Select Committee on Environment, Transport and Regional Affairs Minutes of Evidence



Examination of witnesses (Questions 1 - 19)

WEDNESDAY 5 JULY 2000

PROFESSOR SIR TOM BLUNDELL, DR SUSAN OWENS and PROFESSOR BRIAN HOSKINS

Chairman

  1. Good morning to you, Sir Tom. I wonder whether I could ask you to introduce yourself and your colleagues for the record.
  (Professor Sir Tom Blundell) I am Tom Blundell, Chairman of The Royal Commission on Environmental Pollution. With me I have Professor Brian Hoskins, who is an atmospheric physicist from the University of Reading and also Dr Susan Owens who is an environmental geographer from Cambridge.

  2. The Committee are very grateful to you for coming this morning; it is a very important subject. We are looking forward to hearing from you. Did you want to make some opening remarks?
  (Professor Sir Tom Blundell) Yes, I should like to say a few words and begin by thanking you very much for giving us the opportunity to come to discuss our recently published report and also just to add at the beginning that of course The Royal Commission is an independent body. We have academics here, but we do also have two industrialists, two economists and a lawyer.

  3. And a theologian we are pleased to note.
  (Professor Sir Tom Blundell) Yes, we have a theologian. I should like to mention that just before we sent our final text to the printers we had the benefit of reading your own excellent report on the Government's climate change programme. We found a great deal in common between your thinking and ours. We were particularly struck by your firm view for a long-term strategy beyond 2010 for reducing emissions of greenhouse gases. Human induced global warming is a challenge which is quite unlike any other. It is a challenge which is about centuries in terms of timescales rather than electoral cycles of a few years. It is about future generations and not ourselves. It is about huge changes in the way we use and produce energy. It is something which is going to have to involve every person on the planet. It is a challenge quite unlike any other. What the Commission has done is try to identify the measures which ought to be taken to reduce the risk, which inevitably will occur. The current newspaper campaigns for a cut in duty on petrol and diesel highlights the difficulties this challenge can pose at the political level and we are very much aware of this. The present press coverage rarely makes any connection between Government policy on climate change and the high level of taxation on road fuels; indeed I am afraid the Government also does not seem to make that connection very often either. It is a fact of course that road transport's contribution to UK emissions is large and it is growing. We particularly regret that successive governments have not devoted more of the revenues of the fuel duty escalator to improving alternatives to car use, but we are looking forward to significant changes in our public transport investment in the near future. I gather they are going to be announced. There are other issues ahead for any government wanting to take a lead on global warming which will court unpopularity. I am sure you will want to discuss this. We clearly need to do a much better job in communicating with the individual, with the public because we need public involvement and we need public support. The other issue of course is the long-term nature and the requirement for a political consensus between consecutive governments. That is a very important point to make. Thank you very much for giving us this opportunity to come along and we are here to answer your questions and we shall do our best.

  4. We shall follow up various points you have made but the Committee would be interested to know why you said that the threat posed by climate change is the most important issue?
  (Professor Hoskins) The production of energy and its use have various impacts and those are local in terms of pollution and visual and particulates in the atmosphere and that is important. Then there are regional issues like acid rain associated with the use of energy. Then there is the global issue of increasing greenhouse gases. If one looks at all these and what has been developed to tackle them, then the local issues are possible to deal with and are being dealt with but the global issue is the one which seems to have the longest term importance and also the greatest importance when one takes a wider perspective. That is why we concentrated on that.

  5. Because you felt this became clear as you started the study. Is this what happened? You set off with one set of criteria and you discovered that this was one of the most important things.
  (Professor Hoskins) We started with a reasonably open mind, although it was pretty clear from other studies that we were liable to go down that direction.
  (Professor Sir Tom Blundell) Formally, for the first year of scoping, we were broadly looking at the questions Professor Hoskins mentioned and we really only decided to focus on it when we received the first set of evidence and views.

