Electricity Network Connection Action Plan

Debate between Lord Callanan and Lord Grantchester

Wednesday 22nd November 2023 Lords Chamber

[Lord Callanan (Con)]

My noble friend asks good questions. The figures are that peak demand for electricity is expected to increase from 47 gigawatts in 2022 to between 90 and 120 gigawatts in 2035, as transport, heating and industry electrify. We think that this will require between 260 and 310 gigawatts of generation capacity connected to the network by 2035. To do all these things, we of course need to reform the planning system, which we are doing through national policy statements and through the action plan announced today.

[Lord Grantchester (Lab)]

My Lords, there are considerable problems with capacity issues within local circuits in the distribution network from the transmission lines, especially in rural areas. There are reported delays even to the 132-kilovolt networks, as renewable schemes are being held in the queue to be connected until 2037. How can that help to decarbonise the power sector by 2035? I declare an interest as being involved in such a scheme. Will the plan published today help to resolve this queue and reappraise the first-come-first-served basis for supply connections?

[Lord Callanan (Con)]

The noble Lord points to the main problem that we have, which is that there is a large queue of projects running into many hundreds of gigawatts. The whole purpose of the action plan is to look at which of those projects are likely to go ahead and to prioritise those that are likely to proceed—a lot are in the queue and probably not likely to proceed—and have the investment and backing, and will decarbonise and deliver the upgrades as quickly as possible. I am not familiar with the particular project that the noble Lord referred to, but if he wants to send me the details, I will certainly look at it for him.

2030 Emissions Reduction Target: Heating

Debate between Lord Callanan and Lord Grantchester

Tuesday 5th September 2023 Lords Chamber

[Lord Callanan (Con)]

That is the case for many renewables. Tidal power is an emerging technology and it is eligible for contracts for difference schemes. We made a number of allocations of tidal power support in the last round. I agree with the noble Lord, but we must look at the costs of that against the costs of other renewable technologies and get the best value for the bill payer and the taxpayer.

[Lord Grantchester (Lab)]

My Lords, it is an unfortunate feature of Conservative Governments that they constantly churn grant schemes—

[The Lord Bishop of St Edmundsbury and Ipswich]

I will be very brief. A crucial component of the decarbonisation of heat in homes agenda is to have enough skilled technicians and engineers to install the various heating solutions. Can the Minister update the House on the progress of creating the necessary training opportunities?

[Lord Callanan (Con)]

I can indeed update the right reverend Prelate. There are a number of schemes and training competitions, and we have recently allocated tens of millions of pounds, training thousands of new installers. I am pleased to say that many of the boiler and heat pump manufacturing companies are running their own training courses, and there are now, I think, about 2,000 registered firms with the Microgeneration Certification Scheme.

[Lord Grantchester (Lab)]

I apologise; I had not noticed the right reverend Prelate rise to ask his question.

It is an unfortunate feature of Conservative Governments that they constantly churn grant schemes and support. The Government is way off on their targets for the boiler upgrade scheme and have now, in consequence, in their usual pattern, extended the support for heat pumps until 2028. Do the Government recognise that this constant lack of commitment undermines the confidence of businesses and householders to plan ahead?

[Lord Callanan (Con)]

The noble Lord is asking a self-contradictory question. He starts off by saying that the Government have no long-term schemes and then admits that we have extended the boiler upgrade scheme through until 2028—precisely to address the point that he is talking about. We need more long-term schemes and we need a greater commitment over the longer term. That is precisely what the Treasury has allowed us to do, by already announcing £6 billion of extra funding from 2025 to 2028 to provide exactly that certainty. We need to build up the skills base and the supply chains in the longer term.

Energy Storage Capacity

Debate between Lord Callanan and Lord Grantchester

Tuesday 5th April 2022 Lords Chamber

[Lord Grantchester (Lab)]

In a climate emergency it makes little sense to increase fossil fuel storage capacity. What steps are the Government taking to speed up battery storage as a vital first step to store renewable power?

[Lord Callanan (Con)]

We have some fossil fuel storage capacity, particularly for gas, and we have 90 days’ worth of oil storage capacity because of our IEA commitments. All these technologies are important, but we do not need to increase our gas storage capacity; we have tremendous security of supply from our suppliers in the North Sea, from Norway, from interconnectors with the continent, and from LNG storage. We are well supplied there, but we need to increase our battery storage as well as our pump storage, and we will.

Energy Prices

Debate between Lord Callanan and Lord Grantchester

Wednesday 12th January 2022 Lords Chamber

[Lord Callanan (Con)]

Of course, we want to keep all these things under review but, as my noble friend is well aware, net zero is a legally binding commitment, legislated for by Parliament—and, of course, it is the duty of government to carry out the wishes of Parliament. If a future Parliament or Government wish to reconsider that, I am sure that the Government at the time would want to take full cognisance of that.

[Lord Grantchester (Lab)]

My Lords, we all wish to protect vulnerable households, and there are many support schemes targeting approximately 3 million households. The expected increase in the price cap in April is around £600 per household to a total of £1,865 a year. While the Government continue to dither, Labour has announced costed, detailed plans to reduce the size of the exposure and extend help to more households to limit increases to just £5 a year for the most vulnerable. What target do the Government have in mind to reduce the size of the exposure in the forthcoming price cap rise, to be announced on 7 February?

[Lord Callanan (Con)]

Before I answer the noble Lord’s question, I understand that this is his last outing as a member of the Opposition Front Bench. From my point of view, it has been a pleasure sitting opposite him and dealing with his questions and points. I am sure that he will have a lot to contribute to the House from the Back Benches in future, and I certainly wish him well.

Of course, the price cap is a matter for the independent regulator—Ofgem—and we will find out in a couple of weeks’ time what it will be. The Government have already announced £500 million for local authorities to support vulnerable householders across the country with essentials, including utility bills. As I said in response to earlier questions, we are looking at what else we can do.

Net-zero Test for New Policies

Debate between Lord Callanan and Lord Grantchester

Tuesday 11th January 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness and I have also debated this topic at length before. The point she needs to recognise is that, during the transition, there is still a requirement for oil and gas products in the United Kingdom. Liberal Democrats might not like that but it is a fact—unless you are going to stop people driving their cars and turn their gas boilers off tomorrow, and I do not see that being produced on a focus leaflet any time soon. We need to transition to net zero. During a transition period, therefore, the choice is: do we use oil and gas products we generate, creating jobs and paying taxes from UK assets, or do we get them from Russia or Saudi Arabia? I know what I would prefer.

[Lord Grantchester (Lab)]

My Lords, of the gaps identified by this letter still needing to be filled in the urgency of the climate challenge in the Glasgow climate pact, perhaps the one identified on adaptation and resilience has received least attention. Little progress is being made. What increases in adaptation policy ambition have the Government determined are needed from the reports of the adaptation sub-committee of the Climate Change Committee?

[Lord Callanan (Con)]

I have not seen the particular report that the noble Lord refers to but I shall certainly have a look at it, take it back to the department and write to him on that subject.

Drax Wood Pellets

Debate between Lord Callanan and Lord Grantchester

Monday 13th December 2021 Lords Chamber

[Lord Callanan (Con)]

Indeed it would, and we already source some small quantities from the UK, but the noble Baroness needs to look at the size of the forests in southern USA, which are, I think I am right in saying, about the size of the landmass of western Europe. Great and sustainable though North Yorkshire wood is, I suspect we would struggle to meet the quantity required.

[Lord Grantchester (Lab)]

Drax claims that burning wood pellets is carbon-neutral because trees absorb as much carbon dioxide when they grow as they emit when they are burned. Is the Minister able to justify that claim from a thorough analysis that includes all supply-chain emissions and with effective CCUS? Would that also have to include hydrogen production?

Net-zero Emissions

Debate between Lord Callanan and Lord Grantchester

Tuesday 7th December 2021 Lords Chamber

[Lord Grantchester (Lab)]

Decarbonising heat is still a massive challenge, which, as has been mentioned, can be made less so through energy efficiency measures. Given that there are 19 million homes below EPC band C standard, and given the collapse of the green homes grants scheme, can the Minister clarify how many of these homes will be helped by the energy efficiency announcements in this strategy, and by what date?

[Lord Callanan (Con)]

The noble Lord is correct that energy efficiency is extremely important. It is very much a “no regrets” approach; we should always take a fabric-first approach to upgrading properties. As I mentioned, we have a substantial series of financial commitments: the social housing decarbonisation fund, the home upgrade grant, the boiler upgrade scheme, et cetera, to contribute towards the cost of these. The other things we need to look at, of course, are the green finance offers, which will enable people to upgrade their homes in a cost-effective manner.

Net-zero Emissions Target: Fossil Fuel Extraction Projects

Debate between Lord Callanan and Lord Grantchester

Wednesday 3rd November 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes an important point. We are indeed following the advice of the Climate Change Committee, which has accepted the need for oil and gas as we proceed to net zero. I remind the noble Baroness that we have the fastest decarbonisation rate of any G7 country. So we are proceeding on the path to decarbonisation, but is unrealistic to expect that we can just turn off the oil and gas supplies tomorrow.

[Lord Grantchester (Lab)]

The Energy Charter Treaty is allowing major fossil fuel investors to challenge the right of Governments to take the action required to reach net zero. During COP 26 this week, does the Minister consider that the UK should be leading the urgency to decarbonise the Energy Charter Treaty and remove the investor protections it provides in relation to fossil fuels?

[Lord Callanan (Con)]

The UK is indeed engaged in the process to modernise the Energy Charter Treaty to ensure that it is aligned with our climate objective and advances UK and global energy transition. So, through our COP 26 presidency we are working closely with global leaders to meet the goals of the Paris Agreement, including supporting the accelerated phase-out of coal and the wider decarbonisation of the energy sector.

Shortages: Protection for the Vulnerable

Debate between Lord Callanan and Lord Grantchester

Wednesday 20th October 2021 Lords Chamber

[Lord Callanan (Con)]

I know that we have debated these matters a lot in the House recently, and I know that the noble Baroness will be aware that the uplift to universal credit was only ever meant to be temporary. I outlined earlier some of the many schemes that we have on offer to pensioners and those living in fuel poverty to help them get through this crisis.

[Lord Grantchester (Lab)]

In the energy market, when consumers were encouraged to switch suppliers to find the best deal, it was to encourage competition and innovation among utility companies. Are the Government still confident that the supplier of last resort mechanism is the correct outcome for suppliers and consumers in the process in a competitive energy market?

