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Voluntary carbon markets are not working and risk delaying net zero carbon emissions targets.

That is the stark warning from the independent Climate Change Committee (CCC), which scrutinises government policy and progress toward decarbonisation.

In a new report the committee says “businesses are increasingly turning to voluntary carbon offsetting as they aim to reach Net Zero. But recent market growth is premature.

“Offsets can mask insufficient efforts from firms to cut their own emissions, they often deliver less than claimed, and they may push out other environmental objectives in the rush to capture carbon.”

COP27: Everything you need to know about the United Nations climate talks in Egypt

Carbon offsetting allows companies to compensate for their own pollution and boost climate credentials by purchasing credits from projects around the world that reduce or avoid greenhouse gas emissions, typically involving things like tree planting or nature restoration projects.

But the quality of these credits can vary hugely and there are no agreed global standards.

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Last month Sky News reported exclusively that nearly half of the carbon offsets held by energy company Centrica on behalf of its UK business and residential customers have such a poor reputation that the EU banned them from its own emissions trading system in 2013.

Centrica told Sky News: “These carbon offsets were initially brought to back a tariff which has not been sold since 2019.

“We subsequently made the decision not to use them again as they were not aligned with our high environmental standards.”

Experts said that the Centrica offsets issue was indicative of a much broader problem with voluntary carbon markets, which are essentially unregulated and growing at an extraordinary pace.

Some studies have projected that if demand keeps growing the global market could be worth up to $50bn by 2030.

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‘A government attack on nature’

The CCC report says that current shortcomings “could be overcome with stronger governance to ensure high-integrity carbon credits and clearer guidance for businesses to encourage them to cut their own emissions first and foremost, before turning to offsets.”

Chief executive of the Climate Change Committee Chris Stark said: “Businesses want to do the right thing and it’s heartening to see so many firms aiming for early Net Zero dates.

“But poor-quality offsets are crowding out high-integrity ones. Businesses face confusion over the right approach to take.

“There is a clear need for government to make standards stronger and point businesses towards an approach that prioritises real emissions reduction ahead of offsetting.

“Those businesses that choose to support the economy-wide transition to Net Zero should get the credit they deserve.”

Watch the Daily Climate Show at 3.30pm Monday to Friday, and The Climate Show with Tom Heap on Saturday and Sunday at 3.30pm and 7.30pm.

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The show investigates how global warming is changing our landscape and highlights solutions to the crisis.

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Hadush Kebatu: Migrant sex offender deported after mistaken prison release

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Hadush Kebatu: Migrant sex offender deported after mistaken prison release

Migrant sex offender Hadush Kebatu has been deported to Ethiopia following his mistaken release from prison.

Footage captured from Heathrow Airport showed the moment he was escorted on to a plane on Tuesday night.

The government says he has no right to return to the UK.

Home Secretary Shabana Mahmood said she “pulled every lever” to deport Kebatu.

“I am pleased to confirm this vile child sex offender has been deported. Our streets are safer because of it,” she said.

Hadush Kebatu was arrested on Sunday after his mistaken release
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Hadush Kebatu was arrested on Sunday after his mistaken release

Kebatu was found and arrested by the Metropolitan Police in the Finsbury Park area of north London at around 8.30am on Sunday following a manhunt.

Last month he was found guilty of sexually assaulting a schoolgirl and a woman in Epping, Essex, just over a week after arriving in the UK on a small boat.

He was expected to be deported, but instead of being handed over to immigration officials he was released from HMP Chelmsford on Friday.

He spent just under 48 hours at large before he was apprehended.

The accidental release sparked widespread alarm and questions over how a man whose crimes sparked protests in Epping over the use of asylum hotels was able to be freed.

Ms Mahmood said: “Last week’s blunder should never have happened – and I share the public’s anger that it did.”

Anti-asylum demonstrators in Epping, Essex. Pic: PA
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Anti-asylum demonstrators in Epping, Essex. Pic: PA

On Sunday, Justice Secretary David Lammy said an exclusive Sky News interview will be used as part of an independent inquiry into the mistaken release.

Speaking to Sky’s national correspondent Tom Parmenter, a delivery driver who spoke to Kebatu at HMP Chelmsford described him as being “confused” as he was being guided to the railway station by prison staff.

The migrant is said to have returned to the prison reception four or five times before leaving the area on a train heading to London.

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‘My family feels massively let down’

Mr Lammy, who put Kebatu’s release down to human error, said he ordered an “urgent review” into the checks that take place when an offender is released from prison, and new safeguards have been added that amount to the “strongest release checks that have ever been in place”.

From Monday, new checks include five pages of instructions and demands that more senior prison staff sign off a release, according to documents obtained by Sky News.

“I have been clear from the outset that a mistake of this nature is unacceptable, and we must get to the bottom of what happened,” said Mr Lammy.

This breaking news story is being updated and more details will be published shortly.

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‘Nervous’ British tourists in Jamaica tell of Hurricane Melissa ordeal

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'Nervous' British tourists in Jamaica tell of Hurricane Melissa ordeal

Up to 8,000 holidaying British citizens are in Jamaica as it is battered by one of the strongest Atlantic hurricanes in history.

People have been ordered to stay indoors as Hurricane Melissa sweeps over the Caribbean island, which is also home to 50,000 dual nationals.

And tourists are locked down in hotels as Jamaica is hit by 185 mph winds.

Follow latest updates on Hurricane Melissa

Waves splash in Kingston, Jamaica, as Hurricane Melissa hits. Pic: AP
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Waves splash in Kingston, Jamaica, as Hurricane Melissa hits. Pic: AP

Andrew Tracey had been due to fly home to the UK on Monday, but his flight was cancelled.

Mr Tracey told Sky News that food packages were being delivered to guests at his hotel. Deck chairs have been removed from the beach, and the swimming pools have been drained, at the Negril hotel where he is staying.

“The balcony and walls do feel as though they are vibrating just due to the strength of the wind,” said Mr Tracey.

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“I’m very nervous, it’s hard to comprehend what we are likely to expect.”

The US National Hurricane Centre in Miami said that Melissa was “one of the most powerful hurricane landfalls on record in the Atlantic basin” as it hit southwestern Jamaica near New Hope.

People walk along a road during the passing of Hurricane Melissa in Rocky Point, Jamaica, on Tuesday. Pic: AP
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People walk along a road during the passing of Hurricane Melissa in Rocky Point, Jamaica, on Tuesday. Pic: AP

In a social media post, the centre warned that it is an “extremely dangerous and life-threatening situation” – and told those in the area not to leave their shelter as the eye of the storm passes over.

‘It is a bit scary, but we’ve got each other’

A British-Jamaican couple who are sheltering inside as the storm passes over the island spoke to Sky News about their ordeal.

Shantell Nova Rochester and her Jamaican fiance Denva Wray are due to get married on the island next month.

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Floods tear through parts of Jamaica

They spoke of broken windows and water coming in where they are staying, but the couple believe they are “as safe as they can possibly be” in St Elizabeth.

Mr Wray said: “Where we are is quite strong, sturdy, but you can hear a lot of wind. It is a bit scary, but we’ve got each other, so we are strong.”

Asked about the wedding, Ms Rochester said: “We’re just worried about getting through tomorrow, but that’s a worry in the back of our heads.

“Where we plan to get married is flooded at this time.”

Government action ‘too late’ – British tourist

One British man who paid £3,500 for last-minute flights so he and his family could return home before the hurricane hit the island said that he felt “completely let down” by the government’s response.

David Rowe and his family, from Hertfordshire, had spent 10 days in Jamaica before deciding to fly back to the UK on Saturday.

Mr Rowe, 47, was critical of the response of the Foreign, Commonwealth and Development Office (FCDO).

David Rowe with his wife Abby, daughter Cora, eight, and son Ethan, 12, during their holiday in Jamaica.  Pic: PA/handout
Image:
David Rowe with his wife Abby, daughter Cora, eight, and son Ethan, 12, during their holiday in Jamaica. Pic: PA/handout

Speaking to the PA news agency, IT manager Mr Rowe said: “It’s all too late, their reaction and their response to the storm has been too late – after the fact.

“The advice should have been last week, like on the Saturday – don’t travel – because a lot of the travel companies use the FCDO guidance on travel (for) all their planning and what decisions they make as an organisation.

“There should have been something done much sooner than this. A lot of the UK nationals, and people on holiday there, they are stranded.

“This could have been prevented with better action from the UK government.”

Read more:
Hurricane Melissa: What we know
‘Storm of century’ makes landfall

Mr Rowe added that he and his wife had felt “very anxious” before they flew home – and “very sad” for those left in the country.

A Foreign Office spokesperson said: “We understand how worrying developments in Jamaica are for British nationals and their families.

“Our travel advice includes information about hurricane season, which runs from June to November. Last Thursday we updated our travel advice for Jamaica to include a warning about Tropical Storm Melissa and that it was expected to intensify over the coming days.

“The safety and security of British nationals is our top priority, and that is why we are urging any British nationals in Jamaica to follow the guidance of the local authorities and register their presence with us to receive updates.”

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Slashing foreign aid will lead to unrest, crises and threaten UK security, MPs warn government

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Slashing foreign aid will lead to unrest, crises and threaten UK security, MPs warn government

The government’s decision to slash foreign aid will lead to unrest, further crises and threaten UK security, a group of cross-party MPs has warned.

A report by the International Development Committee found the decision in February to reduce aid to 0.3% of gross national income (GNI) by 2027/28 – coupled with the US cutting its aid budget – is having a severe impact.

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The foreign aid budget was cut to invest in defence from 0.5% of GNI, which was meant to be an interim reduction from 0.7% to cope with economic challenges caused by the pandemic.

Total aid spending is set to reduce from £14.1bn in 2024 to £9.4bn by 2028/29.

The committee, chaired by Labour MP Sarah Champion, said spending is being prioritised on humanitarian aid over development, which “builds long-term resilience and should lead to reducing the need for humanitarian aid”.

They said the international development minister, Baroness Chapman, has made it clear “the UK will remain a leading humanitarian actor”.

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Explained: Key Sudan city falls

But the committee said while they are glad those in “desperate need of aid will be prioritised, particularly in the regions of Ukraine, Gaza, and Sudan”, they are concerned about the long-term effect of pulling development aid.

“We are concerned that slashing development aid will continue to lead to unrest and further crises in the future, presenting a threat to UK security,” the MPs said.

David Lammy, when he was foreign secretary, on a visit to Chad to see how aid agencies are dealing with the humanitarian crisis. Pic: PA
Image:
David Lammy, when he was foreign secretary, on a visit to Chad to see how aid agencies are dealing with the humanitarian crisis. Pic: PA

Risk to UK’s national security

They said a reduction in foreign aid will have “devastating consequences across the world”.

The committee said it recognises an increase in defence spending is needed, but “to do this at the expense of the world’s most vulnerable undermines not only the UK’s soft power, but also its national security”.

They said the government must make “every effort” to return to spending 0.5% of GNI on foreign aid “at a minimum, as soon as possible”.

The committee also found long-term funding for development is “essential” to ensure value for money is achieved.

However, they accused the government of seeing value for money only in terms of the taxpayer, saying that downplays “equity and the importance of poverty reduction” and causes tension.

They agreed accountability to the taxpayer is “key to reducing poverty globally, and maximising the impact of each pound to do so, must remain the Foreign, Commonwealth and Development Office’s central tenet for official development assistance spending”.

A Foreign Office team member helping evacuees in Cyprus in 2023. File pic: Reuters
Image:
A Foreign Office team member helping evacuees in Cyprus in 2023. File pic: Reuters

Spending on migrant hotels

Spending on migrant hotels in the UK was also criticised by the MPs, who said while international aid rules mean they can cover refugee hosting for the first 12 months in the UK, given the recent cuts, that is “incompatible with the spirit” of the UN’s OECD Development Assistance Committee rules.

“Excessive spend on hotel costs is not an effective use of development budget,” they said.

The committee recommended costs of housing refugees should be capped “at a fixed percentage” of total foreign aid spending “to protect a rapidly diminishing envelope of funding”.

Read more: Govt struggles to slash aid spent on asylum hotels

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Inside Afghanistan’s hunger crisis

‘Short-sighted’

Reacting to the report, Timothy Ingram, head of UK advocacy at WaterAid, said: “The UK government’s decision to cut the aid budget was one that defied both logic and humanity. Aid when delivered effectively in partnership with local communities is not charity – it’s an investment in a safer and more prosperous world.

“Undermining it, especially vital finance for water, weakens the world’s resilience to climate shocks, pandemics, and conflict – impacting the one in 10 people without access to clean water, and ultimately making us all less safe.

“This is a short-sighted political decision with long-term consequences for the UK’s stability, economy and global standing. We join with MPs in urging the government, once again, to urgently reconsider.”

Lack of transparency over private contractors’ spending

In the report, MPs said it is worried the Foreign Office has not reviewed aid spending on multilateral organisations, which allows the UK less direct influence over spending, such as the World Bank or vaccine organisation Gavi since 2016, despite spending nearly £3bn on them in 2024.

They said the use of private contractors does not offer inherently poor value for money, but a lack of transparency and data can mean under-delivering and a loss of “in-house” expertise.

Palestinians carry aid supplies that entered Gaza. Pic: Reuters
Image:
Palestinians carry aid supplies that entered Gaza. Pic: Reuters

‘Tragic error’

Sarah Champion, chair of the International Development Committee, said: “Ensuring aid delivers genuine value for money has never been more important. As major donors tighten their belts, we have to ensure that every penny we spend goes to the people most in need.

“The former Department for International Development was rightly seen as a world leader in value for money; the FCDO is broadly hanging on to that reputation. But it must make some urgent improvements.

“Reducing poverty must be the central aim of the development budget. While accountability to the taxpayer is an important consideration, the FCDO’s current definition of value for money risks diverting focus away from improving the lives of the most vulnerable – the very reason the aid budget exists at all.

“The savage aid cuts announced this year are already proving to be a tragic error that will cost lives and livelihoods, undermine our international standing and ultimately threaten our national security. They must be reversed.

“Value for money is critical to making the most of a shrinking aid budget. While this report finds some positives, the government must take urgent action to wipe out waste and ensure the money we are still spending makes a genuine difference.”

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