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Joan Ruddock: I am not absolutely clear how much time we have left. If it is restricted, I will do what I can to answer the huge number of questions that I have.
The hon. Member for Wealden began with points about delivery and external review. He asked what discussions we have had with developing countries and whether we are closer to understanding what needs to be done. As I said in my first remarks, the negotiations are extremely complex, as he will appreciate. Our officials are travelling continuously—due to the carbon emissions involved, I am sorry to say that—to engage with all the key countries that can possibly bring about the deal.
6.4 pm
Sitting suspended for a Division in the House.
6.19 pm
On resuming—
Joan Ruddock: I was describing the fact that our officials are travelling continuously and we are meeting with all the key countries, in an attempt to work through some of the many dilemmas that have been presented by hon. Members, including my hon. Friends, this afternoon.
There is closer and better understanding of what needs to be achieved. As the hon. Member for Wealden said, there is indeed a debate about whether the issue is total emissions or per capita emissions. He cited the example of China. China now has the greatest volume of emissions, but in terms of emissions per head it is of course way behind many western developed countries. Having said that, however, China is far ahead of countries such as India and other much poorer countries.
So it is our view that an effort must be made by developing countries and particularly the emerging economies based on total emissions. At the end of the day, it is the total emissions that are having a major impact on our climate and we have to tackle total emissions, while appreciating differentiated needs and responsibilities and also the fact that countries such as China have to bring so many people out of poverty and must not be denied their opportunity to do that. We very much support that process.
So the debate continues. However, we are very clear that there must be national inventories and that they must be accepted as accurate. Also, in this EU paper—and this is the UK position—it is stated that we need to see a deviation from business as usual in those countries, based on, for the whole group, a deviation of about 15 to 30 per cent. from business as usual, to be matched by actual reductions of 25 to 40 per cent. from 1990 levels by the developed countries.
The hon. Member for Wealden spoke about the recession, as did other hon. Members, and he suggested that some European countries were slipping from the position that they had held. I think that there is no doubt that countries were very concerned and that there was a very sharp debate about how countries would raise the finance and whether or not they should move backwards from that previous position. We were very firm, as I said earlier today. Of course, the agreements that were struck remained robust, despite all the discussion.
We have the commitment to the 20 per cent. reduction in emissions, which is unilateral to the EU, and the commitment to go to 30 per cent. reductions if there is a global deal. So the EU member states are committed to those objectives and, whatever the discussions, that is the position that we have arrived at.
The hon. Gentleman charged this Government with not meeting all of our targets. I say to him in response that I can recall, because I was shadow Minister at the time, putting that 20 per cent. reduction by 2010 in our document called “The Road to the Manifesto”. When we did that, I can tell him that virtually nobody in this place had the slightest interest in reducing emissions or knew anything about climate change. Consequently, we were in completely uncharted territory.
Martin Horwood: Will the Minister give way?
Joan Ruddock: Maybe the hon. Gentleman was an exception to that. However, I say to him that there were very few exceptions at that time.
Martin Horwood: I am sure that the Minister is not including the Liberal Democrats, or even our predecessors in the Liberal party, in that assessment, since we have been warning about “threats to the world’s temperature-balancing mechanism”—I think that that was the phrase that was used—since the 1970s.
Joan Ruddock: Well, there were hon. Members in this House during the period that I am talking about—the hon. Gentleman himself was not, of course, in the House then—who were interested. [Laughter.] Maybe he was at school then. However, I can tell the hon. Member for Wealden, who raised the question, that when we made that commitment we were in entirely uncharted territory. If it was not for some of us leading the thinking at that time, we would never have had an ambitious target. Frankly, therefore, the fact that we are getting to 16 per cent. by 2010 is not too bad at all. I wish that that figure was higher, but none the less that target of 20 per cent. and having that target before us has driven our effort.
As the hon. Member for Wealden says, we need to do more and, as a Government, we constantly acknowledge that we need to do more. We have made all sorts of changes, by scrutinising Government Departments and the Government estate and by involving the Sustainable Development Commission. He would not know what was going on in Government if it were not for the fact that we have made this a transparent issue and are demonstrating that we have done some things although, of course, we have much more to do. We are committed to doing it. If we were not, we would not have introduced the Climate Change Act.
