Speeches made during Parliamentary debates are recorded in Hansard. For ease of browsing we have grouped debates into individual, departmental and legislative categories.
These initiatives were driven by Baroness Worthington, and are more likely to reflect personal policy preferences.
A Bill to provide for a public consultation on the introduction of a trading obligation on vehicle manufacturers to increase the proportion of electrically propelled light passenger vehicles sold and on the introduction of a road usage duty to reduce transport carbon emissions; and to provide for graduated rates of duty to apply to modified vehicles.
Baroness Worthington has not co-sponsored any Bills in the current parliamentary sitting
We remain committed to establishing a Parliamentary Advisory Group on carbon capture and storage and met with Lord Oxburgh recently to discuss the group.
Section 66 of the Energy Act 2013 requires the Emissions Performance Standard to be reviewed as soon as reasonably practicable after December 2018.
The Government believes in making the most of the UK’s oil and gas resources – to date the oil and gas industry has contributed £330bn to the Exchequer and is the UK’s largest industrial investor, supporting hundreds of thousands of jobs, supplying a large portion of the UK’s primary energy needs and making a significant contribution to GDP. With between 11 and 21 billion barrels of oil equivalent still to be exploited, the UK Continental Shelf can continue to provide considerable economic benefits for many years to come.
Decommissioning is an inherent cost of doing business in the UK Continental Shelf. As a result, capital allowances are available on decommissioning expenditure (for the purposes of Ring Fence Corporation Tax and Supplementary Charge) and the expenditure is tax deductible for the purposes of Petroleum Revenue Tax. The provision of relief requires a company to have current or previously taxed upstream profits against which to offset losses. Relief is not available where a company has not paid tax or where a company’s decommissioning costs exceed the amount of profits on which they have previously paid tax.
We are committed to ensuring decommissioning programmes represent value for money, which is why the Government intends to bring forward amendments at Lords Report Stage of the Energy Bill to: require decommissioning programmes to be cost effective, ensure the Oil and Gas Authority has the powers it needs to scrutinise companies’ decommissioning plans to ensure they are cost effective, and enable the Secretary of State to require a company to take specific action to reduce the costs of decommissioning to address cost overruns.
HMRC’s annual accounts include an estimate of, and provision for, the liabilities associated with the decommissioning of oil and gas infrastructure. Their annual accounts for 2014-15 are available below in the attached (page 115, Section 8).
The Government believes in making the most of the UK’s oil and gas resources – to date the oil and gas industry has contributed £330bn to the Exchequer and is the UK’s largest industrial investor, supporting hundreds of thousands of jobs, supplying a large portion of the UK’s primary energy needs and making a significant contribution to GDP. With between 11 and 21 billion barrels of oil equivalent still to be exploited, the UK Continental Shelf can continue to provide considerable economic benefits for many years to come.
Decommissioning is an inherent cost of doing business in the UK Continental Shelf. As a result, capital allowances are available on decommissioning expenditure (for the purposes of Ring Fence Corporation Tax and Supplementary Charge) and the expenditure is tax deductible for the purposes of Petroleum Revenue Tax. The provision of relief requires a company to have current or previously taxed upstream profits against which to offset losses. Relief is not available where a company has not paid tax or where a company’s decommissioning costs exceed the amount of profits on which they have previously paid tax.
We are committed to ensuring decommissioning programmes represent value for money, which is why the Government intends to bring forward amendments at Lords Report Stage of the Energy Bill to: require decommissioning programmes to be cost effective, ensure the Oil and Gas Authority has the powers it needs to scrutinise companies’ decommissioning plans to ensure they are cost effective, and enable the Secretary of State to require a company to take specific action to reduce the costs of decommissioning to address cost overruns.
HMRC’s annual accounts include an estimate of, and provision for, the liabilities associated with the decommissioning of oil and gas infrastructure. Their annual accounts for 2014-15 are available below in the attached (page 115, Section 8).
There are robust safeguards in place to prevent the costs of decommissioning falling to the taxpayer. Measures under Part 4 of the Petroleum Act include the ability for the Secretary of State to require the owners of an offshore installation or pipeline to prepare and execute a decommissioning programme for those assets, and to take financial securities from those companies to protect the tax-payer from any default.
