I thank all noble Lords for their contributions. I hope it will reassure them to know that targets will be set through a robust and evidence-led process. I have already spoken about our published targets policy paper, which provides an overview of how we intend to develop and bring forward targets by October 2022. In answer to the noble Baroness, Lady Jones of Whitchurch, the process will seek independent expert advice and provide a role for stakeholders, other government departments and the public, and it includes scrutiny from Parliament and the OEP.
In relation to Amendment 19 in particular, tabled by the noble Lord, Lord Addington, the process also involves regular discussions with other government departments, including the Department of Health and Social Care. For example, we are working closely with Public Health England and the DHSC and its expert committee to ensure that our process of developing air quality targets is informed by the latest health evidence. Defra also intends to work closely with the new UK Health Security Agency and the office for health promotion, as soon as they assume their full functions.
On Amendment 34 from the noble Baroness, Lady Parminter, there is a concern that it could be difficult for the OEP to act impartially when investigating complaints regarding target-setting if the OEP advised on the experts used to set those targets. I want to provide assurance on the substantial role of the OEP in relation to long-term targets. Each year, the OEP will comment on the progress reported in the EIP annual report. That provides the opportunity for the OEP to flag up early on where it believes there is a risk that the Government may not meet their legally binding long-term targets. It may make recommendations as to how progress could be improved, to which the Government would then have to respond.
If the Government have missed a target, they must, within 12 months of confirming that they missed it, publish and lay before Parliament a remedial plan, which is covered in Clause 5. The OEP could highlight
in a report on the implementation of environmental law whether the steps set out in the remedial plan would be sufficient to ensure that the target was then achieved. I hope that will also reassure my noble friend Lord Lucas that his Amendment 17 is not needed. The OEP will also have the power to bring legal proceedings if the Government breach their environmental law duties, including their duty to achieve long-term targets.
With respect to Amendments 36, 45 and 50 from the noble Lord, Lord Vaux, while the Bill does not specify particular matters that must be considered when setting targets, as part of sound policy-making the Government will look to identify and consider a wide range of matters. These are likely to include environmental, economic, social and fiscal factors, as well as international commitments. When we consult on the proposed targets in early 2022, we will provide an impact assessment that will consider the environmental and socioeconomic considerations associated with each target. We think the target-setting stage is the most appropriate time to consider the costs and benefits of individual targets, rather than when conducting the significant improvement tests. That is because the significant improvement test considers targets collectively, which allows for a more holistic assessment of improvements across the natural environment.
The Government are developing their plans for implementing the significant improvement test. My noble friend Lord Caithness has provided some useful ideas for how improvement might be understood for the purposes of that test. However, his proposed Amendment 48 would take away important flexibility, and I therefore cannot accept it.
In response to one of the points that my noble friend made, I shall briefly explain how the significant improvement test works. At least every five years a Government will look to assess whether meeting the legally binding targets set under the Bill’s framework, alongside any other statutory environmental targets, would significantly improve the natural environment in England. The Government will then be required to report to Parliament on their conclusions and, if they consider that the test is not met, set out how they plan to use their new target-setting powers to subsequently close that gap. In practice, that will most likely involve plans either to modify existing targets or to make them more ambitious, or even set new ones.
It seems appropriate to provide the Secretary of State with the flexibility to consider how significant improvement should be understood in relation to the natural environment, because the natural environment is complex and interconnected and requires a considerably more complicated approach than would be expected, for example, simply in relation to carbon. Aspects of the natural environment such as water quality could respond slowly, even to ambitious interventions. Furthermore, our understanding of environmental change will likely evolve over time, as new data sets become available and the evidence base improves. I add that we take “significantly” to mean that only a marginal or fractional improvement of the whole natural
environment, or on the other hand dramatic improvement in only a few narrow areas of the environment, would not be acceptable.
My noble friend mentioned at the end of his speech that he felt he had asked a question, presumably on interim targets, that I had not addressed, in which case I apologise. I have gone through the notes and cannot see any gaps, so I am afraid I am going to have to rely on him. If he wants me to follow up on that, I am happy do so by telephone or in writing, but I might need a bit of guidance from him, so that I know that I am responding to the appropriate point that he made. I apologise for missing that question.
