Nuclear: Small Modular Reactors

Baroness Winterton of Doncaster Excerpts

Monday 19th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, we are well aware that both AI and data centres will lead to a major increase in electricity demand. We are also aware of experience in the US, and interest in this country, in linking these AI data centres to nuclear development. The EN-7, the siting policy for nuclear sites, which we are debating in your Lordships’ House on Wednesday, gives us a more flexible siting policy as a result. We are well aware of the potential. We are working very hard to consider how we can encourage this development with private sector funding. I take the noble Earl’s point about the need for us to be very clear about where we are going in this area; I very much accept that.

[Baroness Winterton of Doncaster (Lab)]

My Lords, I thank my noble friend the Minister for the positive discussions he has had with colleagues in the public and private sectors with regard to the manufacture of small modular reactors in South Yorkshire, but I am very aware that it is not just his department but the Treasury. Will he impress upon the Treasury the fact that the Czech and Korean Governments are forging ahead with design and technology of SMRs and that unless we get our skates on about the urgency of this, we will be buying SMRs from overseas and not making them in this country?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I need no encouragement from my noble friend to knock on the doors of the Treasury. That is what we have been doing over the last few weeks, and having, I hope, very constructive discussions. I pay tribute to our former colleague Richard Caborn, the work he is doing in South Yorkshire in relation to the nuclear supply chain and the developments he is encouraging. I had a very good meeting with him and colleagues only a few weeks ago, and we are certainly very much apprised of the need for urgency. I am confident that we have a real opportunity in this country to develop SMRs and to see a strong UK supply chain. We should not be pessimistic. We have a great opportunity here.

Transport Decarbonisation Plan

Baroness Winterton of Doncaster Excerpts

Thursday 24th April 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, we are looking at the regulatory system around heavy goods vehicles; the noble Baroness will know that HGV decarbonisation remains a challenge, with issues in relation to higher upfront costs and limited charging and refuelling infrastructure. We have a number of initiatives to tackle this, and some improvements are being made. I also very much take her point about the incentivisation of a shift away from HGVs. She will be aware that the Department for Transport operates two freight revenue grant schemes to encourage modal shift from road to rail and water.

[Baroness Winterton of Doncaster (Lab)]

My Lords, I hope that my noble friend the Minister will agree that green hydrogen power has an important part to play in transport decarbonisation. Can he set out, perhaps by writing to me, what support his department and the Department for Transport can give to innovative companies such as Clean Power Hydrogen in Doncaster in developing transport innovation to assist in achieving net zero?

Small Modular Nuclear Reactors

Baroness Winterton of Doncaster Excerpts

Wednesday 22nd January 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I do not think I can give that commitment, although I recognise what the noble Lord says. I can certainly assure him that we are in close discussions across government departments about taking forward the implications of what was contained in the plan. I, of course, recognise the role that Rolls-Royce plays. I do not want to say anything further about that because it is currently in a competitive process in relation to SMRs that is being run by Great British Nuclear.

[Baroness Winterton of Doncaster (Lab)]

My Lords, is my noble friend the Minister aware that the proposal by a consortium of Sheffield industrialists for an SMR national manufacturing centre of excellence would create hundreds of highly skilled jobs in South Yorkshire and across the country, and would also open up the opportunity for British industry to compete internationally for the manufacture of SMRs with British components? Can he assure me that this is exactly the sort of proposal his department will consider supporting and is in line with the points made by my noble friend Lord Spellar?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Baroness may know that I met our former colleague Richard Caborn and colleagues from Sheffield to discuss this. We have now asked UK Research and Innovation to review the detail and advise us. We will then consider the next steps. Clearly, this is a very interesting concept.

Energy Costs for Businesses

Baroness Winterton of Doncaster Excerpts

Tuesday 17th December 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is not how I recognise our energy policy. The noble Lord will have seen our action plan towards clean power, published at the end of last week, which sets out how we intend comprehensively to move towards clean power by 2030. I just say to the noble Lord that the highest price that businesses paid for electricity was in 2023, under the Government in which he was a member. What that shows is that, if we remain dependent on the volatility of international fossil-fuel prices, we will always be vulnerable to the kinds of spikes we have seen. That is why we need clean power and homegrown energy.

[Baroness Winterton of Doncaster (Lab)]

My Lords, the Clean Power 2030 Action Plan is clear, on page 81, that nuclear power has a role to play in achieving clean power by 2030. Will my noble friend the Minister give a little more detail on what the Government are doing to support the development of the technology around small modular reactors, so that they can eventually be built in this country, support British jobs and reduce costs for businesses?

[Lord Hunt of Kings Heath (Lab)]

My Lords, my noble friend is right to explore the contribution that nuclear will play in the lead up to 2030, but of course beyond, which is why we have the building of Hinkley Point C, then Sizewell C when we get to a financial investment decision next year, then the SMR programme and then the AMR programme. As far as small modular reactors are concerned, Great British Nuclear is conducting a technology exercise at the moment; it is in financial discussions with four of the companies concerned. We will come to the issue of spend and public support in the multiyear spending review that is taking place over the next few months.

Domestic Solar Panels

Baroness Winterton of Doncaster Excerpts

Monday 25th November 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

I think the Lord will recollect that he asked me rather a lot of questions and, given that my winding-up speech was 20 minutes, with the best will in the world, I said that I would write to him. On the general principle, he knows that I have long shared his concern, particularly about Xinjiang province and the appalling use of the Uighurs. We understand those issues and are committed to tackling them. We have given guidance on the risk to business of trading in Xinjiang province, and we have pointed out the penalties for those who fail to report under the Modern Slavery Act. The noble Lord will find an invitation to meet in the next two days to discuss those issues.

[Baroness Winterton of Doncaster (Lab)]

My Lords, further to that point, does my noble friend the Minister agree that one of the keys to tackling this issue, especially in terms of exploitation in other countries, is to ensure that solar panels are built in this country and that our industrial strategy matches up with the energy strategy and Great British Energy to make that happen? Can he assure us that he is focused on that?

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is a very interesting point put forward by my noble friend. One of the responsibilities of the Solar Taskforce is to look at the supply chain, and we will pick up the issue that she mentioned. It is also worth pointing out that if we look at where the content comes from in relation to placing solar panels on a roof, it is reckoned that 60% of the value of the work—including scaffolding and whatever else has to happen—is bought in this country.

