I thank my noble friend Lord Caithness for Amendment 73, with which I will take Amendment 144A from the noble Earl, Lord Devon, Amendment 272 from the noble Baroness, Lady Jones of Whitchurch, and Amendment 274 from the noble Baroness, Lady Jones of Moulsecoomb. I thank all noble Lords who contributed to the debate.
From listening to many of the contributions, one would hardly think that, last June, the UK became the first major economy in the world to set a legally binding target to achieve net-zero greenhouse gas emissions from across the UK economy by 2050. The UK already has a very strong foundation of action and leadership to build from, having cut our emissions by 42% since 1990, while growing the economy by 72%.
Climate change is a global challenge, requiring action across the whole economy. Unlike the noble Baroness, Lady Young of Old Scone, I believe that urgency is felt across government. Defra has worked with the industry to reduce emissions through improved productivity. Since 1990, we are producing a litre of milk with 20% less greenhouse gas emissions, and a kilogram of pork with 37% less. Efficiency gains in dairy farming mean that we now produce 9% more milk than we did in 2000 with 23% fewer cows and 9% less greenhouse gas emissions.
Targets are set under the Climate Change Act, but we do not have sector-specific targets under that Act. Indeed, we are following the whole-economy approach advocated so eloquently by the noble Baroness, Lady Worthington. This is to ensure that we meet our climate change commitments at the lowest possible net cost to UK taxpayers, consumers and businesses, while maximising the social and economic benefits to the UK of the transition. To take up the points made by the noble Baroness, we think that the whole purpose of Clause 1 is clear, as expressed in subsection (4). In framing financial assistance schemes, we will have regard to the need to encourage environmentally sustainable food production, which will align the agriculture and food sectors.
However, I note with interest that the Committee on Climate Change’s Net Zero report from 2019 says:
“It is difficult to reduce agriculture emissions to near-zero given the inherent biological processes and chemical reactions arising from crops, soils and livestock.”
Therefore, I cannot reassure the noble Baroness, Lady Jones of Moulsecoomb, that net zero will be achieved by 2050, but we are doing everything we can to let it happen.
In its June 2020 report to Parliament on reducing emissions, the Committee on Climate Change provided recommendations for government departments, including Defra, on policy priorities to address net-zero climate mitigation and adaptation. We will consider this advice and provide a response before 15 October. I believe that the Bill addresses these targets in a very coherent way.
The Government recognise the contribution to greenhouse gas emissions made by the livestock and dairy sectors, while valuing the importance of our farmers in feeding the nation and managing our rural environment. Agricultural greenhouse gas emissions have reduced by 16% since 1990, as I said, with many farms using more efficient agricultural practices. Land use, land use change and forestry continue to provide benefits in carbon sequestration.
The Government recognise the importance of reducing emissions further in these sectors. The clean growth strategy and the 25-year environment plan should reassure the noble Lord, Lord Foulkes, since they set out a range of specific commitments further to reduce emissions from agriculture, including through environmental land management, by strengthening biosecurity and control of endemic diseases in livestock, and by encouraging the use of low-emission fertilisers. The Government welcome the National Farmers Union’s ambition on this—indeed, its target is to reduce emissions by 2040—and the fact that the industry is taking this strong lead. Climate change represents a significant
challenge, but also opportunities. We work closely on this issue with the NFU and other leading stakeholders, including the greenhouse gas action plan partners.
Clause 1(1)(d) enables the Secretary of State to give financial assistance for the purpose of
“managing land, water or livestock in a way that mitigates or adapts to climate change”,
which provides coverage for the reduction and sequestration of carbon emissions. I believe that that statement is very clear. With particular reference to my noble friend Lord Caithness’s Amendment 73, I note that all agricultural or horticultural activities that contribute towards this purpose would already be in scope of funding support under Clause 1(1)(d). For example, financial assistance could be used to incentivise farmers to manage their livestock in a way that reduces their greenhouse gas emissions by adjusting animal feed practices, or to incentivise crop rotation. This provides a foundation for continued improvements, which the Government will drive forward through giving productivity grants alongside introducing the new environmental land management scheme. ELM will ensure that farmers and other land managers are rewarded for delivering environmental outcomes that benefit us all. This new scheme will aim to deliver a range of environmental benefits, including the mitigation of, and adaption to, climate change. Land management activities that could be funded under ELM to reduce greenhouse gas emissions and sequester carbon include tree planting and peatland restoration.
At present, UK forests capture about 4% of our greenhouse gas emissions. We need those trees and forests to grow to capture more carbon. Defra is taking necessary steps to deliver a step change from current planting rates. I hope that reassures the noble Baroness, Lady Jones. Having announced the Nature4Climate fund, the Government are now consulting on a new England tree strategy. We invite input to shape our proposals to plant more trees, protect those we have and support the economy. I will certainly take on board the comments of the noble Lord, Lord Clark of Windermere, which the noble Lord, Lord Foulkes, endorsed, regarding licences for the destruction of trees.
On Amendment 144A from the noble Earl, Lord Devon, the sooner the Government introduce these new schemes, the better for the environment. Reducing direct payments from 2021, as planned, will allow us to do so. Direct payments are untargeted and poor value for money, and deliver little for the environment. All ELMS will come into effect in 2024. Reductions to direct payments will free up money so that the Government can introduce pilots of the ELMS. It can also work to increase the number of farmers who are in new countryside stewardship scheme agreements.
The noble Lords, Lord Foulkes and Lord McConnell, and the noble Baroness, Lady Jones of Whitchurch, also mentioned financial assistance for the devolved authorities. While agriculture is, as they all know, a devolved matter, I would like to reassure them that we are working very closely with officials in all the devolved authorities to establish common frameworks on agriculture. With these explanations, I ask my noble friend Lord Caithness to withdraw his amendment.