Thursday 16th November 2023

(5 months, 4 weeks ago)

Commons Chamber
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Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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Simon Stiell, the UN climate executive secretary, said at COP27 that we need

“everybody, everywhere in the world, every single day, doing everything they possibly can to address the climate crisis.”

That is the scale of the challenge ahead of us, and the global stocktake synthesis report has underlined what is at stake. We are falling short on mitigation, adaptation and finance. Current NCDs are 20 to 24 gigatonnes of carbon dioxide equivalent short of what is needed to limit warming to 1.5°. The conclusion is stark: there is a rapidly closing window of opportunity to secure a liveable and sustainable future for all. Indeed, in meetings I have had recently with climate scientists, they have warned that although they want to cling to the hope of keeping 1.5° alive, they fear we are now in the territory of 2°. At 2°, we lose our coral reefs, for example; that is not a solution that we should be happy to live with. Echoing Simon Stiell, the global stocktake report states that

“much more action, on all fronts and by all actors, is needed now”.

One would not know it from the speech that the Minister has just made, but we do not have a Government who are taking the action on all fronts that is needed now: we have a Government who are not just stalling, but taking us backwards. I thought it was quite a cheek for the Minister to cite electric vehicles, given that the Government have just rowed back from the 2030 ban on the sale of new internal combustion engine vehicles. The motor manufacturing sector, including the Society of Motor Manufacturers and Traders and the Ford motor company, was quite happy with that 2030 date. The only reason that date was moved was that in the wake of the Uxbridge by-election, the Prime Minister wanted to play party politics with net zero. The Minister is quite audacious at times: he said that some countries were seeking to stoke division at COP, but that is exactly what his Government have been doing in recent weeks on net zero.

Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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The rest of the European Union has set the deadline of 2035. It was right that the United Kingdom Government set the ambition for 2030, but we recognise that things are changing: we have had covid, and there is still a need to roll out infrastructure. I think the hon. Lady is being ungenerous, since we will now be in line with the rest of the European Union, and we have a higher take-up of EVs than many other countries.

Kerry McCarthy Portrait Kerry McCarthy
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In all the conversations I have with businesses, they say that they want certainty and a strategic sense of direction; they want to know where they are going, so we should not move the goalposts. There was no reason to row back from that target, and as I have said, the motor industry itself has expressed concern. That industry needs to develop a market in new vehicles now, so that in a few years’ time, we will have the affordable second-hand market that we need so that people can afford to make the transition. The right hon. Lady is absolutely right that the infrastructure is not there, but that is a challenge that we should rise to, getting a comprehensive network of public sector charging points, grid connections and so on. She will have heard that from Labour at its recent party conference.

Let me turn to domestic progress. Again, to listen to the Minister, one would think that everything was going swimmingly. The Climate Change Committee has assessed that the UK is unlikely to meet its NDC to reduce emissions by 68% between 1990 and 2030. The Government’s own carbon budget delivery plan conceded that Ministers only have plans for 92% of our NDC, but they have said that they are confident about delivering those emissions savings—that is something we often hear from the Minister, without any actual detail about how we will get there. In fact, it has been assessed that the Government have credible plans for only 28% of the required emissions reduction. There is a lot of work to be done.

The Climate Change Committee assessed the Government’s policies in October with and without the Prime Minister’s climate climbdown, and found a 20% increase in the proportion of the NDC pathway covered by “insufficient plans” having taken into account the Prime Minister’s intervention. It said that the

“widespread uncertainty for consumers and supply chains”,

is more difficult to quantify, but, as I have said, at all the meetings I have had, people are saying that this has absolutely knocked them off course. There is a huge amount of enthusiasm for going down the path to net zero and I am told that there is a lot of private sector finance ready to invest, but they need a stable economic climate, not a Prime Minister who is U-turning just when action is needed.

