Net-zero Test for New Policies
Baroness Hayman Excerpts(2 years, 11 months ago)
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Baroness Hayman
To ask Her Majesty’s Government what assessment they have made of the letter from the Confederation of British Industry, Trades Union Congress and others, to the Prime Minister on 3 December 2021; and in particular the recommendation to establish “a new overarching Net Zero Test for new policies”.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, the Government are ensuring that decision-making across government is aligned to deliver net zero. This includes establishing two Cabinet committees to co-ordinate action across government and strengthening official-level governance. The Net Zero Strategy includes a commitment to:
“Ensure that decisions taken on government spending are informed by their impact on meeting net zero.”
The Government have also committed to publishing
“an annual progress update against a set of key indicators for achieving our climate goals.”
Baroness Hayman (CB)
My Lords, I declare my interests as set out in the register. I am grateful to the Minister for that Answer, but it is very similar to the Answer he gave me some months ago when I asked about the recommendation that the Climate Change Committee made to Parliament that there should be a net-zero test on all government policies. Last month that recommendation was endorsed in a letter to the Prime Minister by the CBI, the TUC, UK corporate leaders’ groups and others. They see the benefits of a comprehensive approach not only in achieving our net-zero targets but in providing a coherent and transparent framework from government for the efforts of business and industry to fuel the green growth we so badly need. Will the Government now accept the advice they have been given so broadly?
Lord Callanan (Con)
I thank the noble Baroness, but the reason my Answer was very similar to a few months ago was that the Question was very similar to the one she asked me a few months ago. We have taken new approaches to embed net zero in spending decisions, including requiring departments to include the greenhouse gas emissions of their spending review bids and their impact on meeting carbon budgets and net zero. There is a huge amount of co-ordination taking place across government and between this Government and the devolved Administrations in helping us to meet our goals.
Drax Wood Pellets
Baroness Hayman Excerpts(3 years ago)
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Lord Callanan (Con)
The noble Lord gives me a great cue to talk about the contracts for difference scheme that we launched just this morning, which for the first time allows tidal power to bid. I completely agree with the noble Lord, and we are doing it.
Baroness Hayman (CB)
The Minister mentioned the contracts for difference, which include onshore wind. As he knows from the Bill that we discussed two Fridays ago, there are still planning issues with onshore wind development, particularly with replacement of current onshore wind. Will the Government look a little more sympathetically at supporting my Bill?
Onshore Wind Bill [HL]
Baroness Hayman ExcerptsFriday 19th November 2021
(3 years, 1 month ago)
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Baroness Hayman (CB)
My Lords, I declare my interest as co-chair of Peers for the Planet and thank everyone who has put down their name to speak in today’s debate. I also express my gratitude to RenewableUK for its excellent briefing session for me and colleagues on the Bill.
In their net-zero strategy, the Government confirmed that a mix of renewables would be needed to achieve their 2035 goal of decarbonisation of the power sector through
“40GW of offshore wind by 2030, with more onshore, solar, and other renewables”.
The strategy also stated that it would:
“Ensure the planning system can support the deployment of low carbon energy infrastructure”.
The Bill before the House today is simple and straightforward—it is basically one clause—and it aims to support the Government’s policies as set out in those quotations by requiring the Government to amend planning guidance to enable local authorities to grant more onshore wind applications for the purpose of meeting the UK’s carbon targets.
We need renewable energy of all types. The Government have set ambitious targets for offshore wind and have plans for nuclear, but they have not yet set a target for onshore wind and there are real obstacles to this in the planning system.
The Climate Change Committee’s progress report to Parliament highlighted this policy gap, stating:
“While onshore wind and solar are now eligible for CfDs”—
contracts for difference—
“there is no clear medium- to long-term ambition.”
It went on to highlight as a priority recommendation for 2022 to:
“Address potential barriers to deploying and using low-carbon generation at scale (e.g. the planning and consenting regime for renewables and networks, exposure to climate risks) and, with Ofgem, develop a framework under which sufficient supply resilience can be ensured.”
