(1 month ago)
Commons ChamberWith permission, Mr Speaker, I shall make a statement about COP29.
May I start by extending my sympathy to all those affected by Storm Bert? It has been a devastating event for people in different parts of our country, particularly in Wales, and my heart goes out to the families of those who have lost their lives and to all those whose lives have been disrupted.
With permission, Mr Speaker, I also want to take this opportunity to pay tribute to Lord Prescott. He was a fighter for social justice and a champion of the environment. He rightfully has global recognition for his role in negotiating the Kyoto protocol, and he showed how politics can change lives for the better. I send my deepest condolences to Pauline and his family.
The UK attended COP29 to fight for our national interest—speeding up the clean energy transition in the interests of jobs, energy security and economic growth, and tackling the climate crisis for today’s and future generations. In Baku, our message was clear: Britain is back in the business of global climate leadership.
We know that the impacts of the climate crisis know no borders. We have already seen the extreme impacts we can face here in Britain, and we know that if we do not act those impacts will get much worse. That is why, as the Prime Minister said at COP29, there is no national security without climate security. It is precisely because Britain represents only around 1% of annual global emissions that we have to work with others to ensure the remaining 99% of emissions are addressed to protect the British people.
The focus of this COP was on finance for developing countries, because the reality is that unless we persuade developing countries to go down the path of clean energy development, we cannot hope to reduce emissions and prevent climate disaster. Those countries face the triple challenges of needing to invest in the clean energy transition, coping with the costs of climate vulnerability and needing to develop to take their population out of poverty. At the same time, developed countries, including Britain, face extreme pressure on our public finances.
The COP talks are always complex, but those circumstances made this set of talks particularly so. I put on record my thanks to our outstanding team of civil servants who supported me at COP. I was repeatedly struck by the enormous respect they have from so many countries around the world. The UK’s negotiating team was led by Alison Campbell, who is leaving to work with the UN Secretary-General. I want to put on record my special thanks to her in helping us to reach an agreement.
The agreement reached is to provide and mobilise at least $300 billion of climate finance by 2035 for developing countries. Much of that will come from the multilateral development banks, such as the World Bank, which have stepped up to set a target to substantially increase the climate finance they provide. Importantly, for the first time, the agreement reflects a new global landscape, where traditional donors will be joined by big emitters such as China to help finance the transition. That is fair and right.
The UK will decide what our own contribution will be in the context of our spending review and fiscal situation, and that will come from within the UK aid budget. I can inform the House that, if delivered with the same impact as UK climate finance, the $300 billion deal could lead to emissions reductions equivalent to more than 15 times the UK’s annual emissions, as well as helping to protect up to 1 billion people in developing countries from the effects of floods, heatwaves and droughts. Crucially, the agreement will accelerate the global clean energy transition, which offers the prospect of export and economic opportunities here in Britain. Let nobody be in any doubt: this agreement is absolutely in our national interest.
In other respects, the talks were more disappointing. At COP28, the world made a historic agreement to transition away from fossil fuels. That agreement stands, but we did not reach agreement this year on how to take the commitment forward, not because the text put forward was too ambitious, but because it was not ambitious enough. In particular, many developing countries, including the small island states, felt that the text was inadequate given the scale of the climate emergency. Developed countries, including Britain, agreed with that view. That offers an important lesson. Under this Government, Britain is part of a global coalition for ambitious climate action that spans global north and global south—it is at the global centre ground of climate politics. We will seek to build on the agreement at COP30 next year, in Brazil.
At COP29, the UK also made important announcements on countering deforestation, scaling up private finance and nuclear co-operation as part of the clean energy transition. The Prime Minister also announced our nationally determined contribution to reducing emissions by at least 81% by 2035, compared with 1990 levels, following the advice that we received from the independent Climate Change Committee. Let me be clear: that target is right for Britain—for energy security, good jobs and growth.
On the same day as the announcement, ScottishPower and Siemens announced a £1 billion deal to invest in wind manufacturing in Hull. That will boost British manufacturing and support 1,300 good jobs in our industrial heartlands. It shows what the clean energy mission can do for Britain, and builds on the steps that the Government have already taken, which include: lifting the onshore wind ban; giving consent for nearly 2 GW of solar; setting up Great British Energy; delivering a record-breaking renewables auction; kick-starting our carbon capture and hydrogen industries; and driving towards cheaper, cleaner heating through our warm homes plan.
It is in our national interest to use the power of our example to work with others to speed up the clean energy transition globally, just as the Climate Change Act 2008, which was supported by Members from across this House, inspired others to follow our lead. That is why at the G20 in Brazil, the Prime Minister launched the global clean power alliance, along with a number of other countries, to drive forward the transition.
That is just the start of the work that we need to do in the run-up to COP30 to make next year’s talks a success, because the truth is that despite progress over the last two weeks, we are halfway through the decisive decade for limiting warming to 1.5°C, and the world is way off-track. Other countries, such as Brazil, have also announced ambitious NDCs, and in the months ahead, we will continue to push others to go further, faster, on raising ambition, scaling up finance, protecting nature and forests, and driving forward the clean energy transition.