We are committed to ensuring decommissioning programmes represent value for money, which is why the Government intends to bring forward amendments at Lords Report Stage of the Energy Bill to: require decommissioning programmes to be cost effective, ensure the Oil and Gas Authority has the powers it needs to scrutinise companies’ decommissioning plans to ensure they are cost effective, and enable the Secretary of State to require a company to take specific action to reduce the costs of decommissioning to address cost overruns.
In total 67.3GW of capacity has prequalified to participate in the first Capacity Market auction in December this year.
This is extremely positive and indicates that the auction will be competitive, which will help to keep costs down while providing security of supply for consumers.
Information relating to the eligibility of each plant that has successfully pre-qualified is publicly available on National Grid’s website as the Delivery Body for the Capacity Market.
The Capacity Market has been designed to mitigate the risks of gaming. We commissioned expert external advice from Charles River Associates on this issue and implemented the recommendations contained within that report which is available on the DECC website:
Anti-gaming measures include having in place an auction monitor who will ensure that the rules are properly followed by all participants during the auction. If the auction monitor were to find any irregularities, the Secretary of State ultimately has the ability to annul the auction after it has taken place.
Ofgem has the power to investigate any company bidding into the auction should they consider this necessary.
A recent report by independent energy consultants Parsons Brinckerhoff commissioned by this Department estimates that fitting emissions abatement technology needed to comply with the forthcoming industrial emissions Directive would result in a reduction in plant efficiency in the range 0.01 to 0.13 percentage points:
https://www.gov.uk/government/publications/coal-and-gas-assumptions
The impact on the carbon intensity of electricity generated by a plant, measured in gCO2/kWh, as a result of fitting emissions abatement technology can be expected to be of a scale that reflects this estimated range of efficiency loss.
A ‘reference plant’ was used for the purposes of the report and exact changes to efficiency and emissions intensity may vary across the UK’s coal-fired power stations due to their differing designs.
The Climate Change Act established a legally binding target to reduce the UK’s greenhouse gas emissions by at least 80% below base levels by 2050. The Act introduced a system of carbon budgets which provide legally binding limits on the amount of emissions that may be produced in successive five-year periods, setting the UK on a least cost trajectory to 2050.
A comprehensive package of policies has been put in place to meet future carbon budgets, which includes reducing the carbon intensity of power generation.
Electricity market reform (EMR) provides support for all low carbon technologies including nuclear, Carbon Capture Storage and renewables. The EMR delivery plan also provides an outlook to 2030 illustrating different scenarios for power sector decarbonisation consistent with our carbon plan and budgets.
This approach increases energy security and minimises costs to taxpayers and consumers, while reducing emissions.
The Cabinet Office does not hold this information.
Details of Government contracts above £10,000, and £25,000 in the wider public sector, are published on Contracts Finder (https://www.gov.uk/contracts-finder).
The Cabinet Office does not hold the reporting or recording of contract level greenhouse gas emissions for the public sector. Individual departmental emissions (including contributions made by public contracts) are recorded via the Greening Government commitments (https://www.gov.uk/government/collections/greening-government-commitments).
By the end of May 2021, 50 commercial agreements above the threshold of £5m per annum had applied Procurement Policy Notice 06/21, with a total value of £82 billion over the life of those agreements.
The Cabinet Office does not hold the reporting or recording of contract level greenhouse gas emissions for the public sector. Individual departmental emissions (including contributions made by public contracts) are recorded via the Greening Government commitments (https://www.gov.uk/government/collections/greening-government-commitments).
By the end of May 2021, 50 commercial agreements above the threshold of £5m per annum had applied Procurement Policy Notice 06/21, with a total value of £82 billion over the life of those agreements.
The Cabinet Office does not hold the data in the manner requested. However, information on the value of contracts anticipated to be covered by the Procurement Bill and the NHS Provider Selection Regime is set out in the Impact Assessment published alongside the Procurement Bill (https://bills.parliament.uk/bills/3159/publications)
Details of Government contracts above £10,000, and £25,000 in the wider public sector, should be published on Contracts Finder (https://www.gov.uk/contracts-finder).