Net Zero Strategy and Heat and Buildings Strategy

Debate between Lord Callanan and Lord Grantchester

Wednesday 20th October 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness has obviously not been paying attention to what I have said, but let me repeat the figures yet again. She might want to go and look at some of the fantastically successful delivery we were doing for low-income families under the local authority delivery scheme. We spent hundreds of millions of pounds on that; we have already rolled out the first phase of the social housing decarbonisation fund, and we are investing £950 million and £800 million respectively over the next two years. I referred earlier to the home upgrade grants. All these are paying for home insulation measures for the most vulnerable in society and for people on low incomes. I am sorry if the Greens are not aware of that or do not support it, but we are investing these very large sums of money to upgrade the fabric of people’s homes and install low-carbon heating systems in them. I have been out and viewed many of these schemes.

[Lord Grantchester (Lab)]

If I may also take advantage of being able to jump up again on the Minister, I would mention one aspect of the spread of areas to be covered with new developments: nuclear. There was no mention of nuclear in the Statement. Are any updates to the small modular reactors policy being brought forward by the Government?

[Lord Callanan (Con)]

I am happy to tell the noble Lord that there was mention of nuclear in the Statement, and we announced £120 million for a nuclear innovations fund. I can also tell him that we will have more to say on our nuclear ambitions shortly.

Energy Prices: Electricity Bills

Debate between Lord Callanan and Lord Grantchester

Wednesday 13th October 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes an extremely good point. We remain very concerned about the impact of Nord Stream 2 on European energy security and particularly on the interests of Ukraine. We will continue to raise our significant concerns about the project, defend the interests of Ukraine, support future arrangements and give a significant transit role to them.

[Lord Grantchester (Lab)]

My Lords, Labour will make Brexit work. Can the Minister confirm that he believes that the measures of support are sufficient this winter to help those in fuel-poor households and those with poorly insulated homes?

[Lord Callanan (Con)]

We always keep these things under review, but I outlined the many steps that we are taking and if necessary, we will look further at what we can do to help.

Emissions Trading Scheme: Transport

Debate between Lord Callanan and Lord Grantchester

Monday 11th October 2021 Lords Chamber

[Lord Callanan (Con)]

I am sure the Chancellor will want to update Parliament in due course on any proposed levies.

[Lord Grantchester (Lab)]

Clearly the Government have not thought through the present crisis. So often it is the poorest throughout the world who bear the brunt of climate change. How will the Government apportion costs for the UK ETS to cover all forms of transport?

[Lord Callanan (Con)]

The effect on poor people, including in the UK, will be one of the factors that we will need to consider when expanding the ETS. These are important fiscal measures. We will need to look at them properly and consider all the implications, and we will set out our thinking in due course.

Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021

Debate between Lord Callanan and Lord Grantchester

Tuesday 14th September 2021 Grand Committee

[Lord Callanan (Con)]

My Lords, I thank the noble Baroness, Lady Ritchie, and the noble Lord, Lord Grantchester, for their contributions to this debate.

As I have said before, the Government are committed to delivering on their carbon budgets and net-zero target. The lighting products regulations will make a modest contribution to achieving those targets by setting higher product standards. I will reiterate the figures for the benefit of the noble Lord, Lord Grantchester: 1.8 megatonnes of carbon savings will be made in the UK by 2030, which will increase to 2.6 megatonnes of carbon dioxide by 2050. The amending regulations will help to achieve this by safeguarding the carbon savings that will be secured from our retained EU law.

On the questions posed to me by the noble Baroness, Lady Ritchie, on product safety, which of course is not part of these regulations, the Office for Product Safety and Standards enforces ecodesign and energy labelling requirements placed on manufacturers and importers across the UK. Trading Standards and the Department for the Economy enforce energy labelling requirements placed on retailers in Great Britain and Northern Ireland respectively. The Advertising Standards Authority is responsible for ensuring that marketers’ advertising of energy labelling across various forms of media is in accordance with UK advertising codes. All market surveillance authorities work hard to uphold high product standards on the UK market and to ensure that businesses are supported to understand their obligations.

I can also tell the noble Baroness that there are currently no plans to report on the specific carbon-saving reductions from these regulations, but of course the Government will update Parliament on their carbon-saving targets on a more aggregate level. She also asked about differences between old and new requirements. The main difference introduced by these new energy-labelling requirements is the reinterpretation or reintroduction of the simple A to G scale. Many products under the previous regulations achieved A+ or A++ ratings, so the new scale has been reorientated to make them more understandable for consumers and enable consumers to better discern the most energy-efficient products. This would also encourage innovation by manufacturers to achieve the highest rating. We know that industry is already innovating to meet the highest levels of energy efficiency from lighting products, and we are working with it to understand how these technologies can go further to save even more energy, reduce carbon and of course, at the same time, reduce consumer bills.

On the noble Baroness’s questions about support to businesses, we expect the new requirements to have very limited impact on small businesses. Nevertheless, we have ensured that we work closely with suppliers of the affected products to help them understand the new requirements, and we have liaised closely with trade associations, which play a vital role in providing guidance to small and medium-sized businesses. Despite the new regulations creating some small new costs to manufacturers in the short term, they will in the longer term save businesses and consumers money on their energy bills. We estimate a net saving of something like £18 million a year for businesses up to 2050, due to their reduced energy bills. It is also important to emphasise that no products are being taken off the market; if they are currently on the market, you can sell out supplies of existing products before you need to move on to the newer ones, so nothing will be scrapped and nothing wasted.

With regard to working together with the noble Baroness’s home Province of Northern Ireland in relation to implementation of energy labelling, we work closely with officials in the Northern Ireland Executive to ensure that they are aware of the new requirements, including in relation to enforcement of these regulations on retailers, which, as I said, is the responsibility of the Department for the Economy in Northern Ireland. The OPSS enforces requirements on suppliers across the UK and has an excellent relationship with stakeholders in Northern Ireland.

I move on to the questions from the noble Lord, Lord Grantchester, who asked about awareness of the new regulations. The noble Lord can be assured that we have engaged extensively with the lighting industry to communicate the changes to the regulations, and we have provided guidance and support to manufacturers that have taken the trouble to contact us directly. The OPSS has also communicated widely to remind businesses of the new regulations coming into force.

On light pollution, ecodesign and energy labelling have played an important role in contributing to reducing UK emissions, and we believe that additional savings through better policy could make an important contribution to the Government’s carbon budget targets and to net zero. We are always exploring whether further energy savings could be made by using light products in smarter ways, which would help to contribute to an aim that we all share—that of reducing excess light pollution. The noble Lord can be assured that we will work closely with our colleagues in the Department for Environment, Food and Rural Affairs to see what more can be done with using smart lighting products and so on to reduce light pollution.

To close, I underline once more that the main purpose of these regulations is to raise the minimum energy efficiency of a range of lighting products sold in Great Britain and to reform energy labels for lighting products by rescaling the energy classes and introducing an energy scale. Both SIs will help to avoid technical barriers to trade, while also bringing significant benefits to consumers in the form of reduced energy bills and to the environment in terms of lower emissions. With that, I commend these regulations to the House.

[Lord Grantchester (Lab)]

May I just delay the Committee for one short moment and thank the Minister for clarifying those figures on the savings from the lighting regulations? However, could he perhaps write to me with wider details of what the power generated is in a more total setting of the lighting industry, and what percentage these savings should represent against that total?

[Lord Callanan (Con)]

Of course, I would be very happy to write to the noble Lord with that information.

Climate Change

Debate between Lord Callanan and Lord Grantchester

Tuesday 7th September 2021 Lords Chamber

[Lord Callanan (Con)]

Yes, our assessment is that it is still possible by the end of the century, but only with immediate and significant reductions in global emissions over the next decade and net zero by around 2050. It would be a challenge, but given concerted action across the world, we could still do it.

[Lord Grantchester (Lab)]

The IPCC report underlines the statistical proof of man’s footprint across the globe and that climate breakdown is already well under way and accelerating, with ocean acidification and glacier meltdown baked in for centuries to come. Does the Minister agree that the biggest threat that the world now faces is not climate denial but climate dither and delay? Will the Government now revise their NDC pledge to cut carbon emissions, on which my noble friend Lady Young sought clarification, and bring forward a more ambitious programme for action before COP 26?

[Lord Callanan (Con)]

As I said in response to a previous question, I admire the ambition of the noble Lord and his noble friend, but we have already achieved more than the vast majority of countries in the world. We have one of the most ambitious policies and one of the most ambitious reduction targets. We have made some of the fastest progress among all the G7 countries. Of course, it is right for the Opposition to keep pushing us to go further and faster, but we have done a lot.

Net Zero Test

Debate between Lord Callanan and Lord Grantchester

Thursday 22nd July 2021 Lords Chamber

[Lord Callanan (Con)]

Planning of course is extremely important, particularly in terms of delivering net-zero buildings. The noble Lord will be aware of the proposals we have to modify building regulations to reduce the impact of new buildings.

[Lord Grantchester (Lab) [V]]

This is the decisive decade for action and achievements, yet behind the Government’s scatter-gun rhetoric there is only dither and delay to key strategic coherency: the net-zero strategy, the hydrogen strategy, the Treasury’s finance road map, and others. Can the Minister confirm reports that another key strategy document, the heat and buildings strategy, is further delayed? According to Sky,

“Whitehall negotiations are stuck over how best to incentivise the public to change to low-carbon alternatives”.

How will the different strategies combine to support the UK’s climate change goals on both net zero and adaptation, along with wider environment-related goals?

[Lord Callanan (Con)]

The heat and buildings strategy will be published in due course. I do not agree with the noble Lord that we are not doing anything. I refer him to action we have taken recently: the energy White Paper, the revised emissions trading system, all of the announcements and investment to do with offshore wind, the pledge to phase out new petrol and diesel vehicles, the transport decarbonisation plan, and so on. Of course, there is always more to do, but I do not accept the noble Lord’s premise.

Hydrogen Economy

Debate between Lord Callanan and Lord Grantchester

Monday 19th July 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend asks her question at an excellent time, because I visited a demonstration hydrogen home last Thursday and, despite some scepticism from the Opposition Benches, I was able to cook an egg using a hydrogen hob, and I confirm that the person who ate it has so far survived satisfactorily.

[Lord Grantchester (Lab) [V]]

Can the Minister confirm whether the promised hydrogen strategy will include support for the steel sector to enable a long-term shared vision to develop between industry and government on the pathway to net zero?

[Lord Callanan (Con)]

The noble Lord makes a good point, in that low-carbon steel production will be one of the areas that we will need to look at. Hydrogen is one of the fuels that could offer us an option in that area, alongside others. All of those matters will be addressed in the hydrogen strategy.

Steel Sector

Debate between Lord Callanan and Lord Grantchester

Monday 12th July 2021 Lords Chamber

[Lord Callanan (Con)]

We are working hard to make sure that UK producers of steel have the best possible chances of competing for and winning contracts across all government procurement efforts. The joint industry-BEIS Steel Procurement Taskforce, launched on 12 March, shows our willingness to support the sector and aims to work with it to promote the unique selling points of UK steel.

