(6 days, 16 hours ago)
Lords ChamberMy Lords, if one were of a nervous disposition, one would be alarmed at the clearing of the Chamber that the simple act of standing up to move an amendment can provoke in this House.
I will speak to Amendment 46 in my name and those of the noble Baronesses, Lady Hayman—who, alas, cannot be with us today due to family illness—and Lady Boycott. It deals with the priorities that the Government will set for Great British Energy, and returns to the issue of community energy, which was given an airing by the noble Earl, Lord Russell, in the previous Committee session.
Amendment 46 inserts into Clause 5 a specific requirement that the strategic objectives of GB Energy should include delivering reductions in emissions, improvements in energy efficiency, security of energy supplies and a more diverse range of ownership of energy facilities—especially community energy schemes—whether connected to the grid or providing energy solely for local communities.
The mention of community energy in the debate about Clause 3 was very much about the objects of GB Energy. The amendments in this group are more about framing the articles of association of the company, in line with the strategic priorities that the Government impose on GB Energy. Clause 5 is more specifically about what the Government will determine on the strategic priorities and plans for GB Energy. I believe that the Bill should specify that the key issues outlined in this amendment be included in the objectives and plans. Clause 3 is about what GB Energy could do; Clause 5 is about what it will do. It is important that these priorities are on the face of the Bill.
In the case of community energy schemes, your Lordships will be glad to hear that I do not intend to repeat the excellent case made by the noble Earl, Lord Russell, in speaking to his amendment to Clause 3.
The grouping of amendments in Committee on this Bill has been interesting—I think that is the word—but it has had one silver lining in that it has given us opportunity to debate energy community for a second time. One can never have too many debates about community energy.
Much of the promotional material around Great British Energy has been clear that it will play a role in supporting community energy. Community energy schemes are important if we are to persuade local communities that the disruption and downsides of renewables development and rewiring the grid have something for them by way of cheaper, greener, more secure energy in which they have a stake.
Local power plans, including community energy schemes, are one of the five priorities for Great British Energy that were put forward in the founding statement. If all these assurances and promises represent genuine commitment, why not put this in the Bill, as my amendment proposes, as indeed does Amendment 50 in the name of the noble Earl, Lord Russell, which I also support?
During the debate on his amendment in the previous Committee session, the noble Earl, Lord Russell, indicated praise for Jürgen Maier, who is on record supporting a role for GB Energy in community energy. But Mr Maier is also on record as saying at a parliamentary hearing that he did not believe that community energy had the potential to generate gigawatts. This does not gel with the assurances that we have been given by the Government both in their manifesto and during the passage of this Bill in the other place.
I very much welcome the fact that my noble friend the Minister undertook to give greater consideration to community energy schemes and their place in the Bill between Committee and Report. I hope he will reach a conclusion on the basis of that consideration, which would result in the role of Great British Energy in community energy appearing in the Bill to ensure, above all, that confidence is not lost by communities or investors alike.
I thank my noble friend for giving way. She has asked me a question so I might as well answer it. What that means is that the Government have not committed ourselves to a position, but we are looking seriously at the arguments that we received when we debated this issue last time.
I thank the Minister for that intervention. It reveals the importance of having more than one debate about community energy that he has now said that twice. I beg to move.
I will speak to my Amendment 46A and to Amendment 46, to which I have added my name. I also support Amendments 50 and 51A in this group, among others. I tabled Amendment 46A because I want to ascertain from the Minister whether this was something that GB Energy would or could be doing. As drafted, this amendment, very simply, requires Great British Energy to deliver a public information and engagement campaign on the work it is doing as part of the transition to clean energy—about renewables, reducing greenhouse gas, improving energy efficiency and contributing towards energy security.
The first inquiry that I was part of in the then newly established Environment and Climate Change Committee, which was under the wonderful chairmanship of the noble Baroness, Lady Parminter, was on public engagement —or, to be quite honest, after many months of looking at it, the lack of it. Shortly after that inquiry, the Skidmore review also identified that public engagement is the missing piece of the puzzle. I am really not sure how much the dial has moved since then in this Government and certainly in the previous one. With GBE being a government-owned company, we could decide here and now, today, that the Government are going to take an active role in this; I think, and many others agree, that this would have a very beneficial knock-on effect.
