Making Britain a Clean Energy Superpower
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. Throughout history, economies have succeeded when they can source enough cheap and secure energy. Now, as we face a new challenge—the global challenge of climate change—it is important that we source enough clean energy too. We have been a coal superpower and an oil superpower; if the Opposition are looking for a clean energy superpower, they should look no further. Britain today is a clean energy superpower, and our plans will enable us to go much further.
While the Labour party never ceases to talk this country down, I am proud that we are leading the world in this great energy challenge. In the first quarter of this year, 48% of our power came from renewables, up from just 7% in 2010. We are a world leader in offshore wind. We have increased our country’s renewable energy capacity fivefold since 2010—more than any other comparable Government. We are building new nuclear for the first time since Margaret Thatcher’s Government, and this brilliant innovation nation is leading the world in new technologies like small modular nuclear reactors and fusion energy. As recently as 2012, coal was generating 40% of UK electricity, but we are now on course to be one of the first major economies with power that is coal-free.
This work led by the Conservatives is dramatically reducing our greenhouse gas emissions. We have had the fastest reduction in emissions of any major economy, down almost 50% since 1990. Meanwhile France is down 23%, the US has not changed at all, and China has increased its emissions by 300%. And we are not stopping here. Which is the major economy with the most ambitious target to cut emissions by 2030? Is it the US, at 40%? Is it the EU, at 55%? No, it is the United Kingdom at 68%.
Jim Shannon (Strangford) (DUP)
I am very conscious that the net zero targets are set for the United Kingdom, but unfortunately Northern Ireland cannot participate nor can we add our physical support to achieving those targets, because the contracts for difference scheme is not in place in Northern Ireland. I have spoken to our Ministers about this. Will the Secretary of State also look at this on behalf of all the constituents in Northern Ireland who want to contribute to achieving the net zero targets and be part of the contracts for difference scheme?
Claire Coutinho
I will happily look at that.
The UK was the first major economy to set a legally binding date for net zero. Our ambitions for 2030 are ahead of those of our peers and we have the plans in place to meet them. In fact, we have met every single one of our stretching targets to reduce carbon emissions, thanks in no small part to our clean energy success. Labour seems to have conveniently forgotten about the shameful state of our renewables sector when it left office. Just 7% of our power came from renewables in 2010; today, thanks to the actions of the Conservatives, that figure stands at near 50%. Never forget that it was the right hon. Member for Doncaster North (Edward Miliband) who described the idea of the UK getting to 40% renewables as “pie in the sky”.
Edward Miliband (Doncaster North) (Lab)
I had to correct the right hon. Lady’s predecessor on the point she has just repeated. Her mistake is quite basic, confusing electricity and energy. The Guido Fawkes blog—not an institution I often praise—pointed this out when her predecessor made this mistake. What I actually said—it comes from David Laws’ memoirs—was that it was pie in the sky to say we could have 40% of our energy provided by renewables. Currently, the figure is 18%. The Secy of State’s remark is inaccurate and wrong, and I would be grateful if she withdrew it.
Claire Coutinho
I will happily go and look at that, and take that point on board, but I will say that it sticks with the trend of the right hon. Gentleman talking our energy and power down.
Edward Miliband
I will read from David Laws’ memoirs. During the coalition talks, I said,
“all this stuff about getting 40% of energy production”—
energy production—
“from renewables by 2020 is just pie in the sky.”
Energy production from renewables is currently just 18%. I would be grateful if the right hon. Lady corrected the record.
Claire Coutinho
As I said, I will happily look at that, but the right hon. Gentleman has made comments about nuclear—
Edward Miliband
I ask the Secretary of State for the third time. She claims that I said that it was “pie in the sky” that 40% of our electricity could come from renewables. I did not say that, and I have pointed out to her the exact quote, where I talk about 40% of energy coming from renewables. When one has said something inaccurate about another hon. Member in the House, the right thing to do is not to just keep reading the Conservative campaign headquarters lines, but to correct the record.
Claire Coutinho
As I said, I am happy to do the right hon. Gentleman the courtesy of withdrawing on this occasion, but I would also suggest that he correct the record himself about the fact that he said we needed no new nuclear in the past.
