Andrew Muir
North Down · Alliance Party · Northern Ireland
“Thank you very much, Mr Deputy Speaker. As Minister, I am grateful to the Chair of the Agriculture, Environment and Rural Affairs Committee and to Members from all sides of the Chamber for their consideration of the Bill and their contributions to the debate, which have been valuable and useful.”
“I will write to you with regard to your query. <BR /> <BR />The other issue, as I said, is reporting pollution incidents so that they can be effectively investigated. There is a duty on everyone to do that promptly.”
“Aquaculture provides real economic opportunities, and the Bill will help ensure that those opportunities are realised responsibly without compromising the environment. Importantly, the Bill includes transitional provisions so that existing licences can continue seamlessly as aquaculture licences, with their conditions unchanged.”
“That is not about being punitive for its own sake; it is about ensuring that the legal framework reflects the true value of our natural resources and the importance of protecting them for future generations.”
“<BR /> <BR />On strengthening the regulation of inland waters, the Bill modernises long-standing powers under the Fisheries Act (Northern Ireland) 1966, ensuring that they are fit for today's environmental and industry challenges. That matters because fisheries management today goes far beyond simply catching fish.”
“<BR /> <BR />A full regulatory impact assessment of the financial impact has been completed. It concluded that the Bill does not introduce significant new financial burdens and that any costs are outweighed by the long-term benefits.”
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“All parts of Northern Ireland produce good produce for us to enjoy. <BR /> <BR />As we move towards the conclusion of the debate, we can, hopefully, consider how to go forward from Second Stage. The issues raised in the Chamber reflect the points raised by stakeholders during the consultation. As I said, I met mushroom growers and heard first-hand the case for the FVAS, with stakeholders setting out the scheme's strengths and its comprehensive nature, including the environmental and climate change benefits. They also noted its potential for the development of other horticultural sectors. <BR /> <BR />In my opening speech, I reiterated my aspirations for the sector more generally. I am passionate about seeing its growth in Northern Ireland.”
“That probably demonstrates why we want to bring the legislation through. The Committee can potentially tease that out at Committee Stage to help us to form judgements on future support so that we can target that support and ensure uptake. It is regrettable that there was not the same level of uptake in some industries; perhaps that was because of the administration involved and the need to follow certain procedures to access it. I am keen to see it happen. I have been in County Armagh a couple times. I got apples and turned them into apple crumble. Actually, I will admit to the House that it was my mother, not me, who made the crumble, and she did a good job. I hope to have the opportunity to do that again. Last Wednesday, I was able to enjoy an excellent apple crumble at Annagh Social Farm in County Fermanagh.”
“Patsy pointed out that this is one of the consequences of Brexit, which it is. The point is that my approach is different from that of others, because I am focused on solutions. I see what is here and the issues that have presented themselves since the referendum in 2016. We could talk about the problems — we could talk quite a lot about that — but we are in public office to work through those issues pragmatically. That is what I seek to do, because we owe it to the people of Northern Ireland. Northern Ireland voted to remain, but we left the EU, so we will work through the issues arising from that. <BR /> <BR />There was one last point that was raised — I hope that I have missed nothing — and there was dialogue between John and Robbie about the uptake of previous schemes, particularly in relation to apple growing.”
“I will have that engagement, and I will not be found wanting in that, because it is absolutely key.”
“As Michelle outlined, engagement on that with stakeholders will be crucial. I found my engagement with stakeholders to be very productive. That took place not just in my office, but while I was out and about visiting, particularly the apple industry in County Armagh, for which we are famous.”
“The Scottish Parliament and the Senedd essentially have a baton race, from one mandate to the next, progressing legislation and taking things forward. We have not been able to do that in Northern Ireland because of stop-go government. We need to understand that that has implications, not just for public services but for legislation and policy development in Northern Ireland. I will continue to highlight that. <BR /> <BR />On the concerns that you raised, Patsy, on the funding and whether it will stop, hopefully I have used a form of words that provides the necessary level of assurance. There is a need for us to be able to give a bit more clarity on those issues, and the review is under way. It should report towards the end of this year, subject to staff resources. After that, I will take some time to reflect on next steps.”