The reason it is important may not be abundantly obvious at first, so I shall just lay out why I believe it is crucial. As we found on the committee, 32% of emissions reductions up to 2035 rely on decisions by individuals and households, while 63% rely on the involvement of the public in some form or another. We need to tell the public what we are doing and why we are doing it. We know that the public support the transition to net zero. Even last week there was a new poll that found that across all the major parties there was a high amount of support for anything to do with the environment. But you cannot expect people to support something if they do not know the reasons or what it is going to mean for them. We are not shepherds herding sheep, but we need to explain why it is happening,
I have real faith that the public will largely—if not exclusively—support all the energy infrastructure that we need to decarbonise the grid, including pylons wherever they have to be put, and they will be up for getting EVs and charging them in the middle of the night at times when electricity is abundant. They will do all these things because if they can buy into the common good, then you are in a win-win situation. But we must engage them, and the continued absence of a public engagement strategy leaves lots of space for lots of very negative voices to chip away with misinformation about why we do not need to do this and how we are not really in a climate emergency. Explaining these changes and how they are going to come in is crucial to secure public consent and address all the concerns that both the public and too many sections of the media, sadly, have.
I also fully support the amendment in the name of the noble Baroness, Lady Young of Old Scone, who made a wonderful introduction to it. I just add that with such little accountability, as the Bill stands, and as the Minister has said, we are not going to see a draft strategic priority statement before the Bill passes. It is important that there is some constraint around what the statement includes. The contents of this amendment are fully consistent with the objects in Clause 3 but correct a wrong area where GB Energy has the ability to invest in a wide range of “things or areas” but has no long-term security of knowing roughly what its strategic priorities will be.
I do not believe that this is too prescriptive. It seems to be wholly consistent with everything I have heard the Minister say in this House—and, indeed, the Secretary of State in the other place. I challenge the Minister to come up with something that he thinks GB Energy ought to have a role in, either now or in the future, that does not feasibly come under the list in this amendment.
It has to be said that my amendment is broad, so a few points apply to both it and the amendment from the noble Baroness, Lady Young. I will say a few words on emissions reductions. This has to be the overarching purpose, which, from conversations we have had with the Minister, I think is the case. But it is important that as a principle it is a publicly funded company which is not at present aligned to our emissions reduction targets. We should have no issue in including this in the Bill as its priority.
Everything to do with energy efficiency must be an area where GBE has a meaningful contribution by bringing in investment. The CCC has highlighted that we are really behind and that progress is slow. The warm homes plan—which I greatly welcome; indeed, I tabled an amendment to the last Energy Bill, now an Act, which included a warmer homes and business plan—aims to see 300,000 homes upgraded over the next year. I ask the Minister whether his department has yet produced a credible plan for the year after that. I am thinking particularly about the target to reach 600,000 heat pump installations by 2028.
These are large numbers. I remind noble Lords that we have 29 million homes in this country—more each year—which at present are likely to need retrofitting. As for security of the supply, I understand the Minister sees this as critical to what GB Energy will achieve. Indeed, his department’s 2030 clean power target, which this Bill helps to achieve, will mean more renewable energy. There should be no issue about including this as well. I also include community energy, which I can see has had a lot of airtime already. That is really important for bringing the public along on our journey, because if you can look out of your window and see a turbine and think, “That is powering and heating my home” or “The solar panels on my roof are feeding into the grid as well as cooking my dinner”, we will come up against a lot less opposition to all renewable developments.
I thank noble Lords who took part in this debate, including the noble Baroness, Lady Boycott, the noble Earl, Lord Russell, and my noble friend Lord Grantchester. The noble Baroness, Lady Hayman, is no doubt watching Parliamentlive.tv and cheering us on as we speak. I also thank the noble Lord, Lord Offord, for his party’s support for community energy and for the remarks about land use, which we will come to in Amendments 67, 73, 104 and 105. It highlights the need for a land use framework for England. I was kind of hoping that we would get it for Christmas, but it looks like it might be slightly later. We were supposed to get it last Christmas, as well.
