COP 27: Outcome

Lord St John of Bletso Excerpts

Tuesday 6th December 2022 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Lord’s initial comments about COP. I think it is worth being a little optimistic, in that over 90% of world GDP is now covered by net-zero commitments and 169 countries have put forward new or updated 2030 NDCs. However, I entirely agree with him that there is a lot more progress still to be made. This Government are very proud of our record. We have the world-leading net-zero commitment in law and all government departments are working together to deliver that.

[Lord St John of Bletso (CB)]

My Lords, one of the most significant challenges outlined at COP 27 was the rapidly increasing use of single-use plastics globally. The United Kingdom is one of the worst offenders, with almost 99 kilograms per person. What are the Government doing to address this and transition to more sustainable alternatives?

COP 27: Commitments

Lord St John of Bletso Excerpts

Thursday 24th November 2022 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I am grateful to my noble and right reverend friend Lord Harries for introducing this topical debate and join in congratulating the noble Lord, Lord Leong, on his most impressive maiden speech and his commitment to the work of your Lordships’ House with his vast experience.

I have to say that I have mixed emotions after this conference. My son, who is a climate change management consultant, was in Sharm el-Sheikh for the entire two weeks so I had a daily update on what progress was being made, and particularly on what progress was not being made. On the one hand, it was good news that the nations historically responsible for the climate crisis agreed to pay for the loss and damage that it is causing, particularly to less-developed countries. This is a huge step forward for justice. It is well known that Africa accounts for less than 4% of global greenhouse gas emissions but suffers from some of the worst impacts of climate change, from flooding to increased droughts and reduction in access to clean water, as well as food insecurity.

On the other hand—the negative—it was exasperating that, yet again, there was no tangible progress on emissions reductions and insufficient action to keep within the immediate 1.5 degrees centigrade global temperature rise. My noble and right reverend friend Lord Harries was right when he said that the 1.5 degrees centigrade target is us simply being on life support. If the global temperature rises to in excess of 2 degrees—figures have been raised of us potentially going irreversibly to 2.4 degrees—the Arctic is likely to keep melting and there will be flooding as a result in many parts of the world, which the noble Lord, Lord Desai, raised, and the coral reefs will continue to die.

Sadly, the loss and damage costs will inevitably come to exceed the ability of any group of countries to pay for them, and of nature to regenerate. One of the key points I want to make is that the 2 degrees increase in global temperature is not a target. It is a scientifically proven point of no return. I noted the comments of the United Nations Secretary-General at the start of the conference when he said:

“We are on a highway to climate hell with our foot on the accelerator.”


Despite the ambitious climate targets made at COP 26 in Glasgow last year, the Global Carbon Project reported that carbon emissions from fossil fuels hit a new record high this year and that they are on track to increase by 1% every year. The World Benchmarking Alliance found that 40% of financial situations disclosed long-term net-zero targets but only 20% acknowledged this impact. Renewables account for only 80% of new power generation capacity in 2021 but comprise only 4% of the global energy mix. It is well known that energy demand is expected to grow by 6% globally every year.

We are transitioning, but not fast enough. McKinsey estimates that to reach net zero by 2050, $275 trillion of investments will be required. That equates to $9.2 trillion a year. Clearly, the question is: where will this investment come from and how will the world be able to achieve a “just transition” to one that brings maximum energy to the planet with minimum emissions and, I hope, allows the underdeveloped world to see the standards of life that we see here in the West? While I warmly welcome our Government’s Ten Point Plan for a Green Industrial Revolution, can the Minister tell us what is being done to embrace new technologies and new innovations to achieve the objectives? This question was raised by the noble Lord, Lord Howell, and my noble friend Lady Worthington.

By way of example, algae when used in conjunction with AI-powered bioreactors is up to 400 times more efficient than trees at removing CO₂ from the environment. I welcome the initiatives of the Centre for Climate Repair in Cambridge, spearheaded by Sir David King, who was the Chief Scientific Adviser to four of our recent Prime Ministers. The centre is working on projects with the potential to remove at least 1 billion tonnes of CO₂ from the atmosphere per year, such as refreezing the Arctic by marine cloud brightening and marine biomass regeneration. I hope also that the Minister can give us more encouragement on what is being done in order to transition to more nuclear power in the UK.