Mr O'Brien

  6. I find the report interesting. There is one area which does generate serious interest and that is the question of the reductions in fossil fuels. What are the prospects for dealing with climate change in ways which do not require reductions in the use of fossil fuels?
  (Professor Sir Tom Blundell) The main aspects of that will be in terms of removing carbon dioxide from the fossil fuels.
  (Professor Hoskins) There are natural ways in the system, perhaps by planting more trees, so one could hope to encourage the natural system to take up more carbon dioxide. We looked at that and there certainly is some scope. Then there are techniques perhaps from removing the carbon from the flue gases of power stations and then taking that carbon dioxide and burying it deep underground. There are possibilities like that. We encouraged all these to be looked at but in the end we did not think they are sufficient to tackle the problem.

  7. In the report it says that further research into the study of this technology is required. How far has that advanced or is research taking place?
  (Professor Sir Tom Blundell) In terms of carbon dioxide removal from central power stations and also from the gas fields, there is quite a lot ongoing and indeed the Norwegian companies are already removing carbon dioxide from gas and putting it in submarine saline aquifers. Of the various possibilities that is an area where we should like to see more effort and research. We are much more sceptical about some of the ongoing research into just dumping the carbon dioxide into the ocean because we felt that would lead to acidification and quite severe environmental consequences. Of course carbon dioxide is poisonous so we cannot live in an atmosphere of carbon dioxide and one needs to be absolutely sure that any storage is not going to lead to any release which would lead to danger for the population. That is why on the whole one would want to put it under the sea rather than under the places where we live. Clearly a lot more research needs to be done on that. In our scenarios we do imagine that fossil fuels could be used instead of nuclear if we can solve that problem. It is a very important area for research.

  8. Have you studied the research which is taking place now on burning fossil fuels smokelessly, the fluid bed system of burning fuel to generate electricity? Has there been any contact with the people studying that?
  (Professor Sir Tom Blundell) You cannot burn carbon dioxide: carbon dioxide is the product. We have looked at a lot of the different methods for removing carbon dioxide either by absorption or adsorption in various concentrated centres like factories, like coal fired electricity production. That is not going to be possible if you burn the fossil fuel in the car. You can do it where you are in centralised areas of energy production.

  9. In your report you referred to large users of fossil fuels. Obviously I was concentrating on that particular matter. Do I take it that there is some relationship between your research and the research which is taking place in burning solid fuel for generating electricity without serious emissions? Is there some contact between your research and their research?
  (Professor Sir Tom Blundell) Yes, we have been in touch with those who are doing that work.

Christine Butler

  10. What good would it do even if UK strove to meet the 60 per cent reduction in carbon dioxide which you suggest in this report, in view of the fact that no other country in the world is anywhere near the target which we have already espoused?
  (Professor Sir Tom Blundell) There is obviously a need for global action and there will clearly be a need to have nations moving together in the longer term. There are many immediate advantages which the United Kingdom could have from taking measures both on the efficiency side and the technology side. Basically we are wasting a huge amount of the energy we produce in power stations, in our homes, in our vehicles and any avoidance of that wastage must be leading to an efficiency for us and making us more competitive. It is not all downside. Also of course whatever happens the new technologies for energy production are going to be required and we are already seeing ourselves importing turbines from Denmark and Germany. If we can move in the technologies earlier on we shall also have a competitive advantage on that side. I agree with your premise that eventually we need to have global action, but I should say in return that there are distinct advantages to the UK, both in the short and longer term, from going down that line.

  11. America and large expanding and emerging economies, particularly China, do not take that view, do they?
  (Professor Sir Tom Blundell) If the lead is going to be taken, it is going to be taken in the UK and Europe. I was in Shanghai a week and a half ago and was rather impressed by some of the actions they are taking. They are aware of the problem, but you are absolutely right that the major challenge is in the USA and in China if we are going to follow any kind of contraction and convergence.

  12. The point is that it may be an advantage, given a certain scenario in terms of competition for new technologies, but whilst America does not share that view and it continues with its gas guzzling attitudes to transportation and the private use of the motorcar, how on earth would a 60 per cent reduction in UK production of CO2 be effective in the great scheme of things against all that?
  (Professor Sir Tom Blundell) By definition you must be right that if it were just in the UK it would be a marginal consequence. It does need leadership and I think we have to be quite clear that we have to move according to our own conscience. In the future it will affect our grandchildren and future generations.

Mr Gray

  13. I was in Shanghai recently too and it is by far the most polluted city I have ever been in. You cannot walk down the street without your eyes watering.
  (Professor Sir Tom Blundell) It is not as bad as Beijing actually.