Now that I am allowed to move on, let me say that energy security means national security, and that means powering Britain from Britain and making sure we never have to worry again about generating enough power to keep the lights on or heat our homes. We saw what happened last year when Putin weaponised energy, and the full impact his illegal war in Ukraine had on energy bills for households around the world. I am proud that the Government stepped in with an unprecedented level of support, paying around half of people’s energy bills. With continued global instability, I know that households are anxious about the coming winter. That is why we have the energy price guarantee until April 2024 and why we will always protect the most vulnerable in society with targeted support such as the winter fuel payment, cost of living payments and the warm home discount.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
The Secretary of State is talking about energy bills, and thousands of my constituents are really struggling to pay their energy bills and are petrified about what the winter holds. On the media round on Monday, the Secretary of State said there was nothing in this King’s Speech to help people with their energy bills. What will she to say to those thousands of my constituents and indeed other constituents?
Claire Coutinho
The Bill we are bringing forward will unlock billions of pounds in tax, which will go towards helping with the programmes I have just talked about—for example, the cost of living payments we are putting in place. It will also unlock billions of pounds of investment, which will go towards a greener transition, and I am sure the hon. Lady will agree that having more renewable energy in the future will contribute to lower bills for her constituents.
Our leadership is bringing wealth to our economy and to British workers. Since 2010, we have secured £200 billion in low-carbon investments, with potentially up to £375 billion on the way. Carbon capture will see 50,000 high-skilled British jobs in places such as Teesside and the Humber. Our world-leading offshore wind farms will see 90,000 jobs from Aberdeen to Cornwall by 2030. That is the difference between a Conservative Government, focused on attracting businesses, investment and jobs and creating livelihoods, and Labour, with its same old plans to borrow, borrow, borrow, intent on racking up billions of pounds of debt and then just leaving hard-working families to pick up the bill.
Let us look at the record and the Government’s plans to go further. We are a leader in offshore wind power. We do not just have the world’s largest offshore wind farm; we have the second, the third and the fourth largest, and we are now home to the fifth largest too. We expect growth in offshore wind to deliver enough energy to power the equivalent of every home in Britain by 2030 and to support 90,000 jobs. And it is not just offshore wind; it is floating offshore wind too.
We will generate enough solar energy to power 10 million electric vehicles by 2030.
Richard Thomson (Gordon) (SNP)
Will the Secretary of State tell us how much the UK’s offshore floating energy capacity will increase by as a result of the licensing round that has just closed?
Claire Coutinho
I would happily answer that point. The point the hon. Gentleman should understand is that a thriving oil and gas sector unlocks investment in other renewables. There are people interested in floating offshore wind who are part of the oil and gas sector now—the same subsea technology, the same people and the same skills will power our offshore wind and floating offshore wind sectors in the future.
We are also funding eight groundbreaking projects through our £1 billion net zero innovation portfolio to help us harvest the power of the sun from space. Space-based solar could provide clean energy day and night in all weathers and send it wirelessly to the Earth. Madam Deputy Speaker, I think you would agree that that is a superpower in itself.
Meanwhile, hydrogen hubs in places such as Teesside are not only creating the green hydrogen energy of the future, but bringing investment back to areas Labour left behind. By 2030, the sector could support up to 12,000 jobs and unlock up to £11 billion in private investment. However, hydrogen is not the only new technology we are supporting. In the last CfD allocation round, I was delighted to see that we had an unprecedented number of projects supporting emerging technologies such as tidal and, for the first time, geothermal energy.
So our green transition means up to £375 billion of investment and nearly half a million jobs across the UK. Of course, our plans also mean that by 2050 we could see our demand for electricity double, fuelled by our clean energy revolution, so we need to power up our electricity grid. I have made that my priority, and that is why I am ending the first come, first served approach to grid connections by raising the bar to enter the queue and ensuring that those who are ready first will connect first.
We will set out the UK’s first ever spatial plan to give industry certainty and every community a say, and we will speed up planning for the most nationally significant projects coming forward with our response to electricity networks commissioner Nick Winser’s review coming shortly. Those plans alone could unlock £240 billion of investment and support 130,000 jobs.