The hon. Member for Wealden said that there was a need for a critical path analysis. Again, I can only repeat what I said earlier. We are talking about a process and pathways for countries that do not have caps. Because we have a cap, we have to go down a path. He gave the example of nuclear, which for all sorts of reasons has had to have this kind of critical pathway, not least to encourage private industry. However, I can tell him that in the summer this year—I may have said this already—we will publish our programmes and policies for meeting the first of the carbon budgets, and show the way into the future. That is perhaps not what he would call a critical path, but we will be developing the means of getting to our targets as we proceed, and some of them may amount to critical paths.
The hon. Gentleman said that there was not sufficient reference in the document to new technologies, and that we needed a clearer global vision. The EU has said clearly that 20 per cent. of all energy is to come from renewable sources by 2020. I do not think that a group of countries could be much clearer on how valuable they believe new technology and renewable energy are to member states and the world than by making that kind of commitment.
As the hon. Gentleman knows, because we are rather far behind on renewables, we have to make what amounts to an eightfold increase in the amount of energy coming from renewable sources between now and 2020. That is a tremendous commitment. People in this country will see enormous change, not least because they will be able to use microgeneration in their own homes.
I do not think that there is a need for more information in the document. There are other meetings and forums where intense debate is taking place about how to increase renewables, how to do more research and how to share technologies with developing and emerging economies.
The hon. Member for Wealden discussed robust carbon markets. We very much agree with his sentiments. We want to do everything that we possibly can to ensure that such markets are robust, that we reduce permits and that we go to full auctioning. Those concerns are shared across the House.
We would not support putting a floor on the carbon price. It would require the market having to guess what the next Government intervention might be. We believe that the market needs to find its own place. The carbon price has gone down, of course, but it has begun to come up again, and we are content with that.
The hon. Gentleman spoke about the recession. I mentioned it earlier, but I did not respond specifically on a point that has been clarified for me. The Commission took account of the recession in the calculations. Apparently the €175 billion that was quoted falls to €152 billion as a consequence of the recession. It has just been pointed out to me that that has already been taken account of in the background papers. Because of the very long term and the ability of countries to absorb the funds, we think that the adaptation funding will not require adjustment for what we trust will be a relatively short-term recession.
The hon. Gentleman suggested that there should be an independent analysis of the communication and its robustness. All I can say is that the debate is moving quickly, and more analysis will come from many sources. We will obviously depend on such work when and as it is done.
My hon. Friend the Member for Morley and Rothwell asked a number of questions. He asked what the adaptation strategy was based on. He believes that the science has moved on and that there are difficulties with holding to the 2° increase. We are all sympathetic to his case, but we cannot move the goalposts constantly because, as I have said, that would make our negotiations impossible. We need a baseline. Some other countries are not prepared to accept that we must keep the current baseline in our sights. It would not be helpful to international negotiations if we changed our position.
As I said earlier, because of the need for adaptation funds, the amounts that have to be paid and the ability of developing countries to make use of them, we will not need to adjust our thinking on finance flows in the short term. However, my hon. Friend is right that if we cannot keep to 2° or lower, the cost of adaptation will escalate and everything will become much more difficult. That brings us back to the point that we have made so often; we must get this global deal because we cannot afford to exceed the 2° limit.
My hon. Friend understandably expressed great frustration with the failure of the International Maritime Organisation and the International Civil Aviation Organisation to come up with a formula to deal with targets for the shipping and aviation sectors. We agree that that is frustrating. We continue to work with those bodies, but agree that the United Nations framework convention on climate change is the right forum and that it might have to set the targets and take the work away from them.
As always when I hear him speak, my hon. Friend referred to his favourite subject of contraction and convergence. He knows that many people are sympathetic to the idea that fairness should come out of a contraction and convergence process. In the Council conclusions of 2008, the EU suggested that it should be possible to move to 2 tonnes per capita by 2050. However, I am sorry to tell him that that model is not acceptable to other countries. I am sure that he knows that. I say to him again that when we are trying to get a global agreement, we must work with the grain and go where we think the compromise can be struck. Although his suggestion might be the ideal method and the world might come round to it, it cannot be built in at this point in negotiations on getting to 2020, and certainly not by the EU.
