The next item is the debate on the legislative consent motion on the Finance Bill. I call on the Minister for Environment, Energy and Rural Affairs to move the motion. Lesley Griffiths.

Motion NDM7336 Lesley Griffiths

To propose that the Senedd, in accordance with Standing Order 29.6 agrees that provisions in the Finance Bill in so far as they fall within the legislative competence of the Senedd, should be considered by the UK Parliament.

Motion moved.

Diolch, Llywydd. I move the motion and I'm pleased to be able to bring forward this legislative consent motion for the UK Government's Finance Bill. I would like to thank the Legislation, Justice and Constitution Committee and the Finance Committee for their scrutiny of the memorandum. 

The LJCC concluded I should seek consent of the Senedd, given the provisions relate to a purpose that it is within its legislative competence. The Finance Committee was content, and did not wish to raise any reporting issues. Clause 93 of the Finance Bill relates to the charging for and allocating allowances under an emissions reduction trading scheme. I believe the provisions contained within clause 93 fall within the legislative competence of the Senedd, in so far as they relate to environmental protection and climate change. However, I am of the opinion these provisions should be made in a UK Bill, as this will ensure we meet the timetable required to implement the UK emissions trading scheme across the UK on 1 January 2021.

Charging for allowances through an auctioning system will enable the UK emissions trading scheme—a hugely important decarbonisation policy—to set a carbon price for our highest emitters when we leave the EU emissions trading scheme. The UK emissions trading scheme will incentivise Wales's largest carbon emitters to decarbonise their operations whilst ensuring a level playing field across the UK. Achieving a transition to Wales's industrial base will be crucial if we are to achieve our climate ambitions in a socially just way. I therefore commend the motion to the Chamber.

Chair of the Legislation, Justice and Constitution Committee, Mick Antoniw. Mick Antoniw, your microphone isn't unmuted. Try again.

Thank you, Llywydd.

There you go.

We considered the legislative consent memorandum for the Finance Bill at our meeting on 8 June 2020. We laid a short report before the Senedd on 18 June, and my contribution to this debate this afternoon will therefore be brief.

As the Minister said, the highest emitters of greenhouse gasses in Wales currently participate in the European Union emissions trading scheme. A replacement policy will be required within the UK at the end of the transition period in order to avoid a gap. The legislative consent memorandum notes that given there is a UK-wide intention for a UK-wide framework,

'with common rules for participants across the UK'— the Welsh Government believes—

'it is appropriate for a UK Bill to make these provisions'— for Wales, and our report notes this fact.

At this point, I'd like to provide some broader context to this afternoon's debate. The Legislation, Justice and Constitution Committee monitors the UK Government's reports on the European Union (Withdrawal) Act 2018 and common frameworks, which are produced for the UK Parliament on a three monthly cycle. Members will be aware that the reports provide an update on the use of so-called freezing powers under the EU withdrawal Act, but the reports also note progress that has been made in the development of common frameworks. The seventh report covering the period December 2019 to March 2020 notes that the emissions trading systems framework has gone through the inter-governmental workshops and stakeholder engagement, and has completed phase 2 of the four-phase process. I'm aware that the UK and devolved Government have now also issued proposals on the new UK-wide emissions trading scheme.

Now, moving on, referring to clause 93—as the Minister also did—of the Bill, allows the UK Government to make regulations, which provide for the allocation of emissions allowances in return for payment, under any future UK emissions trading scheme. Whilst the Welsh Government is of the view that this clause requires the Senedd consent, the UK Government does not agree. As a committee, we agree with the view of the Welsh Government. In our view, the relevant provisions of clause 93 relate to a purpose that is within the legislative competence of the Senedd in accordance with section 108A of the Government of Wales Act 2006, and therefore consent of the Senedd is correctly being sought. Thank you.

We have no other speakers, and therefore I ask the Minister to respond if she wishes to.

Diolch, Llywydd, and I thank Mick Antoniw for his contribution. As I said, it's a hugely important policy if we are going to achieve a decarbonised, successful industry base in the future. And I think also as we look to recovery from COVID-19, it's really important that we provide clarity for our businesses. So, diolch.

The proposal then is to agree the motion. Does any Member object? No, I see no objection, and therefore the motion is agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.