Great British Energy Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 18th November 2024 Lords Chamber

[Baroness Winterton of Doncaster (Lab)]

My Lords, it is a pleasure to follow the noble Lord, Lord Howell of Guildford, who demonstrated his long-standing interest and expertise in this area.

It was also a huge privilege and pleasure to have been here for the maiden speech of my noble friend Lady Beckett. Her speech demonstrated once again why she is such a towering figure in the Labour movement. My noble and learned friend Lord Falconer of Thoroton expressed perfectly why we are so lucky in your Lordships’ House to be able to benefit from my noble friend’s experience and wisdom. I add my own thanks to her for all the kindness she has shown to me and the advice she has given me over the many years that I have known her. I am sure I speak for many Members of this House, not least those who came from the House of Commons, when I say that.

[Noble Lords]

Hear, hear.

[Baroness Winterton of Doncaster (Lab)]

I welcome the Bill, not only because it fulfils one of the Government’s manifesto commitments to establish the first new, national, publicly owned energy company in our country for more than 75 years but because it is a key plank in our commitment to reach net zero. The company, as legislated for in the Bill, has the potential to contribute to the UK’s energy independence and climate goals, create good jobs directly and through its supply chains, support pathways for the oil and gas workforce, and deliver long-term revenue streams for the public.

Of course, state ownership of UK energy assets is already widespread, especially offshore wind, but the unfortunate fact is that it is state ownership by the Governments of France, Denmark, Sweden and Norway rather than the UK. Today, more offshore wind is owned by the city of Munich than by the UK public. Surely if it is right for the Danish, French, Swedish and Norwegian publics to own our offshore wind and clear energy, the British public deserve a stake as well.

I believe that GB Energy will make us stronger in an insecure world and provide us with a national energy champion. However, it is essential that GB Energy has a sharp focus on creating quality jobs, both directly and through its supply chain. At the moment, while the UK has installed more offshore wind than any other country but China, we lag far behind European countries, including Denmark, Germany and Spain, in terms of supply-chain and job creation. That has to change. China has begun manufacturing cheaper and bigger offshore wind turbines, and we cannot let a situation develop where we become as dependent on China for offshore wind turbines as we are today for solar panels.

If we do not see GB Energy playing a key role in delivering the Government’s industrial strategy, we risk a backlash to the clean energy transition, as touched on by the noble Baroness, Lady Hayman, so we need GB Energy to have a strategy that includes long-term proactive commitments, underwriting demand, and using its procurement powers so it can build up the UK supply chain and deliver a just transition pathway for North Sea oil and gas workers.

My noble friend the Minister may be aware, for example, of the proposal for a small modular reactor national manufacturing centre of excellence, which would present a British high-value manufacturing industry-led approach to deliver an SMR, the first of its kind here in the UK and, as it happens, would be based in South Yorkshire. I hope my noble friend the Minister will agree that this is exactly the type of UK-based manufacturing that the Government and GB Energy should be supporting.

As my noble friend the Minister said in opening, the GBE founding statement said that the company’s mission would be

“to drive clean energy deployment, boost energy independence, create jobs”.

Will my noble friend the Minister consider the point being made by the TUC that we should strengthen the Bill by adding a requirement, perhaps to the objectives in Clause 3, that Great British Energy contribute to the UK’s commitments to a just transition and to the creation and maintenance of quality jobs, so that this commitment is actually enshrined in legislation? GB Energy needs to look across all areas, including wind turbines, small nuclear reactors, solar and clean hydrogen power. It should be clear about how companies can access funding through GB Energy’s £8.3 billion capitalisation.

My noble friend the Minister referred to carbon capture and storage in opening. I am sure he will be aware of the concern of the Carbon Capture and Storage Association that the Bill defines clean energy primarily as energy produced from non-fossil fuel sources. This could inadvertently restrict investments by GBE in technologies such as carbon capture and storage, reduce the potential for public/private projects, as the noble Lord, Lord Howell, referred to, and hinder the UK’s ability to meet net-zero targets. My noble friend Lady Liddell has also raised this issue, and she is in her place today. I hope the Minister will be able to comment on these concerns in his closing remarks.

This has been an extremely interesting debate so far. I am looking forward to hearing the maiden speech of the noble Lord, Lord Mackinlay of Richborough. I see that by his side he has the noble Baroness, Lady Laing of Elderslie. I do not know if this is unparliamentary language, but she was my “old mucker” in the Commons, when she was Chairman of Ways and Means and I was First Deputy Chairman of Ways and Means. We enjoyed lively exchanges at times with the noble Lord, Lord Mackinlay. I want to say how much I admire his bravery—I know many here do—in overcoming so many obstacles, which is epitomised by him being here today. I look forward to his speech and to hearing my noble friend the Minister’s response to the points made on this very welcome Bill.

Offshore Petroleum Licensing Bill

Baroness Winterton of Doncaster Excerpts

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Sir Alok Sharma (Reading West) (Con)]

I beg to move amendment 12, page 1, line 3, at end insert—

“(1ZA) The OGA must not invite any new seaward area production application licences until the Secretary of State has by regulations brought into effect a ban on flaring and venting relating to new offshore installations other than that required in an emergency.

(1ZB) The Secretary of State must by regulation make such provision so that the OGA is only permitted to invite seaward area production application licences after 2030 once a prohibition is in place on routine flaring and venting for all offshore installations operating in UK waters.

(1ZC) A statutory instrument containing regulations under subsections (1ZA) and (1ZB) is subject to annulment in pursuance of a resolution of either House of Parliament.

(1ZD) In subsection (1ZA) and (1ZB)—

‘flaring’ means the burning of hydrocarbons produced during oil and gas extraction;

‘venting’ means the release of un-combusted hydrocarbons directly into the atmosphere.”

This amendment prevents the invitation of new seaward area production application licences until the Secretary of State has introduced a ban on flaring and venting by new offshore installations. It also requires the Secretary of State to prevent licensing rounds from 2030 if a wider ban is not in place.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Amendment 15, page 1, line 3, at end insert—

“(1ZA) The OGA must not invite any new seaward area production application licences until the Secretary of State has by regulations brought into effect a requirement that—

(a) all new seaward area production application licences require a specific field commitment of a net zero carbon footprint reached through developing the Carbon Capture Utilisation and Storage network or such other means as deemed appropriate; and

(b) a percentage, to be specified in regulations but not less than 30 per cent, of all new seaward area production application licences specifically align petroleum extraction with the refining of petroleum at the Grangemouth oil refinery.

