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Climate Change Bill [Lords]

It is valuable to hear sceptical voices in the debate, because when there is a consensus it is important to test the arguments to the limit. I would not criticise anyone who has put forward a contrary point of view. I would ask those on each side of the debate to ask themselves, ““What if I am wrong?”” The consequence of taking urgent and drastic action now, which I propose we should, may have an economic cost, but it will bring in return a lower dependence on finite fossil energy resources. There will be an increase in resource efficiency, which will improve the atmosphere and biodiversity as a result. To me, those are desirable outcomes. Along with the science and the effects on the environment, we should take some other considerations into account. One of those is growth in the earth's population, which is already past 6 billion and forecast to be 9 billion by 2050—more mouths to feed, more demands on limited resources, and more demands for wealth, jobs and the ability to buy things. We must take that challenge into consideration. The further challenge is that while we deliberate on what action to take, investment decisions are being made about the future. We are in danger of laying down a second carbon economy while we decide what action should have been taken. That is another reason why urgent action is required. On the crucial issue of the targets for 2020 and 2050, and the other issues between us, I ask people to bear in mind that the eventual wording of the Bill, which is a forerunner and the first of its kind in the world, will determine the credibility of the final law with people beyond the Chamber, and with UK citizens whom we want to change behaviour in order to contribute to a low-carbon future. It will also determine our credibility in the eyes of other countries and Governments around the world whom we want to follow our example, and of those who make investment decisions on whether to go for a carbon or low-carbon future. In the years that follow our decision on the Bill, those investment flows will make the biggest difference to the future. I therefore ask for cautious wording to be adopted on the crucial issues that have been dividing us tonight. The Bill has just the one instrument: emissions trading. It is important to bear in mind, however, that the Bill anticipates not just one emissions trading scheme, but a whole series in this country and hopefully around the world. If the Stern approach to achieving a low-carbon future through the price of carbon is adopted, it is important that emissions trading schemes are successful and credible with markets. As other Members want to speak, I have insufficient time to discuss the tools that are not in the Bill. Clearly, however, when we announce a carbon budget next year, and an action plan for five years, all those other instruments—economic instruments, regulation, education, publicity and, hopefully, media support—will come into play. On the specific issue of power generation, 30 years ago Germany chose the route of a feed-in tariff to promote greater renewables use, whereas this country chose the route of obligations—the non-fossil fuel obligation, and now the renewables and renewable transport fuel obligations. I do not say that they were right and we were wrong, but given this summer's consultation about feed-in tariffs, and all that we have said about smart meters during consideration of the Energy Bill, I hope that this country can at least graft those on to our existing tools as part of our solution.