My Lords, I stand for the first time in this new position. It gives me great pleasure to stand in front of the Committee as the Minister responsible. I do so with a degree of trepidation not least because, as soon as we started, there was an intervention from my noble friend. Nothing can unsettle the nerves more right at the beginning of a new Bill that you have just picked up. My noble friend talked about the heat, and it is not that I am asking for special favours but I have an added challenge, which of course is self-inflicted, because we are in the month of Ramadan. If my throat seems to dry up on occasions, I hope that noble Lords will bear with me.
In moving Amendment 93A, I shall speak also to Amendments 98A and 98B. Nearly half of the UK’s carbon dioxide emissions come from the built environment, so improving the energy efficiency of, and reducing carbon from, buildings is essential in enabling us to meet the carbon budgets to which we are committed as part of our contribution to tackling climate change. As noble Lords will know, the majority of these emissions arise from existing buildings and we are taking action on this through programmes such as the Green Deal. However, if we do not tackle new buildings, we only store up problems for the future. By not taking action now, we may find that we have to take forward expensive retrofit. That is why we are bringing forward the zero-carbon homes standard from 2016.
On a personal note, I suggest that this is an area which is in its infancy. It originated under the famous Merton rule. Of course I had the privilege of serving as a Merton councillor and as the cabinet member for the environment when this rule first emerged. It is great to see how this particular issue has taken on a life of its own, and we are where we are today.
We intend to ensure that, from 2016, there is a framework in place so that all carbon emissions associated with the energy used to heat, light and power building services in new homes will be abated. We recognise, however, as did the previous Government, that it is not always technically feasible or economically viable to achieve zero-carbon emissions through on-site measures only. Therefore, to meet our zero-carbon homes standard, and to maintain cost-effectiveness and flexibility for house-builders, we propose to amend the Building Act to allow for the provision of off-site carbon abatement measures to off-set any residual emissions arising from the use of regulated energy.
The Building Act already provides us with the necessary powers to set the zero-carbon target. However, in its current form, it has no provision for the inclusion of off-site carbon abatement measures. Therefore, the new clause sets out enabling powers for the provision of off-site carbon abatement measures. Our amendments will offer developers the choice of carbon abatement routes consistent with the ones we consulted on, such as carrying out retrofit work to existing properties, contracting with third-party carbon abatement providers and paying into a national fund. This “menu” approach to carbon abatement work received widespread support from consultation responses.
In brief, the new clause establishes the necessary powers for the Secretary of State to make building regulations in relation to off-site measures for abating carbon dioxide emissions. These measures could be taken by the developer or by a person on the developer’s behalf, or consist of payment into a fund that invests in carbon abatement projects. It also provides for administrative provisions to be made to facilitate the offsetting of those emissions against emissions from a building. These include provisions relating to the administration, by or on behalf of the Secretary of State, of funds for carbon abatement measures into which allowable solutions payments can be made, and to establishing a maximum level of payment into a fund. There is also provision for a register of certificates showing compliance with the zero-carbon standard by use of allowable solutions to be set up and maintained by or on behalf of the Secretary of State, and for charges to be made in connection with use of the register.
Amendments 98A and 98B are related to Amendment 93A. Amendment 98A provides for the clause to be commenced two months after Royal Assent. Amendment 98B makes the necessary change to the Long Title of the Bill to encompass the clause. These powers will allow developers to off-set residual emissions in a way that is both cost-effective and flexible, thus meeting our joint objectives of a green and growing economy.
I shall respond later in the debate to the specific amendments put forward by the noble Lords, but I hope that I have given the Committee a good sense of what we want to achieve, which will help the debate as we progress. I beg to move.
Amendment 93AA (to Amendment 93A)