Commons Sense

House of Commons · Westminster Hall

Carbon Emission Charges — [Mr Laurence Robertson in the Chair]

01 November 2021 · 4 other contributors · 9,419 words

Opened by Catherine McKinnell Lab Newcastle upon Tyne North

Responding minister: Lucy Frazer

Climate

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

Read the full transcript on Parliament.uk

At a glance

Catherine McKinnell raised concerns about carbon emission charges — [mr laurence robertson in the chair] in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about lack of a single carbon price across sectors, resulting in only about a third of the economy being covered by climate policies.
  • Specific asks of government include clarifying the timeline for reviewing the implementation of a net-zero-consistent cap for the UK Emissions Trading Scheme.
  • Minister highlighted the UK's progress in reducing greenhouse gas emissions by 44% between 1990 and 2019 and committed to exploring expansion of the UK ETS to cover more sectors.

Key requests to Government

I ask the Government to clarify when a review will happen for the implementation of a net-zero-consistent cap for the UK Emissions Trading Scheme. Additionally, I urge the Government to set a clear path for policy and introduce support through our social welfare system to give households and businesses time to adjust.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Catherine McKinnell Lab Newcastle upon Tyne North

I am concerned about the lack of a single carbon price across almost all sectors, which currently results in only about a third of the economy being covered by climate policies. This gives the biggest polluters free allowances while consumers are left to pay. There is also uncertainty around the development and impact of low-carbon technologies, as well as how to design policies that have an equal effect on sectors and households. Moreover, emissions embedded in imports account for almost half of the UK's emissions, which could lead to carbon leakage if not addressed.

Other contributors (4)
  • Abena Oppong-Asare Lab Erith and Thamesmead

    Labour welcomes the Government's net zero strategy but highlights significant flaws, including a lack of credible plans in several areas and insufficient investment. The Treasury review argued against borrowing for the transition despite its benefits to future generations. Labour criticises the Chancellor's Budget for ignoring climate change and failing to invest adequately in the green economy. The MP also questions the UK's emissions trading scheme, asking about expansion into more sectors, international linkage, market stability, and further carbon pricing plans.

  • Alan Brown SNP Cowdenbeath

    Agrees with the need for low-carbon technologies but highlights concerns about protecting vulnerable groups and preventing carbon leakage. Criticizes insufficient grants for heat pump installations, advocating for fairer energy efficiency measures and transparent reinvestment of carbon tax revenues into green initiatives. Calls for a just transition commission to advise on fairness and policy transparency. Mr Brown inquired about measures included in the Budget aimed at helping the airline industry decarbonise.

  • Jerome Mayhew Con Broadland and Fakenham

    Mr Mayhew argued that the free market should play a significant role in addressing carbon emissions, suggesting that businesses need to be incentivised through a price for carbon. He highlighted that currently only about one-third of UK manufacturing is affected by carbon pricing through the Emissions Trading Scheme (ETS), while imports are not assessed for their carbon content. Mr Mayhew proposed a Carbon Border Adjustment Mechanism (CBAM) as a solution, which would assess products at the border for their carbon content and apply tariffs to create a level playing field. He cited evidence from the EU's draft CBAM Bill that automobile manufacturers in South Africa are already seeking to reduce carbon content due to potential tariffs. I want to make it absolutely clear that I am not a protectionist. If a CBAM is to be successful, it is important that we ban the P-word. The tariff has to be applied at exactly the same level as that used in the domestic economy. Mr Mayhew explained that the price reduction for heat pumps is not due to product cost but rather because of the mechanism of installation, suggesting that mass production by large suppliers will bring prices down.

  • Laurence Robertson Con Hendy

    Encouraged Members to wear masks and follow covid lateral flow testing guidance.

Government Response

Lucy Frazer

Recognised the significance of climate change debates and highlighted the UK's progress in reducing greenhouse gas emissions by 44% between 1990 and 2019. Discussed the carbon price support and the UK Emissions Trading Scheme, committing to explore expanding the UK ETS to cover more sectors. The Minister also addressed concerns about heat pump costs, aviation duty, and fossil fuel subsidies, emphasizing the Government's commitment to tackling climate change both domestically and internationally.

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