I turn to carbon capture and storage. We are investing £20 billion to make the most of our natural advantages in skills and geology. We have announced the first eight carbon capture networks that we will take forward, which are in the north-east, the north-west and Wales, and the next two carbon capture clusters, which are in north-east Scotland and Humberside. Those announcements put us on track to achieve between 20 million and 30 million tonnes of captured and stored carbon dioxide a year, which is equivalent to taking 4 million to 6 million cars off the road each year from 2030. Our plans will support 50,000 jobs by 2030 and add £5 billion to the economy by 2050. What is more, with 78 billion tonnes of potential storage in the continental shelf, the UK has the potential to become one of the greatest carbon storage bases in the world, thanks to the geological goldmine we are lucky to have on our doorstep.
Renewables are not always predictable, as they rely on the British weather—and, sadly, we have yet to develop a technology that can harness all of Labour’s hot air. That is why we are ramping up nuclear to help us become a clean energy superpower. The right hon. Member for Doncaster North, who for years sat at Gordon Brown’s side, did nothing to boost British nuclear, and other Labour Front-Bench Members have been naive enough to say that we do not need nuclear. We on the Government Benches are righting their wrongs. Earlier this year, we set up Great British Nuclear to spearhead our nuclear revival. We are building two new large-scale nuclear power stations. In fact, each and every operational nuclear power plant in Britain began its life under a Conservative Government. We are accelerating the development of small modular reactors, we are accelerating advanced modular reactors and we are leading the world in fusion energy. We are backing this vision with £700 million. The House may not realise it, but we have the hottest place in the solar system here in the UK, just under 50 miles away at the Culham Centre.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
My right hon. Friend is making an amazing speech, showing how much the Government have done for our environment. Could she give us an idea of the timetable for the small nuclear reactors and when the first one is likely to be licensed?
Claire Coutinho
I thank my hon. Friend. We are working at pace to have the fastest competition possible. We have just moved past the first part of the process and will be setting out more details in the new year.
As the Government continue to consider our long-term energy security of the future, it is only right that we support our British oil and gas communities. Even the Climate Change Committee acknowledges that oil and gas will be part of our energy mix when we reach net zero in 2050. So if we will need it, it is common sense that we produce as much of our own of it here.
Charlotte Nichols (Warrington North) (Lab)
As chair of the all-party parliamentary group on nuclear energy, I hear that one of the biggest barriers to nuclear is not the investment that the Secretary of State talks about but planning and people. What will she do on that? I have not heard anything so far in what has been proposed to stop things such as judicial reviews going in to stop nuclear power stations being built.
Claire Coutinho
The hon. Lady is right to raise skills, people and planning. We have been looking at ways to speed all of that up and will be setting out more details by the end of the year.
The King’s Speech included legislation for awarding oil and gas licences each year, giving industry the certainty it needs to invest in jobs here in the UK.
Nadia Whittome (Nottingham East) (Lab)
Will the Secretary of State give way?
Claire Coutinho
I will make some progress.
Oil and gas is an industry that supports 200,000 jobs and is expected to provide £50 billion of tax revenue in the next five years. That is the people and the money that the Labour party would send abroad, because it is not against oil and gas jobs, just against British oil and gas jobs—and for what? To increase our reliance on imports from foreign regimes with higher emissions and to send away billions of pounds of investment in carbon capture and hydrogen schemes. Opposition Members support those technologies but would rather the taxpayer footed the bill for them.
With our ambitions on net zero and for our energy security, it is critical that we make the most of our own home-grown advantages, but Labour and the SNP’s policy means jobs abroad, investment lost and energy security sabotaged. You do not have to take my word for it, Madam Deputy Speaker—the unions are sounding the alarm. It has been said that Labour “does not… understand energy”, is self-harming and “naive”, and that its policies would leave our oil and gas communities decimated, turning our oil and gas workers into the “coalminers of our generation”. Those are not my words but those of the GMB and Unite. We want to keep jobs and manufacturing here, but Labour has not understood that we needs natural gas supplies. Those are the words of industry. The important truth is that we know we need to transition to clean energy, but it is the same people, communities and expertise that will unlock the green transition. The skills of those working on oil and gas rigs today are the same skills that we will need for the offshore wind jobs of tomorrow.
