclear power stations in coastal areas is not a viable option?

[Lord Callanan (Con)]

The noble Baroness raises a valid point, because the effects of climate change include rising sea levels, but they are consolidated, considered and adapted throughout the lifetime of nuclear power stations. As the noble Baroness is of course aware, we have a robust regulatory framework. Planning permissions and environmental permit requirements mean that no site can be built or developed unless all these factors are taken fully into account.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked, and we now move to the next Question.

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2021

Lord Callanan Excerpts

Tuesday 7th September 2021 Lords Chamber

Moved by

[Lord Callanan]

That the Regulations laid before the House on 21 July be approved.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 6 September.

Motion agreed.

Deep Seabed Mining

Lord Callanan Excerpts

Monday 6th September 2021 Lords Chamber

[Baroness Bennett of Manor Castle]

To ask Her Majesty’s Government what plans they have (1) to support, and (2) to campaign for, an international moratorium on deep seabed mining.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the UK has a strong and respected voice in negotiations at the International Seabed Authority, where we continue to emphasise the need for the highest possible environmental standards. The UK has committed not to sponsor or support the issuing of any exploitation licences for deep sea mining projects unless and until there is sufficient scientific evidence about the potential impact on deep sea ecosystems and strong and enforceable environmental regulations and standards are in place.

[Baroness Bennett of Manor Castle (GP)]

My Lords, will the Minister acknowledge that the rules to which he just referred are unlikely to be in place by July 2023, when, under current international regulations, full-scale mining, not just exploration, can commence—expert observers say that they are unlikely to be in place then? Further, does he think it acceptable that the International Seabed Authority—the licensing body for mining—benefits from revenue from that mining, giving it a clear conflict of interest, and that it has never turned down an exploration application?

[Lord Callanan (Con)]

The problem with the noble Baroness’s call is that if we just announce a moratorium, it will have no practical effect—other nations would just get on and negotiate treaties accordingly. We think the best, most constructive thing to do is to engage and make sure that strong and enforceable environmental standards are in place before any mining takes place.

[Lord Randall of Uxbridge (Con)]

Notwithstanding the answer given just now by my noble friend, and bearing in mind that Her Majesty’s Government have said that they will not instigate any damage to the seabed until the scientific evidence is there, does it not surely make sense to encourage a moratorium—although, as he says, discussions should still take place?

[Lord Callanan (Con)]

I think my noble friend has said essentially the same thing: we should take part in constructive discussions; anything else is just rhetoric.

[Lord McNicol of West Kilbride (Lab)]

My Lords, deep seabed mining is associated with the fragmentation of ecosystems and the loss of marine species. As we know, one of the best solutions is recycling and reusing minerals such as magnesium, cobalt and zinc, which are often the targets of deep seabed mining. What plans do Her Majesty’s Government have to accelerate this principle of recycling? Can the Minister explain a little more about the consultation and discussions with the ISA?

[Lord Callanan (Con)]

The noble Lord is absolutely correct. The net zero campaign that we all contribute to and support will produce massive demand for many of those minerals, so investing in two new interdisciplinary circular economy centres—one on technology metals and one on circular metals—will help. Separately, Defra will be consulting later this year on new measures that will ensure that we better manage electronic waste and do more to drive up reuse and recycling, because of course that is a much preferable solution.

[Baroness Boycott (CB)]

Does the Minister agree that it seems deeply ironic that we are now about to dig up these nodules from the ocean without full knowledge of what that will do environmentally? We did the same with oil, and now we are trying to retract. As was just mentioned, recycling is one method of finding the metals that we need, but scientists now know that there are many other ways to produce the necessary batteries and technologies. In the same way that solar and wind power have now taken over from fossil fuels, we can avoid digging up the ocean. I would call for a moratorium, and I should like the Government’s opinion on how much R&D is going in the right direction.

[Lord Callanan (Con)]

I know that the noble Baroness is a big supporter of our net-zero policy, but many of the critical minerals found on the deep seabed are important and often irreplaceable in electric vehicle batteries, offshore wind turbines and other technologies. But of course we need to pursue alternative research and development, and find alternative battery technology, and, as the noble Lord, Lord McNicol, said, reuse and recycling will also be very important.