The COP process is tortuous and progress is too slow. However, this Government believe that while multilateralism—in other words, co-operating with others—is hard, it is truly the only way to fight for Britain. Those who say that we should disengage from the negotiations and step off the stage would let down our country, deprive us of a voice and leave future generations paying the price. Despite all the difficulties, at COP29, one truth was overwhelmingly clear: the global transition away from fossil fuels and towards clean energy is happening, and it is unstoppable because clean energy is the route to energy security, unstoppable because it is the economic opportunity of our time, and unstoppable because people in Britain and around the world can see that the climate crisis is here, and that unless we act, things will only get worse.
In less than five months, this Government have shown that we will seize the opportunities of speeding up at home, and have demonstrated climate leadership abroad, in order to deliver energy independence, lower bills, good jobs, economic growth and the security of a stable climate. We are doing all we can to keep the British people safe, now and for generations to come. I commend the statement to the House.
I thank the Secretary of State for advance sight of his statement. I echo his comments on Storm Bert and thank the emergency services for all that they have done to help those in need. I start by passing on my personal condolences to the right hon. Gentleman on the passing of John Prescott. I know that he wanted him to lead the Paris accords in 2015, having admired his work in Kyoto, and I believe that, at the time, he described John as good at “bashing heads together”. I hope that, as the Secretary of State’s opposite number, I can achieve some of that head-bashing that he so clearly valued in John.
In that vein, the Secretary of State has talked a lot about regaining global leadership, but I fear that he is stuck in 2009. He may not want to acknowledge this, but for the past 14 years, we have been a global leader. We are the only major economy to have halved carbon emissions since 1990. In that same time, America’s emissions have stayed the same and China’s have tripled. However, we have seen that countries are not persuaded just by Britain going further, faster; they are persuaded by prosperity, and by living standards. We account for 1% of global emissions, and I fear that if he continues down the path that he has set out, our country will face hardship, and there will be no point in being world-leading because nobody will want to follow our lead. He would make us a warning, not an example to others.
Let us start with what the Secretary of State announced at the conference of the parties. He has set out a new target of cutting our greenhouse gas emissions by 81% by 2035. However, what we did not hear in his statement is how much this will cost the British people. The independent Climate Change Committee says that that target will require people to eat less meat and dairy, take fewer flights, and swap their boilers for heat pumps and their petrol cars for electric vehicles at a pace that will require taxes and mandation. Even the Chair of the Select Committee has acknowledged that people will be forced to change their lives. But the Secretary of State says not to worry, as he will deliver all the savings through energy policy, and those plans will lead to higher growth, a cut in bills, job creation and stronger national security, but when it comes to his plans, none of those things is true. The independent Institute for Fiscal Studies has already said that his climate plans will not lead to growth. The National Energy System Operator’s report shows that his rush for clean power in 2030 will add eye-watering costs to our energy system, and that despite those very expensive costs, it would still leave gas pricing the system around 50% of the time—or it would leave the equivalent of millions of homes in the dark waiting for the wind to blow. I do not think that that is anybody’s idea of energy or national security.
The Secretary of State does not have to take my word for it. The head of offshore wind development at RWE, one of the country’s largest wind developers, has warned that the Secretary of State’s rush to meet his 2030 target will lead to price spikes, with consumers losing out. The chief executive of Octopus has warned about the £6 billion in costs that consumers will have to pay, because the right hon. Gentleman wants to build renewables without reforming the grid. The former head of MI6 has warned the Secretary of State—[Interruption.] This is worth listening to. He said that from the point of view of national security, the Secretary of State is pursuing
“a completely crazy energy policy”.
The Secretary of State’s plans to make our energy expensive and unreliable will see jobs fleeing to more polluting countries, because it is cheap energy and innovation that matter in the race for jobs. We need only ask China, which dominates clean tech supply chains and is the world’s largest polluter. That is where billions of pounds of our taxpayers’ money will be going to pay for his rushed transition—from our country, with all the investment that it has made in clean power, to a country still 60% powered by coal. We are talking about low growth, high bills, jobs lost and even blackouts, for more carbon in the atmosphere. That is the opposite of what he has been promising.
In Baku, while the Secretary of State was signing us up to these targets without talking about what they will do to the lives of British people, he was also signing away billions of pounds of taxpayers’ money. He signed us up to a $300 billion annual climate finance target. I am afraid that it is not credible to say that taxpayers will not have to pay more. They will have to pay more, and they deserve to know how much more. Will he tell us today what that new target will mean for British taxpayers? Considering the increase in the target, the public will rightly question why countries such as Russia and particularly China, now the world’s largest polluter and second largest by historical standards, will not be obliged to pay a penny—I think he tried to insist that they would, but it is very clear that they will not be obliged at all to pay in—while Britain, which has invested billions in cutting its emissions and accounts for only 1% of global emissions, will have to pay more. Will the Secretary of State also set out an assessment of the impact of increased reliance on coal-powered Chinese imports for his 2030 zero carbon plans, and of what that means for global emissions?