“That is why I have written to the UK Government. I have also engaged with the Economy Minister, who is taking the lead on the issue: we are seeking to get the UK Government to listen to the concerns. There are certain sectors — for example, the mushroom sector — in which automation, which is what the UK Government desire that we pursue, is not as practical as it is in others. That is why I will continue to do the work on that, and I hear the concerns about seasonal workers. <BR /> <BR />Patsy McGlone raised the issue of a more comprehensive agriculture Bill. Initial scoping is under way on that. It is about giving the Department the necessary powers to take forward the interventions that we need. If you give me time to go through that process, we will see what steps we can take after that. It comes back, again, to stop-go government.”
“I am aware of the developments on where DEFRA is going on that, which is one of the reasons why we need to get the legislation progressed. We need to support our local growers in Northern Ireland. <BR /> <BR />The other issue that the Chair of the Committee raised was on seasonal workers and the worry that there could be a double whammy in the pressures that we face in that respect. Hopefully, in my opening remarks, I gave a necessary level of assurance on the support that I want to continue to give. It is a sector that is important, and it is one that I wish to see grow for many different reasons, particularly environmental ones. In addition, it produces food that we export beyond Northern Ireland to great fame, and we should encourage that. I am very aware of the concerns about the impact on seasonal workers.”
“I am grateful for Members' contributions to the debate. I will try to respond to the key points that were made. I will also check the Hansard report and, where appropriate, follow up with individual Members in writing if I miss anything inadvertently, as I do not want anyone to feel left out. <BR /> <BR />Robbie, as Chair of the Committee, raised a number of legitimate points. One of them was on a potential liability arising from changes that DEFRA might make in England. Under the current rules, claims could come from POs that are headquartered in Northern Ireland. However, some of those growers are located elsewhere in the UK, so DAERA would have a duty to support those POs to the potential detriment of local growers or other agriculture support.”
“Clause 3 provides that the assimilated law governing the agri-food promotion schemes can be modified by regulation, again by virtue of clause 4, by draft affirmative regulations. <BR /> <BR />In summary, the Bill, if enacted, will make support under the FVAS discretionary and empower my Department to amend both the FVAS and agri-food promotion schemes so that they align with post-EU local policy. I commend the Bill to the Assembly.”
“I now want to take a few minutes to set out in a little more detail the key clauses of the Bill. Clause 1 amends article 32 of the assimilated CMO regulation in order to remove the statutory requirement to fund all eligible FVAS claims. It also provides transitional provisions for existing FVAS programmes. Clause 2 provides that assimilated law governing the FVAS can be modified by regulation and, by virtue of clause 4, only with the approval by resolution of the Assembly, that is, by draft affirmative resolution. Clause 2 also includes an enabling power to make regulations regarding reviews of departmental decisions relating to aid that is necessary as a consequence of support under the FVAS becoming discretionary.”
“<BR /> <BR />I look forward to seeing the conclusions of the ongoing review, and I again give my assurance that I will consider it in the context of wider support for the horticulture sector in making future funding decisions. The Bill has therefore been drafted in line with the consultation proposals, and it is my hope that it will reach Royal Assent next spring, before the end of the current programmes.”
“<BR /> <BR />The comments received on the FVAS reflect its importance to the local mushroom sector, with calls for the scheme to continue after the current programmes end in 2025. Stakeholders also detailed the changes that, they believe, should be made to the scheme. While it is vital that I can prioritise funding where it can best be used, I again reassure Members, as I have sought to reassure stakeholders, that I am aware of the importance of the support provided under the scheme over many years. By seeking to make support discretionary, I am not signalling any plans to end support for the sector here; rather, the Bill clearly provides the scope to allow for the scheme's future development so that it can best reflect the needs of Northern Ireland, subject to the outcome of the ongoing review and, of course, the available budget.”