Onshore wind is part of the renewable mix we depend on at the moment. Between April and June 2020, renewables generated nearly 45% of the UK’s electricity, with onshore wind generating 20% of that, but that will need to increase if the Government are to meet their targets.
Previously, contracts for difference did not include onshore wind, a problem addressed in the previous Bill I brought before your Lordships’ House. That issue has now been resolved—albeit in the short term, because there is still more work to be done regarding frequency of auctions—with the Government including onshore wind in the next contracts for difference allocation round.
Given the practicalities of geography of our country, most of the most suitable sites for future onshore wind may well be in Scotland, where the windiest sites are, but England and Wales will still have a contribution to make in providing onshore wind in the right places. However, barriers in our planning system mean that we are not playing our part at the moment, with planning authorities consenting to less than half the annual onshore wind capacity needed for us to remain on track to meet net zero by 2050.
I absolutely understand that there are those who have anxieties about onshore wind in the wrong places. I want to make it clear that this is not a Bill that aims to dictate to local authorities that they must approve onshore wind, but it is an attempt to provide a more balanced approach to allow them to approve projects in a way much more in line with the normal planning approval process for other renewables and infrastructure more generally.
Current guidance is based on the 2015 ministerial Statement and requires that local planning authorities should grant planning permission for onshore wind developments only if the development site is an area identified as suitable for wind energy development—as is absolutely right—in a local or neighbourhood plan and, crucially, if it can be demonstrated that the concerns of the local community have been fully addressed and the proposal has its full backing. This means that a wind farm cannot receive planning permission unless it has the unanimous support of the local community, so that one recalcitrant person in a community can stand in the way of a development that everyone else wants.
The change in guidance in 2015 has led to a dramatic decline in onshore wind applications. According to government figures, there were eight applications for onshore wind projects in the period 2016-20, compared with 237 between 2011 and 2015—a 96% decrease.
Clause 1 of my Bill seeks to move us from the current situation and take us back to a framework that balances suitability and ensures that decisions can be made at a local level in a way that industry understands. It is neither fair nor sensible to have a system that makes it much harder to develop onshore wind compared with other renewables.
The ministerial Statement which gave rise to the current regime was based on a perception of wide-scale public opposition to wind farms, but times have changed since 2015 and there is now far greater public awareness of the need for our energy sector to be decarbonised. With that awareness of the climate crisis we face, public support for onshore wind has grown. A July 2021 Survation poll found that 70% of the public support the development of onshore wind and 83% support a less punitive planning system.
In October, a European Climate Foundation poll found that 67% of people would support the construction of a wind farm onshore near where they actually live—and from an environmental perspective, things have moved on, too. A lot has been learned about how developments can fit in with nature and the local environment. Environmental NGOs such as the RSPB and Friends of the Earth support planning reform, as they recognise the essential role of renewable energy in addressing climate change, with the RSPB saying that
“we believe this growth can be achieved in harmony with, rather than at the expense of, the natural environment”.
With thorough environmental impact assessment, locating sites away from sensitive sites or important migration routes, and developers working closely with local communities, as I believe happens in Scotland, it is possible to find a balance and ensure that developments are compatible with the landscape and have community support. Renewable UK, in its Onshore Wind Prospectus, highlights the potential benefits of wind farms, such as peatland restoration, wildflower meadow creation, community benefit funds and improvement to outdoor access and recreation facilities. This is not just theory. Cornwall Council’s climate emergency development plan demonstrates how this balance can be achieved by allocating suitable areas for onshore wind, in consultation with the local community. This Bill would ensure guidance that encourages this line of approach.