The Secretary of State is not being honest with the British public. He promised them £300 off their energy bills by 2030, but just weeks ago, he whipped his Labour MPs to vote down that pledge. He took away the winter fuel payment, despite promising that the elderly would be looked after under his energy policy, and he now says that he can achieve stronger climate targets in a way that will require zero cost from the public. This is not a recipe for climate leadership, but a recipe for higher bills and lost jobs, and it will be a disaster for the British public.
I just remind those on the Front Benches that the reply to a statement should last no longer than five minutes.
Oh dear, oh dear! Let me deal with the shadow Secretary of State’s questions, such as they are. Let us start with our nationally determined contribution, announced at the conference of the parties. It is so interesting that she now opposes it, because the 2035 NDC announced by the Prime Minister is exactly the target that her Government legislated for in 2021, in the sixth carbon budget, which covers 2035. She is now opposing the very target that her Government put into law, and that she claimed, just a few months ago, that she was working towards as Secretary of State.
There is a pattern here, Mr Speaker. Every week, the right hon. Lady takes to Twitter to express her outrage about a policy, asking, “Who on earth could support this?” Every week, someone pops up in her replies and says politely, “You did, just a few months back.” It is not the only time that she has done this. Last week, she came out against the clean heat market mechanism—another policy that she proposed. [Interruption.] She says not, but I have a statement from her from only eight months ago, in which she said that the clean heat market mechanism would be introduced in April 2025, which is exactly what this Government are doing. The truth is that she will leap on any passing bandwagon, even if it means trashing her record.
Let me give the shadow Secretary of State a little lesson about opposition. The job of the Opposition is to oppose the Government, not to oppose themselves. This is where she has ended up: out the window goes any commitment to climate action. She is ignoring the fact that it is a route to energy security, good jobs and lower bills, ignoring the fact that it is backed by business, and ignoring the fact that this country has an honourable tradition of bipartisan consensus on the issue. I am happy to say that the previous Government proposed some ambitious targets, and that COP26 was an important milestone for the world. This is not just irresponsible, and not just crass opportunism; it has helped take the Conservative party down to its worst election defeat in 200 years, so this approach will not work for her.
Let me tell the shadow Secretary of State what the clean energy superpower mission means for Britain. It means cleaning up our power system, so that we do not leave the country exposed to fossil fuels, as the previous Government did. It means new jobs in carbon capture and storage as we decarbonise industry and re-industrialise. It means energy efficiency in homes, meaning lower bills, warmer homes and lower emissions. As for the NESO report that she talked about, I know that it is deeply disappointing to her, but we have an independent report that says that 2030 is achievable—she said that it was not. It also says that it will give us energy security—she says that it will not. It also says that it can lead to lower electricity, which she constantly denies.
The truth about the right hon. Lady is that she has nothing to say. The Conservative party is basically saying, “Stop the world—we want to get off.” That will do nothing for the British people. She has a lot to learn. I am afraid to say that she needs to start reflecting on where her Government went wrong. They went wrong in many different ways, and she does not seem to be learning any lessons.
May I gently say to the shadow Secretary of State that she really should not believe dodgy headlines in The Daily Telegraph? In fact, I am not sure whether headlines in The Daily Telegraph are ever not dodgy, based on what she was quoting. More importantly, though, let me congratulate the Prime Minister on his leadership at the conference of the parties, and the Secretary of State on leading the negotiations, and not least on delivering the £300 billion of climate finance for developing countries. He set out this country’s achievement since the general election; to what extent will the combination of what this country showed at COP and what we have delivered at home since 4 July encourage countries around the world to play their part in addressing the climate crisis?
My hon. Friend asks an important question. Two truths came out of COP: first, the transition is unstoppable and, secondly, it is not going fast enough. There is such a difference from a decade ago—my hon. Friend, who was there with me, is nodding in agreement—because every country knows that the climate crisis is happening and is affecting them. The testimony I heard was like the testimony that we could provide about what people are seeing. Every country knows they have to act, and while they all face constraints in acting, they also know—this is the big change from a decade ago—that it is massively in their economic interests. There is a race on for the good jobs of the future, and the clean energy transition can provide them.
COP29 concluded with a deal that, while welcome, leaves much to be desired. I must stress that we need bolder, more decisive action if we are to face the greatest challenge of our time: the climate crisis. I know that the right hon. Gentleman’s heart is in the right place and has been for many years. We first met in the run-up to COP15 in 2009, and I express my thanks to him for his staunch leadership in the intervening years. I express Lib Dem support for a brave programme of action going forward and our willingness to work with his Department to help the UK step up and seize this opportunity for climate leadership.
While we welcome the Prime Minister’s commitment to ambitious emissions targets for 2035, commitments alone are not enough. Immediate action is needed to insulate homes, reduce energy costs and ensure that no one has to choose between heating and eating. The delay to Labour’s warm homes plan until spring 2025 is unacceptable when millions of people, including 1.2 million pensioners, face a cold and unaffordable winter due to the cut in the winter fuel allowance.
