73: Clause 1, page 2, line 35, at end insert “, and to reduce and sequester climate change emissions.”
Member’s explanatory statement
This amendment would ensure that financial help can be given to help reduce climate change emissions.
My Lords, Amendment 73 stands in my name and that of the noble Baroness, Lady Worthington. This is a simple amendment. About 25% of greenhouse gases come from agriculture. That percentage will increase as more green energy production comes online. What we can grow, and what we will be able to eat, will be determined by climate change.
We are watching the rapidly changing climate in the Arctic with some horror. That is of huge importance to us, as four of the six main systems that determine this country’s weather are driven by conditions in the Arctic. One example, and a pretty sobering one, is that the “beast from the east” that we experienced in March 2018 cost the UK about half the annual budget paid to farmers.
The Paris Agreement states that countries should be
“holding the increase in the global average temperature to well below 2°C … and pursuing efforts to limit temperature increase to 1.5°C”.
We are likely to break that threshold of 1.5 degrees before the next general election.
All of the pathways in the IPCC’s special report say that there has to be the use of negative emissions; that is, the removal of CO2 from the atmosphere. This is not an alternative to reducing emissions but an essential extra if the planet as we know it today is to survive. Our land is not absorbing as much CO2 as it could, and the priority should therefore be to restore nature to allow it to sequester increased amounts of CO2. That is what my amendment seeks to do.
I commend the NFU on the progress that it has made on this and on its template aim of net zero by 2040. We must give every encouragement to farmers to help them meet the reductions that will be necessary, and I believe that the Bill could do more on that. I had thought that my amendment would sit well at the end of Clause 1(1)(j) relating to soil, but I prefer it where it is, so that any financial payment would be conditional on meeting the reduction in sequestration condition. That is no more than what the Climate Change Committee asked for in its 2019 report, when it recommended:
My Lords, it is a pleasure to follow the noble Earl, Lord Caithness, and an even greater pleasure to hear a Conservative Peer—a hereditary one at that—speaking so eloquently about climate change, because this is a problem that the UK is not facing up to in a coherent way, so the more that we can do with this Bill, the better. It is not really a surprise that the concept of zero carbon is not in the Bill, because most of it was written before we signed up to that. It was drafted three years ago, and I regret that more redrafting was not done before it came before your Lordships’ House. The Government have had over a year since they put a commitment to net-zero carbon emissions by 2050 into law. I will be very forgiving with the Minister and suggest that they have just not got around to updating this legislation yet.
The amendments in the group, including my Amendment 274, seek to bring the Bill up to date with our net-zero carbon commitment and ensure that agriculture and land management play their proper role in achieving net zero. Agriculture plays a huge role in our carbon footprint and it will grow proportionally as other sources of emissions are reduced. It is therefore essential that the Government should set out a clear trajectory for agricultural emissions and a credible strategy to achieve that. Of course, we have to think about other parts of the economy as well. If we insist on carrying on flying as we did in the past pre coronavirus, other bits of the economy will have to do more to bring our emissions down to zero carbon—so there is that thought as well.
There are some differences between Amendments 272 and 274. Amendment 274 would require net-zero agriculture emissions by 2050, whereas Amendment 272 does not contain this net-zero requirement. Instead, it would require the Secretary of State to have “due regard” to Section 1 of the Climate Change Act. This would mean that agriculture would make some contribution towards the wider goal of net-zero emissions across the economy, but I believe that net zero is possible, and indeed achievable and desirable, for agriculture, and I urge noble Lords to aim to include the amendment in the Bill on Report.
My Lords, we spent the first three days of this debate discussing the baubles that were to adorn the Christmas tree under Clause 1 on ELMS. We are now somewhat getting to the meat of the matter and considering, in my view, the Christmas tree itself. But I am concerned that if this Christmas tree Bill is allowed to pass into law in the manner in which it is currently drafted, it may well wither and die before any of those ELMS baubles can be appreciated. The reason for that—I raised this issue at Second Reading—is the transition gap, or perhaps more pertinently, the transition chasm across which many farms may not make it in the years between 2021 and 2028, when ELMS are due to come into effect.