Following the disastrous contracts for difference auction, the proportion of the electricity supply pathway with significant risks increased by over 5,000%. The refusal to help renters contributed to a fivefold increase in insufficient plans for buildings. When the Government’s policies are, as the Climate Change Committee found,

“making Net Zero considerably harder to achieve”

and driving up energy bills, how can Ministers go to COP trying to boast about how well things are going in the UK? I do hope for action before COP. We have the autumn statement next week, and we were expecting some plans—I think the Chancellor promised in the spring that he would bring them forward—in response to the Inflation Reduction Act and the measures we then saw in the EU. I hope that we do get something on that front to at least reassure businesses that the Government still have net zero in their sights and see it as an important part of a future industrial strategy for us.

The UK used to be at the forefront of global climate action, and again the Minister was being a bit cheeky when talking about the progress that has been made since 2010. I think he entered Parliament when I did in 2005. Is that right?

Graham Stuart Portrait Graham Stuart
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indicated assent.

Kerry McCarthy Portrait Kerry McCarthy
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The Minister may recall being on the Green Benches in 2008 when the Labour Government introduced the world’s first Climate Change Act, which was then adopted by more than 100 countries around the world. It was groundbreaking.

Graham Stuart Portrait Graham Stuart
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If the hon. Lady wants to have a history lesson—and we did, indeed, come in together—she will remember that it was David Cameron, as the leader of the Conservatives, who was the first leader of a major party in this country to call for a climate Act. I think the Liberal Democrats leader followed suit a few hours later, and the Labour Government then eventually did so. I served on the Joint Committee, chaired by the brilliant David Puttnam, that put this into place, so I will not take any lectures from her. It was the Conservatives who led the charge to get that going—the first major party to support it—and I was pleased to see it put on the statute book. We were of course the first major economy in the world, and the first Government, to legislate for net zero overall.

Kerry McCarthy Portrait Kerry McCarthy
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It was a Labour Climate Change Act brought in by the now shadow Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Edward Miliband). I can see why the Minister may be desperate to try to claim credit for it, because the Government have so little else that they can claim credit for, but it was a Labour Act introduced by a Labour Government. It is because that was enacted that we have seen so much progress, and as I have said, it was taken as a model for many other countries to follow. However, we are now setting entirely the wrong example to other countries by scaling back on our net zero ambition and last year the Prime Minister had to be forced to attend COP.

Graham Stuart Portrait Graham Stuart
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Will the hon. Lady give way?

Kerry McCarthy Portrait Kerry McCarthy
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The Minister will have an opportunity to respond in his wind-up at the end, but I suppose I will give way once more.

Graham Stuart Portrait Graham Stuart
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This is a really important topic, and it is important that we get our language right. The Government have not scaled back our net zero ambitions for either our NDC in 2030 or net zero by 2050. The hon. Lady can make lots of points, partisan or otherwise, but it would be great if she acknowledged that this country has, under this Conservative Government, cut emissions by more than any other major economy on earth and has the most ambitious plans for 2030.

Kerry McCarthy Portrait Kerry McCarthy
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The Minister will also know that the Government had to be taken to court, because it is one thing declaring targets and ambitions, but unless they have the strategy—[Interruption.] The Government were taken to court, and that is why they had to produce the delivery plan earlier this year. The Climate Change Committee, which by his account was all his idea because it was all his idea to introduce the Climate Change Act, has said that the Government are not on track to meet their ambitions. So the Minister cannot just rely on grandiose boasts about where he wants to get us to if he does has not have a plan to get us there, and it is very clear that he does not have a plan to get us there.

The Minister said that we represent only 1% of global emissions, which is true, but the NDC emissions gap is approximately the total combined annual emissions from the top three emitting countries. Yes, they have responsibilities, but this does need everybody everywhere to play their part. I do not think we would want to try to suggest that we were insignificant in the big global picture because we represent only 1% of the total population.

