Lord Marland
Main Page: Lord Marland (Conservative - Life peer)
Lord Marland
That this House takes note of the future of energy policy in the light of the climate change challenge.
Lord Marland
My Lords, I should like to thank the House and all noble Lords in advance for joining this debate today. I should also like to thank the noble Lord, Lord Smith of Finsbury, for giving the debate its name.
The future of energy policy is a question absolutely at the heart of the coalition. Our central theme is twofold: energy security and the low-carbon economy, with value for money for the taxpayer. For years we have relied on the bounty of North Sea oil and not invested in the new energy sources that we will need in the future, or invested the proceeds of North Sea oil to meet our future demands. That must change, and we need to get on with it fast.
I have said in the House many times that the delivery of energy supply transcends many government periods. It is incumbent on us to be part of a broad coalition for the benefit of Britain. Later this year, we in this House will have it in our power to provide a clear pathway to the future, with legislation in the form of the next energy Bill to make that happen.
Since May, many noble Lords have asked recurring questions. Are we serious about nuclear? Will the first cut be CCS? Are we serious about the growth agenda? There are some who think that we should not be serious about the green agenda. Let me emphatically provide noble Lords with the coalition’s response. On Monday 18 October, we announced the key government deliverables that will help pave the way for the building of our new nuclear power. Following the spending review announcement of up to £1 billion for the first CCS demonstration project, last week I started the process of detailed negotiations with Scottish Power on its proposals for that project.
My Lords, whether you like it or not, we intend to be the greenest Government ever. This will require showing leadership and setting an example. Therefore, we will reduce the carbon footprint of central government by 10 per cent this year. Our green agenda will launch the green deal, implement the green investment bank and—through RHI and FITs—encourage renewable development. All of those equal moving to a secure energy supply, new jobs and vital investment.
However, we must do more, and we will. It has been said that we are not providing enough stability to the energy market, so we are pursuing an ambitious energy market reform programme that will support the delivery of a secure, low-carbon, affordable energy mix for the 2020s and beyond. A framework to give a solid carbon price is the first step in providing the incentives for the investment that we so urgently need. Last week, 144 licences were granted to extract oil and gas from UK waters in the 26th licensing round.
My Lords, I could go on, and I will. We have already extended the carbon emissions reduction target—CERT—whereby 3.5 million more homes will be lagged. We have also introduced proposals to accelerate smart meter rollout by comparison with previously published targets. Our wind, biomass, wave and tidal resources make us a natural world leader for renewable energy, but Britain has not realised its potential. We have the highest tidal reach, 40 per cent of Europe’s wind and 11,000 miles of coastline to take advantage of. That is why we committed £200 million in funding for low-carbon technologies, including offshore wind technology. We are providing up to £60 million to meet the needs of offshore wind infrastructure at our ports. We have boosted the UK’s gas storage capability by 15 per cent already, by giving consent for a new facility in Lincolnshire. The renewable heat incentive is the first scheme to provide long-term support for renewable heat technologies and will drive a more than tenfold increase in renewable heat in the UK over the coming decade.
Even with the most laborious of economic circumstances in which to start governing, we have shown that we are open for business and there is a clear pathway. Investors now have certainty about the environment in which they are investing. We must look to build a new kind of economy to ensure global competitiveness and protect ourselves from price shocks.
On our nuclear legacy, public safety is paramount. The funding of nuclear decommissioning will therefore increase by £2.5 billion in 2014-15, so that we really get to grips with our waste legacy issues. I have also commissioned a strategy on how we can further develop our expertise in waste management in the nuclear field.
This debate, though, is our opportunity as the Government to hear your Lordships’ views. We have in this House the greatest brains and experience on this subject covering all sides of the spectrum. All these views will be respected and I hope that I can count on your support to deliver a secure energy supply for generations to come.