Paris Climate Change Conference — House of Commons, 2015-11-19
Topic: Environment
Caroline Lucas (Green Party, Left): I start by congratulating the hon. Member for Bishop Auckland (Helen Goodman) on taking a lead in securing this important debate. It could not be more timely, not only because of the Paris climate talks that are due to start in 10 days’ time, but because just last week the World Meteorological Organisation warned that global average temperatures are set to rise by 1°C above pre-industrial levels for the first time. As the WMO’s secretary general, Michel Jarraud, put it, "We are moving into uncharted territory at a frightening speed...The laws of physics are non- negotiable." While that is the crucial context for the Paris climate talks, the challenge of climate change is about much more than degrees Celsius and parts per million. That is why the Pope’s encyclical matters. It forces us to confront the reality that our response to climate change goes to the heart of who we are, and the values that guide our decisions collectively and as individuals Similarly, I welcome the leadership that other religious figures and organisations have played. I referenced the Islamic leaders’ initiative earlier, and I also want to pay tribute to the many innovative initiatives in my own constituency, especially that of the Brighthelm church, the first church in the UK to divest by pulling its funds and investments out of fossil fuels The case for the Government to adopt a scientifically literate and cross-governmental approach to climate change is coming from many directions—faith groups, business, civil society and, most recently, from the Governor of the Bank of England. It is increasingly clear that there is a strong economic reason to accelerate the transition to a cleaner, greener energy future. Back in September, Mark Carney issued a blunt warning to the fossil fuel industry that investors face what he called "potentially huge" losses from climate change action that could make vast reserves of oil, coal and gas "literally unburnable". That is because, to remain under the 2° threshold, we as a global population must burn no more than 886 billion tonnes of carbon between the years 2000 and 2049, according to the International Energy Agency The global oil and gas companies have declared the existence of 2.8 trillion tonnes of carbon reserves, and their shares are valued as though those reserves were burnable, but the Carbon Tracker Initiative has warned investors that "they need to understand that 60-80% of coal, oil and gas reserves of listed firms are unburnable" That is because, if we burn them, the atmosphere will warm to a catastrophic degree. The threat of ending up with assets stranded by tougher rules to curb climate change could affect the nearly 20% of FTSE 100 companies in the natural resources and extraction industries. As Mark Carney has said: "Once climate change becomes a defining issue for financial stability, it may already be too late" Within the investor community, the early adopters have already begun a substantial movement to divest from fossil fuels, a movement representing $2.6 trillion in assets under management. The world’s largest institutional investors, including the Norwegian Sovereign Wealth and Rockefeller Brother funds, have all expressed their concern about carbon-related investment risk, and they are already adjusting their portfolios accordingly by moving out of fossil fuel holdings I believe that Parliament should be taking a lead on this too. That is why I am engaged in an ongoing and, frankly, very lengthy correspondence with our own parliamentary pension fund managers. I hope that the Minister will be able to tell us today that she will use her good offices to make them look at this more seriously and with more urgency because, to be frank, I have seen nothing to suggest that they are treating this with any urgency at all Divestment also models more broadly the kind of commitments we should expect to be taken by Governments, yet on the challenge of redirecting finance—both public subsidies and private capital—away from fossil fuels and into low carbon energy, our own Government’s policy too often involves doing exactly the opposite. We have seen the ending of subsidies for onshore wind, the slashing of solar subsidies, the awarding of tax breaks for fracking and for offshore oil and gas drilling, the application of the climate change levy to renewables, the ditching of zero carbon homes, the removal of community energy tax breaks and the funnelling of export credits into hydrocarbon projects abroad—the list goes on and on—yet not a penny is being put into the new public infrastructure fund for energy efficiency. Then yesterday, the go-ahead was given for a whole new dash for gas The Secretary of State has been treating us to a masterclass in cognitive dissonance. She continually speaks of competiveness being at the heart of our energy system, yet her Government have committed to subsidising outrageously expensive nuclear power stations while slashing support for solar and wind, which are more popular, cheaper and faster to deploy.