Energy Bill
Debate between Lord Redwood and Michael Fallon(12 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
The Minister of State, Department of Energy and Climate Change (Michael Fallon)
I beg to move, That this House disagrees with Lords amendment 105.
The amendment would give the Secretary of State power to apply the emissions performance standard—EPS—to any existing fossil fuel power station that fits the pollution clean-up equipment that is needed to meet the tighter limits, set by the industrial emissions directive from January 2016, on emissions of oxides of sulphur and nitrogen. Under that directive, plants that do not fit clean-up equipment will from January 2016 be subject to a 17,500-hour limit on their operation, after which they must close, or, from mid-2020 be limited to just 1,500 hours of operation a year. The intention behind the amendment is to use the EPS as a regulatory tool for limiting carbon emissions from any existing coal-fired power station that is not otherwise forced to close and/or have its operation limited under the directive.
First, the Government do not consider that power to be necessary. Secondly, the measure risks deterring any investment in equipment needed to comply with the directive, the consequences of which could be detrimental to consumers. I remind the House that the EPS is intended to support the planning requirement that any new coal-fired power station must be equipped with carbon capture and storage. The EPS is, therefore, about ensuring no new unabated coal, and is a clear and unambiguous regulatory measure that signals our commitment to decarbonisation.
Mr John Redwood (Wokingham) (Con)
Will the Minister confirm that eight plants are closing under the EU directive already, and if any more plants had to close the lights would go out?
Michael Fallon
I was coming on to the list of stations that have closed. My right hon. Friend is absolutely right that we need urgently to replace the capacity that is coming off the system. Coal, as he will know, currently accounts for around a quarter of our reliable generating capacity, but that is set to decline rapidly over the coming years. Last year, Kingsnorth closed, this year we have seen the closures of Cockenzie, Didcot A and Tilbury, and we expect Ferrybridge C and Ironbridge to follow suit.
Energy Bill
Debate between Lord Redwood and Michael Fallon
Michael Fallon
No, I certainly will not do that; gas is a key part of our carbon plan, and I hope that the hon. Gentleman will look at the gas strategy as a whole.
Setting a target now to come into effect next April would mean not waiting to consider what is happening in the wider economy, for example, the progress being made in the commercial deliverability of carbon capture and storage, how that could contribute to decarbonising our energy supply, and the take-up of electric vehicles in the coming years. Therefore, setting a target now risks imposing additional costs on the economy and on consumer bills in the future in order to meet the target, and that would not be helpful for anyone.
The Government believe that the right approach is to make a decision on whether to set a target in 2016, when we can consider the whole picture. That already means setting the target range 14 years before it is due to be met. That is even longer than is required under the Climate Change Act 2008 in respect of carbon budgets, which are set 12 years ahead. Setting it now—in effect, asking Ministers to set it at Christmas—means that we would be doing so 17 years ahead. I suggest to the House that there is no certainty for investors in setting a target before we can possibly know how we can meet it.
That takes me to my second point, which is that the Secretary of State can only make a decision on whether to set a target when considering the trajectory of the whole economy towards our 2050 target in a way that is consistent with the overarching framework provided by the Climate Change Act. The timing is important. There is significant interaction between the electricity sector and other sectors of the economy, especially those, such as heat and transport, that might well become more dependent on electricity as we move into the 2020s and 2030s. That will in turn have an impact not only on overall demand for electricity but on when that electricity is needed.
Such questions must all be considered together when thinking about the best way to decarbonise electricity generation as part of a least-cost route to meeting our obligations under the Climate Change Act. It is therefore vital that a decision to set a target range is not taken in isolation, which is the approach suggested by my hon. Friend the Member for South Suffolk and the hon. Member for Brent North, but in the context of considering the pathway of the whole economy towards our 2050 target. That date will be in 2016 and not before, because 2016 is when we are due to set in law the level of our economy-wide fifth carbon budget, which will cover the corresponding period between 2028 and 2032. At that point, we will be able to consider the pathway of the whole economy towards our overarching 2050 target and understand better the most cost-effective way to achieve that. If at that point in time it is decided that a target range is the right approach, we will have the legal authority under the Bill to act swiftly to set a binding target at the right level.
