Planning and Infrastructure Bill

Debate between Lord Khan of Burnley and Lord Hunt of Kings Heath

Committee stage
Thursday 24th July 2025 Lords Chamber

[Lord Khan of Burnley (Lab)]

My Lords, I thank my noble friend Lord Hunt of King’s Heath for tabling these amendments, which relate to carbon capture and storage designation. Amendment 51 would amend the Planning Act 2008 to enable the designation of

“carbon dioxide spur pipelines and carbon capture equipment … as Nationally Significant Infrastructure Projects”.

As my noble friend knows well from his time as Minister of State at the Department for Energy Security and Net Zero, this Government recognise the pivotal role of carbon capture and storage in securing growth, achieving their climate goals and transitioning to a low-carbon economy. That is why we have committed to substantial investment to support the development and deployment of carbon capture and storage across the UK.

However, although the Government are committed to the deployment of carbon capture, transport and storage, this amendment could lead to confusion for developers, as it would, in effect, provide a choice for developers in consenting routes. Onshore electricity generating stations with a capacity exceeding 50 megawatts, including those using carbon capture technology, are classified as NSIPs under the Planning Act 2008 and require a development consent order—a DCO. Onshore carbon dioxide pipelines over 16.093 kilometres in length also classify as NSIPs and require a DCO. However, smaller pipelines and industrial carbon capture facilities sit outside the NSIP regime, and applications for development are determined by the local planning authorities under the Town and Country Planning Act 1990. This is consistent with the consenting process for pipelines and industrial facilities more broadly and, as far as we are aware, experience from the planning process for the first carbon capture and transport projects has not identified significant issues for projects determined by the local planning authorities thus far.

Nevertheless, carbon capture, transport and storage remain nascent sectors in the UK, and officials in my department are working closely with the Department for Energy Security and Net Zero, and the Department for Environment, Food and Rural Affairs, to ensure that the full range of consenting and permitting regimes for carbon capture, transport and storage remain effective and appropriate.

Amendment 91 seeks to amend the Pipe-Lines Act 1962 to disapply the requirement for special parliamentary procedure in relation to pipelines or lengths of pipeline that are to be repurposed for the conveyance of carbon dioxide. It should be noted that, as drafted, the amendment would not legally achieve its intended purpose as a relevant subsection of Section 12A allows a Secretary of State to revoke a compulsory rights order rather than grant one.

Nevertheless, even with that to be addressed, and while I certainly sympathise with the spirit of the amendment, it would not be practical. Section 12A of the Pipe-Lines Act allows a Secretary of State to make an order for the compulsory acquisition of rights over land that are necessary for the conversion and use of a pipeline to convey carbon dioxide. The making of such an order is subject to special parliamentary procedure.

The Government recognise that it can be more efficient to repurpose existing pipelines for use in a carbon capture, transport and storage project compared with building new pipeline infrastructure. Where the pipeline infrastructure is considered suitable for reuse in this way, the Government support this. For example, we have recently legislated to remove a tax barrier that oil and gas companies have told us would prevent the transfer and repurposing of suitable assets from use in oil and gas, such as pipelines and platforms for use in carbon dioxide, transport and storage.

However, as the works involved in the repurposing of pipelines for the conveyance of carbon dioxide could impact local communities and landowners, enabling the compulsory acquisition of rights over land to remain subject to a special parliamentary procedure would ensure proper scrutiny of such proposals.

The Government support the repurposing of onshore and offshore infrastructure for use in carbon capture, transport and storage projects as part of the UK’s drive to net zero. We are already seeing this in practice, where the HyNet carbon capture and storage cluster in the north-west will be served by a combination of new and existing infrastructure. We are committed to ensuring that the right support and mechanisms are in place to enable the repurposing of suitable onshore and offshore infrastructure, and I hope with this reassurance my friend will feel able to withdraw his amendment.

Before I sit down, I want to refer to the important points made by the noble Lord, Lord Grayling, which I take seriously. I note that consideration of Part 3 and wider environmental issues will take place after the summer. We will consider his points over the summer, as requested. The points the noble Lord is making are mainly being debated in September, so we can pick them up in response to similar amendments, including in relation to Part 3. For the reasons I have just outlined, I ask my noble friend to withdraw his amendment.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to all noble Lords who have taken part. I thought the intervention from the noble Lord, Lord Grayling, was very interesting. I very much take his point about the precautionary principle. A degree of proportionality is required by our regulators in the way they operate. One of the concerns that I and a number of noble Lords have is whether the current regulators are up for the kind of dynamic change we need in the way they perform, and that is really why there are concerns around Part 3.

There are concerns from people very concerned about nature protection, which I well understand. Equally, my concern is that we are putting a hell of a lot of responsibility on Natural England in relation to EDPs. The way I read it, this Bill is largely written around housing requirements, and I can see how EDPs can apply to housing, particularly if you have a number of housing developments within a particular area. A pretty unknown quantity is how this is going to apply to major infrastructure projects as well—but I take the noble Lord’s point.

The noble Lord, Lord Jamieson, is absolutely right. We are taking a punt on CCUS. I am confident about it. His Government continued the work in this area. I think we see in Norway enough to suggest that we can pull this off. The potential for the UK here is enormous, in terms of both our approach to climate change and decarbonisation and the huge export potential.

On the wording of the Bill, I have checked the Planning Act, and in Section 14 there is an order-making power for the Secretary of State that I think can deal with the flexibilities around the length of the pipeline. I should say, as I took the energy bits of that Act through your Lordships’ House, that I feel a particular affinity towards that perfectly formed legislation.

I am grateful to the Minister, because clearly he and his officials are having a look at this. I noted that he did not think much of my Amendment 91, so I will have to go away and reflect on that. I think his main argument was “We don’t really think this is a problem, but we will have a look at it”. My intelligence is that CCUS developers think it could be a problem. If we can iron out some of these things, which are really not mega-principal, that would be very helpful. Having said that, I beg leave to withdraw the amendment.