The noble Baroness, Lady Young, spoke about the “cataclysmic changes” that will occur to farming as a result of this legislation, and I do not think that she is overstating the position. As a result of this legislation, we will see over the coming years a dramatic decrease in the basic payments that farmers receive. At some point, those payments will be replaced by a series of payments under ELMS, but, as we are well aware after three days of interesting but very varied and somewhat random debate, the details of the scheme are years away from completion, and farmers simply do not know what will replace the essential income that they currently receive. My real concern is that this will have a dramatic effect on the environmental impact and environmental outcomes of farming. This is based on personal experience as well as discussions with the NFU and others, and it stems from a number of different angles.
For a number of farmers, the loss of the BPS will be fatal to their businesses, and those businesses will go out of business. The result will be that land will either fall fallow and therefore deteriorate—the environmental impact of that is considerably negative—or it will be sold to a more commercial neighbouring farmer who will be able to increase productivity and thus increase environmental degradation. Other considerations are that those farmers who are able to survive the transition chasm will do so only by tightening their belts. From a personal perspective, I have been advised not to invest heavily in capital projects at this time; why invest in something now for which you might well be paid by ELMS later? The conversations that I have had with agricultural and environmental advisers along the same lines conclude exactly the same thing: they are advising all their clients to hold off making any major productivity and environmental investments at this time because we simply do not know what is going to happen and we may be paid for these things at some point in the future. The net result of that will be a catastrophic drop-off in environmental gains.
My Lords, I have added my name to Amendment 274, although I am thoroughly behind the other amendments in this group. I will not go down the line of Heathrow; it always gets me excited because I am firmly opposed to any expansion there.
There is really nothing further that I would say; the eloquent speech of my noble friend Lord Caithness really said it all. I also pay tribute to the NFU for its work on trying to reduce carbon emissions. I am very keen for us to get on with this discussion and debate, so the only thing that I will say is that one thing that is sometimes forgotten when we talk about sequestering carbon emissions is wetlands. That is something that we can look at very seriously in the Bill. If the noble Earl, Lord Devon, is correct and there will be problems, wetlands may be the answer. The Bill may supply the answer to how that is done.
We want to get on with the Bill, though, because while we have been congratulating and paying tribute to farmers and land managers all along, if we are not careful and do not get this legislation through, we will not be able to pay them.
My Lords, it is my pleasure to speak to Amendment 73 in the name of the noble Earl, Lord Caithness, and Amendment 274. I also strongly support the other amendments in this group.
Like many, I have been listening to the many varied and fascinating debates that have surrounded the Bill in Committee. I am holding myself back and contributing only to this group of amendments. This is partly because, while this is not my area of expertise, I look at this through the lens of the need for us to take a whole-economy approach to climate change. This is therefore the group on which I thought I had the most relevant comments to make. I hope noble Lords will forgive me if I speak for a little longer than others have on this group, just to articulate why it is so fundamental to the Bill’s success that we address climate change front and centre in the Bill.
The Agriculture Bill is essentially a framework piece of legislation, but the collection of measures in it lack an overriding purpose and an overriding legislative goal for which we can hold the Government to account. The function of moving from the current system of the common agricultural policy to a new set of parameters and rules that the UK can set for itself is welcome. We all know that the current system of subsidies for agriculture has had many impacts, many of them environmental but many of them social, and this has affected how we interact with our land. We now have an opportunity to set a new path, and the Government should be commended for the policy statements they have made and the signals they have given about this new change in direction. That is very timely and will be very significant for generations to come.
With that, I ask the Minister if the Government could seriously consider adding a clause to the Bill that would make it perfectly clear that it is part of an endeavour to realign our agricultural and food sector with that goal of being climate-compatible and net zero by 2050. The noble Earl, Lord Caithness, has eloquently made the point that this sector, more than any other, will feel the impact of a disturbed climate—a climate that can no longer be predicted, where extreme weather events impact our ability to grow food and sustain our land in the way that we have been accustomed to. It is imperative that we take action in the long term to secure a stable climate.