“While Northern Ireland benefited from the scheme in the past, there are currently no live projects. However, the Bill includes powers so that any future promotion schemes delivered under the legislation could be tailored to best meet local need, subject again to the review of the legacy scheme and future policy development on support for food promotion. <BR /> <BR />Before I discuss the details of the Bill, I thank those who responded to the consultation on the policy proposals earlier this year and those who had ongoing engagement with officials on the wider review. I am grateful to industry representatives for briefing me over recent months on the challenges for the mushroom sector and on the value of the FVAS to that sector.”
“Therefore, the new powers will ensure that the scheme can be developed to best meet local need. That has been welcomed by stakeholders, given that it will allow for improvements to the scheme in the future, including its alignment with support elsewhere, if appropriate. <BR /> <BR />The third thing that the Bill will do relates to EU-derived legislation that provides support for information on and promotion of agricultural products. Under the legislation, not-for-profit organisations could apply for EU support for promotional campaigns, primarily in third countries. The aim is to open new market opportunities for farmers and the wider food industry and help them to build their existing businesses and sell products in an increasingly competitive global marketplace whilst delivering jobs and good green growth.”
“It will now be for the Executive to agree funding for agriculture as part of the Budget exercise. Therefore, the first thing that this short technical Bill does is make support under the FVAS discretionary so that Executive Ministers have the scope to fully decide on funding priorities and ensure that support is available where it provides best value for money and best meets local needs. <BR />Importantly, the second thing that the Bill will do is provide the power to amend the assimilated law governing the FVAS. By its very nature, that unique type of legislation has not kept pace with changes elsewhere, including in the EU, that seek to support productivity while contributing to protecting and enhancing our environment and tackling climate change.”
“I met representatives of the local mushroom sector, which currently avails itself of support under the FVAS, and I sought to reassure them that, while I have not reached any decisions on the way forward, I have no plans to pull the rug from under them when it comes to support. We need to let the current policy review run its course and then carefully consider the way ahead in the context of wider support to the horticulture sector. <BR /> <BR />Without the Bill, my Department will have an ongoing legal obligation to fund eligible claims under the existing legacy FVAS. Members will be aware that the autumn Budget statement will see funding for agriculture, including the FVAS, which was previously earmarked by His Majesty's Treasury, baselined within the resource funding provided to the Executive for 2025-26 and beyond.”
“To that end, my officials are continuing the development of the farm support and development programme in co-design with the Northern Ireland agriculture industry, including the horticulture sector and other key food and environmental stakeholders. Officials are also reviewing existing support under legacy EU schemes, including the FVAS, to evaluate what has been delivered and whether better targeted support could be provided in the future. <BR /> <BR />In addition, I am delighted that the Executive have recently agreed the food strategy framework, which sets the long-term direction to help to position Northern Ireland as the home of sustainable food. Increased availability of locally produced, sustainably grown fruit and vegetables will continue and will contribute to that ambition.”
“Since Brexit, when the governing legislation transferred to UK law in what is now known as "assimilated law", the legal obligation to match-fund eligible claims for POs headquartered in Northern Ireland has, since mid-2020, fallen to DAERA. <BR /> <BR />Before I discuss the need for the Bill, I want to say that locally grown fruit and vegetables play an important role in the rural economy of Northern Ireland. However, it is my firm belief that the sector has the potential to grow and develop further for the benefit of our health, economy, food security and environment, including with respect to the decarbonisation agenda. I am, therefore, committed to fostering the sustainable growth of horticulture as part of our transition to more sustainable agriculture.”
“As part of the CMO, farmers and growers are incentivised to come together to form producer organisations (POs), which allows them to strengthen their position in the supply chain and increase their competitiveness. In addition, POs provide a mechanism for promoting environmentally sound cultivation practices and production techniques, including climate change mitigation. <BR /> <BR />While POs can be set up in a range of sectors, financial assistance is payable in the horticultural sector under the fruit and vegetable aid scheme, which supports the operational programmes that meet the regulatory requirements and fit within a UK strategy and environmental framework. Operational funds are part-financed by contributions from PO members, and, prior to EU exit, match funding came from the EU.”
