(4 days, 4 hours ago)
Lords Chamber
Baroness Curran (Lab)
The OBR will have to republish the figures if Rosebank does not go ahead, and that will need to be addressed.
Does the Minister agree that perhaps noble Lords opposite should be a little more careful and a little nuanced in their interpretation of the OBR report? It did indeed, for the reasons that the Minister set out, include both Rosebank and Jackdaw in those assessments, but the overall assessment was that receipts from North Sea oil revenues and taxation would decline, as they have over the last 20 years, in the next five years to zero. Is it not really important that we concentrate on the future, and could the Minister tell me what progress we are making—it was mentioned in the Budget papers—on that important issue that would save consumers money, delinking the price of electricity from the price of gas?
Baroness Curran (Lab)
I thank the noble Baroness for pointing out that that is what the OBR actually says about that.
(6 days, 4 hours ago)
Lords Chamber
Baroness Curran (Lab)
Decommissioning is an important issue to raise. The noble Lord will know that we have asked Shell to submit its decommissioning programme for the Energy Secretary to consider. The next stage of the Brent decommissioning process has been under review since 2017. A final decision will be made only once all relevant evidence, representations and legal requirements have been considered, so we are taking pragmatic steps to unblock long-standing decision processes such as this—but the noble Lord makes an important point about the importance of decommissioning.
My Lords, the Minister has made clear that this decision, understandable as it is within the context of the current circumstances, in no way detracts from the overall priorities and mission of the Government regarding net zero. She also made clear that it does not in any way affect the prices of gas for consumers in this country. It is said that the new North Sea energy wealth fund will support plans to delink gas and electricity over the course of this Parliament. Again and again we have raised the issue of how gas prices actually make things much more expensive for electricity consumers. On what timetable are the Government going to make some progress on this important issue?
Baroness Curran (Lab)
I thank the noble Baroness for that question. I am not sure I can give her a precise timetable, in all sincerity, because there is a series of decisions linked to it and it does not lend itself to a given timetable. We have made progress from 90% to 60% over the course of this decade. We want to keep the pace going on that and we will continue. Of course, it is contingent on a variety of issues, but I am happy to keep that issue on the agenda and at the forefront of our minds.
The noble Baroness mentioned climate change, and I emphasise how important this is. We have COP coming up. We regard ourselves as international leaders on climate change and we want to keep that position. The Secretary of State and the Prime Minister will be attending COP, which is an indication of the significance we give to it. This will be an ongoing conversation that I am happy to discuss in Parliament and with the noble Baroness.
(1 month, 3 weeks ago)
Lords Chamber
Baroness Curran (Lab)
I thank my noble friend for that question. I pay tribute to the work he has done in this field and to the very significant contribution he made as a Minister, particularly within the nuclear field. I cannot be drawn on the points he raises but I can assure him that the North Sea and oil and gas will play a vital role in our energy mix for years to come. He noted that under the Conservatives, by the end of 2016 more than 120,000 UK oil and gas jobs had gone. It is a changing basin, but we see it as part of the mix. We understand that the North Sea not only has an oil and gas sector but can play a vital role in a clean energy economy. That will make an enormous contribution not only to the north-east of Scotland but to the wider UK economy.
My Lords, I welcome the noble Baroness back to her position on the Front Bench. Does she agree that a major issue underlying the decisions—which I know she cannot talk about—is the widespread concern about the cost of energy in this country? Does she further agree that the important thing is to make some progress on decoupling the price of gas from the price of energy and electricity generally? When are the Government going to make some progress in separating off those two strands?
Baroness Curran (Lab)
I thank the noble Baroness for her welcome and for that question. I recognise the work that she does and, as a former member, I hope I can continue to engage with Peers for the Planet. She makes a central point underlying the work that we do. The cost of energy is central to the Prime Minister’s mission in tackling these issues, and he has said that affordability will be at the centre of what he tries to do. She is also right to emphasise the de-linking of electricity and gas, and that will remain a priority of our work. I look forward to meeting her to discuss that and to continuing these debates in the House. I can assure her that that is a priority for our work going forward, as is affordability.
(3 months, 2 weeks ago)
Lords ChamberYes, the noble Baroness is quite right about bottom trawling, how destructive it is and how it completely destroys the ecology of shallow to medium deep-sea areas as a result. It is very important that, among other things, those practices are not carried out in marine protected areas. She will know that the Government have a great record of developing marine protected areas around the UK’s coast and internationally in the Crown dependencies. Those will all be areas in which practices such as bottom trawling will not be tolerated.