[Lord Grantchester (Lab) [V]]

The Government’s recent U-turn to bring forward emergency legislation to extend steel safeguard tariffs is good news, but this goes back to 2017, when the House first debated the Trade Bill. It is a mess of the Government’s own making. Can the Minister explain how the Trade Remedies Authority will be urgently reformed to prevent more anguish and uncertainty for the steel sector as well as for other businesses and industries?

[Lord Callanan (Con)]

I am pleased that the noble Lord welcomed the decision that was taken with regard to the recommendations of the Trade Remedies Authority. Of course, we keep all these matters under constant review but, as I said, we will continue to work with the sector to see what new opportunities there are and how we can help it in future.

Private Sector: Environment and COP 26

Debate between Lord Callanan and Lord Grantchester

Wednesday 7th July 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes a good point. We keep all these matters under constant review. We are constantly looking at the corporate governance code and we are reforming audit and corporate governance at the moment. We will be announcing some plans when the consultation has closed.

[Lord Grantchester (Lab)]

In June, the Government announced that Microsoft would join SSE, Scottish Power, NatWest Group, National Grid, Sky, Sainsbury’s, Hitachi, Reckitt and GSK as principal partners for COP 26. Can the Minister explain the Government’s criteria for appointing the principal partners? Does this mean that they consider these companies to have clear plans for achieving net zero which are being implemented with a company-determined contribution?

[Lord Callanan (Con)]

All companies that take part in COP 26 will have joined our race to net-zero initiative. As I mentioned in response to the noble Lord, Lord McConnell, 40 of the FTSE 100 companies have already joined it and we hope that more will follow.

Climate Change

Debate between Lord Callanan and Lord Grantchester

Tuesday 29th June 2021 Lords Chamber

[Lord Callanan (Con)]

I cannot promise the noble Baroness that we will support her amendments; I will need to look at them first. But we are doing a lot on skills. For example, the green homes grant included tens of millions of pounds that we spent on grants to encourage providers to provide the training that will be required to undertake many of the green improvements that we all want to see.

[Lord Grantchester (Lab)]

The Climate Change Committee has called out the Government for the scale of the yawning gap that exists between government rhetoric and the Government’s lack of decarbonisation realities. Can the Minister confirm that the missing net-zero strategy will set detailed timelines for how each element of each missing policy will start to deliver decarbonisation with the required urgency, and then ensure that adaptation to climate change is properly integrated into that plan?

[Lord Callanan (Con)]

Well, the strategies will provide some of the detail that the noble Lord is looking for. We will set out a detailed road map of exactly how we will meet our net-zero targets, as he suggests.

Covid-19: Vaccine Production

Debate between Lord Callanan and Lord Grantchester

Thursday 17th June 2021 Lords Chamber

[Lord Callanan (Con)]

There was a lot in those questions. The best way to facilitate this is through the COVAX initiative. The UK is proud to be one of its largest funders. We have helped to raise almost $1 billion for that initiative, which is helping to supply vaccines to 92 developing countries across the world.

[Lord Grantchester (Lab)]

The G7 leaders’ communiqué notes

“the positive impact that voluntary licensing and technology transfer on mutually agreed terms have already made to increasing global supply.”

But untransparent exclusive bilateral voluntary licences from pharmaceutical companies have led to the grossly insufficient quantities of Covid-19 vaccines that we see today. I return to the line of questioning of the noble Baroness, Lady Bryan, and the noble Lord, Lord Purvis: will the UK Government not continue to miss the point but instead use their initiative and push pharmaceutical companies to share intellectual property and tech through the World Health Organization’s Covid-19 Technology Access Pool?

[Lord Callanan (Con)]

My Lords, the intellectual property for the AstraZeneca vaccine, as is known, is actually owned by the University of Oxford. We will of course work with the companies and everyone possible to make sure that the third world is vaccinated, because that is in our interests. That is why we have contributed so much to the COVAX initiative.

Net-Zero Carbon Emissions

Debate between Lord Callanan and Lord Grantchester

Monday 7th June 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness will have to be patient to see the detail of the heating and buildings strategy, but it will provide a clear and comprehensive road map for the challenging work that we all understand will need to take place on decarbonising the heat that goes into both commercial and domestic buildings.

[Lord Grantchester (Lab)]

The Government are right to insist that companies bidding for government contracts should publish their plans on how their own companies will achieve net zero. However, for the Government, it is necessary that they publish detailed delivery plans to accompany legislative targets in a timely fashion. The current policy is insufficient even for the existing targets. While we await the net-zero strategies, how are the Government working together with the devolved Administrations, mayors and local authorities to secure buy-in? Does the Minister agree that it is unsafe to rely on as yet undeveloped technologies to come along just in time?

[Lord Callanan (Con)]

As I mentioned in my answer to the noble Lord, Lord Oates, we are working closely with local authorities and the devolved Administrations because this will be a shared effort. There are often challenging targets that we need to meet, but we are working with all our partners across the country and engaging with the public as well so as to take them along with us on this journey.

Biomass Electricity Subsidies: Deforestation

Debate between Lord Callanan and Lord Grantchester

Thursday 20th May 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a good suggestion. We did try that, of course. Subsidies have been available for more than a decade but we have seen a lack of uptake because they cannot compete with the use of waste products in huge commercial forestries in the US.

[Lord Grantchester (Lab) [V]]

My Lords, we await a biomass strategy due in 2022 and the Minister can confirm that this will assess the link between biomass electricity subsidies and deforestation. The Drax plant is investing in carbon capture in order to be a “carbon-negative company” by 2030. Does he think that that is achievable? When will the Government decide on a development consent order for Drax?

[Lord Callanan (Con)]

In the biomass strategy, we will explore all the factors to which the noble Lord referred. I do not have a date for when a development consent order will be agreed but all this and the relevant factors will be explored in the strategy.

10-point Plan: Six Months On

Debate between Lord Callanan and Lord Grantchester

Wednesday 19th May 2021 Lords Chamber

[Lord Grantchester (Lab)]

I thank the Minister and his department for the energy Statement. This is the scatter-gun 10-point plan: six months on—the repeat. We have a climate emergency, the most pressing issue of our age, which the Conservatives call hyperbole. They cannot bring themselves to declare and sign up to the size of the challenge. The Statement says the Government are already delivering on it, yet in the next sentence says the plan is projected to create so many jobs and mobilise so much investment. These are targets without delivery, rhetoric without reality and wishful thinking. This is underlined by the point in the Statement that says the Government

“have enshrined the UK’s sixth carbon budget in law”.

However, this is yet to happen. The statutory instrument has yet to go through your Lordships’ House for approval. We will not oppose it, but merely point out that the Government have yet to meet the fourth and fifth carbon budgets, mentioned in the Statement, which refer to years sooner than those referred to in the sixth carbon budget.

The climate emergency is real. What these scattergun headlines miss is a comprehensive overall plan, with priorities and route maps along the way to meet in a systematic way the challenges we face. I congratulate the Government on starting to face the task since announcing the scattergun headline plan six months ago. The gestation is slowly evolving. The Government have at least published the energy White Paper, The North Sea Transition Deal, and have begun to recognise the further missing strategies as ingredients that need to be addressed and delivered if this plan is to be comprehensive. The response to the climate emergency is nowhere near being oven ready.

I thank the Minister for recognising in this Statement that we still need a heat and building strategy ahead of COP 26. We still need a transport decarbonisation plan. More than ever, we need a national retrofit and fuel poverty strategy with skills training, now that the green homes grant scheme has been abandoned and its funding withdrawn, rather than being allocated elsewhere. Where is the Treasury’s crucial net-zero review, due in the autumn last year, then promised this spring? Can the Minister give us another target? When will it see the light of day and set the overall size and context of the financial commitment needed? Germany has invested £38 billion in a green recovery, France £31 billion; and in the US President Biden has committed $1 trillion of his green infrastructure plan to green initiatives.

Will the Government commit to bringing forward the £30 billion green recovery fund Labour has called for? Do Government now accept that the UK is facing a climate emergency, and do they believe that this scattergun 10-point plan is really meeting the scale of that emergency? According to the climate change committee, the Government’s emissions target needs £50 billion of public and private investment every year by 2030, but the scattergun plan promises only £54 billion of public and private investment over the entire next 10 years put together. Has the Minister seen this analysis and how does he propose the Government make up the shortfall?

The Government’s emissions target will require huge changes, including the full decarbonisation of our power sector by 2035 and half of new cars sold by 2025 being electric. Can the Minister lay out in precise terms how the scattergun 10-point plan will achieve this? Will he commit to publishing his modelling? Given that petrol and diesel cars cannot be sold from 2030 onwards, what plans do the Government have to ensure that those on low to middle incomes are not priced out of electric car ownership?

The Government and the nation have a long way to go. Industry will play its part. As recently stated, much of the technology that will be needed to achieve net zero has yet to come into existence and be readily available. Hydrogen will be a key part of the energy mix and key to the decarbonisation of heat, as well as the solution to rail transport, especially for freight. There is a massive opportunity for Britain, with our fantastic scientists, our brilliant workforce and world-leading businesses. We need a Government with ambition and real commitment who get the task done, matching the ingenuity and inspiration of the British people. The Minister has shown great bravery in announcing his scattergun plan—the repeat—so soon. The Government are second to none at self-congratulation. Labour has put some clear red lines through much of the rhetoric and has a sharp message across the bottom: “Good but must do better”.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

I thank the noble Lord, Lord Grantchester, for his comments. Obviously, I do not agree with many of them, but let me go through the points he raised in turn.

He talked about the fifth and sixth carbon budgets. The noble Lord needs to see this in the context of the UK’s record on decarbonisation. As he said, we have recently, on 21 April, laid the legislation to set the sixth carbon budget, covering 2033-2037. That will require a 78% reduction in emissions compared to 1990. In addition to the carbon budgets, as he is well aware, we have set the highly ambitious nationally determined contribution, through the UN process, to reduce emissions in 2030 by at least 68% compared to 1990 levels. This is the highest reduction target made by any advanced economy. We have shown through our actions that cutting emissions and growing the economy can go hand in hand. We achieved record clean growth between 1990 and 2019. Our economy has grown by 78%, and at the same time, we have managed to reduce emissions by 44%. That is a better record than any other G7 nation. I would have hoped that the noble Lord might at least have given us some credit for delivering that.

The noble Lord mentioned the green homes grant. Yes, we will not hide from the fact that it did run into some difficulties in terms of delivery, but we have made excellent progress across much of the investment. We have invested substantial sums in social housing, schools and hospitals, as well as in homes through the green homes grant, in particular supporting local authorities through the local authority delivery scheme. As he will be aware, the Chancellor also announced additional funding of £300 million going into the local authority delivery scheme, and we are working in partnership with many local authorities. I have met with many of them, and they are very grateful for this funding.