“I have brought this short Bill to the Assembly to provide for changes to two legacy EU support schemes, namely the fruit and vegetable aid scheme (FVAS) and the agri-food information and promotion scheme. The schemes have their roots in when the UK was in the EU, and, if they are to reflect post-EU policy development, new powers will be needed. If I may, I will first provide some background. <BR /> <BR />Under the EU common agricultural policy (CAP), the common organisation of the markets in agricultural products regulation (CMO) provided market support tools and aid schemes to certain sectors and encouraged producer cooperation.”
“<BR /> <BR />The other issue was about the desire to move forward from the Adjournment debate and how we do that. We need to move forward together; that is critical. I am happy to agree to the request from Miss McIlveen to have a meeting with fishers in the new year, if that is OK. We can turn the focus to be entirely on solutions, because we need to be solutions-focused to give people hope for the future. <BR /> <BR />I thank everyone for their contributions today. Hopefully, collectively, we can work together to create a better outcome for the people of Northern Ireland, because that, I think, is why we are all here.”
“For the issues that I have responsibility for, I am committed to working with the industry to develop solutions that will make our fishing industry globally competitive and sustainable. I recognise that it will take significant time, investment and commitment and will mean working in partnership to make the adjustments that are needed. I wish to see delivery for the industry in Ardglass and, indeed, across all our fishing ports and harbours in Northern Ireland. <BR /> <BR />Two issues were raised in the debate. The first was about the circular economy, which Robbie Butler raised, and I got that presentation when I was in Kilkeel. There are real opportunities around that, and I was really encouraged to see that. I think that the Committee has also been briefed on that.”
“The outcome of the consultation was to reduce the size of the Isle of Man closed areas and reduce the impact on the Northern Ireland fleet. The impact of the closures is still being monitored. <BR /> <BR />To conclude, I thank Members for their contributions and Mrs Mason for securing the Adjournment debate. When I took up my ministerial post in February this year, I said that I would not shy away from my responsibilities to assist the industry in tackling key issues that may prevent a more economically and environmentally resilient industry from developing over time and being one that we should be proud of. <BR /> <BR />Some of the issues raised today are the responsibility of the UK Government, and I will continue to take every opportunity to ensure that consideration is given to our fishing industry.”
“I note that the Department of Environment, Food and Agriculture in the Isle of Man has recently introduced spatial management measures in some of its waters to deliver co-benefits in sustainable fisheries, blue carbon research and marine conservation. I am aware of the closure of bottom-towed fishing methods in Isle of Man territorial waters and the potential impact that it is having on our nephrops fleet, many of which fish out of Ardglass. In that regard, I have met the Minister responsible for fisheries in the Isle of Man to highlight the issues for our fleet and to encourage collaboration in managing areas of mutual interest in the Irish Sea. Officials from my Department and industry representatives have lobbied the Department of Environment, Food and Agriculture in the Isle of Man.”
“My officials have reviewed the herring advice with the Agri-Food and Biosciences Institute (AFBI) and are engaging with the Northern Ireland fishing sector and DEFRA. The Irish Sea herring fishery has a good reputation for sustainability. It is a very important fishery for the local economy. I am seeking a position in the current EU-UK coastal negotiations to ensure that the stock is fished at a sustainable level, whilst minimising the economic impact on Northern Ireland fishers and local seafood processors based in Ardglass and other fishery harbours. <BR /> <BR />The Isle of Man was talked about during the Adjournment debate.”
“I am committed to working with the fishing industry to develop alternative workforce solutions for the fisheries sector that are aligned with the draft Programme for Government and provide opportunities to grow a globally competitive and sustainable economy. I talked earlier about the suggestions that were helpfully raised by Michelle McIlveen. <BR /> <BR />I will now address coastal state negotiations and Irish Sea herring. The annual coastal state fisheries negotiations are currently taking place. For Irish Sea herring in 2025, I have been informed that International Council for the Exploration of the Sea (ICES) advice provides two options for headline advice. One is a precautionary approach of zero catch advice, and the other is using the maximum sustainable yield approach.”
