Lord Adair Turner

ATTENTION – VISITORS FROM CACC CAMPAIGN WEBSITES AND EMAILS.  ALTHOUGH IT IS SPELLED OUT IN WHITE AND BLACK, MANY OF YOU HAVE FAILED TO REALISE THAT WE ARE NOT THE ORGANISERS OF THE EVENT. THE DEMONSTRATION IS ORGANISED BY MODERN MOVEMENT. Thanks, the Editors.

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Modern Movement, who are mounting a stand to the bleak language of the environmentalists, are planning a demonstration in favour of the Heathrow Airport expansion, to counter a demo planned by opponents of the scheme.

Support Airport Expansion: Thursday 19 February, 17.30 -19.30 on Parliament Square, East Footway

The extension of flying to millions of people has been a liberation. Most of us can now afford to go on holiday and welcome the cheapening of air travel allowing us to fly abroad. The development of aviation infrastructure is crucial to allow ever more people to fly.

This is why Modern Movement will be holding a counter-demonstration at the same time as the anti-aviation groups to show our support for airport expansion and urge on the building of the third runway at Heathrow.

Join us in front of Parliament to argue for guilt-free travel, for ever-cheaper flights and for freedom of movement.

Modern Movement – Faster, Cheaper, Better Transport for All!

Banners, flags and posters welcome but not essential. Look out for the large Modern Movement banner. This demonstration has been authorised by the Metropolitan Police.

This comes in the wake of what seemed to be a call for movement to be rationed from the Climate Change Committee chair, Lord Adair Turner, who gave evidence to the Environmental Audit Committee last week,

If there has to be demand constraint, we will then bring in the analysis I mentioned earlier of where are these flights, and one of the questions we will ask is, “How many of the flights which occur are of sufficiently short distances either because they are domestic or they are London to the south of France, London to the skiing resorts, et cetera”, that there is a believable story that they do not have to be flights, they can be high-speed rail, or are quite a lot of them things where, realistically, it is never going to be competed by high-speed rail and, therefore, you actually have to say that we have got to constrain demand in an absolute sense and people just will not be able to make as many journeys as they would want to in an unconstrained fashion. That is the analysis that we are going to do.

If you’re near enough to London to be able to make it to the demo on the 19th Feb, please do.

At the risk of getting all Exxon-Secrets ‘on yo asses’… Thanks to the reader who let us know about Bob Ward‘s latest career move. Ward, if you remember, left his post of director of communications at the Royal Society to join global risk analysis firm RMS as Director of Global Science Networks. It was a perfectly natural progression that allowed him to continue both his pseudo-scientific catastrophe-mongering and his crusade against Exxon and Martin Durkin. Which he did.

Ward now pops up at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics, where he has taken on the post of Policy and Communications Director. The Grantham is chaired by Professor Lord Sir Nicholas Stern of Brentford, author of a rather influential report on the economics of climate change, and who stands to profit admirably from institutional environmentalism via his carbon credit reference agency. It is no surprise that Ward and Sir Nicholas find themselves in the same company department, given their shared interests. Stern is also Chair of the Centre for Climate Change Economics and Policy (CCCEP), which is funded by the UK government’s Economic and Social Research Council (ESRC), and which acknowledges that ‘Generous support for the Centre’s work is also provided by Munich Re’. Munich Re is the insurance giant that claims to know what the IPCC does not when it comes to the reality of climate change in the present.

Glancing down the profiles of Grantham’s management team, we spot another corporate Green to have found a new home among academic foliage. The last time we looked, Sam Fankhauser was Managing Director of IDEAcarbon:

IDEAcarbon is an independent and professional provider of ratings, research and strategic advice on carbon finance. Our services are designed to provide leading financial institutions, corporations, governments, traders and developers with unbiased intelligence and analysis of the factors that affect the pricing of carbon market assets.

IDEAcarbon’s parent company is IDEAglobal, where Stern is Vice President.

Fankhauser doubles up as a member of the Climate Change Committee, the ‘independent’ body set up by the UK government to advise the UK government on climate policies.

The CCC is chaired by Lord Adair Turner of Ecchinswell, a man whose CV includes stints of environmental activism as a trustee for WWF and membership of the Advisory Board of Climate Change Capital, a firm offering services as an ‘investment manager and advisor specialising in the opportunities created by the transition to the low carbon economy’.

After all this, we were slightly disappointed to gather that the Grantham Research Institute is not named after the birthplace of green pioneer Margaret Thatcher. That it’s named in honour of multi-millionaire sponsors Jeremy and Hannelore Grantham, whose Grantham Foundation for the Protection of the Environment also supports such green multi-nationals as GreenpeaceOxfamWWF and the Union of Concerned Scientists, is no less appropriate, however.

Grantham’s raison d’être is, according to its Chair:

Professor Stern said: ’As scientists continue to play their role in analysing the causes and effects of climate change, it is crucial that social scientists take a lead in the building of policy. The Grantham Institute will produce high-quality, policy-relevant research, alongside a range of outputs designed to support policy development, raise public awareness and contribute to private-sector strategy formation.’

Climate Resistance would not stoop to suggest that the corporate and ideological interests of the Grantham Research Institute’s staff could conceivably influence the direction or quality of its research output.

In fact, it’s worth re-stating that we wouldn’t make so much of the financial interests of these folk were it not for the fact that Bob Ward and his cronies make so much about links with dirty oil money, as exemplified by Ward’s former boss at the Royal Society, Bob May, writing in the TLS:

Despite the growing weight of evidence of climate change, along with growing awareness of the manifold adverse consequences, there remains an active and well-funded “denial lobby”. It shares many features with the lobby that for so long denied that smoking is the major cause of lung cancer. [...] Whoever got things started, this is a ball which ExxonMobile picked up and ran with, shuttling lobbyists in and out of the White House as it did so. Following earlier talks and seeking to exemplify its centuries-old motto – Nullius in Verba (which roughly translates as “respect the facts”) – the Royal Society recently and unprecedentedly wrote to ExxonMobile, complaining about its funding for “organisations that have been misinforming the public about the science of climate change”, and more generally for promoting inaccurate and misleading views – specifically that scientists do not agree about the influence of human activity on rising temperatures.