He asked about the Treasury net zero review. We have announced that the net zero report will be published this spring. It was delayed from autumn last year because of the pandemic. In the meantime—in order to keep his reading up to speed—Her Majesty’s Treasury published an interim report this autumn. This sets out our approach to the review and analysis which will form the final report. The initial timing of the review was delayed due to the Covid crisis. Given these circumstances, we took the decision to move publication to 2021, so if he will have a little bit more patience, the review will be there for him to read shortly. He also mentioned our investment in transport decarbonisation. Let me give him some of the figures. We have provided £1.3 billion to accelerate the rollout of charge points for electric vehicles, we have provided £582 million in plug-in vehicles grants, we have spent nearly £500 million on the automotive transformation fund and we spent considerable sums on improving public transport and government investment in low-carbon buses and trains. In March, we published England’s long-term national bus strategy, setting out a bold vision for bus services across the country.

He also asked about the transport decarbonisation plan. We have announced that the UK is embarking on a comprehensive transport plan—a bold and ambitious programme of co-ordinated action needed to meet the UK’s transport greenhouse gas emissions targets through to 2050, and that ensures that the transport sector plays its part. I think I have responded to most of his points.

National Security and Investment Bill

Debate between Lord Callanan and Lord Grantchester

Report stage
Thursday 15th April 2021 Lords Chamber

[Lord Grantchester (Lab)]

My Lords, we remain committed to the principles of the Bill, and join others in thanking the Minister and his team for the way they have conducted discussions with us to resolve any issues on the Bill. One of the issues that remains involves the extensive adventure of the unit into the business environment. In Committee, my colleague and noble friend Lady Hayter introduced an amendment to delete Clause 6(2)(b), and asked why the Government wished to make subject to mandatory notification all acquisitions that resulted in only a minimum 15% stake in an entity. We consider that disproportionate. The noble Lord, Lord Leigh, also spoke passionately on the point, as did several other noble Lords. My noble friend apologises because, understandably, she cannot take part in these proceedings today.

However, it is to be welcomed that the Government have heeded the concerns about the unnecessary impact on businesses and the largely intrusive workload for the new ISU section in the department. Government Amendment 3, together with the consequential amendments in this group, would remove the 15% threshold for notifiable acquisitions from the regime. Throughout the proceedings on the Bill, we have been concerned about the impact on businesses, especially in the SME sector, and the huge workload that the Bill would create. That government concession goes a long way towards meeting those concerns.

The Government will still be able proactively to call in transactions involving acquisitions under the 25% threshold of shares or votes if such an acquisition could be deemed to result in “material influence”. However, the ISU would be notified only of transactions most likely to raise national security risks in the most sensitive sectors of the economy. This is plainly sensible. The removal of the 15% threshold will also remove unnecessary impediments to investments in smaller start-ups and enterprises, which might have concerns about hitting the 15% threshold.

Initially the Government reckoned that the new screening regime would result in about 1,800 notifications per year. We expressed scepticism at that estimate, as did several others, including the CBI. Whatever would have been the result, have the Government now recalculated how many notifications the department is likely to receive, having deleted the 15% threshold? I would be grateful if the Minister could give the House the new figure, with any further explanations as to its determination. It would be useful to reflect on it, in the light of the experiences of the unit that are to come.

I am grateful, too, to the noble Lord, Lord Hodgson, for his Amendment 8, which redrafts Clause 8(6). I understand very well the point he is making, and I await the Minister’s reply.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

I am grateful to noble Lords for an interesting debate, and I am particularly grateful to my noble friends Lord Lansley and Lord Hodgson for their respective amendments in this group concerning the scope of the regime. I will turn to those in a moment, but let me start with a few remarks on the amendments in my name.

Debates on the Bill, both in this House and in the other place, have reflected that there is a strong degree of cross-party consensus on its underlying principles. I am grateful to the Opposition for making that clear. All sides agree that reforms are necessary to keep the country safe and to bring our investment screening powers in line with our friends and allies. There has also been a shared recognition that the requirements of the mandatory regime must be no more than are necessary and proportionate for the protection of our national security, so that business and investment are not unduly burdened or stifled.

The noble Lord, Lord Fox, put it well in Committee when he reminded us that the clue is in the name. This is the National Security and Investment Bill, and it is vital that we secure both these interests. To that end, the Government have reflected carefully on the scope of the mandatory regime and, in particular, on the comments made by a number of noble Lords in Committee on the 15% starting threshold. I pay particular tribute to the noble Baroness, Lady Hayter, who raised this—and who is, I am pleased to see, in her place, taking a break from her “get out the vote” campaign. Perhaps she would be better advised to be getting out the vote, but I am grateful that she has joined us. I am also grateful to my noble friends Lord Leigh and Lady Noakes, the noble Baroness, Lady Bowles, and the noble Lord, Lord Fox, who all spoke powerfully in support of her amendment.

The Government have concluded that the right approach is indeed to remove acquisitions between 15% and 25% from constituting “notifiable acquisitions”; Amendment 3 gives effect to this decision. We recognise that acquisitions between 15% and 25% will not result in material influence being acquired as a matter of course. Indeed, in many cases, we anticipate that material influence will not be acquired. We have always sought to ensure that the mandatory regime is reasonable and proportionate, and this is an important change, which I believe businesses and investors alike will welcome. I hope that it will reduce the business burden and allow the investment security unit to focus on notifications and cases that will necessarily result in control being acquired.

Let me make two further points on this amendment. First, there may be some noble Lords—my noble friend Lady Neville-Rolfe was one, I believe—who will say that this is a weakening of the regime. Let me explain why I do not believe that that is the case. As the noble Lord, Lord Fox, pointed out, the Secretary of State will continue to be able to call in acquisitions across the economy at or below 25%—and, indeed, if necessary, below 15%—where they reasonably suspect that material influence has been or will be acquired. That call-in power will be available up to five years after an acquisition takes place, so the incentive for parties to notify cases of material influence that may have national security implications remains, in order to achieve deal certainty. The five-year period also provides the Government with a significant window to identify acquisitions of concern and for the Secretary of State to call them in for scrutiny.

Secondly, the Clause 6 powers enable the Secretary of State to amend the scope of the mandatory regime through regulations. Notwithstanding this amendment, that would include the ability to introduce, if necessary, a 15% threshold or, indeed—assuming the will of Parliament, of course—any other threshold that would be relevant to determining whether a trigger event would take place, for mandatory notification in future if that is considered appropriate. The Government do not currently envisage doing so, but I am sure that noble Lords will agree that it is important that the Bill provides the power to do so, subject to the will of Parliament, if the evidence of the regime in practice suggests that this matter should be revisited. I hope that that reassures my noble friend Lady Neville-Rolfe.

Amendments 4, 5, 10 and 21 are all consequential amendments that reflect the removal of the 15% threshold, so I do not intend to dwell on them further.

I now turn to the other amendments in this group. Amendment 2 in the name of my noble friend Lord Lansley would make the acquisition of material influence a notifiable acquisition. I have to say that, in his speech, my noble friend did such a good job of advocating for the Government’s position on his own amendment that perhaps we should welcome him back to the Front Bench at some stage; actually, he would probably make a better job of it than me.

The Government do not consider that broadening the scope of the mandatory regime to material influence would be appropriate. The mandatory regime, given that it is underpinned by voiding and criminal and civil sanctions, must be defined with sufficient certainty for acquirers to determine their obligations objectively.

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[Lord Grantchester (Lab)]

My Lords, in Committee we debated the climate emergency as the most pressing issue that affects every aspect of everyday life. The climate crisis is not only a threat in the long term to our survival and that of the planet but a threat to security in the short to medium term. According to the Government’s own statistics, nature loss will result in a cumulative economic cost of up to £10 billion between 2011 and 2050. While the Minister may say that climate change is not directly connected to the national security and investment regime proposed in the Bill, actions by hostile actors that stifle our modern green infrastructure can only make us more vulnerable. As the former civil servant Paddy McGuinness has recently said, green networks

“provide an attractive opportunity for an adversary to unbalance, intimidate, paralyse or even defeat us."

I am grateful to the noble Lords, Lord Fox and Lord Clement-Jones, and the noble Baroness, Lady Bennett, who have returned with simple “must have regard to” wording in Amendments 6 and 7 regarding climate change and biodiversity loss. Of course, all Governments will have regard to all legislation on the statute book that impacts on our activities and lives. Nevertheless, it is imperative that the risks of climate change be recognised in the new regime being initiated through the Bill, and the Secretary of State must consider how to mitigate these deepening risks.

I am grateful to the noble Baroness, Lady Bennett, for retabling our Amendment 38 from Committee, which asks for a statement to be made on emerging threats in the light of priorities identified in the Integrated Review of Security, Defence, Development and Foreign Policy. It allows me to follow up with some further questions on the integrated review and its associated documents.

Can the minister provide an outline of how the ISU will work effectively with the MoD directorate for economic security? It is all very well to say that the ISU will be drawing on the expertise in the MoD and the Defence Secretary will be able to make representations to the Business Secretary, but what mechanisms will be set up to co-ordinate across departments? Will there be a mechanism whereby the MoD directorate can give advice directly to businesses in a defence and supply chain through policies initiated from the ISU in the business department, especially in connection with technologies and future associated threats? It would be helpful if the Minister could respond or follow up with a letter in due course.

[Lord Callanan (Con)]

I am grateful once again to the noble Lords, Lord Fox and Lord Clement-Jones, and the noble Baroness, Lady Bennett—I am particularly grateful that she has joined us after her dental work and of course we wish her a speedy recovery—for their respective amendments in this grouping.

With the permission of the House, I will take Amendments 6 and 7 together. Amendment 6 seeks to require the Secretary of State to

“have regard to the risk to national security posed by climate change”

when preparing secondary legislation under Clause 6 in relation to the scope of the mandatory notification regime. Amendment 7 then seeks to amend Amendment 6 to require the Secretary of State to also have regard to the risk to national security posed by biodiversity loss.

I commend the sentiment of the amendments regarding tackling climate change. As I set out in Grand Committee, this Government are of course committed to tackling the climate crisis. I can also confirm, in response to the amendment of the noble Baroness, Lady Bennett, that, just as the Prime Minister has said in his foreword to the integrated review, biodiversity loss very much sits alongside that as the UK’s top international priority. The Government continue to promote co-operation on climate action through the UK’s G7 presidency, and we look forward to the COP 26 conference in November, which will allow us to highlight our leadership in tackling the climate crisis, including biodiversity loss.

However, the Bill is focused on the risks to our national security posed by the acquisition of control over qualifying entities and assets. As the noble Lord, Lord Fox, correctly predicted, we are therefore unable to accept amendments seeking to set out what is or is not a factor to be considered when looking at national security, including factors relating to climate change and biodiversity loss, without edging closer to defining it—which, as he knows, we are reluctant to do. I hope that having my comments on the record in response to these issues provides due assistance to noble Lords. I can further reassure them that, as drafted, the Bill provides the flexibility for the Secretary of State to consider all types of risk to national security that are relevant in the context of this regime, including those that are environmental in nature.

