Carbon Capture, Usage and Storage
Wera Hobhouse Excerpts(4 months, 1 week ago)
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Ed Miliband
My hon. Friend is entirely right. The challenge for the Government, and for the companies that have won these contracts, is to make sure that we create jobs in the supply chain, including in her constituency. I look forward to meeting her to discuss this.
Wera Hobhouse (Bath) (LD)
Waste incinerators release, on average, a tonne of CO2 for every tonne of waste incinerated. They are usually called “energy from waste” but their environmental value is questionable unless carbon capture is attached. Yes, we need to recycle more, but energy from waste will be with us for years to come. Will the Secretary of State commit to significantly scaling up carbon capture for energy from waste plants?
Ed Miliband
The hon. Lady is absolutely right, and it is why one of the projects we funded is an energy from waste project. This is exactly the kind of role that CCS can play.
COP29: UK Priorities
Wera Hobhouse Excerpts(5 months ago)
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Wera Hobhouse (Bath) (LD)
I congratulate everybody who has contributed to this important debate. Many different points were made, and all were made well and passionately.
The new hon. Member for Ealing Southall (Deirdre Costigan) was absolutely right to say in her passionate opening speech that it is unacceptable when Governments make international agreements and then do not honour them. That is not only catastrophic for our climate action but it undermines our international reputation.
The hon. Members for Bristol Central (Carla Denyer) and for Stratford and Bow (Uma Kumaran) were absolutely right to say that the UK has a huge responsibility to show climate leadership.
The hon. Member for Whitehaven and Workington (Josh MacAlister) made a strong plea for developing our nuclear capacity. I, too, am not entirely certain about his point, but I am sure the Government will be able to persuade us on that—or not, as the case may be.
The hon. Member for Strangford (Jim Shannon), who never misses an opportunity to speak in debates about net zero, spoke up for the nations that are being left behind and made the point that we need to bring everybody with us. I do not agree with everything the hon. Gentleman says about climate change, but we definitely agree on that point.
The hon. Member for North Herefordshire (Ellie Chowns) asked the Government what progress we are making on energy efficiency in housing. She made her point well, and it has very much been heard by us Liberal Democrats.
I pay tribute to my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) for her intervention, in which she said that we need, and should work towards having, a climate envoy at COP29.
Last but not least, we heard powerful points on the importance of water, which is becoming a massive issue with climate change, as water shortages will drive a lot of displacement. Those points were well made.
The UN is not a world Government, and COP can work only on a consensual basis. Effective diplomacy is therefore essential in coming to arrangements. Although the agreements made at COPs are not legally binding, we must not underestimate their importance in setting the global agenda on climate change. COPs are also crucial to getting polluters to engage with climate-vulnerable countries, many of which have been severely impacted by climate change and are on the brink of climate catastrophe.
COP28 resulted in countries agreeing to “transition away” from fossil fuels, using the strongest language ever used in respect of the phasing out of fossil fuels. This marked a significant step forward. Regrettably, despite excitement that the COP28 agreement saw the beginning of the end for fossil fuels, the actual text was undermined by loopholes and was flawed given the absence of timescales. That means there is even more emphasis on the upcoming COP29 summit, which will be more important than ever. Strengthening the wording on the acceleration away from fossil fuels must be the first priority. That will require rapid and sustained emission reduction, and increasing renewables will be crucial.
The Liberal Democrats absolutely agree with the Green party about the focus on renewables. At COP28, a commitment was made to triple renewable energy. The commitment marks progress; now, action must follow. Climate finance must be increased if the agreements of COP28 are to be honoured.
Here at home, I urge everybody to support the climate and nature Bill. Nature is critical for effective climate action, and biodiversity is our greatest natural defence against climate change. The CAN Bill would require the Government to rapidly reduce our carbon footprint and protect and restore ecosystems, and would ensure that the Government take responsibility for the environmental damage caused by our supply chains.
Halting and reversing deforestation made it into the final text of a COP agreement for the first time at COP28, with Governments agreeing on the need to halt and reverse deforestation by 2030. But forests continue to be decimated for crops. Reversing deforestation is also a responsibility for importing countries such as the UK, which must eliminate deforestation from their supply chains. Deforestation must be a big focus for COP29, and ideas such as a compensation fund for conserving standing rainforest should be part of the discussion.
No country should be left behind in our shared goal of halting warming. Article 6 of the Paris agreement is all about helping countries to work together to meet their climate goals through the voluntary transfer of carbon credits. At COP28, we were unable to finalise this; we look ahead to COP29 to make it easier for countries to collaborate on lower emissions.
Finalising the new collective quantified goal on climate finance must also be a focus. The NCQG aims to set a new financial target for supporting developing countries in their climate actions. The timeframe for the goal is crucial: a short goal will inspire a sense of urgency to get finance flowing where it is needed.
It is reassuring that the new Government have committed to ending licensing for exploring new oil and gas, and I hope Labour will take this promising start on to the world stage and negotiate for an agreement that goes further and faster than the agreement made last year. It is particularly important that the more developed nations remain the driving force behind the global journey to net zero, setting a good example and bringing the international community along with us.
At COP28 we understood that COP’s work was based on three pillars of action: mitigation, adaptation and loss and damage. Mitigation is where we have made reasonable progress; adaptation is the next challenge.
The second pillar of climate change is adaptation. It is essential to adjust to climate change as it is happening. As we speak now, we see it everywhere. The Climate Change Committee has advised that the gap between the level of climate risk we face and the level of adaptation under way has widened in the past few years. Estimated adaptation costs in developing countries are five to 10 times greater than current public adaptation finance flows. At home, sea levels could rise by over a metre by the end of the century.
The more we put off adaptation measures, the more difficult and expensive it will be in the future. National adaptation plans or NAPs—another acronym—are a vital part of this. COP29 must focus on financial and technical assistance, and close the adaptation finance gap. Another part of the COP28 agreement that needs action is the overreaching global goal of adaptation. A long time in the making, that agreement is welcome, but its framework does not adequately address the financial support needed. The GGA requires quantified, measurable targets to mobilise finance.
