Oral Answers to Questions
Kerry McCarthy Excerpts(3 days, 23 hours ago)
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Johanna Baxter (Paisley and Renfrewshire South) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
We know that nature-based solutions have a key role to play in climate mitigation and keeping to 1.5°C at home and abroad. I have met the Minister for Nature, my hon. Friend the Member for Coventry East (Mary Creagh), and the Government have appointed two special representatives for climate and for nature, who will be working closely together too.
Dr Savage
The climate and nature crises are now recognised as inextricably interlinked—we cannot resolve the climate crisis without addressing the nature crisis—but that is not recognised in current legislation. Will the Minister meet me to discuss my Climate and Nature Bill and its potential to achieve the Government’s stated goal of integrating UK climate and biodiversity policy?
Kerry McCarthy
We are not convinced that the Bill is necessary as a well-developed legislative framework with legally binding targets is already in place, including, of course, the Climate Change Act 2008 and the carbon budgets. However, I appreciate the action on both climate and nature and the hon. Member’s commitment to both. I believe that our offices are already trying to find a date for us to meet.
Johanna Baxter
My constituency of Paisley and Renfrewshire South is home to the beautiful RSPB Lochwinnoch nature reserve. In addition to supporting our biodiversity, the reserve serves as a natural carbon sink. Globally, wetlands hold approximately 20% to 30% of the Earth’s soil carbon despite covering only 5% of the land surface. Will the Minister outline how the Department is integrating wetland and peatland restoration into its strategy for meeting the UK’s carbon capture and storage targets?
Kerry McCarthy
I am aware of the excellent work being carried out at Lochwinnoch. We know that protecting and restoring our peatlands is essential for tackling the climate crisis. We are committed to restoring approximately 280,000 hectares of peatland. We are also looking at innovative ways of getting funding into those nature-based solutions so that they can thrive.
Kenneth Stevenson (Airdrie and Shotts) (Lab)
Cleve Hill Solar Park
Kerry McCarthy Excerpts(1 week, 3 days ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
It is always a pleasure to see you in the Chair, Dr Huq. I begin by congratulating the hon. Member for Faversham and Mid Kent (Helen Whately) on securing the debate and giving us a chance to discuss an important topic, not just for her constituents. I hope she will understand, however, that due to the quasi-judicial role that my right hon. Friend the Secretary of State plays in taking decisions on applications for development consent for energy infrastructure proposals, it would not be appropriate for me to comment on matters related to any specific proposals.
Although the development consent order for Cleve Hill solar park was granted by the previous Government in 2020, as she said, the Department for Energy Security and Net Zero may still be involved in any proceedings relating to the implementation of that order. As a result, I cannot comment today on the details of that project. The reasons for the decision and details of supporting plans are available on the Planning Inspectorate’s website, as the hon. Lady knows. I am afraid I cannot elaborate or speculate on that published material.
The hon. Member spoke eloquently about the importance of the site to her constituents—the views, the biodiversity and the birds, and the importance of wetlands. My colleagues in the Department for Environment, Food and Rural Affairs and I are working closely on nature-based solutions to climate change, and wetlands play an important role. I am also glad that the hon. Member acknowledged the importance of reaching our net zero objectives, with that mission for clean power, by 2030.
As I said, I cannot speak specifically about Cleve Hill, but I hope I can reassure her by speaking in general terms about Government policy. First, it ensures that all local impacts are considered in the planning process. Secondly, it makes a steadfast commitment that those who host clean-energy infrastructure should benefit from it. In order to achieve our goal of clean power by 2030, we will need to deploy various renewable energy sources. According to the recent National Energy System Operator clean power pathway report, we need to increase solar deployment from 15 GW to 47 GW. Along with onshore wind, solar is the cheapest clean power option available to us right now, making it an essential part of the UK’s energy mix. Without a substantial increase in solar deployment, the clean power mission becomes very difficult.
That is why my right hon. Friend the Secretary of State relaunched the solar taskforce earlier this year. It is also the reason that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has this portfolio, cannot reply to the debate, because he is at a meeting of the solar taskforce. The taskforce brings together the industry and Government to discuss the actions needed to rapidly increase the deployment of solar panels on rooftops and in solar farms, and it will publish its recommendations in a solar road map very soon.
We should never lose sight of the core motivation behind our clean energy mission. Clean power generated here in Britain will reduce our dependence on volatile imported fossil fuels. It will provide lower bills in the long term and create thousands of highly skilled future-proofed jobs across the country. Delivering those benefits for the British people requires the development of new infrastructure. We accept that a top priority should be the deployment of solar on rooftops. That is why we are bringing forward new standards to ensure that all newly built houses and commercial buildings are fit for a net zero future. We will encourage the installation of solar panels on those buildings where appropriate.
But we know that our mission will require more ground-mounted solar too, and decisive reform to the planning system is urgently needed to support that. As the Prime Minister said last week, we will streamline the approval process in the forthcoming planning and infrastructure Bill. As part of the new plan for change, in which the Prime Minister set out the milestones in how the Government will deliver on our national missions, we will work towards the new target of 150 major infrastructure projects, including energy projects. That will mean tripling the number of decisions on national infrastructure, compared with the previous Parliament. We recognise the impact that such new energy projects can have on local communities and the environment. The Government are committed to striking the right balance between those considerations when delivering the clean power mission.
All proposed solar projects are subject to a robust planning process. Most projects are assessed by local planning authorities themselves, and those assessments are governed by the national planning policy framework, which encourages developers to engage with local communities before submitting an application. Local planning authorities will continue to seek representations from local communities and will continue to weigh local considerations against the need for renewable energy.
As the hon. Member for Faversham and Mid Kent said, larger projects such as the Cleve Hill solar park are decided centrally through the nationally significant infrastructure regime. That is a rigorous process. Developers whose projects qualify for the assessment must complete considerable community engagement before any decision is taken, and decision makers take into account its level and quality.
