Biomass Generation

Alex Sobel Excerpts

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

First, let me say that I have spent the last hour answering questions from Members on both sides of the House. I have not lectured anyone. I have, however, stated the facts—for instance, that if oil and gas are extracted from the North sea, they are sold on the open market for whatever price the international markets have at any given moment. That delivers neither energy security nor confidence to bill payers. While Opposition Members may want us to go back to the fossil fuel casino and hope we can play a better hand this time round, I think we should be building a secure power system that delivers both energy security and confidence that we will not be exposed to the price spikes we have been exposed to in the past. If the right hon. Gentleman wants to take that as a lecture, he can take it as such.

On the role that Drax will play, of course we looked at all the assessments around Drax to date. Frankly, we have put in such a robust process on sustainability, and independent assessments of some of that, because of the questions that the right hon. Gentleman raises: we know that there have been questions in the past, and we want to make sure that there are tough penalties if Drax does not comply. Raising sustainability from the level under the previous Government—70%—to 100% means that we will not pay a penny of subsidy if Drax fails the sustainability tests that we have set out for it. That protects consumers right across this country and delivers the dispatchable power that we need.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

I thank the Minister for his statement. I have met women from the southern United States and British Columbia who live next door to primary forests that have been cut down by Drax so that wood pellets can be burned in Yorkshire. As we know from the BBC’s “Panorama” and Ofgem, Drax has utilised primary and old-growth forests. Drax cannot be trusted to ensure that the sustainability requirements that the Minister has put forward will be met. What powers and audit trail will the new independent sustainability adviser utilise to ensure that Drax is burning 100% sustainable wood and not ruining the lives of people in North America by using primary forests?

[Michael Shanks]

My hon. Friend makes an incredibly important point. The sustainability criteria are important, but he is right that making sure they are met is important too. This is a contract for difference agreement and we will work with Ofgem to work out exactly what its role is as the regulator, but to go above what has been in place before, we have announced that an independent adviser will work with my Department, the Low Carbon Contracts Company and Ofgem to make sure that the latest science and the latest awareness on different elements of biomass are key in our decision making, and that there is a real audit trail in place. The other really important thing is that there is now no room whatsoever for Drax not to comply with the sustainability criteria. Its compliance must be 100%, and there will not be a penny of subsidy for anything that is not sustainable. That is important, and the audit trail will be part of that work.

COP29

Alex Sobel Excerpts

Tuesday 26th November 2024 Commons Chamber

[Ed Miliband]

The right hon. Gentleman and I have been debating these issues for 15 years, and I hazard a guess that we will not end up agreeing. The truth about the climate crisis is that it is the biggest potential cost that future generations can face. There will be trillions of costs across the world and tens and hundreds of billions of costs in the UK if we do not act. All the evidence is that the costs of acting on climate change are much lower than the costs of not acting.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

I was in Paris nine years ago when we started the process of negotiation on article 6 of the Paris agreement, which was concluded only with the gavel going down in Baku. It is an important process, ensuring a carbon market through the United Nations framework convention on climate change. How will the UK implement the new article 6 regulations? How will we support other countries in this important work, as we can utilise it for nature-based solutions such as reforestation and afforestation?

[Ed Miliband]

My hon. Friend makes a really important point—it may be a slight counter to the right hon. Member for East Antrim (Sammy Wilson). Beneath the headlines, this is where the hard yards of work at COP happened. It has taken 10 years to do these article 6 negotiations and complete them, but this is about voluntary carbon markets. In answer to my hon. Friend’s question, we are consulting on some of the high-integrity principles for that, but again, this will make a difference to developing countries and get funds flowing to them. That is another reason why these COPs are worthwhile.

Offshore Petroleum Licensing Bill

Alex Sobel Excerpts

2nd reading
Monday 22nd January 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The proposed legislation before us is an outrage, and I am pleased that we have had the opportunity today to discuss in detail what it means. It has been a relatively good-natured debate, but it has shown very clearly where the political choices are, and I find the political choices of the Conservatives unacceptable.

New licences for new oil and gas fields in the North sea are in direct conflict with our national and international net zero commitments. We must get away from our dependence on fossil fuels, not extend it. At COP28 the Government signed an international agreement to phase out fossil fuels, but we are doing the opposite in this country. It is just not acceptable for us to do one thing abroad and another at home. As has already been said so many times this afternoon, this is losing us our reputation for good leadership, and losing any credibility that the Government could have at home or abroad.