The third and final pillar, and the one of most importance if we look around the planet, is loss and damage. The launch of the loss and damage fund at COP28 was a breakthrough: it marked an important step in Britian’s relationship with climate-vulnerable countries. However, the money that was pledged was miserable. It is shameful that we, a rich nation, could not come up with more. COP29 should establish long-term commitments from countries to make adequate annual contributions.
Under the previous Conservative Government, the UK’s contribution to the loss and damage fund came from pre-existing climate finance commitments and the foreign aid budget. Foreign aid is vital, but it is separate from climate action; it is about education, health and so on. To put the two together was either cynical or a huge misunderstanding; it makes a mockery of the whole principle. The idea of the fund is that richer nations should support poorer ones, no strings attached. Simply redirecting pre-pledged finances to the fund was a real dereliction of duty. COP29 is the moment for countries to stand by their pledges by announcing concrete steps to achieve them. The implementation of the fund must be led by the needs of countries vulnerable to climate change, rather than the interests of donor countries.
To conclude, national and international action on climate change is not a nice-to-have luxury, but an imperative to avoid the inevitable destruction of livelihoods around the world and the potential of large-scale conflict and mass displacement. The stakes could not be higher. We might have to reinvest a fraction of our wealth, but the benefits of that are immeasurable.
Mark Garnier (Wyre Forest) (Con)
It is a pleasure to serve under your leadership, Dr Huq, and to respond to the hon. Member for Ealing Southall (Deirdre Costigan), who gave a passionate speech. I have been a Member of Parliament for 14 years, and it is a great joy to see so many new Members present for the debate and contributing to it. All the speeches so far have been by new Members, with the exception of that by the hon. Member for Strangford (Jim Shannon)—a regular feature that new Members will get to know well. Parliaments need to refresh, and we have seen a great refreshment over the last election. It is a delight to respond to some very passionate and thoughtful speeches.
The hon. Member for Ealing Southall raised a point that we all agree on, and which is the most important thing to remember: all of us in every part of this House want to achieve net zero, become carbon-neutral and get to a point where we are not relying on fossil fuels; but at the end of the day, we have to look at how we achieve that. It is the detail that I suspect we will find ourselves disagreeing on.
As we discuss the future of our climate commitments, it is essential that we recognise the substantial progress that the Conservative Government made over the last few years. There have been a lot of speeches about how we have not done well, but I remind the House that we had some successes. From 2010, the Conservative Government led the way on climate change by making the UK the first major economy to legislate a 2050 net zero emissions target. We achieved a remarkable feat: the UK cut its emissions by 50% between 1990 and 2022, while growing the economy by 79%. That is a clear demonstration that we can achieve economic growth while reducing our carbon footprint—a very important point. It is worth putting that in perspective. During the same period, France reduced its emissions by only 23%, and the USA saw no change in its emissions between 1990 and 2021. The independent Committee on Climate Change affirmed that our net zero target was feasible, deliverable and could be met at the same cost that was estimated for our previous target of an 80% reduction.
Since the election, there has been much discussion on the plans to make the grid carbon-neutral by 2030, yet since coming to power the new Labour Government have been relatively quiet on their plans for net zero targets—something that I hope the Minister will change today. We are looking at net zero, not making the grid carbon-neutral, but if the Government’s plans to decarbonise the energy grid are anything to go by, we could face the risk of being over-ambitious. That means they may leave working families faced with the prospects of picking up the bill, and I hope the Minister today will be honest with the public about the costs and the trade-offs that will be involved.
The Opposition believe it is vital that the Government take a more pragmatic, proportionate and realistic approach, to ensure sustained public support for our goals. That is an important point—we have to win the support of the public in doing this. Otherwise, the current Government may find—as we did—that if they get things wrong, there may be a change in Government and a different approach could be brought in by an electorate who do not necessarily understand the technicalities of achieving net zero.
Before I go into the latest rounds of negotiations in Baku in November, I want to reflect quickly on our global leadership, as well as the success we had at COP26 in Glasgow. It is worth mentioning that Alok Sharma, who was the president, took his seat in the House of Lords yesterday. He attended Cabinet in the last Government and acted as a quasi climate envoy—a point that a number of people have raised. So we did have somebody championing the climate in Cabinet, and he is now in the House of Lords and will continue doing so.
The historic Glasgow climate pact ensured that we kept alive the 1.5 degree commitment. Since the UK took over the COP presidency, over 90% of the world’s GDP is now covered by net zero commitments, and that is up from 30%. More than 153 countries have put forward new 2030 nationally determined contributions, which effectively amount to climate plans. Record levels of finance have been pledged to help countries adapt to the effects of climate change through the adaptation fund and the least-developed country fund, both of which were established under the UK presidency. Finally, after six years of negotiations, we confirmed the Paris rulebook, which sets out the instructions and products needed to fully implement the Paris agreement on climate change.
Looking ahead to COP29, we need to focus on balancing our ambitious climate goals with the realities faced by British families and businesses. As a Conservative Government, that meant that we were committed to practical adjustments where necessary, but British families still want to know where a Labour Government stand with the net zero plans. Will they stand by their manifesto commitment to reverse the extension on the ban of petrol and diesel cars from 2030 to 2035? Will they commit to moving homes from gas boilers to heat pumps? How will they help landlords in getting homes ready for their new minimum energy performance certificate requirements? How will they manage to maintain energy security and independence for the UK while banning the extraction of oil and gas in the North sea? I know that point has been raised on many occasions, and the co-leader of the Green party, the hon. Member for Bristol Central (Carla Denyer), raised a very important point about Rosebank and what is going on in the North sea.
While the hon. Lady was making her speech, I checked how the grid was using energy. At 9.45 am we were using about 30 GW of power. Wind accounted for 37.5% of that, which is fantastic, but gas was 17%, nuclear was 16% and solar was 7.5%. We were importing 16.3% from Denmark—where the state of green energy is fantastic—Norway, France, Holland and Belgium. The bottom line is that we all want to get rid of fossil fuels, but we do not want to be reliant on foreign fossil fuels. That is a vulnerability, and that is why we have to be pragmatic. I absolutely take the hon. Lady’s point about getting away from Rosebank, but we do not want to be importing from Russia. We want to have security as we transition to net zero. That is a really important point.
