Environment Bill — House of Lords, 2021-11-09
Topic: Environment
Zac Goldsmith (Conservative, Centre-right): My Lords, this is a momentous month for the environment. We are hosting the world at COP 26, the world’s best chance to reach agreement on the action needed to avert catastrophic climate change and support those already experiencing its effects. Huge global progress has already been made in this forum. Over 130 countries representing more than 90% of the world’s forests have committed to halt and reverse deforestation by 2030. We have secured an unprecedented $20 billion to protect the world’s forests. Financial institutions with assets worth nearly $9 trillion have committed to align with nature. We secured the commitment from the big multilateral development banks, including the World Bank, that they too will align their portfolios not only with Paris goals but with nature as well. And, crucially, we secured a commitment from the 12 biggest buyers of agricultural commodities—including China Oil and Foodstuffs Corporation—that their buying policies will be aligned with 1.5 degrees and our overall deforestation goals. Each of these commitments is new and unprecedented; combined, they are mutually reinforcing, and this represents a turning point in our relationship with the world’s forests. Our job is now to inject real accountability into the process and to ensure that these promises are kept in full. This landmark Environment Bill, which we hope is now so close to its conclusion, will be an integral part of that action Noble Lords will have seen that this Government have moved significantly on a number of the issues which your Lordships’ House insisted on at Third Reading. I will begin by discussing Amendments 31C and 75C, tabled by the noble Lord, Lord Krebs, and the noble Baroness, Lady Ritchie of Downpatrick, and Amendments 31A, 31B, 75A and 75B which have been re-tabled by my honourable friend Minister Pow in the other place I thank the noble Lord, Lord Krebs, the noble Baronesses, Lady Parminter, Lady Jones of Whitchurch and Lady Ritchie of Downpatrick, and my noble and learned friend Lord Mackay of Clashfern, for their work in this important area. I thank the noble Lord, Lord Krebs, in particular for his conversations with me and with the Secretary of State on the power in the Bill to offer guidance to the OEP. As a direct result of those conversations, there are a number of points that I would like to put on the record today, in the knowledge that ministerial statements in Hansard could be drawn on by the courts as a legitimate aid to statutory interpretation in the future The OEP is and must be an independent body capable of holding public authorities to account on their environmental responsibilities, including through the use of their enforcement functions. That is why the Government have given the OEP a remit and powers of unprecedented breadth in this Bill. In order for the OEP to work effectively, it must act strategically and take action only when there is an environmental and public interest in doing so. On this point, everyone is agreed As the Secretary of State is ultimately accountable for the OEP’s performance and use of public funds, the Government consider that this accountability power in Clause 24 is necessary to ensure that the body continues to use public resources effectively to achieve the greatest public good. However, I must be clear that the content of guidance is limited to the areas of the OEP’s enforcement policy listed in Clause 22(6). It cannot be used to direct the OEP as to the content of any report they might produce or any advice to the Government. Indeed, it cannot be used as a power of direction at all. It would also be inappropriate for the Secretary of State to issue guidance on specific matters relating to the enforcement of environmental law against the Secretary of State for Defra, given that there would be a conflict of interest I do not want to be disingenuous: the OEP would be expected to have regard to any guidance issued, but it retains the ability and discretion to make its own decisions and is not bound to act in accordance with the guidance where it has clear reasons not to do so. I know that the noble Lord, Lord Krebs, and others have previously raised concerns that the Secretary of State might be able to use guidance to preclude the OEP investigating a broad category of individual cases or subject areas, such as nuclear power stations. I must say unequivocally that it is our view that the power could not lawfully be used in this way Any guidance issued must be consistent with the duty in paragraph 17 of Schedule 1 for the Secretary of State to have regard to the need to protect the independence of the OEP. Any guidance that diverts OEP scrutiny away from entire policy areas, outside existing statutory steers on prioritisation, would not be in keeping with that duty. This is not a power that could be used simply to divert the OEP away from investigating issues that could be in some way inconvenient to government. The provision for guidance on how the OEP intends to exercise its functions means that the guidance will in its nature be on the OEP’s approach to these issues, rather than defining specific areas to prioritise or deprioritise The OEP will operate with a very high degree of independence, especially when it comes to making individual enforcement decisions. In exercising its discretion in individual cases, the OEP would need to have regard to all relevant factors, but ultimately must take all its decisions objectively, impartially and independently of government. Furthermore, the Environment Bill already provides that the OEP should focus on cases that have national implications. Guidance could not be issued that goes against these existing provisions and could instead add further detail. However, it will remain up to the OEP, within the framework provided by the Bill and any guidance, to determine whether cases that have a discrete local impact also have national implications, or for some other reason have sufficiently broad or widespread impact to be considered serious, or to be prioritised, for the purposes of its enforcement functions It is important to note that the Secretary of State is also able to offer guidance on how the OEP should respect the integrity of other bodies and existing statutory regimes. With such a huge and broad remit, the OEP will be able to scrutinise all public authorities, including many expert scientific bodies. This ability will be important for the OEP to be able to take a broad view and identify systemic issues Although I am sure the OEP will be extremely effective, it will be a relatively small body with a broad remit. The decisions of organisations such as Cefas, for example, which employs hundreds of world-leading marine scientists, will be based on deep expertise and often highly technical scientific data. The OEP will need to be mindful of this in its own decision-making when scrutinising these bodies. It is important to get this balance right to maintain confidence and integrity within existing regimes, and guidance could help to address this We believe that this power is important to ensure accountability, so that the OEP can contribute to delivering environmental improvements in the way I think we all agree it should: by acting strategically, not just in the short term, but long into the future. I can also confirm that this Government will not issue guidance to the OEP before its initial set-up or before it has had the chance to develop its own enforcement policy I recognise the points that noble Lords have raised, which is why the Government previously reintroduced a provision for Parliament and the Northern Ireland Assembly to scrutinise any draft guidance before it is issued. I hope my assurances regarding what this power could and could not be used for, as well as the additional parliamentary scrutiny we have provided for, serve to reassure noble Lords about this provision Turning to Amendments 33B and 33C, I thank all noble Lords for their contributions on this topic, but in particular the noble Lord, Lord Anderson of Ipswich, for his detailed and continuously constructive conversations with me and my officials. On environmental review, the key area of debate has been the remedies available in the event that a breach of environmental law is confirmed by the court. At the heart of this issue has always been the fact that, through environmental review, the OEP will have the ability to bring cases to court outside standard judicial review time limits, potentially long after the decisions in question have been taken. For this reason, the Government have maintained that bespoke provision is necessary to ensure certainty and fairness for third parties who have acted in line with decisions made by public bodies, and to protect good administration.