Likewise, we would be less interested in such dodgy dealings if it weren’t for the mainstream media’s tendency to decry Exxon funding as corrupting of the scientific method while deeming Munich Re’s pronouncements – let alone the pronouncements of those they sponsor – as above scrutiny. It’s also worth re-stating at this point that fear is to the insurance industry what oil is to Exxon.

The ESRC’s CCCEP is worthy of further comment. According to its home page:

Human-induced climate change could have enormous impacts on economies and societies if we persist with ‘business as usual’. This is the consensus view of climate scientists and one with which economists are increasingly finding agreement (eg The Stern Review). It is much less certain, however, that our economic, social and political systems can respond to the challenge. Will public, private and civic actors take action to create low-carbon economies? What emission reduction strategies will be efficient, equitable and acceptable? How much should we invest, and when, on measures to reduce vulnerability to climate change? Who will bear the costs and enjoy the benefits? [...] The Centre is chaired by Professor Lord Stern of Brentford

So, Lord Professor Sir Nicholas Stern’s report on the economics of climate change is somehow representative of the ‘scientific consensus’, and he shall, therefore, chair the ESRC’s climate change body.

There was a time when the social sciences felt it necessary to scrutinise the natural sciences, on the basis that scientists weren’t quite as objective as they liked to think they were. They had a point, even if the scientists were probably more objective than the sociologists thought they were. It was a good fight. Now, however, the starting point of centrally-funded social science is that it accepts unconditionally that not only is there is a scientific consensus on climate change, but there is an economic one, too. Aren’t new-fangled scientific practices like consensuses and peudo-scientific creations like ‘sustainability’ precisely what the social sciences should be scrutinising?

The CCCEP assumes from the outset that it follows necessarily that something must be done – and, indeed, that is the duty of each of us to do something. From its mission statement:

Climate change and its potential impacts are increasingly accepted, but economic, social and political systems have been slow to respond. There is a clear and urgent need to speed up efforts to reduce greenhouse gas emissions and to adapt to unavoidable climate change.

The Centre’s mission is to respond to this need by advancing public and private action on climate change through innovative, rigorous research.

This is not sociology as the study of social institutions. It is sociology as government department, scholarly discipline and activist group all rolled into one. As if the Science Wars never happened, ‘climate science’ is free once again to speak ‘Truth to Power’ unfettered. Except that now it is aided and abetted by those who would be scrutinising it were it not for the fact that sociology has lost any sense of mission, just as political parties, the media, environmentalist activists and a host of scholarly disciplines attempting to justify themselves in terms of ‘relevance’ have lost sense of their mission.

The environmental orthodoxy is a tangled web of corporate interests, policy-makers, -movers and -shakers, academics, NGO’s and activists – all pushing in the same direction. Which would be just fine if the idea had been tested democratically. But it hasn’t. We’ve said it many times… environmentalism has not risen to prominence through its own energies: it has not developed from a mass movement; it isn’t representative of popular interests. It is useful only to various organisations that have otherwise struggled to justify themselves over the last few decades. The political parties have bought it. Various ‘radical’ organisations have bought it. Large sections of the media have bought it. Academic departments and funding agencies have bought it. Little wonder that corporate interests have been able to jump upon the bandwagon and play their hearts out for personal financial gain.

Forget speaking ‘Truth to Power’. Today it’s all about speaking ‘Official Truth™ for Official Power©’.

Before we get stuck into 2009, we missed a spillage from the festive period that needs mopping up…

In a remarkably gullible news item, the BBC covered a new report revealing that 2008 was a ‘Huge year for natural disasters':

The past year has been one of the most devastating ever in terms of natural disasters … climate change [is] boosting the destructive power of disasters like hurricanes and flooding

The report finds that:

Although there were fewer “loss-producing events” in 2008 than in the previous year, the impact of natural disasters was higher [...]

More than 220,000 people died in events like cyclones, earthquakes and flooding, the most since 2004, the year of the Asian tsunami.

Meanwhile, overall global losses totalled about $200bn (£137bn), with uninsured losses totalling $45bn, about 50% more than in 2007.

This makes 2008 the third most expensive year on record, after 1995, when the Kobe earthquake struck Japan, and 2005, the year of Hurricane Katrina in the US.

The BBC article quotes expert Torsten Jeworrek:

“Climate change has already started and is very probably contributing to increasingly frequent weather extremes and ensuing natural catastrophes,”

Thing is, Torsten Jeworrek is an expert in insurance, not climate. He is on the board of insurance giants Munich Re. And Munich Re are the authors of the new report. It goes without saying that insurance companies need to keep abreast of developments in risk if they are to provide a service for their clients. But it also goes without saying that generating alarm about those same risks is also to their advantage. To paraphrase what we have said before, fear of risk is to Munich Re what oil is to Exxon. Indeed, Munich Re says as much on its website:

Risk is our business: Among other things, we reinsure the risks connected with oil rigs, satellites and natural catastrophes, and those arising from the use of genetic engineering and information technology or from the management of companies.

Climate change is not the only issue Munich Re is whipping up alarm about. It also desires that we flap over other scares du jour, such as piracy…

Piracy reaches new dimensions: The frequency and severity of piracy attacks have reached alarming levels

terrorism…

Megacities extremely vulnerable to natural perils, technological risks, terrorism and environmental hazards / More risk awareness and greater transparency urgently needed with regard to hazard exposure / Munich Re presents its views at the UN’s World Conference on Disaster Reduction

and obesity…

Obesity and type 2 diabetes are spreading at an alarming rate around the world

But, mostly, it’s climate change…

10 April 2008
India: Increase in losses due to climate change / Board member Torsten Jeworrek: “In coming decades, the effects of climate change will make themselves felt particularly in emerging countries like India.”

climate change…

29 September 2008
Munich Re exhibition in Tokyo highlights risks and opportunities of global warming

climate change..

