(2 weeks, 4 days ago)
Lords ChamberMy Lords, I declare my interests as a chief engineer working for AtkinsRéalis, and as co-chair of Legislators for Nuclear. This group of amendments gets to the heart of some of the issues with this Bill. It is important that we get Britain building again, not least to reverse the long stagnation in the UK economy since 2008. The Chancellor tells us that growth is the problem, and investment is the solution, which I wholeheartedly agree with.
There is a significant risk that Part 3, the centrepiece of this Bill, is not going to deliver for complex infrastructure. The reasons are straightforward: Part 3 may work for a known issue such as nutrient neutrality for a housing development, where developers can club together and pay into a fund. However, for infrastructure developments, habitat issues will not be known in advance, and there will not be time for developers to agree and implement an EDP before consent. Therefore, they are left with a couple of options: they can try to twin-track, which could risk adding even more bureaucracy to the process, or go the existing route. We all know the issues with the existing route—bat tunnels and fish discos have been well-publicised—but less well known are the years-long delays to offshore windfarms due to issues with compensation for environmental impacts and the like.
For example, we have had multi-year delays to the trio of Norfolk offshore wind projects—Norfolk Vanguard East, Norfolk Vanguard West and Norfolk Boreas—due to issues around compensation for an undersea worm, Sabellaria reef, even in areas where it was not present. That is not to mention cutting the size by around 40% and the generation potential of East Anglia ONE North windfarm due to habitat issues with red-throated diver, despite assessments putting the impact at one bird death per year.
Ultimately, if the Government want to meet their ambitious targets for clean energy and growth, they will need an approach that delivers for infrastructure, as well as for housing. For energy, we have managed to build approximately 4 gigawatts of new capacity per year over the last three years. To meet the Government’s clean power target, that will have to increase to at least 15 gigawatts per year between now and 2030—from the Government’s own data—so that is a quadrupling of our current build rate. A lot of that is offshore wind, and I should be clear from my examples that this acceleration in build rates simply will not happen under the current regulatory regime.
At the foundation of all this are the habitats regulations, which are of course very important for the protection of nature in this country but which have become overly burdensome due to the impacts of case law over the years and an overly precautionary approach by the regulator in some cases. Amendment 350 in the name of the noble Lord, Lord Hunt of Kings Heath, proposes some minor changes to steer the interpretation of the habitats regulations back to their original intent to protect nature but to strike a balance. This has been developed in broad consultation with planning lawyers and ecologists who have decades of experience in taking large projects through the planning system.
The amendment provides a menu of options for the Government. One of those is defining a science-led approach, which is important because too often the statutory nature conservation bodies require developers to provide evidence against hypothetical rather than real risks. I am vice-chair of the POST board—the Parliamentary Office of Science and Technology. POST is the link between the scientific research community and Parliament, and we work to ensure a science-led approach to lawmaking. This is an area where it is vital that we ensure that we take a scientifically rigorous approach.
The second part of the amendment would overturn some aspects of case law to get to a more proportionate approach, stating that de minimis effects cannot produce an adverse effect; that mitigation measures can be taken into account when deciding whether a proposed project is likely to have a significant effect; that there is no need to redo a habitats assessment for approval of conditions under a consent that was originally subject to a habitats assessment; and, finally, that compensation measures need not address the same type or scale of impact as the harm caused nor be in place before impact occurs, which restates existing law. I will leave the noble Lord, Lord Hunt, to fill in the detail.
The package of measures in Amendment 350 is a pragmatic and proportionate means of restoring some balance to a system that is currently making it extremely difficult to build infrastructure in the UK. One of the key benefits of what we are proposing is that it would have immediate benefits for a range of projects around the UK. It does not need additional regulations to be developed and raised nor EDPs to be developed; the impact is there straight away.
Amendment 346DA in my name is in the same vein and attacks the problem from a different angle—again, I thank the noble Lord, Lord Hunt of Kings Heath, for his support. It seeks to recognise that there are perhaps narrowly defined classes of projects which should be able to cut through the usual process. For example, we are building offshore wind, which is vital to our energy security and therefore to our national security. Is it really acceptable that these developments have been held up for years because of delays to compensatory regimes under the habitats regulations? Can we really afford to delay infrastructure that is key for the Government’s net-zero target, for energy security and therefore national security in this way? I suggest not, and that there could be certain classes of project, those related to national security and energy security, where the Secretary of State should have additional powers to allow projects to proceed and to work to define their own compensatory measures.