Caroline Lucas (Brighton, Pavilion) (Green)
I am losing track of the number of times I have pointed out in this Chamber that just because we extract oil and gas from the North sea does not mean that it gets used here. It gets sold on global markets to the highest bidders, as we have said 100 times.
When it comes to annual licensing rounds, which the Secretary of State is flagging up, is it not the case that the North Sea Transition Authority was already licensing in 2016, 2017, 2018 and 2019? It only stopped because of the climate compatibility checkpoint. The tests that she sets out are not worth the paper that they are written on; she knows as well as we do that they are impossible not to meet, because they are set so low. Will she stop pretending that the Bill is serious, and just admit that it is nothing more than a gimmick?
Claire Coutinho
It is not a gimmick to protect 200,000 jobs. It is not a gimmick to protect the investment that will go into the cleaner energies of the future. On the hon. Lady’s first point, 50% for the gas supply that we use here comes from domestic production.
David Duguid (Banff and Buchan) (Con)
My right hon. Friend is being generous in allowing interventions. On the GMB leader’s quote about oil and gas jobs becoming the coal jobs of the future, is it not the case that the people with oil and gas skills, who we really need to deliver the energy transition, will not be left on the unemployment line, but will go and do their jobs overseas and deliver other countries’ energy security and energy transition?
Claire Coutinho
My hon. Friend makes an important point. We are lucky to have the skills, expertise and equipment in this country, which are the same skills that we need for a future in renewable energy. It is vital that we protect them and keep those skills here. To unnecessarily cut off those workers’ livelihoods in this country would wreck our clean energy ambitions. We remain resolutely committed to our ambitious net zero targets. More renewable energy; a nuclear revival; exciting new technologies such as hydrogen, carbon capture and fusion; and, where we need oil and gas, jobs for British workers—that is our vision for the future.
Nadia Whittome
A moment ago the Secretary of State quoted the Climate Change Committee, which also said that expanding fossil fuel production is not in line with net zero. By the Secretary of State’s own admission on Monday, not a single Bill in the King’s Speech will help families struggling with energy bills. How can the Government justify turbocharging new oil and gas, when that does nothing for the cost of living crisis and blows a hole in our climate ambitions?
Claire Coutinho
I am afraid the hon. Lady is quite mistaken. The Climate Change Committee’s own data shows that when we reach net zero in 2050, oil and gas will account for about 25% of our energy mix. That is why it is important to ensure that if we need it, it comes from here.
There are two futures here. One is the future I have just described, where we cut our emissions faster than any other major economy in the world; we drive hundreds of billions of pounds of private investment in wind, nuclear and hydrogen; we support UK industry with carbon capture; we create a world-class export opportunity in our continental shelf; we secure nearly half a million jobs, with our young people renowned globally for their expertise; we bring supply chains and manufacturing capability to our industry heartlands such as the Humber and Teesside; our coastal communities are renewed; and we protect our energy security and support families and businesses with the cost of energy. That is the future for Britain as a clean energy superpower.
There is another future: a bleak world. Imagine it is a grey day; the last private investor has just pulled out of the North sea. Those communities without the jobs to support them have disbanded. The right hon. Member for Doncaster North is explaining yet again why the Labour party has laden the country with debt. His mothballing of British oil and gas is seen as the worst handling of our natural resources since his old boss sold the gold. Norway, with its ongoing oil and gas licences, is forging ahead with its greener future. Meanwhile, jobs in Russia are booming. Our energy security has been jeopardised, as imports from unstable regions rise. That is the future we can expect from a party reliant on Just Stop Oil and Extinction Rebellion for ideas. With an awful predictableness, this parallel world has once again proven the law of British politics: every single Labour Government in the past left unemployment higher.