When addressing climate change, we need to differentiate between mitigation and adaptation. It is clear that, with rising global emissions and a lack of policy consensus on how to reduce emissions, this COP has been a failure in the mitigation agenda, with a lack of a global road map for how to move forward. However, it has been heralded as a success in the adaptation agenda, helping the world to adapt to the consequences of climate change which are being felt, sadly, by many underdeveloped countries, including, I might mention, many countries in Africa, where I have a special interest.

We need to transition to a balance between mitigation and adaptation. On the positive side, one of the successful breakthroughs at the conference, which no one has so far mentioned in the debate today, was in the building sector. I understand that the global building sector accounts for 37% of global emissions. Countries and companies, both public and private, at the conference committed to transitioning to a net-zero building target with investment in green cement and tighter regulations. I notice that the noble Lord, Lord Birt, earlier was speaking about the call for decarbonisation of homes and buildings. Clearly, there has been a commitment and I hope there will be some follow through on this.

In conclusion, while I had mixed feelings about the successes and failings of the conference, I welcome the public and private sectors working together. The UK can, and simply must, do more to lead the global green transition and become a leading example of positive change.

Green Skills

Lord St John of Bletso Excerpts

Wednesday 9th March 2022 Lords Chamber

[Lord Callanan (Con)]

Yes, I am very happy to agree with the noble Lord on that point. He makes some good observations.

[Lord St John of Bletso (CB)]

My Lords, there is no denying that environmental illiteracy is a major problem in both the public and private sector. What measures are being taken to embrace technologies such as smart meters to change behaviours?

[Lord Callanan (Con)]

One of my ministerial responsibilities is the smart metering programme, which has quietly gone ahead in the background. I forget the exact figures, but I think we now have 25 million smart meters installed in this country, and the programme is already delivering net benefits. We have launched a publicity drive to drive take-up even further, and we are looking to see what we can do to expand it even more, because smart meters are a very good thing.

Republic of Cameroon: Economic Partnership Agreement

Lord St John of Bletso Excerpts

Tuesday 29th June 2021 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, before addressing my remarks on our interim trade agreement with Ghana, I share the concerns of the noble Lord, Lord Grantchester, and other noble Lords about the ongoing human rights abuses against the anglophone separatists by the Cameroonian Government’s forces. That needs to be kept under constant review. The call from the Under-Secretary of State for International Trade, Graham Stuart, for inclusive dialogue and an end to fighting in the north-west and south-west regions of Cameroon has, unfortunately, been falling on deaf ears.

As for Ghana, I have had a long-established relationship with the country, having visited Accra and particularly Kumasi many times. We are all very aware of the enormous opportunities in west Africa, particularly in Ghana, but equally cognisant of the scourge of corruption and lack of accountability and transparency.

Clearly, the interim trade agreement with Ghana, which is worth in excess of £1.2 billion, minimises trade disruption between our respective economies and provides more certainty to businesses and consumers, particularly in agriculture and trade services. I am grateful to the House of Lords Library for its breakdown of the exports and imports of our respective countries, but do not have time to comment on any of the specifics. I agree with all of your Lordships who have commented on the benefits of trade, and particularly this trade agreement, contributing to sustainable growth and poverty reduction in Ghana and providing a platform for greater economic and cultural co-operation.

There is a common need for many of the economies in west Africa to diversify from natural resources, and, in line with ESG, we need to be promoting responsible development in Ghana, not just in energy but infrastructure, health, fisheries, renewables, technology, telecommunications and, of course, agricultural projects, which benefit both the people and the economy. Can the Minister, in winding up the debate, elaborate on our Government’s plans to achieve a trade agreement with ECOWAS which will support regional integration in west Africa, and can he also comment on what assistance our Government are giving to Ghana to help roll out the vaccination programme, the lack of which is so severely stunting economic growth and recovery in the country?