In my South Cotswolds constituency and all across the UK, we have seen at first hand the devastating effects of climate change, and never more so than over the last few days, with floods and storms becoming more frequent and severe. Towns and villages in my constituency, such as Purton, Great Somerford and Cirencester, have been severely affected by flooding, and we need urgent action now to mitigate climate change and help our communities adapt to the likely impacts now and in the future.
I associate myself with the thanks already expressed to the brave men and women of our emergency services in the aftermath of Storm Bert. Climate leadership must prioritise solutions that protect communities and restore nature. Natural flood defences, such as wetlands—
May I finish with a question? Will the Secretary of State commit to including natural flood defences as a central part of the £5.2 billion flood defence spending to ensure that communities like those in the South Cotswolds are better protected from the worsening impacts of climate change while addressing biodiversity loss?
I thank the hon. Lady for her question and support for ambitious action, which is important.
Let me pick out a couple of the points she made. First, the point about the devastating effects of the climate crisis already being apparent is important. Part of the danger is that those effects will end up being the new normal, and we will just think of them as part of life. They are part of life in a sense and, as she said, we need the right flood defences in place and so on, but we also need to realise that those effects will get significantly worse if we do not act. Future generations will, frankly, hold us in infamy, saying, “You knew about the scale of the devastation and had seen a preview of what was to come, and you decided you couldn’t act,” so she is absolutely right.
Secondly, let me gently correct the hon. Lady on the warm homes plan. We are getting on with the warm homes plan; indeed, announcements were made last week about actions that will help over 300,000 families benefit from homes upgrades next year. There were announcements about heat pumps and a whole range of actions to help families do better and lower their energy bills.
I will make one more point, which is part of what the hon. Lady was saying: this is a climate crisis and a nature crisis. It is a climate and biodiversity crisis. It was a bit disappointing that the nature part of the agenda at COP did not get the attention it deserved, and that will be important for COP30 in Brazil.
No one can doubt the leadership that the Prime Minister and the Secretary of State showed in Baku, and they deserve great credit for that. The Secretary of State is right that there is a danger of overselling the achievements of the COP. Developing nations have been critical about the financial agreement that was reached, and the commitments made in Paris on fossil fuels were not followed through, as he said. What are the main barriers right now to getting the action and pace of action that are needed? Does he have confidence that in Rio we will see the real breakthrough that the world is waiting for?
My hon. Friend asks absolutely the right question. The truth on the finance side is that this represents a significant scaling up at a time when developed and developing countries face extreme pressures on the public finances. There is a significant development whereby the flows to multilateral development banks from large emitters, such as China, will now count towards the overall finance goal. That is a big change and a big step forward.
On the transition away from fossil fuels, the barrier is that some countries are worried about what it means for them—that is totally understandable. Some countries think it will be problematic for their prosperity. The truth is that we will just have to make better efforts with the majority of countries that want to see action prevail at next year’s COP, and that will involve hard yards. Finally, we must have a campaign for—this is something we will work on with Brazil—ambitious NDCs because it is crucial that that is the job of the next COP.
I commend to the Secretary of State “The UK Small Island Developing States Strategy” report, which was produced by the International Development Committee just before Parliament was dissolved for the general election. A key focus of that report is the need to support those island states not just at COP, but all the time by the UK being an advocate for their needs and requirements across the international community.
The right hon. Gentleman is absolutely right, and he speaks with customary eloquence on the issue. This is literally an existential issue for the small island states. Their testimony at COP was compelling and deeply distressing, and that is why the finance deal is important. It was not everything they wanted, but it is a step forward.
I welcome the Secretary of State’s statement today and the agreement reached at COP29 in Baku. He and I go back a long way on COP, so we know what it is like when it goes wrong. I particularly welcome the nationally determined contribution to reduce our greenhouse gas emissions by 81% by 2035. Does he agree that the fundamental reason we have leadership on the global stage now, as distinct from what we have had for the past 14 years, is not just because of the target, but because we have a plan? This COP was supposed to be about implementation, and where we lead on implementation, others will follow.
My hon. Friend is right. She was with me at Copenhagen, and I definitely had Copenhagen post-traumatic stress disorder at the talks at various moments in the middle of the night. Her point about the target and actions is absolutely right, and there is global recognition that this Government have upped the pace in the multiple ways I described in my statement, and that is incredibly important. That is also important because business sees it happening and thinks that Britain is a country that is clear about its direction and that they will invest there.
I can only speak for North Norfolk, but a green energy future is exciting for our local economy, especially at Bacton. Just along the coast, villages like Happisburgh are suffering from being part of the fastest eroding coastline in Europe. The Secretary of State touched on coastal erosion in answer to my hon. Friend the Member for South Cotswolds (Dr Savage), but can I push him specifically on how the outcomes of COP will provide reassurance to my residents who are worried about losing their homes to coastal erosion now?