In his speech on nuclear, the hon. Member for Whitehaven and Workington (Josh MacAlister) raised the most important point about this: what we need is dispatchable baseload power. We must have dispatchable baseload power, and wind and solar do not provide that.
Wera Hobhouse
The hon. Gentleman just said “dispatchable” baseload power, and that is exactly what nuclear is not. If we just have a baseload that trundles along, renewables will be the ones we turn off and the nuclear will keep going; that is a waste of a lot of renewable energy, and it already happens. Does not the hon. Gentleman agree that we need to rethink our idea about baseload as we move into a more flexible, renewable world?
Great British Energy Bill
Wera Hobhouse ExcerptsThursday 5th September 2024
(5 months, 1 week ago)
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Ed Miliband
My hon. Friend is a great champion for his area and he is right. I am sure he reflects the feelings of every right hon. and hon. Member, whatever side of the House they are on, that there are huge opportunities in this sector. We intend to exploit them. I look forward to seeing his constituency.
Ed Miliband
I will make a bit more progress. I have set out our case—a case that the British people overwhelmingly support. According to post-election polling by More in Common, Great British Energy was supported by an overwhelming 73% of voters and opposed by just 8%. It appears from the Conservative’s reasoned amendment—so-called—that Conservative Members will vote against the Bill today. If they do that, they will do something remarkable: they will go one step further than refusing to listen to the people who did not vote for them by refusing to listen to the people who did vote for them—quite a remarkable feat by an Opposition—because Great British Energy was supported not just by Labour voters, but by Conservative voters by a majority of four to one—56% to 14%.
Ed Miliband
I will make a bit more progress. [Interruption.] Conservative Members are still in the “the show was great but the audience was poor” stage of Opposition. Let me give them some advice—they will get out of that over time, but they are in the early stages now.
Because I get my kicks in strange ways, for a bit of light entertainment, I have been reading what the Conservative party leadership candidates have been saying. It is really interesting, honestly; it is quite fun reading. [Interruption.] Yes, somebody has got to do it. The right hon. Member for Tonbridge (Tom Tugendhat) said that people
“will never vote for a party that they have stopped taking seriously.”
Well, that is true. He said they should be
“given credit for seeing the errors that we may make and correcting them.”
Correct. The right hon. Member for North West Essex (Mrs Badenoch)—I believe the shadow Minister, the right hon. Member for East Surrey (Claire Coutinho), is the mastermind for her campaign—said it was no good
“having the same policy arguments from the last Parliament.”
The shadow Minister should take those words to heart.
I agree with those candidates that the Conservative party needs to move on. I am in a generous mood, Madam Deputy Speaker. I have been involved in leadership campaigns, so I have some advice. I have a free idea for the not very famous five still left in the Tory leadership competition: back an idea that the public support. Back an idea that Conservative voters support; back an idea that Labour voters support; back an idea that Reform voters support—Reform Members are not here. Back an idea that Liberal Democrat voters support. They should move on from the arguments of the last Parliament, show a bit of bravery—even break the Whip and stand out from the crowd. They should break from the past and back our Bill today.
Wera Hobhouse
The Secretary of State knows I share his passion and ambition to get to net zero. One big concern about GB Energy is that it will crowd out, rather than crowd in investment. Will he enlarge on how he intends to crowd in investment into green energy?
Ed Miliband
I am very surprised by the Liberal Democrats saying that. It is slightly “orange book” Liberal Democrats, if I may put it that way, for those old enough to remember. I say respectfully to the hon. Lady and all Members of the House: look around the world at what is happening before our eyes. There is catalytic public investment—public investment levering in private investment. The whole old fashioned, free market 1980s argument about crowding out turns out to be wrong. Just look at what is happening in America. Why is the money flowing to the United States? In part, because of the catalytic public investment. [Interruption.] I can see Opposition Members are going to be slow learners.
Great British Energy is at the heart of our long-term plan to accelerate the transition to clean energy and ensure we are never at the mercy of volatile fossil fuel markets again. It will speed up delivery, create good jobs and protect family finances, and we will reap the benefits for generations to come. I commend the Bill to the House.
Claire Coutinho
If the hon. Lady would bravely like to say that the company will generate energy, I am sure that she would like to tell us how much, because no one else seems able to.
Claire Coutinho
I am sorry, but I will make some progress.
Finally—this is really important—the Secretary of State pays lip service to nuclear, but we know that when Labour was last in power it did not start a single nuclear power plant in all its 14 years. All summer, there has been an eerie silence. On the capital raise for Sizewell C, which should be out by now—nothing. On the small modular reactor competition, which should be deciding its final projects now—nothing. We committed to a third large-scale nuclear power plant at Wylfa—again, nothing. We wrote to the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen, but once again he has refused to confirm any detail or, with regard to Wylfa, whether those plans are even in place. Can the Secretary of State say whether the creation of GB Energy is slowing down those projects and causing the timetable of these programmes, which will provide clean, cheap energy, to slip?
Claire Coutinho
That is a very fair question. I hope that the energy Minister, who I assume will wrap up the debate, will be able to provide some detail.
Far from being a super-nerd, the truth is that the Secretary of State is the ultimate career politician. He comes up with big titles and makes big promises to the public, but he has no idea how to deliver. My big fear—[Interruption.] He should listen, because it is an important point. My big fear is that he is losing focus on all the amazing technologies that will come online after 2030, whether it is fusion energy, the next generation of nuclear reactors or carbon capture. These are the innovative new technologies that will not just deal with the 1% of emissions in the UK but the 99% produced overseas. In Government, I focused a lot of my time on speeding up the development of those technologies. We launched the £1 billion green industries growth accelerator specifically to reduce any supply chain constraints, for example on cables. We provided almost £200 million to help the UK become the first commercial producer of advanced nuclear fuel outside Russia. We were making Britain one of the most exciting places in the world for fusion energy development, with £600 million of funding.
Wera Hobhouse
I thank the right hon. Member for giving way—finally. She is criticising the Government for the rushed target of decarbonising the grid by 2030. Can she enlighten the House on when the Conservative party would do it?
