My Lords, first, I thank my noble friend for tabling the amendment, and all noble Lords who have contributed to this debate. Whether it is for energy or, more particularly, their beauty, this country has a strong bond with trees. Although this is going off the subject, the tree diseases we have are particularly alarming and we need to do something about them.
I appreciate entirely the intention behind my noble friend’s amendments. They raise the issue of biomass for power generation and the need for appropriate measures to ensure that the sourcing and use of biomass are environmentally sustainable. The Government share my noble friend’s wishes in this respect and are taking steps to ensure that biomass can continue to play a sustainable role in a low-carbon energy mix.
Sustainability reporting is already applied to biomass plants under the renewables obligation. Generators using solid biomass and biogas feedstocks are asked to report on their performance against sustainability criteria, including a greenhouse gas life cycle target of 285 grams per kilowatt hour. The sustainability reports are published by Ofgem. However, under the current regime, if a generator does not meet the target, the consequence is solely one of reputational risk.
The Government have therefore consulted on proposals to enhance the existing sustainability criteria under the renewables obligation. The consultation includes proposals to: bring in a tightening trajectory so that the current target of a 60% greenhouse emissions saving compared to fossil fuel gets tougher over time in a series of steps; bring in new sustainable forest management criteria that consider a range of forestry issues, including biodiversity, land use rights, and sustainable harvesting rates; require generators to provide an independent audit of their sustainability report; and link eligibility for financial support with demonstrating meeting the improved criteria. We are planning to publish the Government’s response to the consultation later this month.
My noble friend also mentioned what the EU is doing in terms of sustainability under the renewables target. The European Commission expects to publish an updated report on sustainability criteria for solid biomass and biogas later this year. The current approach is voluntary and the Commission is considering if a mandatory approach is needed for solid biomass and biogas, and for biofuels and bioliquid. Some progress is being made there.
Given the incentive created by linking financial support to sustainability criteria, we believe that the renewables obligation is the most appropriate mechanism for delivering these improvements. Biomass projects supported under a contract for difference are also intended to be subjected to sustainability controls, and
Clauses 6 and 10 of the Bill provide the necessary powers. Although no final decision has been taken on the details of these controls under contracts for difference, it would seem sensible for consistency and clarity that these will be consistent with those under the renewables obligation.
Given that the Government are already proposing to strengthen the renewables obligation, and that powers exist for CFDs to include terms relating to sustainability, I hope my that noble friend will understand the concern that the thrust of these amendments to the EPS is covered elsewhere and may risk creating undue complexity and uncertainty for investors. The purpose of the EPS is to place a limit on the carbon emissions from fossil fuel power plants. In addition to the reasons I have set out, installations which use biomass exclusively as their fuel are specifically excluded from the EU Emissions Trading Scheme. Consequently, choosing not to cover biomass under the EPS treats it in a manner consistent with the EU Emissions Trading Scheme.
While I am wholly sympathetic to the intent behind my noble friend’s amendments, I hope that he will be sufficiently reassured that the Government are taking appropriate steps to strengthen further existing sustainability requirements in respect of the use of biomass. On that basis, I hope he might withdraw his amendment.
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