I thank the noble Baroness, Lady Bennett, for her Amendment 38, which seeks to ensure that the national security and investment regime is consistent with the recently published integrated review. I note that a similar amendment was tabled in Grand Committee by the noble Baronesses, Lady Hayter and Lady Northover. However, whereas that amendment asked for a report

“as soon as reasonably practicable”,

the noble Baroness, Lady Bennett, has opted for “within six months”. As noble Lords will be aware, the integrated review provides a comprehensive articulation of the UK’s national security and international policy. It outlines three fundamental national interests: sovereignty, security and prosperity.

I understood the benefits of an amendment in Grand Committee when the Government had not published the integrated review but, now that we have, the alignment is clear for all to see. For example, the NSI will be tremendously valuable in countering state threats, in maintaining the UK’s resilience and in helping us to work with and learn from our allies, to name but a few areas of alignment. Indeed, as noble Lords would expect, this Bill is explicitly referenced within the review.

As noble Lords will know, the National Security and Investment Bill will prove a key tool in enabling the UK to tackle its long-term security concerns and pursue its priorities. The Bill will create carefully calibrated powers for the Secretary of State to counteract concerns around acquisitions and the flexibility to respond to changing risks and a changing security landscape. As part of this, the regulation-making powers in the Bill allow the Secretary of State to keep pace with emerging threats as they arise, such as by enabling them to update the sectors covered by mandatory notification.

Therefore, for the reasons that I have set out, I do not see a strong case for the amendments and I very much hope that their proposers will feel able to withdraw them.

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[Lord Grantchester (Lab)]

I welcome the lead amendment in this group from the Government, providing greater clarity to the Clause 53 procedure for service. However, the bulk of the amendments in this group concern Clause 61, on the annual report. I thank all noble Lords who have contributed to this debate.

In commerce, I have always championed annual reports as a strategic publicity document for an organisation, displaying how it is performing, how effective it has been, what results and achievements it has attained and what wider societal responsibilities it has performed. It can be far more than a dry, lumpy statutory document that has to be produced and is a chore to be complied with. I am sure it should be the same for government departments and public agencies.

I am grateful, therefore, for the dialogue since Committee with the Minister and his team regarding this issue. I am very glad that the Government have looked again at Clause 61 and at the material that could be provided in the annual report of this new unit and its operation. I am grateful to the noble Baroness, Lady Noakes, for looking at this and extending the information to be provided to cover both mandatory notifications as well as voluntary notices.

The noble Baroness has also added many more aspects that would provide greater visibility for the activities of the ISU. It is important that the Government are transparent about these areas so businesses can see the impact on their activities and compare experiences. Parliament and the public can monitor the work of the unit and determine the value to national security activities and how far legitimate businesses are being affected. These amendments were all supported by the UK BioIndustry Association. I thank it for the briefings it has sent throughout the Bill.

However, we still believe that there is more that the Government could do to assist the understanding of this new regime. I thank the noble Lord, Lord Clement-Jones, for adding his name to my Amendment 34. Greater transparency could still be given on the resources allocated to the new unit, the extent to which small and medium-sized enterprises are called in under the regime and the Bill’s impact on foreign investment. This is about requiring greater accountability from the department on the unit’s service standards.

The business community still remains somewhat nervous concerning the impacts on it as a result of the Bill. Throughout its passage, we have sought to champion clarity and support for SMEs and innovative start-ups, which are the engine of growth in the economy, create many new jobs and enhance prosperity. We are keen to foster a business environment in which SMEs can thrive.

It would be beneficial for the Government to report on the unit’s work with SMEs in the annual report. This can only be helpful in providing detail and reassurances to SMEs on the operation of the unit and its impacts on them. I would be very grateful if the Minister could provide reassurances that his department will embrace the annual report in a positive manner and provide as wide a range of information as possible.

[Lord Callanan (Con)]

My Lords, first, I thank all noble Lords who spoke in this debate, particularly my noble friend Lady Noakes—for her Amendments 26, 28, 29, 30 and 31—and the noble Lords, Lord Grantchester and Lord Clement-Jones, for Amendment 34.

I also thank my noble friend Lady Neville-Rolfe, to whom I will reply first. The Government have written on plans for a range of guidance, as my noble friend said. This is intended to aid parties in understanding and complying with the Bill. Timings and matters of requirements are set out in the legislation; they were consulted on, and of course they cannot be added to in guidance. As in the past, the Constitution Committee advised us quite strongly against legislating through guidance. Of course, we remain open to further proposals for guidance that assists in understanding and complying with the basic provisions in the Bill.

I move on to Amendments 26 and 28, which seek to require the Secretary of State to report on the “maximum and average time” taken to process mandatory and voluntary notices. These amendments would also require the Secretary of State to report on the “maximum and average time” taken between a notice being accepted and a call-in notice or notification of no further action being given or issued. Clauses 14 and 18 already set out that, if a notification is accepted, the Secretary of State has up to 30 working days to either give a call-in notice or notify each relevant person that no further action will be taken under the Bill.

I outlined in Grand Committee that these timings are a maximum, not a target. I have also set out the principles by which the Government consider it appropriate to specifically amend the Bill to require additional reporting, rather than to judge over time whether it would be beneficial to publish the information. It is already clear in the Bill that the maximum time that can be taken to make a call-in decision is 30 working days.

On the point of including average times, as I hope noble Lords will appreciate, each case will turn on its own facts. Therefore, reporting an average time without explaining the complexities of every individual case would be meaningless, in my view. For example, there may be a low average for some response times where particularly straightforward cases were prevalent—this may be held up as an efficient case review. There may be another period where particularly complex cases are dealt with exceptionally efficiently but none the less slightly more slowly. What would a comparison of the averages without further details on the cases provide? To my mind, it would provide nothing but a misunderstanding.

Amendment 29 seeks to require the Secretary of State to separately report on the number of call-in notices given in response to mandatory and voluntary notifications. I reassure the noble Baroness that the Bill already allows for the Secretary of State to do this in the future if deemed useful. Clause 61 sets out minimum reporting requirements that the Secretary of State must meet in the annual report.

Amendments 30 and 31 seek to require the Secretary of State to report on the “maximum and average time” taken between a call-in notice being issued and the making of a final order as well as the “maximum and average time” taken between a call-in notice being issued and a final notification that no further action will be taken under the Bill. In my view, the same argument applies in response to these amendments.

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[Lord Grantchester (Lab)]

I am grateful to the noble Lords, Lord Fox and Lord Clement-Jones, for the amendment, which proposes a super-affirmative process for regulations under subsection (1) of Clause 6, “Notifiable acquisitions”. This was debated at length in Committee, and we certainly agree that parliamentary scrutiny of regulations is not always as meaningful as it might be. We can feel sympathy with the view that notifiable acquisition regulations are highly significant and require proper oversight, not merely by both Houses of Parliament but also by many experts who might become involved.

The opinions of those experts could be sought and made available to Parliament and deliberated on. The importance of consultations with stakeholders who are knowledgeable and familiar with the situation at the leading edge is also recognised. However, the Delegated Powers and Regulatory Reform Committee did not call for the super-affirmative procedure to be adopted for these regulations under the Bill. Indeed, in its report of 22 February it said that

“there is nothing in the Bill to which we would wish to draw the attention of the House.”

It would be unusual to take a view contrary to the considered opinion of that well-respected committee of your Lordships’ House.

We remain somewhat sceptical about how the super-affirmative procedure would work in practice, over and above the normal affirmative procedure, in this case, even if custom and practice deemed the process less than ideal in all circumstances. We feel that experience needs to be gained first before undertaking this extra affirmative process. I hope this confirmation of what the noble Lord, Lord Fox, may have heard about our view on his amendment may not greatly startle him.

[Lord Callanan (Con)]

My Lords, I of course welcome the amendment from the noble Lords, Lord Fox and Lord Clement-Jones, which seeks further parliamentary scrutiny of Clause 6 regulations, and the opportunity to put forward the Government’s case once more. I can spare the noble Lord, Lord Fox, the agony and tell him that, great though my ministerial powers are, I am not a miracle worker and, therefore, probably will not satisfy him.

The Bill as drafted provides for regulations made under Clause 6 to be subject to the affirmative resolution procedure. This amendment would require the Secretary of State to lay a proposed draft of any regulations made under Clause 6 before Parliament for 30 days before the draft regulations themselves are laid and subject to the approval of both Houses. It would also require the Secretary of State to identify a committee to report on the proposed draft regulations and then report on their consideration of the committee’s recommendations.

We have, as the noble Lord, Lord Fox, said, previously discussed the importance of regulation under Clause 6, and I thank the noble Lords for their commitment to ensuring meaningful parliamentary scrutiny of the making of such regulations. However, the Government’s position remains that the affirmative procedure—or regulations made under Clause 6—ensures such scrutiny by requiring Parliament to approve regulations. In Grand Committee, the noble Lord also highlighted the importance of the Secretary of State maintaining “serious technology foresight” and making any regulations under Clause 6 to protect our national security effectively. I can assure noble Lords that the Government are committed to keeping regulations under constant review to ensure that this regime is effective in protecting our national security and reflects technological changes.

The affirmative procedure will, in addition, provide the Secretary of State with the flexibility to update the mandatory regime quickly should new risks to national security arise. For all these reasons, I ask that the noble Lord withdraw his amendment though, in the absence of the requested miracle, I suspect that he is not going to do so.

Heat Pumps

Debate between Lord Callanan and Lord Grantchester

Monday 22nd March 2021 Lords Chamber

[Lord Callanan (Con)]

We already work closely with Ofgem and key electricity network stakeholders to assess the network impacts and the future requirements arising from the increased deployment that the noble Lord highlighted. The work is focused also on how these requirements can be met cost effectively and practically, and on the potential role of flexibility in switching demand away from peak times.

[Lord Grantchester (Lab) [V]]

My Lords, in the absence of a heat and building strategy, with only a scattergun, 10-point plan at the start of another financial year for local councils, what will the Government implement to co-ordinate local area energy planning into an effective patchwork of integrated solutions, starting with incremental core funding schemes?

[Lord Callanan (Con)]

The heat and building strategy will set how we will co-ordinate many of these plans and work with local authorities. As the noble Lord is aware, we have a number of incentive and funding schemes to help in this deployment.

National Security and Investment Bill

Debate between Lord Callanan and Lord Grantchester

Committee stage
Tuesday 16th March 2021 Lords Chamber

[Lord Grantchester (Lab)]

Amendments 39 and 87, tabled by the noble Lord, Lord Lansley, probe the Minister around the question of the interaction of the NSI regime with the export control regime. The Committee must be assured that this new regime is not buried within the Business Department but works effectively across government, not least in relation to export controls. The Government’s response to the sector consultation in the report already mentioned states

“how the NSI regime sits alongside export controls to provide a comprehensive regime protecting our national security capability”.