The Bill is not concerned only with changing the guidance in relation to new sites. Clause 1(2)(c) covers the important issue of repowering existing wind farms. We urgently need a policy environment that supports this. If we cannot repower existing wind farms, we risk losing 8 gigawatts of existing onshore wind capacity when they come to the end of their lives. So we also need a planning system that supports the replacement of existing turbines with modern, more powerful and more cost-efficient ones. Can the Minister comment on that point when he replies? I know that he is acutely aware that this is the critical decade for climate, and I hope he will agree that we need a different approach to planning for onshore wind.
My Bill concentrates on the net-zero imperative for a more balanced planning regime, but there are also economic benefits of onshore wind, which is significantly cheaper than offshore wind and could help support the Government’s levelling-up agenda, as many of the windiest places are located in rural or less affluent parts of the UK. Renewable UK has published an Onshore Wind Prospectus, urging the Government to set a target for onshore wind of 30 gigawatts by 2030, to run annual contracts for difference auctions and to reform Ofgem—particularly to include net zero in its remit. Renewable UK estimates that this additional onshore wind capacity would boost a green recovery by providing £45 billion of gross value added to the UK economy; 57,000 full-time jobs, which would help support a just transition; 60 million tonnes of CO2 removal, equivalent to 1 million cars off the road; and £16.3 billion paid back to consumers through £25 per year given back to each household on their energy bills.
To conclude, we need a clear policy from government to help achieve our net-zero targets, give long-term certainty and clarity to investors and reduce bills for consumers through the cheapest form of renewable energy, onshore wind. I hope that my Bill is a first step to setting out a clear medium to long-term ambition for onshore wind and addressing the barriers to deployment of low-carbon generation at scale, as recommended by the Climate Change Committee. I look forward very much to the contributions of noble Lords and hope very much for a positive response from the Minister. I beg to move.
Lord Kerr of Kinlochard (CB)
I think I need to declare an interest and do so very explicitly. The noble Baroness, Lady Sheehan, referred to Scottish Power. I am a director of Scottish Power, which operates 40 wind farms and generates about 2.8 gigawatts at the moment. All our generation is green. When I joined the board, we had two large coal-fired stations and a lot of small combined-cycle gas turbine stations. We have sold the gas stations and closed the coal-fired stations. Between 2020 and 2025, we plan to invest some £3.7 billion in onshore renewable generation—wind, solar and battery—and we have a 3-gigawatt, UK-wide renewable future project pipeline. We also have offshore wind farms.
I say all that because although I cannot match the expertise of those who have already spoken—particularly the noble Baronesses, Lady Worthington and Lady Hayman—I want to be transparent about my interests and establish some credential for what I am going to say about national policy. I know a little bit about what I am talking about.
I very much congratulate the noble Baroness, Lady Hayman, on her Bill. It is badly needed. I could argue that, for example, it would be good to see Clause 1 refer to installing battery storage on wind farms with a single connection point to improve flexibility. I might similarly suggest a reference to installing photovoltaic solar capacity on existing wind farm sites. I might also query the inclusion of Wales within the scope of the Bill because, in my experience, planning works better in Wales.
Baroness Hayman (CB)
If the noble Lord will forgive me, the Bill states that it applies to England and Wales. I am advised by the Table Office and the Public Bill Office that this is a convention—that, in fact, the devolution arrangements mean that the planning regime in Wales is for Wales, just as the one in Scotland is for Scotland; and that, in practice, this Bill would apply only to England. I apologise; it was not my choice.
Lord Kerr of Kinlochard (CB)
I was puzzled because planning is a devolved function in Scotland, Wales and Northern Ireland.
However, those are small points. The big point about this Bill is Clause 1(1), of course, which calls for a review. The present system—or, rather, the lack of any system—for planning applications in England has created a paralysis that, if prolonged, will inevitably mean the country missing the target of net zero by 2035. My company’s onshore wind programme pipeline is heavily weighted to Scotland, Wales and Northern Ireland because, since 2015, the Government have washed their hands of the approval process in England, leaving it entirely to local opinion. As the noble Baroness, Lady Hayman, said, a single local objection sinks a proposal or delays it sine die. Open-ended consenting timelines that are five to 10 years long and often end without consent obviously deter investment. Between 2011 and 2015, 435 turbines were erected on 108 sites. However, as the noble Baroness said, between 2016 and 2020, applications went down by 96%. Only 16 turbines were permitted in those five years.