As far as COP29 is concerned, we are speeding up global action. As I described in my statement, this finance deal could mean a reduction equivalent to 15 times the emissions of Britain. That is hard going, but it is the way to reduce the temperature rises that will take place. The world is in danger of busting through 1.5°C and going beyond that. That is why action is so urgent and why this finance deal really matters.
I strongly welcome the Secretary of State’s signing of a new UK-US advanced nuclear technologies agreement at COP. Will he share more details of that agreement, and does he agree that it could form the basis of a much more ambitious agreement between the UK and the US on civil nuclear development?
That is an important agreement and I am glad that my hon. Friend has drawn attention to it. This is about the next generation of nuclear power stations. The truth is—and this applies across clean energy, in nuclear, renewables and so on—that we can learn so much from and work with each other in global and bilateral co-operation. We can work with US and UK companies. There can be huge benefits right across the country.
Last Thursday, the Prime Minister implied that the new wind energy project in Hull would result in lower energy bills for my constituents, but he refused to say by when. When can my constituents and others across the country expect to see the £300 reduction in their bills that the Labour party promised?
The National Energy System Operator report, which is the advice given to us by the independent body, shows that this will lead to lower electricity bills. That is so important, because we get two protections from “Clean Power 2030”: one is lower bills, and the second is that we are protected against the devastating price spikes that affected the hon. Lady’s constituents during the gas price crisis of 2022.
When I consider this sort of issue, I tend to think of my grandchildren and what the world will be like for them in years to come. I listen to my right hon. Friend talk about our achievements over the past five months, and then I listen to the response from the Conservative party, which fills me with horror. Despite what my right hon. Friend says, there were tough negotiations at this COP, and he must be congratulated on the role that he played in achieving the agreements that we got there. How essential is it that we continue with that leadership, considering what could have happened if the Conservatives had stayed in power?
My hon. Friend is right: although we have party political disagreements on some issues, this country has avoided a fraying and splitting of this consensus, as has happened in other countries. The consensus on climate action is so important precisely because of what he has set out: the fate of his grandchildren and all future generations, and the impact on them. I want to work with people across parties on this issue, because the more of a consensus we have, the better it is for the country.
Low-income countries were extremely disappointed by the finance agreements at COP—$300 billion does not come anywhere near the level of need. Critically, there was no clarity on how much of it would be grants, as opposed to loans, which would plunge global south countries further into debt. Does the Secretary of State share my concern about the potential dominance of loans and an overreliance on the private sector, and does he agree that considerable public finance could and should be raised through taxes on the most polluting companies?
I understand why the hon. Lady expresses that disappointment—indeed, a number of developing countries expressed that disappointment. However, I think that this is a considerable scaling-up of resources. That is to state the obvious, because $100 billion was the previous commitment. It is the provision and mobilisation of resources. She is right about the balance between grants and loans, and about the funds that are required for adaptation, but the truth is that public finance on its own will never meet the need. That is why the agreement on carbon markets that was part of this COP is important, and why the mobilisation of private finance, and working on a road map to that mobilisation, which is also part of the agreement, is so important.
I welcome the Secretary of State’s statement and acknowledge that the UK is lucky to have unique resources that put us at the forefront of the energy transition. Does he acknowledge that industrial heartlands such as ours in Doncaster were let down by the last Government, with promise after promise and announcement after announcement, but no delivery? Will he set out what the Labour Government will do to back British industry and, more importantly, coalfields such as those in our constituencies?
My hon. Friend and constituency neighbour is absolutely right about that. This is where the opportunities are huge. For South Yorkshire, there are opportunities around hydrogen, carbon capture and storage, and the jobs in insulating homes. We know that many of our industrial heartlands have been crying out for good jobs and good wages, and they have been crying out for them for a long time. This is the opportunity to make that happen.
COP leaders agreed to triple climate finance to $300 billion a year. The Secretary of State referred to the spending review in his statement, but the Prime Minister signed up to that international commitment. The Secretary of State must know how much the UK will have to pay. Will he tell the House?
That is not the way it works. We set a global total and then it is for individual countries to come forward with their contribution—that is the way it works.
I welcome my right hon. Friend’s statement. My constituency is at the mercy of climate change, as the floods showed at the weekend. It is deeply frustrating for many of my constituents to hear the Opposition fail to grasp the urgency. We are on the frontline of the impact of climate change, but we also want to be on the frontline of the response, so many of my constituents welcome the warm homes plan. What is he doing to ensure that we have the workforce to deliver that plan, particularly in constituencies such as mine that have houses that are quite hard to retrofit?
My hon. Friend makes an important point. We are working—through my Department and the Office for Clean Energy Jobs—with Skills England to ensure that we have that workforce plan. There are huge job opportunities here. We must ensure that we have the workforce plan, and that people have the assurance that work will be properly regulated and they can expect high standards. This is a massive national mission, and we will come forward with more proposals on it in the coming months.
