Deidre Brock (Edinburgh North and Leith) (SNP)

2. What steps his Department is taking to tackle climate change through trade policy. ( 911188 )

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Martyn Day (Linlithgow and East Falkirk) (SNP)

3. What steps his Department is taking to tackle climate change through trade policy. ( 911189 )

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The Minister for Trade Policy (George Hollingbery)

The UK has long supported the promotion of our values globally, including ambitious global action to tackle climate change, and this will continue. We are exploring all options in the design of future trade policy, including how to tackle climate change. We are working to realise the potential for low-carbon exports from the UK and supporting UK jobs.

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Deidre Brock

“damaging the coherence of the Government’s approach to combating climate change”,

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George Hollingbery

The UK has an enviable record of success in decarbonisation. A target will be agreed of an 80% reduction by 2050; renewable capacity is up four times since 2010; and there will be £10 billion in annual support by 2021. Expertise is being built in offshore, smart energy, sustainable construction, precision agriculture, green finance, electric vehicles and so on. As I travel around the world, I meet many representatives from developing countries who are interested in all these technologies. Our trade policy is focused absolutely on ensuring that our exporters are set up to spread this green technology around the world. UKEF will play its part in funding this global revolution. In the short term, I have no doubt that some fossil fuel investments will be made, but as we progress that will transform into low-carbon development.

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Martyn Day

“poverty reduction objectives are deemed to outweigh the impact on climate change.”

However, his colleague the Secretary of State for International Development has previously stated that unless we tackle climate change with the urgency it requires “100 million more people” will be thrown “into poverty”. Can the Minister confirm who is correct and what the Government position actually is?

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Desmond Swayne (Conservative)

I think we are spending £1.5 billion in the current period on climate change for less-developed nations, and the same amount—£1.5 billion—on promoting economic development and trade, so there is some synergy for us to work with, is there not?

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George Hollingbery

There absolutely is. As we grow our capacity in this country, we have more capability of exporting and, indeed, advising others on climate change. Yes, we can work in countries on poverty reduction at the same time as promoting energy sustainability.

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Tom Brake (Carshalton and Wallington) (LD)

Will the Minister say a bit more in relation to climate change and trade policy, particularly vis-à-vis the US, because the President of the United States has said:

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George Hollingbery

The recent chapters in CETA— the EU-Canada comprehensive economic and trade agreement—and the EU agreements with Japan, Singapore and Vietnam include quite clear climate change commitments. We are of course signatories to the Paris agreement. I recognise that the President of the United States has said it is going to withdraw from that; it has currently not done so. Where it is possible to have chapters in our free trade agreements on climate change and on our climate change policies, we will do so; where not, we have to understand that we can open doors to dialogue through those trade deals. Indeed, we can then create flows of exports on untariffed sales at more favourable rates into those economies and help the transition, even in more developed countries where it is difficult to negotiate such chapters in our FTAs.

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George Hollingbery

As the hon. Gentleman knows well, the UK has extensive funding for climate change mitigation and for sustainability. I would simply say to him that, as and when we manage to reinstitute the Stormont Assembly in Northern Ireland, we can have discussions between the DIT and other parts of the UK Government to ensure that those issues are taken forward.

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Bill Esterson (Labour)

The Secretary of State’s damascene conversion to addressing the climate emergency is welcome, but, as we have heard, some of those with whom he wishes to conclude trade agreements are less enlightened. Given what he has just said, will the Minister commit to introducing climate clauses to all future trade agreements? Will he publish specific details of the support his Department offers the fossil fuel sector through export finance, and say how that support conforms with the Equator Principles?

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Jo Swinson (East Dunbartonshire) (LD)

1. What assessment he has made of the effect of the climate emergency on his Department’s priorities. ( 911154 )

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Emma Dent Coad (Kensington) (Lab)

3. What steps he is taking to prioritise tackling climate change. ( 911156 )

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Jo Swinson

I welcome the Minister to the Dispatch Box in his new Cabinet role, and I warmly welcome his clear and genuine commitment to tackling the climate emergency. Does he accept, however, that there is a contradiction between the excellent work that his Department does in helping to mitigate and adapt to the climate emergency in developing countries and the way in which, through UK Export Finance, we continue to subsidise fossil fuels to the tune of billions of pounds? Will he use his leadership in Government, in whatever form, to ensure that he pushes to stop those fossil fuel subsidies?

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Rory Stewart

This is of course a very serious challenge. That is fundamentally an issue for the Department for International Trade, but the hon. Lady is absolutely right to say that it is extremely important, when we think about an environment and climate strategy for the Government, to be fully joined up, particularly in relation not only to what the DIT does but to what we do through the Commonwealth and through CDC’s investments to ensure that they tie in with our climate and environment priorities.