27 December 2007
Natural catastrophe figures for 2007: Higher losses despite absence of megacatastrophes, very many loss events / Overall economic losses of US$ 75bn / Board member Dr. Torsten Jeworrek: Loss figures in line with the rising trend in natural catastrophes, Munich Re is prepared

climate change…

July 2008
High death toll marks the 2008 half-year natural catastrophes figures

and climate change…

5 June 2007
Munich Re signs the “Declaration on Climate Change” of the United Nations Environment Programme Finance Initiative. / Munich Re Board member Torsten Jeworrek: “Climate change is one of the greatest challenges of our time. What we do today is crucial for future generations. Therefore, swift international action is urgently needed.” / Munich Re forecasts long-term increase in demand for risk protection as a result of climate change and growing concentrations of values.

And there’s plenty more climate change where those came from.

Munich Re is certainly not the first insurance company to try to cash in on climate alarm by generating more of it. Back in April 2007 we reported on the efforts of risk assessment giants Risk Management Solutions (RMS) to do the same. Bob Ward, RMS’s Director of Global Science Networks, was continuing a crusade against the dirty denialist industry – namely, Exxon and Martin Durkin – that he started while in his previous employment as Senior Manager for Policy Communication for Exxon-slayers the Royal Society.

What is surprising is that the BBC have deemed the witterings of an insurance company worthy of a news story, and moreover, that they have chosen to take those witterings entirely at face value. At the very least they could have wondered why earthquakes were lumped into the analysis or how much the figures were skewed by one devastating cyclone in Myanmar.

Torsten Jeworrek’s quotes – like the whole BBC story, in fact – are lifted directly from Munich Re’s press release. But then, perhaps the BBC didn’t have much choice (other than to ignore the story completely) because Munich Re haven’t actually made their report available. When we emailed them for a copy, media relations officer Alexander Mohanty replied that:

there is no additional report or publication.
Munich re’s annual report on natural catastrophes is a press relase only traditionally.
But we will publish a more in-depth report in march called ‘topics’.

The BBC has been known to argue that the existence of ‘the consensus’ on climate change means that they are not obliged to seek balancing viewpoints from anyone who doesn’t entirely sign up to it. With this story however, they seem to be going rather further than is necessary to live up to their own journalistic ideals. They back up Jeworrek’s comments with quotes from Peter Hoppe, head of Munich Re’s Geo Risks Research, which are also lifted verbatim from the presser:

“It is now very probable that the progressive warming of the atmosphere is due to the greenhouse gases emitted by human activity,” said Prof Peter Hoppe, head of Munich Re’s Geo Risks Research.

“The logic is clear: when temperatures increase there is more evaporation and the atmosphere has a greater capacity to absorb water vapour, with the result that its energy content is higher.

“The weather machine runs into top gear, bringing more intense severe weather events with corresponding effects in terms of losses.”

The company said world leaders must put in place “effective and binding rules on CO2 emissions” to curb climate change and ensure that “future generations do not have to live with weather scenarios that are difficult to control”.

Yes, ‘the logic is clear’…

– the world has been warming up a bit
– human activity probably has something to do with that
– some models say this might influence the frequency of severe weather events
– therefore, an expensive year for civilisation (and insurance companies) means that climate change is already happening
– therefore, we need a global agreement to reduce carbon emissions

Other than pointing out that Hoppe’s clear logic is clearly not, it’s hard to comment on the accuracy and rigour of Munich Re’s analysis, because, as we said, the analysis is not available for scrutiny. But it’s hard to see how an insurance company can have had more success than ‘the world’s 2500 top climate scientists’ at isolating the effect of climate change on the occurrence of severe weather events. But then again, perhaps we can look forward to the IPCC citing Munich Re on matters of climate-change induced weather patterns in its own reports in the future. And in a world where top scientists are wont to defer to economists on scientific matters of climate change, that is not such an unlikely possibility.

It is perhaps interesting that the economist in question, Professor Lord Sir Nicholas Stern, has rather a close working relationship with Munich Re. Understandably, Munich Re is rather proud of the fact that its dirty insurance money funds such a high profile environmentalist:

In 2008, Munich Re launched a cooperation with Professor Lord Nicholas Stern and the London School of Economics (LSE), the aim being to advance research into the economic impact of climate change.

And Prof Lord Sir Nicholas has nothing to be embarrassed about. Because nobody – least of all the BBC – seems at all bothered by any such conflict of interests. They are all too busy worrying about who Exxon is funding. Those who shriek the loudest about climate change – whether it’s insurance companies, Stern, the Royal Society, Lord Adair Turner or the Tickell dynasty – often have the most to gain from alarmism. It seems that the greens have been right all along: an economic tail really does wag the scientific dog.

Ben has another article about the Climate Change Committee on The Register today. 

There’s no doubt there’s money to be made from this new legislation, which was passed last week. A recent conference, given the title ‘Cashing in on Carbon’ was, in its own words, “aimed squarely at investment banks, investors and major compliance buyers and is focused on how they can profit today from an increasingly diverse range of carbon-related investment opportunities”.

Read on.

Here is an exchange between Peter Lilley MP, and other members of the House of Commons on Tuesday’s reading of the Climate Change Bill. 

Notice how Elliot Morley cites Stern and Lord Turner as authorities. 

It is as if Stern had no critics. The entire house of commons appears to be in his thrall. One man, who now is Vice Chairman of a group of companies with a commercial interest in climate change legislation, is being cited in lieu of democratic debate. 

Lord Turner, who is also cited, has written no more than a letter to Ed Milliband. And Lord Turner, as a former Trustee of the World Wildlife Fund, and a former member of the board of advisors at Climate Change Capital, cannot be said to be politically impatial, nor without financial interests. 

The house voted hugely in favour of the ammendments to the Bill, which means that shipping and aviation will now be included in the 80% target. If the bill is passed, then it will mean big fat profits for Stern, Turner, and their associates as shipping and aviation companies seek their services. 

Meanwhile, people in the UK will be unable to afford to travel, facing rising costs, and face job losses. 

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Mr. Lilley: I draw the House’s attention to my declaration in the Register of Members’ Interests.