(1ZB) A statutory instrument containing regulations under subsections (1ZA) is subject to annulment in pursuance of a resolution of either House of Parliament.”

Amendment 7, page 1, line 4, leave out “in each relevant year” and insert “on a case-by-case basis”.

Amendment 2, page 1, line 6, at end insert—

“(aa) the climate test (see section 4ZD)”

This paving amendment, together with amendment 3, sets out the climate test to be applied by the Oil and Gas Authority before inviting applications for seaward new production licences.

Amendment 8, page 1, line 6, at end insert—

“(aa) the energy and job security test (see section 4ZD)”

This paving amendment, together with Amendment 9, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 10, page 1, line 6, at end insert—

“(aa) the just transition test (see section 4ZD)”

This paving amendment, together with Amendment 11, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 13, page 1, line 6, at end insert—

“(aa) the just transition plans test (see section 4ZD)”

This paving amendment, together with Amendment 14, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 17, page 1, line 6, at end insert—

“(aa) the climate change test (see section 4ZD)”

This paving amendment, together with Amendment 18, sets out the climate change test to be applied by the Oil and Gas Authority before inviting applications for seaward new production licences.

Amendment 22, page 1, line 6, at end insert —

“(aa) the home energy efficiency test (see section 4ZD).”

This paving amendment, together with Amendment 24, introduces a home energy efficiency test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 23, page 1, line 6, at end insert—

“(aa) the Energy Charter test (see section 4ZD).”

This paving amendment, together with Amendment 25, introduces an Energy Charter test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 19, page 2, line 1, after “of” leave out “liquefied”.

This amendment, together with Amendment 20, would require the carbon intensity of domestic natural gas to be assessed against the carbon intensity of all natural gas imported into the UK.

Amendment 20, page 2, line 7, leave out “liquefied”.

This amendment, together with Amendment 19, would require the carbon intensity of domestic natural gas to be assessed against the carbon intensity of all natural gas imported into the UK.

Amendment 21, page 2, line 24, at end insert—

“(4A) Within six months of the commencement of this Act, the Secretary of State must produce and lay before Parliament a report on the effect of amending the definition of “carbon intensity” as set out in subsection (4) according to section 93 of the Climate Change Act 2008.”

This amendment requires the Secretary of State to report how the carbon intensity test is affected if the definition of carbon intensity were amended to include emissions of gases other than carbon dioxide in line with the carbon dioxide equivalent measure in section 93 of the 2008 Climate Change Act.

Amendment 3, page 3, line 23, at end insert—

“4ZD The climate test mentioned in s 4ZA

The climate test is met in relation to a relevant year if the Intergovernmental Panel on Climate Change finds that current global fossil infrastructure will not emit more greenhouse gases than is compatible with limiting global heating to 1.5 degrees Celsius.”

Amendment 9, page 3, line 23, at end insert—

“4ZD The energy and job security test mentioned in s 4ZA

The energy and job security test is met in relation to a relevant year if the OGA assesses that new licences will—

(a) lower energy bills for households;

(b) deliver energy security and reduce reliance on imported fuel sources for domestic consumption;

(c) enhance sustained job security for the oil and gas workforce in areas of the UK economically reliant on the oil and gas sector;

(d) guarantee funding for domestic refineries to increase capacity to process sustainable fuel sources; and

(e) help the oil and gas sector meet commitments set out in the North Sea Transition Deal.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 11, page 3, line 23, at end insert—

“4ZD The just transition test mentioned in s 4ZA

The just transition test is met in relation to a relevant year if the OGA assesses that—

(a) new licences will support the delivery of the North Sea Transition Deal’s greenhouse gas emission reduction targets of 10% by 2025, 25% by 2027 and 50% by 2030 against a 2018 baseline, to meet the sector’s aim of a net zero basin by 2050; and

(b) the Secretary of State has provided funding to support the development of the renewable energy sector, in areas of the UK economically dependent on the oil and gas sector, equivalent to tax revenues collected from UK oil and gas production.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 14, page 3, line 23, at end insert—

“4ZD The just transition plans test mentioned in s 4ZA

(1) The just transition plans test is met in relation to a relevant year if the OGA assesses that all existing seaward area production licence holders have published just transition plans for their workforce that are compatible with limiting global heating to 1.5 degrees Celsius.

(2) For the purposes of this section—

“just transition plans” refer to plans agreed through formalised collective agreements with unions in the workplace for consultation on policy;

“workforce” includes workers, directly and indirectly (sub-contracted or agency) employed, or engaged through day-rate or self-employed contract models.”

Amendment 18, page 3, line 23, insert—

“4ZD The climate change test mentioned in 4ZA

The climate change test is met in relation to a relevant year if the latest reports of the Intergovernmental Panel on Climate Change on the mitigation of climate change find that the granting of additional seaward area production licences is consistent with limiting warming to 1.5°C.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 24, page 3, line 23, at end insert—

“4ZD The home energy efficiency test mentioned in s 4ZA

The home energy efficiency test is met if the median rating in current Energy Performance Certificates in the United Kingdom falls within or above Band B.”

This amendment sets out the home energy efficiency test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 25, page 3, line 23, at end insert—

“4ZD The Energy Charter test mentioned in s 4ZA

The Energy Charter Treaty test is met if the United Kingdom has made arrangements to withdraw from the Energy Charter Treaty.”

This amendment sets out the Energy Charter test to be applied by the OGA before inviting applications for seaward area production licences.

Clause stand part.

Clause 2 stand part.

New clause 2—Duty to introduce spatial prioritisation policy—

“After section 4 of the Petroleum Act 1998 insert—

‘4ZAA Duty to introduce spatial prioritisation policy

(1) Before the OGA invites applications for seaward area production licences under this Act the Secretary of State must publish a marine spatial prioritisation policy.

(2) The marine spatial prioritisation policy must establish a process for prioritising offshore renewables, marine protection, fishing activities, oil and gas licensing, and the achievement of relevant targets under the Climate Change Act 2008 and the Environment Act 2021 in any relevant decisions relating to the marine environment made by a body undertaking public functions.