Claire Coutinho
I will. This is a critical point, which I have made in recent weeks. The point about having longer to decarbonise is that it gives time to develop British supply chains. That is exactly what I was doing. The green industries growth accelerator and some of the other things that I have talked about gave us time to set up British companies. Those things cannot be done in five years. There is a need to get project finance, to hire workers and train them, and to get planning permission. There is a huge amount that needs to be done. The fact that the Secretary of State wants to rush the transition and make it happen at breakneck speed is risking British jobs and livelihoods, and making us dependent on Chinese supply chains.
The Secretary of State has promised many things with the Bill, but he simply cannot set out any detail about the things that he wants to deliver. It would be a blank cheque for £8 billion of taxpayers’ money, with no plan, no evidence, and no numbers for the bill savings or profits that he has been promising the British public. That is why we cannot support the Bill as it stands.
Wera Hobhouse (Bath) (LD)
I congratulate the new hon. Member for Clwyd East (Becky Gittins) on a wonderful whistle-stop tour of her constituency, from wonderful dog walks to rowdy cows in fields and fascinating museums that testify to the history of her constituency. We lived in Liverpool for 10 years, many years ago, and we visited her constituency many times and had wonderful days there. I know how beautiful it is.
Championing renewable energy is in our DNA as Liberal Democrats. Renewables are clean, cheap and popular. We welcome the fact that the new Government are turning around the damaging attitude taken by the Conservative Government and are attempting to make the UK once more a global leader in getting to net zero. We are absolutely on the side of the Government when it comes to the ambitious targets that are being set to get to net zero. We are pleased that through the Bill new steps are being taken to restore British investment in the green economy. The Bill must ensure that renewable energy and home insulation can be rolled out at speed so that we meet our climate targets, bring down energy bills and provide green, well-paid jobs in the future.
The previous Conservative Government’s obsession with oil and gas left us in a mess. The dithering, delaying and even denying of the Tory Government held us back. I have often said that net zero is not like a bus that we can miss and say, “Whoops! We’ll get the next one.” This is a target that we cannot miss, and delaying is just as bad as denying that climate change is happening at all.
Wera Hobhouse
I am happy to give way; the right hon. Gentleman and I have had many discussions on this issue.
Graham Stuart
I wonder whether the hon. Lady knows of a single major economy on the planet that went faster than the previous Conservative Government in cutting emissions.
Wera Hobhouse
I am happy to respond to that, because I do believe that the UK was a global leader. There was cross-party agreement about net zero, but the last Government broke that agreement. That is our problem. Each year and each month matters when it comes to setting the pace to get to net zero. Instead of producing our own renewable energy, we were left reliant on fossil fuels—the energy of the past—and on dictators such as Vladimir Putin. In this unstable geopolitical environment, that was a death sentence and led to the catastrophe of the recent energy crisis.
Families are once again worried about another dramatic energy bill increase—we say that honestly to this Government and want to work with them on this issue—this time of £140 on a typical family’s annual energy bill. Pensioners are also rightly concerned about the Government’s plan to cut the winter fuel allowance for millions of the poorest and most vulnerable people. I raised the matter in business questions earlier and said what is important to us. We of course recognise that through the pension increase next April there will be relief for pensioners, but this winter, when things have become really difficult for pensioners, the Government should not make cuts before we have seen the benefits. We have been making that point and hope to work constructively. It is a political choice and, in our view, it is the wrong one, but it is pretty rich of the Conservative party to complain.
It is clear that if we are to hit our net zero targets, we must drive up investment in renewable energy. The Climate Change Committee’s 2024 progress report found that policy reversals and delays, together with inconsistent messaging, hindered progress just when acceleration was needed. Only around one third of the emission reductions required to meet the 2030 target are covered by our current plans. I challenged the shadow Secretary of State on what the Conservatives’ plans for decarbonising actually are, but we have had no answers. We must, for example, at least triple the operational capacity of offshore wind installations to meet our 2030 targets—and we Liberal Democrats absolutely believe in the 2030 targets.
New first-in-class renewable energy technologies are coming on the scene thick and fast, and the Government must find better mechanisms for funding them than we currently have in place. One example, if I may bring it up, is DRIFT Energy, which is based in my Bath constituency. I hope the Secretary of State is listening. DRIFT uses sailing ships to travel to the deep sea to harvest deep ocean wind and generate green hydrogen. Interesting technology is coming on board, but these new technologies still face many investment problems. The green hydrogen is then delivered to ports around the world—they are essentially fishing ships for energy. Truly novel technology like this does not fit neatly under a Department, so it becomes exceptionally hard to win grants, let alone multimillion-pound grant support. It is important that we are aware of that.
Max Wilkinson (Cheltenham) (LD)
Does my hon. Friend agree that we need the Bill to look at and include schemes like the Cheltenham green deal, run by Cheltenham borough council, through which local organisations that could not otherwise fund green schemes are able to access funding borrowed by the local council? Such schemes will then make money and provide a return for the taxpayer so that local areas can start producing more renewable energy for themselves—for example, through the investment in solar panels on the roof of Cheltenham Town football club.
Wera Hobhouse
As I progress with my speech, my hon. Friend will hear that our focus on local authorities, local decision making and local involvement is crucial. Let us ensure that our emerging technologies, which have the potential to be hugely valuable, are not overlooked or forced to seek support from abroad.
Mr Gideon Amos (Taunton and Wellington) (LD)
Does my hon. Friend agree that the Secretary of State should take on board one of the emerging technologies that could deliver the most for Great British Energy: the potential for tidal range energy? In a previous life, I was responsible for the consenting of the Swansea tidal lagoon, which unfortunately the previous Government failed to fund. It is the second biggest tidal range in the world and could be a massive success story for Great British Energy and the UK. Does she agree that the Secretary of State should take that on board as a key objective of Great British Energy?
Wera Hobhouse
I totally agree, and I am sure that the Government will agree too. A lot of these decisions are ultimately about value for money; as these tidal range technologies come on board, they can become cheaper. I hear the Government are saying that this is exactly the plan: that, where it is currently expensive, Great British Energy can come in and provide support. We understand and support that principle.