In the speeches of a number of hon. Members, it has been assumed that the whole House is unanimous on the measures before us, and on the Bill that they amend or add to. Historically, the House has made its worst mistakes not when it is divided, but when it is virtually unanimous; not when it is adversarial, but when MPs switch off their critical faculties in a spasm of moral self-congratulation. My concern is that, in considering these measures, we are displaying that tendency. It is vital that we bring the House back down to earth by considering the hard costs and benefits of, and alternatives to, what is proposed and what we are doing. We have not done that very much so far in the debates in the House. Only once in Committee was mention made of the costs and benefits of what we are proposing.

Mr. Morley: The right hon. Gentleman will find that, apart from the Stern report, which addressed the issue of costs and benefits, the report by Lord Turner specifically identified some of the projected costs for his recommendations, which are now being incorporated in the Bill. They were relatively modest.

Mr. Lilley: I am not in any way disputing what the hon. Gentleman says, but no hon. Members, in either the House or Committee, have addressed the question of costs and benefits. They could have done so, as the Government have produced an impact assessment spelling out their estimate of the costs and benefits involved. Those figures are all we have when it comes to trying to assess the costs and benefits of the specific clauses and amendments before us.
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The Government’s impact assessment has three very important implications. The first is that the costs of the Bill as a whole are potentially huge, and they will be even more onerous if these proposals are accepted. The impact assessment puts the transitional costs at between 1.3 and 2 per cent. of gross domestic product up to 2020. In addition, there will be competitive costs to this country as a result of industry being driven overseas, even though that will not reduce the level of carbon emissions. Ignoring both those costs and making the heroic assumption that British industry can instantly and perfectly implement the latest and most cost-effective technology to meet the targets, means that the estimated cost of the Bill as a whole—even before the target for emission reductions is increased from 60 per cent. to 80 per cent.—comes to £205 billion.

That is a lot of money. We have to ask whether we are prepared to increase it by including aviation and shipping, as the measures before us propose. I do not know whether hon. Members have consulted their constituents, but £205 billion would equal over £10,000 from every family in every constituency.

People are used to hearing about the large sums of money being used to rescue the banks, but that has been in the form of loans that one hopes ultimately will be repaid. The costs that we are incurring through the amendments—and by the Bill even if it remains unamended—are real money. Our constituents will cough up that £10,000 in taxes and lost incomes, and never see it again. Before we add even more onerous burdens by including aviation and shipping in the Bill, we must be very sure that we are happy with the costs that we are already incurring.

Secondly, we need to look at the benefits, which the impact assessment also considers. Although it shows that the maximum costs, even excluding all the things proposed in the measures before us, are potentially £205 billion, the striking thing is that it puts the maximum benefits of the actions proposed in the Bill at £110 billion, or just over half that total. Do the authors of the new proposals believe that their costs will eventually exceed their benefits, as is the case with the Bill as a whole, or can they reassure us that the benefits will be greater than the costs?

Mr. Christopher Chope (Christchurch) (Con): Will my right hon. Friend give way?

Colin Challen: Will the right hon. Gentleman give way?

Mr. Lilley: I will give way in a moment, and especially to the hon. Member for Morley and Rothwell (Colin Challen).

I have reservations about the certainty with which some people adopt the scientific case behind global alarmism, but I am equally uncertain that it is necessarily wrong, so I am quite prepared to take out an insurance policy against the possibility that we will face global warming, just as I insure my house against the possibility of fire. However, I ask the House whether it is sensible to buy into an insurance policy whose premiums could be twice the value of one’s house—

Mr. Deputy Speaker: Order. The right hon. Gentleman is an experienced and skilful debater in this House, but I think that he must realise himself that he is building a 
28 Oct 2008 : Column 761
broad case on a narrow foundation. The remarks that he is making are, in terms of good order and debate, more strictly applicable to later parts of the Bill, and particularly to Third Reading. Therefore, I really must direct him to the specific matter covered in this group of new clauses and amendments.

Mr. Lilley: Of course I take your remarks to heart, Mr. Deputy Speaker.

We have to remember the normal laws of declining marginal benefit and increasing marginal cost. If we tighten the Bill by adding more rigorous burdens regarding aviation and shipping, we must expect the costs to be higher than the costs of meeting the 60 per cent. target, let alone the 80 per cent. target, and we must expect the benefits to be less than the marginal benefits that were to be accrued.

5.30 pm

David Howarth: The right hon. Gentleman will of course be aware of the work that Professor Barker did with Pan, Köhler, Warren and Winne, published in 2006 in The Energy Journal, which showed that as the targets become stricter, the world growth rate increases because of induced technological change. Economics has moved on slightly since he was at Cambridge.

Mr. Deputy Speaker: Order. Oh dear. The hon. Gentleman is enticing the right hon. Member for Hitchin and Harpenden (Mr. Lilley) towards the wider aspects of the Bill again. I must remind the House that we want to make progress on to other matters, and we should therefore stick strictly to the terms of the amendments before us.

Mr. Lilley: I will do just that and avoid discussing with the hon. Member for Cambridge (David Howarth) my experience of Cambridge, which was splendid. I instead return to the measure before us, which asks the Committee on Climate Change to assess the cost of including aviation and shipping in the Bill. However, the new clause does not say how those assessments are to be made. We must assume that they are to be made on the basis that Lord Stern used to assess the costs and benefits in the report to which the right hon. Member for Scunthorpe (Mr. Morley) referred, or on the basis used in the impact assessment that the Government put before the House, although that assessment refuses to give us any costings specifically on aviation and shipping.

It is interesting that the impact assessment totally contradicts Lord Stern, who said that the costs of the measure, including aviation, would be far short of the benefits. Of course, he only reached that conclusion by discounting the future at such a low rate that the benefits exceeded the costs. According to Nordhaus, the leading valuator of this sort of methodology, half the benefits that Sir Nicholas Stern takes into account will not occur until after the year 2800, but so low is his discount rate that they outweigh the costs that we will incur in this century.