We recognise that new infrastructure can have an impact on the local community, and the planning system is designed to take account of the social, cultural, economic and environmental effects. Indeed, all large-scale solar developers are legally obliged to complete an environmental statement as part of any application for development consent. The hon. Members for Faversham and Mid Kent and for Strangford (Jim Shannon) raised disruption, which will be considered as part of the environmental statement.
The statement requires the developer to consider the potential environmental impact of a project, not just during the construction phase but during its life. It spans pre-development, construction and operation, all the way to decommissioning. The statement is a helpful tool that allows planning authorities to review any significant effects on biodiversity or the environment. I know the hon. Member for Faversham and Mid Kent is committed to improving the natural environment, and she spoke eloquently about her vision for that part of her constituency. There is some evidence to suggest that solar can improve biodiversity when installed and managed appropriately. The environmental management plan for Cleve Hill includes commitments to build a habitat management area of 56 hectares, which is predicted to increase on-site biodiversity by 65%.
I want to touch briefly on the use of agricultural land for solar. I hope I can reassure the hon. Lady that the Government recognise that food security is linked to national security, and that we will always back British farming. In previous years, we worked together on the all-party parliamentary group for fruit and vegetable farmers, which she chaired, so I gained some knowledge of the importance she attaches to standing up for farmers in her constituency.
Planning guidance makes it clear that developers should situate their projects on brownfield or industrial sites whenever possible. Where the development of agricultural land is shown to be necessary, developers are steered away from using the best and most versatile land, and we have no plans to change that. We do not believe, however, that the accelerated deployment of solar power poses a threat to food security. The total area of land devoted to solar farms nationally is very small. Even in the most ambitious scenarios, less than 1% of the UK’s agricultural land would be occupied by solar farms. My colleagues at the Department for Environment, Food and Rural Affairs are developing a land use framework, which will consider issues such as food security and how we can expand nature-rich habitats. The framework will work hand in hand with the strategic spatial energy plan.
May I just ask, Dr Huq, will the hon. Member for Faversham and Mid Kent be given a minute to respond?
Kerry McCarthy
Okay.
I come on to the issue of battery safety. I note that the hon. Member for Faversham and Mid Kent said that members were given some reassurance at the community meeting she held but still have significant concerns about fire safety. As she knows, batteries are regulated by the Health and Safety Executive. The framework requires battery designers, installers and operators to take the necessary measures to ensure health and safety through all stages of the system’s construction, operation and decommissioning.
The Government have updated the planning practice guidance to encourage battery storage developers to engage with local fire and rescue services and for local planning authorities to refer to guidance published by the National Fire Chiefs Council, which I note the hon. Lady said was represented at the meeting she held. The health and safety framework for batteries is kept under review to respond to changing circumstances. In 2018, the Department for Business, Energy and Industrial Strategy set up an industry-led electricity storage health and safety governance group, whose members include the National Fire Chiefs Council, the Environment Agency and DEFRA. That group is responsible for ensuring that an appropriate, robust and future-proofed health and safety framework is sustained. My Department worked with it to develop and publish health and safety guidance for grid-scale batteries that aims to improve the understanding of existing health and safety standards, which the battery storage industry should apply to its own processes.
The hon. Member for Faversham and Mid Kent mentioned DEFRA. As I understand, DEFRA is considering further options, including environmental permitting, for managing the environmental and public health risks from fire at grid-scale sites. I am happy to speak to my colleague in DEFRA who is responsible for that and get back to the hon. Lady on her specific question—she will appreciate that I cannot answer on their behalf today. If her constituents require any further reassurances on the safety issue, my hon. Friend the Member for Ashford (Sojan Joseph) will be happy to follow up on that in writing.
In the few minutes I have left, I turn to community benefits. We absolutely understand that we need to fully engage with communities and bring them along with us on our clean power mission, which includes public engagement and consultation. The hon. Member for Faversham and Mid Kent asked specifically about community benefits. We know that communities are providing a service to the country as a whole when they host clean energy infrastructure, so there need to be benefits for them. Sometimes there is a direct benefit where the infrastructure is owned by the community—the benefit goes straight back into the community, whether it is through solar panels on a village hall or one of many other examples—but we are considering how best to deliver those community benefits to host communities. That includes looking at existing examples in Europe and further afield to see what has worked well.
A wide variety of community benefits can be delivered, including funding for local projects, investment in the local area, direct benefits to individuals and, as I said, opportunities for community ownership. Great British Energy will build on existing community energy schemes, helping communities to unlock opportunities through the local power plan. In the hon. Lady’s constituency, up to 1,400 homes are powered by Orchard Community Energy, which is a community-owned solar farm near Sittingbourne that provides power to Swale and Medway. That puts communities at the heart of the energy transition and gives them a stake in the transition to net zero as owners and partners in clean energy projects.
As I said, the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North, is today at the meeting of the solar taskforce, which brings together industry and Government. It is considering the question of how a community can benefit from the infrastructure that is hosted on their patch, and its recommendations will be published in the solar road map.
To conclude, the Government are committed to considering the interests of local communities affected by proposed energy infrastructure. I thank the hon. Member for Faversham and Mid Kent for securing the debate and for giving me the opportunity to set out the Government’s vision. We will work to balance the local impact of new projects with the delivery of our clean power mission. The renewable energy transition will always be done through co-operation rather than coercion, ensuring that all parties benefit on our journey to net zero.
Question put and agreed to.
Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024
Kerry McCarthy Excerpts(3 weeks, 4 days ago)
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Sir Roger Gale (in the Chair)
Members may remove their jackets if they wish to, if they are hardy or foolhardy enough.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
I beg to move,
That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024.
As always, it is a pleasure to see you in the Chair, Sir Roger. The draft order was laid before Parliament on 22 October 2024. To give a bit of background, the UK emissions trading scheme was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020, as a UK-wide greenhouse gas emissions trading scheme contributing to the UK’s emissions-reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments. Our aim is to be predictable and responsible guardians of the scheme and its markets.