In the neighbourhood trial, hydrogen will be transported through pipes laid parallel with the existing gas network, so consumers will be able to continue using natural gas if they do not wish to use hydrogen.
The gas networks have consulted local residents in potential village trial locations to develop their consumer offer. This includes alternatives for consumers who do not wish to or cannot connect to hydrogen, such as electric cookers and heating systems.
The gas networks have overall responsibility for leading the delivery of the neighbourhood trial and the village trial. The Government engages with the gas networks on their consumer strategies but does not routinely approve consumer communications.
The neighbourhood trial is SGN’s H100 Fife project in Levenmouth. SGN plans to deliver hydrogen to consumers in mid-2024 and conclude by 2027. SGN provides evidence and regular progress updates to the Department for Energy Security and Net Zero, Ofgem and the Health and Safety Executive. They also produce an annual report in accordance with conditions set by Ofgem, who part funds the project
H100’s evidence is already shaping plans for the village trial, including on costs and regulatory challenges. Alongside evidence from the village trial, H100 will inform the Government’s strategic decisions in 2026 on the role of hydrogen in decarbonising heat.
The neighbourhood trial will transport hydrogen through pipes laid parallel with the existing natural gas network. It is providing valuable evidence on costs, regulatory changes, risk management and consumer engagement. This work is informing the design and delivery of the village trial. The village trial is providing evidence on a greater number and diversity of consumers and building types, and on the process of converting the gas network. Evidence from both trials will inform Government’s 2026 strategic decisions on the role of hydrogen in heat decarbonisation.
The Government has asked the gas networks to engage with local consumers to develop an attractive offer that encourages as many consumers in the trial area as possible to participate. This includes alternative heating solutions and appliances for those who are unable or do not wish to take part. In their trial proposals due in March, the gas networks must include the outcomes of their local engagement and evidence of the likely uptake of both hydrogen and the alternative offer. We will not go ahead with a trial in an area where there is not strong local support.
The Government is committed to ensuring that the rights of consumers are protected before, during and after the hydrogen heating trials. Nobody in the trial areas will pay more for their heating than they would if they were still connected to natural gas, including those that choose an electric alternative. They will also not be expected to pay for the installation or maintenance of hydrogen-capable appliances, or an alternative heating solution. The Government is working with the regulator Ofgem and the gas networks to deliver these consumer protections through consumer contracts and funding agreements. Consumers will be able to opt-out of the neighbourhood trial at any point and switch back to using natural gas free of charge. Consumer protection for the village trial will be further enhanced through legislation, including measures in the Energy Bill, and subsequent regulations.
The neighbourhood trial is funded by SGN, with contributions from other gas networks, Ofgem and the Scottish Government. The village trial will be funded by the Department for Energy Security and Net Zero, Ofgem and the gas networks. The village trial location and level of public funding will be decided later this year, following the submission of funding applications in March.
The Government is committed to ensuring that the rights of consumers are protected before, during and after the hydrogen heating trials. Nobody in the trial areas will pay more for their heating than they would if they were still connected to natural gas, including those that choose an electric alternative. They will also not be expected to pay for the installation or maintenance of hydrogen-capable appliances, or an alternative heating solution. The Government is working with the regulator Ofgem and the gas networks to deliver these consumer protections through consumer contracts and funding agreements. Consumers will be able to opt-out of the neighbourhood trial at any point and switch back to using natural gas free of charge. Consumer protection for the village trial will be further enhanced through legislation, including measures in the Energy Bill, and subsequent regulations.
The neighbourhood trial is funded by SGN, with contributions from other gas networks, Ofgem and the Scottish Government. The village trial will be funded by the Department for Energy Security and Net Zero, Ofgem and the gas networks. The village trial location and level of public funding will be decided later this year, following the submission of funding applications in March.
