Renewable Transport Fuel Obligations (Amendment) Order 2011

I am happy to start, my Lords, as this is a very important area. I will start what I am about to say by showing how important it is. If you are a believer that global warming is one of the greatest challenges to this planet and to mankind, then this order is of particular importance. We often forget that transport accounts for 35 per cent of energy usage within the United Kingdom, so in order to meet our renewable energy targets of 15 per cent in 2020, and our decarbonisation targets of 80 per cent for the economy as a whole up to 2050, we obviously have to succeed in this area. If we do not, then we stand no chance of meeting our other targets. We know, however, that this has been one of the most contentious areas. Sometimes those of us who get involved in debates about wind farms and nuclear energy think that it is one of the areas where there is most division and angst among Members of the House and the public at large. However, this is one of the areas where we are asking what is and what is not a sustainable biofuel, and whether biofuels are good or bad. As we go on, that division—which seems to have got wider—is of great importance. We therefore have to make sure that we solve issues in this area. The renewable energy directive requires that we reach 10 per cent by 2020, and on this scale we get to 5 per cent by volume—but that is of course only 3.5 per cent by energy content in terms of that target. I looked at one of the reports of the Committee on Climate Change. It is useful to remind ourselves as background that in terms of decarbonising this sector, as the Minister said, renewable liquid fuels are pretty well the only option in the short term. What are the alternatives? I note that the Committee on Climate Change is looking for 1.7 million electric or hybrid vehicles by 2020, which will be 16 per cent of all purchases of vehicles by that time. Frankly, we will be very lucky if we get anywhere near that figure, and we are not on the trajectory to achieving the target of having almost completely electric vehicles by 2030. The other alternatives are hydrogen fuel, which seems to be a long way off, or second-generation biofuels. Since I have been involved in this debate, second-generation biofuels—let alone third-generation ones—have been talked about as if they are around the corner, and yet those debates have been going on for three or maybe five years, and they are still not here. What research and development and real impetus—by Europe, through the framework initiatives, and through our own government-sponsored research— is being put into these second generation biofuels? Until we move on to those, I do not think that this issue is overly solvable. That is the background, and we need to talk about the practice of this order. Clearly I agree with the Government’s sustainability criteria—that is key. However, I would like more detail about who these independent assessors might be and whether any bodies have volunteered yet? I presume that this is all ready to go because we have to implement this secondary legislation. I would like to understand how that works. How confident are we that that traceability can work? How do we define whether the land that is being used is the right type of land? That seems a very difficult call; I believe that sugar cane in Brazil can give us environmentally positive biofuels in the right places, but I still need to understand how we assess that in practical terms. This is all about the practice. I would love an assurance from the Minister that not one litre of biofuel that has been produced from corn oil in the United States will enter the United Kingdom; it has been through the various subsidy regimes in the United States. Corn products produced and consumed world wide have had a disastrous effect on the environment and global food prices, particularly in underdeveloped countries. I am very pleased that the Government have taken account of waste products such as used cooking oil and given it double points as a reward. However, in the interests of keeping the industry sustainable, and given the current 20p a litre subsidy—which cannot be there for ever; indeed, it should not be—I should like to see a transition programme. Technically, the subsidy period ends in four months’ time, but I would like the Minister’s assurance that we can have a transition period for at least one or two years while this new regime comes in so that we do not put that industry and investment in the dustbin at a time when we really need a renewable fuels industry. This may be a piece of secondary legislation, but it is of the utmost importance. It is very difficult to see how we will meet our targets in this area; I welcome the fact that we have this order before us, but we have real challenges.