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Emma Dent Coad

The $100 billion climate finance commitment made by developed countries including the UK is separate from the international aid commitment, as climate finance is an additional challenge to development, yet the UK’s climate finance currently comes entirely from the aid budget, displacing spending on health, education and life-saving measures. The Minister has just explained that this will come from existing funds, so how are the Government exploring alternative sources of climate finance to take the pressure off the aid budget?

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Rory Stewart

There is a range of climate finance initiatives that we could pursue, including green bonds here in the United Kingdom, but fundamentally, all the investments we make in health, education and economic development need to be proofed for the environment and climate. The distinction between these two things is often deeply misleading because, as the World Bank has just pointed out, if we do not get the climate and environment right, we will have 100 million more people living in poverty.

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Chris Law (SNP)

The United Nations framework for combating climate change has three pillars: mitigation; adaptation; and loss and damage. Does the Secretary of State agree with the United Nations framework convention on climate change that loss and damage to property is a huge consequence of climate change? If so, why do the UK Government allocate official development assistance spending only to mitigation and adaptation?

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Rory Stewart

These are difficult choices that we have to make. We are currently leading in the United Nations on the resilience pillar. It is very important, and I think everybody in this House—indeed, in the country—would want to ensure that the next COP summit is hosted in London next year, so that we can take on the baton from Paris, but in order to do that we need to show a distinctive contribution. It is in resilience that we shall be leading the UN discussions, both in Abu Dhabi and then in the UN in September. I think that is where the UK should position itself.

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Geraint Davies (Swansea West) (Lab/Co-op)

On that point, we know that Donald Trump favours a no-deal Brexit so that we turn our back on the EU market and sit at his feet—the American economy is seven times the size of ours. We know that Donald Trump does not agree with climate change, but will the Secretary of State ensure that we focus on investing in renewable technologies via overseas development, rather than continuing to subsidise fossil fuels through export credit guarantees, so that we can build a sustainable world together?

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Rory Stewart

This is a very big challenge. There is huge potential for the British economy and, of course, for the world and the climate emergency in getting involved in new technologies. To take one example, I would very much like to put considerably more money from DFID into research and development in renewable technologies at British universities. If we can develop the next generation of solar film—light spectrum technology —it can convince China not to build the next generation of coal-fired stations. That will make a huge difference to the climate and the world, but also to British research.

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Stephen Doughty (Labour)

I welcome the Secretary of State to his role and wholeheartedly agree with what he just said on climate change. Indeed, climate change has affected Somaliland. As he will know, I am secretary to the all-party Parliamentary group on Somaliland and we recently welcomed the Finance Minister. Can he say what steps his Department is taking to support the upcoming parliamentary elections in Somaliland and also the talks between Somaliland and Somalia? Will he meet the all-party parliamentary group to discuss what we can do to support that fantastic country?

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Rory Stewart

I thank the shadow Secretary of State for his remarks; his endorsement is probably the nail in the coffin of my campaign. I know that I am meant to be campaigning on being the person who can convince people who do not normally vote Conservative to vote Conservative, but this may be going a little far. The commitment to 0.7% is a Conservative commitment that we put into statute, and we are deeply proud of it. At a time when we are facing a climate emergency, to spend not 7% or 1%, but 0.7% of our GNI, makes entire sense. We are facing an emergency to the climate and to people that could cost trillions of pounds if we get it wrong so this spending is exactly the right thing to do, and I am delighted that both sides of the House are following the Conservative lead on the commitment to 0.7%.

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Danielle Rowley (Midlothian) (Lab)

T2. I am pleased to hear the Secretary of State’s global approach to climate change, but we know that vulnerable communities in the global south are hit hardest by extreme weather events caused by climate change. How will he use his global influence to work with other funding countries to make sure that vital financial support goes to those countries that have suffered such loss and damage? ( 911178 )

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Rory Stewart

First, we have to leverage our position. We are almost the major donor—proportionally, certainly—to the World Bank, and we need to leverage that kind of support. There is, though, a bigger point: it is not just about money. For example, British scientists are doing something really interesting at Kew Gardens looking at drought-resistant crops, particularly coffee and cocoa. In somewhere such as Ghana, climate change could wipe out a large sector of the economy. We need to get shade trees in. We need new crops and irrigation techniques. This is of course about resources, but it is also a great deal about using British and international research and development and science to solve these problems in, as the hon. Lady said, the global south.

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