Check against delivery

Thank you to Public Policy Projects for putting on this event this morning. We have a wide range of experts with us, so I’m sure it will be a productive and valuable session. As Adam has set out, in order to complete the essential journey to net zero, we need every section of the orchestra to play in harmony – that means industry leaders, civil society and government – all pulling in the right direction. 

This could not be a more timely discussion following the conclusion of COP29 in the wee hours of Sunday morning – I do hope my friend Ed Miliband has had the opportunity to catch up on a little sleep since, but he looked in good spirits yesterday. I will reflect on the outcome of COP in a moment, but it is first important to note on our domestic progress. 

Whilst the UK has made progress in emission reduction, the Climate Change Committee has outlined that the pace of reduction declined in the latter stages of the last government.   

I think it is a positive sign that the previous government’s withdrawal from environmental leadership under the Sunak and short-lived Truss premierships didn’t lead to a recovery in their fortunes. That says to me that the consensus on the need for climate action held firm, but we must never be complacent that public opinion is settled or secure in favour of the actions needed. 

We are now only six years away from our first target to be on track to meet net zero. The target for a reduction in emissions, as set out in the Paris Agreement, was never going to be a straightforward ambition to meet.   

We should take pride in the fact that we have halved our emissions against 1990 levels, but there is no room for complacency. It is necessary now to redouble our efforts. 

I am glad that this new Labour government has shown promising signs of taking the challenge seriously.  

The appointment of Chris Stark as head of Mission Control was welcome and it was also hugely encouraging that during a really challenging budget settlement, the Department for Energy Security and Net Zero received a 22% increase in its funding from the Treasury.  

Clean power by 2030 is, of course, only part of the story. And achieving net zero whilst battling a very difficult post COVID financial backdrop will only be achieved by harnessing government spending, industry leadership and private sector investment having confidence in the stability of the investment outlook.  

The Climate Change Committee has called for £50 billion investment between 2030 and 2050.  

Government has a crucial role to play in plugging this gap. But, the private sector must also be encouraged to do its bit to avert climate catastrophe through a stable, reliable and attractive investment picture.    

Following the general election of this year, I hope that we are entering a new phase of political stability. Business can once again be confident in the policy direction and the intent of government.  

The new National Wealth Fund will see the introduction of £7.3 billion in public capital – presenting a massive opportunity to crowd in private investment to green infrastructure and net-zero boosting projects.   

These green shoots must be followed up with a renewed focus on the financial tools needed to help the private sector step up on climate – be that through green bonds, carbon pricing or doing the hard work of developing the relationships needed to get public-private partnership investment off the ground.  

The climate crisis is not faced by the UK alone. We must act globally.  

I was heartened that the Secretary of State chose to personally lead negotiations in Baku. The Prime Minister’s announcement, at the beginning of COP, that the UK plans to cut its emissions by 81% from 1990 levels by 2035 is a real statement of intent about our efforts to tackle climate change. Time is running out for us to make sure that these goals are met.  

So, whilst I welcome this renewed determination, it is important that the government now brings forward credible and detailed delivery plans for our increased Nationally Determined Contributions – that reflect the severity of this issue and the uplift in ambition.  

With increasingly turbulent and uncertain global headwinds, it was crucial that this COP made progress and secured crucial commitments, including on finance, to pave the way forward. The outcome of the American presidential election and escalation of conflicts around the globe lead me to fear that climate can all too easily fall down the list of priorities for global leaders. 

As we absorb the outcome of COP, in spite of the UK’s ambitious approach, the latest summit has only served to stoke those fears. 

We cannot avert this impending crisis by acting unilaterally. Countries in the developing world asked for $1.3 trillion a year by 2035 in financial support to help adapt to climate change and reduce reliance on fossil fuels. This figure was not simply plucked from the sky. A report by the Independent High Level Expert Group on Climate Finance made clear that this target is essential. 

The $300 billion agreed for developing nations in climate finance is a fragment of what is required. Developed nations, should be leading the way and doing all we can to support nations with lesser means and who are often most vulnerable to the changes brought about by the continued warming of our climate and the consequences that will bring.  

Let us not forget, investing in the climate mitigation of these countries is in an investment in all our futures. Global warming does not discriminate between emissions pushed into the atmosphere here or in a developing country. It is self-defeating to starve these nations of the cash they so desperately need. 

Equally, the breakthroughs earlier this year, at COP 16 on a global levy for biological information and the incorporation of indigenous communities into UN decision making were positive outcomes. However, the lack of movement on a financial strategy, or the failure of wealthier nations to deliver on $20 billion dollars of support to be allocated to developing nations by next year, to tackle nature’s decline, was hugely disappointing.  

On nature and the climate, we should be mobilising the expertise held in the city and be proud of Britain’s strengths in this field. The UK is uniquely placed to develop these market opportunities.   

There is much more we could be doing. The groundbreaking Dasgupta Review shone a light on the value of nature and the services it provides for the climate.  

My committee, the Environmental Audit Committee, will look to ensure that the government continues to drive down our carbon output at pace. Indeed, tomorrow afternoon we will be quizzing the interim Chair of the Climate Change Committee on the government’s announcements to up the ante on our Nationally Determined Contribution. We need to be sure that these plans are viable and deliverable.  

Thank you again to Public Policy Projects for putting on this session and allowing us to have this conversation about the way forward today. 

I will do my bit to hold government to account on its commitments but only Ministers and their officials can take the urgent action we all need to turn good words into outcomes. We are counting on them.