(3) The OGA must comply with the marine spatial prioritisation policy set out in subsection (1) when deciding applications relating to new seaward area production licences.’”

This new clause requires the Secretary of State to publish a marine spatial prioritisation policy, taking into account relevant targets under the Climate Change Act 2008 and the Environment Act 2021.

[Sir Alok Sharma]

I refer the House to my entry in the Register of Members’ Financial Interests.

On Second Reading, I said that this Bill was something of a distraction and not necessary on the basis that the North Sea Transition Authority can already grant licences annually or, indeed, whenever it considers it necessary. That will not change with the Bill. I also noted at the time that the two statutory tests in the Bill have been designed in such a way that the computer always says yes to new oil and gas licences, but I also said that I would work with other like-minded colleagues to improve the Bill and bring in further tests that need to be met before any new oil and gas production licences are granted. That is what I and other Members have sought to do.

Amendment 12 seeks to do two things. First, it would stop the invitation of new production application licences until the Secretary of State has introduced a ban on the flaring and venting of methane by new offshore installations. Secondly, it would require the Secretary of State to prevent licensing rounds from 2030 if a wider ban on flaring and venting is not in place. Along with other Members who have signed up to the amendment, I argue that this is an entirely reasonable ask that the Government and all Members should be able to get behind, given that all it modestly seeks to do is put into statute existing guidance on flaring and venting that was issued by the North Sea Transition Authority.

Let me set out the precise wording of the principles that the NSTA expects industry to follow in relation to flaring and venting across all UK continental shelf areas. First,

“flaring and venting and associated emissions should be at the lowest possible levels in the circumstances”.

Secondly, there should be

“zero routine flaring and venting for all by 2030”.

Thirdly,

“all new developments should be planned and developed on the basis of zero routine flaring and venting.”

That is a set of NSTA principles with which amendment 12 in entirely consistent.

--- Later in debate ---

[Several hon. Members rose—]

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Order. We are in Committee, so I remind Members that the Chair should be addressed by name or as “Chair” or “Madam Chair”, as Sir Alok Sharma did, and not as “Mr Deputy Speaker” or “Madam Deputy Speaker”.

Before I call the shadow Minister, I want to make it clear that I will be calling those who have amendments down first and I will then move on to others, going from side to side.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I would like to speak to our amendments 17, 18, 19 and 20, to comment on other amendments before us today and then to place all this into the context of the Bill as a whole by way of what will effectively be a stand-part contribution. This Bill remains an ill-advised, pointless piece of political posturing—

--- Later in debate ---

[Selaine Saxby]

My right hon. Friend makes a valid point. However, for me, this is about opening up that conversation and making sure that these things are considered in the round. If we are going to put an extra pipe in, we should consider what we are offsetting somewhere else.

Polling found that 80% of the UK public believe our ocean protection laws must be strengthened, and I know how important our waters are to the residents of North Devon and the wider UK. We must ensure that we do all we can on this, while understanding the vital role that oil and gas plays and will play in our energy security. Spatial prioritisation is important to ensure that continuing to drive forward our new green energies is not done at the expense of our traditional industries, such as fishing, and gives due consideration to the marine environment, which we on land owe so much to and are still finding out more about. Balance and optimisation are the objective of this amendment, and I hope the Minister will consider this opportunity, so that we really can have it all and decarbonise our energy, improve our biodiversity, support our fishermen and improve our energy security.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

I call the Scottish National party spokesman.

[Dave Doogan (Angus) (SNP)]

I rise to speak to amendments 7, 8 and 10, which have been tabled by the SNP. I note that no substantive changes have been made to the Bill’s provisions since we discussed it some weeks ago in this place; it is no more responsive to the needs of the climate, the energy sector in Scotland or bill payers who are haemorrhaging money on their energy bills. We know, from the appropriation of Scotland’s energy wealth by Thatcher in the 1980s, Cameron’s “Cut the green crap” at the beginning of this Conservative regime, and the weak-minded and politically naive rolling back of the green transition measures by the current Prime Minister, that time and time again, the Tories will never look after ordinary workers, Scotland or the environment.

--- Later in debate ---

[Dave Doogan]

The hon. Gentleman raises an interesting question. There has been a lack of investment, and the network that delivers energy around GB was designed for a small number of very large generators. It is ill-equipped to deal with many smaller systems of generation. That is why we find ourselves switching off wind turbines and, where the demand still exits, replacing them with gas, much to all our constituents’ cost and misery. The failure to transition in the electricity distribution network across GB is exactly the same failure we see in our dependency and desire to keep looking backwards. We should transition from hydrocarbons to renewables in a way that respects communities.

In closing, we should grasp Scotland’s bright future with both hands. In so doing, we will rid ourselves of the mismanagement of successive UK Governments in Westminster.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Before I bring in some of those who may not have tabled amendments, I remind Members that we are at Committee stage, so discussion is of the amendments. However, as we are also discussing clauses 1 and 2 stand part, there is perhaps a little more scope.

[Peter Aldous (Waveney) (Con)]

As I mentioned on Second Reading, the Bill is of particular interest to me because the oil and gas industry has played a significant role as a major employer in the Waveney and Lowestoft area for nearly 60 years. Moreover, the offshore wind industry and other low-carbon energy technologies, such as nuclear and hydrogen, will provide exciting local job-creating opportunities for generations to come. Dame Rosie, I also chair the British offshore oil and gas industry all-party parliamentary group.

Offshore Petroleum Licensing Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 22nd January 2024 Commons Chamber

[Jim Shannon]

I thank my hon. Friend—I call him that because I have great respect for him—and agree wholeheartedly with what he has just said. The farming community, the NFU and the Ulster Farmers’ Union are clearly committed to the targets. They are committed to looking at the alternatives, but the alternatives have to be practical. The point I am trying to make is that it is about where things are practical.

There is no doubt that to meet not just our net zero target but, more importantly, our environmental obligations, we need to do a better job of accessing and using renewable energy fuels. However, the fact is we will simply not be there any time soon and, in the meantime, it is vital that we secure safety and security for our constituents. I support the aims of the Bill, which would enhance the procedures currently in place, and note that no financial hardship should be passed on through the Bill. That is vital as I know that households are struggling with the current pressures. No longer is it a matter simply for households in poverty, working families with decent wages are being affected.