Of course, that future is not a surprise to anyone. The right hon. Gentleman said, after all, that we should sacrifice economic growth to cut emissions. [Interruption.] He would like to borrow £28 billion in his blind ambition for 2030, no matter the cost to ordinary people. Just three days ago he said that protecting the British oil and gas industry, 200,000 jobs and £50 billion of tax revenue was a stunt. But it is not a stunt to want to keep jobs in the UK, it is not a stunt to want to protect billions of pounds of taxes and investment in this country, and it is certainly not a stunt to prioritise domestic security over the threat of dictators such as Putin.
The British people have rejected the right hon. Gentleman’s arguments before, and they will do so again. I am sure that he will today mention Great British Energy, a new Labour entity about which we know only one thing for sure: it will be run badly, funded by the shadow Chancellor who, when she is not borrowing other people’s words, is recklessly borrowing to fund Labour’s policy and leaving the British people to pick up the bill.
What will GB Energy really look like? Will it be like Labour Nottingham Council’s version, Robin Hood Energy, which collapsed in 2020 leaving local taxpayers with £38 million of debt? Will it be like Labour-run Bristol’s version, Bristol Energy, which also collapsed, leaving local people with losses of £43 million? Or will it be like Labour’s 50% stake in Warrington’s Together Energy—people will get the pattern by this point—which also collapsed, with a £37 million bill this time for local residents to pick up? Not content with bankrupting Birmingham and Croydon or skewering local taxpayers in Nottingham, Bristol and Warrington, Labour now wants to bankrupt Britain. One thing is for sure: when Labour is in charge of your energy you will pay the price.
Energy transitions do not happen very often and now we are on the brink of the most important one of all to reverse centuries of global warming and reach net zero and secure energy resilience by powering Britain from Britain. It is only the Conservatives who have the plans to protect this country’s energy security, to deliver the most ambitious 2030 emission cuts of any major economy, to promote jobs and investment in the UK, and to help this country stand tall on the global stage. We will do that all without forcing families to choose between protecting their family finances and protecting the planet.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Secretary of State.
Claire Coutinho
Does the right hon. Gentleman acknowledge that I said it would also help fund renewable energy? Does he disagree with the view that a future with renewable energy would help to bring bills down?
Edward Miliband
I think that that is what we call wriggling.
As I was saying, I commend the Energy Secretary on her outburst of candour. She is right—she is telling it like it is—and, by the way, she is in good company. Let me read this to the House:
“MYTH Extracting more North Sea gas lowers prices. FACT UK production isn't large enough to…impact the global price of gas.”
Who said that? Not somebody on this side of the House. [Interruption.] No, not a former Chancellor. It was the current chairman of the Conservative party, the right hon. Member for Chelsea and Fulham (Greg Hands), when he was the Energy Minister.
So here they are, they really are going to the country and saying with a straight face, after all the pain and anguish that the British people have faced, “Here is our grand offer to you: the ‘we won’t cut your bills’ Bill.” That is the offer from the Secretary of State: “Vote Conservative, and we promise we won’t cut your energy bills.” No wonder the Back Benchers are despairing. The Government could have done so much. They could have lifted the onshore wind ban to cut energy bills, but they did not. They could have legislated for a proper programme of energy efficiency to cut bills, but they did not. [Interruption.] I will happily give way to the Energy Secretary’s Parliamentary Private Secretary if he would like to intervene.
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
It is a pleasure to close today’s debate on the King’s Speech on behalf of the Government and even more of a joy to be representing Wealden, my constituency, in doing so. There have been fantastic and insightful speeches from Members on both sides of the House—19 in total—and I will do my best to run through all the points raised. These debates are a moment for both anticipation and reflection; we welcomed King Charles to open Parliament for the first time, and looked forward to his reign, while remembering the late Queen and her many decades of public service.
The last time a King opened Parliament was back in 1951. Because I do not sleep much, I glanced through Hansard to see what was discussed then, when the Government’s focus was—as it is now—on protecting prosperity, safeguarding key industries and protecting UK interests at home and abroad. Just like Winston Churchill’s Government seven decades ago, we must turn our minds to similar issues, finding 21st century solutions to age-old questions, many of which were addressed by colleagues today.