I was delighted to hear that the Minister welcomes the further amendments on community energy, tabled by the noble Earl, Lord Russell, that will come up in our next session. It will be the third opportunity for the Minister to tell us that he is pondering. Perhaps I should change my wish for a land use framework this Christmas to a wish for some new arguments in favour of community energy before our next debate, because it is becoming slightly repetitive. On the other hand, a good case can bear repetition.
The Minister clearly understands the importance of community energy. I am not sure he quite understands the distinction I was making between the objectives of GBE—which are about what it can and, by implication, cannot do—and strategic priorities and plans, which are what, in the Government’s view, it must do and do now. That is a material difference. In order to inform these reflections between Committee and Report, and in view of the wide support around the Chamber for community energy issues being addressed in the Bill, will the Minister meet with some of us who have indicated that very wide support?
I thank the Minister for that. In the meantime, I will withdraw the amendment, though perhaps not before dwelling briefly on the statement from the noble Baroness, Lady Boycott. She talked about looking out your window and seeing the local wind turbine in which you would have some skin in the game as a result of a community energy scheme, and so think kindly on it rather than it being the enemy. That reminded me of how the Labour Party used to feel about Arthur Scargill: “He may be a bastard, but he’s our bastard”. There may well be hope for this policy.
In begging leave to withdraw the amendment, I reserve the privilege to decide, when the noble Baroness, Lady Hayman, is back in harness, whether this should return on Report. That will very much depend on what the Minister tells us about the outcome of his reflection between Committee and Report. I wish him a happy Christmas while he does that.
My Lords, I will speak to Amendment 116, which is in the name of the noble Baroness, Lady Hayman, who cannot be with us today, and to which I added my name. I was greatly encouraged by the Minister’s words at Second Reading that he looked forward to discussing biodiversity further in Committee. I do not think I have ever heard a Minister say that before, and now is his moment.
The noble Baroness, Lady Hayman, has previous with this sort of amendment, having tabled similar amendments to a variety of previous Bills, so colleagues may now be familiar with her modus operandi in this respect. The amendment aims to address the challenges of how the objectives, strategic priorities and other functions of GBE fit with the legally binding targets in the Climate Change Act 2008 and the Environment Act 2021, which the Government have a statutory requirement to achieve.
At Second Reading there was recognition that when making decisions about the rollout of renewable energy, clean power and the associated infrastructure, it is important that we bring together all the different responsibilities, issues and trade-offs in one scheme—one structure or place—so that Great British Energy and the Government are fully equipped with all the information to weigh up these decisions and to take account of all these different factors in an integrated way, rather than in the siloed approach to decision-making that we distressingly see all too often in government. This is particularly important where there are legally binding targets that the Government have to achieve and where it would be distinctly unhelpful if Great British Energy were working in the opposite direction.
We have a real opportunity here to set the long-term strategic direction by putting in place the right frameworks to provide a stable structure for Great British Energy to make decisions and to be as transparent as possible in its decision-making, both now and into the future. The aim is to try to make sure that the projects invested in are the most effective at delivering on GBE’s objects but operate in such a way that they do not militate against the Government’s achievement of the binding climate change and biodiversity targets. We want to be cunning; we need to learn to walk, talk and chew gum at the same time. We want to achieve the strategic climate objectives that Great British Energy is there to deliver but we also want to achieve other objectives—it is both/and, rather than either/or.
The amendment does not imply that in every single case Great British Energy needs to contribute to the statutory binding targets, but it does aim to ensure that they are considered from the outset when Great British Energy makes decisions—and indeed when the Government make decisions—about strategic priorities; that it factors them into the decision-making process and, where reasonable, contributes in a positive way to the statutory target achievement; and certainly that it does not make it more difficult for the statutory targets to be achieved.
