Offshore Petroleum Licensing Bill

Debate between Lord Sharma and Lloyd Russell-Moyle

2nd reading
Monday 22nd January 2024 Commons Chamber

[Sir Alok Sharma]

There was some commentary expressing concern about investment appetite following some of the statements that were made in the autumn, but I think we must acknowledge that, over the last few months, the Government have managed to secure billions of pounds of extra investment committed within clean energy to the UK.

Turning to the carbon intensity test for granting new licences, I have to say again that I am not sure that the Government recognise the whole picture of where we get our imports from. The majority of the gas that the UK imports comes via a pipeline from Norway. It is not imported LNG. The carbon intensity of Norwegian gas production is around half that of UK domestic gas. If that is the test that the Government want to apply in deciding whether to issue new licences, I think they should take into account the average carbon intensity of all imported gas, not just LNG. Given that around 70% of remaining North sea reserves are oil, perhaps the tests should also include the carbon intensity of UK-produced oil, which is higher than the global average.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I put that very point to the Secretary of State in our Select Committee, and her response was that because almost all our oil is exported out of the UK for processing, we do not know what its full carbon intensity is. Is that not a great example of why our oil is not used in Britain and why this will not help British people?

[Sir Alok Sharma]

The Secretary of State has set out her position very clearly and eloquently. I am trying to set out my position on the Bill.

The Government said that the independent Climate Change Committee’s own data showed that we were going to need new oil and gas in the decade ahead, but I respectfully say that that is not the same as saying that new licences should be granted. The weekend before this Bill was originally due to have its Second Reading, the interim chair of the committee put out a tweet to reconfirm the CCC’s position. He wrote that

“@theCCCuk evidence is that continued expansion of new oil and gas reserves is inconsistent with our climate commitments, especially more so in light of the recent Global Stocktake COP agreement we just signed.”

For the reasons that I have outlined, I will not vote for this Bill today, but assuming that it proceeds beyond its Second Reading, I hope that it will be possible to work with like- minded colleagues—and indeed the Government, the Secretary of State and her Ministers—to amend and improve the tests that are required to be met before any new oil and gas production licences are granted in the future.

In conclusion, delivering on the UK’s clean energy transition matters on many levels: for jobs, for inward investment, for lower bills, for real energy security and of course for the environment. We see the impacts of the changing climate around us daily: 2023 was the hottest year on record globally, and in recent weeks many people have faced flooding again in our country, including in my own constituency. We really should not need any more wake-up calls to put aside the distractions and act with the urgency that the situation demands.

Oral Answers to Questions

Debate between Lord Sharma and Lloyd Russell-Moyle

Wednesday 9th June 2021 Commons Chamber

[Alok Sharma]

May I commend my hon. Friend for all the work that he is doing in Dudley on supporting the local economy and green jobs? As I set out earlier, I co-chaired the G7 climate and environment Ministers meeting, which came forward with some ambitious commitments.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

The world is not currently on track to meet our Paris targets, is it? The current pledges only add up to less than 10% of emissions; we need 45% to meet the target. In the last parliamentary Session, 109 MPs signed the climate and ecological emergency Bill. When it is reintroduced, will the Government give time to debate it so that, as we did with the Climate Change Act 2008, we can lead the world on legislation, not just follow?

[Alok Sharma]

I would recommend that the hon. Gentleman talks to the Leader of the House on the matter of the timetabling of the debates and other events in the House. I would also say to him that we are working very hard and pressing all the big emitters to ensure that they come forward with the ambition that is required to be able to halve emissions by 2030.