Treaty of Lisbon (No. 8)

The hon. Gentleman makes a good point—and a good case for a stronger Europe that is able to take action on that issue. The European Union emissions trading scheme is the single most important development in tackling climate change for the UK and Europe; arguably, it is a pioneer for the rest of the world. Emissions trading will play a vital role in reducing carbon emissions internationally. Phase 1 has shown how a scheme can be successfully set up and administered, and have very high compliance rates, but it has not shown how we can use it to cut carbon emissions. However, the scheme is a step in the right direction and there are encouraging signs that we are learning from the over-generous allocations in phase 1, which were raised by the hon. Member for East Surrey (Mr. Ainsworth). I am optimistic that phase 2 can make more of a contribution to emissions cuts, although it is regrettable that that phase has a maximum of 10 per cent. auctioning, given that we all know that auctioning is far more economically efficient. It is even more regrettable that the UK will get up to only 7 per cent. auctioning. I urge the Secretary of State and Ministers to consider extending the auctioning to 100 per cent., particularly as we approach phase 3. That would give us the best possible tools and enable us to make the scheme effective and pass the price signals on. We have already heard about the shortcomings of the ETS and the exclusion of aviation and shipping, although it is welcome that the Government at least recognise that that needs to be pursued. We should, as a House, recognise the success of the scheme so far and the fact that it is being emulated in many other parts of the world, such as California. The Environmental Audit Committee, several members of which are here in the Chamber, recently went on a trip to Australia, where we were told that the Australians are setting up an emissions trading scheme using the EU scheme as a model and learning from our mistakes. We were also able to enlighten them somewhat on the changes that we would have made. Their scheme goes further in terms of including transport, so I hope that countries will be able to learn from each other on this. It is particularly pleasing that Australia's decade of climate change denial has come to an end with the electors deciding to elect Kevin Rudd. Interestingly, that was perhaps one of the first elections where the issue of climate change was so pivotal in deciding the result—that may be a sign of things to come. They are having their own mini-Stern report, the Garnaut report, which will, I hope, help them to catch up on lost time. The EU has had many environmental successes, and I will touch on a few of them; others have already been mentioned. The landfill directive, with its escalating penalties for sending too much waste to landfill, is driving up recycling rates across the UK, and they have significantly increased in the past few years. Some of the proceeds from that go into funding community groups, including some in my constituency that have been lucky enough to receive grants. It was about time that we learned from our continental neighbours, many of whom have been recycling huge amounts more than us for decades—but better late than never, and we still have a long way to go. The interestingly named WEEE—waste electrical and electronic equipment—directive has been helping to encourage more recycling and safe disposal of electrical goods. There is the EU energy label, with the A to G ratings on white goods, which has been very successful in making it easier for consumers to know, when buying appliances, which ones will cost them dear in their energy bills.