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Lord Teverson: My Lords, I know that we have gone through this on several occasions, but no amendment has been tabled or anything said in this Chamber that threatens the integrity of the EU ETS in any way. That seems to be the noble Lord ’s implication.
Lord Hunt of Kings Heath: My Lords, I do not mean to suggest that in moving his amendments, the noble Lord is seeking to undermine the integrity of the EU ETS. Our fear is that that might be an unintended consequence—I put it that way—or certainly in relation to how it might be seen internationally. We are worried about the impact in terms of UK support for the EU ETS. We might disagree, but I would not want to suggest that the noble Lord himself in his amendments is seeking to undermine the EU ETS, and indeed I have taken on board his comments about ways in which the scheme should be regulated more rigorously. I hope that I have clarified the issue up to a point.
We do not want to penalise companies which decide that it is more cost-effective to generate energy in the UK than in other EU countries, resulting in UK emissions going up, but EU-wide emissions coming down. I want also to address a very important point made by noble Lords. The use of uncapped credits by the EU ETS needs to be carefully controlled. We are in the middle of negotiations on phase 3, but my understanding is that the Commission is proposing that there should be no new access to the clean development mechanism credits in this phase. Although we do not want to legislate in an area that we fear might be seen to undermine our support for the EU ETS, we recognise that additional measures are needed in the traded sector.
I understand the points made by noble Lords about the probity, if you like, of the trading scheme. The noble Lord, Lord Taylor, asked how EU ETS credits will be accounted for after 2012, and reflected that we have already acknowledged that the accounting process will become more complex in phase 3; that is, post-2012. The way to consider how best to link the Bill to phase 3 is once the EU negotiations have concluded, but it is a matter to which we will need to pay close attention. Having expressed his support for the noble Lord, Lord Teverson, the noble Lord, Lord Lawson, has not stayed to develop the theme he introduced in his speech at the beginning of our debate. However, it is clear that we need to do all we can to ensure the integrity of the credits used. We want to do all we can to ensure that the process is transparent and robust. To that end, we will need to keep on monitoring and working internationally to ensure that that is so.
In answer to the noble Lord, Lord Taylor, on what the carbon units will be, in the consultation we are currently undertaking on carbon accounting regulations, it states:
“We propose to count the following as carbon units: assigned amount units, certified emission reductions for the clean development mechanism, removal units, emission reduction units and the European unit allowances for the EU ETS”.
I am happy to provide further information on this if the noble Lord requires it.
We then come to the substance of the debate. The noble Lord, Lord Teverson, tempted me down to the
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It is also fair to point out, and it has been acknowledged, that the last thing the Government want to do is say, “It’ll be all right because we can simply trade away the issues we need to tackle in this country”. I think that the Government have clearly signalled that they have done and will continue to do all they can to reduce emissions in this country. The amendments I have tabled articulate that aim and make it clear that the Committee on Climate Change will ensure that these matters are brought to the attention of the public and Parliament. However, in the end we worry about the impact of the amendments tabled by noble Lords on the EU ETS, and that is why we think, after a great deal of consideration and debate in the other place, along with the amendments being brought forward, that we have achieved the right balance that allows the necessary flexibility within the context of an utter determination for us overall to meet the 80 per cent target.
Amendment No. 10Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 10. I have spoken to this amendment with Amendment No. 1.
Moved accordingly, and, on Question, Motion agreed to.
Amendment No. 1111: Insert the following new Clause-
(1) In exercising functions under this Part involving consideration of how to meet-
(a) the target in section 2(1) (the target for 2050), or
(b) the carbon budget for any period,
the Secretary of State must have regard to the need for UK domestic action on climate change.
(2) “UK domestic action on climate change” means reductions in UK emissions of targeted greenhouse gases or increases in UK removals of such gases (or both).”
Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 11. I have spoken to this amendment with Amendment No. 9.
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Moved, That the House do agree with the Commons in their Amendment No. 11.—(Lord Hunt of Kings Heath.)
[Amendment No. 11A, as an amendment to Amendment No. 11, not moved.]
On Question, Motion agreed to.
Amendments Nos. 12 to 16Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 12 to 16. I have spoken to these amendments with earlier amendments.
Moved accordingly, and, on Question, Motion agreed to.
Amendment No. 1717B: Insert the following new Clause-
“Limit on use of carbon units(1) It is the duty of the Secretary of State to set a limit on the net amount of carbon units that may be credited to the net UK carbon account for each budgetary period.
(2) The “net amount of carbon units” means-
(a) the amount of carbon units credited to the net UK carbon account for the period in accordance with regulations under section 27, less
(b) the amount of carbon units debited from the net UK carbon account for the period in accordance with such regulations.
(3) The limit for a budgetary period must be set-
(a) for the period 2008-2012, not later than 1st June 2009, and
(b) for any later period, not later than 18 months before the beginning of the period in question.
(4) The Secretary of State must set a limit under this section by order.
