Offshore Petroleum Licensing Bill

Debate between Lord Sharma and Graham Stuart

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Sir Alok Sharma]

I have listened intently to the Minister and I welcome his willingness to work together on the issue of flaring and venting. What I did not hear from him was the clarity that I wanted on whether Government would look to introducing an amendment similar to amendment 12 in the other place. Perhaps that is something we can discuss before the Bill returns to this House.

[Graham Stuart]

indicated assent.

[Sir Alok Sharma]

I am delighted to see the Minister nodding. I would just point out that even if the Government do not support a similar amendment in the other place, I am fairly confident that a similar amendment will be moved and I expect supported in the other place. This place will then have the opportunity to opine on that particular amendment, so I will not divide the Committee on this occasion. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 10, page 1, line 6, at end insert—

“(aa) the just transition test (see section 4ZD)”.—(Dave Doogan.)

This paving amendment, together with Amendment 11, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

COP28

Debate between Lord Sharma and Graham Stuart

Thursday 14th December 2023 Commons Chamber

[Graham Stuart]

I thank the right hon. Gentleman for his questions. I welcome what he said about the overall COP result and the need to celebrate it and build on it, and the fact that we need to ensure actions match words in this critical decade. That was one of the things we were wrestling with most, because new NDCs for 2035 are being worked on now for announcement ahead of the Belém COP in the Amazon in 2025, but it is in this decade that we need to bend the curve further. It is absolutely right that we do so.

The right hon. Gentleman has focused on performance, and I am pleased to say that this Government have met every single carbon budget to date. The only major targets set on climate change in this country that have been failed were—let me think—the target of 10% renewables by 2010, set by the Government of which the right hon. Gentleman was a member. The target of a 20% reduction in emissions by 2010, again set by the Government in which the right hon. Gentleman served, was also failed. Every single carbon budget for which this Government have been responsible since my then party leader became the first leader to call for the Climate Change Act 2008 has been met. Our record is without parallel, and I will not have it trash-talked down by the right hon. Gentleman, whose record in government is so at odds with the words he uses.

On oil and gas, we are a net importer. We are transitioning; as I have set out, we are reducing our emissions faster than any other major economy on this planet. None the less, according to the Climate Change Committee, about 25% of our power will come from oil and gas even in 2050. We will be using mitigation technologies to offset that, but the idea that we should replace domestically produced gas with imported gas with four times the embedded emissions, when it will make no difference to our consumption, is environmental nonsense. That is why we are standing up for the 200,000 people who work in our oil and gas industry as it transitions; it is why we support the £50 billion in taxes that comes from that industry; and it is why we must retain the expertise of people in the sector going forward. The Labour party puts at risk our net zero transition—a transition that it did not set out on properly when it was in government, and that this Government are delivering on. As I said, we have met all our carbon budgets to date.

I welcome the right hon. Gentleman’s point about loss and damage. I assure him and the House that we will meet our target of £11.6 billion in climate finance on the original timetable set out by the Prime Minister. The Prime Minister came to COP, personally committed and passionate about ensuring that nature and forests—on which we have been a leader—were championed at that COP. Hopefully, I will be able to give more detail about that when answering other questions. As we move into the coming year ahead of the Baku COP, we will focus on a new, collective, quantified financial goal. The Prime Minister, with his focus and expertise, will ensure that the UK is an absolute leader in getting that right, amplifying the billions we have today into the trillions we need tomorrow.

[Sir Alok Sharma (Reading West) (Con)]

I agree that we saw significant progress at COP28, particularly the agreement on transitioning away from fossil fuels in the energy system. However, that agreement and all previous agreements are literally just words on a page; they will come to fruition only if all countries follow through in their domestic policies.

The Minister talked about raising the torch to inspire others. Once again, will he please review the plan to issue these annual oil and gas licences, and consider whether they are consistent with the international commitments we have made? Secondly, will he ask our right hon. Friend the Chancellor to urgently review the tax regime that gives significant subsidies to new oil and gas projects? This is a matter of trust. The Minister talked about the voices of the most climate vulnerable; they will be listening and watching, and they want to see action, not just from the UK Government but from every Government.