We have introduced this statutory instrument to enable several important changes and improvements to the scheme. It resets the UK ETS cap to be in line with the top of the net zero-consistent range. The cap sets a limit on how many allowances can be created over the trading period, which runs from 2021 to 2030, and in each year. That level reduces over time to drive down total emissions. When the scheme was established, the cap for the legislated period of the UK ETS—from 2021 to 2030—was set at 5% below the UK’s expected notional share of the EU ETS cap for the same period. However, that was not consistent with the UK’s net zero trajectory for the traded sector. This statutory instrument brings the overall UK ETS cap in line with our net zero target and carbon budgets under the Climate Change Act.
The statutory instrument also reduces the industry cap, which is the total number of allowances that can be made available to existing installations for free if no cross-sectoral correction factor mitigation is applied. The SI reduces the absolute level of the industry cap while increasing its proportion of the overall cap. While the share of allowances set aside for this purpose will increase from 37% to 40%, the reduction in the overall UK ETS cap means that the industry cap will fall. That will help to mitigate the risk of carbon leakage across participating sectors while maintaining an effective incentive to decarbonise.
The statutory instrument creates a flexible reserve of allowances for maintaining market stability and sufficient carbon-leakage mitigation. In addition to allowances specifically created for the reserve, unallocated free allowances from the industry cap and designated free allowances that are returned by operators due to changes in participant eligibility or activity level reductions will also stock the flexible reserve. The flexible reserve can be used to increase the allowance supply for market-stability purposes if the cost-containment mechanism is triggered. The flexible reserve can also mitigate the application of the CSCF through a uniform reduction to all eligible existing participants’ free allocation if the eligibility for free allocation exceeds the industry cap.
I will move on to venting and flaring. Under current legislation, carbon dioxide released through flaring in the upstream oil and gas sector is included in the UK ETS, as it is within the scope of the regulated activity of combustion. This SI introduces CO2 that is released through venting in the upstream oil and gas sector into the scope of the UK ETS for installations already covered by the scheme. That means that such emissions will also be subject to a carbon price.
The controlled processes of venting and flaring can sometimes be essential for safety purposes. They are also used in more routine situations where the oil and gas hydrocarbons are unable to be used, exported, or reinjected without CO2 being removed. The removed CO2 can then be released in the process of flaring, when waste gas, including the stripped-out CO2 as well as combustible elements, is ignited, or in the process of venting, when unignited gas is released through a vent. The legislation will remove a perverse incentive whereby operators could routinely vent gas that contains carbon dioxide without it being subject to a carbon price, even though it would, if flared, constitute reportable emissions for the purpose of the scheme.
I will now move on to Northern Ireland. In line with the original policy intent, the statutory instrument extends legislative amendments made by the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 to Northern Ireland. The amendments include capping the aviation free allocation at 100% of emissions, clarifying the treatment of carbon capture and storage plants, and freeing the allocation rules for electricity generation.
In 2022, a memorandum of understanding between the UK and Swiss Governments was signed, setting out the intention to include flights from the UK to Switzerland in the UK ETS. Such flights were brought into the UK ETS scope on 1 January 2023 by the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Order 2022. The statutory instrument extends the scope to cover flights that depart from an aerodrome in Northern Ireland and arrive at an aerodrome in Switzerland.
Scheme regulators are responsible for enforcing compliance, including operational functions such as the issuing of penalties. The statutory instrument makes a number of amendments to the levels of scheme penalties to ensure the consistency and proportionality of enforcement for all operators. It also introduces a new deficit notice, with an associated penalty, to strengthen the enforcement of the fundamental scheme obligation to surrender allowances equal to an operator’s annual emissions.
Finally, the statutory instrument makes several corrections and clarifications to existing legislation. The changes follow appropriate and comprehensive consultation with stakeholders. In the “Developing the UK Emissions Trading Scheme” consultation in 2022, the UK ETS Authority considered proposals on changes to the rules for sectors covered by the UK ETS to ensure that more greenhouse gas emissions were covered by the scheme, along with changes to the cap.
The authority response to the consultation was published in two parts, in August 2022 and July 2023. A majority of respondents agreed with the UK ETS Authority proposals on creating a flexible share reserve of allowances, on bringing venting in the upstream oil and gas sector into the scope of the ETS, and on the addition of a new penalty and deficit notice. Several respondents expressed concern regarding the reduction of the cap and the changes to the industry cap; an assessment of these responses informed the decision to set the cap at the top of the net zero-consistent range.
Between 23 February 2024 and 8 March 2024, the UK ETS Authority ran a targeted consultation on the minor penalty amendments. The responses to this consultation were in broad agreement with the proposals, or noted that they were not affected by them. The authority response has been published in advance of the laying of this statutory instrument.
The changes in the draft order will deliver on commitments made by the UK ETS Authority and improve the operation of the scheme. The alterations to the UK emissions trading scheme will support its role as a key pillar of the UK’s climate policy. They show that we will take action to extend and improve the scheme where necessary. I commend the draft order to the Committee.
Kerry McCarthy
I thank the shadow Minister for his contribution. As I said, the UK emissions trading scheme is a key pillar of the UK’s net zero policy regime. I am slightly surprised by his decision not to support the SI —perhaps not from a political point of view, but because I am pretty sure that if he was still in the Department occupying the post I am in now, he would have supported the measures. As I said, they are just about ensuring that the scheme retains its credibility and moves forward and adapts to circumstances.
With the Northern Ireland Assembly established, it is absolutely common sense that Northern Ireland should be treated in the same way with regard to venting and flaring—
Kerry McCarthy
I am glad the shadow Minister agrees on that. He asked a specific question about the pricing. As the market conveners, we cannot comment on the price. I will leave it at that, other than to say that the market determines the price of the allowances, and opting for the top of the net zero-consistent range means that more allowances will be available while we can still deliver against our net zero trajectory.
The shadow Minister also brought up some broader issues about carbon leakage. Again, there will be plenty of opportunities to debate the issue, but we are absolutely committed to providing certainty to industry about the steps we will take to protect against carbon leakage. That is why in July 2023 the overall level of free allocations that will be provided from 2026 were set out. We have since consulted on how best to target those free allocations from the next allocation period, to ensure the smooth functioning of the market and the continued protection of at-risk sectors.
