Commons Sense

House of Commons · Ministers' Questions

Net Zero Carbon Economy

Tuesday 1 December 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Barry Sheerman inquired about steps to ensure fiscal policy incentivises environmentally positive behaviour, to which the Chancellor responded with a 12 billion investment commitment for the transition to net zero.
  • Matthew Pennycook questioned the lack of clarity on replacing the EU emissions trading system, noting that companies are unsure about future carbon pricing mechanisms.
  • Barry Sheerman challenged the government to produce concrete policies rather than rhetoric, referencing the Agriculture Act's principle of public money for public good.

Topics (select to filter)

Questions & Answers

Q1 Barry Sheerman Lab
Economy Climate
Context

The question addresses the Chancellor's fiscal policies and their impact on incentivising environmentally positive actions.

Question

What steps he is taking to ensure that his fiscal policy incentivises environmentally positive behaviour?

Answer from Kemi Badenoch

The Chancellor's announcement at the spending review will help us meet our net zero 2050 target by providing the right incentives for individuals and businesses. The spending review commits £12 billion of public investment, kick-starting our transition to net zero and boosting the UK's global leadership on green infrastructure and technologies ahead of COP26 next year. It also included funding that will encourage protection of the natural environment, including for planting trees, restoring peatland, creating natural habitats and investing in national parks.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Matthew Pennycook Lab Greenwich and Woolwich
Economy Taxation Climate
Context

The question concerns the upcoming transition from the EU emissions trading system, questioning the Government's readiness for this change.

Question

A robust carbon price is essential to achieving a net zero carbon economy, yet despite the transition period ending in just 30 days' time, companies still have no precise idea what will replace the EU emissions trading system, which the UK will cease to participate in at that point. The House has already passed the legislation required to establish a stand-alone UK ETS, but there is no sign of the order necessary to fully implement a UK-wide carbon tax. With just 12 sitting days remaining, can the Minister confirm that the Government have determined that a stand-alone UK ETS is the fall-back option for 1 January and that the Treasury has abandoned a carbon emissions tax?

Answer from Kemi Badenoch

The hon. Gentleman will know that this has been the subject of negotiations, which are still ongoing. We legislated for a UK-linked ETS as well as a carbon emissions tax, and we will be announcing shortly which of those options we will be taking. We know that a UK-linked ETS is the preferred option at the moment, and that is the one that we are currently hoping we will be able to negotiate for during this period.

Partly answered

Not addressed: Specific confirmation on abandoning carbon emissions tax

How: Negotiations Ongoing

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Barry Sheerman Lab
Economy Climate
Context

The question challenges the Government to move from rhetoric to concrete policy actions regarding environmental goals.

Question

Everyone in the House knows that the Chancellor of Exchequer does not like green waffle, so may I challenge the Front-Bench team to stop the rhetoric and start producing policies? We already have an Agriculture Act that says we should have public money for public good; what about public money for environmental good? Let us have the taxation—the systems—that they have already introduced in the Nordic countries, but for goodness' sake let us get on with it.

Answer from Kemi Badenoch

The hon. Gentleman asks an interesting question and I believe we are getting on with it. The Prime Minister's 10-point plan, announced just two weeks ago, outlines quite a lot of that. If the hon. Gentleman is talking about the costs, he should look at the announcement we made about the net zero interim review, which will be coming out before the end of the year. That will look at the options for a balance of contributions between households, businesses and the taxpayer, and how to maximise economic growth opportunities from the transition to net zero.

Partly answered

Not addressed: Specific policies like those in Nordic countries

How: 10-Point Plan, Net Zero Interim Review

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)