(3 days, 6 hours ago)
Lords ChamberWe did that because the conclusion of a contract for 2027-31 ensures that Drax continues to produce a very large amount of energy, which is very important for the country; that it does so under enhanced sustainability requirements; and that it moves from being a baseline producer to a dispatchable producer, with a top level of 27% of output within that contract. There is also the implied understanding that the contract will pave the way towards moving to CCS on the back of the contract, making Drax a net-negative producer in the long term.
My Lords, in 2021, Drax was axed from the S&P green bond index over doubts that its practices were carbon neutral. That decision seemed to be endorsed by that famous “Panorama” programme. I bow to the noble Baroness, Lady Jones of Moulsecoomb, for her detailed knowledge of forestry, but it appears that Drax has been importing wood pellets from old-growth forests, even before accounting for the emissions caused by transporting the biomass here from abroad. Given that this is patently not a green company, does the Minister agree that the subsidies for 27% of Drax’s generation capacity are unwarranted and should be withdrawn? Further, if Drax is found to be non-compliant and closes down, does he also agree that the land and extensive grid connections could be better used in the Government’s SMR programme?
No, I do not agree that the various connections relating to Drax could be better used for an SMR programme, because of the particular location of Drax within the cluster in the north-east of the country, which is particularly important for carbon capture and storage, and, indeed, hydrogen. Drax plays a part in that process in that area. The noble Baroness perhaps ought to read the report that is before us very carefully, because it does not actually say that Drax has sourced old-forest timber. Timber is sourced from third parties, goes into the Drax pellet facility, and may or may not to Drax’s knowledge include old-forest material—which, by the way, is outlawed by the Government of British Columbia. There are a number of questions to answer, but not necessarily for Drax. There are a number of people who perhaps have questions to answer as well.
(4 days, 6 hours ago)
Lords ChamberNo. The particular circumstance surrounding the TFFF itself, as I am sure the noble Lord will be aware, was one of intense UK participation in the setting up of the TFFF. As the noble Lord mentions, we consider it to be an essential and significant initiative as far as the future of forests and biodiversity is concerned across the world. That is why we put so much effort into getting this off the ground and support the continued funding for the operationalisation of that fund. It is just that, at that particular moment, we were not able to produce some additional funding for the TFFF initiative. We very much welcome that other countries have initially put some in. As I have mentioned, it does not mean that the issue is gone and forgotten; it is under continuous review for the future.
My Lords, this might as well have been considered a Defra Question, so I offer my sympathies to the Minister. But here we are, and I am always grateful to be able to ask a DESNZ question, my first to the new Minister. In the COP 30 Statement repeat last week and his initial response today, the Minister did not rule out contributing to the TFFF fund in the future. He may not have had the opportunity to read the letter entitled “Nuclear necessities” in yesterday’s Times, signed by 14 senior academics and luminaries in that industry. Given our country’s current economic situation and the need for large capital investment to meet the Government’s own green targets, can the Minister now rule out funding the TFFF and instead guarantee that future funding will, as the letter requests, prioritise re-establishing our critical domestic infrastructure, perhaps including a medical isotopes reactor and a thermal hydraulics facility—preferably in north Wales?
I very much welcome the noble Baroness to her new position on the Front Bench opposite, and I hope we will have constructive discussions in the future. She underlines the question of the different priorities that are ahead of us at the moment in terms of where to put money at particular junctures. I must admit that I am not a habitual reader of the Times, so the noble Baroness is one step ahead of me there, but I will have a good look at that letter. What she says underlines that at the moment this country has a huge number of sometimes not always well-anticipated demands on our funding—nuclear is one of them, and obviously defence is another—and that clearly has an effect on where you put money at particular points, however much your heart tells you that you would like to do so.