This really matters. The analysis I have seen suggests that, to reach net zero by 2035, the country will need a fourfold increase in offshore generation, a doubling of solar generation and a trebling of onshore wind. The Climate Change Committee says that the onshore wind capacity, now some 14 gigawatts, some of which is nearing the end of its operational life, will need to be about 35 gigawatts. This means new capacity of about 1.25 gigawatts a year. Currently, we are installing about 600 megawatts a year, very little of it in England, so we need to go twice as fast as we are now. We will not manage that unless the paralysis of planning in England comes to an end. That is why this Bill is so important and why the Government should welcome it and get behind it. I really hope they do. It is all very well the Government puffing our legally binding targets. If you will the end, you should will the means.
Of course local opinion matters, but going for 30 gigawatts by 2030 would create 30,000 full-time construction jobs and 30,000 full-time operating jobs. We can all think of communities across England, not least those where the Government want to see levelling up, where such jobs would be welcome. Currently, it does not and cannot happen in England because a single objection kills a proposal. Local unanimity is needed, so applications are not made and jobs are not created. Without a predictable future project pipeline order book, supply chains maximising UK content and cutting costs cannot be created. If all this persists, the decarbonisation targets will not and cannot be met.
Pace the Prime Minister, we really cannot have our cake and eat it. One cannot be proudly green, decisive and determinant—rhetorically—and refuse to get one’s hands dirty about delivery. One cannot be laissez faire when one is surely bound by one’s target. One cannot just leave it to one’s successors. If I were to be undiplomatic, which is unthinkable, I would say that that would be almost as hypocritical as—
Baroness Hayman (CB)
My Lords, I am extremely grateful to everyone who has taken part in the debate on the Bill. Normally on these occasions, we say that we are grateful to everyone, including the people who stood up with objections and argued against the Bill. There were no such objections in the debate today, and I think that is a reflection of the change in public attitudes to which many contributors have alluded.
I also thank the Minister as there was much to welcome in what he said: the issue around contracts for difference and the frequency of auctions; the acceptance that we need a sustained increase in onshore wind; the understanding that planning regulations at the moment are not, we might say, optimal; and the balance he described between environmental issues, landscape and community being—he did not say it but I will—out of kilter with the Government’s overall recognition of, and commitment to, the need to increase onshore wind.
It is a matter of whether we put our faith in the planning Bill, which has been an awfully long time coming and had several setbacks along the way, or whether we look at something that comes “prepared earlier” and fit for purpose to address the specific problem. Having listened to what he said, and to the suggestions of the noble Lord, Lord Kerr, we can improve this Bill, get it through and make it a valuable contribution to what has to be done. In the meantime, I will review very carefully what the Minister said, which was extremely helpful on a number of fronts.
Net-zero Emissions Target: Fossil Fuel Extraction Projects
Baroness Hayman Excerpts(3 years, 1 month ago)
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Lord Callanan (Con)
It is strange; I thought the Liberal Democrats were in favour of local planning control—obviously not in these particular cases. As the noble Lord is aware, that application is subject to an application in the Court of Appeal at the moment, and therefore I cannot comment on it.
Baroness Hayman (CB)
My Lords, I declare my interests as set out in the register. The Prime Minister said in the Statement we will discuss later:
“This is the moment when we must turn words into action.”
Is it not also the moment when we need to adopt a consistent and transparent stance on all new fossil fuel projects? Would the Minister agree that the Government would be aided in this if they adopted the recommendation of the Climate Change Committee to have a net-zero test against all new policies and over all new departments?
