Environment Bill

Lord Whitty Excerpts

Wednesday 15th September 2021 Lords Chamber

[Lord Lea of Crondall (Non-Afl)]

My Lords, it is obvious that in the international system there is a bit of a crisis in knowing how to take the world consensus forward. We are looking forward to Britain making an active contribution leading up to Glasgow. I say this because the international system has at some point got to agree specific concrete parameters so that we do not have an endless debate about China, India, Indonesia, Russia or Brazil, as it were, not playing by the same rules as other people. There has to be an understanding, which I think is to be supported, and an acknowledgement that the third world will have different rules from the second and first world. You can imagine the difficulty of agreeing internationally how to define those ideas.

I have great sympathy with the Government for trying to put together a leadership role for the meeting in a month or so in Glasgow, but this is very relevant to what is in this amendment. In practice, it is narrowing down to the question of how we in this country decide how to set targets for greenhouse gas emissions. One very important way of doing it is to define those targets or metrics in relation to the growth of national income. Everybody knows that there is some connection between the growth of national income and the growth of greenhouse gases. If people say that it is not possible to have a reduction in greenhouse gases without doing something to reduce the growth of national income, I say that the fact is that one can do that. We are doing it in this country already, partly because of the accelerated reduction in emissions arising from the use of coal to generate electricity.

We have to come to some conclusions about what exactly it is that we are concretely proposing. In this amendment, we have an idea that a 1% increase in the national income should be associated with a 1% reduction in emissions of greenhouse gases. That is a very crude example, but it is impossible to make progress on the short-term link to the long-term aspiration of zero emissions without trying to find some way in which people can go forward—ideally with international agreement—on how we are going to change this coefficient. That is what is in this amendment.

I am very pleased to have had the chance of an initial talk with the Minister of State last week about how these propositions can be taken forward. I look forward to hearing what he has to say. I am encouraged that some constructive thinking is emerging from the proposition in this amendment.

This also means that there has to be quite a big change in how Whitehall and government generally set targets. We do not have short-term targets at the moment. We have excellent reports from the Committee on Climate Change and associated budget work, but we have reached the point where we have to bite the bullet and look seriously at trying to acknowledge that we have to reduce the coefficient around the world, where climate change is a risk because carbon and greenhouse gas emissions are growing at greater speed than national income. We have to reverse that.

I hope the Minister will accept that work should be taken forward on the idea of these metrics to reduce that coefficient and give a positive response to the principle involved. I look forward to his response. I beg to move.

[Lord Whitty (Lab)]

My Lords, I added my name to my noble friend’s amendment. When he first proposed it to me I was not quite clear what the intention was, but it is quite clear what it requires. It gives us a metric —a figure—to display to the public what is a central matter of political dispute in this and many other countries, namely the claim that to achieve green growth and a reduction of greenhouse gases is in direct conflict with the ability to grow and become more prosperous. This country is one of the few countries that has managed to resolve that over the past 20-odd years. In most years we have grown the economy and reduced our greenhouse gases. That will be more difficult in the future and it is more difficult around the world.

All the amendment is asking is that the Government, the Treasury and the Bank of England in particular adopt some metric as an objective of economic policy and turn the ratio between growth and the reduction in greenhouse gases into a forward-looking metric that reduces our dependency on fossil fuels while assuring the public that we are still increasing prosperity. It is possible that the econometricians, statisticians and everybody else can work out a more complex or a simpler figure, but we need one figure that on a rolling basis measures the past and gives us a target and a tool for the future, so that we can counter a very insidious position where the climate pessimists say it cannot be done.

Of course, the polemicists in this argument on social media and more broadly not only emphasise that position in this country; it is making life difficult in many other countries. It defined Trump’s America and to a degree still hamstrings the American Government. It means that, however sophisticated their regimes, the oil producers still trot out the conflict as an excuse for not doing anything that will lead to a meaningful delivery of either the Kyoto or the Paris commitments. Of course, the conflict and the political argument are at their most acute in the poorest countries, where constraints on fossil fuel-based energy are seen as a barrier to raising the living standards of the poorest and most wretched on the earth.

That is why having a clear metric might help us in international negotiations as well. At present, the post-Paris commitments of each signatory are expressed in different terms. Most of them are absolute reductions in greenhouse gases, some are reductions in what they call energy intensity, and others are just lists of particular measures. It is quite difficult to determine the relativity between these different commitments and impossible to compare the level of their commitment with what are supposedly the Paris objectives.

If we started here and the Government committed to getting the Office for National Statistics and the other relevant bodies to address this issue and to come up with a single, clear measure—one that carries at least the broad range of political opinions in this country —we could then move on to convince the OECD and the rest of the world. We can start here. Whether in this Bill or in some other context, the Government really need to commit themselves to having a clear metric here, and I hope the Minister can give some encouragement to that view tonight.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly, in a slightly curious position, to speak on Amendment 119 in the name of the noble Lord, Lord Lea of Crondall, and signed by the noble Lord, Lord Whitty. I continue to support this amendment while disagreeing with most of what they just said.

I will start with the comments of the noble Lord, Lord Whitty, on prosperity and GDP growth. If we define prosperity as a good quality of life and a healthy life, GDP growth is profoundly not coupled to what I would call prosperity. In both these contexts I point noble Lords to an excellent, if now slightly old, book, Tim Jackson’s Prosperity Without Growth, which started out life as a government report. Professor Jackson continues to work with the APPG on Limits to Growth to produce excellent further reports on that.

However, I am sure noble Lords will be pleased to hear that I will not reprise the whole growth debate at this stage of the evening. What I will point out is that we have people coming from different sides saying that we need a decent measure. Further, on the comments of the noble Lord, Lord Lea of Crondall, the figures we have for our reduced carbon emissions exclude emissions produced offshore and used by us. As the noble Baroness, Lady Boycott, said earlier, we are not counting the emissions associated with the blueberries we consume from overseas. We need to have counting. This is one measure of having true accounting of the actual cost.

Finally, on GDP, it is appropriate in the Environment Bill to look at how faulty GDP is as a measure. If you cut down a forest, you count the cost of selling the timber in GDP figures but not the cost of the lost forest. That really is a demonstration of how utterly faulty GDP is as a measure.