Let me turn to my right hon. Friend the Member for Basingstoke (Dame Maria Miller), who has huge experience and secures respect on both sides of the House. It was interesting that she reflected on the political sketch by the right hon. Member for Doncaster North (Edward Miliband), who politicised the energy debate just as he politicised the NHS back when he was running for leader. We were hoping for a grown-up conversation, but unfortunately he turned it into a political sketch—[Interruption.] And he is continuing to do so now, which is a shame.
It was good to hear my right hon. Friend the Member for Basingstoke acknowledge that we are world leaders in offshore wind and other renewables, especially small modular reactors and fusion energy, and to hear about her recent experience in Canada as our trade envoy. She reflected on battery plants and storage, and will be pleased to know that I will publish the battery strategy shortly. She reflected on critical minerals—she knows I published a critical minerals strategy recently—because we cannot have a net zero agenda without them. She also asked about the NPPF; we got a note back to say that it is on its way. Of course, that is not within my remit, but I do not doubt that her words have been acknowledged.
Let me reflect on the comments made by my right hon. Friend the Member for Kingswood (Chris Skidmore) and his tremendous work on the Skidmore review. I agree that we have earned a reputation in the UK as leaders in achieving net zero, and now that reputation needs to be preserved. It is indeed a race, and we started off fast so we need to ensure that we continue ahead of the game. He also reflected on the Inflation Reduction Act, which has changed the game plan—I know that, as the Industry Minister—and the challenges it poses for supply chains. It is unfortunate that this will be his last King’s Speech debate, but I do not doubt that we will hear his voice on this agenda.
The hon. Member for Brent North (Barry Gardiner) talked about cross-party consensus—who can disagree with that?—and about energy bills; a huge amount of work has been done to cover energy costs, and we will continue to provide people with support as we can.
My hon. Friend the Member for Banff and Buchan (David Duguid) talked about long-term decisions. Stability should be at the forefront of our minds, not the short-term decisions with short-term outcomes that seem to be the most popular. He reflected on growing the economy; on energy security; on being measured, which means having a mix of energy in the system; and on the dependence on gas and oil, and ensuring that they are in the mix. He talked about protecting power stations, including the one in his constituency, and about the importance of having oil and gas to ensure that we are not reliant on imported fuel but can rely on ourselves.
The hon. Member for Brighton, Pavilion (Caroline Lucas), gave a speech that was far more ideological than embedded in the reality of people’s lives, and did not reflect at all on our track record on getting to net zero and reducing emissions. I always find it curious that people talk about resilience but are prepared to let other markets boom at the cost of markets being invested in and jobs being grown here in the UK.
My hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), who is a dear friend and an incredibly powerful treasurer of the 1922 committee, spoke about tax-free shopping. I am sure that Treasury Ministers were listening and will respond in due course.
The hon. Member for Washington and Sunderland West (Mrs Hodgson) spoke about Nissan; later I will speak about the investments made by the automotive sector, including Nissan, and some of the challenges not only around energy but fundamentally around supply chains. I have been working with industry and the automotive sector on providing more resilience in supply chains to get the minerals and critical products needed into the UK, so that we can continue to manufacture.
My hon. Friend the Member for Harrow East (Bob Blackman), who is also a member of the 1922 committee, talked about good administration versus having lots of policy. He is absolutely right; we need to ensure that we can administrate well, and if that requires working in collaboration, it must be done. He mentioned the lack of previous investment in nuclear, and said that we need to move at pace to ensure an energy mix in the UK. He must also be commended for his work on tackling homelessness and dealing with leasehold issues.
The hon. Member for Coventry North East (Colleen Fletcher) felt underwhelmed by the policies set out in the King’s Speech. Hopefully she will be overwhelmed by the work now being done by the Government to ensure we deliver for our constituents across the country.
My hon. Friend the Member for North Norfolk (Duncan Baker) talked about Bacton gas terminal, which the Prime Minister visited very recently. My hon. Friend fundamentally believes the site should be the most senior hydrogen hub in the UK. No doubt his campaigning will enable that to be delivered for his constituents.