As the shadow Minister will know, the UK Government have announced that from 2027 a UK carbon border adjustment mechanism will be in place for certain at-risk sectors, and the authority has consulted on aligning free allocation charges with the start of that CBAM. I assure him that the UK ETS Authority will work the UK Government to ensure that a CBAM will work cohesively with the UK ETS, including with free allowances. No doubt that will be revisited—perhaps in this very room —over the coming months.
The draft order is a key part of our net zero policy regime. We believe that the maintenance of a strong UK ETS will play a key role in making Britain a clean energy superpower and in delivering our mission of having secure and clean electricity by 2030. By driving green investment as part of our industrial strategy, the UK ETS will also help to deliver a just transition, thereby growing the UK’s economy and securing good jobs for people throughout the country.
As I said, the changes proposed in the SI will bring in a net zero-consistent cap. I remind the shadow Minister that it was his Government who legislated for net zero, and at one point they were proud of having done that. The SI will also alter the industry cap and expand the scope of the ETS to the venting of CO2 in the upstream oil and gas sector. The change follows a comprehensive consultation on developing the UK ETS that was carried out in 2022. The proposals deliver on commitments made in the response to that consultation in July 2023, when the UK ETS Authority set out a comprehensive package of reforms to the scheme. The proposals have the long-standing support of the four Governments of the UK.
We, as part of the UK ETS Authority with the devolved Governments, are determined to manage and improve the scheme effectively. Our aim is to be predictable and responsible guardians of the scheme and its markets. We are committed to being attentive to views and to carrying forward changes as required to ensure that the scheme operates efficiently to achieve emissions reductions. The changes to the UK emissions trading scheme in the SI will support the scheme’s role as a cornerstone of the UK’s climate and net zero policy. I therefore commend the draft order to the Committee.
Question put.
Oral Answers to Questions
Kerry McCarthy Excerpts(1 month, 1 week ago)
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Harpreet Uppal (Huddersfield) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
Today, the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), is already at COP29 in Baku, where he will be leading climate negotiations. He sends his apologies. The Prime Minister is also at COP29 and will be speaking at the global leaders summit, announcing our ambitious 1.5°C-aligned nationally determined contribution and showing that the UK is truly back on the international stage. A written statement will also be made later today.
Harpreet Uppal
I welcome the leadership the Government are showing, in particular on NDCs, as my hon. Friend mentions. The news that this year is likely to be the hottest on record across the world is deeply concerning and reminds us that climate breakdown is a global challenge that we must all face. Does the Minister agree that we must have ambitious plans at home, so that we can go to COP and challenge other world leaders to do more to tackle climate change?
Kerry McCarthy
I completely agree with my hon. Friend. There is a direct link between taking action to protect the British people at home and leading on climate action abroad. If we want to protect our country from future energy shocks and the runaway cost of climate chaos, we must work with other countries to protect our planet. We now have the credibility to do that because of the action we have taken since entering government, as was apparent when I attended pre-COP meetings in Baku last month and as the Prime Minister will demonstrate in Baku today.
Carla Denyer (Bristol Central) (Green)
I warmly welcome the new Government target to cut carbon emissions, and I know the Secretary of State and the Minister thoroughly understand the importance of joined-up action on climate justice. Can she tell us whether every single Government policy across every Government Department will now be assessed to check whether it is compatible with 1.5°? What steps are the Government taking to ensure the global south is properly compensated for climate loss and damage?
Kerry McCarthy
On the second point first, at this COP we want to ensure that we fully operationalise the loss and damage fund, so we then start getting money into it and channelling money to developing countries. We also want to do that through the new collective quantified goal, which we hope will be ambitious and multi-layered.
On the question of looking at our policies across the piece, that is very much my job. We will be responding soon to the Committee on Climate Change’s report, which the hon. Lady will know was quite critical of the previous Government’s action. We will be setting out our plan to implement the NDC and looking at the next carbon budget. All those things require effort share across Departments to ensure we actually meet them. It is about not just setting ambitious targets, but making sure that, unlike the previous Government, we have a strategy to get us there.
Several hon. Members rose—
Mr Toby Perkins (Chesterfield) (Lab)
I am ready to go, and so is the Prime Minister—it is great to see him in Baku showing leadership. The recent Cali conference was a disappointment. Ultimately, nations were not able to reach agreement. Alongside the positive steps the UK Government are taking, what conversations are we having with international partners to recognise the necessity of an agreement that brings all western nations together in showing equal ambition?
Kerry McCarthy
I thank my hon. Friend for that question. I know he was at Cali. There was some progress on such issues as digital sequence information, but more needs to be done. We are very seized of the need to join up action on the nature and climate crisis. When I head out to COP29 tomorrow, Members will hopefully hear more from us on our efforts to protect forests and on the support we are giving to countries at risk of deforestation. We are also looking at nature-based solutions to climate change. The nature Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Coventry East (Mary Creagh)—will be out there as well, and we will have more to say, but I entirely agree with my hon. Friend the Member for Chesterfield (Mr Perkins) that we cannot deal with one crisis in isolation from the other.
Jess Brown-Fuller (Chichester) (LD)
For the UK to be an international leader on climate change we need to bring the business community with us. The Summer Berry Company in my constituency recently invested £8 million in ensuring it is carbon neutral, but it was then quoted a further £3 million to be able to feed its excess energy into the grid. What is the Minister doing to make additional grid connections affordable and accessible for green businesses?
Kerry McCarthy
The energy Minister—the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks)—is very much involved with that issue. We have also set up the energy superpower mission board, headed by Chris Stark. I had a conversation with him yesterday about what we can do to ensure grid capacity and grid connections in the right places. If the hon. Lady has a specific issue to raise and would like to write to me, I will make sure it is passed on to him.