Lord Judd (Lab) [V]
My Lords, this is a very important amendment. It is a rather historic occasion, because I cannot recall any other occasion on which I have associated myself with the noble Earl, Lord Caithness, politically, but I completely associate myself with him on this occasion. For me it is quite simple: if we will the ends, we have to will the means. It is clear that agriculture not only contributes to the problem but could be doing far more to help solve the problem. We all have to think, wherever we are in society, how we can change our ways in order to play a practical part in this urgent priority for the survival of the human race. I therefore commend the amendment and am very glad to see the other amendments in the group addressing ways in which agriculture can contribute towards the objective—not just how it can restrain itself, but how it can contribute. This is a practical priority, and I hope the Government take it very seriously.
My Lords, all Members have emphasised just how significant and timely this group of amendments is. I particularly support Amendments 272 and 274. The noble Earl, Lord Caithness, referred to last night’s shock report from the Met Office-led investigation into the effect of manmade carbon emissions in the Arctic and the effect, therefore, on UK weather. That should be a very loud alarm call. I think we are all very conscious of the problems that have arisen from the sequential scrutiny of this Bill and the forthcoming Environment Bill. Very clever co-ordination is obviously essential. In agricultural circles I think we would refer to it as cross-compliance.
I and my Liberal Democrat colleagues believe that the thrust of these two amendments is essential. Indeed, it is difficult at this stage to decide between them: we may want to find ways in which they could be brought together at Report, depending on the Minister’s response. We are very proud of the role that our colleague, Ed Davey, played as the Cabinet member who prepared the UK for the Paris climate change conference in 2015. For that reason, to some extent, I have a slight preference for Amendments 272, since it seems to be firmly rooted in the Paris agreement and the developments, policy and commitments in the process since then. The link to the Climate Change Act 2008 in both amendments is, of course, entirely right in UK legislative terms. However, we respect and wish to encourage recognition of the way in which British Ministers have taken a leading role in the EU, in a real partnership, to maintain momentum since Paris in 2015. That is specifically acknowledged in Amendment 272 at subsection (1)(b).
The detailed rules, procedures and guidelines adopted at the follow-up UN conference in December 2018 are critical in this context and, of course, they are binding on the UK, as any other treaty obligation. This country will be obliged to report on success in meeting emission reduction targets in agriculture in a transparent, complete, comparable and consistent format. Should that not be spelled out in the Bill? It would be very helpful to do that as we look forward to Glasgow next year.
3:15 pm
The balance in terms of emissions is hugely complex. As has been acknowledged and mentioned already, agriculture and forestry land naturally hold large stocks of carbon, preventing its escape into the atmosphere. Yet, on the other hand, activities in all sectors of agriculture can contribute disproportionately to emissions. Both sides of the equation are, therefore, very significant in terms of the Bill. On the one hand, emissions can take place when plants die or decay; on the other, the draining of peatland, the felling of woodland or the ploughing of grassland can remove vital carbon sinks. I am told that the release of just 0.1% of the carbon currently stored in European soils, including those in this country, would equal the annual emissions from as many as 100 million vehicles. This is very significant, so it is an essential objective of the Bill to target financial assistance for short, medium and long-term environmental benefits, not least in terms of reducing carbon emissions.
20 of 274 shown
“Financial payments in the UK Agriculture Bill should be linked to actions to reduce and sequester emissions, to take effect from 2022.”
I beg to move.
I turn now to the Minister. I have a few things to which I hope that he or she—I cannot see who it is—can give a response. Does the Minister think that net-zero carbon emissions in agriculture is actually achievable by 2050, and what about the important role that setting this out in law will play at stimulating innovation and investment in the right things? Will the Minister undertake to work with noble Lords from across the House to update the Bill by Report stage to reflect the big change in net-zero legislation that occurred last year after the Bill was first drafted? I look forward to the Minister’s response.
My amendment is a very simple one that I recommend to noble Lords as a somewhat shorter amendment than Amendments 272 and 274, although I believe that it is targeted at the same thing. It asks that the Secretary of State should confirm that the implementation of this legislation will not negatively impact our progress towards net zero by 2050. The amendment is worded in that way for a specific reason. It is not that it will stop us achieving net zero by 2050; it is that, during the time between 2021 and 2028, our progress towards those goals will not be negatively impacted; that is, we will not go backwards.