(5) The order may provide that carbon units of a description specified in the order do not count towards the limit.
(6) An order under this section is subject to affirmative resolution procedure.
(7) Before laying before Parliament a draft of a statutory instrument containing an order under this section in relation to a budgetary period, the Secretary of State must-
(a) take into account the advice of the Committee on Climate Change under section 34(1)(b) (advice on use of carbon units) in relation to that period, and
(b) consult the other national authorities.”
17C: Page 14, line 20, at end insert-
“( ) The net amount of carbon units credited to the net UK carbon account for a budgetary period must not exceed the limit set under section (Limit on use of carbon units) (limit on use of carbon units) for the period.”
Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 17 and do propose Amendments Nos. 17B and 17C in lieu of the words so left out of the Bill. I have spoken to these amendments with Amendment No. 9.
Amendments Nos. 17D to 17G, as amendments to the Motion, not moved.
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Moved accordingly, and, on Question, Motion agreed to.
Amendments Nos. 18 to 21Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 18 to 21. I have spoken to these amendments with earlier amendments.
Moved accordingly, and, on Question, Motion agreed to.
7 pm
Amendments Nos. 22 to 24Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 22 to 24. I am most grateful to the Deputy Speaker for his professional guidance through the intricacies of this stage of the Bill. In moving these amendments, I shall speak also to Amendments Nos. 26, 27, 29, 30, 32 to 39, 53, 55, 60, 65, 69, 70, 72, 73 and 75. The key amendments in this group form a comprehensive package of government amendments introduced in the other place to clarify the role of the adaptation sub-committee of the Committee on Climate Change. These amendments also concern the formal vesting date of the Committee on Climate Change, the date by which it is to provide formal advice on the 2050 target and the level of the first three carbon budgets.
We listened carefully to the arguments put forward in this House about adaptation. We fully agree that expert advice and scrutiny of how the Government assess the risks and implement their adaptation work programme are important and useful, and we believe an adaptation sub-committee of the Committee on Climate Change could have a potentially useful role in this regard. However, we believe that the Committee on Climate Change’s role on adaptation should be consistent with its work on mitigation; that is, giving technical advice and analysing and scrutinising progress. We think it should have a slightly different role from that originally proposed by this House. Our amendments propose that it should provide technical advice to the Government and the devolved Administrations on the UK risk assessment and progress reports to Parliament about the UK Government’s adaptation programme.
As we propose new adaptation functions to the work of the Committee on Climate Change, we have made small amendments around the provision of information, guidance and directions relating specifically to the committee’s new adaptation functions. We also propose to change the date by which the Committee on Climate Change’s advice is required and the commencement date for Part 2 in order for the committee to be brought to life and formally give its advice on 1 December. There are also a small number of minor and consequential drafting amendments in this group. I hope noble Lords will accept that this has been a positive response to debate in your Lordships' House.
Moved accordingly, and, on Question, Motion agreed to.
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Lord Hunt of Kings Heath: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 25 to 39.
Moved accordingly, and, on Question, Motion agreed to.
Amendments Nos. 40 to 42Lord Davies of Oldham: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 40 to 42. I shall speak also to the other amendments in this group and address Amendments Nos. 43A and 43B, which have been tabled in response to the clear views expressed by the Delegated Powers and Regulatory Reform Committee in its 15th report of the 2007-08 Session.
The purpose of the first group of amendments is to achieve a significant reduction in the number of single-use carrier bags distributed in the UK. More than 11 billion single-use carrier bags are distributed each year. They have a direct environmental effect as a particularly visible form of litter when discarded irresponsibly, through the risk they present to marine life and the emissions that they generate from transport and waste management. However, their disposable, easily-substituted nature also makes them an iconic symbol of our throwaway society. By taking action on single-use carrier bags, we hope to catalyse other beneficial behaviour changes, including an increase in public waste awareness and greater participation in recycling by consumers.
As announced in the Budget, we wish to take enabling powers to require retailers to charge for single-use carrier bags. However, before these powers are exercised, we want to give retailers the opportunity to pursue, on a voluntary basis, a significant reduction in the number of bags they distribute. We believe that we could achieve at least a 70 per cent reduction in the number of single-use bags distributed if a charge were introduced. The Government would be prepared to impose a charge if a similar reduction could not be achieved through voluntary action.
The effect of the new clause introduced by Amendment No. 43 is to introduce a new schedule conferring powers on the relevant national authorities in England, Wales and Northern Ireland, but not Scotland, as requested by the respective devolved Administrations, to make regulations about charges for single-use bags. The specific powers are contained in the new schedule, which Amendment No. 78 introduces. It is split into three parts covering powers to require a charge for bags, powers to create civil sanctions in respect of sellers who breach such regulations and procedural matters.