We have laid legislation for the UK’s sixth carbon budget, proposing a world-leading target, which would reduce greenhouse gas emissions by 78% by 2035 compared to 1990 levels. This is in line with the latest science as the level recommended by our expert advisers at the Climate Change Committee (CCC).
We have set the sixth carbon budget to include international aviation and shipping emissions, as recommended by our independent climate advisors, the Climate Change Committee.
We remain fully committed to global action to tackle IAS emissions through international processes at the International Civil Aviation Organisation (ICAO) and International Maritime Organisation (IMO).
The Government committed in the recent Energy White Paper to exploring expanding the existing UK Emissions Trading Scheme (UK ETS), which replaced the UK’s participation in the EU ETS on 1 January 2021, to the two thirds of uncovered emissions, and indicated that we will set out our aspirations to continue to lead the world on carbon pricing in the run up to COP26. This will also include how the UK ETS could incentivise the deployment of greenhouse gas removal technologies.
On the 1st of January 2021, the Government implemented the UK Emissions Trading Scheme (UK ETS) that will be the world’s first net zero carbon cap and trade market. We will consult in due course on how to align the UK ETS cap with an appropriate net zero trajectory, meaning the system will significantly contribute to ensuring the UK meets our commitment to net zero emissions by 2050. The operation of the cap will provide certainty about the decarbonisation trajectory over the long term.
The initial scope of the UK ETS provides continuity with the EU system we have now left, covering emissions from energy intensive industry, aviation and electricity generation. In the Energy White Paper, we committed to exploring expanding the UK ETS to other sectors and will set out our aspirations to continue to lead the world on carbon pricing in the run-up to COP26. This will also include how the UK ETS could incentivise the deployment of greenhouse gas removal technologies.
We have laid legislation for the UK’s sixth carbon budget, proposing a world-leading target, which would reduce greenhouse gas emissions by 78% by 2035 compared to 1990 levels. This is in line with the latest science as the level recommended by our expert advisers at the Climate Change Committee (CCC).
Analysis from the CCC shows that to achieve net zero Greenhouse Gas Removal (GGR) methods will be required to balance residual emissions from some of the most difficult to decarbonise sectors. Following the Government’s response to the CCC's 2020 progress report to Parliament, BEIS and HM Treasury launched a Call for evidence on the role of GGRs in delivering net zero, inviting evidence on a range of GGR methods. The Call for Evidence closed on 26 February, and we will publish a summary of responses in due course.
We will bring forward further policies and proposals to meet our carbon budgets in due course, which will consider the role that greenhouse gas removal technologies can play.
We are committed to supporting both the decarbonisation of UK industry and its competitiveness.
At the 2020 Budget, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced that the UK Government will at least double the size of the BEIS Energy Innovation Programme to £1billion, focussed on decarbonising UK power, homes and industry to meet the challenge of net zero.
Alongside support for innovation, we have a number of schemes in place to support deployment. This includes the £149 million Industrial Strategy Challenge Fund on Foundation Industries, which aims to transform certain primary and manufacturing industries to make them internationally competitive, secure more jobs throughout the UK and support innovation in zero emissions.
Our £170 million Industrial Decarbonisation Challenge Fund and £315 million Industrial Energy Transformation Fund will help industry deploy low carbon technologies and put energy efficiency measures in place.
In 2019, registrations of battery electric vehicles were at record levels. This was almost double compared to 2018 with nearly 38,000 units sold, overtaking plug-in hybrid electric vehicle registrations for the first time, at nearly 35,000 units.
We are consulting on bringing forward the end to the sale of new petrol and diesel cars and vans from 2040 to 2035, or earlier if a faster transition appears feasible, as well as including hybrids for the first time. As part of this consultation, we are asking what the accompanying package of support will need to be to enable the transition and minimise the impacts on businesses and consumers across the UK, building on the significant demand and supply side measures already in place. We plan to conclude the consultation this summer. We are also exploring what more needs to be done to reduce carbon emissions from road transport through the Transport Decarbonisation Plan.
In addition, we are investing around £2.5 billion ?in grants to support the purchase of plug-in cars, vans, lorries, buses, taxis, and motorcycles, as well?as providing funding?to support the installation of chargepoint infrastructure at homes,?workplaces,?on residential streets,?and across the wider roads network.