It is not merely a question of sitting alongside, however that may be interpreted, but of interacting and co-ordinating with the Department for International Trade. The Government seem to recognise this in the comment:

“We must ensure that the export control criteria cannot be circumvented by allowing the acquisition of companies that produce such goods, rather than buying the goods themselves, without effective screening.”


More clarity and information in the procedures to this eminently sensible statement would be very welcome from the Minister.

The Government responded to the consultation that they intend to capture all materials that are considered likely to give rise to national security concerns and which are contained in the relevant legislation set out in the UK’s strategic export control list. I would be grateful if the Minister could provide better information on their intentions, and how and when this will become clear and transparent. Will he provide a guarantee that this will happen—the assurances that the noble Lord, Lord Lansley, has required during the passage of the Bill?

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

First, I thank my noble friend Lord Lansley for these two amendments, which seek to ensure seamless integration between the new regime provided for by the Bill and the existing export control regime. I shall take his amendments sequentially.

Amendment 39 seeks to ensure that the Secretary of State can, through regulations, exempt from the regime certain acquisitions of control over qualifying assets that are subject to export control orders. Clause 11 provides for exceptions relating to control of assets. Subsection (1) sets out that acquisitions made by individuals for purposes wholly or mainly outside the individual’s trade, business or craft are not to be regarded as gaining control of a qualifying asset and are therefore excluded from the scope of the call-in power. This does not apply in relation to an asset that is either land or subject to certain export controls set out in subsection (2)(b).

Subsection (3) also provides a power for the Secretary of State to amend the list of assets that are outside the scope of this exemption or to prescribe other circumstances in which a person is not to be regarded as gaining control over a qualifying asset. That includes being able to prescribe circumstances in which the acquisition of an asset subject to export control legislation is not to be regarded as gaining control over a qualifying asset. Any use of this power in subsection (3) would, of course, be guided by the operation of the regime in practice and any patterns of activity that are observed. As such, I can therefore assure my noble friend that the Bill already provides for what his amendment intends to achieve.

Amendment 87 would require the Secretary of State to ensure that any interim orders or final orders made in relation to acquisitions of control over assets take into account controls imposed under the Export Control Act 2002 and related provisions. I thank my noble friend for his proposal and commend the intent behind it. It is, of course, very important that the Secretary of State’s use of the powers provided for by the Bill is in keeping with the Government’s measures under other legislation. The Secretary of State must take into account all relevant factors when making decisions about the use of interim orders and final orders.

The legal tests in the Bill require the Secretary of State, before making an order, to reasonably consider that the provisions of the order are necessary and proportionate for the purpose. In the case of final orders, that purpose is to address a risk to national security, and in the case of interim orders, it is to prevent or reverse an action that might undermine the national security assessment process. Whether controls have been imposed under export control legislation will be relevant to whether the envisaged provisions of an order are necessary and proportionate. For example, where export controls in relation to an asset are already in place, it may not be necessary or proportionate to make an order under this Bill prohibiting the transfer of the asset overseas, but this will depend on the facts of each case.

Addressing the questions of the noble Lord, Lord Purvis of Tweed, about why we need the Bill when we already have the export control regime, I say that the export control regime is a licencing regime for certain controlled goods. It is an important part of the safe- guarding of our national security and it sits well alongside the proposed national security and investment regime. The two regimes are distinct though, and do not perform the same role. For example, the export control regime does not provide the Government with the ability to scrutinise acquisitions of UK companies or direct the use of sensitive assets used in the UK, whereas of course the NSI regime would.

On the noble Lord’s points about standard individual export licences if they have been granted for an export, I tell him that a standard individual export licence is granted to one person to export specified items to a named recipient. If the parties involved precisely follow the terms of a standard individual export licence that has already been granted following an assessment of national security risks, it is unlikely that the Secretary of State would reasonably suspect that the export might give rise to national security risks. In this situation, it is unlikely that he would be able to call that export in under the NSI regime. However, it is important to say that any decisions would need to be made on a case-by-case basis. It is important that the Secretary of State retains the ability to call in and scrutinise trigger events involving the export of assets in the event that national security risks are present.

The noble Lord asked about Northern Ireland. Qualifying entities as assets in Northern Ireland sit within the scope of the Bill, and that ensures that there are no loopholes. A trigger event under the Bill is not based on the application of EU law. For completeness, I should also say that the Secretary of State will, in any event, be subject to public law duties requiring him to consider all relevant factors when deciding whether to make an order under the Bill. Therefore, where export controls are relevant, the Secretary of State will need to take them into account when making that order.

I hope that that has explained, for the benefit of the House, the interaction between the two pieces of legislation. With the explanations that I have provided, I hope that my noble friend will feel sufficiently reassured that his concerns have been taken into account, and that he will not press his amendments.

--- Later in debate ---

[Lord Callanan (Con)]

I am not sure there were any questions for me there; the noble Lord has made some observations. I understand that he was unhappy with my replies, but I am afraid I cannot agree that the Bill is “furtive” or “hiding in the dark” at all. We are committed to transparency as much as possible. He says he has six additional points on market guidance notes. If he wants to send them to me, I will happily have a look at them and see what we can do. We said a maximum of five years, but of course the Secretary of State has the ability to do earlier reviews if necessary. That is a maximum date, and we could bring that forward. I take on board his points and am sorry if he is disappointed by my replies.

[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Bilimoria, for his amendment in this group proposing a review of the Act and its engagement with businesses. I am sure it will become clear and the appropriate responses will be forthcoming from the department.

I thank the noble Lord, Lord Clement-Jones, for his sympathy. The effect of the regime on SMEs is very relevant, and high-quality guidance for businesses has been recognised in the Minister’s replies. I thank him also for his replies on the pandemic and the business environment with the call-in powers of the Secretary of State. He returns to the issue of the annual report, thus giving room for these matters to be considered slightly further. With that in mind, I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Grantchester (Lab)]

My Lords, unlike the noble Lord, Lord Fox, I am not unduly fearful of the noble Baroness, Lady Bennett. I have always thought that being Green does not allow for having a whip. However, I thank the noble Baroness for proposing this new clause to the Bill. I am certainly clear that the climate emergency must hang as a backcloth to every action that we undertake.

The aim of Amendment 93 is completely understood and appreciated. It seeks a Ministerial Statement on how the provisions set out in this Bill will be exercised in relation to the national security impacts caused by climate, environmental or ecological damage. The climate crisis is not only a threat to our way of life in the long term but a threat to national security in the short to medium term. Only last week, Jens Stoltenberg, the NATO Secretary-General, said that

“climate change makes the world more unsafe, so NATO needs to step up and play a bigger role in combating it.”

A few weeks ago, even the Prime Minister made a comment that climate change is a threat to our society. How will the new regime take account of this and reflect on his comments?

The Committee has already questions about the list of sectors affected, especially the energy sector, as well as about protecting green infrastructure. I have raised with the Minister the EV infrastructure, solar and wind industries and how their growth should be protected. It is certainly important that we hear more from him on the issue and what the difficulties would be in undertaking to produce the kind of statement being proposed by the noble Baroness, Lady Bennett. If the Government are resistant to producing such a statement, could the issue be included as an integral part of the annual report?

[Lord Callanan (Con)]

My Lords, let me thank the noble Baroness, Lady Bennett, for her amendment and begin by expressing my heartfelt sympathy to the noble Lord, Lord Fox, on being admonished by her. All that I can say is, welcome to the club.

The amendment would require the Secretary of State to publish within six months of the Bill becoming law a statement on how the regime will be exercised in relation to national security impacts caused by climate, environmental and ecological damage. As the noble Baroness, Lady Bennett, knows—we have debated these matters on numerous occasions in this House—this Government are committed to tackling climate change. We are especially looking forward to the COP 26 conference in November, which will highlight our leadership on this issue and promote co-operation on climate action through the UK’s G7 presidency, as Alok Sharma MP set out in a speech to the UN on 8 February. Of course, the COP 26 preparations continue to be led by Alok Sharma, who opened Second Reading on the Bill in the other place. I am sure that we all wish him well as he strives to bring the world to ambitious agreements in Glasgow.

The Bill, however, focuses on national security risks arising from acquisitions of control over qualifying entities and assets. If we were to view national security through a particular lens, as the amendment seeks to do through environmental concerns, we would be in some way defining national security. We have deliberately avoided defining it in the Bill, a matter that we have debated previously. We have expounded on that at some length in this House and in the other place.

Without rehearsing those arguments, which I am sure noble Lords are familiar with, I hope they will understand that we cannot accept amendments that seek to define national security in a particular way. The noble Baroness’s amendment asks for a statement on how the provisions in the Bill will be exercised. The most fundamental provision is the call-in power. The Bill already requires the Secretary of State to publish a statement on how that is expected to be exercised before being able to use the power. A draft of that statement was published on introduction of the Bill in November. The Government would be very pleased to receive comments and have committed to consult on it publicly. The final version of the statement must be laid before Parliament and will be subject to the negative resolution procedure.

Finally, two provisions in the noble Baroness’s amendment—proposed new paragraphs 2(a) and 2(b)—address specifically environmental concerns. Laudable as they are, they are not directly connected to the national security and investment regime proposed in the Bill. That is because the regime concerns whether the acquisition of qualifying entities and assets poses a risk to national security, not the actions of those entities or assets themselves. Given the Government’s commitment to environmental policies, but recognising that the Bill deliberately avoids defining national security, and given that a statement on how the call-in power is expected to be used is already provided for, I hope that the noble Baroness, in the light of what I have said, is able to withdraw her amendment.

Climate Change Committee: Carbon Budget Report

Debate between Lord Callanan and Lord Grantchester

Tuesday 16th March 2021 Lords Chamber

[Lord Callanan (Con)]

I certainly agree with the first part of my noble friend’s question about the need for trust and openness. The Government are currently examining how best to support the public in making green choices and adopting sustainable behaviours. This includes identifying information that people need and how it can best be communicated, and providing it in an accessible format.

[Lord Grantchester (Lab)]

My Lords, one year into the pandemic, what lessons have the Government learned to encourage behavioural change in relation to net zero, given that the Public Accounts Committee reports this month that the

“Government has not yet properly engaged with the public on the substantial behaviour changes that achieving net zero will require”,


via co-ordinated, cross-department, consistent messaging?

Offshore Gas Rigs

Debate between Lord Callanan and Lord Grantchester

Thursday 11th March 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is right that that is not in my remit, but I am happy to tell him that my department has not undertaken any research in this area because, to date, there is no known evidence of significant impacts identified. Some species of birds migrating across the North Sea may become attracted to offshore light sources. To this extent, the 2015 OSPAR convention developed guidelines to reduce the impact of offshore installations on birds in the OSPAR maritime area.