My Lords, I welcome the Statement, and I very much agree with the noble Earl, Lord Russell, on much of what he said about the issues that face us. We have some enormously difficult issues to face. We have seen some of the immediate ones in in our hospitals, schools and workplaces and in the death rates we have seen. I think the noble Lord, Lord Moynihan, agreed on the threat—to use his word—in terms of both climate and nature. We have immediate problems, and we have some very difficult problems—
I am going to ask a question in just a minute or two. We have some very difficult decisions to make on issues such as the North Sea, employment, how we get the new skills in, how we get the modular reactors in, what the pace of change is and how we make the transition.
My question to the Minister is this: does he share my concern that, instead of pooling our joint knowledge and energy into solving those problems when faced with a global crisis, we seem to be creating a more and more polarised and unproductive debate on all these issues?
I certainly agree with the noble Baroness on the extent to which we will make far greater progress by acting in consensus and agreement together, working out how we do things jointly, than by having an often very sterile debate about whether particular things work particularly well or otherwise. As far as I am concerned, we remain in a climate emergency and in circumstances where, as I have said, we have to consider urgent adaptation at the same time as urgent mitigation. Those are very difficult things to do, and I for one am proud that the Government have not resiled from that difficult debate, particularly on issues such as mineral fuels, but have instead tried to move forward on a broad basis of support. I reflect on the fact that, when I was in the House of Commons, we had a high degree of consensus on climate change; now, we do not, and that is a sorry state of affairs. We need to get back to that as soon as possible in order that we make the progress that we all know is absolutely necessary in the end.
(4 months ago)
Lords ChamberMy Lords, it is a pleasure to follow the noble Lord, Lord Teverson. I agree very much with the final point that he made. I find many things depressing at the moment in reactions to issues of climate change, but one of them is the lack of enthusiasm about British innovation. We can grow the green economy; we can tackle climate change; we can tackle emissions; and we have the intellectual firepower and the companies and the individuals who are interested in doing that. Yet here we are tonight with a perfectly reasonable proposition being put to us by the Minister to approve these regulations. I will not be insulting and say it is a bit of process-ology, but it is part of a process, and it is a process that has been going on for a long time.
It is certainly not new news. It was announced in April 2021, nearly four Prime Ministers ago, by the then Conservative Government when the noble Lord, Lord Sharma, was our COP 26 president-designate, and when the atmosphere and the cross-party consensus on the need to change and to make progress was very much accepted. So what we are debating here tonight in terms of the regret amendment is something that has been agreed for many years—decades, actually—that has been accounted for in our forthcoming carbon budgets, and that industry has known about for many years. As I say, it is not new news.
I know that the noble Lord, Lord Turner, who I think could not be here this evening, would be telling us that he discussed this issue when he was chair of the CCC over 15 years ago. I look forward to hearing from the noble Lord, Lord Deben, as a more recent chair.
I understand that the methodology is not yet perfect, but the Minister clearly explained why it is sensible to allow ourselves some room to develop it and, I hope, for it to be widely adopted by others. However, it makes no sense whatever for aviation and shipping to be left out of our carbon budgeting. They are important areas; progress is being made and we should be leading in what they are doing, not cavilling. At the moment, the rest of the UK economy is captured under our carbon budgets. Although there have been many arguments about the benefits and disbenefits and the pace of transition, I have never heard it said that the simple act of having carbon budgets has imposed cost on any industry. What they will do is place a legal requirement on the Government to ensure that these industries, alongside all the others, reduce their emissions. We have already legislated in the Sustainable Aviation Fuel Act to get started here. Enshrining this in law will create the legal certainty that businesses need, especially after the political upheaval of recent years, to invest and innovate.
I am tempted to say, “Nothing to see here”. I see the Whip would like me to sit down, so I end by saying that, if we do need to have a vote, which I consider unnecessary, I would certainly support the Government.
(6 months, 1 week ago)
Lords ChamberThe regulations came in on 27 January, and this move to properly regulate the heat network field was due to the fact that the system had very little overall regulation before and was dependent on some voluntary heat regulation schemes. In many instances it was not satisfactory so far as consumers were concerned. The emphasis on the regulation was a fair deal for consumers, but it also means a fair deal for those good heat network operators which want to play by the rules and make sure that their heat networks are as good as they can be.
My Lords, I declare an interest as a director of Peers for the Planet. Like others, I welcome the publication of the Warm Homes Plan and the increased target for the initiation of low-carbon heat networks. But I ask the Minister: what plans do the Government have to ensure that we have a trained and efficient workforce able to carry through these plans? We have had many energy-efficiency and insulation plans in the past that have foundered because we have not had the workforce able to implement them.
The noble Baroness makes an excellent point on the need to run the expansion of facilities such as heat networks, and indeed many other green and low-carbon technologies, alongside an assurance that the skills are available to put those into place and the workforce is available to do those things. That is part of the wider government plan to make sure that training and skills are properly matched to the low-carbon future that we have in front of us, rather than training people for, dare I say, obsolete technologies that will have a relatively short life in the future and will be superseded by this widespread series of low-carbon technologies.