We learned three things from the statement. The first is that the climate finance will come from the existing UK aid budget. Can the Secretary of State reassure the House that the increase in the UK aid budget will be greater than the amount that has gone on climate finance, so that we can be confident that we are not robbing Peter to pay Paul in the developed world? Do the important agreements on deforestation mean that the UK will stop spending almost £11 billion on subsidies to burn trees in England to generate electricity—is that one of the important elements that he talked about on deforestation? He claimed in his statement that GB Energy is set up. Can he tell us where we can go and see it? [Laughter.]
Thanks so much for the support. Let me deal with the hon. Gentleman’s questions in turn. It has always been the case that climate finance is part of the aid budget—that is not some new announcement I have made. Obviously, that is a decision that we make, along with the Foreign Office and other colleagues across Government, about the right balance of resources and where the need is greatest.
As for GB Energy, he knows that it will be headquartered in Aberdeen. We are getting on with setting it up: we have a start-up chair in Juergen Maier, and it is ploughing ahead. We have been in office less than five months, but the legislation is going through, and that will happen.
The hon. Gentleman’s second question was about Drax. The previous Government issued a consultation on that, and we will respond in the months ahead.
The Secretary of State was absolutely right to say at the close of the climate talks that the only way to keep the British people safe from extreme weather and economic disruption is to ensure that the world acts together. That requires funding, but it is clear that the COP in Azerbaijan did not deliver that at the scale needed. The Make Polluters Pay coalition is calling for the big oil companies worldwide, which have made grotesque profits while driving the climate crisis, to fund the required investment at home and abroad. Is that not the fair way to secure the necessary finance?
We obviously have to look at all these issues. These global levies and taxes are always quite complex and difficult things to make happen. We have said that we will support the idea of the maritime levy, but we need to proceed cautiously on these issues, because frankly it is important that the finance is provided, and we will obviously engage in those discussions in the months ahead.
As champions of the North sea, the previous Government underpinned 200,000 jobs right across the UK. What does the Secretary of State say to Offshore Energies UK, which says that the Government’s energy tax has stripped out around £13 billion of investment in the North sea—money that will not be recovered by the anaemic and frankly invisible GB Energy?
We just disagree on the idea that we should not have taxed the unearned profits of the energy companies, which were paid for directly by the British people. If the hon. Gentleman wants to say that we should not have had a windfall tax on the oil and gas companies, he is way out of line with his constituents.
My constituents are very proud that one of our own, Samia Dumbuya, was part of the Future Leaders Network working with the UK Youth Climate Coalition at Baku. I know that the Secretary of State will agree that young people need to be at the heart of what comes next following COP. They welcome the proposed NDCs, but they now need a direct and dedicated place in making them happen. Can he tell us what formal mechanism for the oversight and delivery of the reduction of emissions by 81% by 2035 he envisages for the young people of the UK?
My hon. Friend asks a really important question. I met with some of the youth campaigners and the youth coalition at COP, and I agreed with them. The UK has signed up to a youth clause in our NDC, which is about recognising young people as agents of change when it comes to climate and the need to engage with young people. I would love to talk to my hon. Friend and those young people about how we take those issues forward in the months ahead.
I thank the Secretary of State for his statement and agree that the UK must show global leadership on climate action. Peatlands are the largest natural terrestrial carbon store, yet damaged peatlands are responsible for almost 5% of global anthropogenic CO2 emissions. The UK imports 60% of peat used in horticulture, offshoring carbon emissions abroad. Does the Secretary of State agree that, beyond COP29, we must continue to show global leadership and protect the environment by committing to a phased ban on peat in horticulture?
I will deal with the wider issues of peatlands, because money was allocated in the Budget for these issues through the Department for Environment, Food and Rural Affairs. That is a very important issue, and the wider issue is also important. We also need to make progress at a global level. The other issues are actually a matter for DEFRA, but I will undertake to write to the hon. Lady on them.
I thank the Secretary of State for his statement. I was proud of the constructive role that the UK played in the negotiations, representing our country and also some of the poorest people on the planet, who are at the absolute frontline of climate change, partly due to the emissions from this country. But COP is not without its critics, despite it being the only platform to progress our climate ambitions. How does the Secretary of State think that the process could be improved? In particular, what gentle advice would he give to anyone thinking about taking over the presidency of a major world economy early next year?
I will resist the second half of my hon. Friend’s question, if you don’t mind, Mr Speaker. On the first part of his question, the COP process does have its critics, so I will say a couple of things. First, 15 years ago, when I last attended the COP as Secretary of State in Copenhagen, no country was signed up to net zero. Now, 90% of the world’s GDP is covered by net zero. That is not only because of the COP, but that process of international engagement is important, and it is a forcing mechanism to put world leaders on the spot. Secondly, the reason why it is hard is largely because we have 198 countries all trying to agree, which is difficult. If people can think of improvements to the system, that is great, but that engagement is really important.