The UK has a legal requirement to review the Fluorinated Gas (F gas) Regulation and publish a comprehensive report of this review by no later than 31 December 2022. Defra is now beginning internal work on the review and intends to engage with stakeholders on this work later this year. The review will include an assessment of opportunities for faster and further action on phasing down F gases, beyond our already world leading measures, to help meet the Government’s net zero 2050 target.
The Department is working with the Connected Places Catapult to explore and assess the zero emission technologies most suitable for heavy goods vehicles on the UK road network, including overhead cabling on highways. This work will consider the need for mass demonstration projects and the outputs will feed into the Transport Decarbonisation Plan, expected to be published by the end of this year.
Electrification will play a significant role in our programme to decarbonise the railway. Network Rail’s ongoing work developing the Transport Decarbonisation Network Strategy will inform decisions about whether electrification or alternative technologies are the most appropriate option for each part of the network where diesel trains currently run. This work will support the Department’s Transport Decarbonisation Plan, which will be published at the end of this year.
The Government is supporting the development of electric aircraft through £125 million of funding to the Future Flight Challenge. The Jet Zero Council, announced in June, will bring together DfT and BEIS Secretaries of State and CEO-level stakeholders to drive high ambition in the delivery of new technologies and innovative ways to cut aviation emissions.
The potential electrification of maritime routes and use of shore power alongside to reduce emissions was assessed as part of the Department’s work to develop the Clean Maritime Plan published in Summer 2019. The research supporting the plan, including detailed consideration of the use of electrical power, has been published on gov.uk.
Most commodity derivatives are regulated by the Financial Conduct Authority (FCA), who have an operational objective to secure appropriate protection for consumers of regulated financial services.
The protections the FCA have in place to protect consumers include requiring firms to provide clients with a general description of the nature and risks of financial instruments, and a warning that people usually lose money when trading speculative instruments with commodities as an underlying asset. These protections apply when consumers participate in the market directly and indirectly and enables them to make investment decisions on an informed basis. Depending on the circumstances, consumers may also be able to qualify for Financial Services Compensation Scheme protection when dealing indirectly with commodity markets.
UK Motorists currently pay fuel duty and VAT on fuel, which means that those who use the roads the most, and do so in higher polluting cars, pay more tax. In addition, the Government uses the Vehicle Excise Duty system to encourage the uptake of cars with low carbon dioxide emissions (CO2) to help meet our legally binding climate change targets.
However, technology is changing many aspects of the economy – including the vehicles we drive – and the government is considering how the tax system will need to adapt to manage those changes.
The First Tier Tribunal in the case of HSBC Holdings PLC and the Bank of New York Mellon Corporation v HMRC decided in March 2012 that the taxing of Stamp Duty Reserve Tax at 1.5% on a transfer of shares which is integral to a share capital raising exercise to a depositary receipt issuer or clearance service, infringed the Capital Duty Directive. Following that decision, HMRC has repaid a total of £168 million Stamp Duty Reserve Tax to various claimants.
HM Revenue and Customs (HMRC) is not in a position to provide an assessment of Stamp Duty Reserve Tax that may be repaid following the 2012 First Tier Tribunal decision in the case of HSBC Holdings PLC and the Bank of New York Mellon Corporation v HMRC. This is due to ongoing litigation of cases arising from that decision.
The Government believes in making the most of the UK’s oil and gas resources – to date the oil and gas industry has contributed £330bn to the Exchequer and is the UK’s largest industrial investor, supporting hundreds of thousands of jobs, supplying a large portion of the UK’s primary energy needs and making a significant contribution to GDP. With between 11 and 21 billion barrels of oil equivalent still to be exploited, the UK Continental Shelf can continue to provide considerable economic benefits for many years to come.
The Government is committed to ensuring decommissioning programmes represent value for money, which is why we have introduced provisions through the Energy Bill to:
None. No mention has been made, as Cumbria County Council has not approved the opening of the new coal mine in Cumbria.