More sensibly, the Government rejected that. I asked them what interest rate they think should be used, and presumably want to use, in the assessments that they require in new clause 15. They say that they are using the traditional, conventional discount rate required by the Treasury of 3.5 per cent. in real terms. That is why 
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their calculations show that the costs are not necessarily much lower than the benefits, and could well be twice as great as the benefits. Presumably, if the Committee follows the Government’s methodology, it could reach the same conclusion for aviation and shipping.

Rob Marris rose—

Mr. Lilley: I give way to the hon. Gentleman, who made by far the best speech on Second Reading.

Rob Marris: I am grateful to the right hon. Gentleman. Like other industries, aviation and shipping are, of course, susceptible to technological change. On the £205 billion cost—that is the upper end; the lower end is £30 billion—may I point out that the impact assessment said:

    “Upper end of the range assumes no technological change”?

There may well be technological change in aviation and shipping. Conversely, on the benefits, which are between £82 billion and £110 billion, the impact assessment says:

    “Benefits are therefore likely to be higher.”

I suggest that the right hon. Gentleman is being a little pessimistic about aviation and shipping, and about the cost-benefit analysis.

Mr. Lilley: I may be wrong, of course, but I am using the Government’s figures. Throughout the debate no one else has bothered even to mention the Government’s figures, and they were mentioned only once in Committee. It is only sensible that we should do so, and if we do, and if in particular we reach the conclusion that they should use the methodology implied in the impact assessment and not the absurd methods used by Sir Nicholas Stern, now Lord Stern—he received his reward—they would reach a conclusion very similar to that advocated by the hon. Gentleman on Second Reading: that we should put far more emphasis on adaptation to helping poor countries cope with climate change, rather than on crippling our industries—aviation, shipping and all the other industries—to little avail.

Mr. Tyrie: rose—

Mr. Lilley: I give way to my hon. Friend, who made the equal best speech on Second Reading.

Mr. Tyrie: I hope that my right hon. Friend has not devalued the compliment that he threw across the Floor of the House; heaven knows what he will say when another Member seeks to intervene.

The question at issue has been whether technology in aviation and shipping can proceed at a pace to enable the costs to be kept reasonably low and therefore to allow us to pick up the benefits of a low carbon technology without extra cost. Is my right hon. Friend aware that the leading estimates of the improvement needed in carbon productivity are that it needs to increase fourfold over the next 40 years—that is, that the average of the past 15 years, which is 1.5 per cent. per annum, needs to increase to about 6 per cent. per annum if we are to get anywhere near meeting the 80 per cent. target? Will he speculate on whether it is plausible that a fourfold increase can be achieved?
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Mr. Lilley: That would be extremely demanding, but the implications of the Government’s impact assessment both for aviation and shipping and for industries more generally is that we must find more effective ways of reducing costs and carbon utilisation than they themselves think are available or would result from the measures in the Bill.

Either that, or we must adopt the route proposed by the hon. Member for Wolverhampton, South-West (Rob Marris) and devote more effort to adaptation to climate change rather than mitigation, which would remove the burden—the almost impossible task—of bringing aviation and shipping into the scheme. It would also mean that, if global warming continues but turns out not to be predominantly the result of human activity, we would still be able to help the people in poor countries who would suffer from it, whereas we would not help them if we relied only on mitigation efforts.

The implications of the clauses before us are extremely serious. We are potentially asking our constituents to bear a burden of £10,000 for every household, should we increase it. We are potentially producing benefits that may be only half the costs that we are incurring. We have been using a method to assess future costs and benefits that has been surreptitiously abandoned by the Government, but they have told us nothing about it. These issues ought to be discussed more fully before the Bill becomes law, and it is a sad day when Parliament refuses to face up to these hard facts.

Alan Simpson (Nottingham, South) (Lab): There is a real danger of the House misleading itself into debates which, although important, are not the debates that should be taking place on the amendments. There are issues to be addressed concerning the methodology of impact assessments, but at this stage the House is being asked to address the principle of the inclusion of the Government’s assessment of carbon impacts in the way in which we set our carbon budgets. It is important to bring the debate back to that.

It is also important not to allow ourselves to conduct a caricature debate about the choices that we face. The choices are not between unilateralism or multilateralism, or between mitigation or adaptation. We will have to do both. When the ship is sinking, the last thing we want to hear is someone running round the decks saying, “No action until there is a global refit.” If the ship is sinking, we want action taken on the threat that we face at that time.

What we need to recognise from the scientific reports, which have been coming to us in their own tsunamis, is that the climate and the planet are the part of the equation that is in the process of taking the most enormous unilateral action. We will have to address huge upheavals in the whole framework of how we consider societies and economies capable of working viably throughout the whole of this century.

I had hoped that the hon. Member for Birmingham, Yardley (John Hemming) would be here for his customary intervention on this issue. The answer to the question about oil is that by the time we come out of the current global financial crisis, two things will be queuing up. The first will be the climate crises already in the pipeline. Secondly, by that time we will probably have passed the peak oil level anyway, and we will have to move to a post-oil economy if we want a viable economy of any sort.

The Independent newspaper announced yesterday that

The UK should cut its greenhouse gas emissions by at least 80 per cent by mid-century, the Government’s climate change committee recommended today.

The committee said a more stringent target than the 60 per cent cut currently in the Climate Change Bill was needed, because new information suggested the dangers of global warming were greater than previously thought.

The dangers of climate change were worse than previously thought? What possible worse scenario could there be, than the barrage of catastrophic visions we have been subjected to by activists, politicians, and the media, over the last few years?

When we started this blog in April 2007, we said:

Because of a perception that the public mood demands action to mitigate climate change, the UK government has used the IPCC findings to justify committing the country to a 60% reduction in CO2 emissions by 2050. Like much environmental policy, this has gone largely unchallenged by opposition parties.

Nobody in UK politics was challenging the often very tenuous claims that climate change would mean catastrophe. And even fewer people were challenging the even less credible idea that the only way to prevent catastrophe was to prevent CO2 emissions. And worst of all, everybody involved in UK politics seemed to be using the looming catastrophe to demand that people use less, expect less, and obey the tenets of environmentalism. There being no challenge to this orthodoxy, and no questions asked about either its effectiveness or its consequences, how could the process of the greening of the UK be seen as democratic?