This new Government must ensure that they have clear and consistent messages. Delays to the phase-out dates of fossil-fuel vehicles and boilers, as we saw under the last Government, have sent mixed signals to investors, businesses and consumers. We hope that GB Energy will go some way in providing confidence to other investment bodies and the wider industry that Britain’s green economy is open for business.
We Liberal Democrats realise the importance of community buy-in. The new Government must put local voices at the centre of the journey to deliver net zero. We need to win hearts and minds to persuade people that net zero projects are good for their communities, for their pockets and for our future national economy.
Sarah Dyke (Glastonbury and Somerton) (LD)
The Government have said that they believe communities that host renewable energy infrastructure should benefit from it, but there are currently no ways to force developers of on-ground mounted solar panel farms to provide community benefits. Does my hon. Friend agree that the Government should use this Bill to make provisions for guaranteed community benefits in these circumstances?
Wera Hobhouse
We have already had some detailed discussions about what we are doing with communities that have to host vital infrastructure, and it is important that the Government assure local communities and the Liberal Democrats that this will happen. As the Bill progresses, we need to discuss how we can get legal assurances and whether the Bill is the right place for this.
As I have said, we need to win hearts and minds to persuade people. Only with local consent can we successfully deliver the path to net zero, which is why we have called for communities living near large-scale infrastructure projects to receive community benefits—for example, through reducing energy costs and funding local initiatives. We are keen to work collaboratively to ensure that these benefits are in place in legislation.
We Liberal Democrats welcome the inclusion of clause 3, which lists specifically all the objects of GB Energy. Although those aims all have their merits, the Government have failed to include anything on community energy. That is especially disappointing—[Interruption.] May I continue? I will lay this out as I understand it—I worked on the all-party parliamentary group for community energy, and I will get to my point. It is especially disappointing that the new Government have failed to include anything on community energy, given their welcome words in the House about how important it is to enable community energy—I hear it again and again. It is no longer about words; we now have a Bill before us in which we can make this happen.
I will lay out what I think is necessary. Without the inclusion of community energy, the Bill will be a major missed opportunity. In the past, the now Secretary of State and his Ministers have been vocal champions of community energy. In a previous debate on making Britain a clean energy superpower, the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), stated:
“One of the missions of GB Energy will be around the idea of community-owned power.”
He has also advocated for local communities to have
“some sense of ownership of the assets”—[Official Report, 26 July 2024; Vol. 752, c. 942.]
that they generate. Last year, the Secretary of State himself tabled two enabling amendments on community energy to the then Energy Bill; his new clause 53 specifically would have required large-scale energy suppliers to offer a special agreement to small-scale energy companies. He has spoken at length about Labour’s local power plan, much of which we are in agreement with, but where is the commitment to community energy in this Bill?
The biggest issue we identify is that energy supply licensing conditions hinder small community energy projects from selling directly to consumers. In turn, this makes it difficult to retain advantages for local communities—discounts on their energy bills, for example, or raising new money to invest in new projects. The high burdens and costs currently involved in being a licensed energy supplier mean that not a single community energy project in all the UK can sell its power directly to local people. Locally sourced energy does not travel further across the nationwide grid, and therefore reduces that constraint on it, but the cost-benefits of selling locally produced energy to local consumers are not going to community projects and nor do they benefit the consumer. That must change. Regulatory changes are required; the Government must put them in place or stop talking about their support for community energy.
Community energy schemes need to receive a guaranteed, discounted price for the clean electricity that they contribute to the energy system. If the costs of selling their power to local households and businesses were proportionate, many more community energy schemes would become financially viable and we would get many more than we have; I urge the Government to really look at our concerns and what we can include in the Bill to make these regulatory changes. Clause 3 is the ideal place to add community energy and ensure that it is one of Great British Energy’s objects.
To conclude, we Liberal Democrats welcome the steps being taken to restore British investment in renewable energy after the mess left by the previous Government. These steps will help us to bring down energy bills, create high-quality jobs, increase our energy security and, of course, reach net zero. However, there is a clear gap in this Bill for community energy, despite Labour’s manifesto committing to it, and we urge the Government to listen to our concerns.
Several hon. Members rose—
Sir Bernard Jenkin (Harwich and North Essex) (Con)
Let me be the first to congratulate the hon. Member for Northampton South (Mike Reader) on his maiden speech. He has demonstrated in two ways that he is quite a rare beast. Being an engineer is not a widely held profession in this House, and he will no doubt bring great value with that expertise and experience, but his business experience is also extremely valuable. I am afraid that if he looks around him on the Labour Benches, he will see precious few people with any business experience—as the Secretary of State has shown with his Bill.
The Bill is about setting up a shell company. That is it. The idea that that constitutes an energy policy is a complete myth. In fact, the Government have not even produced an energy policy. There has not been a White Paper on UK energy policy under this Government. There are no pages full of data and numbers to give us any confidence that the Government know what they are trying to achieve, how they will achieve it, or what the risks are.
In fact, that was given away in an astonishing letter that the Secretary of State wrote to the director of the electricity system operator, asking for all the information that one would expect the Government to have given that this was a major platform in their manifesto. [Interruption.] The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), shakes his head—I will give way to him if he wants to intervene—but where are the numbers? Where is the data backing up this wild assertion that just going all out for renewables will provide security of supply and lower energy costs? It is a mantra that Labour Members keep repeating to themselves with increasing enthusiasm and vehemence to make up for the fact that they have no numbers to back up their assertions.
Let me be clear about one thing: I am an advocate of achieving net zero. I believe in the target of net zero by 2050—indeed, I am a member of the net zero all-party parliamentary group. When Members hear me speak, they are not listening to some luddite or climate change denier. I want this policy to work, but there are very considerable risks, which are evidenced by reading between the lines for what is not in the Secretary of State’s letter and what is clearly flagged in Fintan Slye’s response to it.
Wera Hobhouse
Does the hon. Member not recognise that under the previous Government, the UK was falling badly behind on investment, when other countries— particularly the US—had transformed the investment that they were drawing in by making very big Government commitments to some projects, particularly nascent ones? Does he not recognise that that sort of Government support makes a big difference to business confidence?