I have said that the noble Baroness, Lady Hayman, has previous on this. Noble Lords who took part in the Crown Estate Bill recently will have heard the her argue for a clause very similar to this. She successfully persuaded the Government of the need to join up the functions of the Crown Estate with the climate and nature targets. During that Bill’s passage, the Minister agreed both in Committee and on Report that:
“It is right that the public and private sectors make every contribution they can to help achieve our climate change targets”.—[Official Report, 14/10/24; col. 75.]
I hope we can persuade the Minister that this is an even more important case than the Crown Estate having an eye to the climate change and biodiversity targets, and that GB Energy will have an appreciable impact on both of those targets. We need to hardwire it in from the outset, particularly since, as was outlined in the previous debate, we have not yet seen GB Energy’s strategic priorities and plans.
I hope the Minister will accept that what was good for the Crown Estate goose applies equally to the GB Energy gander. I want to make a festive allusion, if noble Lords will pardon my lame attempt: I hope the Minister will agree that what is sauce for the goose is sauce for the gander, and that GB Energy should have a similar requirement laid on it as was accepted and passed for the Crown Estate. I hope we can persuade the Minister of that.
My Lords, very briefly, I offer Green group support for Amendment 56 and, in particular, Amendment 116, which has broad support, as we see from the signatures. I declare my interest as a member of the advisory committee, as I think it is now called, Peers for the Planet. The noble Baroness, Lady Young of Old Scone, has already said many of the things I was going to say. I just add that I can go back even further than she did, to the Pension Schemes Act 2021. That was an historic moment, with climate being written into a finance Bill for the first time ever.
I have been in your Lordships’ House for five years, and we have had win after win, as the noble Baroness just outlined. It really is time for us to stop having to bring this to the House to be inserted, taking up so many hours of your Lordships’ time to get us to the point at which clearly the Government should have started.
I will add an additional point to what the noble Baroness, Lady Young, said. In the recent election, Labour explicitly said that it was aiming to take a joint nature and climate approach to its way of operating the Government. This surely has to be written into the Bill.
To set the context, a nature recovery duty was discussed in the other place. My honourable friends Siân Berry and Adrian Ramsay were prominent in that, along with people from other parties. We are one of the most nature-depleted corners of this battered planet, but our statutory duty is at the moment only to stop the decline, not even to make things better. We surely cannot be creating such an important new institution as this without building nature into its statutory obligations. The Government regularly remind us that the economy and GDP growth is their number one priority, but the economy is a complete subset of the environment. The parlous state of our environment is an important factor in the parlous state of our economy.
(1 month ago)
Lords ChamberMy Lords, I declare my interest as chair of the Labour Climate and Environment Forum. I add my name to the commendations given to the maiden speech of my noble friend Lady Beckett. She was my boss when I was chief executive of the Environment Agency. She was a very scary lady, but hugely kind and incredibly supportive. She taught me a tremendous amount. Our House will be a better and more thoughtful place for her presence and wisdom.
I welcome the Bill—it seems that not many people do—and the opportunity that GB Energy will provide to use public money to leverage and create direction for private investment to tackle climate change and meet our net-zero objectives. Unlike practically everybody else, I am going to simply raise five points for my noble friend the Minister. All of them are about Great British Energy and the content of the Bill.
First, community energy has already been raised by the noble Baroness, Lady Hayman. The propaganda text around GB Energy’s creation has been very explicit about GB Energy playing a big role in supporting community energy. Community energy schemes are really important if we are to persuade communities that the disruptions and downsides of renewables and rewiring the grid have something in it for them by way of cheaper, greener and more secure energy. Local power plans, which I hope include community schemes, are one of the five priorities for GB Energy in its founding statement. If it is a real commitment for GB Energy to deliver community energy schemes, why not put that requirement in the Bill?