  14. I think Shanghai is a lot worse than Beijing. At least Beijing has wide open streets. The question is: say you are encouraged by what they are proposing, maybe you are, but they are starting from a very, very low base point compared to the rest of the world.
  (Professor Sir Tom Blundell) Absolutely.

  15. Credit where credit is due perhaps.
  (Professor Sir Tom Blundell) There is no doubt that there is a huge challenge ahead in getting global action and that is why we in this country should show leadership in this.

Miss McIntosh

  16. I have the distinction or otherwise that in the Vale of York we have the highest petrol pump prices as of this week: 96.9p for unleaded petrol at one small village of Sutton-under-Whitestonecliffe. Do you think you are setting yourself on a collision course with the Government if you are suggesting that the profit, the income, the revenue which the Government earns off petrol prices should be used on alternative sources of fuel when the Prime Minister is on the record as saying that if they reduce the revenue and the costs at the petrol pump, then we shall have difficulty funding the Health Service?
  (Dr Owens) As the Chairman said in his introductory remarks, we do recognise that this is a major political challenge and we have understood that throughout undertaking the study. I should say to start, The Royal Commission is very disappointed in the amount of progress which has been made on transport policy, particularly on implementing an integrated transport policy since the Royal Commission's eighteenth report in 1994. That is an important point because the extent to which transport policy is genuinely integrated is an important factor in making some increases in the fuel duty acceptable. The fact remains that transport is probably our biggest challenge in the context of climate change. The contribution of carbon dioxide emissions from the transport sector is large; it currently amounts to about 24 per cent of all carbon dioxide emissions, so we are talking about one quarter of our carbon dioxide emissions. Furthermore that contribution is growing and growing very rapidly. We have that basic fact that we somehow have to deal with in spite of the political difficulties involved. We were disappointed that the fuel duty escalator, whilst it lasted, was not part of a wider package of integrated transport policies which we felt would have made it more acceptable as I have indicated. We also felt that just towards the end of its time it was probably beginning to bite and it was probably beginning to work and indeed that was partly why it became so controversial at the end, alongside the underlying increases in global oil prices. Our biggest regret as the Chairman has indicated, is that the revenues from the fuel duty escalator were not recycled into improving alternatives to the use of cars and lorries, particularly public transport, but also we should never forget the other modes of transport, walking and cycling. Some very interesting statistics have been published by the DETR. Between 1974 and 1998 the real price of petrol increased by only three per cent and the overall costs of motoring were effectively level, unchanged over that long period. Public transport costs increased in the same period 65 per cent for bus travel and 50 per cent for rail travel. So one wonders whether the current campaign is directed at precisely the right target.

  Chairman: It is quite possible you are right.

Miss McIntosh

  17. Which recommendation in the report covers this point so we can identify it?
  (Dr Owens) We have made a number of recommendations on transport. Given that the fuel duty escalator has now been rather firmly abolished, we consider it crucial that the vehicle manufacturers are strongly encouraged to meet the targets to improve the fuel efficiency of vehicles. There is currently a voluntary agreement in place between the European Commission and the European/Japanese and Korean manufacturers. We should like to see that target backed up by the possibility of mandatory requirements if sufficient progress is not being made.

  18. Have you costed the schemes which are set out in your recommendations? Has anybody actually costed what the cost of delivering these recommendations would be to industry? Have you established any benchmarks against which their success can be measured? I noticed in the press release that you are quoted as saying that you would wish to see a tax on fuels which give rise to carbon dioxide emissions, preferably on a Europeanwide basis, in preference to the Government's planned energy tax on industry and business?
  (Professor Sir Tom Blundell) I should make it clear that what we are proposing at the moment is moving from what is basically an energy tax, the climate change levy, to a carbon based tax. What we have done in terms of costing it is to see what the implications of that would be, to replace the energy tax as proposed to come in in April next year by a carbon based tax. The effect of that initially would be rather small, say 1.33 per cent increase in domestic electricity bills; quite small. The major impact would be on industrial fuel prices.

Chairman

  19. You did also say that you would look for the money to be used for helping fuel poverty as well, did you not?
  (Professor Sir Tom Blundell) Yes.


 
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