Sir Bernard Jenkin
I do not agree with that, simply because we have seen massive investment in renewables over the past 14 years, as the former Minister, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), and the shadow Secretary of State, my right hon. Friend the Member for East Surrey (Claire Coutinho), set out. We have been making fantastic progress with bringing renewables on stream, but there are considerable questions to ask. I wish it were as simple as setting up a shell company and saying, “We are going to get the state to do everything”, but I am afraid it is not. As the shadow Secretary of State pointed out, Ørsted and EDF make massive losses, and either the taxpayer has to pay for those losses or those costs go on to electricity bills.
The Secretary of State announced on Tuesday that we have got all this renewable capacity coming on stream—enough to power 11 million homes. That is if we match the maximum capacity of the renewables with the average annual demand of those homes, but of course renewables are intermittent. It seems such an obvious thing to say, but we have to say it: sometimes the sun is shining, sometimes the wind is blowing, and sometimes we have enough water for hydroelectric power, but sometimes not. In the winter months, solar makes very little contribution—it makes no contribution in the dark, at night. [Interruption.] It may seem obvious, and the hon. Member for Stroud (Dr Opher) may laugh, but we need to point these things out, because when the Secretary of State says that renewables are cheaper than fossil fuels, he is comparing the strike price with the cost of buying marginal supply capacity when we need that extra marginal supply.
The strike price will not be reflected in our electricity bills, because we have to add in other things, such as system balancing costs. We have to add in grid infrastructure costs, because renewables require massive investment in grid infrastructure. We have to add in the costs of importing through interconnectors when we do not have enough domestic supply. We have not begun to factor in storage costs—the storage capacity of our electricity system is still miniscule. Members should read the Royal Society paper on creating electricity storage in this country: it is going to be astronomically expensive, and will probably still not be enough. Then there are constraint payments—oh, yes, the constraint payments. This year, we are paying £500 million to renewable producers under the contracts for difference scheme not to produce electricity when they can produce it, because that is how the system works. That is how we have attracted so much investment, but those payments are going to be about £1.5 billion next year.
I would like the Government to produce some forecasts. How much will the balancing costs be in each year over the next 10 or 15 years? How much grid infrastructure investment will need to be funded? That appears on our electricity bills—it is the standing charge, and boy, that charge is going to go up with all the infrastructure investment that we will require. How much will we have to spend on importing electricity? The two interconnectors coming into East Anglia as part of the Norwich to Tilbury programme will be importing electricity. They are not for exporting, because the only security of supply we will have if we have shut down all our combined cycle gas power stations by 2030 is from other places.
Contracts for Difference
Wera Hobhouse Excerpts(5 months, 1 week ago)
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Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
We Liberal Democrats very much welcome the results of this round. It is a significant improvement on last year, when the previous Conservative Government completely failed, with zero bids from the onshore wind developers.
The results show that the CfD programme is back on track. They demonstrate the power of industry and Government working together to identify a fixed problem, so that we can widen the level of private sector investment we bring in, which is required for a clean power system transition.
Britain’s unique geography, with its abundance of natural resources, is an asset. We must harness the wind and the world’s largest tides. It is hugely encouraging that a record-breaking amount of solar capacity has been procured. Whatever the Conservatives are saying now about their record in government, solar targets were repeatedly missed, and this round is a welcome change. Unlike the Conservative Government, who, as has been pointed out, left us at the whim of the global oil and gas market, this Government are making choices that will increase our energy independence and lower energy bills for our consumers.
Future allocation rounds, especially in the next few years, must continue to deliver increasing quantities of renewables. That can be achieved by setting ambitious budgets and bringing forward incremental reforms of the CfD regime. Can the Secretary of State assure me that this round is not just a one-off and that we will increase the pace of the CfD allocation rounds?
Ed Miliband
I thank the hon. Lady for her support and the warm tone that she uses. She is right that we face a big challenge as a country to get moving on the offshore wind Bill, the onshore wind Bill, solar on rooftops and ground-mounted solar. The truth is that CfD auctions have served us well and continue to do so. We inherited this auction halfway through the round, and we increased the budget substantially to make sure that it was a success. But the right thing for us to do—I think this is the main point that she is making—is to talk to industry about how we can make sure that future rounds are a success. I am very interested in how we can have a line of sight for industry, so that it can have the industrial certainty to plan ahead. The annual auction round is serving us well, but we need to work with industry to make sure that we land the clean power that we need and get the jobs here too.
Making Britain a Clean Energy Superpower
Wera Hobhouse Excerpts(6 months, 3 weeks ago)
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Wera Hobhouse (Bath) (LD)
It is a genuine pleasure to see you in your new role, Madam Deputy Speaker. I also welcome the new Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), to his place. I look forward to a much more constructive way of working compared with what happened under previous Energy Ministers.
The race to net zero is the major economic opportunity of this century. The green economy must sit at the heart of economic growth, and the Government have work to do to rewrite the damaging narrative of the previous Conservative Government that this is about green versus growth, and to remedy their unforgivable failures that delayed, blocked and even reversed urgent action on climate change. Now is the time to move forward.
The global market for net zero technology is estimated to be $650 billion a year by 2030. We must use Britain’s unique geography and abundant natural resources—wind power and the world’s second largest tides—to consolidate our position as a green economic powerhouse. Community benefits, community buy-in and individual economic incentives are critical to making this a reality.
Bath and West Community Energy in my constituency is putting people at the heart of the energy transition and placing the ownership and control of energy in local hands. It raised £11 million from nearly 1,000 members and bondholders, and it has donated £300,000 back to the community for local food production, recycling projects and fuel poverty programmes, yet community energy was not mentioned in the Labour manifesto.
Imagine a future in which people can purchase clean energy directly from a local supply company or co-operative, and in which every pound spent on powering our homes or cars is recycled back into the local community, supporting jobs, funding new facilities and services and contributing to renewable energy infrastructure. That is what community energy is about: ensuring that people everywhere support and benefit from the clean energy transition.