Joy Morrissey (Beaconsfield) (Con)
When I asked the Secretary of State about the appointment of Rachel Kyte as his international climate envoy during our last questions session, he failed to say whether Quadrature Capital’s £4 million donation to the Labour party had been declared to the Department before her appointment, and I have still not received a reply to my letter of 17 October. Will the Minister tell me whether the Secretary of State declared those interests to the Department before Rachel Kyte’s appointment, and whether Ministers have ever met directors of Quadrature Capital or Quadrature Climate Foundation?
Kerry McCarthy
I am sure that the shadow Minister will receive a reply to her letter in due course, but I can tell her that Rachel Kyte is extremely well respected, and that her appointment as our special representative has been welcomed across the board.
Catherine Atkinson (Derby North) (Lab)
Jo White (Bassetlaw) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
We agree that fusion could be a globally transformative green energy solution. The UK Government’s fusion programme continues to lead the world in the development of fusion energy, and our ambition is to continue to do so.
Jo White
Two weeks ago, the Budget announcement that the first fusion power plant will be built in Bassetlaw was welcome news. Can the Minister provide greater detail on this commitment, alongside the funding support being made available for the next financial year?
Kerry McCarthy
My hon. Friend is a great champion for her constituency, and I was pleased to meet her to talk about this issue and to hear her Westminster Hall debate. I look forward to visiting her constituency later this month to see the fusion café and to visit West Burton, the site of the STEP project, after which I hope to be able to share more detail on how we will support fusion.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Dounreay, in my constituency, was the site of the UK’s first fission reactor. Today, we have a highly skilled workforce, a licensed site and a local population that warmly supports the industry. Will the Government seriously consider involving Dounreay as we bring fusion to its wonderful fruition?
Kerry McCarthy
I think fusion has huge potential, and so many companies stand to benefit. It is not just about the ultimate goal of fusion energy; it is also about all the technological advances we will discover. I have spoken to fusion companies which are, for example, finding uses for cancer treatment. I am very interested to hear what the hon. Gentleman has to say about the possibilities of fusion in his constituency. We want to see this proceed. If he drops me a line, I will be happy to explore the opportunities in his patch.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
We have spoken a lot about the Conservative party’s record in government, and I am very proud of our record on fusion. We launched the Fusion Futures programme to provide up to £55 million of funding to train more than 2,000 people, we became the first country in the world to regulate fusion as a distinct energy technology, and we launched the process to build the spherical tokamak for energy production—I cannot say that as quickly—at what will be the first fusion power plant at West Burton in Nottinghamshire. [Hon. Members: “Hear, hear.”] Members are very welcome. Will the Minister confirm that it is still the Government’s intention, as it was ours, to have fusion power on the grid by 2040?
Kerry McCarthy
As I mentioned, I am very much looking forward to visiting West Burton soon. The Budget announced significant support for fusion energy in 2025-26 and, yes, we remain as ambitious as the previous Government for the potential of fusion energy.
Andrew Bowie
Having confirmed that 2040 is still the ambition, which does the Minister think will come first: fusion on the grid or the final investment decision on Sizewell C?
Kerry McCarthy
The final investment decision on Sizewell C, as I understand it, is expected soon. We will hear more about support for that in the next spending review. Fusion energy has huge potential, not just in the long term but from the innovation we are already seeing in that sphere, which I very much welcome.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
I think the shadow Secretary of State needs to seek a debate if she wants to elaborate on these issues. Having attended COP last year as part of a cross-party delegation, I found it incredibly depressing to see the way the UK was received. It is really important that we are stepping up and showing global ambition. Reaching net zero in this country and getting to clean power by 2030 is a massive opportunity, not a cost.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Pippa Heylings (South Cambridgeshire) (LD)
The US President-elect, Donald Trump, has repeatedly called climate change “a hoax”. I share the concerns of young people in South Cambridgeshire that these views represent a threat to our efforts to tackle climate change. The global community is meeting right now at the international climate summit in Azerbaijan—COP29. Does the Minister believe and share with me the view that the UK must rebuild its leadership by getting back on track with our climate and nature targets?
Kerry McCarthy
I agree that it is now more important than ever that the UK shows global leadership, and that is exactly what the Prime Minister, the Foreign Secretary and the Energy Secretary are doing with their presence at COP today—I will be heading out there tomorrow. I am very keen to work with the hon. Lady cross-party on these issues. Working with young people is very important as well.
Steve Race (Exeter) (Lab)
Kerry McCarthy
As I have said, showing domestic leadership gives us the credibility to show international leadership too. We will be doing both.
Lee Anderson (Ashfield) (Reform)
Adam Thompson (Erewash) (Lab)
Kerry McCarthy
I got to see the JET project when I visited Culham. There is huge potential for a cluster there. Many more companies are being attracted to that sector. My hon. Friend is right that we need to maximise the skills that are there, but I am confident, having spoken to companies that have been attracted to Culham, and having spoken to international companies too, that we will continue to do so.
Helen Morgan (North Shropshire) (LD)
Many homes in my constituency are off grid, which means that their owners have to fill up the tank at the beginning of winter to keep warm. The pensioners who have lost the winter fuel payment are struggling with that up-front amount. Will the Minister review the level at which the winter fuel payment is removed, because the most vulnerable are struggling?
Joe Powell (Kensington and Bayswater) (Lab)
Kerry McCarthy
I understand that the Foreign, Commonwealth and Development Minister has raised the case with the Azerbaijani Foreign Minister and urged allowing Dr Ibadoghlu to travel overseas for specialist medical care if required. We will continue to use our diplomatic channels to raise our concerns about the protection of freedom and human rights in Azerbaijan, including for my hon. Friend’s constituent.
Gareth Davies (Grantham and Bourne) (Con)
Conservative Members will never stop holding the Government to account for their pre-election promise to cut energy bills by £300. Have civil service officials conducted any modelling whatsoever that can legitimise that figure?
Kerry McCarthy
We hope that, at COP29 in the coming weeks, we can settle on a figure for a new ambitious goal, which will not just bring in finance from donor countries, but mobilise private sector finance. We will use all the mechanisms we can to ensure that we get money to developing countries as quickly as possible. As my hon. Friend said, it is more urgent than ever to act.