Let me get this straight. The Secretary of State is welcoming a conference to deal with CO2 where the host country tried to use it to sell oil and gas deals; where the leaders of those countries that are the major producers of CO2 did not even bother turning up; where we sent 490 civil servants, flying them out to attend the conference; and where the main topic was how to extract money from countries that were guilty of the sin of industrialisation. The Secretary of State has shot out his chest today and said, “We are now leaders in global climate.” It is hard to be a leader when we have no followers, that is all I will say. How can the Secretary of State face the hard-pressed taxpayers of the United Kingdom, who are reeling under the impact of the latest Budget, and expect them to pay out billions to foreign countries—
The right hon. Gentleman and I have been debating these issues for 15 years, and I hazard a guess that we will not end up agreeing. The truth about the climate crisis is that it is the biggest potential cost that future generations can face. There will be trillions of costs across the world and tens and hundreds of billions of costs in the UK if we do not act. All the evidence is that the costs of acting on climate change are much lower than the costs of not acting.
I was in Paris nine years ago when we started the process of negotiation on article 6 of the Paris agreement, which was concluded only with the gavel going down in Baku. It is an important process, ensuring a carbon market through the United Nations framework convention on climate change. How will the UK implement the new article 6 regulations? How will we support other countries in this important work, as we can utilise it for nature-based solutions such as reforestation and afforestation?
My hon. Friend makes a really important point—it may be a slight counter to the right hon. Member for East Antrim (Sammy Wilson). Beneath the headlines, this is where the hard yards of work at COP happened. It has taken 10 years to do these article 6 negotiations and complete them, but this is about voluntary carbon markets. In answer to my hon. Friend’s question, we are consulting on some of the high-integrity principles for that, but again, this will make a difference to developing countries and get funds flowing to them. That is another reason why these COPs are worthwhile.
The Secretary of State is in consensus-building mode. May I offer him the opportunity to address the 10,975 members of my Spelthorne constituency who will lose their winter fuel payments, or the 100,000 pensioners who will be plunged into poverty? Can he explain to them why they are wrong when they see the Government taking money from their pockets in order to be able to have enough money to send overseas?
The hon. Gentleman is wrong to say that. The truth is that the last Government left the public finances in an appalling state, which is why those decisions were made. As I have explained, we have agreed a global total when it comes to climate, but UK contributions are a matter for us and our spending reviews and depend on our fiscal situation.
Does the £1 billion Siemens deal in east Hull go to prove the Government’s commitment to making the UK a clean energy superpower?
My hon. Friend is right about that and has been a great champion on these issues. It shows the opportunities—there are countless opportunities across the world, including in relation to this finance deal, because this will create huge business opportunities. The truth is that Governments all across the world are alive to those opportunities, and I want Britain to win these jobs of the future.
Where is the leadership, and what example does it set, in flying 470 officials and delegates—more than any other western European country—halfway across the world to a climate change jamboree? Can the Secretary of State say what the cost has been in terms of carbon and cash?
There is a long tradition of civil servants playing a really important role at these COPs. In fact, the right hon. Gentleman may be interested to know that we sent 100 fewer civil servants to this COP than to the last one under the previous Government. I absolutely defend public servants doing a brilliant job and going to these COPs. Why? Because it is absolutely in the British national interest.
To echo the comments of my hon. Friend the Member for Walthamstow (Ms Creasy), will my right hon. Friend consider taking a young person—perhaps from a sixth form or a university—along to the next COP meeting as an adviser, to remind our delegation and, indeed, delegations around the world that it is young people’s futures that are on the table?
There are indeed members of the UK Youth Climate Coalition who go to COPs. I do not want to interfere in UKYCC’s processes for picking those people, but my hon. Friend makes an important point about the voice of young people. They represent young people, but they also represent future generations, and hearing how those future generations will regard the actions that we do or do not take is incredibly important.
Diolch, Madam Deputy Speaker. Despite today’s statement noting that it is in the UK’s interest to speed up clean energy, we still need urgent clarity on clean energy projects. Will the Secretary of State finally confirm the Government’s plan for nuclear at Wylfa in my constituency?
We do think that Wylfa has very important prospects. There is an important pipeline of nuclear projects that we are moving forward with, and we look forward to discussions about Wylfa in the coming months.
I commend the Secretary of State for his leadership and his statement, and join him in his bipartisanship. I am happy to recognise the contributions of Theresa May and Boris Johnson, but it says a lot that it takes Labour Members of Parliament to do that because Conservative Front Benchers are running so fast and so far away from those contributions. Does the Secretary of State agree that clean energy is how we achieve energy security, and that energy security is how we achieve national security when our world is in turmoil and this country faces threats like never before?
Both the points that my hon. Friend makes are right. I am happy to acknowledge the role of Theresa May in putting net zero into law, as well as that of Alok Sharma and even Boris Johnson, who fought to champion some of these issues. It is a real shame, and it speaks volumes, that we can say those things and the Conservatives do not.