Moving on to Amendment 38 in the name of the noble Lord, Lord Vaux of Harrowden, government can only lower or revoke a target if satisfied either that meeting the existing target does not result in a significant benefit compared to not meeting it or meeting a lower target, or that the costs of meeting the existing target would be disproportionate to the benefits due to a change in circumstance. I also note the comments of the noble Baroness, Lady Fox, on that point. She made the perfectly valid point that, if we are to embark on something as profound as achieving net zero by 2050, it is important that people are aware of what the consequences and implications are. But that is not just about the costs of meeting net zero; it would need to include the opportunities as well. It is hard to imagine an economic transition of the sort and scale we are talking about without numerous opportunities arising at the same time. For example, we are already seeing that investment in new renewables globally greatly exceeds investment in fossil fuel infrastructure in terms of new capacity. That has been true year on year for quite a few years.
In truth, the market for low-carbon technologies greatly exceeds any of the predictions we have had in recent years. For example, solar prices have dropped by 80% since the banking crisis, which I do not think anyone predicted. We would also need to factor in the costs of not achieving net zero by 2050 into any such analysis, although this is much more complicated. If any of the predictions on climate change are accurate, the costs of not achieving net zero by 2050 at the latest are severe, to put it mildly. But I do not dispute the central argument that the noble Baroness makes, which is that we need to have that discussion and that it needs to be an honest one—warts and all.
To go back to the point made by the noble Lord, Lord Vaux, the long-term targets may be amended or revoked only by secondary legislation subject to affirmative procedure, which means that Parliament would, of course, have a vote. This opens up the process to parliamentary approval and creates a strong check on any future Government, while still providing for some flexibility for government to respond to changing circumstances and evidence.
On Amendments 41A and 41B in the name of the noble Lord, Lord Wigley, I reassure him that the Bill’s environmental targets clauses extend to England and Wales only, and this is set out in Clause 138. I will write to him to provide more assurances, and I will copy in the noble Baroness, Lady Jones of Whitchurch, and the noble and learned Lord, Lord Hope of Craighead,
both of whom also raised this issue. But, in addition, Clause 1(9) prevents the Secretary of State making any provision in any targets regulations, relating to water or otherwise, which would be within the legislative competence of the Senedd Cymru. We are committed to ongoing co-operation with the devolved Administrations on environmental matters, and the dialogue and exchange between my department and theirs has been thorough and will continue to be so.
The noble Lord, Lord Krebs, asked about funding for research, and his question was supported—or perhaps repeated—by the noble Baroness, Lady Boycott. I shall answer it in two ways. The first is to talk about the expert panel we are creating to advise on target setting. There are already a number of well-established advisory groups in place for things such as air quality target development—for instance, the Air Quality Expert Group and the Committee on the Medical Effects of Air Pollutants. But we have set up new groups of independent experts, where they did not previously exist, for priority policy areas we have outlined in the Bill to advise on developing evidence for the targets we are obliged to introduce.
These expert groups are providing guidance on evidence processes bespoke to individual targets, and their advice might include appropriate analytical methods, datasets, the evidence to be used, et cetera. They are advising Defra on how to produce the best available evidence, and the terms of reference for these groups are available on GOV.UK. In addition to that, as with any department embarking on important initiatives and projects, we will be bidding greedily at the next spending review to help secure the funds we will need to deliver these ambitious targets. We need to make the case and the Treasury will then respond. It is very hard to predict how that will go, but we will of course do our best.
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I now broaden this out to the point made by the noble Baroness, Lady Boycott, about funding, in relation to having missed things such as the Aichi targets. She is right: every country in the world missed the Aichi targets. Again, I am going to answer this in two ways, but more briefly this time. First, the central message of the CBD is that we should not have specific pots for biodiversity—not that we should not have investment, but our focus should be on having a biodiversity thread running through all decisions of government. We need to mainstream nature so that every decision we make—political, economic, investment-wise, et cetera—takes nature into account. That is clearly right. This was the central theme of the Dasgupta review, which was mentioned again in this debate by the noble Baroness, Lady Jones, and will no doubt be mentioned again many times.
Having said that, we are stepping up; we have doubled our international climate finance to £11.6 billion. As of next year, we are spending nearly a third of that, £3 billion, on nature-based solutions, which will have big implications for biodiversity. Here in the UK we do not quite know how much money will enter the system as a consequence of biodiversity net gain, but it will be a significant sum. We know that shifting from the common agriculture policy to the new environmental
land management system means billions of pounds entering a market which basically did not exist before. In addition, we have the Nature for Climate Fund of £640 million, which will help us to restore our peatlands and plant a lot of trees. So there is a lot of new money there for biodiversity, but the fundamental challenge is to mainstream nature so that we do not have to pay with one pot in order to correct mistakes made by the rest of the pot. I apologise; that was a much more long-winded answer than I was expecting to give.
I think I have reached the end of the amendments, so I will end by simply saying, as I have before, that I hope this reassures all noble Lords, and I ask them to withdraw or not press their amendments.