Mr Speaker
Order. I have got to get all Members in, and Ministers have got to help me and work with me.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
My constituent Konnie Huq, with Arts Council and Lottery funding, has compiled a kids’ climate guide, with Jamie Oliver among the contributors. Will Ministers join forces with her to get it out there, preferably to every school in the country, because we have got to start young?
Kerry McCarthy
I would be more than happy to meet with my hon. Friend and her constituent, who sounds rather familiar, to discuss what more we can do to support climate education among children, including in our schools.
Patrick Spencer (Central Suffolk and North Ipswich) (Con)
I met with National Grid yesterday and communicated my concerns about the Norwich to Tilbury line but we remained constructive and talked about community benefit schemes. Unfortunately, it told me that the Government were dragging their feet on defining community benefit schemes. Can the Minister update the House on when they will bring forward guidance, and can he promise that a community benefit scheme is a real, positive economic benefit for my residents who are impacted by the pylons?
Renewable Energy: Cornwall
Kerry McCarthy Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
It is always a pleasure to see you in the Chair, Ms Vaz. I thank my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) for securing this debate and the other Members for their contributions. It is good to see a clean sweep of new MPs in Cornwall, although my hon. Friend the Member for St Ives (Andrew George) is a familiar face from days gone by. The passion of hon. Members for the region shines through, and all six MPs are brilliant advocates for Cornwall’s sheer potential.
I want to note the recent letter from the four Labour MPs in Cornwall to the Minister for Industry, the hon. Member for Croydon West (Sarah Jones), concerning the need for investment in the county. As the hon. Member for Truro and Falmouth mentioned, the Minister for Industry and the Secretary of State for Business and Trade have visited the region recently. I know that both are aware of the county’s incredible potential for economic and industrial growth. I understand that the four MPs will be meeting my colleague, the Minister for Industry, very soon to discuss the issues raised in the letter.
My hon. Friend the Member for Truro and Falmouth will be aware that one of the Prime Minister’s five missions for national renewal is making Britain a clean energy superpower, including delivering clean power by 2030 and accelerating to net zero. As has been mentioned, we have wasted no time in getting started. Within our first 100 days in government, we lifted the onshore wind ban in England, consented to more nationally significant solar projects than had been consented to in the past 14 years, and delivered the most successful renewables auction in British history. Now we are busy setting up Great British Energy, which will drive clean energy deployment, creating jobs, boosting energy independence and ensuring that UK taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. As we heard, Cornwall has a vital role to play in that clean energy mission, and indeed our mission to secure economic growth.
Cornwall may be primarily known as a tourist destination these days, but it has a proud industrial past. It was once known as the mining capital of the world, with tin mining and clay, and was where Richard Trevithick invented the high-pressured steam engine. As much as tourism is welcomed in Cornwall, we know that it puts pressure on the local infrastructure and economy, particularly the housing supply, which then has a knock-on effect on public services in the area.
From meeting local businesses in Cornwall when I went down with the now Chief Secretary to the Treasury last year, I know that there is excitement about the opportunities offered by Cornwall’s huge industrial potential from wind, geothermal, lithium and more. Great work is already being done through the continuing development of a local area energy plan in Cornwall and Isles of Scilly, and the Government are doing what they can to support the region too. Last September, three geothermal projects, all located in Cornwall, were successful in our contracts for difference auction for the first time, with contracts totalling 12 MW of generation. As part of my visit to Cornwall last year, I also went to see some of the exciting work that the Eden Project is doing on geothermal.
Critical minerals have been mentioned as an important area for future industrial development. Cornwall has some of the largest critical mineral deposits, with research showing that the county alone could meet more than half the UK’s 2030 demand for lithium, which is an essential part of the electric vehicle battery supply chain. As we transition to a renewables-based economy, the demand for critical minerals will only grow, and I note the concerns that have been raised about current sourcing and the need to diversify supply. Indeed, Cornwall is home to at least three of the 18 critical minerals, and I hope that local MPs, in the meeting with my hon. Friend the Minister for Industry, can further discuss how we can take advantage of all that Cornwall has to offer on that front.
The county is perfectly placed to take advantage because of its strong mining heritage—I was interested to hear what my hon. Friend the Member for Truro and Falmouth said about the potential for reopening tin mines—as well as a growing supply chain, skilled workforce and supportive local government. It has the support of national Government too. In 2023, the UK Infrastructure Bank’s first equity deal was an equity investment of approximately £24 million to support Cornish Lithium in the development of the UK’s critical minerals supply chain.
One of the most exciting areas with huge potential is the floating offshore wind that my hon. Friend the Member for Truro and Falmouth talked about, which would enable turbines to be set up where the seabed is too deep for traditional fixed-bottom turbines. A new report from the floating offshore wind taskforce says that the UK’s floating wind industry will be able to support 97,000 jobs by 2050, contributing £47 billion to our economy, and we want Cornwall to have a proper stake in that via the Celtic sea.
I reassure Members present that we want to do all we can to support floating wind infrastructure and supply chains to develop the Celtic sea, to ensure that we get the floating wind pipeline built and bring jobs and growth to the area. As part of leasing round 5, the Crown Estate has launched a £10 million supply chain accelerator fund, focused on capturing some of the economic opportunities identified by the Celtic sea blueprint. A further £40 million has been earmarked, which could be deployed on further opportunities nationally.
More broadly speaking, Members present will know that last week, the Chancellor announced that the UK Infrastructure Bank is becoming the national wealth fund. Capitalised with £27.8 billion, it will have additional financial capacity and an enhanced risk budget, as well as an expanded remit beyond infrastructure in support of the Government’s industrial strategy. At least £5.8 billion of the national wealth fund’s capital will focus on priority sectors, including ports infrastructure, which I am sure my hon. Friend the Member for Truro and Falmouth will be pleased to hear.
Also last week, we published in a Green Paper our vision for a modern industrial strategy—Invest 2035. That is a credible 10-year plan to deliver the certainty and stability that businesses need to invest in high-growth sectors. It will help us create a pro-business environment and support high-potential clusters across the country. It will channel support to eight growth-driving sectors, including clean energy industries, and it will support those sectors to create high-quality, well paid jobs across the country, backed by employment rights fit for a modern economy.