“I will continue to press the Home Secretary and other relevant Ministers to review the current policy, and my officials will continue to liaise with Home Office and Border Force officials to discuss flexibility and alternatives to current migration policy. <BR /> <BR />Access-to-labour challenges are being faced by sectors across the economy in Northern Ireland, and so it has been agreed that my officials will work in collaboration with Department for the Economy officials to develop an immigration policy position for the Executive to consider. I have corresponded with the Economy Minister on that, and it is an important step forward. It is important to emphasise that the challenges are the result of policies of the UK Government and that we must explore alternative solutions that are within our devolved powers.”
“It is particularly concerning that nephrops fishing is the most adversely affected, as it is the most economically important fishing sector in Northern Ireland, worth around £20 million in landings. It could have a major economic impact on coastal communities dependent on the fishing industry, including job losses and reduced income. Some of those communities rely heavily on the fishing industry for employment; indeed, the fishing industry is part of the community. <BR /> <BR />I have written to the Secretary of State for Environment, Food and Rural Affairs to reiterate the issues being faced across the agri-food sector in Northern Ireland in relation to immigration policy. A response was received from the Secretary of State on 29 October this year in which Mr Reed rejected the policy changes put forward for consideration.”
“<BR /> <BR />On labour shortages, I recognise that Northern Ireland's catching and processing sectors have faced several challenges in recent years, one of which has been securing labour. Industry representatives have indicated that they rely heavily on the employment of non-EU workers and the skilled worker visa. I have been contacted by Northern Ireland fishing sector representatives on several occasions about the current impact and potential further impacts of the skilled worker visa policy on the Northern Ireland fish catching and processing industries. <BR /> <BR />I am aware of the Seafish economic impact assessment report on the impact that the proposed increase to the skilled worker visa salary threshold could have on the UK seafood sector and on Northern Ireland in particular.”
“I have asked my officials to consider alternative options that provide investment on a scale that is affordable and enables the harbours to be modernised. That would include installing the infrastructure that will be needed to support the decarbonisation of the fishing sector and ensure that harbours are resilient to the impacts of climate change. <BR /> <BR />Further to that point and the point that Michelle McIlveen raised about future funding through different streams around the areas that she outlined, I will consider that and take it back after this debate because it is a useful contribution towards the challenges that we face. I will actively take that forward with officials.”
“During that debate, I gave a commitment to work with the sea fishing sector. Further to that, I visited the harbours in Portavogie, Ardglass and Kilkeel. <BR /> <BR />On the harbour development programme, when I visited Ardglass, Kilkeel and Portavogie earlier this year, I recognised the need for further investment in ports, despite the extremely challenging budget position. Unfortunately, the budget allocated to my Department for this financial year was significantly less than the bids, and priority had to be given to meeting statutory obligations. Consequently, there was, unfortunately, no additional budget to take forward new work such as the harbour development programme, where, due to recent inflationary pressures, the projected cost of delivery has increased from £98 million to £143 million.”
“I thank the Member for South Down Mrs Mason for bringing the matter to the Floor of the House this afternoon by way of an Adjournment debate. I also thank the fishermen in the Gallery for making the journey to the Northern Ireland Assembly. I appreciate their making that journey and giving their time to hear us discuss what are critical issues in South Down and more broadly in our fishing industry in Northern Ireland. I will attempt to address as many of the issues that Members have raised during the debate as I can, and I will respond to those to the best of my ability. <BR /> <BR />Members will be aware that, in the early days of the mandate, the Member for Strangford Miss McIlveen brought a motion to the Assembly on the fishing industry and, in particular, capital investment.”
“<BR /> <BR />In order that we in Northern Ireland, along with the rest of the UK, can continue our efforts to reduce greenhouse gas emissions through the effective implementation of UK ETS, we need to pass the Order. Accordingly, I commend the Order to the House.”
“The tightening of the cap will not result in any additional administrative burdens for participants. <BR /> <BR />The ETS is one of the most effective emissions reduction interventions: it has reduced Northern Ireland greenhouse gas emissions in sectors within its scope by 52% since the inception of EU ETS in 2005. Further amendments to expand the scope of UK ETS to other industrial sectors, such as waste incineration and domestic maritime, to increase the effectiveness of the scheme and further contribute to UK and devolved Administrations' net zero climate objectives are subject to ongoing and planned UK-wide consultation exercises.”