In March last year, the government published a Draft Climate Change Bill, proposing that the UK reduces its CO2 emissions by 2050. This lead to criticism that it hadn’t gone far enough. The Conservatives said they would reduce emissions by 80%, and the Liberals 100% by 2050. The Government wasn’t taking the threat of climate change seriously enough, they said, and the 60% figure proved it. This shows that there is only one way that the politicians in the UK can respond to the perception of a crisis; they have to make it worse, and worse, and worse, and promise that they are the only party that can hope to solve this terrible mess, and that the other parties are so incompetent, that only a terrible catastrophe can follow their inevitable failure.

Following this game of politics-by-numbers, on October 2007, the Environment Secretary announced changes to the bill:

The changes to the draft Bill, set out in a Command Paper entitled ‘Taking Forward the UK Climate Change Bill’ published today, include:

  • As announced by the Prime Minister in September, asking the Committee on Climate Change to report on whether the Government’s target to reduce CO2 emissions by at least 60 percent by 2050 should be strengthened further;
  • Asking the Committee to look at the implications of including other greenhouse gases and emissions from international aviation and shipping in theUK’s targets as part of this review;
  • Strengthening the role and responsibilities of the Committee on Climate Change, including by requiring the Government to seek the Committee’s advice before amending the 2020 or 2050 targets in the Bill;
  • Strengthening the Committee’s independence from Government, by confirming that it will appoint its own chief executive and staff, and increasing its analytical resources;

It would no longer be the responsibility of politicians to determine the level of CO2 emissions that the UK would allow. It would instead be determined by an expert committee. This would end the silly squabbling between parties about which percentage cut in CO2 best reflected the ‘scientific’ advice. But it also removes the possibility that we or you might influence the environmental policies of the UK through the democratic process. As we’ve pointed out many times before, environmentalism is a political idea; it aims to reorganise society around its values and ethics. Yet this ideology has never been tested democratically. It hasn’t won any seats in the UK parliament, yet almost the entire house of commons has embraced environmentalism. Its as though, one morning, the House of Commons turned up for a debate, not as the Labour Party, the Conservative Party, the Liberal Democrats, and the independents, but as members of the Green Party. This is a failure of UK politics and democracy.

Today, as the changes to the Draft bill stipulated, Lord Adair Turner of Ecchinswell, the chair of the committee, wrote to the Environment secretary that, as the Independent reported, ‘The UK should cut its greenhouse gas emissions by at least 80 per cent by mid-century’. What a surprise. So what lay behind the decision to increase the UK’s target from 60% to 80%? The letter said:

The Committee looked at whether the UK’s current target for a 60% reduction in CO2 emissions by 2050 was likely to be sufficient given what we know about the latest developments in climate science. This target was recommended in the report by the Royal Commission on Environmental Pollution (RCEP) published in 2000. Since the report, however, new information has become available. This suggests that the dangers of significant climate change are greater than previously assessed which argues for larger global, and thus UK, reductions.

This gives the impression that the scientific basis of the bill was the 2000 Royal Commission on Environmental Pollution(RCEP). But curiously, there is no mention of the RCEP in the March Draft Climate Change Bill. The report is, as you’d expect it to be, based principally on IPCC AR4, and the Stern report. The figure of 60%, it seems, stems from a 2003 White Paper.

The Government would therefore like to enshrine the commitments in the Energy White Paper 2003 to reduce CO2 emissions by 60% on 1990 levels by 2050; and to achieve “real progress” by 2020 (which would equate to reductions of 26-32%) towards the long-term goal within a new legal carbon management framework (outlined in Section 5).

This White Paper does mention the RCEP2000 report.

We therefore accept the Royal Commission on Environmental Pollution’s (RCEP’s) recommendation that the UK should put itself on a path towards a reduction in carbon dioxide emissions of some 60% from current levels by about 2050.

The October ’07, amendments to the bill called Taking Forward the UK Climate Change Bill gave the CCC its responsibilities to check the 60% figure:

Bearing in mind however the weight of scientific evidence before the Committee that a target of more than 60% is likely to be necessary, we believe that as soon as possible after it is established, the Committee on Climate Change should review the most recent scientific research available and consider to what extent the target should be higher than 60%, with a view to making recommendations on the appropriate amendment to the long term target.

The very next paragraph mentions the RCEP:

The figure of 60% was arrived at by the Royal Commission on Environmental Pollution (RCEP) in 2000, following extensive research and analysis. We recognise the significant recent advances in scientific understanding, but also note that no comparable crosscutting research and analysis has been done since the RCEP report and there is no broad consensus around what the figure should be, if it is not 60%.

If the figure of 60% was based on the 2000 RCEP report, why was it not mentioned in the March Draft Bill? And if there has been no process since 2000 to determine what the level of CO2 emissions reduction should be, how can any figure be determined as appropriate?

It is clear that the October ’07 document created an opportunity for the CCC to reject 60% in favour of 80%. It might as well have said ‘the figure of 60% has given the opposition an opportunity to embarrass us, therefore, we have set up the CCC to report back in one year that the figure ought to be 80%’.

Last month, Lord Adair Turner was appointed chair of the Financial Services Authority (FSA), the body which regulates the financial sector. It seems that the world’s problems are on his shoulders. But wouldn’t it be better to make the economic and ecological crises that we face the subject of political debate, rather than appoint people like Turner to make ‘expert’ decisions. After all, the FSA was unable to prevent today’s current economic problems from manifesting.

It is also interesting to note that Turner was until recently, a trustee of the World Wildlife Fund (WWF) and a member of the Advisory Board of Climate Change Capital, a firm offering services as an ‘investment manager and advisor specialising in the opportunities created by the transition to the low carbon economy’. As a member of the Advisory Board, he ‘assist[ed] senior management to develop the group’s medium-term strategy, extend the company’s network and evaluate opportunities’.

Had Turner emerged from an advisory role at a company lacking such spotless ethical credentials – let’s say, for example, one such as Exxonmobil – and had he suggested that 60% was a bit too strong a figure, and perhaps 40% was a better one, would there ever be an end to claims that this process was corrupt and undemocratic?