I will move on specifically to the COP agenda and what we hope to see. Will the UK be calling for the phase-out of unabated fossil fuels, and does the Minister agree with the global stocktake report—[Interruption.] I am just about to come to that. I know the Minister mentioned it, but does he agree with the global stocktake report that fossil fuel subsidies are stifling cost-effective low-carbon alternatives? The global stocktake report states that

“lifetime emissions from existing and planned fossil fuel infrastructure will exceed estimates for keeping…1.5 °C within reach”.

My point is that, if the UK will be calling for the phase-out of unabated fossil fuels, how does he think going to COP when the Government have just announced the Offshore Petroleum Licensing Bill in the King’s Speech will sit when he tries to lecture other countries on moving away from fossil fuels?

The global stocktake report is clear that CO2 removals have a role, but are

“not a substitute for deep emissions reduction.”

It states:

“A rapid reduction of the world economy’s reliance on fossil fuels towards clean energy is central for reaching global net zero”.

That sounds to me like an endorsement of Labour’s clean energy mission for 2030. Unlike the Government’s short-term approach, this will increase our energy security, create good jobs and reduce energy bills—unlike, as the Secretary of State for Energy Security and Net Zero admitted the other day, the Offshore Petroleum Licensing Bill—and it will mean that the UK is leading the world in tackling the climate crisis.

The Minister mentioned nature-based solutions, and I was very pleased to hear that, but can he say a bit more about what global action the Government will be supporting with sustainable land management—I understand that that will be on the agenda at COP in a way that it has not been in the past—as well as terrestrial and ocean carbon sequestration? What discussions are there likely to be on the role of setting up credible international carbon markets? To give one example, we know that wetlands have huge potential, but we are still waiting to hear about the saltmarsh code—the former Secretary of State for Department for Environment, Food and Rural Affairs, the right hon. Member for Suffolk Coastal (Dr Coffey), may have something to say about that—and whether we can add saltmarshes to the greenhouse gas inventory. With the UK’s leading position as a world financial centre, we are ideally placed to be playing a role in creating these markets both on the nature side and on the carbon side.

It is estimated that tree loss last year was 2.1% higher than the maximum level. Will the Minister update us on that? He mentioned halting and reversing deforestation by 2030, and on the international side that is very much about stamping out links to deforestation in our supply chains. Could he give an update on how that is going, because as I understand it, it is not going well? Those issues were all highlighted in the global stocktake.

The built environment and transport are also on the COP agenda, and it would be helpful if the Minister could tell us a little more about the Government’s priorities for the talks. He mentioned the loss and damage fund, and the work of the transitional committee. It would be interesting to know more about what conversations he has had with climate-vulnerable countries, and the small island developing states in particular, because it is one thing to set up these financial arrangements, but in the past the smaller a country, the fewer resources it has, and it finds it very difficult to access the finance that is out there.

The Minister also mentioned the need to reform international financial institutions, which was welcome. I do not know whether he intends to reveal much about his actual agenda at COP before he goes—and it would be useful to know who else is going with him—but one question that has been asked of me is whether he will be attending the ministerial event on methane on 4 December. I think it is really important that we start addressing methane in connection both with the fossil fuel sector and with agriculture and waste. I hope that will be a priority for him.

To conclude, the UN has previously warned that the world is on course for a catastrophic 2.8°C of warming, in part because promises made at COP26 and COP27 have not been fulfilled. We are running out of last chances, but we can still avert the very worst of it, because we have the knowledge and tools to do so; it is just the willpower that is lacking at the moment.

The UK under Labour will, as called for in the global stocktake, transform our energy system with a plan to double onshore wind, treble solar, and quadruple offshore wind. Our warm homes plans will see 90 million cold and draughty homes brought up to standard, and Labour’s answer to the Inflation Reduction Act will restore Britain’s international leadership and create jobs across the country. Our proposals for a clean power alliance will lead ambitious countries and support the most vulnerable. A net zero target should not lead to complacency. There is so much more that the UK can and must do, not only to reduce emissions but to deliver energy security, reduce energy bills, and enable British industry to thrive over the long term. That is the vision we need to see at COP.