It is a transition. It is about meeting our net zero targets and increasing green energy and renewables, which my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) referred to. At the same time, the Bill gives us the opportunity to progress those renewables in a way that is positive in the short term.

The Library briefing makes it clear that licensing rounds are run when the NSTA decides they are necessary. However, it should be highlighted that they have been held broadly on an annual basis up to the 32nd licensing round, which opened in 2019. The latest—33rd—licensing round was launched in October 2022, following the introduction of a climate compatibility checkpoint in September 2022. In October 2023, 27 new licences were awarded as part of that licensing round. That is not onerous, but it is necessary not just to safeguard our industry by enhancing investor and industry confidence, as the Government have highlighted, but to ensure that we do not see families scraping pennies together to afford heat.

My contribution to the debate is clearly for those who are in energy difficulties. Today, the papers referred to food bank referrals being up some 30%. The food bank in my constituency of Strangford in my major town of Newtownards saw a 30% increase in referrals over December and early January from people who are middle class who are finding it difficult to deal with energy prices.

I know of several young families who usually enjoy a few days away when the kids are off at Christmas, and they told me that they were just not able to do it this year. People may say, “For goodness sake, they can’t go on holiday…” I am not saying that because it is their right to have that break, but I am highlighting the knock-on effect for families of increased prices is that they cannot afford to sow into the local economy in the way they used to. That means the little 20-bed hotel they usually visit does not get their business. The knock-on effect is that they do not hire the cleaner for as many hours. Her income drops, and she cannot spend the way she usually does, so the knock-on effects continue.

We need the people who spend locally to do so, and for them to do that, energy bills need to be manageable. We are failing when it comes to energy provision. If the Bill helps safeguard our provision as we continue to find better ways to source reliable renewable energy, I support that. When the Minister or Secretary of State sums up, if they could give us that reassurance, I would be a whole lot happier about this debate. Of course, we need to explore tidal energy, but safeguarding domestic production can go hand in hand with that. Indeed, it must do so. I am committed to renewables, green energy possibilities and net zero targets because the farming community that I live in want to commit themselves to that as well.

I support our families, our vulnerable, ill and elderly, and those living in cold, damp homes because they cannot afford to do otherwise. Therefore, at this stage, I support the Bill on behalf of all those struggling to heat their homes and keep their families warm. We must commit ourselves to more renewables and ensure that the renewables percentage rises. If it rises, we can reduce gas and petroleum usage. By doing so, we can balance the process. That is what I am hoping for from the Minister’s reply; I hope we can deliver that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the shadow Minister, I want to emphasise again, and I will do so when he has finished, how important it is for those who have contributed to the debate to be here for the wind-ups. I call the shadow Minister.

--- Later in debate ---

[Mr Sheerman]

On a point of order, Madam Deputy Speaker. I have been in this House longer than most people, and it is a courtesy to the House in a winding-up speech to give way in an even-handed way. This Minister has given way to a Conservative Member, but he refuses to take any interventions from the Opposition.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for that point of order. It is up to the Minister to decide to whom he gives way. It would be slightly more usual for him to give way to Members who had been in the Chamber throughout the debate. However, it is up to him to decide. And I really do not like points of order in the middle of winding-up speeches.

[Graham Stuart]

Thank you, Madam Deputy Speaker.

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[Graham Stuart]

If the hon. Gentleman, who has hardly been here, would sit down, I will fortunately be able to come to a close.

The amendment put forward by His Majesty’s Opposition suggests that maximising the falling production from the North sea will put us at the greater mercy of petrostates. That is so obviously untrue that I hope they would hold their heads in shame about it. That has been at the heart of the Opposition’s approach to this Bill.

The Bill is designed to send a signal to the industry that we have its back. It is all about ensuring that we get to net zero in the most efficient and effective manner possible, and it will underpin this Government’s continued leadership on climate now and for many years to come. I urge the House to support the Bill.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Well, that was lively. [Laughter.] Now that I have Members’ attention, I want to emphasise how important it is for those who have participated in debates to get back in good time for the winding-ups speeches. When the wind-ups come up early, please just keep an eye out for them and make sure to come back, because people who have participated will be mentioned in the wind-ups and it is courteous to be here to hear them.

[Mr Sheerman]

On a point of order, Madam Deputy Speaker. Could I just make it clear to the House that I was not here for the main debate, but came in for the wind-ups, because I was chairing a committee looking at the future of hydrogen? I apologise to the House that I was delayed. Thank you.

[Madam Deputy Speaker]

I thank the hon. Gentleman for that clarification. Nevertheless, it is true that it is up to the Minister to decide to whom he wants to give way.

Question put, That the amendment be made.

Civil Nuclear Road Map

Baroness Winterton of Doncaster Excerpts

Thursday 11th January 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

With permission, Madam Deputy Speaker, I wish to make a statement on civil nuclear power in the UK. Today, we have published three key documents that reinforce the UK’s position as a leader in the civil nuclear renaissance: a civil nuclear road map, a consultation on alternative routes to market, and a consultation on a proposed policy for siting new nuclear power stations. That sets us on a path towards deploying up to 24 GW of nuclear power in Britain by 2050 as part of a cleaner, cheaper and more secure energy system for the future. It is the biggest investment in more than 70 years.

In the civil nuclear road map we are setting out our overarching strategy for the deployment of new nuclear reactors in the UK, and how His Majesty’s Government intend to work with the nuclear sector to deliver that ambition. The road map establishes our vision for a vibrant British nuclear sector, providing detail on the policies that we are pursuing to enable delivery, covering areas such as siting, regulation, financing, the joint work that we are undertaking with Defence nuclear colleagues to develop the required nuclear skills and supply chain in the UK, and how we are taking care of our nuclear legacy through policies on decommissioning and waste management.

Announcements in the road map include a commitment to reform the regulations, financing and decommissioning of civil nuclear to make it more agile, thereby streamlining regulation while retaining the UK’s world-class standards of safety. For example, the measures that we are announcing today could cut by up to 50% the approval times for reactors that are already approved by overseas regulators.