The hon. Member for Warrington North (Charlotte Nichols) is a fellow member of my Business, Energy and Industrial Strategy Committee. She said that the King’s Speech was not all bad—I always think that is a good place to start. She spoke about mental health and many other issues, but I look forward to continuing to work with her, as we did previously on steel and the supply chain.
Charlotte Nichols
I thank the Minister for giving way. She referred earlier to the politicisation of energy. Unfortunately, the Secretary of State inadvertently misled the House in her own opening remarks with the comments she made about Warrington Council’s exposure in the administration of Together Energy. The £37 million bill she quoted is entirely wrong, something I have had confirmed as one of Warrington’s MPs. Will the Minister take the opportunity to correct the record on behalf of the Secretary of State?
Ms Ghani
I am sure that putting that forward now means that the record will reflect it. If it was not £37 million, I dread to think what it was.
My hon. Friend the Member for Totnes (Anthony Mangnall) made a fantastic comment that maybe all the members of the Business and Trade Committee should be Privy Counsellors—yes, but only if previous members of the BEIS Committee are offered that, too. He spoke about the fact that we should not forget about the growth in our economy—it has grown by 78% since 1990—and the 46% reduction in emissions. We must be positive and promote what we have been able to achieve. He spoke about marine energy and maritime power linking into a local church. I am intrigued—I want to be invited to come by and take a look.
There were contributions from the hon. Member for Nottingham East (Nadia Whittome) and—forgive my pronunciation—the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey). I think it is best that the SNP Members reflect on the points that he raised. The hon. Member for Jarrow (Kate Osborne) spoke, as did the hon. Members for Wakefield (Simon Lightwood) and for Gordon (Richard Thomson). I never thought we would end up on an SNP love story, but we are all going to be thinking about that over the weekend.
I am anxious about how much time I have left to speak. I am closing the debate as a Business and Trade Minister, and have many more opportunities coming up to help ensure that we deliver on growing the economy and achieving net zero. We have a couple of programmes of work that were reflected in the King’s Speech in the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill and the Digital Markets, Competition and Consumers Bill.
Turning to the subject of today’s debate, the Government are already turning the country into a clean energy superpower. “Already” is the important word there, because while the Opposition might try to claim otherwise, this work is well under way. Let me remind the House of the formidable record we are building on. The UK achieved the fastest rate of greenhouse gas emission reductions of all G7 countries, while renewables already generated over 48% of our electricity in the first quarter of this year—the highest ever level. Of course, we know we can and must go further, which is why the UK has one of the world’s most ambitious 2030 targets. However, the Government are also acutely aware that we cannot ask our citizens and businesses to pay undue burdens for achieving our net zero goals, particularly in these challenging economic times. Nor can we ignore the fact that Putin’s war of aggression means that we are living in a more dangerous world with far more complicated supply chains. As the Secretary of State for Energy Security and Net Zero has already explained, it is only right that we reduce our reliance on volatile international energy markets and hostile regimes. She will be doing so through legislation such as the Offshore Petroleum Licensing Bill.
The Opposition talk about strategies and plans, so let me remind the House that the Government have them in abundance. In fact, the Government’s green strategies aim to drive £100 billion of private sector investment into our green industrial base by 2030, supporting around 480,000 jobs by the same date. I am surprised the Opposition are not welcoming that.
However, the Government are not just focusing on words; they are taking action. Between 2020 and 2023, my Department alone supported more than £28 billion of net zero-related inward investment, creating 30,000 jobs. Thanks to our work, the country’s economic geography is also shifting—from clean technology development in the midlands, offshore wind in the north-east and Scotland and turbine manufacturers in Hull, to innovative hydrogen-powered buses in Northern Ireland. With the North sea transition deal, the Government are helping workers, businesses and the supply chain in fossil fuel-related industries to adapt to a net zero future, providing £20 billion of funding to encourage the early deployment of carbon capture, usage and storage, and to unlock private investment and jobs. Whether we are talking about our recently announced plans for carbon capture clusters in the north-west and north-east, the first 15 winning projects to receive investment from the Government’s £240 million net zero hydrogen fund, the port towns that stand to benefit from the £160 million-worth of floating offshore wind manufacturing schemes, or our freeports and investment zones, our policies are creating jobs, reinvigorating communities and opening horizons the length and breadth of the country.