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Graham Stuart Portrait Graham Stuart
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I congratulate all the Members who have spoken in the debate, which is an important one ahead of COP28. Further to the other interactions that I mentioned in my opening speech, we will be making a written ministerial statement on our priorities for COP before we go, and I will be responsible for the negotiations there.

It has been a very interesting debate, but it is a shame that the hon. Member for Bristol East (Kerry McCarthy) struggled so much to acknowledge the position that we are in. I have never heard it come out of her mouth that this country has cut its emissions more than any other major economy on this earth, which it has, or that it has the most ambitious plans of any economy on this earth, which it has. It would be good to have that as a baseline; there is plenty of room to pick up on issues and concerns about our performance while also acknowledging that the UK truly is a global leader. I am pleased to say we are not only leading domestically, but leading in the international space as well.

A couple of Members mentioned the Climate Change Committee in the context of the Prime Minister’s speech in September. It is worth noting that the Climate Change Committee’s analysis shows that there is “no material difference” in our progress in cutting emissions since its last report in June. We are tacking, as I would put it. However, our destination remains exactly the same. We are reassuring people in rural areas who were fearful that they could neither afford heat pumps nor be sure of their functionality, while increasing the subsidy for them by 50%, and working to build the system and drive the cost curve down, so that more and more homes can have them. That is right the way to ensure that we maintain public support for delivering net zero.

The same applies to zero-emission vehicles. Manufacturers have a ZEV mandate—an obligation to “green” their fleet up to 2030. That builds on our successful record to date; we are ahead of the Climate Change Committee’s and our own projections. We are maintaining that ZEV mandate. The Climate Change Committee spoke of “no material difference” in progress on particular changes, but the focus on grid and other aspects of the Prime Minister’s speech are all about turbocharging our efforts to deliver not only the nationally determined contribution in 2030, but net zero by 2050.

Methane was mentioned, and it is an important issue. The global methane pledge is a collective commitment intended to mobilise international action on methane. I am pleased to say that UK methane emissions between 1990 and 2021 dropped by 62%, one of the largest reductions in any OECD country, but I should also to highlight the fact that methane represents one of our biggest opportunities—the opportunity to ensure that that pledge is delivered not only domestically but internationally. It should also be noted that we are the only major economy to set a legally binding emissions reduction target, of 77%, for 2035 as part of carbon budget 6. We will see what happens at the 2025 COP in Brazil—10 years on from Paris—but the expectation is that new NDCs will come forward for 2035.

Finance was touched on in the debate. We remain one of the largest and most active donors in international climate finance, and we are making record commitments. With the aim of helping the world to adapt to the inevitable climate change impacts that we can already see, at COP27 the Prime Minister made a commitment to triple UK adaptation finance from £500 million in 2019 to £1.5 billion in 2025. The UK is also committed to maintaining a balance between mitigation and adaptation spending, and to providing at least £3 billion of UK climate finance for the purpose of protecting and restoring nature. We provide the majority of our climate finance in the form of much-needed grants rather than loans—which I think compares well with what is provided by some other donor countries—and we prioritise our contributions for the biggest challenges faced by the poorest and most vulnerable.

Alongside Malawi and Vanuatu, I co-chaired the climate and development ministerial ahead of the Abu Dhabi pre-COP meetings. It focused on the issue of access, which was absolutely right. We hear again and again from countries such as Samoa, whose Minister has said that the access process takes too long. At the CDM, we set out a “vision statement” expressing greater recognition of the need for national programme development to ease access to money as well as increasing the quantum. The hon. Lady is right: it is not enough to have this notional money if it does not actually flow to those who by definition, as she said, are the least able administratively to meet the requirements of some vast organisation. We need to make sure that the system fits the needs of those it serves, rather than the other way round.

