Draft Renewable Transport Fuel Obligations (Amendment) Order 2020

Robert Goodwill Excerpts

Tuesday 8th December 2020 General Committees

[Kerry McCarthy (Bristol East) (Lab)]

We can all support the transition to renewable fuels across the transportation sector. As the Minister will be well aware, transport is the largest contributing sector to UK emissions, and progress in trying to decarbonise the sector has been very slow in recent years. To achieve that, we need to make the types of vehicle that we use, and the fuel they consume, more sustainable. It was disappointing to hear this week that the transport decarbonisation plan will not be published until spring 2021; we really do need an overarching strategy and coherence in policy making, as well as a greater sense of urgency.

The renewable transport fuel obligation was a key achievement of the last Labour Government. It has been a central part of encouraging the adoption of renewable fuels in transport, particularly fuels sustainably sourced from waste. I am pleased that the RTFO continues to be considered a success across the transport sector, but we must recognise that, as the climate emergency becomes more pressing and transport emissions continue to stagnate rather than reduce, it now needs reform.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

The hon. Lady gives credit to the previous Labour Government, but was it not agreement at a European level that actually forced all EU Governments to move towards more renewable road transport fuels?

[Kerry McCarthy]

That is a very good argument for European co-operation, so it is sad that the right hon. Gentleman is such a fan of going it alone.

The statutory instrument goes some way towards meeting the need for reform. As the Minister has explained, from 1 January, it will mean that the buy-back price multiplier will increase from 30p to 50p, strengthening the RTFO by providing more incentive for people to meet our renewable fuel requirements, rather than buying themselves out of their obligations. The Government estimate that, without acting to raise the buy-back price, we risk losing annual greenhouse gas savings of up to 6.5 million tonnes of CO₂.

As the Minister said, the SI is the result of consultation. I am pleased that, as a result of that consultation, there was agreement to go for a 50p multiplier rather than 40p, which would have been considerably less ambitious. I am also pleased that implementation will begin swiftly on 1 January.

We will support the SI on the grounds that it strengthens the mandate to supply renewable fuels. Moving forward, however, I hope to see action from the Government to support renewable fuels in other ways. A consultation on introducing E10 petrol was launched earlier this year, but we are still waiting for the Government response, with a final decision on how it will be introduced and, hopefully, how we can ensure that an increased demand for biofuels does not lead to an increase in deforestation due to changes in land use.

Many stakeholders are proposing further reforms to the RTFO, such as a floor price mechanism to help to ensure stability for investment in the sector. I would be interested to hear from the Minister whether the Government are considering that reform to further strengthen the RTFO, because it has come up in many of my conversations with people in the sector.

I hope to see more support from the Government for emerging sources of renewable fuels, especially in hard-to-decarbonise sectors such as aviation, shipping and HGVs, which at present cannot easily be electrified. Proper investment in genuinely sustainable fuels for those modes of transport may prove vital in meeting net zero targets and putting us back on track. I know that we are expecting more details of the sixth carbon budget soon, and I will be watching closely for future announcements.

[Mr Goodwill]

I will be brief, and I first draw the Committee’s attention to my entry in the Register of Members’ Financial Interests as a wheat producer who is likely to benefit from an increased use of renewable fuel.

When we talk about new technologies to green our economy, and certainly to green our transport network, they often involve innovative solutions, but in the case of biofuels, not only is the technology mature, but the plants are already there. Investment has already been made on Teesside, in Hull and by British Sugar at Wissington. The problem is that those companies that have invested billions in this new technology have, in effect, been slapped in the face, because it was cheaper for fuel suppliers to buy out their obligations rather than sourcing the fuels. The order will address that particular problem.

The situation faced by the plant in Hull has been particularly disappointing, not only because it was designed to produce bioethanol to incorporate in fuel, but because the residue would have been a great animal feed for ruminants. Unfortunately, as such plants have completely stopped, or certainly operated at a much lower capacity, we have not seen the market for such by-products developing.

Does the Minister have ambitions to move to E10—10% ethanol fuel? Under the EN 228 fuel categorisation, fuel can be either E5 or E10. Many other countries around Europe have already moved to E10, which will increase demand for that fuel. When the Minister responds to the debate, including the points made by the hon. Member for Bristol East, will she comment on whether that change might result in more UK-produced biofuel, because one of the biggest concerns for many of us who were in the European Parliament when these things were decided—I will not take the credit for it, but I was there at the time—was indirect land use change, as some of those biofuels could have been sourced from the developing world, which may have had an effect on the rain forests? We often heard about so-called deforestation diesel, and countries such as Brazil are clearing rain forests to produce more ethanol. Indeed, vehicles there are running on E100—100% ethanol.

I welcome the order, but I would like reassurance from the Minister that the measure will herald the introduction of 10% ethanol fuel, and that we will do everything that we can to ensure that biofuels are sourced from the United Kingdom, rather than imported from countries that do not have the exacting environmental standards that we do.

