Budget Resolutions and Economic Situation
17th March 2008
Nick Hurd challenges the use of taxpayers' money to buy carbon credits in overseas markets in order to fulfil ambitious carbon targets.
Mr. Nick Hurd (Ruislip-Northwood) (Con): Before the Secretary of State gets to the meat of the three principles, may I point out that both he and the Chancellor in his Budget have been entirely silent about using taxpayers’ money to buy carbon credits in overseas markets to allow us to fulfil our ambitious carbon targets? The National Audit Office estimates that the cost to British taxpayers will be about £5 billion by 2020; what is the Government’s estimate?
Hilary Benn: It will depend on the decision that the Government take about the use of international credits. As the hon. Gentleman will be aware, the Bill provides for the committee on climate change to give us advice on the use of international credits. The Government will have to look at that advice in due course, when we receive it. In another place, there was a lively debate about the use of international credits, and we will no doubt have such a debate in the House when the Bill comes before us. As I am sure the hon. Gentleman accepts, it is entirely legitimate to make progress partly by using international credits because in the end, from the world’s point of view, it does not matter where emissions are saved, as long as they are saved. That is why the Government’s view is that carbon trading and the purchase of credit have an important role to play.
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Mr. Hurd: I attach the same importance to clean coal technology as the right hon. Gentleman, but will he clarify whether the Government intend to attach any carbon capture and storage conditions at all to the proposed coal-fired power station at Kingsnorth, and if not, why not?
Hilary Benn: My right hon. Friend the Secretary of State for Business, Enterprise and Regulatory Reform will make that decision, which he will announce in due course.
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Mr. Hurd: Do the Liberal Democrats therefore support a cap on the purchase of overseas credits, and if so what level would they put that at?
Steve Webb: I do support such a cap, and before the Bill reaches this House, I shall read the debates in the other place, in which their lordships agreed a figure of 30 per cent. I shall certainly oppose Government attempts to reverse that, but I have an open mind on whether it should be lower. The key point is that we need to lock into a low-carbon structural economy, and buying our way out simply defers that.