The next five, six or seven years are absolutely crucial if we are to have any hope of reaching the monumental target of net zero, but introducing a system that simply forces us to take backward steps is not, I believe, appropriate. My amendment was inspired by the decision of R v Secretary of State for Transport with respect to the Heathrow runway. It seems that Parliament should not be passing legislation that is contrary to those net-zero targets and we should not be passing legislation until we have satisfied ourselves that this will not have a negative environmental impact.
The other interesting fact about agriculture and food is that both are a source of climate change emissions and greenhouse gases but also a significant sink—a way of absorbing more of the excess greenhouse gases back into our soils, our forestry and our land. So the sector is in a unique position, both to reduce its own impact and to increase its ability to be a central part of the solution for getting to net zero. For those reasons, it is imperative that we make that clear in the objectives of the Bill. Clause 1 says that future payments will be tied to environmental sustainability, but that is not precise or clear enough to give the Bill the direction of travel that it really needs or to give clarity about the purpose of the Bill and this change of direction.
At the moment, when we think about tackling climate change, one of the most politically difficult issues is that of who will pay for taking actions that at the moment may cost more but that we know will be beneficial for future generations. With agriculture, we are in a unique position in that we already see large sums of public money going into the sector. There is no need to discuss how we introduce a carbon price and no need to talk about taxation. We have a system that already sees a large amount of money from taxpayers flowing into the sector. It is fully understood that that can continue through a transition period, but we will be attaching a requirement that those payments deliver a public good. That public good, as defined through the lens of climate change, would see large amounts of money being given to farmers who found innovative ways and solutions to reduce greenhouse gas emissions and enhance our ability to store carbon in our land.
This is a huge and exciting opportunity for the Government. We have set out for this net-zero target, we have legislated for it and we have led the world in doing so, but now we really need to demonstrate that we understand what that means and we know what policies we will need to get us there. The more cost-effective those policies are, the more we can point to our success and see other countries follow that path. We have an opportunity with this redirection of public money to demonstrate that it is eminently possible and hugely exciting to achieve net zero in our agriculture, food and forestry sectors at an accelerated pace.
If the Government are able to craft their own version of this group of amendments, clearly setting out that it is a core aim and we will see net-zero provided through this sector, it will be a fantastic opportunity to provide clarity for the sector. As we approach the next conference of parties of the UNFCCC in Glasgow next year, which we are hosting, we will also be able to point to our own domestic legislation to show that when we talk about the need to drastically reduce emissions and stabilise the climate, we are not just talking about it but doing it. We are putting in place the sectoral policies and sectoral laws that will drive investment.
This will be an opportunity. There is no doubt in my mind that, as we transition from the current subsidy system to a new system, it will be greatly beneficial to have a carbon target for the sector because it will draw in investment from other parts of the economy. If we wish to reduce our taxpayers’ subsidy into the sector, what better way than to do so through private sector investment paying for the public good of carbon reduction, carbon removal and carbon abatement in this sector? It will relieve pressure on the public purse and enable money to flow into the sector from those sectors finding it harder to abate. That is a wonderful opportunity, and with a bit of thought we can make that explicit in the Bill.
To summarise, this group of amendments deserves careful attention from the Government. I look forward to hearing the Minister’s reply, and we hope to see the Government take this on and bring something forward. This is not just about climate change; it is an opportunity to create clarity and drive inward investment and private money into the sector. It is an opportunity for the UK to develop a set of framework legislation that we can be duly proud of and which we can announce and discuss in the global context in Glasgow next year.
I, too, pay tribute to the NFU and all the farmers who are potentially running ahead of many in government and many commentators in acknowledging that this can be done and that it is an exciting opportunity. They believe that we can get to net zero in this sector earlier than 2050. We should be giving them legislation that makes it completely clear that we as a society, as a whole, are backing them in that and want to create the right framework to enable them to do it.
I will not detain the House any longer, but I hope I have conveyed my enthusiasm for this group of amendments. It would be fantastic to see a version of any of the four of them in the Bill in its next stage. I very much look forward to the reply from the Front Bench.