(7 months, 1 week ago)
Lords ChamberI am slightly puzzled by the noble Lord’s enunciation of that question, in that renewable wind and overhead power lines go closely together, because the overhead power lines have to deliver the power that is being generated by the renewable power sources. As for the requirement that that variable output be matched by various other sources of energy when, for example, the wind is not blowing and the sun is not shining, that is well taken care of by the back-up that is already in the system—due, I might add, to a number of renewable sources also being non-variable.
My Lords, I declare my interest as a director of Peers for the Planet. Given what the noble Lord, Lord Teverson, said, in asking this Question, about the increased productivity of onshore wind when it is a replacement for existing infrastructure, is it not time that the Government did as he said and got on with it? I remind the Minister that the urgency of coming to conclusions on repowering existing onshore wind was included in the Private Member’s Bill that I introduced in your Lordships’ House some five years ago.
I pay tribute to the noble Baroness for all her work in this field and for introducing that Bill. As far as getting on with it is concerned, there is nobody who wants to get on with it more than I do. The noble Lord, Lord Teverson, has drawn attention to the fact that we have probably 10.7 gigawatts or more of onshore wind capacity that could retire between 2027 and 2042, and those onshore farms will be completely lost if they retire without any repowering. So repowering is clearly essential, not only to keep those wind farms going on the same sites but because of the tremendous power gain that could come about by using modern turbine methods and modern blades to increase the output by perhaps up to two-thirds when those existing sites are repowered.
(7 months, 2 weeks ago)
Lords ChamberNo, the Energy Secretary does not wish to see drilling for North Sea oil banned. What he is doing, as the noble Lord will know, is developing transitional energy certificates, which will enable tie-backs to take place in existing fields. The noble Lord will know that the existing structure of the North Sea fields largely consists of fields that have not been tapped—small fields that are adjacent to additional fields—and so the tie-back arrangement will ensure both production and drilling for those tie-back fields in association with the existing fields.
My Lords, I declare my interest as a director of Peers for the Planet. Given what the Minister said about this being, in essence, a price security issue, what progress have the Government made on the issue of decoupling the price of other forms of generation from the price of gas? As we know, that is hugely volatile and has an enormous impact on both domestic and industrial consumers.
The noble Baroness is exactly right. As she will know, part of the price increases that are being suffered at the moment go into the market-making price of gas that secures the general price of electricity, for example, in our markets by marginal cost pricing. Certainly, the renewed and continuing volatility in international markets is likely to be a substantial driver of high price levels and price increases in the future. Therefore, the Government are actively looking at measures that could decouple the UK energy market, where it is green and low carbon, from that marginal cost pricing arrangement, which is still driven by gas in about 65% of settlements at the moment. That will be part of the UK’s drive for clean energy sources for the future.
(1 year, 5 months ago)
Lords ChamberMy Lords, I declare my interests as set out in the register. The impacts of climate change and the need for adaptation are often seen in terms of physical structures and infrastructure, but would the Minister agree with me that there are important effects on health and that it is very central that his department talks to the Department of Health about the effects of, for example, the heatwaves, to which reference has been made, and the effects of changes in our and other countries’ climates that mean that we may see diseases that we do not think of as being relevant to the UK here in the very near future?
The noble Baroness will be aware that the committee’s report refers to heat-related deaths rising in the UK as a result of what is happening to our climate. Since publication of the national adaptation plan 3 in July 2023, we have taken on board that point. The last Government published the fourth Health Effects of Climate Change (HECC) in the UK report in December 2023, detailing the risks. We have updated the NHS Green Plan Guidance in February 2025, setting out key actions each integrated care system and trust should undertake to strengthen their resilience to climate impacts, and we are very much on the case on this.
(1 year, 5 months ago)
Lords ChamberMy Lords, we have to look at each country, and some subsidise business costs from the Exchequer. There is no easy way through here; one way or another, there are variations in what Governments do, but we have a very tough public financial situation bequeathed by the last Government, in the form of the black hole they left us, so our options are inevitably constrained. We are not complacent; that is why we have this review of our whole energy pricing structure, and we will look at these matters very carefully. I still maintain, and I think the noble Lord would agree, that the best way to energy security and stable prices is to go towards clean power as quickly as we can.
My Lords, the Minister was absolutely clear that these are not easy decisions, and I think we all understand that. But the high price of electricity affects not only industries but consumers, so they are decisions, however difficult, that have to be taken. We have been tremendously damaged by the system that we have at the moment, so can the Minister be a little more specific about when we will have the results of the REMA review and when we can change the current perverse system of pricing?
My Lords, I hesitate to answer the noble Baroness by saying “in due course”. Clearly, these matters are being discussed very fully in my department, and we want to reach a conclusion as quickly as possible, but I cannot give her a date.