I agree with the hon. Member for Bournemouth East (Tom Hayes), who talked about there being no national security without energy security. We discovered after Russia’s invasion of Ukraine how dependent the UK was on imported gas. When talking to other countries, did the Government make the case for investment in clean energy, and how it can reduce dependency on malign petrostates such as Russia?
The hon. Gentleman is absolutely right. Russia’s invasion of Ukraine demonstrated the truth, which is that, unfortunately, fossil fuels do not give us energy security. Whether those fossil fuels came from the North sea or were imported, prices shot through the roof; our constituents paid the price, and the Government paid out £94 billion in support. That is why our clean energy superpower mission is so important, to give us the energy security that the Conservatives completely failed to give us.
I commend the Energy Secretary on his work, both in the UK and his global leadership at COP29. Many developing countries continue to face the intensifying effects of the climate crisis. For their sake and for ours, we cannot afford inaction and delay. Can the Secretary of State clarify what specific work will be undertaken to improve global ambitions so that we can transition away from fossil fuels and keep alive the commitment to keep the world’s temperature rise below 1.5°C?
My hon. Friend asks absolutely the right question. That is the work that we will be undertaking with Brazil and other like-minded countries in the year ahead. Next year marks a very important moment: we have to set our nationally determined contributions for 2035, five years on from the last time the world did so. This is such an important moment, because it is how we need to get back on track for keeping temperature rises down. We will be straining every sinew to work with others to make that happen.
It is always a pleasure to hear the Secretary of State committing to a strategy and a plan that looks forward, even though we may have some questions about it. My fear has always been about the funding that has been granted, which is incredibly substantial. How will the Secretary of State ensure that that huge pot of funding is used to achieve the necessary aims, not siphoned off or lost in the process? I say this bearing in mind that pushing a pen around and making a way through red tape can be a very costly endeavour. That money needs to go to the projects that make a difference. How can that be guaranteed before we allocate any more of our hard-pressed taxpayers’ money?
The hon. Gentleman raises a really important point. As much as developing countries wanted the biggest possible sum to support them, they were as worried about the quality of finance and their access to funds as they were about the quantum. Time and again, I heard from developing countries that they wait years to access the available funds, so ensuring that they are spent on the right things and are accessible will be crucial work for the months and years ahead.
I welcome the Secretary of State’s statement and the leadership that this Government showed at COP29, recognising that with the global transition under way, the economic benefits will accrue to those who lead and shape it, rather than shy away from it and remain all too passive in the face of the economic forces that it heralds. Can the Secretary of State set out how we will ensure that we capture those benefits domestically and show the necessary leadership to drive investment, growth and opportunity to every part of the UK, so that we have a coherent economic strategy that touches every part of our nation?
Both parts of what my hon. Friend says are right. Since we contribute only 1% of global emissions, we must work with others to ensure that we tackle this problem. The biggest thing I find in this job is that clarity of purpose and direction makes a huge difference to private investors. Uncertainty is the enemy of investment, while the certainty and direction that this Government are providing is the friend of companies investing in the UK.
Constituencies such as mine and regions such as the north-east once powered the British economy. Does the Secretary of State agree that the leadership we are now showing must secure investment for those regions that have far too often been left behind, and that that investment must include new nuclear for towns such as Hartlepool?
My hon. Friend is absolutely right. This is the route to reindustrialisation, and nuclear is a central part of this Government’s clean energy mission. As I always say, electricity use will at least double by 2050, so we need all the technologies at our disposal.
I welcome my right hon. Friend’s statement, and thank him for showing such leadership on the world stage alongside the Prime Minister. As he mentioned in his statement, Britain must show leadership to get the 99% of emissions contributed by the rest of the world down, with nearly 1 billion people at risk of drought, flooding and heatwaves. Given the climate sceptics who now face him on the Opposition Front Bench, can my right hon. Friend restate for this House why it is in Britain’s interests to help those people?
My hon. Friend is absolutely right. My constituents in Doncaster have faced two supposedly one-in-100-year flooding events over the past 10 years or so, and we know that those events will become much more extreme if we do not act, but the truth is that we cannot act on our own; we must act with others. That is the fundamental case for multilateral engagement and working with others on these climate issues, which the Conservative party used to believe, but no more it seems.
I thank my right hon. Friend for his statement and for his clear global leadership on this issue over many years. A constituent, Michael Jones—a leader in climate change education—attended Baku as part of the COP delegation with a delegation of students from across the UK as part of the climate change challenge, leading on efforts to educate policymakers on the impacts of climate change on the next generation. Does my right hon. Friend agree that the next generation deserve better and a Government who—unlike the Opposition, who flip-flop and show no consistency on the issue—have a firm commitment to deliver a reduction in emissions with the international community?
My hon. Friend is absolutely right. [Interruption.] Conservative Members are chuckling away but the truth is that this is a very serious and important point. The British people want us to act. They want us to act across parties on this issue. They know it is a massive threat to our country because they see it in their daily lives and they see it on the news, and they also know it is the biggest opportunity for our country. We believe it. The Conservatives used to believe it; I am afraid they are way out of step with the British people.