“The Order will increase the climate ambition of the UK ETS, as it aligns the emissions cap of Northern Ireland with that of Scotland and Wales and with UK-wide net zero objectives. <BR /> <BR />The UK ETS has, however, already effectively implemented a net zero cap from January 2024, as I referred to in my opening remarks, as amendments to the UK ETS auctioning regulations have ensured that the number of allowances available for auction have been in line with the net zero-consistent trajectory from the beginning of this year. That provides businesses and participants with certainty to be able to plan their decarbonisation strategies. In addition, the UK ETS Authority has taken action to smooth the transition for participants to the new net zero-aligned cap.”
“I thank the Members who contributed to the debate. Before I sum up, I will say that I look forward to going to Fermanagh and South Tyrone tomorrow to visit Encirc. I think that we all agree that it is a good example of the circular economy and decarbonisation in action, so I look forward to going there. It is just one business that I will be visiting tomorrow while I am down in beautiful Fermanagh. <BR /> <BR />The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 will implement a net zero-aligned emissions cap and make various technical and operational amendments to the UK emissions trading scheme. The amendments will not impact on Northern Ireland's electricity-generating installations, which continue to participate in the EU scheme under the terms of the Windsor framework.”
“<BR /> <BR />The Order will embed a UK-wide net zero emissions cap in the 2020 Order and will help to improve the effective operation of the UK ETS. That will help to ensure that the scheme continues to play its part in incentivising greenhouse gas emissions reduction in Northern Ireland and across the UK. I accordingly commend the draft Order to the House.”
“<BR /> <BR />The UK ETS Authority has recognised the potential impact of the reduction in availability of allowances on participants and has taken action to smooth the transition to the net zero cap. That has been facilitated by bringing £53·5 million in unallocated allowances from previous years to market between 2024 and 2027 to ensure, without affecting the climate ambition of the scheme, that there is no sudden drop in allowance supply as a result of the transition to the new cap. That ensured that there has been no sudden increase in carbon prices as a result of the cap reduction, which has been in place under the Finance Act since 1 January this year. I will work with colleagues across the UK ETS Authority and as part of the net zero inter-ministerial group to further consider market stability policy.”
“Along with the other UK Administrations, my Department is considering further development and expansion of the scheme as part of ongoing and planned UK-wide consultation exercises. The changes in the Order are the result of agreed policy. <BR /> <BR />A UK-wide impact assessment, published alongside the main Government response to the 2022 consultation, reflects the position of all Administrations across the United Kingdom, including Northern Ireland. It reflects the different pace at which individual nations can decarbonise, while recognising that the UK ETS is, by design, a UK-wide scheme that delivers a common carbon price across all four jurisdictions.”
“The Order will introduce a civil penalty for failure to submit information to regulators and a deficit notice for use in the instance of an operator's failing to surrender sufficient allowances for its emissions by the surrender deadline. It will also introduce amendments to ensure a more consistent approach by regulators to the application of such penalties. Those are the main elements of the Order. <BR /> <BR />As I stated, the amendments in the draft Order are mainly of a technical and operational nature, and they implement a net zero-aligned emissions cap. The emissions cap is consistent with the UK and devolved Administrations' decarbonisation trajectories for the sectors within the scope of the scheme. The Order does not extend the scope to additional industrial sectors.”
“That share could be used for, for example, future market stability purposes to mitigate unexpected price shocks. <BR /> <BR />The Order will also extend to Northern Ireland UK ETS amendments that were previously implemented in Great Britain only to reinstate policy consistency across the UK jurisdictions. They include technical changes such as capping the maximum free allocation that aircraft operators are eligible to receive — no aircraft operators registered in Northern Ireland are in receipt of free allocation; clarifying the treatment of carbon capture and storage plants; and extending the scope of the UK ETS to include flights from Northern Ireland to Switzerland in order to ensure uniformity of approach across the UK.”
