Gas-fired Power Stations

Lord Hannan of Kingsclere Excerpts

Thursday 14th March 2024 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is right in that the number of larger generators on the system is falling, with the elimination later this year of coal generation —we will have phased it out completely. He is right, again, that the gas generators that we are talking about—which will be some refurbished existing plants, but also a few new ones—will be able to take part in the capacity market auctions. These are essentially auctions for back-up capacity that may be required in certain scenarios.

[Lord Hannan of Kingsclere (Con)]

My Lords, I wonder if my noble friend the Minister can enlarge slightly on the question posed to him by the noble Baroness on the Labour Front Bench about hydrogen adaptation. I very much welcome the Statement; it seems to me important to tackle this issue in the proportionate, affordable and measured way, rather than in a millenarian spirit. Can my noble friend the Minister outline a little bit of what the Government’s hydrogen strategy is as part of that solution?

[Lord Callanan (Con)]

I thank my noble friend for the question; I am very happy to do that. We are progressing a very advanced hydrogen strategy, which I will try to summarise in a few words. We let the first 11 electrolytic hydrogen contracts before Christmas, offering £2.1 billion-worth of long-term support for the development of electrolytic hydrogen. We have a few blue hydrogen projects that are currently taking part in the CCUS negotiations. We are currently putting in place business models for a transportation and storage system and hope to progress that later this year, as well as the first couple of storage projects. We have a very ambitious hydrogen project; we think that hydrogen has a very important role to play in the net-zero scenario, both in terms of long-term energy storage and in decarbonising some elements of industry that are particularly hard to decarbonise. We should of course electrify where we can, but we will still need hydrogen power to generate power in some of those sectors.

Decarbonisation

Lord Hannan of Kingsclere Excerpts

Thursday 13th July 2023 Lords Chamber

[Lord Callanan (Con)]

The consultation only closed at the end of last month, so the noble Baroness will need to give us a bit of time to analyse the hundreds of responses that we received. It is a complicated issue, and we of course understand the desire for quicker action, but there is a whole range of factors to be taken into account. We have to be very careful not to indulge in some form of green protectionism, where we incentivise lower-standard products against others that are better performing. Across a whole range of sectors and procurement areas, it is a complicated issue that deserves to be studied properly.

[Lord Hannan of Kingsclere (Con)]

My Lords, the essence of climate change is that it is global and does not recognise borders. It is very disappointing that we have so many calls for responses that are essentially protectionist, introverted and selfish. Will my noble friend confirm that, just because our allies in the United States—and indeed in the European Union—are going down the road towards protectionism, carbon adjustment taxes and so on, this country will not disadvantage itself or raise the price of the green technologies that we need to combat this global problem?

[Lord Callanan (Con)]

My noble friend has been steadfast for many years in his support for free trade—a cause that I manifestly agree with. But it is a complicated issue. It looks as though the EU and US are going down the road of carbon adjustment mechanism taxes, but, as I said in my Answer to the noble Baroness, Lady Blackstone, it is a complicated issue. For instance, do we want to incentivise the installation of poorer-quality solar panels that may be constructed with lower carbon intensity, or better-quality solar panels? That is one example of millions that I could give.

Retained EU Law (Revocation and Reform) Bill

Lord Hannan of Kingsclere Excerpts

Report stage
Monday 15th May 2023 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

My Lords, I am very struck by the change in tone in this House. For years, we were told that the EU was an association of nations and that it was some abstruse, recondite obsession of Eurosceptics to claim otherwise; now we are told that it is a massive Jenga set and that, if we take anything out, the whole structure will come tumbling down because it is so deeply embedded in our domestic law. For years, we were told that we had extraordinary Rolls-Royce civil servants and that we were the best country at implementing everything; now it is suddenly beyond them to repeal the same things within a reasonable deadline. For years, we were told that parliamentary sovereignty was a 19th-century hang-up of interest only to eccentrics; suddenly—I welcome this—it has become a deep concern on both sides of the Chamber.

In accepting the previous debates in this House, the Government have done their best to reach a balance. They must implement the decision and have done so in a way that takes account of the objections raised on all sides by your Lordships. They deserve rather more recognition than they are getting this afternoon.

[Lord Collins of Highbury (Lab)]

My Lords, to pick up that point, we have heard in every debate a recognition that the Government have moved, which has been very important and welcome.

Some people want to continue a debate about Brexit. These amendments are not about that. That is why I totally support the noble Lords, Lord Hamilton and Lord Hodgson, who have previously participated in debates in this House on the nature of secondary legislation and how it has increased, and how it empowers the Executive. This is a unique situation; we have established the principle in the first group but, if we are to make changes—revise, reform and revoke—how will we ensure that the people with the responsibility to legislate have the responsibility properly to scrutinise and amend if necessary? People jump up and down and ask whether this is the right place to have a debate about secondary legislation. I am not too bothered about that. I am concerned about outcomes. Parliament should have the opportunity properly to scrutinise the changes and powers in this legislation. The noble Lord, Lord Lisvane, and the noble and learned Lord, Lord Hope, have offered us a process in this Bill for those changes to be made.

The noble Lord, Lord Hodgson, has pushed me on numerous occasions, particularly when we debated his committee’s report, on whether a future Government would adopt this for statutory instruments. I cannot make that commitment, but I know that, if we adopt Amendment 76, it will establish a practice that people might see is beneficial for future arrangements. We can have a win-win situation. This debate is not about Brexit. It is about who has responsibility to legislate in this country. It is not the Government; it is our duty. That is why we should support Amendments 76 and 15.

Green Investment

Lord Hannan of Kingsclere Excerpts

Tuesday 7th March 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Earl raises important points with regard to trade negotiations. I am not familiar with the details so I will have to write to him.

[Lord Hannan of Kingsclere (Con)]

My Lords, there is a grotesque misnomer here. The Inflation Reduction Act will in fact raise trade barriers, push up prices and thus increase inflation. Worst of all, like the Smoot-Hawley Tariff Act, it is likely to set off a series of beggar-my-neighbour retaliatory measures, not least from the European Union. Will my noble friend the Minister confirm that this country remains wedded to the principles of free trade and that, if others put rocks in their harbours, we will not retaliate by putting rocks in our harbours?

[Lord Callanan (Con)]

My noble friend makes an important point. I know how committed he is to and how hard he works for the principle of international free trade, which we totally support. We want to engage with the US on these matters but we need to convince it and, of course, the EU that free, fair and open trade benefits everyone. That is the key point that we need to put across to them.