We are also announcing our commitment to reduce global dependence on Russian fuel and to grow the UK supply chain by investing £300 million, alongside industry, in the British production of clean, green high-assay low-enriched uranium fuel for innovative new reactors, thereby offering a commercial alternative to Russia for ourselves and our allies and partners.

The road map also sets out our long-term ambition for nuclear, providing high-level timelines and key decision points for a wide range of nuclear technologies over the next decades. Those technologies include small modular reactors, advanced modular reactors and gigawatt-scale projects, including a new commitment to explore a further gigawatt-scale nuclear project after Sizewell C. Advanced nuclear technologies, such as SMRs and AMRs, present the opportunity to decarbonise across the energy sector, from grid electricity through industrial heat to entirely new industries such as the production of hydrogen and synthetic fuel.

Last year, we set up Great British Nuclear as an arm’s length body responsible for helping to deliver new nuclear projects and lead our energy revolution, but we are also keen to harness innovation in the private sector and help developers to bring forward new nuclear projects outside of GBN’s ongoing SMR selection process. We are therefore today also launching our alternative routes to market consultation. That consultation, which will run for 12 weeks, aims to understand where the Government could support the private sector to bring forward advanced nuclear projects.

Finally, in recognition of our enhanced nuclear ambitions and the exciting potential offered by advanced nuclear technologies, we are launching a public consultation on a proposed new policy for the siting of new nuclear power stations. That consultation marks an important first step in the process for developing a new nuclear national policy statement for England and Wales, and will run for eight weeks. The results of the consultation will be used to inform the drafting of the national policy statement document, which we intend to publish for further consultation.

The proposed siting processes announced today would, of course, apply only to England and Wales. Although our ambition is for a whole British nuclear revolution, the current Scottish Government sadly remain committed to blocking any planning application for new nuclear in Scotland under their devolved consenting regime. However, we continue to invite the Scottish Government to join us and more than 30 other countries around the world to allow for reinvestment in, and the renewal of, our nuclear capacity across the whole UK in order to meet our net zero and energy security objectives. Our intention is to designate the NPS in 2025—subject, of course, to parliamentary processes. For the first time, we intend for the NPS to provide a planning policy framework for SMRs and AMRs, as well as the traditional gigawatt-scale power stations.

To achieve the UK’s nuclear ambitions, the Government believe that additional sites will be required for new nuclear projects, along with greater ongoing flexibility in the site selection process to enable new technologies. We are excited to introduce a positive shift in approach in the siting consultation: the new NPS will empower nuclear developers to identify potential sites for development, fostering developers’ innovation and, indeed, flexibility. Although the existing designated nuclear sites may possess many inherent positive attributes that potentially make them a consideration for future development, the change allows for the exploration of diverse new locations. By entrusting developers with that responsibility, we aim to streamline the process, encourage creative solutions and enhance the overall efficiency of nuclear development, ultimately contributing to the growth and sustainability of the industry.

We propose that the siting of new nuclear would continue to be constrained by robust criteria that determine where development can occur. Developers would be empowered to undertake the initial screening of sites based on those criteria, with advice from regulators and statutory agencies. Of course, it is our intention that safety will remain paramount, with the highest safety, security and environmental standards overseen by the independent nuclear regulator and environment protection agencies. Public consultation and community engagement will also remain essential parts of the process. This package —this vision, this announcement—represents the biggest investment in nuclear in the UK for over 70 years, ensuring our energy security, keeping us on the path to net zero and delivering the jobs of the future: our nuclear future.

I commend this statement to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

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[Andrew Bowie]

I am so pleased to hear the hon. Lady’s support for the Conservative party’s policies regarding nuclear, given that we are investing in all of the above and more. I do welcome the support of the official Opposition and their recent damascene conversion to the benefits of nuclear power, but we should never forget, in this place and beyond, that any nuclear projects in this country and any nuclear power stations have been delivered only by a Conservative Government. It is a record of which were very proud. Labour was in power for 13 years and delivered nothing.

We are very proud today to be publishing our civil nuclear road map. As I say, it is important for the industry that there is cross-party consensus and agreement that investment in nuclear is to the benefit of this country, the economy and the environment and, indeed, will provide energy security and wean ourselves and our allies off our reliance on Vladimir Putin for our energy needs.

The hon. Lady is absolutely right that delivering new nuclear power stations will yield results for the British people and deliver cleaner bills. In Finland, where nuclear power stations are now delivering more than 40% of energy on to the grid, bills have dropped by an incredible 70%. She asked about the final investment decision on Sizewell C; we remain committed to making that decision by the end of this Parliament. On Hinkley Point C, we are in fact very proud of the progress that is being made. Just last month we saw the dome being lifted on to the top of reactor 1. I have nothing but admiration for the workforce and everybody involved in delivering that first-of-a-kind project at Hinkley, and we continue to support it.

The hon. Lady asked about the next phase of the small modular reactor competition. It will be launched within weeks, so I ask her to bide her time and keep her patience. We are very excited to have six fantastic technology companies bidding to deploy in the United Kingdom, and we are moving faster than any comparable programme around the world, to ensure that Britain and the British people benefit from investment in small modular reactors and the benefits they can bring to the energy mix and to local economies.

The hon. Lady asked about skills. One of the things that the nuclear industry can bring, and indeed delivers at this point, is high-skilled, high-wage jobs throughout the country, and indeed in many places where those jobs are at a premium. It is absolutely right that we look at how we can encourage more people, and make the spaces available within industry and in our educational institutions to get more people into the jobs of the future in the nuclear industry. That is why I, along with my hon. Friend the Minister for Defence Procurement, have launched the nuclear skills task force, chaired by Sir Simon Bollom. It will publish its initial findings and recommendations in the very near future.

As I said, I welcome the new-found support, optimism and positivity for nuclear demonstrated by the Labour party, and when we as the Conservative party go on to win at the next election, I am sure that the hon. Lady will continue to offer that support from the Opposition Benches.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Science, Innovation and Technology Committee.