Kerry McCarthy Portrait Kerry McCarthy
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I welcome what the Minister has said. I think that another problem for those countries is coming up with the evidence base to demonstrate the impact that climate change is having on them. There are currently some very good initiatives: for example, science students from the UK are going out to study marine areas. There is a great deal of interchange. Does the Minister think we could do more to facilitate that evidence-gathering, which could then be used as a basis for making an application to show the need for climate adaptation funding?

Graham Stuart Portrait Graham Stuart
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The hon. Lady is absolutely right. We need to make sure that technical assistance is there because, even as we try to get the green climate fund, the global environment facility, the World Bank and various others to improve their systems and ambitions to better meet the needs of the most vulnerable—shouting at both parties is like shoving a nine-pin plug and a three-pin plug together and wrapping them in gaffer tape—we also need to get a smoother system that helps them both to step up so that it genuinely flows, otherwise we will have endless frustration. Hearing Ministers from Vanuatu, Tuvalu, Samoa and elsewhere brings it alive, which is why these international meetings are useful. They remind us of the realities on the ground.

Since 2011, The UK’s climate finance has supported more than 100 million people to cope with the effects of climate change, improved the climate resilience of more than 32 million people and reduced or avoided more than 86 million tonnes of greenhouse gas emissions.

Nature has rightly been mentioned, and we want to see action and ambition from the presidency and all parties on transforming food systems and building policy, practice and investment for sustainable agriculture at scale. That includes endorsement of the leaders’ declaration on food, agriculture and climate action, supported by a further commitment to policy action, innovation and investment through the policy dialogue for sustainable agriculture and the agriculture breakthrough.

It is always difficult to keep our head around all these issues, as there is an alphabet soup of initiatives. I always want to check that they are not duplicative, but they are often complementary and working together.

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Graham Stuart Portrait Graham Stuart
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The hon. Lady is absolutely right. The Congo has extraordinarily large and important peatlands, which have the same basic dynamics. Everything is different, and every country is different, which is why we have to pull different things together, but the fundamental principle is that we have to create a system in which the local people—from the governor of the province down to the indigenous villagers—are better off by maintaining and keeping these peatlands. We are keen to make sure that the role of peatlands is understood because, again, they are a critical enabler. Lost peatlands cannot easily be replaced, and they are part of the negative tipping point we could reach if we do not take urgent action.

Kerry McCarthy Portrait Kerry McCarthy
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I welcome the Minister’s enthusiasm and recognition that peatlands have an important role to play but, at the moment, they are emitting carbon because of how they are treated in this country, particularly when it comes to grouse moor management. Does he agree that we need to address those practices? Many peatlands are also sites of special scientific interest or are meant to be protected for nature in other ways.

Graham Stuart Portrait Graham Stuart
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I will not stumble into another Department’s area of responsibility. We work collectively across Government to share the burden of making sure we meet our net zero targets.

In wrapping up the debate, I assure hon. and right hon. Members of the Government’s commitment to delivering on net zero at home and internationally. Although there is evidence that a peak in global emissions is within sight this decade, we need emissions to peak by 2025 and to reduce by 43% by 2030. The sobering reality is that, this year, global emissions are likely to reach a new peak, as Members across the House have said. Keeping 1.5° within reach requires nothing less than a paradigm shift.

As I said in my opening remarks, the UK accounts for less than 1% of global emissions. Beyond what is directly within our grasp, the question before us is how we can help to create the will and the capability to move the remaining 99%, for which the major emitters, in particular, will be crucial.

I would like to close by offering some reflections on the UK’s role in helping to drive forward international progress in this critical decade. For hon. Members who are interested, we have set out in greater detail the UK’s vision and role in driving forward international action on climate and nature to 2030 in our 2030 strategic framework, which is available online. It sets out six key global challenges, and how we will use our international partnerships, strengths in finance, expertise and domestic leadership, trade and investment, and world-leading strengths in science and innovation to drive forward progress.