If the plan is to be a success, it needs to be designed and implemented in lockstep with local and regional leaders. That is particularly important in places such as Cornwall, where we are looking at reindustrialisation to an extent, rather than building on current industrial clusters. We will explore how to build on existing place-based initiatives, how to create the best pro-business environment possible in city regions and high-potential clusters, and how to identify, select and intervene in industrial sites to make them magnets for globally mobile investment.
As I said, unlocking Cornwall’s potential is slightly different from going into other areas. That is absolutely key. Planning was mentioned; we must undo some of the blockages in the planning system. In relation to the grid, I very much remember, from when I visited, the knock-on impact of the fact that the transmission line goes only as far as Indian Queens. Until we create the grid infrastructure to cover the right areas and provide sufficient capacity, we cannot deliver on Cornwall’s potential. I think that one of the things holding the Eden Project back with its geothermal work was that it could not get that broader grid connection. The former chief executive of the Climate Change Committee, Chris Stark, has been put in charge of the mission board, and one of his key tasks is to bring in a more strategic approach to grid planning, speed it up and stop those blockages that mean that projects just do not get off the ground because they are stuck in that system.
Skills are also a very important issue, on which I hope we can have continued engagement. I think I am due to meet my hon. Friend the Member for Truro and Falmouth next week to follow up on some of these issues. I want to reassure her and colleagues that our doors are always open, in terms of discussing these things, and I will return to my original point that I share the excitement that Cornwall has huge potential. I think we want a more balanced economy—
Perran Moon
Looking at Cornwall, we have mentioned floating offshore wind, onshore wind, geothermal, tidal, solar, lithium, tin and manganese. Can the Minister name anywhere else in the UK where there is such a distillation of critical minerals and renewable energy opportunities? I am very excited by what she said about the cluster concept. Would not Cornwall be an ideal place to be an official cluster for renewables and critical minerals?
Kerry McCarthy
I am not sure that we quite have an official badge of cluster; we just have clusters, but yes, I think Cornwall is different in terms of the geography and the current use of the land and we have to approach it in a sensitive way, and one in which we might not have to approach areas that currently are perhaps transitioning from traditional fossil fuel industries to the clean industries of the future. This area is bringing something that, to an extent, is genuinely buried in the land—the industrial heritage there. It has so much potential. The question is how we can work across Departments, starting with my own, DESNZ, but also bringing in other Departments that can unlock that potential. I am sure that the brilliant advocates that there are in the region will all be pushing, and I really hope that we can see swift progress, because clean power by 2030 is such an important part of the Government’s mission and I do not think we can do it without Cornwall playing its part.
Question put and agreed to.
COP29: UK Priorities
Kerry McCarthy Excerpts(3 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
It is a pleasure to see you in the chair, Dr Huq, and even more of a pleasure to be standing here in the Minister’s place rather than on the Opposition Benches. I thank my hon. Friend the Member for Ealing Southall (Deirdre Costigan) for securing this important debate. She has certainly hit the ground running, as this is her second Westminster Hall debate—I think many new MPs are yet to discover where Westminster Hall actually is.
My hon. Friend was a powerful voice on climate issues as deputy leader of Ealing council and as its cabinet member for climate action. I acknowledge from the outset—it has been brought up by a few Members—that local government has a huge role to play in helping us to deliver net zero. As a Bristol MP I would be expected to say that; I have previously boasted about the many achievements of Bristol council on that front in this House. I will not do that today, but it is really important and we are looking at how we can make the local net zero forum work more effectively.
My hon. Friends the Members for Ealing Southall and for Manchester Rusholme (Afzal Khan) mentioned the impact on diaspora communities living here, including on constituents of Pakistani and Indian heritages. As a Bristol MP, we have a significant Somalian community and we know that the Horn of Africa has been absolutely ravaged by droughts and floods. We are dealing with the consequences of climate change here in the UK, but some people are also dealing with the consequences where their families and friends are based. I look forward to working with my hon. Friend the Member for Ealing Southall, and I am sure that she will continue to drive this agenda forward in Parliament. I also thank other Members for contributing to the debate and I will reply to some of their specific points later.
We are almost halfway through what is a decisive decade to halt climate change. As global surface temperatures continue to rise following 12 months of record-breaking warmth; as people around the world face the very real effects of this crisis with rising sea levels, nature loss and food insecurity; and as we see climate vulnerable countries devastated by extreme weather events, it is clear the decisions that we make now will define our planet’s tomorrow. If we want to leave future generations a world that is liveable and safe, we must stick to the Paris agreement and keep 1.5° of global warming within reach.
As we have heard, we are currently way off track. Last year’s global stocktake confirmed that emissions need to peak by next year and fall by 43% between 2019 and 2030 to reach the Paris goal, yet we are currently on course for global emissions to fall by just 2%. We need to increase climate finance at least fivefold, phase out coal seven times faster, and reduce forest loss at least twice as fast.
Here in the UK, the Climate Change Committee’s July report provided a wake-up call. It found that the UK is not even on course to hit our own 2030 target of 68% emissions reductions, and highlighted a slowing of pace and reversed or delayed key policies. I will not reply here in detail, but the Government’s response to that report is coming. We will address some of the specific criticisms about domestic policy, including on the new homes standard and energy efficiency. I hope that the hon. Member for North Herefordshire (Ellie Chowns) has heard enough about retrofitting and the warm homes agency in other forums. We will very much be announcing our policies across the piece.
Ellie Chowns
The whole point is that I have not heard anything about it. I have heard two speeches by the Secretary of State for Housing, Communities and Local Government and she has not mentioned it at all, which is why I asked that specific question. I look forward to a written response, but I urge the Government to take the point on board, because even the warm words are not there yet, let alone the action.
Kerry McCarthy
The hon. Member will know that a consultation on the new homes standard closed in March and we are looking to respond to that. Obviously, we want to make sure that our housing stock is as sustainable as possible, as well as setting up the warm homes agency to retrofit the 5 million homes that we have made a priority. I am pretty sure I have heard her mention retrofitting and get an answer from our Department, but I digress.