Between Amendments 350 and 346DA, we have a package of options for the Government which seek to recognise the issues of Part 3 for infrastructure and ensure that the Bill delivers for growth—I add to this my previous Amendment 46 on regulators. Ultimately, we need to strike a better balance between the impact of infrastructure on the local environment—the micro view—and the benefits of that infrastructure for the nation, whether that is net zero, energy security or economic growth: the macro view.
We have heard some rumblings in the news about a second planning Bill focused on infrastructure. I do not know the truth of that, but my observation is that we cannot wait for another Bill; we simply do not have the time. The Government need to seize the opportunity that the Bill represents and ensure that it delivers for infrastructure, and I restate the immediate benefit that these amendments would have. I beg to move.
My Lords, it is a great pleasure to follow the noble Lord. I thank him for his amendments and for his support of mine. In fact, he very ably summarised my amendments. It is clearly important and good that we are getting back to what the Bill is all about: the growth agenda. As the Explanatory Memorandum and policy background state, we have a huge problem in building the infrastructure that we need to get this country going again and growing again. The Bill is obviously designed to help us do that, particularly through the planning reforms, EDPs and so on. The big question is whether the Bill is sufficiently focused to give us confidence that our regulatory system is not going to prevent the kind of rapid growth that we need. This is where there is some concern.
My Lords, tempting as it is to have a large-scale debate about nuclear energy, I do not think that noble Lords will want that. I broadly understand where the noble Baroness is coming from, and I am sympathetic to the thrust of what she is saying. However, I say to her and to the noble Lord, Lord Blencathra, that nuclear is part of the package. It is the essential baseload. We are going to be very reliant on wind and sun, and the whole thing has to be seen together.
We have this huge potential now. Hinkley Point C is making real progress. A final investment decision has been reached for Sizewell C. The noble Lord, Lord Blencathra, is right about the importance of the appraisal that GBN has undertaken, and government support for Rolls-Royce, and the announcement this week of the agreement with the US, which is twofold. The first point is regulatory alignment, which means, rather like in the pharmaceutical sector, that if one of the major regulators in the US, the UK, or Europe signs off a particular medicine, there is often mutual recognition. Clearly, this is important in meeting this point about reducing the amount of unnecessary bureaucracy in relation to regulation in future. The second point is on the announcement by a number of US companies, particularly from the west coast, who wish to invest in AI and data centres in the UK aligned to advanced modular reactors, which is fantastic news.
On the point made by the noble Lord, Lord Blencathra, I am sure Rolls-Royce is going to be in a very good position, but it has to be open to companies to invite other countries’ reactors as well. You do not want to put all your eggs in one basket in any case. The question then comes back to the issues we have been talking about recently as to whether the regulatory system we have collectively is going to be up to meeting this challenge. I commend a report published yesterday by Britain Remade, whose conference I happened to attend, which caused such offence to my noble friend. It is a very good report about the history of nuclear power development in this country. We had the lead once upon a time. We foolishly threw it away. We have a great chance to get back in at a substantive level, but at the moment it simply costs too much. There are various reasons: there is overspecification—we have heard that before—and there is slow resource-intensive consultation, planning and permitting. We have heard about the issues around some of the environmental protections, and there are various other reasons as well.
I wanted to ask my noble friend this. She knows that there is a Nuclear Regulatory Taskforce. It was set up under the auspices of the Prime Minister and the Chancellor. It gave an interim report in the summer. It is going to come back very soon with a substantive report, but the interim report spoke of,
“fundamental concerns about how regulation operates in practice, with the most prominent being that the system is perceived to be unnecessarily slow, inefficient, and costly”.