Community energy schemes currently generate around only 0.5% of the UK’s electricity. Studies by the Environmental Audit Committee and others estimate that this could increase twentyfold in 10 years, powering 2.2 million homes and saving 2.5 million tonnes of CO2 every year. It can create jobs, reduce local people’s bills and boost local infrastructure investment. Lots of other nations have seen community-led renewable energy schemes growing over the last 10 years, but we are stuck at the level it was when feed-in tariffs ended. We have not grown since.
What is most worrying about not having a statutory requirement for GB Energy to support community energy in the Bill is that Jürgen Maier, who was much praised by the Minister as the chair of GB Energy, is already on record as saying at a parliamentary hearing that he did not believe that community energy had the potential to generate gigawatts. That is totally at odds with the assurances given by the Government both in the Labour manifesto and during the passage of this Bill in the other place. If we are to have the confidence of investors and communities, and not have confusion on the role of GB Energy in this area, we need community energy in the Bill.
My second point leads on from that, to some extent. It is about the Secretary of State’s statement of strategic priorities. It is important that we see this in draft, at least in Committee. Community energy is only one issue that we want to see in it. Without sight of the statement of strategic priorities, we are being asked to buy a pig in a poke to some extent. Can the Minister tell us when we might see the Secretary of State’s statement of strategic priorities?
The third issue I want to go on about is in my capacity as a long-playing record. Many noble Lords around this House can remember what a long-playing record is, whereas vast quantities of the British public would not have a clue what I am talking about—but I am a long-playing record in this respect. Although GB Energy clearly has excellent net-zero objectives—that is what it is there for, as the noble Baroness, Lady Hayman, said—we face a twin crisis of climate change and biodiversity recovery. GB Energy needs to be given an objective on biodiversity recovery.
It will have a role in de-risking and accelerating clean energy developments. There is always a possibility, at that point, that there could be a trade-off between biodiversity and delivering net zero, but it is not either/or—it is both/and. We need to be smart, and GB Energy needs to be given objectives on both net zero and biodiversity recovery; they need to complement each other.
There is a quick way around this. We could support the Private Member’s Bill in the name of the noble Lord, Lord Krebs, which would give the twin objectives of climate and biodiversity to all relevant public bodies. I think it is important that we have these twin objectives for GB Energy. There are lots of examples of similar—although not quite the same—entities, which are virtually independent of the state but are sponsored and wholly owned by the state, that kind of lose the plot. The Forestry Commission plants trees, but it does not do very much to plant trees for biodiversity and climate change. The water companies, which are basically creatures of the public purse, have gone seriously off the rails. I hope we can make sure that GB Energy does not get a rush of blood to the head with its new-found independence and become so fixated with net zero that it cannot do anything else.
My fourth point is on accountability, which has already been raised. We can all read the published accounts of plcs from Companies House. They do not cast much light on many occasions. It is important that this body, which has an important role and a fair slug of public money, provides more back to both Parliament and the public on how it is delivering on its role. It needs to provide a report on a regular basis about the Secretary of State’s strategic priorities and how they are being delivered. If the Secretary of State has not had the foresight to see community energy and biodiversity recovery as strategic priorities, we need reports on these—whether they are strategic priorities or not.
I do not want to see some of the inflexibility that I have heard described around the House today in requiring more and more burdensome reports from this company. It is being set up specifically to give flexibility to allow the Government to influence the direction of an emerging set of technologies as they emerge. We do not want to strangle it at birth with reporting requirements, but there needs to be a happier medium between that and simply the Companies House report.
Last but not least, you could not expect me to do a speech in this House without talking about land use. Great British Energy will inevitably be engaging with spatial issues, such as new grid infrastructure and other energy development locational issues. Any planning role or role that engages with land use and spatial issues will need to complement the existing work of both private and public bodies, including the National Energy System Operator, in producing the strategic spatial energy plan. Spatial energy issues are important, but they need to be resolved in the context of all the pressures on land—for example, other infrastructure types, housing, flood risk management, food production, biodiversity, forestry and carbon sequestration, to name but a few.