[Lord Grantchester (Lab)]

Besides the philosophical objections for the Government, what are the difficulties for introducing a Norway-type zero-flare policy? Could the Government bring flaring into the emissions trading scheme and make it subject to carbon taxation?

[Lord Callanan (Con)]

There are significant practical and operational difficulties, which the noble Lord alludes to. However, I am happy to tell him that flaring intensity decreased by 22% in 2020 from 2019 levels, as production facilities cut the overall volume to 33 billion cubic feet.

National Security and Investment Bill

Debate between Lord Callanan and Lord Grantchester

Committee stage & Lords Hansard
Tuesday 2nd March 2021 Grand Committee

[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Vaizey, for these probing amendments relating to the penalty of deeming mergers and acquisitions void in the event of proper notifications and subsequent assessments by the Secretary of State not having taken place. The Minister will need to explain how this will work. Most of the amendments in this group focus on Clause 13, “Approval of notifiable acquisition”, in Chapter 3. Subsection (3) states that:

“A notifiable acquisition, in relation to which a final order has been made, that is completed otherwise than in accordance with the final order, is void.”


I appreciate the view of the noble Lord, Lord Vaizey, that there could be alternative outcomes to certain elements or aspects of any deal. Has the Minister considered whether the Secretary of State could publish guidance on how the mechanisms of deeming non-compliant transactions void would work in practice? Clarity for SMEs would be most helpful.

The ability for transactions to be deemed void where they have not been approved by the Secretary of State, have not been notified or are non-compliant with any final order could have large repercussions. Clause 15, “Requirement to consider retrospective validation without application”, and Clause 16, “Application for retrospective validation of notifiable acquisition”, raise the issue of retrospection in relation to the legally void provision. Could transactions that took place in the past, even up to five years previously, be immediately deemed void? If the first transaction in a chain were deemed void, that would leave the legal rights and entitlements of all subsequent transactions’ parties in total confusion. There could be conditions in a transaction that came to fruition or were exercisable over a length of time, with these events deemed the trigger events rather than the merger itself. Those elements would have had impact at the inception of any M&A activity. An impossible series of rights, entitlements and developments would have to be unwound, which would cause great legal uncertainty.

The noble Lord, Lord Vaizey, also raised the issue of other jurisdictions or cross-jurisdictions. Have these circumstances, among the many others, been considered in the provision of this power? What are the legal implications for the process where the possible imposition of a transaction to be void is under consideration? Have the Government made plans to publish guidance in this area, even though they may consider that circumstantial evidence may make such guidance highly speculative? Many speakers have found the provision impractical and unworkable.

[Lord Callanan (Con)]

My Lords, first, I apologise for my noble friend Lord Grimstone, who has had to attend a debate on Kenya in the Chamber. I am afraid you are stuck with me for this one, which is obviously disappointing for the noble Lord, Lord Fox. I thank all noble Lords who have contributed.

We understand the aim of this group of amendments, which is to convert the automatic voiding provisions in Clause 13 into powers to void. Further amendments in this group then seek consistency with associated provisions in the Bill. I thank the noble Lords, Lord Vaizey and Lord Hodgson, for bringing together this grouping. I will first address the purpose of the automatic voiding provisions, before turning to the amendments in detail.

Notifiable acquisitions are those that occur within the most sensitive areas of the economy—sensitive enough that the Secretary of State judges that he must be notified and must clear an acquisition to proceed before it can complete. As such, it is essential that there are clear incentives for compliance with the regime and that any national security risks arising from these sensitive acquisitions being completed without approval are mitigated, as far as possible. Noble Lords present will understand that any Government’s first preference in legislating to create requirements on persons, particularly where the matters relate to serious issues such as national security, is that compliance with such requirements is incentivised and that we do not merely rest on the threat of weighty enforcement.

The automatic voiding provisions in Clause 13(1) mean that there is no way around these requirements and that parties who wish to evade the requirements are unable to complete acquisitions which must be approved by the Secretary of State and have not been. This ensures that the regime mitigates a wealth of national security risks, without the Secretary of State ever being engaged. It is efficient and effective government, and a key tool in protecting our national security.

However, voiding is not a sanction; it is instead the logical implication of not complying with a mandatory regime that concerns only the most sensitive acquisitions. Clause 13(3) ensures that any notifiable acquisition in respect of which a final order has been made, which has been completed otherwise than in accordance with the final order, is also void.

I understand that the voiding provisions have raised some concerns, as outlined by my noble friend Lord Vaizey, that the unaware may be unduly or adversely affected, which would otherwise lead to significant costs for parties who are affected by voiding. I hope that I can offer them the following reassurance. First, those who have been materially affected by the voiding of an acquisition, including sellers and third parties, not just acquirers, may apply for retrospective validation of the acquisition using Clause 16. If a valid and complete application is received, the Secretary of State will have up to 30 working days to decide whether to issue a call-in notice. If he does not issue a call-in notice, for example if there are no national security risks involved, he must validate the acquisition retrospectively. The impact of retrospective validation is that the notifiable acquisition is to be treated as having been approved by the Secretary of State and is, accordingly, not void. Anyone materially affected by the voiding, including those unaware of the requirements, is therefore able to secure retrospective validation, such that the acquisition was always valid in law.

Secondly, there are concerns around what happens if a significant purchase of shares in a publicly listed company is caught by the provision. Usually, for significant purchases, parties are advised by a law firm of high repute. I can also assure the Committee that, where the acquisition involves a takeover, BEIS works closely with the Takeover Panel to ensure the there are no issues in the interaction with the takeover code.

Thirdly, there are murmurings that the voiding provisions might create uncertainty. I do not think that Clause 13 could be clearer and more succinct about the effects of not obtaining the approval of the Secretary of State before completing a notifiable acquisition.

Let me now respond to the heart of the proposition of the amendments in this grouping—that voiding should be exercisable as a power by the Secretary of State, rather than being automatic. I am afraid this raises a number of issues. It is, first, unclear why and when the power to void would be exercised. The Secretary of State is already able to order the unwinding or divesting of acquisitions, following assessment as part of the final order. Why would he need to void the acquisition if it can simply be unwound or divested? Would it be intended that the Secretary of State would decide whether to void the acquisition prior to the assessment? If so, on what basis would he make that decision?

Gas Boilers and Heaters: Replacement Programme

Debate between Lord Callanan and Lord Grantchester

Tuesday 12th January 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is right. We have a number of incentive schemes. I referred to the ECO scheme and the green homes grant scheme. We want to be one of the world leaders in this field and we are working with manufacturers to advance the technology to bring it down to affordable levels to enable its wide- spread use in the UK.

[Lord Grantchester (Lab) [V]]

The recent energy White Paper stated that

“we will assess the case for encouraging, or requiring, new gas boilers to be readily convertible to hydrogen”.

Having recently experienced on 30 December the seizing up of a system boiler, I would like to know what assessment is needed for the Government to require hydrogen-ready boilers to be quoted alongside the conventional, and for the price premium for hydrogen-ready to be reduced progressively towards a conventional price if the consumer or bill payer is unaware of the requirement for all new boilers to be hydrogen-ready by 2025. Is this in the heat and building strategy that the Government are still preparing to publish?

[Lord Callanan (Con)]

We are supporting the development of prototype hydrogen-ready boilers that are not available at the moment through the Hy4Heat programme, which is due to conclude this year. Subject to its findings we plan to consult later this year to seek views from stakeholders on the role that hydrogen-ready appliances will play in the transition to net zero.

Green Homes Grant Scheme

Debate between Lord Callanan and Lord Grantchester

Wednesday 6th January 2021 Lords Chamber

[Lord Callanan (Con)]

We announced the extension of the scheme until March 2022, as I am sure the noble Lord is aware. In the 2020 spending review, the Chancellor allocated over £1 billion to make public sector buildings and homes greener, including £320 million for this scheme in 2021-22.

[Lord Grantchester (Lab)]

With the initial plan for the Green Homes Grant to last only nine months now extended a further 12 months until March 2022, there must be doubts about the ambition of this scheme against the long-term challenge of making homes more energy efficient. With only 5.6% of applicants having had their applications approved and with only a single household receiving a voucher, can the Minister tell the House what success looks like for this scheme? For example, what maintenance of a set maximum response time for applicants will be achieved and how many of the 19 million homes EPC-rated D or worse will be improved through the scheme?

[Lord Callanan (Con)]

The noble Lord asks a lot of questions. I think his figures are incorrect. We had 58,000 applications and have issued almost 11,000 vouchers to those applicants. Another 11,000 are being processed and 35,000 have gone back to the applicants for further information or clarification of their quotes, et cetera. We keep all elements of the scheme under review. We announced the extension to March 2022 in response to the feedback we received from the noble Lord and others.

Climate Change

Debate between Lord Callanan and Lord Grantchester

Monday 14th December 2020 Lords Chamber

[Lord Callanan (Con)]

No, I do not agree with the noble Baroness. The oil and gas industry employs tens if not hundreds of thousands of people. It recognises the challenge, and the Government need to work with that to help it in the transition.

[Lord Grantchester (Lab)]

Given the Committee on Climate Change’s recommended target of a 78% emissions cut by 2035 in its report on the sixth carbon budget, can the Minister confirm whether the Government will now raise their national determined contribution commitment to COP 26 policies to align with that?

[Lord Callanan (Con)]

I admire the noble Lord’s ambitions but we only announced the NDC two weeks ago, so we are not about to revise it already.

Carbon-neutral Homes

Debate between Lord Callanan and Lord Grantchester

Thursday 10th December 2020 Lords Chamber

[Lord Grantchester (Lab) [V]]

Point 7 in this scatter-gun 10-point environment plan identifies another two missing strategies: the national retrofit strategy and the fuel poverty strategy. What assessment have the Government made of the “help to fix” interest-free loan scheme proposed by the Chartered Institute of Building to deliver the future homes standard, and will the fuel poverty strategy still be forthcoming before the end of the year?

[Lord Callanan (Con)]

We are committed to reviewing the decent homes standard for social housing around energy performance and decarbonisation. We will be consulting on further regulations for homeowners in 2021.

Fossil Fuels: Business

Debate between Lord Callanan and Lord Grantchester

Thursday 19th November 2020 Lords Chamber

[Lord Callanan (Con)]

As I just said in answer to a previous questioner, the North Sea is vital to our economy and the transition. We will work closely with those companies, and already have some world-leading commitments from many on how they are taking forward the decarbonisation agenda.