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[Andrew Bowie]

I thank my right hon. Friend for his question and for all the work he has done to champion nuclear, not only in his capacity as Chair of the Select Committee but in his time as Secretary of State for Business, Energy and Industrial Strategy, when he was in charge of getting this ship moving. To answer his question directly, yes it will. The new siting strategy will cover the possibility of the deployment of all technologies —SMR, AMR and gigawatt-scale reactors. I welcome my right hon. Friend’s support.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Richard Thomson (Gordon) (SNP)]

I thank the Minister for advance sight of his statement. He is absolutely right in one respect: the Scottish Government do not support the development of new nuclear power in Scotland. The reasons for that are simple: beside the environmental concerns, the economics do not lie. Nuclear power is slow to deliver and horrendously expensive, and the policy of recent years under Labour and Conservative Governments has been simply to allow private companies to privatise the profits while the risks are socialised for taxpayers. We on this side of the House—at least, on the SNP Benches—all know that Scotland’s comparative advantages lie in hydrogen and renewables, both areas in which the Scottish Government’s ambitions appear to considerably outstrip those of the current UK Government.

May I ask the Minister two simple questions? First, despite his disagreement with the Scottish Government’s stance on planning and nuclear, will he and his Government respect the devolution settlement as it stands? Secondly, will he give an undertaking, as none of his predecessors over the last half century or more have been able to do, that when the multibillion-pound decommissioning liabilities become live for any new generation of nuclear power stations, they will lie squarely on the private companies that have benefited in the preceding decades and will not fall on the taxpayer?

[Andrew Bowie]

The Scottish National party, like almost every nationalist party in the world, has a misplaced belief in its own exceptionalism, and nowhere is that more true than on nuclear. At COP28, we saw over 30 countries come together to pledge to increase civil nuclear capacity around the world by a third, so clear and obvious is it that nuclear is essential not just in ensuring our energy security, benefiting local communities and driving forward our economy, but in reaching our net zero goals and ensuring that we have a cleaner energy baseload in the future. Indeed, there is no net zero without nuclear.

It pains me, especially as a Scottish Member of Parliament, that the Scottish Government’s wrong-headed position on this remains extant. I would very much welcome a change of direction within the Scottish Government. I urge the Scottish National party to look around the world at the countries joining with us in this nuclear renaissance and revival, and to think of the huge benefits that could be brought to Scotland, with its proud history in nuclear going back many decades, if it were to join us on this journey.

Of course we respect the devolution settlement. We are absolutely committed to maintaining it. What I urge, though, is a change of direction, a change of approach and a change of position by the Scottish Government, so that the Scottish people, the Scottish economy and the Scottish environment can benefit from future investment in nuclear that will be felt in England and Wales, and indeed in so many other countries around the world.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Environmental Audit Committee.

[Philip Dunne (Ludlow) (Con)]

Today’s statement provides welcome clarity about the Government’s road map for the delivery and revival of new nuclear energy capacity, and I will be writing on behalf of my Committee to the Minister shortly to raise some points about the SMR competition that he has touched on today. Notwithstanding the grudging support from those on the Opposition Front Bench, what steps is my hon. Friend taking to build the broad consensus behind this essential component of the delivery of net zero, so that the road map does not fall victim to the short-term thinking that bedevilled the delivery of a safe and effective renewal of nuclear capacity in the past, notably under the previous Labour Government?

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[Andrew Bowie]

I thank my hon. Friend for his question and for his support at this exciting moment. Of course, many sites will be looked at for future nuclear development, and in every case they will have to adhere to the stringent, strong and gold-plated environmental standards that we expect of nuclear licensed sites across the United Kingdom.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I do apologise for having called two Members in a row from the same side. I shall immediately correct myself by calling two from the Opposition side.

[Wera Hobhouse (Bath) (LD)]

Thank you, Madam Deputy Speaker—I took no offence at all; it is fully understood.

The best route to affordable energy security is renewables. Nuclear power is blighted by delays and rocketing costs, and the Government are never honest about its much higher costs compared with renewables. On the Government’s watch, renewables have faced long delays and the costs for offshore wind development have increased by 40%. Will a renewables road map soon follow the statement to address those challenges and ensure that the Government do not lose their competitive advantage in offshore wind development?

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his statement. It is great that the Government have outlined plans for the biggest expansion of nuclear power in 70 years to reduce energy bills, which so many of our constituents struggle with on a daily basis. Minister, I ask you this question because you admitted that Northern Ireland—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Gentleman knows that he should not refer directly to the Minister. Let us have another go.

[Jim Shannon]

Apologies, Madam Deputy Speaker. What provisions does the UK civil nuclear plan include to involve Northern Ireland? How will it ensure that the region’s perspectives and concerns are adequately taken into account in the development and implementation of nuclear politics and policies, so that we can create jobs and strengthen our economy at the same time as other areas in the United Kingdom?

COP28

Baroness Winterton of Doncaster Excerpts

Thursday 14th December 2023 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

May I thank you, Madam Deputy Speaker, as well as all the staff of this House and colleagues across the House, for all your hard work this year? I wish everyone a very happy Christmas.

It was a privilege to attend the summit in Dubai over the past two weeks. I was proud to represent a country that has cut greenhouse gas emissions more than any other major economy since 1990; that has boosted our share of renewable electricity from a rather dismal 7% in 2010 to almost half today, while almost entirely phasing out coal power; that has led the world in mobilising green finance; and that is now ensuring that we bring the British public with us on the transition to net zero, thanks to the Prime Minister’s plans to protect families from unnecessary costs and give people more time to adapt to changes.

While we are on track, the world is not. The global stocktake confirmed that emissions need to peak by 2025 and fall by 43% between 2019 and 2030 to achieve the Paris goal of limiting warming to 1.5°C. The current pace of global decarbonisation is well behind that trajectory, and the urgency of the climate challenge means that we cannot delay any further.

The Russian invasion of Ukraine has underlined the importance of transitioning towards renewables, which are less vulnerable to price shocks. That is why our objectives throughout COP28 were clear: we needed to agree urgent action to ensure 1.5° remains viable as a ceiling, including trebling global renewables, doubling energy efficiency and phasing out unabated fossil fuels; and we needed to reform international finance to unlock the trillions required in climate funding.

Today I am delighted to say that we have secured a final agreement that supports those goals. For the first time ever, we have a global agreement on a transition away from fossil fuels. The agreement on fossil fuels builds and expands on the UK’s leadership at COP26, which had the first reference to phasing down coal power, secured agreements behind efforts to decarbonise key sectors of the global economy and, most notably, saw the proportion of global GDP covered by net zero targets increase from around 30% to 90% during our presidency.