[Lord Bassam of Brighton (Lab)]

In the light of what the Minister just said, what metrics will the Government use to balance the need to reduce carbon emissions by encouraging the use of sustainable energy sources for the development of electric batteries against the potential for ecological damage caused by the extraction of seabed minerals used in battery production?

[Lord Callanan (Con)]

It is important to say that there are no mining projects ongoing at the moment; there is a discussion about possible mining projects in future. Our position is that we need to ensure that, before any projects take place, strong environmental regulations and controls are put in place, and we are playing a critical role in helping to ensure that.

[Baroness Sheehan (LD)]

My Lords, yesterday the congress of the IUCN, the International Union for Conservation of Nature, agreed the wording of a motion calling for a moratorium on deep seabed mining. How do our Government plan to vote on that?

[Lord Callanan (Con)]

We are engaging closely in the process. We will possibly abstain on the final resolution, but we are working closely with our international partners to drive this and ensure strong and sustainable progress.

[Lord Davies of Brixton (Lab)]

My Lords, the problem is the environmental degradation inherent in mining for manganese, nickel and cobalt, whether you do it from the seabed or on land. This issue has been mentioned already. Will the Government commit themselves to doing the massive research project that is required so that we can have batteries for our electric cars that do not require that sort of environmental degradation?

[Lord Callanan (Con)]

The noble Lord makes a very good point. Indeed, we are doing just that, with the Faraday challenge and many of our other R&D technologies. We have an extensive programme of research into new technologies. Of course we have to do that; I completely agree with the noble Lord.

[Baroness Stuart of Edgbaston (Non-Afl)]

My Lords, the integrated review quite rightly stresses the need to be an international lawmaker, and the United Kingdom should play a vital part in that. Given that the International Seabed Authority is part of the UN Convention on the Law of the Sea and that the United States has still failed to ratify that convention, will the Government use COP 26 and any other forum to ensure that the United States signs up to these international agreements?

[Lord Callanan (Con)]

The noble Baroness is quite right: the US is not part of the UNCLOS treaty; a number of other states are also not part of it. Of course we continue to engage with all our friends and partners internationally to encourage them to take part in these initiatives.

[Lord Berkeley (Lab)]

Does the Minister agree that, of the 12 countries on the list of countries that have exploration licences, a large number are clearly very small? They are reportedly relying on major international contractors to do all the work for them, including representing them on the International Seabed Authority. Does he therefore agree that there is a need for more independent technical expertise before this goes any further?

[Lord Callanan (Con)]

We work very closely with the companies based in the UK, including those to which we have issued exploration licences and those conducting R&D. That has produced a tremendous amount of research—something like 70 scientific papers so far—which of course we will seek to draw from. But we need to be responsible. The UK deciding not to take part in this and issuing a moratorium does not of course prevent other countries from doing it.

[Baroness Ritchie of Downpatrick (Non-Afl)]

My Lords, undoubtedly a moratorium is required. In view of this, will the Minister outline what steps the Government will take to safeguard our precious fishing industry and unique fish species?

[Lord Callanan (Con)]

Of course, safeguarding the marine environment is extremely important. We would engage in extensive public consultation ahead of making any decision to issue or sponsor any deep-sea mining exploitation licences. That of course would include engaging fully with the fishing industry.

[Baroness Wilcox of Newport (Lab)]

My Lords, BMW, Volvo, Google and Samsung are saying publicly that there should be a moratorium on the proposals to dig up metals from the deep sea and that other ways should be found to extract cobalt to make batteries to fuel the future switch to electric vehicles and increased mobile phone use. Can the Minister advise the House of the Government’s position on the views expressed by these major car and technology companies?

[Lord Callanan (Con)]

Well, of course they are entitled to their position; I would just advise the noble Baroness to read carefully exactly what they said in their declarations. The World Bank has estimated that something like 3 billion tonnes of metals and minerals will be needed to fully decarbonise the global energy system by 2050, so we must be careful, proceed with caution and do all the appropriate scientific analysis. But there is widespread support in this House for the net-zero challenge and we must provide the means to do it.