“That has been facilitated through amendments made under the Finance Act to the UK ETS auctioning regulations to support a smooth transition for scheme participants whilst sending a strong signal to decarbonise. <BR /> <BR />That course of action was taken as it was not possible to bring forward an amendment to the 2020 Order, which I am bringing to you today, on a UK-wide basis whilst the Assembly was not sitting. To delay the implementation of the cap reduction would have resulted in a steeper reduction in availability of allowances from the previous cap to the net zero trajectory, which would have been unfair to participants. The Order creates a flexible reserve of allowances that will be stocked from allowances such as those that remain unallocated and have been available to participants for free.”
“The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 was laid in draft before the Northern Ireland Assembly on 22 October 2024, under the Climate Change Act 2008, which requires that the Order be laid in draft and debated in each legislature in which it will have effect. So far, the Order has been debated and approved by the Scottish Parliament and the Senedd Cymru, and it was debated yesterday in the House of Commons. <BR /> <BR />The Order, if approved, will make the following changes to UK ETS: it will implement a reduction of the UK ETS cap to align with a net zero trajectory consistent with UK and NI net zero objectives. To deliver on commitments given in the Government's response to developing the UK ETS consultation, the number of allowances auctioned from 1 January 2024 onwards has already been reduced.”
“Since the previous Assembly approved the Greenhouse Gas Emissions Trading Scheme Order 2020, which I will refer to as the 2020 Order, the scheme that was established has been amended and supplemented, through further instruments, to ensure that it continues to function effectively. The amending Order before us today includes Northern Ireland within the scope of the legislation made on a GB-only basis during the recent Assembly suspension, in addition to implementing net zero-aligned emissions. <BR /> <BR />The proposals contained in the Order were subject to a joint UK-wide consultation between March and June 2022. The response to the consultation was published in July 2023 and included a commitment to implement a net zero-aligned cap on emissions with effect from 1 January 2024.”
“If generators, North and South, were to participate in different emissions trading schemes, there could be a carbon price divergence, which could distort the operation of the single electricity market. To give some context of the scale, there are around 900 UK participants in the scheme and 17 in Northern Ireland, along with two registered aviation operations. Those installations, along with the six electricity generators that I have already mentioned, account for approximately one fifth of all greenhouse gas emissions in Northern Ireland. To note, only around 17% of that figure is attributable to emissions from UK ETS participants. The majority — around 83% — arises from electricity generators. <BR /> <BR />I return to the legislation.”
“A cap is set on the total number of allowances available under the scheme and is gradually reduced over time. The aim is to encourage reductions in emissions. Scheme participants, with the exception of electricity generators, receive free allowances, which cover a proportion of their emissions. That is known as "free allocation", and its purpose is to prevent carbon leakage: industry relocating to other parts of the world that either do not have costs for carbon emissions or have costs that are lower. <BR /> <BR />It is important to note that, in the Northern Ireland context, there is an exclusion from the scope of UK ETS for Northern Ireland's six electricity generators, which remain in EU ETS to preserve the functioning of the single electricity market on the island of Ireland.”
“It helps to contribute to the achievement of greenhouse gas reduction targets set in the Climate Change Act (Northern Ireland) 2022 along with wider UK emissions reduction targets and net zero goals. The scheme replaced the UK's participation in the EU emissions trading system (EU ETS) and came into force on 1 January 2021. <BR /> <BR />It may be helpful, at this point, to provide a brief summary of the operation of the UK ETS. It is based on a cap and trade principle and requires participants to purchase and surrender a carbon allowance for each ton of carbon dioxide that they emit. The more carbon dioxide emitted, the more allowance is required. There are penalties for failure to obtain and surrender the requisite number of allowances. Participants face a choice between paying to emit or investing in decarbonisation.”
“I am grateful for the opportunity to move the motion. The UK emissions trading scheme (UK ETS) was established in 2020 under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020 as a UK-wide greenhouse gas emissions trading scheme to encourage cost-effective emissions reductions.”
“Our approach to MV surveillance in Northern Ireland is under review, and my officials are engaging with industry stakeholders. No decision has been made by me, and, as I said, again, we will engage with the Committee if any decisions are taken on this.”