The previous Conservative Government promised me the publication of a land use framework for England as a Christmas present last Christmas. I thank the new Labour Government for their commitment to producing a land use framework for England. I know it is there in draft and I had hoped we might be out to consultation by this Christmas. That would be a nice Christmas present. Can the Minister confirm that the Government see the importance of setting the strategic spatial energy plan in its broader land use context and framework? I think it is called joined-up government. If so, when might the land use framework consultation emerge?
Finally, I wish good luck to the Minister in responding tonight. The discussion has been amazingly wide, right across the energy policy agenda and beyond, for a very tiny Bill for a very specific purpose. It is going to be a bit like summarising the entire works of Proust in 21 seconds.
(2 months, 1 week ago)
Lords ChamberMy Lords, I declare an interest as chair of the Labour Climate and Environment Forum. I too am very honoured to have served on this inquiry. I am always amazed by the skill of the noble Baroness, Lady Parminter, in chairing what was a motley crew and her skill this afternoon in being able to name in exquisite detail all the schools we worked with, with no notes whatever. Doesn’t it just make you spit?
Sales of new battery electric vehicles are up—I do not think we should be excessively gloomy. They went up considerably in 2023, but of course that was happening mainly in fleets, and private new car demand for electric vehicles declined substantially during that same year.
I want to deal with four of the issues that have been raised already by noble Lords but perhaps focus on aspects that have not yet been covered. The whole charging infrastructure is the first. There are now 70,000 public charging points and 850,000 domestic and workplace points, and that is still substantial growth. Some 80% of current electric vehicle owners have their own off-street parking, so we must make sure that we do not end up with a situation of haves and have-nots. Equalising tax on charging is really important.
The mixed signals that we got from the previous Government about whether it was going to be a 2030 or 2035 phase-out date did not help the charge point operators—it undermined their prospects of investment. We need to make sure that the clarity around the date of the phase-out—which was in the manifesto, as the right reverend Prelate the Bishop of Oxford mentioned—is honoured and sustained, so that everybody is very clear about the trajectory to which we are working.
There are considerable incentives in place at the moment for charge point installation—such as the rapid charging fund and LEVI, which is a local authority scheme—but they have not accelerated charge point rollout to quite the rate that we wanted. For example, the LEVI rules keep changing, making it very difficult for folk to deal with. There are a number of laggard local authorities that have done nothing since the scheme was opened, and that needs to be subject to government action. Local authorities are key in making charge points available for people who have not got access to driveway parking, and collaboration between charge point operators and local authorities is fundamental. The LEVI scheme and some of the initiatives put in place by the last Government to make it successful need to be continued and looked at, to make sure that they have not been lost sight of in the transition.
The Government have been consulting on-street charging. It would be good to know from the Minister when the results of that consultation are likely to emerge and what is going to happen as a result of them. There is a view that there is a need for Section 50 licences to allow on-street charging to happen, but these are quite expensive and very slow. Why not grant permits to deliver on-street charging in the way that utilities have standing permits to operate the works necessary to keep them moving?
As the noble Lord, Lord Birt, indicated, the rapid charging fund is dragging. It is only a pilot scheme so far. When it is rolled out in full, it needs to include the provision that was in the pilot of having HGVs included. It would be good to hear from the Minister when the full scheme will be introduced.
There is a cross-pavement charging grant, but the guidance on how that will operate has not yet been published. As a result, the money that was set aside for it has literally not been utilised. Can the Minister say what plans the Government have to take forward the cross-pavement charging grant? To be frank, I think that it is not a good idea. I would be much more in favour of looking at how we can ensure that, within communities, there are sufficient accessible charging points, so that people can be assured that they will find one within a decent walking distance of their house, rather than having the prospect of intrusion into pavements by works sponsored by a grant to individuals.
The second point I want to cover is that of upfront costs. The vast majority of people who are buying electric vehicles at the moment are buying them through workplace or other leasing schemes, so I am not as downcast as some previous speakers have been. The second-hand market, which is a really important part of the vehicle market, is struggling. That is partly because of a lack of clarity about depreciation as a result of uncertainty around battery health. I would be grateful if the Minister could tell us what is happening with the support scheme for battery assurance certificates. It has been consulted upon; when will it come about? Could the Minister also tell us how the fairly substantial investment that the Government have put into battery development and initiatives such as solid-state batteries is going?
