Select Committee on Environment, Food and Rural Affairs Written Evidence


Memorandum submitted by the Mayor of London (CCB 32)

SUMMARY

The Mayor strongly supports the publication of the Government's draft Climate Change Bill. The Bill represents a landmark piece of legislation in combating climate change, and the Government should be commended for its publication. However, the Mayor's view is that the Bill needs to be strengthened in terms of targets, enabling powers and the role of the Committee on Climate Change

  1.  The Mayor strongly welcomed the Government's recent announcement to bring forth a Climate Change Bill, setting both short and longer-term carbon reduction targets, for this first time, on a statutory basis. However, the Mayor's view is that the Bill needs to be strengthened both in terms of the carbon dioxide reduction targets set, and the scope of the enabling powers introduced, to ensure that Government works effectively to tackle climate change.

  2.  The Mayor supports the Government's statement that the Bill will "put the UK at the very front of global efforts to tackle climate change", however, this goal will only be achieved if UK actually significantly reduces its own carbon dioxide emissions. The latest statistics published by Defra in March 2007 show that UK CO2 emissions now stand at their highest level for 10 years.[25]

  3.  In line with the Mayor's recently released Climate Change Action Plan, the Mayor also calls on Government to take into account the recent analysis from the Intergovernmental Panel on Climate Change (IPCC) and others, that a faster trajectory for the reduction in carbon emissions needs to be achieved and therefore a 60% carbon reduction (baseline 1990 emissions) needs to be achieved by 2025. This is the goal set with the Mayor's CCAP and should be the target set within the Climate Change Bill. The London Climate Change Action Plan not only set this more ambitious goal, but set out a delivery programme showing how it could be achieved.

  4.  The carbon budget concept put forward by the Climate Change Bill mirrors the proposal put forward by the Mayor within the Climate Change Action Plan (CCAP). This states that, to stabilise global carbon emissions at 450 ppm on a contraction and convergence basis, London has to set a limit for the total amount of carbon dioxide between now and 2025 to about 600 million tonnes.

  5.  The rolling five-year budget system proposed by Government is a practical way forward. Banking and borrowing of a limited number of allowances across each of the years within a budget period is acceptable. Borrowing of allowances from future budget periods, should, however, not be allowed.

  6.  The Mayor is, however, concerned with the proposal that international carbon allowances can be purchased by Government to meet its carbon budget targets. The Government seeks authority in the Bill to "spend money on overseas credits and allowances to help the UK remain within budget if necessary".[26] However, no indication with regard to the limit of allowances is given in the Bill or supporting documents. In terms of these credits, the Government states that it will issue guidance in terms of "supplementarity"—this is a further issue of key importance which needs to be considered by Government if allowed to purchase overseas credits to meet its targets.

  7.  The first budget period needs to reflect the Government's commitment to its manifesto target of 20% carbon dioxide reduction by 2010. The target should not be "smeared" across the budget timeline. This is a longstanding Government target of key importance and needs to remain a cornerstone of the Government's commitment to carbon reduction.

  8.  The Mayor, whilst mindful that the proposed Committee on Climate Change will not practically be able to advise on the overall budget for the first commitment period this year, strongly supports that the forthcoming Energy White Paper sets out robust policies to achieve deep carbon dioxide cuts now. Government should not be waiting for the Committee's initial advice, which is not anticipated until Summer 2008.

  9.  The Government's National Allocation Plan (NAP) under Phase II of the EU Emissions Trading Scheme (EUETS) has already set a "budget" of allowances for the traded sector, which represents, approximately, 50% of UK carbon dioxide emissions. This, therefore, sets a much clearer scope for the Government's energy policies in terms of the remaining sectors of the economy that need to be tackled in terms of reducing carbon (ie broadly, transport, including aviation, domestic and the non-EUETS commercial and industrial activities).

  10.  The proposed make-up of the Committee strongly represents scientific and economic disciplines. Whilst recognising that significant technical expertise is required in setting the carbon budgets, the Mayor is concerned that, at present, there lacks representation in ensuring that appropriate policy mechanisms are put forward to ensure that carbon reduction delivery mechanisms are introduced as necessary.

  11.  The Committee also lacks any regional representation. The Mayor believes this is a significant oversight in terms of the Committee's make-up, as regional bodies are key delivery vehicles for the Government's carbon reduction policies. Cities are, in fact, the largest emitters of carbon emissions and there is definite scope to repeat the Climate Change Action Plan preparation for London in other regions and cities, both nationally and internationally.

  12.  The Mayor is concerned that, as currently proposed, the Committee will have limited ability to influence Government policy. Government's failure to date in terms of carbon reduction has not been in terms of target-setting, but in introducing real, long-term and effective energy policies to create a successful low-carbon economy. The Committee's annual reporting requirements appear, at present, to be analogous to those of a Parliamentary Select Committee, with the requirement on Government limited to responding to the Committee's recommendations. The Committee must not only provide advice on the carbon budget targets, and update Government on the overall trajectory it should undertake to achieve, but also identify where Government policy is conflicting in achieving the UK's carbon goals.

  13.  The Committee needs to include within its scope carbon emissions in areas of the economy not covered at present, such as shipping and aviation.

  14.  The Mayor looks forward to the Government's recommendations within the forthcoming Energy White Paper. The enabling powers within the Bill should reflect the scale of the challenge to reduce UK carbon emissions and help create the framework to ensure that all sectors of the economy can play their role in reducing emissions. New areas of policy need to be rapidly progressed: the energy sector is already calling for significant change in the way its market is regulated in order to combat climate change;[27] the key role of planning in helping reduce carbon emissions is only now being addressed; significant new targets for the growth of renewable energy have recently been agreed upon, and the role of supplying heat sustainably is only now being studied. The Committee should be able to supply strong signals to Government in terms of the regulatory and other changes needed, and the enabling powers required, in order to enact these changes.

  15.  The Mayor welcomes the commitment by Government within the Bill on the more regular reporting on Climate Change adaptation. This issue has, to date, been poorly focussed on. The Mayor, however, believes that the proposal within the Bill of a quinquennial review of adaptation policies is too long, and that they should be reviewed every two years.

Mayor of London

May 2007









25   Provisional 2006 greenhouse gas emissions figures, Defra 29 March 2007. Back

26   Section 5.33 page 32 of the Climate Change Bill consultation paper. Back

27   Help us sell less power, National Grid tells regulators, Financial Times 8 May 2007. Back


 
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