King’s Speech

Baroness Hayman Excerpts

Monday 13th November 2023 Lords Chamber

[Baroness Hayman (CB)]

My Lords, I declare my interests as chair and a director of the associated company Peers for the Planet. I will follow the noble Baroness, Lady Sheehan, in two respects. The first is to start with a positive and welcome the measures in the gracious Speech in relation to smoking and finally achieving a generation that will be smoke-free in this country. The second respect is that I will also be speaking on issues relating to climate and energy.

As the noble Baroness said, there are two separate, and arguably contradictory, elements relating to these issues in the Government’s proposals. First, there is the plan to mandate annual licensing for North Sea oil and gas drilling, which is a specific policy proposal to be underpinned by legislation. In contrast, we have much a more high-level and aspirational commitment to

“seek to attract record levels of investment in renewable energy sources and reform grid connections”

as well as to

“lead action on tackling climate change and biodiversity loss”

and

“support developing countries with their energy transition”.

These are high ambitions, but with no accompanying legislation or specific policy initiatives.

I have grave concerns about both sets of proposals: on the first, whether it is quite simply wrong in principle; and, on the second, whether it is mere words without the necessary substance behind them. Nowhere is there a commitment, which we need so badly, to provide a comprehensive, effective energy transition plan against which government proposals and government progress can be assessed.

I do not dispute, and I do not think anyone does, that we need existing oil and gas now and in the immediate future, and residual amounts once the majority of the grid is decarbonised, but the annual licensing regime proposed by the Government is, according to the FT, unlikely to reverse the dwindling reserves, a poor use of parliamentary time, and

“particularly short-sighted, given the volume of private capital globally now looking for a home in supporting the green transition”.

Last week the United Nations Environment Programme’s powerful Production Gap Report 2023 concluded:

“There is a need for governments to adopt both near- and long-term reduction targets for fossil fuel production and use”.


Yet our Government seem to be going in the opposite direction.

We will not achieve an orderly energy transition and meet ambitious electrification targets based only on top-line commitments and assertions for the future. We need serious plans led by government in partnership with industry, explained properly to the public, that are long-term in nature and accountable in their governance. That means key milestones, robust measures against which progress can be assessed, and clear roles and responsibilities. It means addressing the current woeful absence of comprehensive plans to address energy demand and efficiency, and a serious plan will need to address the fundamental lack of equity in our tax and subsidy regimes for investing in fossil fuels versus renewables and other clean technologies. It cannot be right that oil and gas companies receive a 29% investment allowance, which can rise to 80% for building new infrastructure, whereas renewable energy producers receive no investment allowance whatever. To put it simply, our taxation provisions favour the building of oil rigs over wind farms. I hope that when the Minister responds she will undertake to look at financial provisions to incentivise clean energy and support the move away from high-polluting, expensive and ultimately insecure fossil fuels.

The Prime Minister has committed to putting accountability and long-term decision-making at the heart of his Government. Without a transparent and robust transition plan that drives up renewables and exits fossil fuels, there is neither long-termism nor accountability. Industries and individuals in multiple sectors deserve to understand the Government's proposals for shifting our country’s energy profile and the implications and opportunities in green growth for those industries and individuals. If we wish to continue to lead globally, as the Government say they do, other countries need to see us doing this, and doing it well, at COP 28 and beyond.