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Climate Change Bill [Lords]

I am delighted to respond to the hon. Gentleman, who is a close and highly valued colleague on my Committee. I strongly support—and have consistently supported—a switch to much higher VED rates for new cars. That is a direct incentive when people replace their vehicle for them to switch to a low-carbon alternative. I believe that my Front-Bench colleagues share that position. We believe that the changes that the Chancellor announced this year for new vehicles are fully justified and will provide a strong incentive. I am delighted that the hon. Gentleman drives a Smart car. I am happy to say that I have a liquefied petroleum gas taxi parked in the Members' car park. It is not only cheap to run but free of the congestion charge. Energy efficiency standards for the built environment are being tightened only slowly. Incentives to decarbonise the existing housing stock and, indeed, other existing buildings, are notable by their almost complete absence. Again, the technology is available. The three sectors—electricity generation, transport and the built environment—account for a huge proportion of emissions. We could take steps today, with no disruption to people's lifestyles and little cost to the overall economy, even in the short term, and some benefit in the long term, to increase greatly the change to a low-carbon economy, but we are not doing that. I am delighted that the Minister shares my view of the importance of the interim target. What we do between now and 2020 is far more important than arguing about whether the 2050 target should be 60 per cent., 80 per cent. or even 95 per cent. The next decade or so will define whether we limit the global temperature rise to an average of 2° C. If we do not make progress soon, the action needed will be far more expensive, disruptive and uncomfortable for people in all parts of the world. I will seek to toughen the 26 per cent. target for 2020 in clause 6. I want to endorse the concerns about the continued exclusion of aviation and shipping from greenhouse gas calculations. That makes no sense. The arguments have been well rehearsed. I know the answer on aviation—it will come into the EU emissions trading scheme in due course—but we have no idea about whether the date that the Minister has in mind will be achieved or the terms on which aviation will be included. It is all pie in the sky at this stage. We should make a commitment in Britain to take a lead and say that aviation and shipping should be included. A great deal of faith has been placed in the wisdom of the Committee on Climate Change and I hope that it lives up to it. I was dismayed when I read of Lord Turner's appointment to the Financial Services Authority. In conversation last week, he told me that he does not expect to stay on as chairman of the committee beyond next February. That is a pity, although he may remain a member. I hope that the Government will give their urgent attention to finding a replacement who commands the same respect in business and politics. In a spirit of bipartisanship, perhaps the Government should consult the Opposition about the appointment of a successor. Indeed, my Committee would be happy to make some suggestions, too. Although I acknowledge that Britain must decarbonise its economy, the overriding need in the next decade is to cut emissions globally. The benefit to the planet is equal from any cut in emissions, regardless of where it is achieved. I am therefore much more relaxed than some of my colleagues in this House and the other place about letting developed countries buy, in the short term, carbon credits to meet the targets abroad. That may be the fastest and most cost-effective way in which to cut emissions. My hon. Friend the Member for East Surrey was measured about personal carbon trading when it was raised in an intervention. He knows that I support the concept and that my Committee has just published a report about it. I was dismayed that the Government appear to have dropped their interest in the subject. The previous Secretary of State, the right hon. Member for South Shields (David Miliband), was positive and engaged in the debate about it. I regret that the Government have put it on the backburner. At the very least, it is surely worth examining in more detail. It is complicated and has some difficulties, but it could be the single most powerful incentive for individuals to make low-carbon choices in a range of daily decisions. I strongly support the Bill because it is good for Britain and the world. Countries at the forefront of tackling climate change do the right thing not only environmentally but economically. Decarbonising our economy, especially our transport infrastructure, will give Britain a huge competitive advantage. It is not some terrible burden that we have to bear, but something that will give us a head start economically. It is right to encourage and incentivise businesses to offer their customers low-carbon alternative products and services. As long as the regulations involved recognise the industry's investment, even forcing them to make that switch could be beneficial for business. I will not only support the Bill, but try to strengthen it, though I wish to make it clear to the Whips that I do not want to do that as a member of the Standing Committee—I will reserve my strength for Report. I warmly commend the Bill to the House.