The Government’s claim that the Bill ensures our energy security is complete fiction. Recent analysis from the Energy and Climate Intelligence Unit found that oil from new licences sent to UK refineries would account for less than 1% of fuels used in the UK in 2030. The Bill would make little or no difference to UK energy security, and the Secretary of State herself admits that it would do little to cut bills. Furthermore, on the basis of past records, new licences issued since 2010 have produced only 16 days of extra gas supplies. Between now and 2050, new licences are expected to provide an average of only four days of gas per annum. Is it really worth it to lose our reputation, our commitments and our path to net zero for that? The vast majority of this new oil and gas production would not stay in the UK; it would be sold on global markets for consumption abroad. No government should want a repeat of the energy crisis of last year, which was brought on by the crisis in global fossil fuel supplies and soaring prices on the global oil and gas market. Only by moving away from fossil fuels can it be guaranteed that such a crisis will not be repeated.

However, this legislation is not just stupid and unnecessary, but dangerous. It breaks down a decade-long cross-party consensus that every Government must be seriously committed to cutting greenhouse gas emissions and must provide strong, unflinching leadership to help people, organisations and businesses along the road to a successful energy transition. As we have heard today, there is a fair amount of consensus, so why should it be broken? That is really not understandable. Undermining this consensus is hugely irresponsible and sends entirely the wrong signals to the international community. The latest COP28 negotiations have shown how rocky the path to net zero is and how important the leadership of the developed nations remains. I was at COP28, and it is really sad to see how that leadership has been lost and how many nations look at us and shake their heads. They cannot understand what has happened to the UK in the last year or two.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

It is not just at COP28, the climate COP, that there is an issue. I was at Montreal at the nature COP, and we were in the vanguard of agreeing that 30% of waters should be protected for nature. These additional drilling rigs cause havoc in our inland waters, but 15 % of new licences were declared in marine protected areas, so we are seeing a nature crisis being caused by this as well as a climate crisis.

[Wera Hobhouse]

Yes, indeed. Many organisations that campaign to protect nature and the oceans have written to me—and probably to many other Members of Parliament—about how extremely dangerous and damaging this is to marine wildlife.

The UK is in a strong position geographically to cover its future energy needs from renewables and from cutting energy consumption. The Minister well knows my position on this: diverse, home-grown renewable energy and a significant home insulation programme are key to the solution. The energy efficiency of our homes is among the worst in Europe, and yes, if we are talking about jobs, we are lacking so many of the jobs that we need in the retrofitting and upgrading sector. We need a new workforce in the new technology for the net zero future of our UK economy. That is not looking back at past fuels. They have powered the world, yes, but we need to transition and we cannot keep on with business as usual. That is the problem and the opportunity. It is deplorable that the Government have finished embracing this new future and broken the consensus that we had across the House.

Where is the legislation to address all that? Failed project after failed project alongside acute underfunding means that people continue to live in cold homes with sky-high energy bills, so where is the legislation to revolutionise our home retrofitting agenda? The problem needs long-term policy and funding commitments rather than the stop and start of this Government. While offshore wind is no doubt a success story, we must move faster. Onshore wind development has been slow, and solar has been particularly off-track. In fact, we are going backwards. The proportion of renewable projects that are being delayed is on the rise.

Last year the Government’s predictable failure to contract new offshore wind lost 5 GW of renewable energy and the opportunity to save consumers £2 billion a year. Renewables developers still face a planning system that is stacked against onshore wind, and community energy providers still face enormous start-up costs. Rather than a petroleum Bill, why are we not debating a marine energy Bill today to incentivise investment in the various new technologies in marine energy and facilitate the fast roll-out of installations? The Government are wasting time and money on the fuels of the past. Instead, they should champion UK technology and innovation.

So, why this Bill? My suspicion is that it is an election year Bill to drive division and fuel the culture wars. For too long, working people have been made to worry that the green energy transition is a punishment for them and that it will cost them prosperity, livelihoods and the way of life that they are used to. But there are countries who have successfully turned the negative narrative into a prospect of hope and major opportunities. The US Inflation Reduction Act and the EU’s green industrial plan will together see over $600 billion of green investment creating new and exciting jobs and careers. Even Canada, an economy smaller than ours, has announced a package that offers nearly £50 billion-worth of tax credits for green technologies. Green investment will be worth a potential £1 trillion by 2030. Uncertainty over this Government’s commitment to reach net zero means that investors are looking the other way.

Oil and gas are energy sources of the past. Putting our political future towards them only amplifies how seriously out of touch and out of ideas this current Government are. The Bill is misleading and counterproductive. It flies in the face of our net zero commitments and will do nothing to ensure our energy security. Indeed, it will do the opposite. We Liberal Democrats will support the Labour reasoned amendment and oppose this Government Bill, and I call on all colleagues across the House with an ounce of honesty and integrity to do the same.