In conclusion, I share the concerns of the noble Lords, Lord Purvis of Tweed and Lord Grantchester, that these agreements have not been subject to sufficiently detailed scrutiny, but I wholeheartedly support the interim trade agreement with Ghana.

Energy White Paper

Lord St John of Bletso Excerpts

Wednesday 16th December 2020 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a very good point. We will invest in the growth of the UK’s renewable manufacturing base to stimulate the UK’s supply chain. We will also support the delivery of the industry’s target of 60% of UK content in offshore wind projects by 2030 through requiring developers that are awarded a contract for difference to honour the supply chain plan that they put forward. We will put the UK at the forefront of manufacturing for wind turbines and, to support this growing industry, we will invest £160 million in modern ports and manufacturing infrastructure, providing high-quality jobs in our coastal regions.

[Lord St John of Bletso (CB)]

My Lords, in welcoming this White Paper and its ambitious programme, I declare my interests as disclosed in the register.

Given that 30% of UK households do not have access to off-street parking and it will take significant investment to upgrade electric vehicle charging infrastructure to meet future demand, what plans do the Government have to invest in hydrogen-powered infrastructure that is likely to be much more accessible and sustainable? Would it not be sensible for Her Majesty’s Government to invest more in technologies that would allow them to leapfrog battery-driven technologies straight into green hydrogen ecosystems?

[Lord Callanan (Con)]

Of course, huge amounts of money have been invested by both the Government and industry in the development of fuel cells, which are required for the use of hydrogen in vehicles. Again, I suspect that we will use a combination of technologies. Clearly, electric vehicles will have a huge role to play but, if fuel cell technology advances and the costs of hydrogen production come down, we will hopefully be able to have more vehicles powered by hydrogen as well.

COP 26: Sponsors

Lord St John of Bletso Excerpts

Tuesday 6th October 2020 Lords Chamber

[Lord Callanan (Con)]

I did not quite catch all that the noble Lord said but I can confirm that we are looking for both monetary and value-in-kind sponsorships from companies that, as I said, have a credible short-term action plan and are committed to net zero.

[Lord St John of Bletso (CB)]

My Lords, I apologise for having asked a question earlier on. Ahead of COP 26 next year and given concerns about greenwashing, and with the positive move of UK businesses pledging to environmental targets of net-zero carbon by 2050, what are Her Majesty’s Government doing to make sure that these companies deliver on these targets? With a gap of over 1 million people in the green economy, how are the Government promoting the upskilling of workers in this sector of the economy?

[Lord Callanan (Con)]

We will be closely studying and monitoring companies that come forward for these sponsorship opportunities, which will favour taxpayers’ money—that is the ultimate objective. We will study their plans carefully and monitor them as they progress.

Japan Free Trade Agreement

Lord St John of Bletso Excerpts

Thursday 17th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for his question. I can indeed confirm that there are a number of advantages for the creative industries coming out of this enhanced continuity agreement, and the details of them will become apparent when the agreement and assessment are published in due course.

[Lord St John of Bletso (CB) [V]]

My Lords, in welcoming this trade deal, I am particularly pleased that it removes trade barriers, delivering huge gains for the 8,000 UK SMEs exporting goods and services to Japan. I ask two questions. Overall, does the deal give better UK access than under the EU trade deal that was put into force in February last year? Following the question of the noble Baroness, Lady Blackstone, given Her Majesty’s Government's assessment that the trade deal could add 0.07% to UK GDP, what assessment has the department made of the effect of not agreeing a trade deal with the European Union?

[Lord Grimstone of Boscobel (Con)]

Again, I thank the noble Lord for his comments. There is a specific SME chapter in this agreement. It goes further than the previous EU chapter and the whole intent of that chapter is to make it easier for our SMEs to trade with Japan. Further details will be available on that in due course. I have not seen any assessment in relation to the EU of the sort that he mentioned, and I dare say that it has not been thought necessary because of the overwhelming view in this country that we should leave the European Union, which indeed we did on 1 January this year.