It would be remiss of me not to talk about my own brief, which covers industries and, fundamentally, the automotive, aerospace and maritime sectors. Here again, my Department is playing an instrumental role. We recently announced a joint investment package with Tata Steel, worth £1.25 billion, to replace end-of-life blast furnaces with electric arc furnace steel production. That will preserve steelmaking for generations to come and enable green steel production to take place in the UK. While we are helping manufacturers, including steel producers, to access lower-cost hydrogen through the net zero hydrogen fund, we are also enabling our world-renowned automotive sector to seize the opportunities of the net zero transition. For instance, we have the automotive transformation fund from the Advanced Propulsion Centre, and the Faraday battery challenge. That has unlocked investment into the UK. Stellantis is producing electric vans at its Ellesmere Port plant, the first factory to be dedicated to the manufacture of electric vehicles, BMW Group is investing £600 million to bring two new all-electric Mini models to Oxford by 2026, and Tata has announced a £4 billion investment in Europe’s largest here in the UK. All that shows what our strategies are already providing.
Chris Skidmore
I thank the Minister for making an important point about job creation. As I said in my speech, the net zero review pointed to the 480,000 additional jobs resulting from green industries. When it comes to green steel both in Port Talbot and in Ellesmere Port, and the future of electric arc furnaces, does the Minister agree that, as politicians on both sides of the House, we need to fight the corrosive disinformation that green steel is somehow costing jobs—there would otherwise have been 6,000 job losses in Port Talbot rather than 3,000 potential job transfers—and point out that it is green industries that are keeping jobs alive? If we stick with the status quo, we will simply lose every job.
Ms Ghani
That is a valuable point. The most frustrating aspect of being a Minister is the lack of sufficient time and space to talk about some of the challenges and how we respond to them. If we had not provided support to enable Port Talbot to have those electric arc furnaces, thousands of jobs would have been lost. Unfortunately, however, there are always some people who argue that change inevitably brings challenge, and we get stick on that point. However, our investment means that those jobs are now secure, as are, I believe, more than 10,000 jobs in the supply chain. That will give people the reassurance that they need about their continued ability to produce steel or products in the supply chain.
Jonathan Reynolds
Owing to the importance of this issue, I must add something to the record. As the Minister and the Secretary of State know, electric arc furnaces are not the only way to decarbonise the steel industry. There are examples around the world of the use of ammonia and hydrogen in what is known as the direct reduced iron process, and other technologies are under way. Are we to be the first developed country to lose the capacity to make virgin steel? That appears to be Government policy, but I am not sure that the Minister could deliver the necessary votes for that on her own side of the House. I think she should clarify whether it is indeed Government policy, because she would not say so during yesterday’s exchanges on the urgent question.
Ms Ghani
We were talking about Port Talbot and the change to electric arc furnaces there. There is, of course, the DRI hydrogen option, but it will not come online within the time that is required to provide the change from blast to electric arc furnaces. That was a commercial decision taken, with the unions, at Port Talbot. When a technology involving hydrogen is advanced and can be commercialised, that will no doubt become an option, but we are where we are. People might think we can jump from one to another without a transition, but we are providing support for the transition to support jobs in these communities.
I believe I have until 5 o’clock, but that might distress our colleagues. I will conclude, although I am prepared to continue.
The Minister for Defence Procurement (James Cartlidge)
They are all listening.
Ms Ghani
They are all listening.
Just over 70 years ago, in 1951, Churchill’s Government stood on the cusp of an extraordinary era of innovation that heralded the computer and the space race, and today we are on the edge of a new, equally significant age of green technology and innovation. It is thanks to this Government’s hard work and focus that we are ready to seize the opportunities with both hands as we grow the economy, ensure our energy security and provide a prosperous future for the country and its people. Our policies will turn this country into a green powerhouse, which will not only transform our communities but provide leadership to the world.
Ordered, That the debate be now adjourned.— (Mr Mohindra.)
Debate to be resumed on Monday 13 November.