Lord Callanan (Con)
The noble Baroness makes an important point. We are indeed following the advice of the Climate Change Committee, which has accepted the need for oil and gas as we proceed to net zero. I remind the noble Baroness that we have the fastest decarbonisation rate of any G7 country. So we are proceeding on the path to decarbonisation, but is unrealistic to expect that we can just turn off the oil and gas supplies tomorrow.
Trade Policy: Environmental Considerations
Baroness Hayman Excerpts(3 years, 2 months ago)
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Lord Grimstone of Boscobel (Con)
My noble friend makes some excellent points. I wish I had made his point on lamb myself, so I thank him for that, and for drawing the House’s attention to the agreement in principle with New Zealand being reached, as announced today. The environmental chapter of that agreement will break new ground for the UK and New Zealand in supporting our shared climate and environment goals, clean growth and the transition to a net-zero economy. I am pleased that the mood of the House is to welcome the approval in principle of this very important agreement.
Baroness Hayman (CB)
My Lords, I remind the House of my interests, as set out in the register. The Minister will recall the discussions we had on these issues during the passage of the Trade Bill through this House. In his comments then, and today, he was reassuring about government policies in this area, yet government practice on the Australia deal has been far from reassuring. I reiterate the plea made by the noble Lord, Lord Purvis of Tweed, and ask the Minister whether the Government will be fully transparent and open about the terms of both the Australia and New Zealand deals to allow the scrutiny of the House, of which he is so flattering.
Lord Grimstone of Boscobel (Con)
The noble Baroness is right to draw attention to scrutiny. I am always happy to repeat our commitment to scrutiny from the Dispatch Box. Both the Australia and New Zealand agreements are at the in-principle stage, at the moment. The full texts will be published in due course. They will be made available to the House in good time and will be scrutinised by the TAC and by your Lordships’ International Agreements Committee. We will make sure that there is time for all those processes to be completed thoroughly and to the standard that noble Lords wish.
Net Zero Test
Baroness Hayman Excerpts(3 years, 5 months ago)
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Baroness Hayman
To ask Her Majesty’s Government what assessment they have made of the recommendation of the Climate Change Committee that all government policies should be subject to a ‘Net Zero Test’; and what steps they intend to take in response.
Baroness Hayman (CB)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my interests as set out in the register.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, over the last three decades the UK has achieved record clean growth. Between 1990 and 2019, our economy has grown by 78%, while our emissions have reduced by 44%—the fastest reduction in the G7. The Government recently set out the UK’s sixth carbon budget, which would reduce 2035 emissions by 78% compared to 1990. We have strong governance around net zero; this includes two Cabinet Committees, one of which, the Climate Action Strategy Committee, is chaired by the Prime Minister. We will respond officially to the CCC report in due course.
Baroness Hayman (CB)
My Lords, I am grateful to the Minister for that response and I declare my interests as set out in the register. I was privileged to be present to hear the speech of Special Presidential Envoy John Kerry, in London this week. He spoke passionately of the scale of the challenges the world faces and the urgency and breadth of the action needed to avert catastrophic climate change. Do the Government accept the need highlighted in the recent report of the Climate Change Committee to put a climate lens on all government legislation and all policy choices? Will they show global leadership on this issue, in the run-up to COP 26 in Glasgow, by committing to a net zero test in their imminent, I hope, net zero strategy?
Lord Callanan (Con)
Well, as I told the noble Baroness in my Answer, we have really strong governance around climate change. There are two Cabinet committees, one established and chaired by the Prime Minister and the second chaired by the COP 26 president designate. Of course, we look at all policies and their impact on climate change.
Private Sector: Environment and COP 26
Baroness Hayman Excerpts(3 years, 5 months ago)
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Lord Callanan (Con)
My noble friend makes a very good point. She will have seen the announcement that we made only this morning on additional investment in wind turbine infrastructure in the Humber and the Tees. We will of course showcase the excellent efforts of these companies.