Oral Answers to Questions

Robert Goodwill Excerpts

Thursday 17th September 2020 Commons Chamber

[Andrew Stephenson]

The Government agreed a £1.6 billion funding package in May. But let us be clear that Transport for London’s finances were in trouble well before covid-19, with a projected deficit of £220 million last year and £422 million the year before. Many of the financial problems can be directly traced to poor decision making by the current Mayor of London.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

What steps his Department is taking to support UK bus manufacturers in (a) Scarborough and Whitby constituency and (b) England.

[Andrew Stephenson]

We are committed to providing at least 4,000 British-built zero-emission buses through our £5 billion funding package for buses and cycling.

[Mr Goodwill]

If 2020 has been a tough year for bus and coach operators, it has been even worse for manufacturers such as Alexander Dennis Plaxton in Scarborough. We have heard on a number of occasions today of the £5 billion announced in February for 4,000 zero-emission British-built buses, but does the Minister agree with me that we need to get this money out of the door very quickly indeed if we are to avert a crisis on the production lines?

[Andrew Stephenson]

I thank my right hon. Friend for his question. I completely agree with what he says, and I commend him for what he has been doing to support manufacturers in his constituency. The Government have announced over £700 million in support for the bus and light rail sector already to date, and we are also providing £50 million for Britain’s first all-electric bus town and the £20 million rural mobility fund, which will support additional jobs. However, I agree with him, and I hope that we will make an announcement soon.

--- Later in debate ---

[Grant Shapps]

That is an incredibly important subject. The good news, which the hon. Lady may have missed, is that during my time as Secretary of State I have put several million pounds into precisely this issue of audio-visual on buses. I will certainly write to her with the details, and I will also arrange for her to meet the buses Minister.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

This Conservative Government are putting unprecedented levels of investment into the Highways England strategic road network. The A64 Hopgrove roundabout upgrade is one project that is vital not only to my constituents but to people from West Yorkshire and beyond who suffer in the queues. Will the Secretary of State give me an indication that this project is still in the programme and of when we are likely to see spades in the ground?

[Grant Shapps]

My right hon. Friend is right about the £27.4 billion we are investing in the road investment strategy 2 programme to upgrade and build roads fit for the 21st century. There was very effective lobbying on the roundabout, and I will certainly come back to him in writing to provide more of an update.

Airport Expansion

Robert Goodwill Excerpts

Monday 2nd March 2020 Commons Chamber

[Kelly Tolhurst]

I assure the hon. Gentleman that the Government are absolutely committed to increasing connectivity throughout the UK and levelling up and investing in infrastructure; that has been seen through our proposal for investment in roads and our rail network. As I mentioned, we are doing important work with our network of regional airports around the country. They are really rising to the challenge of their ambition: making the best use of the assets that they already have. I very much support that as the aviation Minister.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Businesses in the north of England—in places such as Scarborough and, indeed, Middlesbrough—are keen to play their part in delivering a global trading Britain. However, they are frustrated by the absence of slots into our main hub airport and have to use Schiphol, Paris or other airports. How does it help achieve our greenhouse gas emissions targets or get the best result for UK plc if they have to use foreign flights to Schiphol, Charles de Gaulle or Frankfurt?

[Kelly Tolhurst]

My right hon. Friend is absolutely right. We want to make sure that the whole UK benefits from economic prosperity, particularly in the north; that, hopefully, is what I will be working on in the coming months in this role. It is absolutely true: as I have said, will repeat and will keep repeating, airport expansion is a core part of our increasing UK connectivity —not just in the UK, but abroad.

Oral Answers to Questions

Robert Goodwill Excerpts

Thursday 30th January 2020 Commons Chamber

[Chris Heaton-Harris]

The obvious way to get around this problem is to ensure that trains actually arrive on time. That is the ultimate aim of all that we do in this area at the Department for Transport. We have rolled out the Delay Repay scheme across the vast majority of the network, and it is working. However, we are going to spend £48 billion over the course of the next five years to try to ensure that we have the infrastructure in place to make the trains run on time. That has to be the ultimate goal.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

13. What steps his Department is taking to decarbonise the transport sector.

[The Secretary of State for Transport (Grant Shapps)]

Now that so much energy—over half of it, last year—is being produced on a renewable basis, it is essential that transport reduces its greenhouse gas emissions, as it accounts for about a third of total emissions.

[Mr Goodwill]

We have seen great progress in battery technology for light vehicles, but decarbonising road freight is going to be a much more difficult nut to crack. Does the Secretary of State think that we need to look at options such as hydrogen technology for trucks, or even freeing up space on our rail network by building HS2?

[Grant Shapps]

Let me be drawn on the first part of that question, if I may. My right hon. Friend is absolutely right. Hydrogen technology is very important for heavier vehicles and potentially for trains, whereas it is battery technology for cars. We are working and funding both.