Yet here we see a man, with associations to commercial interests in the implementation of environmental policy (contrast with the speculation that surrounds sceptics who have worked with the oil industry), with a clear commitment to the environmental ethics espoused WWF, who is responsible for determining the UK’s policy over the next 45 years.

Working alongside Lord Turner on the CCC are:

Sir Brian Hoskins - a dynamical meteorologist and climatologist at the University of Reading and Imperial College London. He worked on the Stern review of climate change, and Director of the Grantham Institute for Climate Change, which aims ‘To be a world-leading institute generating and communicating the highest quality research on climate-driven change and translating this into sustainable technological, political and socio-economic responses’. 

Lord Robert May - erstwhile President of the Royal Society, and a climate change alarmist second to none. As we have reported many times, Lord May’s involvement in the climate change debate has generated more heat than light.

Professor Jim Skea – Research Director at the UK Energy Research Centre and former Director at the Policy Studies Institute and the Economic and Social Research Council Global Environmental Change Programme, and contributor to the Stern Review.

Dr Samuel Fankhauser - a visiting fellow in climate change economics at LSE, and Managing Director of IDEAcarbon, the parent company of which Sir Nicholas Stern is Vice-Chairman, and ‘an independent and professional provider of ratings, research and strategic advice on carbon finance. Our services are designed to provide leading financial institutions, corporations, governments, traders and developers with unbiased intelligence and analysis of the factors that affect the pricing of carbon market assets.’

Professor Michael Grubb - Chief Economist at the Carbon Trust, a Government-funded private company, and a Senior Research Associate, Faculty of Economics at the University of Cambridge.

Amongst these men are very clear interests in climate change policy, with lots to gain, both professionally, and economically from climate change policies. In other words, just as the political process failed to subject environmental ideas to scrutiny, so too does the outsourced task of determining our future.

This is not to say there is a conspiracy here, nor that this is corrupt. Yet having such an interested old boys club is clearly corrupting of the process by which policies that affect all our lives are determined. Lord May has made a hell of a lot of noise in recent times about the existence of a ‘well funded denial machine’ doing the work of the oil industry. Yet as we have shown, this ‘well funded’ effort is the beneficiary of a tiny fraction of the quantity of cash available to, for example, the Carbon Trust (£70+ million / year), whose aim is ‘to accelerate the move to a low carbon economy by working with organisations to reduce carbon emissions and develop commercial low carbon technologies’. And it is likely to be a lot less than the returns seen by IDEAcarbon and Climate Change Capital, when their services are made more profitable by climate change policies.

The problem is simply that there is no opposition allowed into this process, either to question the science, or the way the science informs the policy decision, nor to ask whether emissions reductions is the best solution in terms of the interests of the UK population, or throughout the world. Worst still, the shrill complaints made about people who challenge climate orthodoxy by Bob May effectively close down any possibility of debate. Indeed, on at least one occasion, we have found Bob May making stuff up about ‘deniers’. No, let’s call it what it is… Bob May is a liar. And he lies – while accusing others of lies, and conspiring – seemingly in order to secure his position in what is clearly a climate change aristocracy, not only in name.

So what is behind the decision made by the group that 80% is the right target? What ‘new information has become available’ which makes ‘the dangers of significant climate change greater than previously assessed’?

The CCC’s letter to the Environment Secretary says,

Firstly, we know more about how rising temperatures will reduce the effectiveness of carbon sinks: the science now tells us that for any given level of emissions, concentrations of greenhouse gases (GHGs) and temperatures will increase by more than the RCEP report anticipated.

The principal basis of climate change alarmism has always been that positive feedback mechanisms will produce ‘runaway climate change’. As the 1992 UN Framework Convention on Climate Change(UNFCCC), to which the UK is committed, says, lack of understanding should not be used as a reason not to act. This embodiment of the precautionary principal means that, regardless of the state of knowledge in an area of climate science, the response is the same. It makes no difference how much is understood. The effect of new research emerging since the 2000 RCEP recommendation therefore ought to make no difference to policy. What matters is the ‘what if…’, not the ‘what’.

Pedantry aside, it is hard to work out what this ‘new understanding’ is, and what its effect on the outcome of global warming actually is. No new research is cited. Although we know more about carbon sinks, maybe, that they will respond to increases in global temperature in a way which is worse than previously thought should only be understood to inform a policy decision in the context of the total effect of climate change and society’s vulnerability to it.

The chapter relating to global temperature and sinks in the RCEP 2000 report uses a graph to consider the effect of CO2 on the atmosphere, under several different scenarios relating to CO2 emissions policies (left figure). The IPCC do the same thing in their Assessment Reports, the most recent (AR4, 2007) is also shown below, for comparison (right).

As the graphs show, if the RCEP 2000 report reflected the best available knowledge, then the understanding which has emerged since then does not, as has been reported, indicate that the situation is ‘worse than previously thought’. In fact, the IPCC 2007 graphic is far more optimistic than RCEP2000. So what basis is there for extending the 60% figure?

Secondly, unlike the authors of the RCEP report we had the benefit of models that included the warming effects of gases other than CO2. The Intergovernmental Panel on Climate Change Fourth Assessment Report (IPCC AR4) shows that, for the stabilisation level outlined by RCEP, non-CO2 gases will increase the equivalent CO2 concentration in the atmosphere by approximately 100ppm.

This is not true. The RCEP report said ‘The concentration of methane has also been increased by human activities, more than doubling over the last 200 years. It is thought to contribute about one-fifth of the current enhancement in the greenhouse effect.’ This claim was cited to
IPCC (1996b) The Science of Climate Change 1995. Summary for Policymakers, page 8. Curiously, the SPM referred has only 5 pages, as far as we can tell, so it is hard to establish what the basis was.

Whatever it was, clearly methane at least was part of the RCEP’s calculations, and the IPCC AR4 gives a good indication that in 2000, we had a fairly good understanding of the contribution other gasses make to global warming. The IPCC’s 1995 report (SAR) gives methane (CH4) a 100 year ‘global warming potential’ (GWP ) figure of 21 (relative to carbon dioxide = 1). The 2007 report gives CH4 a global warming potential of 25. Not a massive increase, especially as the SAR gave Nitrous Oxide a GWP of 310, downgraded in 2007 to 298. As the basis for RCEP, IPCC SAR includes nearly all the greenhouse gasses included in AR4, and upgrades some, and downgrades others.