Economic Environment: Growth and Jobs

Lord St John of Bletso Excerpts

Thursday 11th July 2019 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I join in thanking the noble Baroness, Lady Neville-Rolfe, for introducing this topical and timely debate. I shall focus my comments on promoting job creation and business growth in the digital ecosystem. The industrial strategy made provision for substantial investment in digital infrastructure, as well as investment in talent and skills. My observations are less about the tax system, save for the tax incentives to invest in digital entrepreneurship through EIS and SEIS.

Last year I was fortunate to be a member of the ad hoc Select Committee on AI, ably chaired by the noble Lord, Lord Clement-Jones, in which we did a deep dive into both the benefits and the threats of AI. I am tempted to talk more about medtech, infotech, proptech and digitech, but in my limited time I will focus on the importance to our economy of fintech, a sector where the UK is arguably the global leader. Fintech is essentially a combination of financial services with innovation, with a multitude of benefits and savings. The UK fintech ecosystem has all the key elements for a world-leading environment where the industry can thrive with start-ups, entrepreneurs and technological innovation in abundance.

However, I must stress that this is not a time for complacency. As the noble Baroness mentioned in her introductory comments, the digital revolution has provided disruptive technology solutions to age-old as well as brand new problems, from efficiency and reliability to transparency and usability. It also poses a potential threat of massive job losses.

It is a sobering reality that there are currently 1.3 million unbanked working adults in the United Kingdom. Moreover, 16 million people in the UK have less than £100 in their savings account. Some 10% of households are still without access to the internet, and 30% of people over 65 have never used a computer. Fintech holds the key to unlocking and tackling financial inclusion, and it is a sector that places entrepreneurship at its heart. I entirely agree with the noble Baroness that we need to establish a culture of enterprise.

Start-ups are the lifeblood of the sector and are driving the digital economy forward. Banking the unbanked, highlighting affordable credit solutions and providing SME loans all combine to deliver the future that we all deserve. At a time when investors have less appetite for high risk, the tax incentives of EIS and SEIS for start-ups have been essential to the sustainability of many fintech businesses. Last year the United Kingdom had its best year ever in terms of fintech investment, with over £3 billion invested from private equity and VC investments alone. This puts the UK third in the sector, behind only China and the US. London has the world’s highest concentration of 64,000 financial and professional services firms. There are just over 1,600 fintech firms in the UK—a figure that is destined to double by 2030.

Key to the success of fintech in the UK are our progressive regulatory frameworks, enabling challenger banks, remittance providers and fintech pioneers to lay their foundations and rapidly scale up. There have as a result been several unicorns such as Revolut, Monzo and GoCardless. While there is a lot to be positive about in the fintech ecosystem, the future of Brexit will invariably pose a major threat to open borders and the international talent pool that is vital to the success of fintech in the UK. Immigration policy questions will continue to loom large in the light of Brexit uncertainty, and it is thus all the more important to grow the talent pipeline with a greater range of diverse talent at home. Can the Minister give assurances that there will be more provision for tier 1 exceptional talent visas to help retain and fill the demand for skilled labour?

I mention the challenge of diversity because at present, only 12% of senior executives in the UK fintech sector are female. We need policies that drive the recruitment of diverse talent, both to tackle the gender imbalance and to have a workforce with other skills backgrounds. I entirely agree with the noble Baroness, Lady Neville-Rolfe, that education is pivotal. I welcome the introduction of fintech courses, apprenticeships and sponsored work placements to strengthen the fintech talent pool, as well as the Fintech for Schools campaign, which educates young people in how to use fintech.

In conclusion, the UK, and particularly London, has built an incredible financial services community that, positioned correctly, can withstand techno-economic headwinds. But this is not a time for complacency; we need to focus our energies on collaboration rather than competition.

