Energy Bill [HL]

Debate between Baroness Bennett of Manor Castle and Baroness Blake of Leeds

Consideration of Commons amendments
Tuesday 12th September 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will speak to Amendment 165A in my name and briefly comment on Amendment 272A in the name of the noble Lord, Lord Teverson, and Amendment 274A in the name of the noble Baroness, Lady Boycott, both of which have the strongest possible Green support.

It is 2023 and we are in a climate emergency. We cannot consider new coal. I am afraid the Minister’s brandishing of heritage railways does not hack it; it is a tiny usage, much as I have no objection to heritage railways. For steel and cement, other nations are moving very quickly away from using coal while we are stuck in the starting gate. On the community energy amendment from the noble Baroness, Lady Boycott, I had the great pleasure formally to move it on Report and we saw hugely strong support not just in your Lordships’ House but all around the country. Tomorrow we will debate the Levelling-up and Regeneration Bill. This is a way to allow communities to take control of their energy supplies and provide the framework to set free huge opportunities up and down the land. It is a no-brainer and I urge your Lordships’ House to vote for both amendments.

Moving chiefly to my Amendment 165A, it is worth revisiting the history of the Bill. Those with a very long memory might think back to 19 July 2022, when it had its Second Reading in your Lordships’ House. That was three Prime Ministers back and I really cannot count how many energy policies we have had from the Government since then. We might be in traditional ping-pong now, but the Government’s positions on so many of the issues in the Energy Bill have bounced back and forward so fast within the Government that it is enough to make any observer dizzy.

One of the last-minute additions was this clause on so-called sustainable aviation fuel. If noble Lords look back to the other place, they will see that the level of debate that occurred around this very significant amendment was really very scant. That is why I have tabled this amendment now, to provide a real opportunity for your Lordships’ House to at least explore the issues and bring out some of the Government’s thinking. I hope we will also hear significant explanations from the other Front Benches on what their thinking is on so-called sustainable aviation fuel. It is often linked with and spoken about as though it is in the same stable as renewable energy, but the fact is, of course, that almost no flights now are powered by sustainable fuel because of supply and cost. Sustainable fuel can be three times as expensive and even for United, the largest consumer of sustainable fuels in the US, last year it comprised less than 1% of its total fuel consumption.

The fact is that so-called sustainable aviation fuels are not a “get out of the limits of this finite planet free card” for the aviation sector. The idea that aviation can keep expanding, or that it should—I shall be coming back to this tomorrow in an amendment to the levelling-up Bill—is, I would say, for the birds: although of course the birds cannot afford the inevitable environmental damage that burning stuff, whatever the stuff is, inflicts.

I can go through some statistics on this. Bain & Company in June published a report assessing the most likely pathways to net zero by 2050 for the aviation sector. The headline was that it can eliminate 70% of emissions from aircraft operations without using electric or hydrogen at scale. Just 5% of emissions reductions come from hydrogen and electric planes in the Bain & Company scenario; the rest is engine efficiency, aircraft efficiency, optimising routes and scaling up so-called sustainable aviation fuels. A 70% reduction is significant, but the Science Based Targets initiative net-zero standard requires a 90% reduction in CO₂ across all scopes by 2050 at the very latest. This report suggests that so-called sustainable aviation fuel can meet a maximum of 60% of global jet fuel demand in 2050 in the best-case scenario.

I think it is worth reflecting very briefly, looking to debates in the other place, that we saw both Labour and Tory MPs going further than this amendment does and calling for government subsidies for the sector. We have to set this in the context of the fact that tax exemptions last year saw the Treasury lose £4.7 billion from the aviation sector: that is calculated by Transport & Environment. That could pay for—gosh—more than 40 new hospitals: does that sound familiar? Or it could cover the cost 10 times over of additional medical staff. It is the equivalent of 1% of the income taxes collected by the Government last year. That is the context.

