Climate Change Bill [HL]

My Lords, I will come to that point as I deliver my argument, because there is a full context for that activity. The noble Lord has raised an extremely important point but, if I may, I shall describe how we envisage the whole structure working. I may be able to answer him more precisely within that framework. We want to provide as much certainty as possible for the business community—the noble Duke/Earl is reflecting uncertainty—about the levels. I understand the point that he is making. That is why we are concerned to resolve that and a number of other points he will recognise that we want to show leadership internationally in this area for the business community. The amendments are therefore designed to reinforce the Government’s commitment to the importance of corporate transparency, and to taking forward the process as quickly as possible. Amendment No. 45 would require the Secretary of State to introduce guidance on corporate reporting by October 2009. That will provide a structure to help companies and others to report their emissions where they choose to do so. We will consult on the guidance next year, working closely with key stakeholder groups, including the CBI, to ensure that it fully reflects current best practice and is practicable for businesses to work with. Since we last considered the issue of corporate reporting in this House, we have looked a little further at the evidence of costs and benefits of requiring all large and medium-sized companies to report on their greenhouse gas emissions. Our initial analysis shows that, although companies which voluntarily measure and monitor their greenhouse gas emissions may be more likely to manage them effectively, there is no settled evidence that being required to report on emissions would drive emissions reductions. More work clearly needs to be done to clarify the situation. Amendment No. 46 would commit the Secretary of State to review the contribution of mandatory corporate reporting to achieving the UK’s climate change objectives, and report back to Parliament by December 2010 at the latest. The review will allow us to assess the current legislative and voluntary requirements and design a targeted reporting requirement that addresses those gaps proportionately. Of course, I am strongly mindful of the view originally taken by this House on the role of mandatory corporate reporting. Amendment No. 47 would require the Government to introduce mandatory reporting by April 2012, or to lay an explanation before Parliament as to why they have not done so. That would make clear in the Bill our intention to move towards mandatory reporting of emissions, provided that we can be sure that it is environmentally beneficial and cost-effective. Setting a deadline of 2012 to establish a standard will allow time for businesses to prepare and for proper consideration of the issues by government and stakeholders. We consider that it is important to include a deadline, as that provides greater certainty to businesses and stakeholders. I believe that the proposals are both ambitious and proportionate, while containing important flexibilities. For that reason, I consider that Clause 80, which was proposed in this House, is no longer necessary. Amendment No. 51 would remove it from the Bill. I now turn to Amendments Nos. 48 and 48A and 48B. Amendment No. 48B is a re-drafted version of Amendment 48. I propose that Amendment No. 48 should be disagreed to, and that the new clause in Amendment No. 48B should be added to the Bill in lieu. Amendment No. 48B would require the Treasury, acting through the Office of Government Commerce, to produce an annual report on progress made towards improving the efficiency and sustainability of the government estate. The report will specifically cover the steps taken to reduce the size of the civil estate; to achieve further efficiencies from the Government’s existing buildings; to improve the sustainability of those buildings; and to ensure that new buildings procured are in the top quartile of energy performance. It is right that the Government lead by example. We must get our own house in order if we expect others to take the necessary action to tackle climate change. That is why we are committed to taking action in this area, which builds on other commitments we have made on improved sustainability. For example, government departments will be included in the carbon reduction commitment, which will incentivise the introduction of energy efficiency measures and the occupation of more energy-efficient office space.