Roger Gale is the Conservative MP for Herne Bay and Sandwich.
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King’s College in Cambridge, one of the oldest and most prestigious heritage buildings, now has a fine array of solar panels that it managed to get through planning permission. Does the right hon. Member agree that what we need in planning terms is for material weight to be given to climate change, as well as conservation status? That is where the crux of the matter is. It would allow all those who are responsible for listed homes or who have homes in conservation areas to do energy efficiency in the right way.
Full debate: New Homes (Solar Generation) Bill
Resilience is the capacity to withstand or to recover quickly; I suggest that the UK Government do not currently offer us that. The covid-19 pandemic exposed critical weaknesses in the planning and preparedness for large-scale emergencies. While the UK has made great strides in terms of our recovery—and we did after the pandemic—we may still lack the capacity to withstand other crises. Our vulnerabilities to emerging climate change, to food security risks and to hybrid threats from the UK’s adversaries leave us unprepared to endure shocks and unable to recover swiftly.
I thank my hon. Friend for securing this debate. On the point about the reduction in food security—I think it is actually below 60%, at 58%—he, as my constituency neighbour in the west country, will know the importance of the role that farmers and food producers play in our community, but we have also just seen 18 months of the wettest months on record, following swiftly on from one of the driest summers on record, in 2022, and we know there will be a devastating effect on food production as we see increased extreme weather conditions. Does my hon. Friend agree that climate resilience and action on climate change will also be an important part of the national resilience strategy?
My hon. Friend is spot on. A report produced last October by the University of Exeter and Chatham House highlighted the fact that climate change and environmental degradation are a real weakness in the UK’s national security strategy. Authors Tim Lenton and James Dyke from the University of Exeter contributed to that report, and talked about the national security strategy having a glaring blind spot for climate threats. The report specifically identified risks to the food supply chain as a critical concern, no doubt exacerbated by some of the challenges we have seen lately from Government policy around agricultural property relief and the proposed changes to inheritance tax.
The UK should adopt a total defence approach focusing on stockpiling, training and central co-ordination to enhance resilience against hybrid threats and other challenges. We must move beyond our piecemeal responses and develop a proactive plan to safeguard our nation and its future. Will the Minister commit to implementing the UK covid-19 inquiry’s recommendations to strengthen our emergency preparedness? Will she prioritise a national food security plan to ensure resilience against climate change and supply chain disruptions? Will she outline the steps the Government will take to develop a comprehensive strategy to counter hybrid threats and protect our national infrastructure?
Full debate: National Resilience and Preparedness
The Government have a huge role to play not just through legislation, in terms of the Equal Pay Act and so on, but by securing the circular economy. The Government can have an active role in making the workplace fairer by ensuring, as has been done in some areas, that they give contracts only to companies that pay people well and fairly and do not have a pay gap. So the Government’s procurement contract processes can ensure that they give contracts only to companies that follow good practices, which will enrich the circular economy. This is not just about doing the right thing. Companies that pay people well and employ the right people for the right jobs generally have a 15% higher profit margin than their nearest counterparts. That also plays out in the fact that a lot of young people are becoming socially informed, so they like to shop with companies that have good ethics and consider climate change. This approach will benefit everybody and is good in itself.
Full debate: Workplace Pay Gaps
That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024.
As always, it is a pleasure to see you in the Chair, Sir Roger. The draft order was laid before Parliament on 22 October 2024. To give a bit of background, the UK emissions trading scheme was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020, as a UK-wide greenhouse gas emissions trading scheme contributing to the UK’s emissions-reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments. Our aim is to be predictable and responsible guardians of the scheme and its markets.
We have introduced this statutory instrument to enable several important changes and improvements to the scheme. It resets the UK ETS cap to be in line with the top of the net zero-consistent range. The cap sets a limit on how many allowances can be created over the trading period, which runs from 2021 to 2030, and in each year. That level reduces over time to drive down total emissions. When the scheme was established, the cap for the legislated period of the UK ETS—from 2021 to 2030—was set at 5% below the UK’s expected notional share of the EU ETS cap for the same period. However, that was not consistent with the UK’s net zero trajectory for the traded sector. This statutory instrument brings the overall UK ETS cap in line with our net zero target and carbon budgets under the Climate Change Act.
The statutory instrument also reduces the industry cap, which is the total number of allowances that can be made available to existing installations for free if no cross-sectoral correction factor mitigation is applied. The SI reduces the absolute level of the industry cap while increasing its proportion of the overall cap. While the share of allowances set aside for this purpose will increase from 37% to 40%, the reduction in the overall UK ETS cap means that the industry cap will fall. That will help to mitigate the risk of carbon leakage across participating sectors while maintaining an effective incentive to decarbonise.
I will now move on to Northern Ireland. In line with the original policy intent, the statutory instrument extends legislative amendments made by the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 to Northern Ireland. The amendments include capping the aviation free allocation at 100% of emissions, clarifying the treatment of carbon capture and storage plants, and freeing the allocation rules for electricity generation.
In 2022, a memorandum of understanding between the UK and Swiss Governments was signed, setting out the intention to include flights from the UK to Switzerland in the UK ETS. Such flights were brought into the UK ETS scope on 1 January 2023 by the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Order 2022. The statutory instrument extends the scope to cover flights that depart from an aerodrome in Northern Ireland and arrive at an aerodrome in Switzerland.
Finally, the statutory instrument makes several corrections and clarifications to existing legislation. The changes follow appropriate and comprehensive consultation with stakeholders. In the “Developing the UK Emissions Trading Scheme” consultation in 2022, the UK ETS Authority considered proposals on changes to the rules for sectors covered by the UK ETS to ensure that more greenhouse gas emissions were covered by the scheme, along with changes to the cap.
The authority response to the consultation was published in two parts, in August 2022 and July 2023. A majority of respondents agreed with the UK ETS Authority proposals on creating a flexible share reserve of allowances, on bringing venting in the upstream oil and gas sector into the scope of the ETS, and on the addition of a new penalty and deficit notice. Several respondents expressed concern regarding the reduction of the cap and the changes to the industry cap; an assessment of these responses informed the decision to set the cap at the top of the net zero-consistent range.
Full debate: Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024