To come to the detail, my amendment simply addresses subsection (6). It seeks to bring in some systems thinking: an approach that does not look simply at the climate emergency because, as huge and pressing as that is, we are actually in a state where we have exceeded so many other planetary boundaries and we face so many other crises and threats that it is absolutely critical that the Government think in a systemic kind of way. If your Lordships want to think about where things went horribly wrong when we did not do that, Dieselgate is the obvious example. That was a case of corruption and fraud, but behind it was the problem of looking simply at the carbon emissions from diesel and not considering all the other environmental effects.

The current government amendment says that the Secretary of State should look at the contribution to the reduction in greenhouse gases. My amendment keeps that but adds the impact on the food system. Your Lordships’ House often debates the fact that food security is a huge and pressing issue of our age, and if we take land out of use for growing food and turn it to growing stock for aviation fuels, we are creating a potentially huge problem for ourselves.

Proposed new subsection (6)(c) says,

“not negatively impact human, animal or plant health”.

That perhaps comes back to the diesel reference, if we think particularly about human health. Burning stuff produces pollutants—that is just practical reality. However, we must also think about plant health. We often talk about using agricultural waste for these sustainable aviation fuels. That agricultural waste could be going back into the soil to contribute to soil and plant health, bringing us to a situation where we are not depleting our soils and then topping them up with artificial fertilisers, particularly nitrogen produced by the incredibly energy-intensive Haber-Bosch process. This is a systems-thinking, joined-up approach.

Finally, my amendment says,

“not negatively impact the availability of feedstocks for other industrial processes”.

The Minister referred to steel and cement, but all kinds of different, innovative steps are being taken to use all kinds of different materials to replace current fossil fuel production. We need to think about where what we call waste could best go.

I am aware of the desire to move this debate on, so I will not speak much longer, but I have just two final reflections. First, we hear a great deal of talk about waste cooking oil in terms of so-called sustainable fuels. Well, I am afraid that your local chippy is not going to take your private jet flight very far at all—let us be realistic about that. Secondly, my mother’s favourite movie was “The Sound of Music”, in which there is a song that goes:

“Nothing comes from nothing,


Nothing ever could”.

All energy use—all fuel—has environmental and social costs associated with its production and use. We have to think in that systemic, holistic way when we think about how we fuel our sustainable future.

[Baroness Blake of Leeds (Lab)]

My Lords, I will speak to Amendment 187A in my name. The purpose of moving this amendment is straightforward: we have an opportunity to put in place an enforceable plan of action that will deliver the often-mentioned aspirations to deliver energy-efficient homes and properties. I was sure that the Minister would repeat the line that this is unnecessary—and so he did. But I am afraid that the facts tell a different story. The new clause would enable a plan to be in place, working to clear targets to reduce gas supply in homes by 25% and a 10-year programme to retrofit 19 million homes, costed at £6 billion, with local authority and a community base to deliver.

The facts are these. Since 2010, progress to reduce emissions has stalled. The UK is still heavily reliant on fossil fuels for home heating and industry, and has the least energy-efficient housing stock in Europe, according to the IMF. Limited progress on energy-efficiency measures has been made worse by poor public information campaigns and the lack of a long-term plan with clear targets, clear technical explanations and little evidence of a financial and structural plan to go alongside. I do not wish to repeat all the comments that have been made throughout the debates on this Bill. However, we have to acknowledge a lack of grip, of urgency, and of serious explanation of the benefits of determined action.

In terms of tackling emissions and meeting legally binding decarbonisation targets, reducing the need for heat must be a top priority. Benefits include: a reduction in the cost of heating homes—therefore, a very positive help to those suffering from the cost of living crisis; a huge benefit to the health of the population by achieving affordable warmth, potentially saving the NHS £500 million a year; and a major contribution to energy security by reducing our dependence on fossil fuels.

These come on top of the potential of delivering economic benefits, providing skilled jobs and high-wage opportunities. Retrofitting poorly performing homes alone could support 190,000 jobs across all regions. Given the strength of opinion on energy efficiency in so many analyses of progress, I am minded to test the opinion of the House.

Energy Bill [HL]

Debate between Baroness Bennett of Manor Castle and Baroness Blake of Leeds

Report stage
Monday 17th April 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will speak briefly to Amendment 68 in the name of the noble Lord, Lord Whitty, to which I have attached my name. I will also make a couple of other comments on this group.

