Climate Change Bill [HL]

My Lords, this has been an interesting and passionate debate, for which I thank your Lordships. I am interested that we have returned so much to the area of emissions trading schemes. As the noble Baroness, Lady Young of Old Scone, said, the amendment would not affect trading schemes, which mostly take place between national and international corporations. That would absolutely continue if the amendment were passed. The amendment would not affect trading schemes in any way; legally, it could not and would not be allowed to affect trading schemes. All that the amendment would do is put a cap on the number of those schemes introduced into the accounting, not into the trading. Indeed, internationally, it would put no limit on the Government investing in foreign and developing countries’ emission reductions; the Government could carry on doing that. All that would happen is that, after a certain number, those reductions would not be included in the bean counting. The amendment would ensure that the Bill met its billing and the advertising that the Government and we, proudly, within the UK want it to meet in terms of UK leadership. The Minister gave four reasons why the Government do not like the amendment. Funnily enough, I agree with them absolutely. I will not go through them all, but the amendment would not affect any of them. As the Minister said, there are limits on the number of CDM credits that can be included in the EU ETS. We already have those restrictions in certain areas. The Minister suggested that I was wrong about the Government’s present CO2 targets, which the amendment would actually loosen. He mentioned 2005, but the government commitment was made in 1997 and it was a domestic commitment. I do not know whether the Government changed the position in 2005-06, but it was a 1997 commitment, which made no difference to trading. The one area on which I disagree with the Minister relates to giving faith. That is not because I do not believe in the Government’s excellent intentions in this area, because I do. He mentioned figures. The United Kingdom’s CO2 emissions since 1997-98 have stayed more or less the same, despite the good intentions of all of us to reduce them. I looked at the information from Defra at the end of last week. The last two bars on the graph for 2005-06 show a decrease, but the only reason for that is the inclusion of EU ETS credits. That is why we cannot just have faith. The final matter that I will comment on is whether this should all be sent back to the Committee on Climate Change. The decision needs to be equally political and technical. I am disappointed that the Government have not moved at all since the Committee stage and, on that basis, I would like to test the opinion of the House. On Question, Whether the said amendment (No. 106) shall be agreed to? Their Lordships divided: Contents, 179; Not-Contents, 147. Clause 21 [Carbon units and carbon accounting]: