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Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Minister for Energy Security and Net Zero (Graham Stuart)
It is a great pleasure to serve under your chairmanship, Sir Christopher, and to listen to this excellent and important debate. I begin by congratulating my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng) on securing it. Of course, I come to this debate with some trepidation, as I am facing someone who did my job previously and then, unlike me—yet, anyway—went on to be Secretary of State at what was then the Department for Business, Energy and Industrial Strategy. He made immense progress on our path to net zero and energy security
I would not normally be rude, but I hope that the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) can perhaps move on, as we debate more often, from a rather adolescent approach to one that more genuinely engages with the substance. His was not a particularly brilliant contribution to this debate in comparison with those made by other Members, which I thought actually had some substance.
My right hon. Friend the Member for Spelthorne oversaw the publication of the landmark, world-leading net zero strategy. The independent Climate Change Committee described it as
“an ambitious and comprehensive strategy that marks a significant step forward for UK climate policy”
and as
“the world’s most comprehensive plan to reach net zero”.
It is worth highlighting a couple of points. When we came to power in 2010, just 7% of this country’s electricity came from renewables; now it is well over 40%. The issue of insulation and the number of houses being insulated was also raised. I do not know why the Liberal Democrat member who raised it, the hon. Member for Tiverton and Honiton (Richard Foord), is no longer here for the winding-up speeches, but anyway—he raised it before leaving the Chamber. It is worth noting that in 2010 the figure was just 14% and by the end of this year I expect that 50% of homes will have reached energy performance certificate level C or above, which is a huge—indeed, transformative—change, albeit one that needs to go much further and faster.
My right hon. Friend the Member for Spelthorne oversaw COP26, which was the biggest summit that this country has ever hosted. It brought together 120 world leaders and over 38,000 key figures from Governments, civil society, businesses, youth and more, in order to tackle the urgent challenge of climate change. It is also worth noting that we have met all our carbon budgets to date and that we are the first major economy to legislate for net zero—done under this Government. So this country is more on track than almost any other country and certainly more than any major economy on earth. That is the context that people could be forgiven for not realising was in fact the case from the rather adolescent contribution of the Scottish National party spokesman. I will leave to one side any comments that the chairman of the Climate Change Committee has made about the Scottish Government’s performance in meeting their climate targets, because doing otherwise would be to descend to the level that the SNP spokesman stayed at throughout his speech.
Barry Gardiner
When the Minister says that this country is “more on track”, does that mean that we are “on track” or that we are just closer to being “on track” than anybody else?
Graham Stuart
That is an excellent question—we have exceeded every carbon budget to date. We not only have the net zero strategy but we had the net zero plan on 30 March, setting out how we will do it. Of course that stretches through to 2037. Not every aspect of the way in which we will fulfil that aim has been set out to date—people would not expect them to be 14 years before that date—but we are on track. What we have to do is make sure we stay on track. I would not try to represent to the House today anything other than the fact that it is an extremely challenging business to ensure that we continue on track. That is what we are working on flat-out.
My right hon. Friend the Member for Spelthorne oversaw the publication of the British energy security strategy, which raised greatly the ambition set out in the net zero strategy, and since those documents came out the Government have continued to progress. In March, we published the Powering Up Britain package, which demonstrates that we are on track to reach net zero, and in the net zero growth plan we are bolstering delivery. That plan responds to the expert recommendations made in Mission Zero, the independent review of net zero, to which there has been reference in the debate, which explored how we can achieve net zero in the most pro-growth, pro-business way.
Our net zero ambition needs strong public and private partnership, and we are forging these links in a number of ways. Government policy and funding commitments are already leading to real outcomes, and we are leading the world in so many ways, not just on offshore wind.
The Government are committed to accelerating renewable electricity deployment. The Powering Up Britain package sets out our delivery plans for meeting those ambitions. It includes important announcements on a range of technologies, including up to £160 million of new funding to kick-start our investment in port infrastructure to deliver on our floating offshore wind ambitions, which were referred to earlier, and a new solar taskforce to drive deployment of that important technology as we seek to increase that fivefold by 2035. We launched the taskforce on 25 May, getting key players from Government, industry, regulatory organisations and other relevant organisations round the table to drive forward the actions required to deliver that ambition of deploying 70 GW of domestic and industrial rooftop and ground-mounted solar by 2035, all while cutting installation costs, boosting British skills and jobs, and improving grid access to support a solar power revolution.
Barry Gardiner
The Minister rightly refers to the need to improve our electricity supply from solar. Has he looked at the interconnection that is proposed from Morocco to come in at the Hinkley juncture? Are he and the Department now considering a contract for difference, which would enable that contract to go ahead?
Graham Stuart
I thank the hon. Gentleman for his question. We are looking at the Xlinks project. We have set up a team to look at it with no further commitment other than to make an assessment. It will be reporting to me shortly on that. We will look at the outline business case going forward. We are looking at it; I do not want to go further—positively or negatively—than saying that.
Gavin Newlands
I realise it is a stretch for the Minister to try to portray himself as the adult in the room with his contribution, but he mentioned good access. Will he therefore tell us what will happen with the grid constraints across the border, even in Orkney where all the energy it produces cannot actually be fed into the grid? When will that be resolved?
Graham Stuart
I thank the hon. Member for that question. It is a good question because the grid constraints, transmission and local connection are the biggest barriers standing in the way of decarbonising our electricity system by 2035. That is why the networks commissioner was asked to investigate that and will be reporting to us this month. That is why the Prime Minister appointed for the first time a Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), who is working on that. The hon. Member for Paisley and Renfrewshire North is absolutely right to point out that the transformation we have seen in renewables, the change in our generation system and the requirement to grow our electricity capacity going forward puts enormous strain on that and creates not only supply chain, financing and deployment challenges in that space, but political ones because of the infrastructure impact on communities. A lot of work is going on in that space, and I am working closely with Scottish Government colleagues and other colleagues to try to ensure that we work in the most coherent manner possible.
We have heard mention in the debate of the need to improve the energy performance of homes across the country. Notwithstanding the transformation we have brought about—it is not enough—that is why we have established a new energy efficiency taskforce to drive forward improvements. That is why we are spending £12.6 billion over this Parliament and up to 2028 to support and provide long-term funding and certainty, supporting the growth of supply chains and ensuring that we can scale up delivery over time. Only yesterday I visited Octopus Energy’s centre, looking at how that company is trying to design heat pumps to be cheaper to install and more efficient, so they can drive the cost down and speed up the time it takes to install them, thus making the decarbonisation of heat in homes, which is a thorny and challenging subject, more realistic and deliverable.
The delivery of net zero relies on strong business action. That is why we brought together senior business and finance leaders into a new strategic net zero council co-chaired, alongside myself, by Co-op Group CEO Shirine Khoury-Haq. It includes Carl Ennis, CEO of Siemens; Ian Stuart, UK CEO of HSBC; Chris Hulatt, the co-founder of Octopus Investments, and others from UK business. The full membership reflects the cross-cutting nature of our net zero challenge. The next meeting is planned to be held in No. 10. We are mapping all the various business and sectoral organisations focused on net zero, looking to ensure that we have the most coherent architecture and that we can develop road maps for each sector, so that we can take the cross-cutting nature of Government in other policies and put it into something that people in particular sectors can more easily adjust to and adapt and that investors can invest in. The green jobs delivery group was formed after the publication of the net zero strategy and followed work by my right hon. Friend—