I can probably predict some of what the Minister will say about the amendment from the noble Lord, Lord Whitty. I note, as I am sure all Members of the House have, that, three days ago, the Government announced £30 million for experimental or first-stage renewable storage projects. We have pump thermal, thermal and compressed air, and a number of other schemes. What is really important about this amendment is the context of the report to Parliament in six months. This is something that is absolutely crucial to the renewables transition, and we really need to see democratic oversight of where it is going.

I particularly make the point that this must be a strategy. Instead of one-off projects here and there, we need a whole integrated system. One thing that is really unconsidered is vehicle-to-grid storage. As we have more and more electric cars, if we have innovation in management we can use those cars as storage when people do not need them for transport. This is a way in which we would need much less resources—the Government are themselves saying that we could save £10 billion by 2050 by reducing our need to generate electricity.

I have just a couple of comments to make on the other amendments in the group. It will not surprise anyone in your Lordships’ House to hear that I oppose Amendment 137 in the name of the noble Lord, Lord Ravensdale. However, its very existence is a demonstration of the way in which new nuclear can be a distraction from the renewables investment that is our energy future.

On the amendments in the name of the noble Lord, Lord Teverson, on electrifying and decarbonising oil and gas facilities, I am afraid that the term “greenwash” has to appear at this point. I have an amendment in a later group asking for no new oil, gas or coal. Any reduction in energy use on a new oil rig because it has some solar panels on top of it does not take us anywhere like where we need to go in this climate emergency.

[Baroness Blake of Leeds (Lab)]

My Lords, I will speak briefly to the amendments in this second group, starting with Amendment 65 from the noble Lord, Lord Teverson. All I can do is echo his clear requests for confirmation that the Government will be more flexible and for clarity around multipurpose interconnectors, particularly with regard to the relationships between Great Britain and other jurisdictions. Will the interconnectors operate in a similar way to the offshore electricity transmission regime? I hope that the Minister will be able to give the reassurance and clarification that the amendments in the name of the noble Lord, Lord Teverson, ask for.

I thank my noble friend Lord Whitty for tabling Amendment 68, on an issue that he feels passionately about and comments on whenever the opportunity arises. We know that, as the electricity network develops new facilities and new renewable sources of generation, there will be a need for more storage capacity. As we have said, there is a non-exhaustive list of technologies, and new ones coming on stream that we might not have considered so far, and so comments must extend beyond batteries. The important part of this amendment to consider is a commitment from the Government to give support to assist with developing the storage capacity that we need.

The further amendments, led by the noble Lord, Lord Teverson, look to remove legislative barriers to the electrification and decarbonisation of oil and gas facilities, and to work towards a green financing framework. We must be mindful of the uncertainty of costs, going forward. When considering these amendments, it is important to consider decarbonisation, which is critical to the Bill, but also affordability and ensuring that energy is within the reach of every person in the country.

We know that the zero-carbon electricity system is possibly 19% cheaper than gas-based facilities, and that UK gas power is currently estimated to be nine times the amount of renewable power. Driving down energy costs means that we need cheap, clean power. We must take this rare opportunity presented by the Bill to ensure that we use the legislative framework to drive measures that will, in the short-term, reach towards action to decarbonise the electricity system and bring down costs.

The passage of the Bill through the House has been quite lengthy, but we really must take the opportunity presented to us to ensure that we make the progress that is required.

Energy Bill [HL]

Debate between Baroness Bennett of Manor Castle and Baroness Blake of Leeds

Committee stage
Monday 16th January 2023 Grand Committee

[Baroness Blake of Leeds (Lab)]

I thank the noble Baroness. This brings to mind the debate we had in the Chamber last week about greenwashing and all the wider implications.

On the amendments in this group, I will talk about the demand and supply side, because it is important that we do not look at this in isolation; we have to think about the impact on people and how we can motivate our populations and communities to get behind the drive towards net zero. That is a very important consideration in these amendments.

