Peers win concession on offset limits in climate bill

Allegra Stratton, political correspondent

The Guardian, Tuesday November 18 2008

The government last night moved to tighten its commitment to the 80% reduction of carbon emissions by the year 2050, introducing a safeguard that a limit be placed on reductions achieved by buying international offsetting credits.
During what will probably be the last few days of scrutiny before the climate change bill becomes law, the government made concessions in the House of Commons and the Lords, surprising green campaigners by tabling a further amendment to the energy bill - increasing from three megawatts to five the size of renewable projects that can benefit from its new feed-in tariffs.
The government's move to impose a limit on carbon emission reductions achieved abroad came in response to criticism from a cross-party group of peers. Theywere concerned that the UK's commitment to an 80% reduction in carbon emissions by 2020 - recently increased from 60% - would be met by purchasing international offset credits, raising the possibility of no industrial behaviour change.
In a letter to a newspaper yesterday the peers, including Labour lords Whitty and Puttnam, and both opposition spokesmen on energy and climate change Lords Taylor of Holbeach and Lord Teverson, said: "Relying sufficiently on emission reductions which take place overseas could influence long-term investment decisions here in the UK, particularly in the power sector, locking the country into high carbon economy for years to come, when the overwhelming need is to tackle climate change, develop clean technologies and benefit from the growth in green jobs."
The amendment says it will set a limit on carbon units it would be allowed to buy from abroad after "taking into account" the advice of the independent Committee on Climate Change.
The government has also fortified its plans for feed-in tariffs, which will be debated by MPs when the energy bill returns to the Commons today - a measure that will help it meet the targets in the climate change bill.
Friends of the Earth said the tariffs were not being introduced speedily enough. Labour backbencher Alan Simpson, the shadow energy secretary Greg Clark and Liberal Democrat Steve Webb have tabled an amendment calling for the government to introduce the tariffs within a year.