Part 1 of the new schedule provides powers to make regulations about charging for the supply of single-use carrier bags. It provides for regulations to: require sellers of goods to charge for single-use carrier bags supplied at the place where they are sold or for the purpose of delivering goods; define sellers of goods; define a single-use carrier bag; specify the minimum amount that sellers must charge for each single-use bag; appoint an administrator to administer the provisions
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Part 2 of the new schedule contains provisions about civil sanctions. The provisions in Part 2 follow the model used in the Regulatory Enforcement and Sanctions Act 2008. Of the possible sanctions in that Act, we are proposing fixed monetary penalties, variable monetary penalties and compliance notices only. Administrators will be able to choose which sanction is appropriate on a case-by-case basis. We will not be creating any criminal offences and have proposed that any fixed penalty fines in respect of breaches of the proposed bags regulations be kept to a minimum of £5,000. There is, however, provision to require retailers to publicise the fact that they have breached the regulations.
At this stage, I should like to bring to the attention of the House the government amendment to Commons Amendment No. 43, Amendment No. 43B, which ensures that any future regulations concerning the levels at which variable and non-compliance penalties are set will be subject to the affirmative resolution procedure. That was recommended by the Delegated Powers and Regulatory Reform Committee. The Government are grateful for its advice and are seeking to comply with it.
Part 3 of the new schedule provides for the regulations to be made by a single national authority or by two or more national authorities as joint regulations. There could therefore be a single set of regulations covering England, Wales and Northern Ireland if the three authorities agree. It also disapplies the hybrid procedures to any draft regulations made under the powers contained in the new schedule aswe are providing for the power to name specific retailers who will be subject to the charge. The same approach is taken in relation to the waste reduction scheme provisions in Clause 70(5). Amendments Nos. 52, 54, 56 to 59, 61 to 64 and 67 are consequential on the new clause and schedule.
By tabling these amendments, the Government are responding to clear, strong public demands for action on single-use carrier bags. These enabling powers provide a powerful lever in our continuing efforts to phase out single-use carrier bags in favour of longer-lasting, more sustainable alternatives.
The other amendments in this group—Amendments Nos. 40, 41, 42, 66, 77 and 80—relate to powers to allow for up to five pilot waste incentive schemes in England, as set out in Part 5. Amendment No. 41 ensures that the Secretary of State may exercise powers to make subordinate legislation or issue guidance under the waste reduction provisions separately to the designation of a specific pilot area. This ensures that the Government can provide a clear framework for pilot authorities wishing to pilot a scheme before they submit proposals. Amendment No. 40 is a technical amendment consequential on Amendment No. 41.
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When the House previously discussed the Bill, my noble friend Lord Rooker, who was the Minister in charge at that point, mentioned our intention to bring forward an amendment to clarify that a local authority’s duty to arrange for collection of household waste in England is discharged by collecting waste that is presented for collection in the way specified in a Section 46 notice to residents; for example, in a specified receptacle. Any waste left in contravention of a Section 46 notice need not be collected. Once a local authority has informed residents of how they should present their waste for collection—for example, by putting it in a bin—the authority need not collect any waste left lying outside that bin, the so-called side waste. Amendment No. 42, which would apply to all waste collection authorities in England and Wales, seeks to achieve this. As explained, such policies have been successfully operated by a significant number of authorities, with the support of their communities, using powers conferred by the Environmental Protection Act 1990. As part of a good overall service, they have helped householders to understand how much waste they produce and encouraged them to increase the amount that they recycle. In line with good practice, the Government expect that authorities will use all the powers available to them proportionately and sensibly, hand in hand with effective communications and support for residents.
We do not believe that the sensible use of these powers should lead to uncollected rubbish building up in local communities. It is important to note that all authorities will continue to have to meet existing requirements to collect household waste. In addition, local authorities have a duty, under Section 89 of the Environmental Protection Act 1990, to keep land under their control clear of litter and waste. This approach is not a new one; Defra set out its position in a letter to local authorities in August 2005, but it has not always been clearly shared by all authorities, which is why it will be helpful for local authorities to have a single, clear point of reference in legislation.
Amendment No. 66 is consequential on Amendment No. 42. Amendment No. 77 would ensure that the power to allow waste collection authorities to require an occupier to place waste for collection in receptacles identified by specified means—for example, by tags or stickers—is available only to those authorities in England which are operating a waste reduction scheme in their area. Finally, Amendments Nos. 80 and 81 would amend the Long Title of the Bill to reflect the addition of the subject matter introduced by Amendment No. 42. I clarify one point that I made earlier about fixed penalties for breaches of proposed bags regulations. I stated that the penalties would be kept to a minimum of £5,000. This was a slip of the tongue; I meant a maximum of £5,000 and apologise for that error. I commend the amendments to the House and beg to move.
Moved, That the House do agree with the Commons in their Amendments Nos. 40 to 42.—(Lord Davies of Oldham.)
Lord Taylor of Holbeach: My Lords, before I speak to these amendments, I declare an interest as a co-chairman of the Associate Parliamentary Group on Strategic Resources. This used to be called “Waste”,
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