On the assumption that this report comes out within the next few weeks, will it be possible to use this Bill on Report as a way of trying to deal with some of the regulatory hurdles? I understand that my noble friend probably cannot answer that, first because the Government have not received the report, and secondly because they will have to consider how to do it, but I just express the hope that we might be able to use this Bill as a vehicle.
Very briefly, I follow on from the point of the noble Lord, Lord Hunt of Kings Heath. I raised the point he just made in a question a week or so back. That is a really important point: to try and join the dots between the work ongoing with the regulatory task force and this Bill, because it is a prime opportunity to make the legislative changes that are required.
I certainly support the intent of the amendments that the noble Baroness put forward. To go back to the announcement on Monday, we are going to need nuclear in many more locations across the UK than the traditional nuclear sites. I chair an organisation called Midlands Nuclear, where we have been undertaking a siting study for where we can locate nuclear across the region in many non-traditional sites—for example, old coal-fired sites and gas sites. That is going to require a new approach to planning: how we take all these reactors forward, and the sheer number of reactors that were talked about in Monday’s announcement. I temper that by saying that, of course, we are going to need energy of all forms to get to net zero: more wind, solar, nuclear and gas storage. I highlighted some of the issues with wind in debate on the previous group of amendments. We need to think about how we do this more broadly in the planning system.
(6 months, 1 week ago)
Lords ChamberNo, my Lords, and I very much regret that the Opposition have withdrawn their support for policies taking us towards net zero, particularly in view of the fact that the noble Baroness, Lady May, took the decision when Prime Minister to legislate for the 2050 net-zero target. It is interesting, in relation to China, that the IEA reckons that 60% of the global expansion in renewable energy between now and 2030 will be in China. As for the noble Lord’s obsession with fossil fuels, the reason that we have these high prices, which the party opposite bequeathed to the country, is the unreliability and volatility of the international gas and oil markets. Getting clean power gives us energy security and much more reliability in prices.
My Lords, I declare my interest in the register. Can the Minister please update the House on the progress his department is making with banning the imports of Russian nuclear fuel? Importantly, when will it be taking those measures, with all the benefits that will bring for not only energy security but national security and our domestic industries?
I am grateful to the noble Lord for raising this question again. He will know that the Government have committed to prevent the import from Russia of nuclear fuels by 2030. We are discussing whether we could bring this forward. I am afraid I cannot give him any more information at the moment, but as soon as a decision is made, I will let him know.
(10 months ago)
Lords ChamberMy Lords, I thank the noble Lord for his response to my amendments. I wanted briefly to clarify something he said in responding to my Amendment 19. He essentially made a link between a clean energy system and price stability, therefore making the argument that “costs” was not required in the objects. But there are of course wide variations in the costs of a clean energy system: there are expensive clean energy systems, and cheaper ones. NESO is developing a wide range of scenarios here. So I argue that we cannot rely purely on making that link—the organisation needs to take costs into account more broadly as well.
I very much take that point. Clearly, my department is cognisant of costs. Much of our discussion with His Majesty’s Treasury on the resources made available obviously takes in those constraints. The point I made earlier is simply that we believe—and we are supported by NESO, the Committee on Climate Change and the OBR—that the best way to secure stable prices in the future is to charge on to clean power net zero.
(10 months ago)
Lords ChamberMy Lords, I think I get the point my noble friend raises. He is absolutely right: new nuclear can bring many high-quality jobs, enhance our skills chain and help us grow the economy. He mentioned Wylfa in particular, and I well understand. He will know that Great British Nuclear has bought Wylfa, which is one of the sites identified in the planning statement in relation to nuclear. We are looking to make our siting policy more flexible to give us more opportunities in the future. We see new nuclear as having a hugely important role to play in our future energy structure.
My Lords, I declare my interests as in the register. As the Minister will be aware, we currently have an issue with dependence on Russian fuel for our nuclear fleet. What progress are the Government making in bringing forward legislation for a near-term ban on Russian fuel imports, with all the attendant benefits for national security, for convincing others to move internationally and for our domestic industries?
My Lords, the noble Lord will know that we have already agreed internationally to go for a 2030 cut-off. I have had correspondence from the noble Lord and I know that others would argue that we should bring it forward, as the US has wanted to do. We are in very serious discussions about that.