We very much need to up the pace. We are determined as a Labour Government to get us back on track by becoming climate leaders at home and abroad. That means decarbonising our power sector by 2030. We have already taken ambitious steps by lifting the onshore wind ban, giving the go-ahead to major solar proposals despite opposition in some quarters and setting up Great British Energy. We will also ensure that every large company has credible 1.5°-aligned plans for transition. As I said, we will be revealing more details as we move on, particularly in terms of setting out the next carbon budget, but also in our response to the CCC report.
Demonstrating strong leadership at home will give us the credibility that has been sadly lacking in recent years to demonstrate strong leadership abroad. Several Members, including my hon. Friend the Member for Stratford and Bow (Uma Kumaran) and the hon. Member for Bath (Wera Hobhouse), mentioned that we were in Dubai last year. It was quite a depressing experience, particularly when we met climate activists from climate vulnerable countries who pressed us on what the UK was doing—the country that led with the groundbreaking Climate Change Act 2008 and then raised the ambition to net zero—and whether it had completely abdicated its sense of international leadership. That was a constant refrain.
That is why in my first few weeks in this role, I spoke with key climate organisations about how we could restore the UK’s global leadership. I also held a roundtable with non-governmental organisations to discuss their priorities on climate action, as I will do again before Baku. In fact, I will be holding a series of roundtables with various stakeholder groups.
The Energy Secretary hosted the COP29 and COP30 presidencies, as well as Lord Sharma, who presided with distinction over COP26 in Glasgow, at a recent event in London to discuss how we can ramp up global ambitions. He then travelled to Brazil to strengthen ties ahead of next year’s Amazon COP, reflecting that this is a sequence. It is not just about what happens in Baku; we are already looking ahead to COP30 as well.
As we prepare to head to Azerbaijan this autumn, it is worth reflecting on the progress that has been made by the UK delegation in recent years. I make it clear that, after a couple of months in the Department, I have no criticism of the civil servants. They are incredibly dedicated and hard-working, and it is down to them that a lot of what I am about to mention has got over the line, regardless of a lack of political direction.
In Glasgow, we saw the proportion of global GDP committed to net zero go from 30% to more than 90%. In Sharm El Sheikh, we agreed a landmark fund to support those most vulnerable to the effects of climate change. Last year in Dubai, we saw real progress on the pledges made in previous years. We welcomed 13 new members to the Powering Past Coal Alliance, including the USA and the UAE, meaning that 180 Governments, businesses and organisations have now committed to phasing out unabated coal power.
We were one of 123 countries to support the global pledge to triple renewable energy and double energy efficiency by 2030. We expanded the breakthrough agenda, which is our clean technology accelerator. We announced £1.6 billion of new international climate finance projects. We agreed half a billion pounds to protect forests and the rural communities depending on them. We committed £50 million for loss and damage to help developing countries to deal with the impact of climate change, and we signed an international green public procurement pledge to boost the use of green steel, cement and concrete.
We are absolutely determined to build on those successes in Baku, so the Energy Secretary will be breaking with recent tradition and leading the delegation himself, demonstrating the importance we attach to international negotiations at this critical time. I will be accompanying him, and we will hear more in due course about whether other Government Members will be coming with us.
Going into this COP, we have three priorities. The first is increasing finance. COP29 presents the first opportunity in 15 years to agree a new post-2025 finance goal. It is critical that the new collective quantified goal addresses the needs and priorities of developing countries, and we stand ready to work with Azerbaijan and its COP29 presidency to make that happen. As I said, meetings have already been taking place with them.
The second priority is raising ambitions to speed up the global net zero transition. In particular, we want to use COP29 to build momentum for the new nationally determined contributions, which are due by February 2025. We have already started planning our next NDC and we will do everything we can to encourage partners to be ambitious and wide-ranging with theirs. We will also develop a clean power alliance to bring together a coalition of countries at the cutting edge of ambition. Every country must show domestic action to contribute to the critical targets agreed last year on energy, methane, forests and more.
Thirdly, we must deliver on existing commitments and continue to support people on the frontline of the climate crisis, championing their voices through initiatives such as the climate and development ministerial, which places developing countries at the heart of work to improve access to finance for climate adaptation. I know that the hon. Member for Bath feels strongly about that. We look forward to co-chairing the fourth climate and development ministerial in Baku later this year. We also want to encourage even greater action on deforestation, which accounts for about 10% of global emissions, and we are committed to co-ordinated action outside the main negotiations, including making vital clean technologies accessible and affordable through the breakthrough agenda.
I will quickly turn to some of the key points made in this debate. I welcome the fact that the hon. Member for Bristol Central (Carla Denyer) and my hon. Friend the Member for Stratford and Bow support what we are doing in the consultation on no new oil and gas licences. As they said, it is important that this is a just transition and that we take local communities with us. My hon. Friend the Member for Whitehaven and Workington (Josh MacAlister) talked about the importance of nuclear to his constituency. He has already proved to be a real champion for that; nuclear is very much part of the mix.
I say to the hon. Member for Strangford (Jim Shannon) that one of the first things I said when I got into the Department was that I wanted to make sure that the devolved Administrations were part of the conversation as we headed into COP, and officials have been talking to the Department of Agriculture, Environment and Rural Affairs; we know that we want to have those conversations. Members asked about the appointment of an envoy, which is under consideration—again, watch this space. My hon. Friend the Member for Stratford and Bow talked about the role of cities, which I have already said is important. She will know that I recently met the head of C40 Cities, Mark Watts, and we talked about whether the UK can sign up to CHAMP—the Coalition for High Ambition Multilevel Partnerships—so that is on my radar.
I have covered the main points and I want to leave a minute for my hon. Friend the Member for Ealing Southall to reply. Although that was a quick canter through things, I hope that it has got across that we want to be in the driving seat when we go to COP. We can do that only if we have established our credibility at home, and I hope that we have done so.