Commercial fleet operators are key, and the upfront costs of trucks are still very expensive—by a factor of three, compared with diesel. The current government grant schemes are pretty small, so perhaps we need a combination of increased grants and tax incentives, as well as tax disincentives. Disincentivising tax on diesel trucks will help create the market for electric vehicles in the commercial sector.
I turn to one of the bees in my bonnet that the committee discussed: marketing and communications. The reality is that the climate change challenge is one of the biggest that the world has ever faced, yet we do not have a government-co-ordinated marketing scheme for electric vehicles to persuade the public that some of their concerns and fears are being met and are not as huge as they think they are, using modern marketing techniques, social media and all those sorts of things. Under the previous Government, we frequently had Ministers in front of the committee who told us that that was an example of the nanny state and that the Government did not do that.
The reality is that there needs to be a concerted campaign against what is a big disinformation campaign. If you read local and national newspaper reports on electric vehicles, you would think that they are the Antichrist and liable to eat babies if left unattended. Range anxiety is said to cause stress, but range anxiety is rapidly becoming a non-entity. There are groundless fears about spontaneously combusting batteries, and of battery life and resale value. All those fears are not justified by the evidence but the tabloids, and other far more reputable newspapers, continue to peddle them like billy-o. The time has come for the Government to recognise that it is important to take forward a concerted campaign with modern marketing techniques and good information reliably provided to the public, and that this must not be left on some government website for the public to have to seek out. That is long overdue.
I will finish with the ZEV mandate. I do not agree with the noble Lord, Lord Woodley, who is not in his place, that the timescale should be adjusted, although I agree with him that some of the market incentives need to be geared up. We must not forget that it is important to bring in electric vehicles at a greater rate not only for climate change but for the manufacturers themselves. Increasingly, the world is looking for electric vehicles, rather than diesel and petrol. If we are to keep our place at all as an exporter of UK vehicles, we need to make sure that we can meet that requirement and do not see a diminution in the pace of moving our manufacturing capability towards electric vehicles.
I hope that the Minister will be able to give us strong assurances that the Government are not spooked by the manufacturers’ push-back at the mandate, and that there will be a strong campaign for the promotion of electric vehicles and a tweaking of the grants, taxes and other mechanisms, as noble Lords have spoken about today. We do not want to break stride. We need to find ways of addressing the hiccups and bumps in the road that mean that the manufacturers are feeling uncomfortable. We need to meet their legitimate concerns, but not by changing that date.
The mandate is one of the biggest tools in the toolbox. Electric vehicle sales are going up, especially in the lease market. We are seeing heavily discounted prices, which are good for the customer as well as for the climate. If you look at the exact calculations for the 2024 target, which with proper adjustments is about 18.5%, you will see that we are on target to meet it, and therefore should not be panicking now. So let us keep up the pace, drive down the carbon and the costs, drive more feedstock into the second-hand market, and make a real contribution to the huge challenge that is climate change.
No doubt the noble Lord, Lord Lilley, would have hysterics at any suggestion of taxation benefits or subsidy. But the reality is that we are rapidly seeing a closure of the upfront cost between electric and petrol vehicles, and that is as long as the subsidy needs to persist—we are not talking about it being in place for a very long time. We are talking about these sorts of subsidies being time limited by the point when electric vehicles can hold their own in that market.
I also thank the noble Lord, Lord Lilley, for his strenuous efforts on the committee to keep us honest. Many of his points were absolutely admirable, but I think the point at which I parted company from him was this: he does not believe that the costs of not doing this are higher than the costs of doing it, and that climate change down stream has huge costs that are now dreaded by the reinsurance and insurance market, the banking sector and every sensible business. Of course, if you do not believe that, a cost now is a bogeyman, and a cost in 20 or 30 years that you do not believe in is not worth thinking about. It was fun.