The first point to make is that though the gap looks unassailably large, we must not lose hope and fall into a council of doom. The reality is that efforts to date have succeeded in bending the emissions curve away from apocalyptic levels of warming of 3° or more. In some sectors, notably energy and electric cars, the transition is taking off. The IEA’s latest world energy outlook predicts a peak in fossil fuel use by 2025, due to what it describes as the “unstoppable” growth of low-carbon technologies. Solar and electric vehicles particularly stand out. Since only last year, the IEA has revised up its global solar 2050 capacity forecast by 69% and increased by 20% the number of electric vehicles it expects to be on the roads by 2030, such that it is expecting electric vehicles to comprise two thirds of new car sales by 2030.

The lesson we should draw here is clear: rapid, large-scale transformation is possible. The challenge is that we need to replicate this success across all sectors of the economy. There will be no single silver bullet to driving the transformational systemic change that we need on a global scale. We will deploy every important lever we have to accelerate action in this critical decade, building on the framework we put forward in the Glasgow pact and our 2030 strategic framework. That includes working through the United Nations framework convention on climate change, bilaterally and through other channels. Working with others who are like-minded, and others, we need to see countries upgrading their climate targets. There is no point in having a global stocktake eight years after the Paris agreement if it does not lead to a ratcheting up of the nationally determined contributions to match the requirements that we find from the science. In particular, we need the major emitters to do that. Countries representing more than 90% of global GDP are covered, as I have said, by some form of net zero target. Those countries now need to align their near-term targets with the commitments that they have made. We will harness our global diplomatic network, international development offer and partnerships to drive forward action.

We will also be taking action to realign financial flows in line with the Paris agreement and a nature-positive future. We will use our strengths as a global green finance centre and role as a shareholder of key financial institutions to reorientate finance flows and tap the power of markets to make progress towards unlocking the trillions required. We will accelerate transitions globally through targeted collaboration with others, focusing on the most important, highest-emitting sectors, through initiatives such as the breakthrough agenda, so that we can reach positive tipping points and avoid negative ones, and so that clean tech is affordable and accessible across all sectors of the global economy. We will also continue to push to accelerate the global energy transition, for example, through our long-standing leadership on phasing out coal in the Powering Past Coal Alliance. We will also champion the need to phase out unabated fossil fuels and at the same time transition the North sea into a clean energy powerhouse here at home.

Let me touch on that issue, as it was raised by others. We have new licences in the North sea for oil and gas because we continue to need oil and gas. We will need oil and gas in 2050 and beyond. Our production is falling, without new licences, at a rate of about 9%. With no new licences and no new investment, we will not see a greening of the basin. Worse, we will see the loss of the subsea and offshore engineering capability we need, as it will either leave this country or be made redundant, rather than being retained here.

The hon. Member for Edinburgh North and Leith (Deidre Brock) raised the issue of a just transition. There is a true transition to be made, and opposing new oil and gas licences in this country when we are a net importer of both, and when the emissions that will come from imports such as liquified natural gas would be higher, makes the Opposition parties friends of oil and gas workers, but just not those in this country. The approach of those parties will not make any difference to how much we consume, but it will make a difference to our emissions, and not in a good way, and it will lose the very engineering capability we need to deliver the transition, as well as a very material contribution to our ability to make that change, which is of course the £50 billion of taxes that we expect to get from the sector over the next five years. The Opposition parties are in entirely the wrong place. They have put optics ahead of doing the right thing, and it does not take a lot of reflection or analysis to come to the conclusion that we are doing the right thing.

We must globally focus on the positive tipping points we need to accelerate the global low-carbon transition. I thank hon. Members from across the House for their contributions to this debate, and I hope that my team and I will be able to count on the support of everyone in the House, despite all of the global challenges we face, to make the upcoming COP the success that the world needs it to be.

Question put and agreed to.

Resolved,

That this House has considered COP28.