The International Energy Agency clearly set out that there must be no new oil and gas fields and no new coal-fired power stations built if the world is to stay within safe limits of global heating and meet the goal of net-zero emissions by 2050. There is now, finally, acknowledgement and recognition that moving away from fossil fuels is the key to achieving greater energy security. This debate has been going on for decades; what a tragedy that it is the horrendous situation in Ukraine that has brought it to a head. Action much sooner would have helped prevent us being in the position we are in today.

The noble Lord, Lord Lilley, talked about a steady transition. The point we are trying to get across is that there is an urgency here. There needs to be a rapid transition if we are to have any chance of moving along in the way that has been outlined, as we need to.

The other issue is how we permanently help households move away from the volatility of fossil fuel prices and reduce the fiscal burden of financial support to households through this and any future energy crisis. We have talked a great deal on other occasions about energy efficiency. We hear about the amounts that the Government are putting into this space but, quite frankly, the demand in this area is much higher than the response that we have had so far. I will not go into all the cost of living implications, but we cannot forget the millions of households that are set to be in fuel poverty this winter. This has to be one of the main drivers in making sure that we get the amendments we need into the Bill so that we can move away from the volatility and expense of fossil fuels.

Amendment 227A in my name and that of my noble friend Lord Lennie seems to me an absolute no-brainer; it is already in train, and we need to move forward on it. I have one very simple question for the Minister: will he support our amendment today?

[Baroness Bennett of Manor Castle (GP)]

I am very interested and pleased that the noble Baroness referred to the International Energy Agency study that I mentioned. The inference could be drawn from her comments that the Labour Party supports a ban on new oil and gas. I know that many people out there listening to us today would be very interested to know whether that is the case. Can the noble Baroness confirm that the Labour Party supports a ban on new oil and gas?

[Baroness Blake of Leeds (Lab)]

It was a nice try, but I think that is without the scope of this debate.

Energy Bill [HL]

Debate between Baroness Bennett of Manor Castle and Baroness Blake of Leeds

Committee stage
Monday 5th September 2022 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly, having attached my name to Amendment 23 in the names of the noble Lord, Lord Lennie—who, of course, by the nature of these structures has not yet spoken on it—and the noble Baroness, Lady Blake of Leeds. I attached my name only to Amendment 23 but Amendments 27 and 35 form something of a package; they all express concern about requiring regulation so that licences must be only

“granted to fit and proper persons”.

As I was contemplating these amendments, I thought of the Oral Question earlier today in which my noble friend Lady Jones of Moulsecoomb took part, which looked at the situation we have now with the water companies in the UK. There is an obvious parallel with the crucial nature of the water companies and their fit and proper behaviour—and, without reopening that debate, their use of resources et cetera. If we are to go forward with carbon capture and storage at scale, it is obviously crucial that it is absolutely trustworthy and reliable, including in financial terms. We are talking about long-term investments for which we need real stability and certainty. The other parallel that occurred to me in contemplating this group was what happened with carbon offsetting—a phrase that has a bad odour in many parts of the world where we have seen a great deal of cowboy behaviour and many problems occurring.

Putting in this explicit “fit and proper persons” test, which, as the noble Lord, Lord Lennie, explained, is drawn from the National Security and Investment Act, is a very good parallel. If we are to securely store this carbon for the long term, in a manner that means the state does not have to step in to try to clean up a mess left by a private company, this is one way of attempting to ensure that that happens.

[Baroness Blake of Leeds (Lab)]

My Lords, it gives me great pleasure to contribute on this set of amendments. I add my admiration and support for my noble friend Lord Foulkes, who has stepped into the breach admirably in the unfortunate absence of my noble friend Lady Liddell. I very much look forward to her return. I also add my thanks to the Minister for giving us time today to discuss this very important Bill; I think all of us recognise its significance at this time. Without reopening the debate from Second Reading, it is clear to us all that there are gaps. We need to take the opportunity to fill those gaps, given the state of crisis that the country is entering.

I want to speak to the amendments in the name of my noble friend Lord Lennie, starting with Amendments 21 and 22. They seek to make it clear that a licence can be granted for transportation or storage, or both if wanted, but that a licence need not be granted for everything. The activities that Clause 7 relates to are

“(a) operating a site for the disposal of carbon dioxide by way of geological storage; (b) providing a service of transporting carbon dioxide by a licensable means of transportation”.