I believe that my hon. Friend the Member for Wealden (Charles Hendry) was right to say in an article last weekend:
“My difficulty with the target…is that we would be requiring it to be set without knowing that it can be met, and that cannot be a responsible decision for government to make, when the costs of getting it wrong would have to be picked up by consumers for decades to come.”
His argument is that given the uncertainties about the relative costs and potential of different low-carbon technologies, it would not be right for a Government to set a target now without first having thought through precisely how a particular level would be achieved. I agree with him and believe that that is why we should consider setting a target range in 2016 in the wider context of setting and determining how we will meet the fifth carbon budget.
That takes me to my final argument, which is that amendment 14 requires that the level of the decarbonisation target range must not exceed that recommended by the Committee on Climate Change. I fully agree that there should be a role for the committee and our proposed approach takes that into account.
Mr Redwood
Is the Minister at all concerned that China, the United States of America, Japan and most other non-EU countries are not setting any of those targets and as a result have much cheaper energy than we do?
Michael Fallon
Some have not passed climate change legislation, of course, which is why they are not bound to set targets.
By waiting until 2016 to make a decision on whether to set a target, the Government can take on board the advice provided by the Committee on Climate Change on the level of the fifth carbon budget, covering that period, as part of its responsibilities under the Climate Change Act. That advice must include views on the whole economy, including the electricity sector.
It would be wrong to blur the lines of accountability between the Committee on Climate Change and the Secretary of State, as the role of the committee is to advise the Government and not to set policy. That point was made neatly by the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock), who was the Minister in charge of the Climate Change Bill in Committee in 2008. She said:
“The committee will have a vital role in providing impartial advice and scrutiny, but we do not think it appropriate for an unelected body to make, or be seen to be making, policies. The individual decisions that will directly affect families, communities and businesses should be made by Parliament and the Government.”––[Official Report, Climate Change Public Bill Committee, 3 July 2008; c. 285-286.]
That could not be clearer and I agree that it should be for the Secretary of State to decide the level of any decarbonisation target range, because it is he who ultimately bears the responsibility and is accountable to Parliament. Of course, he should take into account the committee’s advice, just as he does now when setting the carbon budgets, but that advice should not impose a legal constraint.
Growth and Infrastructure Bill
Debate between Lord Redwood and Michael Fallon
Michael Fallon
I am very happy to ensure that my colleagues at the Department for Communities and Local Government will discuss that with the LGA, if that will be helpful.
Let me now turn to—
Mr Redwood
I am grateful to the Minister for giving way, and he need not look so heavy-hearted, as I am going to say that I greatly welcome the changes, and that many Members on the Government Benches feel the Government have listened and come up with a sensible proposal. Will he just confirm that existing permitted development rights are not in any way affected by this new procedure, and that they are still there in perpetuity for people to use without any hassle?
Michael Fallon
Yes, I can confirm that, and I can also assure my right hon. Friend that I was not heavy-hearted; I was simply keen to move on to the employee shareholder clause, and I was wondering how long I was going to be occupied in explaining how my right hon. Friend the Secretary of State for Communities and Local Government had fulfilled his commitment last week to listen to the concerns expressed in this House and to come forward with what I suggest is a very reasonable compromise.
Let me now, finally, turn to the employee shareholder clause. It establishes a new employment status between employee and worker. The Government have always been clear that this measure is entirely voluntary, and that it is open to both individuals and companies to use it if they choose to do so. I emphasised that again in our debate a week ago. In response to concerns expressed by my right hon. Friend the Member for Hazel Grove (Andrew Stunell) and peers in the other place, last week I reassured both Houses about the wholly voluntary nature of this new status. I made a commitment that no one can be forced to apply for, or to accept, an employee shareholder job. I announced that the Government had revised and clarified the position for those claiming jobseeker’s allowance. The position now is that jobseekers cannot be compelled to apply for or accept an employee shareholder job if they do not consider it right for them.