[Lord Grantchester (Lab)]

My Lords, now in its fourth year of monitoring, the Transition Pathway Initiative reports that companies make progress rather slowly and that only 18% are aligned with even the benchmark of below 2 degrees. It has also reported that climate science dictates that the pathway matters, not just the endpoint. Can the Minister explain why, in the scatter-gun 10-point environment plan, there is no mention of the oil and gas sector deal promised in the Conservative Party manifesto? It is meaningless without another of the missing strategy frameworks—the heat strategy.

COP 26

Debate between Lord Callanan and Lord Grantchester

Wednesday 18th November 2020 Lords Chamber

[Lord Callanan (Con)]

Solar PV has made immense progress in this country and we are looking to see how we can build on that further. Onshore wind has, of course, been controversial in some cases, but with existing turbines it has proved to be successful. The main gains to be made, however, are through offshore wind, the costs of which have fallen dramatically.

[Lord Grantchester (Lab)]

My Lords, under the Paris Agreement, the nationally determined contributions outlining the UK’s commitment to reduce greenhouse gas emissions have focused on announcements to end the sale of new diesel and petrol cars by 2030. However, can the Minister explain how the scatter-gun approach of the 10-point plan will lead to effective behavioural change without a comprehensive transport strategy within an overall energy White Paper—both of which have yet to be published?

[Lord Callanan (Con)]

Well, the energy White Paper is forthcoming shortly; the noble Lord will have to have a little bit of patience on that. I think we have a Private Notice Question on the 10-point plan tomorrow, so that might be a more appropriate time to debate these matters.

Clean Growth Fund

Debate between Lord Callanan and Lord Grantchester

Wednesday 28th October 2020 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Baroness that there are tremendous opportunities, but we have a number of other government funds outside of the one that we are discussing today. For instance, the Green Homes Grant scheme has a training element within it, with several million pounds of grants allocated to training providers to provide jobs in exactly the sector that she mentions.

[Lord Grantchester (Lab)]

The managing partner of the Clean Growth Fund, Beverley Gower-Jones, has said that the fund will hopefully invest in two companies before the end of the year. This is from among hundreds of applications. Can the Minister explain how the aim of only two companies is reflective of the UK’s bold climate ambitions? How will the taxpayer share in any return and when might that opportunity materialise?

[Lord Callanan (Con)]

That is two companies this financial year; a number of other companies are in the pipeline. I am sure that the noble Lord would agree that it is proper that the fund manager does the appropriate due diligence to check that the money is well spent and invested properly. There have been 400 expressions of interest and the duration of the fund is over 10 years. It is a commercially driven fund and we hope to get our money back at the end of the day.

World Energy Outlook 2020

Debate between Lord Callanan and Lord Grantchester

Tuesday 20th October 2020 Lords Chamber

[Lord Callanan (Con)]

Indeed there is—and we have taken a leadership role by setting our 2050 net-zero targets, by setting a phase-out date for petrol and diesel vehicles, and by introducing policies to incentivise the electric vehicle market. Accelerating the clean energy transition globally is the focus of our work going up to COP 26.

[Lord Grantchester (Lab)]

My Lords, the 2020 report shows above all that renewables will be integral to the future energy mix that will power modern economies. Yet, under this Government, clean energy investment plummeted by 56% in 2017 as a result of cuts to various renewables schemes, and it has fallen each year since. Can the Minister confirm what urgent steps the Government will take to promote clean energy investment? In particular, will the continually delayed national infrastructure strategy contain strong policies in this regard?

[Lord Callanan (Con)]

Well, the Government’s policies towards clean energy investment have been a resounding success. We are seeing record levels of deployment and the costs of clean energy are falling dramatically—we will see that during the next contracts for difference round next year—but, of course, we keep all these things under review.

COP 26: Sponsors

Debate between Lord Callanan and Lord Grantchester

Tuesday 6th October 2020 Lords Chamber

[Lord Callanan (Con)]

We will be closely studying and monitoring companies that come forward for these sponsorship opportunities, which will favour taxpayers’ money—that is the ultimate objective. We will study their plans carefully and monitor them as they progress.

[Lord Grantchester (Lab)]

According to overnight reports, the Government are planning for all 30 million homes in the UK to be powered by gusts of wind from offshore wind installations. The Government have always maintained that they stay technology-neutral in their encouragement of renewable energy sources. Yet the Conservative Party has advised that the sun does not always shine brightly, nor the wind blow consistently. Can the Minister confirm whether the Government are now picking winners and losers among green technologies and whether this will be reflected at COP 26 in its sponsors?

[Lord Callanan (Con)]

No, we are not picking winners. We always examine a range of different technologies and we are backing a range of different technologies. The contract for difference auctions will not discriminate between different technologies and we will keep them all under constant review.

Energy White Paper

Debate between Lord Callanan and Lord Grantchester

Monday 28th September 2020 Lords Chamber

[Lord Callanan (Con)]

The White Paper will look at the whole system of energy within the UK as part of our commitment to net-zero carbon emissions by 2050. I reaffirm the key role that nuclear will play as part of that future energy mix. I can tell the noble Lord that we will respond to the RAB consultation in due course.

[Lord Grantchester (Lab) [V]]

With this long-overdue White Paper, the Government have said that they will

“publish decarbonisation plans for key sectors such as agriculture and industry as part of its green agenda in the run up to COP26.”

Can the Minister confirm that a greater number of these plans will be published on the same day as the energy White Paper to demonstrate the Government’s joined-up approach, so needed to tackle the climate emergency?

[Lord Callanan (Con)]

The noble Lord is right to point out that intensive work is going on in all those areas. I cannot confirm that those documents will be published at exactly the same time.

Oil and Gas Industry

Debate between Lord Callanan and Lord Grantchester

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

The noble Lord is consistent in advocating for the hydrogen sector, and it is true that the oil and gas sector has an important contribution to make to the UK’s energy transition. Its world-class supply chain has many of the essential skills and capabilities to support emerging technologies such as hydrogen and carbon capture and storage. The noble Lord will be aware that we launched the Hydrogen Advisory Council on 20 July to help inform the development of a UK hydrogen strategy, which we intend to publish early next year.

[Lord Grantchester (Lab)]

The Energy Minister in the other place has said that an oil and gas sector deal will be critically important for the sector as it seeks to recover from the current crisis. There is some confusion over this, as we still know so very little. Can the Minister confirm that any oil and gas sector deal will comply with the UK’s domestic and international climate change commitments and include fully funded programmes to transfer skills into clean industries? Is this sector deal transforming into the North Sea transition deal?

[Lord Callanan (Con) [V]]

We are currently awaiting proposals from the industry and we are committed to working closely with it; it has a key role to play. We will, of course, be consistent with our international obligations.

Maritime Industry

Debate between Lord Callanan and Lord Grantchester

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

The ingenuity with which noble Lords extend these subjects far and wide never ceases to impress me, but the Question is on maritime emissions. The noble Baroness makes an important point about emissions from aircraft, which I am sure is duly noted.

[Lord Grantchester (Lab)]

The Government have repeatedly been asked to plug the gap of the exclusion of international aviation and shipping from the provisions of the Climate Change Act. In July, reports hinted that—at last—it was the Government’s intention to add shipping to its net-zero target but not until 2023. To take the question of the noble Baroness, Lady Boycott, a little further, I ask the Minister to explain the delay—especially after the Committee on Climate Change called for shipping to be formally included in the UK’s climate targets under the carbon budget?

Energy: Hydrogen

Debate between Lord Callanan and Lord Grantchester

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is entirely correct. We are planning to publish a heat and buildings strategy in due course, setting out the immediate actions we will take. We are already working with Baxi and Worcester Bosch, the companies she mentioned, on hydrogen-ready boilers. These have been developed under a £25 million pot of funding, which BEIS provided.

[Lord Grantchester (Lab)]

Hydrogen in transport is key to unlocking its wider use across the economy; there are some relatively quick and easy wins. The renewable transport fuel obligation already exists. Have the Government progressed plans to extend the RTFO guidance to include both green and blue hydrogen as vehicle fuels, with legislative changes to encourage the supply chain necessary to deploy hydrogen bus and train fleets?

[Lord Callanan (Con)]

We are closely examining all these matters. The noble Lord makes a good point and these matters will be addressed in the hydrogen strategy, when it is published in due course.

Renewable Energy

Debate between Lord Callanan and Lord Grantchester

Tuesday 15th September 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Lord might want to re-ask his question on hydrotherapy to my noble friend Lord Bethell, who is answering the next Question. We acknowledge the valuable contribution of hydropower to the UK energy mix over many decades. Most hydropower capacity was of course installed in Scotland last century, with smaller amounts in Wales and England. Most of these installations are still operating and still successful. They account for almost 2% of total electricity generation.

[Lord Grantchester (Lab)]

This important report challenges the Government to raise their ambitions to meet the climate emergency and stimulate a green recovery. As the Minister said, renewables accounted for a record 47% of generation in the first quarter of 2020. What impediments does he foresee to meeting the recommendation that 65% of UK electricity should be delivered using renewable energy sources by 2030? How can they be overcome?

[Lord Callanan (Con)]

As the noble Lord said, we have a tremendous record in deployment of renewables. Renewable capacity in the UK has gone from less than 9 gigawatts at the start of 2010 to almost 47 gigawatts at the start of 2020. We certainly hope to increase that rapid deployment.

Committee on Climate Change: Progress Report

Debate between Lord Callanan and Lord Grantchester

Wednesday 1st July 2020 Lords Chamber

[Lord Grantchester (Lab) [V]]

A key challenge contained in this excellent report is to decarbonise heat and reduce demand through home efficiency measures. What plans and discussions has the Minister had with his colleagues in the Treasury to ensure that households and businesses installing energy-efficient and low-carbon heating are materially better off, in addition to reducing their emissions?

[Lord Callanan]

The Chancellor will be setting out our financial policies in this area when he makes his Statement but, as I said in an earlier answer, we will be publishing a heat and building strategy in due course, which will address many of these issues. The noble Lord’s point is well made.

Oil: Changes in Global Markets

Debate between Lord Callanan and Lord Grantchester

Thursday 21st May 2020 Lords Chamber

[Lord Callanan]

The noble Lord makes an extremely good and valid point. The Foreign Office and the Department for International Development will be closely monitoring the situation. We have a close affinity with people in Nigeria and we will do all that we can to help them; he will be aware of our very large aid budget in that country.

[Lord Grantchester (Lab)]

The one constant in the oil market is increasing volatility and falling demand as the world economy has to move towards zero-carbon systems. Realising this, large oil companies will need to accelerate zero-carbon plans to diversify their portfolios away from oil without causing redundancies. Given the climate challenge, what are Her Majesty’s Government now doing to encourage this?

[Lord Callanan]

The noble Lord is right. Companies across all sectors will be vital in our work to meet our 2050 net-zero targets. We want all business leaders in all sectors to make ambitious emissions reduction plans to help meet the commitments that we have set out under the Paris agreement.