This week’s COP28 agreement is not perfect. We wanted to see more action on coal, and on ending the construction of new coal power plants in particular. Like some of the small island states, we wanted greater clarity and fewer loopholes in the agreement. None the less, this is a turning point. We are unifying the world around a common commitment, listening to the islanders of the Pacific and elsewhere, whose voices must be heard, and showing that we are responding to the science by moving away from fossil fuels and raising a torch to inspire action.

Throughout the summit, the UK made significant progress on delivering that action, building on our legacy from COP26. We were pleased to be one of over 130 countries to support the global pledge to triple renewable energy and double energy efficiency by 2030. As co-chair of the Powering Past Coal Alliance, I was delighted to welcome 13 new members, including the United States of America and the United Arab Emirates—all committing to phase out unabated coal power. Through the Energy Transition Council, we are working with developing countries via our rapid response facility to help support them through the energy transition.

We also announced £1.6 billion-worth of new international climate finance projects, which will support developing countries to transition to net zero and adapt to the impacts of climate change, while also expanding green industries on a global scale. We joined the UAE’s climate finance framework, which sets out new principles to reform the global financial system, and we announced plans to launch the climate investment funds capital market mechanism to raise up to £7.5 billion over the next decade for green projects.

However, we recognise that keeping global warming to less than 1.5° is impossible without urgent action to protect, sustainably manage and restore forests. Following the historic agreement at Glasgow to halt and reverse deforestation by 2030, the Prime Minister made forests and nature a top priority for COP28. We agreed £576 million to safeguard 10 million hectares of forests and help half a million people in poor, rural communities, which are the most vulnerable to deforestation. I joined Brazil’s Environment Minister, Marina Silva, to welcome the Prime Minister’s pledge of a further £35 million for Brazil’s Amazon fund. That is on top of the £80 million we announced earlier this year, making the UK one of the scheme’s top three contributors. Finally, the new forest risk commodity measures in the Environment Act 2021 will ensure that there is no space on our supermarket shelves for products linked to deforestation.

However, that is not all. We secured the expansion of the breakthrough agenda—our clean technology accelerator—to cover 57 members and seven economic sectors, representing 60% of global emissions. Up to £185 million was announced for a first-of-a-kind, UK-led facility to help countries across Africa, Asia and Latin America to commercialise green technologies. Essential commitments to support resilience included up to £60 million of UK funding for loss and damage—a significant outcome of Sharm el-Sheikh, now carried forward into operation—an agreement on the framework for the global goal on adaptation, and an international green public procurement pledge to boost the use of green steel, cement and concrete. The UK endorsed a bold plan to triple nuclear power capacity globally, mirroring our domestic strategy for nuclear to make up a quarter of electricity production by 2050. There were also new partnerships with Brazil supporting industrial decarbonisation and hydrogen transitions, and a roadmap for the expansion of zero-emission vehicles in the developing world, backed by major donor countries. The great news is that British businesses will benefit hugely from all that, because as the world decarbonises it will use British expertise and skills as a springboard to realise the net zero transition.

Just as the Prime Minister announced measures to ensure that we bring consumers and households with us on the energy transition, our negotiations at COP have been about bringing countries with us, helping richer nations to set an example, encouraging the biggest polluters to replace fossil fuels with clean energy and working with developing nations to finance green growth. COPs are, above all, about people and our long-standing, trusted relationships with partners all around the world— from big emitters to small island developing states—afforded us significant influence. I am proud of the role that my team played.

I pay tribute to the UAE presidency and Dr Sultan al-Jaber, who acted as COP President, as well as a host of others, including the High Ambition Coalition for its leadership jointly to deliver this result. I was delighted that the UK was able to support a strong delegation of international parliamentarians at this COP, including the first ever pavilion dedicated to parliamentarians. Despite this landmark agreement, and however successful the UK’s record to date, we still have such a long way to go to finance the transition and achieve our global ambitions, so the UK will continue to encourage others to join the UK on a net zero pathway in this critical decade and help deliver a just, prosperous and secure future for all the peoples of the planet.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

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[Graham Stuart]

I pay tribute to my right hon. Friend for his efforts at COP26 in Glasgow, including the significant measure on phasing down coal. [Interruption.] Could the right hon. Member for Doncaster North (Edward Miliband) be quiet for one second? He did so little in government, and he has so much to say now—it is quite a contrast, is it not?

Returning to my right hon. Friend’s serious and respectful question on oil and gas licences, as I said, we are a net importer. We are producing our own oil and gas to ever higher standards, and I am proud of the North sea transition deal, which has seen the industry work with Government to cut emissions from production by 50% by 2030. My challenge back to my right hon. Friend is this: in what way is there any linkage between producing to ever higher standards and a falling level of oil and gas? New licences simply allow us to manage the decline of a basin that is expected to fall at 7% a year and to halve in a decade, and will see us growing our independence from imports, even with those new licences. That is why we are issuing them.

On the issue of subsidies, our tax regime is set at 75% —among the highest in the whole world. [Interruption.] The right hon. Member for Doncaster North cannot win the argument when he is on his feet, so he tries to do it when he is sitting down. If only he had shown the same energy when he was in government, we would not have had the woeful inheritance that we alone have had to turn round. We are expecting £50 billion in taxes from the oil and gas sector, and without new licences to allow for the greening of the basin so that we reduce emissions, we would not be able to ensure that each barrel of oil and production of gas comes with a lower level of production emissions than it does today. That is our ambition.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

I thank the Minister for advance sight of his statement.

At COP26 in Glasgow, Scotland became the first developed nation in the world to commit funding to address loss and damage. Does the Minister agree that loss and damage funding should be prioritised to meet the needs of the communities that need it most, and distributed in a way that does not add to the debt burden of the global south? Scotland’s First Minister has welcomed the deal, especially the new pledge of $700 million for loss and damage, but of course, that still falls short of the funding that will ultimately be required. What is the UK doing to push for more funding down the line, and how much will it contribute now?

The former president of COP, the right hon. Member for Reading West (Sir Alok Sharma), made an excellent point. The new agreement reached at COP28 commits all countries to transition away from fossil fuels. We welcome that agreement, to which the UK is of course a signatory. Can the Minister outline how the UK Government’s plan to increase oil production in the UK aligns with the plans to transition away from fossil fuels, and how can we trust them?