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Climate Change Bill [Lords]

I shall address the comments of the hon. Member for Northavon (Steve Webb) first. As he knows from many debates that we have had, it is our strong view that setting a binding limit in the Bill would send the wrong signal to our international partners about our support for a global trading market. The ultimate goal is to have a truly global carbon market, and that is particularly important given the ongoing negotiations on a comprehensive global long-term framework for action, which we hope will be agreed in Copenhagen in December next year. The hon. Gentleman also needs to reflect on the Stern review, which showed that international emissions trading under binding caps plays a vital role in the global response to climate change. Lord Stern reaffirmed that during debates on the Bill earlier this year. He stated:"““Carbon trading has a very powerful role not only through cost but in that much broader and deeper context of putting a global deal together.””—[Official Report, House of Lords, 11 March 2008; Vol. 699, c. 1416.]" We are, and have been, determined not to set a limit in the Bill and not to undermine the European Union emissions trading scheme. No limit is specified in the Bill, but we are making provision for setting limits in secondary legislation. [Interruption.] The hon. Gentleman referred to the Lords amendments that had placed the 70:30 split in the Bill. I am merely reiterating the points that we have made earlier, and the reasons why we are not prepared to include that in the Bill. The hon. Gentleman said that some Ministers were beginning to talk as though it did not matter what decisions were taken, but I must point out to him that all decisions matter. Throughout government, we have a commitment to work to ensure that sustainable development and climate change are considerations in all the decisions that we take. We have made it clear that our decisions, whether on the security of supply, which is incredibly important in terms of energy, or on issues such as the expansion of Heathrow, will have to take account of environmental conditions and environmental limits. That is the basis on which decisions will be taken. Sometimes the hon. Gentleman speaks as though he expects our economy just to stop in some way because of our commitment to reductions in CO2 emissions. There will have to be growth in certain sectors, but what matters is how it is undertaken. The Government have made it clear that we are on track to move to a low-carbon economy. We know that doing so is in our interests, as is saving energy and being more energy-secure. He need only look at our renewables strategy to know that we have made a commitment, that we expect to produce many more green jobs as a consequence, and that that is clearly in this country's interest. For that reason, we can give assurances that a huge domestic effort will be made; indeed, we have a raft of policies in place to make that domestic effort.