The hon. Member for Cheltenham spoke about carbon intensity targets. Our options are open in respect of the type of action major economies could take on that. We believe that carbon intensity could be a useful metric for developing countries because they have much more variable growth. He also mentioned international institutions, which have a fundamental role and are already doing a lot. We are putting pressure on them to do more. We need the global agreement to get international institutions to do more and to do it more effectively.
The hon. Member for Cheltenham spoke about many issues relating to the science and the possibility that we might exceed 2°. We cannot afford to take a different attitude and decide that everything has to be changed because, as in the case under discussion, one scientist, rather than the whole of the international panel, says that things are even worse than suggested. As I have repeatedly said, we must work from the available baselines. We are working from the fourth assessment panel and the science that has given us the framework in which international negotiations should take place. The European document under consideration contains a suggestion for the need for a review in 2016, which is a short time away. If we manage to get a global agreement and see that the science is indeed so much worse and that we need to make much greater adjustments than we have already agreed, that opportunity will be available. It is important to get a deal now, even if it requires amendment later.
Martin Horwood: The Minister is right about the importance of the global deal; I am sure that we are all agreed on that. I am alarmed, however, by her belief that only one or two scientists think that some of the climate change indicators are worse than the IPCC scenario. I commend to her the Public Interest Research Centre report, which catalogues a whole series of data including some showing that the tropical climate zone expanding ecosystem is proving more vulnerable to carbon sinks and temperature rise. A whole range of science is now showing trends that are worse than the IPCC’s worst-case scenario, so the situation does not just involve a few isolated scientists; it is a very general picture that is linked to the time lag that is built into the IPCC’s whole process.
Joan Ruddock: I accept entirely what the hon. Gentleman says, and of course the situation involves more than one scientist. He quoted one scientist, but I apologise for representing him in the way that I did. However, we need to work with the international panel’s framework, because it is the basis on which everything is being negotiated. As I have repeatedly said, it is extremely difficult to get people to agree and to accept even that framework. If we get a global agreement, we will have made such progress that, if we are told that the science is so much worse, it could be brought into play and reviews could take place. I think that we are agreed, however, that we need a starting point, and that starting point will be based on the framework.
I think that it was my hon. Friend the Member for Morley and Rothwell who said that recession was an opportunity, and questioned whether we were making enough of it. We know that if there were fewer cars and people drove less, they would produce fewer emissions, which is a good thing that nobody could disagree with, but we also know that most of us, most of the time, will want to have a car and will want to drive it. On the scrappage scheme, if an individual purchases a car that has no emissions and is more fuel-efficient, there is an environmental gain, albeit a very small one. Much of the Government’s package and future plans are based on moving to better emission standards and to greener technology.
I have probably dealt with most of the questions, but there were references to specific countries, so I will touch on those. The hon. Member for Cheltenham mentioned the US, Australia and Canada. There is no doubt that, from the point at which the new President of the United States starts this year, it will be extremely difficult for that country to come forward with a really ambitious programme. What we have heard and what we believe is critical is his commitment that the United States will accept that an 80 per cent. reduction by 2050 is necessary, and that he will lead in the discussions at Copenhagen. Although we do not know what the US will offer, the new mood in all the meetings in which the US has been involved is so positive that we believe that it will make a real contribution, which would have been impossible before the new presidency. To that extent, we are optimistic.
Although the Australians have postponed introducing their emissions trading for a year, they have come forward with a much better offer on emissions reduction, so we feel positive about Australia.
It is true, as the hon. Member for Cheltenham says, that Canada seems to be on a path of increasing emissions. We have told all developed countries that science requires us to make cuts within the range of 25 to 45 per cent. —that is in the Commission’s document—and that we expect all developed countries to come forward with comparable offers. They must have an incentive, so we will not suggest to the EU that we should go to 30 per cent. or even 40 per cent. now for 2020. We want to create the incentive of only 20 per cent. now in the EU, but that a global deal would automatically trigger 30 per cent. That is an important bargaining chip, and we do not intend to give it away.
 
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