We have to acknowledge the importance of this section of the Bill. Indeed, the Climate Change Committee has referred to all of this area as a necessity, not an option, particularly as we move forward and technologies improve. As drafted, the Bill provides a single licence for both but, given that they are separate activities, we see no reason why individual licences could not be provided for each activity—even if it may be the case that most of the persons carrying out these activities carry out both.

A broad portfolio of technologies is needed to achieve deep emissions reductions, practically and cost effectively; carbon capture and storage is just one of them. In the International Energy Agency’s sustainable development scenario, in which

“global CO₂ emissions from the energy sector fall to zero on a net basis by 2070”

carbon capture and storage

“accounts for nearly 15% of the cumulative reduction in emissions, compared with the Stated Policies Scenario. The contribution grows over time as the technology improves, costs fall and cheaper abatement options in some sectors are exhausted. In 2070, 10.4 Gt of CO2 is captured from across the energy sector”.

This would provide more flexibility for a developing market, with the intention of driving down price within it.

We have already heard just how expensive carbon capture is and how, despite its importance for achieving clean energy, it has been rather slow to take off. According to the IEA, there were only around 20 commercial operations worldwide midway through last year. Commentators often cite carbon capture as being too expensive and unable to compete with wind and solar, given their falling costs over the last decade, but to dismiss the technology on cost grounds would be to ignore its unique strengths, its competitiveness in key sectors and its potential to enter the mainstream of low-carbon solutions. I am pleased that the Government have not done this. However, as we have made clear, we feel that not enough attention has been given to solar and onshore wind, in particular. It is important that we take whatever steps we can to make the market as attractive as possible and encourage licensing from fit and proper persons.

The noble Baroness, Lady Bennett, has already spoken to the next set of amendments, particularly Amendment 23. We feel that the phrase “fit and proper”, having already had a usage in the National Security and Investment Act, is something that we should take very seriously. The aim of these amendments is to put the responsibility on the Secretary of State to personally deem the individual fit and proper.

Perhaps the greatest concern that we have to acknowledge is the environmental risk associated with long-term storage of captured CO_2, as any gradual or catastrophic leakage would likely negate the initial environmental benefits of capturing and storing CO₂ emissions. It is worth itemising those key risks, just so that we have them on record. First, there are technical hazards: we know that the construction of plants needed to capture and process CO₂ can be complex. Whether for new facilities or retrofitting and enabling the separation of CO₂ from other gases, there are inherent technical exposures in the CO₂ separation process relating to the compression and cooling of gases flying through pipes and the use of chemical solvents, for instance.

Secondly, on fire and explosion, as we know, there are lifting, handling and accidental damage risks at carbon capture plants, as is the case at any construction site. When carbon-capture technology is retrofitted to operate in industrial plants or facilities in typically high-hazard locations such as power stations, the risk of accidental damage and subsequent fire and explosion risks to existing assets might be enhanced. As I have stated, the risk of leakage must clearly be the subject of much consideration as we go forward.

Business interruption is another risk that we have to acknowledge in the failure to meet the carbon goals as they are laid out. Pure carbon dioxide gas can be compressed so that it reaches its dense and supercritical phase. In some cases, it can instead be cooled, which transforms it into a liquid state. Mechanical failures or breakdowns affecting this stage of the process could lead to lengthy business interruptions for clients. If the captured CO₂ cannot be transported, this may affect the emissions targets and carbon credits committed to by clients. Therefore, the need to look at all proper precautions is absolutely vital, and the persons tasked with doing this need to have the confidence of the whole sector.

Amendment 24, in the name of my noble friend Lord Lennie, would make regulations related to carbon dioxide transport and storage licence applications subject to the affirmative procedure. Surely it is sensible that Parliament has a full say in any regulations to ensure that licensing is done both to encourage carbon capture and storage and to ensure that it is properly safeguarded.

We have to see this in the context of an enormous possibility to create significant numbers of jobs—the estimate is 50,000 by as soon as 2030—across industry, power, transport and storage networks. It is absolutely essential that the confidence is there and that all the people who will be engaged in the work we intend to do are properly protected wherever possible.