The biggest barrier, especially for smaller projects, is the cost of access to the grid. There are regulatory challenges too, but surely the creation of Great British Energy should include the opportunity to realise the enormous potential of community energy. It is often local council and grassroots projects that show the greatest ambition to get to net zero. Until now, local authorities have been hampered by a lack of resources and a lack of co-ordination between central and local government. Even within central Government the co-ordination of net zero strategies has often been fragmented. We Liberal Democrats therefore call for a net zero delivery authority, both to devolve decision-making powers and resources to local government, and to co-ordinate all net zero strategies and decision making across central Government Departments.
The last energy crisis, which saw household bills in the UK spiral out of control, was exacerbated by the UK’s reliance on fossil fuels. Ironically, the previous Government did very little to accelerate the deployment of renewables. Onshore wind was de facto banned and the targets for the roll-out of solar were regularly missed. Only by fast expanding renewable energy—not just offshore wind—and prioritising a radical home insulation programme can we ensure that families will never again be severely out of pocket.
To fully realise the potential of renewables, the Government must address our outdated national grid. Nearly 100 GW of electricity from offshore wind projects is currently awaiting grid connections. I hear that that is now to be accelerated. That would have been sufficient to power 150 million homes. Some developers have been waiting for up to 13 years.
There is no shortage of capital or will to invest, but delays and rising costs have deterred investors, who see projects in other markets such as mainland Europe as a safer return on investment—I know that the Government are all over this, but I am setting out what the failures of previous Governments were. Significant new infrastructure is required to connect renewable energy from where it is generated to homes and businesses across the country, but the Government must pay close attention to the communities hosting the required infrastructure. I know that is a challenge, but I support the Government in understanding that significant infrastructure cannot be delayed, because we really need to get to net zero.
Mr Holden
I totally agree about the need for new infrastructure. Germany is now pursuing an “underground first” approach to new energy transmission infrastructure, rather than overground pylons. Does the hon. Lady agree with me and other Opposition Members that the UK Government should adopt that approach?
Wera Hobhouse
Indeed. We have had a Westminster Hall debate on that very subject, and I absolutely agree. Saving private companies money is no reason not to do something that is better for communities. Half the time it is all about what is affordable, so I agree that there is a very fine balance to be struck, but where other solutions exist than having big pylons that ruin the landscape, National Grid should look at them.
Sir Mark Hendrick (Preston) (Lab/Co-op)
The hon. Member claimed that Labour’s manifesto did not mention community energy. In fact, a statement from Community Energy England says:
“Labour’s Local Power Plan would turbocharge community energy and local climate action”.
It is an integral part of the Labour party manifesto.
Wera Hobhouse
I am only mentioning how important community energy is to Liberal Democrats. The Labour manifesto did not seem to have as much emphasis on it, but if we agree on it, hurrah! We all win.
Barry Gardiner
The hon. Lady is being generous in giving way. On the issue of undergrounding power lines, although that may in some cases be necessary for communities, does she not accept, given that it is 10 times the cost, that it is possible to screen the power lines and, in doing so, create biodiversity corridors that can connect biodiversity from one part of the country to another, so that biodiversity can cope with climate change?
Wera Hobhouse
Indeed, there are not easy answers to all these questions. We need to look at the fine balance of cost versus getting community buy-in. There is going to be a transformation of our landscape, and we need to be aware of that. We must also make a good case for why it is urgent that we get to net zero, and in my view that balance in the argument was not struck properly by the previous Government. It is important that communities buy into our big landscape transformation, but it is also important that we do this at an affordable cost for the whole of the UK.
We Liberal Democrats are calling for all new homes to be net zero immediately. It is crazy that we are building homes today that will need upgrading in a few years’ time. We are proposing a 10-year emergency upgrade programme for homes, starting with free insulation and heat pumps for those on low incomes. That will not happen without incentivising private landlords and having tougher energy efficiency targets. The private rental sector has the most energy-inefficient homes. Nearly half of households living in these properties are in fuel poverty, but local authorities have taken limited action to enforce minimum energy efficiency standards.
Whether it is tighter regulation on private landlords or further sanctions to ensure that they comply, the Government must put their mind to the private rental sector. We will ensure that energy efficiency for rentals is not brushed under the carpet. That includes incentives for the private rental sector. From discussions in the previous Parliament, I know that the Labour party is relatively reluctant to give money to private landlords, but without incentivising the private rental sector, I do not think that a home insulation programme will happen, particularly for low-income families. I urge the Government to think about that.
As well as landlords, businesses must be incentivised to invest in the green transition. The U-turning of the Conservative Government sparked immense distrust from industry, with the UK chair of Ford warning that her business needs three things from the Government: ambition, commitment and consistency. That is exactly what they must deliver. Years of stop-start investment have left the energy sector reeling. Businesses and trade organisations have long been calling for a detailed plan of action that offers the clarity and certainty that will make the UK an attractive country to invest in. I hope that this Government can finally deliver the certainty that the country so badly needs.
Climate change is happening, but every cloud has a silver lining. Seizing the economic opportunities of net zero will help us spread wealth and opportunity to every corner of the UK. From insulating homes to providing thousands of new jobs in the energy sector, it is clear that everyone can benefit from a thriving green economy. I look forward to working constructively with the new Government to combat climate change, reduce energy bills and be a leader in the journey to net zero.
Madam Deputy Speaker (Judith Cummins)
Due to the large number of maiden speeches, and the fact that I want to get everybody in, I am now imposing a six-minute time limit—with the exception of maiden speeches. I call Jess Asato.
Joy Morrissey (Beaconsfield) (Con)
I welcome you to the Chair, Madam Deputy Speaker, and congratulate Members from across the House on their wonderful maiden speeches. I had 20 minutes of praise for them, highlighting every aspect of their wonderful speeches, but unfortunately time is limited, so I shall have to give a quick analysis of praise for them all. I am secretly delighted that I do not have to try out my Scottish Gaelic—[Interruption.] I know, it is sad but true; that might be for the next debate.