Oral Answers to Questions

Debate between Lord Sharma and Graham Stuart

Tuesday 18th April 2023 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

Our “Powering up Britain” plan seizes opportunities from our transition to a decarbonised energy system. Our policies, backed by billions of pounds of Government funding, will leverage around £100 billion of private investment and support up to 480,000 jobs in 2030. My right hon. Friend is absolutely right to highlight the importance of unlocking that private investment if we are to deliver our net zero ambitions.

[Sir Alok Sharma]

One of the ways to ensure more private sector investment is to support UK companies to export to key markets. With that in mind, will the Minister update the House on any discussions between the UK and the US Governments on critical minerals? Is he confident that there will be an agreement between the UK and the US on critical minerals, allowing UK companies to gain access to the financial support available in the Inflation Reduction Act, on which other blocs such as the European Union are already doing deals?

[Graham Stuart]

I thank my right hon. Friend for his question. He shares my enthusiasm for leading the world in meeting our net zero challenge and, by doing so, developing technologies and then being able to export those solutions. He is right to highlight issues following the Inflation Reduction Act in the United States, and making sure that in the negotiations with the US and other partners, critical minerals and other issues are dealt with. We are engaging solidly and I know my right hon. Friend was in Japan only last week, talking to Secretary Kerry about that point.

Powering Up Britain

Debate between Lord Sharma and Graham Stuart

Thursday 30th March 2023 Commons Chamber

[Graham Stuart]

The hon. Gentleman’s party of course opposes nuclear, despite the opportunity it provides to this country, and it means that Scotland does not benefit as it should. He talked about pumped hydro, and I would be happy to meet him to discuss that further.

We are the world leader in tidal energy, although we would be hard pushed to understand that from the hon. Gentleman. We have put a ringfenced number on that, and budgets can be changed. The budgets were set on the basis of those projects that were ready and were coming forward. As that changes through this year, as I very much hope it will, we have the flexibility to change those budgets upwards appropriately. Like him, I believe that tidal has a great future, and I love the fact that we are the global leader. There are many jobs in Scotland and around the rest of the country from it.

On carbon capture and storage, this is a major announcement today. I am delighted about the eight projects for carbon capture that have come forward as part of track 1. Today, we have launched track 2, and we have said in the papers, as the hon. Gentleman will be delighted to hear, that we think the Scottish cluster—and Acorn—and Viking in the Humber are the two best placed at the moment to go ahead, although there will be a competition and we are opening that now. We will be having an extension of track 1, we will be having track 2 and we are cracking on with it. I very much look forward to seeing what the Scottish cluster has to offer, because I know it is particularly well prepared, and that is why it was not a reserve, but the reserve in our track 1 process.

[Sir Alok Sharma (Reading West) (Con)]

Mr Deputy Speaker, thank you for calling me. Could I start by saying that I welcome the announcements that have been made? I think this does move us forward on the road to decarbonising our economy. I want to thank the Minister and particularly his officials for all of the work that has gone into this and the thousands of pages that have now been published. He made a really important point when he talked about how

“investment will be key to our success”.

I could not agree more. I agree with him that, over the last 10 or 12 years, we have managed to attract tens of billions of pounds of private sector investment, but we have to deal with the world as we find it now. The reality is that the US, the EU and other nations are speeding up and attracting billions and billions of private sector investment right now. Why are we waiting until the autumn to respond to that? Do we not need to speed up and respond now to the Inflation Reduction Act and measures by other nations?

[Graham Stuart]

I thank my right hon. Friend, and I pay tribute to him for his role as COP President and all the leadership he has given in this area. He is absolutely right to highlight the investment competition, but as I think The Economist mentioned last week, the US approach, with its direct subsidy regime, is not as effective—not as cost-effective—as the UK regime. I am confident in our system, and we are rolling this forward. We have attracted £50 billion of green investment from 2021 to 2022. [Interruption.] Since 2010—when the right hon. Member for Doncaster North, who does not stop chuntering, left power, fortunately—we have had 50% more expenditure per share of GDP in this country than in the US, and we are opening up today the policies to ensure that that continues. My right hon. Friend will be delighted to learn that the CBI has said:

“The package of measures announced by the government represents a gear shift to boost energy security, reduce household bills and re-establish the UK’s credentials as a leader in green technologies.”

That is the CBI speaking for British business, and I believe that the policies today will deliver implementation, which is our main aim as we go forward.