British Bioethanol Industry

Debate between Nusrat Ghani and Alex Cunningham

Wednesday 16th January 2019 Westminster Hall

[Ms Ghani]

That is an interesting way of responding to how the business environment is dealing with global issues beyond what the Government may or may not have intended to do, so I do not accept that point.

It is clear that UK producers of bioethanol from wheat have faced challenging market conditions, due in part to high wheat prices following a hot summer, and a low bioethanol price—that may in some way answer the hon. Gentleman’s question. However, it is by no means clear that an E10 mandate would address all the challenges that the UK bioethanol industry has faced. It is also clear that the introduction of E10 is not without barriers, including the need to take into account the concerns of a significant number of owners of vehicles that are not compatible with E10—that point was raised earlier in the debate. To be successful, it is vital that any introduction of E10 is backed by fuel suppliers and consumers alike.

Since its inception, the policy on biofuels in the UK has been complex and not without controversy. Immediately after the renewable transport fuel obligation scheme—RTFO—was set in law in 2007, the Gallagher review into the indirect effects of biofuel production was published. It became clear that to maintain faith in the emissions reductions achieved and to retain consumer buy-in, we would have to address the negative indirect effects of certain biofuels. To reward fuels that may perform worse than the fossil fuels they replace would have undermined the rationale of a scheme designed to reduce greenhouse gas emissions.

It was with those challenges in mind that the Department jointly established a transport energy taskforce with the Low Carbon Vehicle Partnership, to consider how biofuels can contribute to meeting our climate change commitments in the context of measures introduced to address the negative indirect impacts of some biofuels.

[Alex Cunningham]

The Minister said a few minutes ago that some cars might not be compatible with E10 or even E5. Of course that is the case, but there are always alternatives at the petrol stations pump: diesel, fuel with bioethanol included or ordinary unleaded petrol. I cannot see that as the barrier that she described.

[Ms Ghani]

I do not think I described it as a barrier but a challenge. We must understand needs and impacts on consumers, which is why we should not rush, but ensure that what we do has a positive impact on all people.

--- Later in debate ---

[Ms Ghani]

The hon. Gentleman is trying to tease out a statement from me, when he knows that he has to wait for the consultation to get the response that he wants. I thank him for his tricky intervention, but he will have to wait for the consultation response to get the answer.

The Government agree that the aim must be to reduce emissions and that low carbon fuels must play a part. The regulations made last year introduced a greenhouse gas reduction obligation on suppliers and incentives for the development of fuels capable of delivering higher greenhouse gas emissions reductions. These allow us to reward low carbon fuels because of the emissions reductions they deliver. We have also made £20 million of match capital funding available under the future fuels for freight and flight competition. In the wider context, the Government have recently published two major strategies focused on combating climate change and improving the UK’s air quality. Our Road to Zero strategy sets out a clear pathway to zero emissions vehicles by 2050, and this week we have published our clean air strategy. The pathway is not just about driver behaviour and electrification. Low-carbon fuels will continue to play a vital role in reducing greenhouse gas emissions from the vehicle fleet.

The renewable transport fuel obligation, as amended last year, is expected to save nearly 85 million tonnes of CO₂ over the 15-year period from 2018, which represents around a third of transport’s projected contribution to UK carbon budget savings during the 2020s. In achieving those savings there is an opportunity to increase the amount of bioethanol in petrol, from 5% today up to 10%.

[Alex Cunningham]

The Under-Secretary is doing a grand job stonewalling on behalf of the Minister of State. If there is one message that we would ask to be taken back, it is that we desperately need a date and we need that certainty. Will she commit to go to the Minister and say, “Look, these guys are going to bash your door down if you do not actually make a decision and make it soon”?

[Ms Ghani]

I believe that the door has already been bashed down, because a meeting is set in the diary.

Oral Answers to Questions

Debate between Nusrat Ghani and Alex Cunningham

Thursday 10th January 2019 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

3. What steps his Department is taking to support community transport operators.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

The services run by community transport operators are of vital importance to our transport sector and communities. During the most recent financial year, the Government supported community transport operators with almost £3.1 million through the bus service operators grant. A number of projects from the £11.5 million building connections fund will also provide new community transport links to support those most at risk of isolation.

[Alex Cunningham]

That is a tiny amount to invest in community transport. My constituency is largely rural, and people in our villages—particularly older people—are left isolated because profit-making bus companies are not interested in serving them. There is some community provision, but very little funding. Will the Minister offer my isolated communities some comfort and commit more money to that sector, either directly or through the combined authority?