§ 2.53 p.m.
§ Lord Carverasked Her Majesty's Government:
What further measures they propose to ensure that the Rio target of reducing carbon dioxide emissions to their 1990 level by the year 2000 is met.
§ The Minister of State, Department of the Environment (Viscount Ullswater)My Lords, the Government are committed to fulfilling their obligations under the Climate Change Convention which was signed at Rio. We are currently considering whether further measures are needed in the light of recent developments, 1330 and will also be taking account of the revised energy projections which the Department of Trade and Industry is working on.
§ Lord CarverMy Lords, I thank the Minister for that Answer. But does he agree that, as VAT on domestic fuel is not going up to 17.5 per cent., as the report on transport and the environment by the Royal Commission on pollution showed that the proposed periodic increases in the price of petrol and diesel would not bring about the expected reduction in CO2 emissions and as the economy is likely to grow at more than 3 per cent., the assumptions behind the Government's 1993 climate change paper have been undermined? Is it not therefore essential that they at least give Nuclear Electric the go-ahead to build Sizewell C? Like Sizewell B, which opens today, it will produce a great deal of power but with no greenhouse gas emissions.
§ Viscount UllswaterMy Lords, we are reviewing the impact of the measures in the climate change programme, including the VAT position, as part of the monitoring process. We shall take whatever steps are necessary to ensure that we remain on course. Our monitoring shows that we are currently on course to meet our commitments under the Climate Change Convention. Obviously, carbon dioxide emissions from the electricity sector have fallen by about 20 per cent. since 1990. That is due in part to increased output from gas-fired and nuclear power stations.
§ Lord EnnalsMy Lords, there appears to be a degree of uncertainty in the Minister's Answer. Will he give an absolute assurance that the commitment entered into at Rio will be kept and, I hope, improved upon?
§ Viscount UllswaterMy Lords, the Government are fully committed to fulfilling their obligations under the Climate Change Convention. We played a leading role in the international negotiations on the convention and remain committed to active participation in the process. The UK climate change programme, which was published in January last year, sets out in full the measures aimed at returning CO2 emissions to 1990 levels by the year 2000.
Lord Campbell of CroyMy Lords, does my noble friend agree that, although opinions differ as to the extent and effects of climate change and global warming, it is in any case prudent to restrict emissions of carbon dioxide in order to avoid upsetting the balance in the atmosphere, especially when the natural cycle is being affected by the disappearance of forests and other green areas of the world?
§ Viscount UllswaterMy Lords, yes. My noble friend has raised an issue which needs to be taken forward on a global scale. From an environmental point of view, the Government, and I am sure the whole House, would regret the disappearance of many forest areas around the world.
§ Lord EzraMy Lords, the Minister's reply indicated that the Government are contemplating further measures to achieve their emissions objective. Will he indicate 1331 what those measures might comprehend? Will they comprehend fiscal stimuli to improve efficiency in the home and industry?
§ Viscount UllswaterMy Lords, the budget for the home energy efficiency scheme, for instance, has been increased to more than £100 million in 1995–96. The scheme provides advice and grants as regards insulation and draft-proofing for low income households. The energy efficiency best practice programme aims to generate additional energy savings of £800 million. By 1994 it achieved savings of some £300 million per year, or a 2 million-tonne reduction in carbon dioxide emissions. I believe that the stimulus that those schemes have produced makes a great contribution towards the 10 million tonnes by which we have agreed to reduce our carbon dioxide emissions.
§ Lord Jenkins of PutneyMy Lords, is the Minister aware that reducing carbon dioxide emissions by building nuclear reactors is jumping out of the frying pan and into the fire? Much more attractive alternatives are open to the Government.
§ Viscount UllswaterMy Lords, the noble Lord expresses his own view. There are two sides to the issue, but there is no doubt that nuclear power has a part to play in the reduction of CO2 emissions.
§ Lord Clifford of ChudleighMy Lords, does the Minister agree that as regards nuclear energy, if Sizewell C and the proposed Hinkley C power station were built we could reduce the amount of nuclear powered fuel that we are importing from France and at the same time create an enormous amount of employment, certainly in the south west, which is in need of a great deal of employment?
§ Viscount UllswaterMy Lords, the noble Lord must be patient. The House will know that the Government are undertaking a nuclear review. They have not completed or published their conclusions and it would be premature for me to comment on the matter.
§ Lord Williams of ElvelMy Lords, does the Minister recognise that the Government's record on energy efficiency and the proper use of electricity is lamentable? Do the Government recognised that at every stage of the Electricity Act in your Lordships' House they resisted putting a duty on the distributors of electricity to ensure and promote energy efficiency? If the Government are so keen on energy efficiency and the proper use of electricity, why do they not restore that duty?
§ Viscount UllswaterMy Lords, the Government have established the Energy Savings Trust which is being funded by the electricity generating companies. That will promote energy saving in the private sector and will include options for less energy consumption.
§ Lord Stoddart of SwindonMy Lords, does the noble Viscount not agree that there has been a very sharp reduction in CO2 produced by power stations? The increase in such emissions does not emanate from power stations but from motor vehicles. Will the Government 1332 give that aspect far more attention than they are giving to the prospect of building additional nuclear power stations?
§ Viscount UllswaterMy Lords, in the climate change programme which was put forward by the Government, we committed ourselves to a longer term strategy of increasing transport fuel duties by at least 5 per cent. per year on average above the rate of inflation. At the last Budget, duties were raised by 8.6 per cent. above the rate of inflation. That indicates the seriousness with which the Government regard the part that transport plays in relation to CO2 emissions.