Artificial Intelligence (Select Committee Report)

Lord St John of Bletso Excerpts

Monday 19th November 2018 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I join in thanking the noble Lord, Lord Clement-Jones, for his able chairmanship of the ad hoc Select Committee on AI in the United Kingdom. In my many years in your Lordships’ House I have never been on a Select Committee that has been so absorbing and stimulating.

We are living in the most extraordinary times. The confluence of big data, connectivity and artificial intelligence has revolutionised old industries and created new ones. As the Industrial Revolution transformed the nature of manual work, so AI is set to change dramatically the nature of white-collar workers and the service industry, from chatbots replacing call centres, to those who make decisions on credit and even accountants—and, with the emergence of autonomous cars, truck drivers—being replaced. This confluence of change means that AI has reached a flashover point, with computer power, the availability of huge volumes of data and the fact that digital channels for interacting with businesses and citizens are now preferable.

Apart from the oral and written evidence, we were fortunate to visit Google DeepMind, the Microsoft research laboratories in Cambridge and the Alan Turing Institute, as well as techUK. My noble friend Lord Kakkar spoke most eloquently about chapter 7 of our report. This details the huge benefits that AI can deliver to healthcare, particularly in the National Health Service. This could include more effective detection of diseases, management of chronic conditions, drug discovery and, of course, delivery of more efficient health services. We are increasingly moving from a world of reactive medicine to one of proactive medicine.

However, one of the potential drawbacks in the National Health Service is the fact that that there is no centralised database, resulting in most data being kept in unrelated silos. While keeping data isolated made sense historically as a security measure, the data-driven world in which we operate demands greater visibility and consolidation. Machine learning provides unique value in being able effectively to remove the manual processing of data, thus significantly reducing back-end operating expenses.

Clearly, the management of data in the NHS requires strict adherence to data privacy—there are concerns about the criminal misuse of AI and data—and, as the noble Lord, Lord Reid, mentioned, respect needs to be given to data ethics and accountability. Concerns have been raised about the risk of abuse of AI and breaches not just of public trust but of data security.

Many fear that the merger of infotech and biotech could push many hundreds of thousands of people out of the job market, a point made by the noble Lord, Lord Hollick. Yes, there will be masses of job losses but, equally, replacement jobs will be created.

As the noble Lord, Lord Clement-Jones, said, there are concerns also that big data could create digital dictatorships. Our report covered the need for reasonable access to data, particularly for SMEs. While several are sceptical about the effective use of AI in the UK, our report sought to focus on the positive contribution that it can make to our lives in many different ways. One industry not mentioned in the report but to which the noble Baroness, Lady Rock, may refer is the agricultural sector, where AI can have a huge impact. We now have precision agriculture, where farmers are able to utilise drones in the sky, connected with the help of big data to sensors in the fields.

As the noble Lord, Lord Hollick, said, it was encouraging that the Government mentioned in their industrial strategy that AI and data capture need to be identified as one of the four grand challenges in which the UK can lead the world for years to come. To maximise this opportunity, we need more qualified data scientists who are able to use algorithms to sort through enormous databases, combining profiles, eliminating duplicates and thereby providing a complete and unified set of data. What plans do the Department for Education and other departments have to provide students with training to more effectively prepare them to embrace data scientific skills?

Trustworthiness underpins public support for data innovation. I have already referred to the benefits in healthcare and agriculture, but there are huge benefits also in the financial services sector and autonomous systems. Lessons have been learned from the fiasco of data breaches at Cambridge Analytica.

I want to make brief mention of the opportunities of blockchain technology, which is not just about cryptocurrencies but is more a transformational tool and game-changer for the future. Distributed ledgers can be created which will form a significant part of future databases, providing greater transparency and accountability to both the public and private sector.

There is no doubt that AI presents a significant opportunity to solve complex problems, boost productivity and accelerate innovation. We need to shift legacy mindsets to embrace new ideas. AI and machine learning need to be embraced while respecting privacy, ethics, transparency and good governance. I wholeheartedly embrace all the recommendations of our report and trust that the United Kingdom can consolidate and thrive as a global leader in the development of artificial intelligence.