But this is pretty meaningless anyway. A DEFRA report published earlier this year showed that by 2006, ‘Methane emissions, excluding those from natural sources, were 53 per cent below 1990 levels’ and that ‘Nitrous oxide emissions fell by 40 per cent between 1990 and 2006.’

The UK clearly has reduced its CH4 and N2O levels substantially. What is more, the claim that new evidence has emerged with respect to the global warming potential of other greenhouses gasses is barely credible. The RCEP had access to the data relating to non-CO2 GHG’s GWP in 2000, which is almost identical to today’s. Therefore, there is no good reason to make this ‘new information’ the basis for increasing the target to 80%.

Thirdly, the reduction in the summer Arctic sea ice in recent years has been greater than predicted by any of the models. Also the summer melt of the Greenland ice sheet has accelerated. These observations have led to new concerns about the pace of global warming, particularly as it affects the Arctic and possible rates of sea level rise.

Presumably, this statement is based on the single paper published last year by the National Snow and Ice Data Centre (NSIDC). And let’s remember that such evidence does not bolster the claim that global warming is worse than previously thought, just that Arctic summer ice melt has been greater than the models predicted. If the models used to base policy on are wrong, then they are just wrong, and no further conclusion can be safely drawn. Wrong is wrong. It does not mean that things are ‘worse’ than expected’, it just means that the expectations and assumptions were wrong. And they still are wrong. Furthermore, there are only 30 years worth of data on which to base these models, from an area which is necessarily one of the most changeable and dynamic regions on earth. We know for example, that parts of the Arctic in the early C20th saw rates of change not dissimilar to, and possibly greater than today’s.

This argument clearly also rests on the news story of the year. But as the NSIDC told us, the record low 2007 ice extent was not the result of global warming, but principally a ‘perfect storm’, as part of natural variation. In much the same way, the unusually hot 1998 has not been attributed by scientists to anthropogenic climate change, but to natural variation. This is the same natural variation which was used by the Hadley Centre to explain its failure to accurately predict the temperatures of 2007, and the cold weather which has followed the La Nina event.

The ‘possible rate of sea level rise’ referred to has been substantially reduced by the IPCC from their previous estimates, and the range between upper and lower estimates narrowed. This has caused something of a split in the climate change community, with the increasingly lunatic James Hansen claiming that the IPCC estimate is dangerously conservative. This surely makes Hansen as remote from the ‘consensus’ as any ‘denier’, yet he is still celebrated by environmental activists, and we can assume, the CCC.

Again, the reasons given by the CCC for increasing the target to 80% lack substance.

Fourthly, it is now realised that atmospheric pollution has probably masked some of the greenhouse gas warming that would have occurred. As air quality improvements continue to be achieved, so even more warming can be expected.

We look forward to seeing the evidence for this statement presented in the report proper. It was only this year, for example, that a major and well-publicised (albeit for the wrong reasons) study found that components of atmospheric pollution are responsible for up to 60% as much warming compared to CO2. That’s not to say that other components (eg, sulphates) don’t have a cooling effect – they do – but the net effect of all these pollutants remains very poorly understood.

Fifthly, there is now a greater understanding of the range of potential climate change impacts, their regional variation and the possibility of abrupt or irreversible changes. These analyses also suggest greater damages once temperature increases become significant.

Ah yes, it’s always a good idea to squeeze ‘abrupt and irreversible’ into alarmist reports on climate change. But, as we’ve shown before, the phrase’s currency owes more to silly newspaper articles about AR4 than it does to AR4 itself.

Finally, latest global emission trends are higher than those anticipated in most IPCC scenarios, largely because of higher economic growth and a shift towards more carbon intensive sources of energy.

Higher economic growth? How can a man who chairs the Financial Services Authority claim that we are experiencing ‘higher economic growth’? Secondly, ‘higher economic growth’ than anticipated means greater resilience to climate change, as is shown by the difference in outcomes between ‘natural’ disasters experienced in the industrialised world, and those in the developing world. Thirdly, a ‘shift towards more carbon intensive sources of energy’ means not burning wood, and dung, which contribute to deforestation and poor health. In other words, it represents progress. As a reason for increasing the UK’s cut of CO2 emissions it’s also rather poor, because the 60% figure and the targets outlined by Stern and Kyoto, for example, are predicated on the principle that emissions from developing nations will increase. These factors could therefore equally be given as reasons not to increase the UK’s target.

It seems that the CCC’s recommendation owes less to climate science than it does to climate headlines from the last 18 months. Headlines which, almost without fail, have painted a far more drastic and alarming story than the science warrants. ‘Sceptics’ are often criticised for placing emphasis on single studies whose findings fall outside of the opinion of the consensus, represented by the IPCC reports. Yet the CCC seem to have based their recommendation on whatever alarmist literature they can find.

The broader view of future climate in 2007 is arguably more positive than it was in 2000. Yet the CCC want us to believe that things are ‘worse than previously thought’ in order to justify an increase of the UK’s emissions reduction target. To do this, it waves scientific factoids around in a process which owes more to some kind of pagan ritual than to good science. Like the protesters at last year’s Climate Camp who turned pages from a climate change study into gloves, and marched under the slogan ‘we are armed: only with peer-reviewed science‘, the CCC seemingly wave science around to legitimise policies which will have far-reaching effects on society, and to justify the existence of a political elite which is increasingly estranged from the public.

This voodoo science ritual is being used to arm politicians with something that they desperately lack: direction. The climate change aristocracy now sit and dictate what the terms, values, and principles of UK politics ought to be. And as their influence increases no doubt, so do their cash returns. While their influence extends, so the opportunities to challenge environmentalism through the political process diminishes. Now all a politician has to do to answer critics of environmental policy is say that an ‘independent’ committee has produced its findings.

Politics: available in any colour, as long as it’s green.

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