It was wonderful and heart-warming to hear from hon. Members across the House, from East Thanet to every part of Scotland, including the highlands and Glasgow South West, and from South Northamptonshire, and with all Members caring about their local communities and representing all the people who matter and who elected them. That is what matters in this place. I feel that now I am an expert in all things Scotland—never have I been so afraid to talk about and name everything than when I had to do a Burns night toast. I hope that someday I can visit all those wonderful constituencies. It made me realise that Scotland is a very inclusive, diverse and wonderful place, and I would like to sample the whisky and the hospitality from Loch Lomond to the highlands. I praise all hon. Members here today. I am someone whose contributions often make people think, “Gosh, that’s an unusual Beaconsfield accent”, so I am always delighted to hear sparkling speeches from voices less grating than my own—it is nails on a chalkboard, and you adjust over time—celebrating the diversity in the Chamber.
During today’s debate we heard some superb maiden speeches from Labour Members, and so many of them! Even I was confused about who are the new Labour MPs—that is how many of them there are, so congratulations. I welcome the Minister to his position. He will definitely be going far, and my claim to fame will be that I got to debate with him first here in the House. He is also a Scottish MP, and I welcome him and congratulate him on his ministerial position.
I am also pleased to be shadowing a department led by a fellow London School of Economics alumnus, but disappointed that the Secretary of State is not here to respond to or open the debate. I know in what high regard he is held by the Labour movement. His high ideals and socialist principles are in the very best intellectual traditions of his party, but he is now in government, and I fear that the changes he wants to bring about will make working people poorer and put our energy and food security in the hands of Russia and China.
In just three weeks, as my hon. Friends the Members for Mid Buckinghamshire (Greg Smith) and for Gordon and Buchan (Harriet Cross) and my right hon. Friend the Member for Basildon and Billericay (Mr Holden) pointed out, the Secretary of State has ignored local communities; he has ignored planning professionals; he has ignored sound decision making; and he has ignored basic economics. He seems to be in a race to deliver higher bills and higher taxes for working people, and a poorer, less safe Britain.
Joy Morrissey
I will give way in a moment, but I must make a little progress first, because I have only five minutes if I am to allow time for the Minister.
We on the Conservative Benches will keep calling these plans out for what they are: a dangerous experiment that will damage the British countryside, wreck the livelihoods of hard-working British people and drive up energy bills. Let us examine the progress of this experiment so far. During the election campaign, the Secretary of State got Labour candidates to claim that GB Energy would save £300 on energy bills, but that does not seem to be something that the Government are going to stand behind now. I would ask why that is, and what plans there are for the future in this regard.
The Government have formed an energy company that will not generate a single watt of energy, and will not bring down a single energy bill. They have taken £8 billion of taxpayers’ money, and put a shiny brand on it called GB Energy. GB Energy is simply the Government subsidising high-risk projects for the private sector on one hand, while decimating our oil and gas industry with the other. They have set up a new company and claim that it will make profits in five years, with nothing but 14 pages of a hot-air founding statement—with no business plan, no financial forecast, and nothing else.
Wera Hobhouse
Is the shadow Minister not aware it is exactly that negative narrative from her party that has held us back on the path to net zero?
Joy Morrissey
I know that the hon. Member is a strong advocate for her local community, and that is an important cross-party awareness; but we are in this position now, and I say to the Government, “You won, and we are here to hold you to account on your new endeavours. We wish you all the best, but it is our job to hold you to account.”
If GB Energy were a private company, no investor would touch it with a bargepole, yet the Government get to play with the money of hard-working British taxpayers while simultaneously hitting them with higher taxes and higher bills in return for that privilege. The Secretary of State doubtless thinks that he is courageously saving the planet, but he is not quite courageous enough to go to Aberdeen, or to be here today, or to speak to those in the North sea who will lose their jobs.
This is now serious. It is serious because the Government are writing cheques that the British people cannot afford and Ministers will never have to pay; it is serious because they are betraying the trust of local communities; it serious because they are putting at risk our energy and food security at a time when both have never been more vital; and it is serious because those who will suffer for their net zero purity are working people. These are not plans for a clean energy superpower. They are plans for a weaker, poorer Britain.
Clean Energy Superpower Mission
Wera Hobhouse Excerpts(6 months, 4 weeks ago)
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Mr Speaker
Order. May I just gently say that these exchanges must finish at 1 pm? I hope we can help each other along the way, but first I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
I welcome the new Secretary of State to his place. I share his passion for climate action. Let me add, however, that next time he makes a statement we will need our copies in better time than was the case today.
There is no doubt that the best route to affordable energy is renewables, but under the former Government renewable projects faced long delays and costs have skyrocketed. Indeed, that Government’s record on renewables was absolutely miserable. Our electricity demand is expected to double by 2050, and we must make upgrading our grid infrastructure a major priority. The Government will know that one of the biggest challenges will be to bring communities behind hosting the big infrastructure changes needed for the grid expansion, and to cope with the huge landscape transformation. How will they secure public consent?
As the Secretary of State said, to achieve our legally binding targets we also need a “rooftop solar revolution”, which will include introducing stronger incentives for households to install solar panels and ensuring a fair price for energy that they sell back to the grid. Will the Government work on those incentives with the Liberal Democrats?
We Liberal Democrats acknowledge the new approach taken by this new Government, and I look forward to working constructively with the Secretary of State to achieve our very ambitious targets.
Edward Miliband
May I welcome you to the Chair, Madam Deputy Speaker?
I welcome the hon. Lady’s questions; we worked together on these issues when we were in opposition. Let me deal with her two substantive points. On the question of public consent, this is absolutely something that we need to do, and I see it in three ways. First, communities need a say. Secondly, communities need benefit. Communities are providing a service to the country when they host clean energy infrastructure, so there needs to be benefit for those communities. Thirdly, this is a debate that we will have to have, and I am afraid the last Government did not grasp the nettle on this issue.
We are going through a massive change in our economy. If we do not build the grid or roll out solar, we will be poorer as a country and we will absolutely expose ourselves to future cost of living crises. I look forward to receiving as much support as possible from the Liberal Democrats, and indeed from all Members of this House, in making the case to people. We have to go out and make the case, as I think happened in the 1950s when we will built the grid. If we do not make the case, we will leave ourselves exposed as a country, and it is the British people who will pay the price. I completely concur with the hon. Lady on rooftop solar.