Baroness Hayman (CB)
My Lords, given the enthusiasm that the Minister has expressed for the work being done and the fact that many companies are making great progress in this area, do the Government support the Better Business Act campaign business leaders who are calling for the amendment of Section 172 of the Companies Act to remove shareholder privacy provisions so that companies are legally obliged to operate in a manner that benefits all stakeholders. Do the Government have plans to review the UK’s corporate governance code to ensure that it is in line with our net-zero-by-2050 target?
Lord Callanan (Con)
The noble Baroness makes a good point. We keep all these matters under constant review. We are constantly looking at the corporate governance code and we are reforming audit and corporate governance at the moment. We will be announcing some plans when the consultation has closed.
Climate Change
Baroness Hayman Excerpts(3 years, 5 months ago)
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Baroness Hayman (CB)
My Lords, I declare my interest as co-chair of Peers for the Planet. The Climate Change Committee report, as the Minister will know, was explicit about the need for all government policies to be subject to a net-zero test, yet we have before the House at the moment a skills Bill—and skills will be crucial to the green jobs of the future—that makes no mention whatever of our net-zero targets. So will the Minister undertake to have discussions with his colleagues at the Department for Education about supporting the amendments to the Bill that I am tabling to remedy this serious omission?
Lord Callanan (Con)
I cannot promise the noble Baroness that we will support her amendments; I will need to look at them first. But we are doing a lot on skills. For example, the green homes grant included tens of millions of pounds that we spent on grants to encourage providers to provide the training that will be required to undertake many of the green improvements that we all want to see.
Net-Zero Carbon Emissions
Baroness Hayman Excerpts(3 years, 6 months ago)
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Lord Callanan (Con)
My noble friend has made a good point. The UK was one of the first major economies to legislate for net-zero emissions by 2050, and of course our ambitious domestic action gives the UK the credibility to influence and to accelerate global action. If the noble Lord looks at some of the commitments that have been made by major economies before COP 26, he will see that considerable action is being taken.
Baroness Hayman (CB) [V]
My Lords, I return to the issue of decarbonising homes. Does the Minister accept that public confidence and engagement have been damaged by the failure of several schemes, culminating in the green homes grant? Will the much-delayed heating and buildings strategy provide a clear and comprehensive framework for the changes that are necessary, including costings, so that industry and individuals alike can plan?
Lord Callanan (Con)
The noble Baroness will have to be patient to see the detail of the heating and buildings strategy, but it will provide a clear and comprehensive road map for the challenging work that we all understand will need to take place on decarbonising the heat that goes into both commercial and domestic buildings.
Climate Change: Targets
Baroness Hayman Excerpts(3 years, 6 months ago)
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Baroness Hayman (CB) [V]
My Lords, I declare my interest as co-chair of Peers for the Planet and add my congratulations to the noble Baroness, Lady Sheehan, on her ongoing work in this area. This week we have seen a spotlight on disaster planning and crisis management. In climate change, we face an even greater potential catastrophe than Covid—what the Government themselves this week called the planet’s greatest threat. We need a response that is comprehensive, systemic and integrated, and brings together disparate contributions from many sectors into a coherent whole. It requires leadership from the Government, and a climate lens on all policies and legislation, if we are to ensure delivery not only of our domestic agenda but of our international aims for COP 26, leading, in the words of President Biden,
“by the power of our example.”
In regard to legislation, we are not there yet. Two crucial Bills in the last Session contained no reference to climate obligations whatever until changes were made in this House. That problem continues in this Session, with silence on the issue of climate in the Skills and Post-16 Education Bill and a potential lack of consonance between the Environment Bill and the planning reform Bill.
Can the Minister say today how the Government intend to ensure early and comprehensive scrutiny of all policies and legislation against their green agenda? Are they, for example, looking at the work being done in this area by other countries such as New Zealand and Sweden? Finally, can he assure me that the Cabinet Committee on Climate Change, which has met so infrequently, will now be fully engaged in leading the systemic co-ordination and integration that is so urgent?