Oral Answers to Questions

Lord Sharma Excerpts

Wednesday 15th June 2022 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

3. What recent assessment he has made of the role of the fossil fuel industry in meeting the UK’s COP26 climate commitments.

[The COP26 President (Alok Sharma)]

The Government are committed to a managed transition from fossil fuels to green energy as we work to deliver on our 2050 net zero commitment.

[John Mc Nally]

The UN Secretary-General has called investment in new fossil fuel production and power plants “moral and economic madness”. The European Parliament has objected to plans to include gas in the definition of sustainable energy. Surely the COP26 President must agree that the Westminster Government are making a mockery of their presidency at COP. Not only have they increased support for fossil fuels, but their renewables policy is disguising billions in subsidies for biomass. How does he square the Government’s plans with the UK’s COP26 commitment and with the views of his possible future boss?

[Alok Sharma]

I am very happy with my current boss, the Prime Minister. If the hon. Gentleman looks at the British energy security strategy, which was published a few weeks ago, it clearly sets out our commitment to a clean energy future. He knows that our stated aim is to decarbonise the electricity sector by 2035, and we stand by that.

[Chris Stephens]

The fossil fuel lobby at COP26, covering more than 100 fossil fuel companies, fielded a larger delegation than the combined delegations of the eight countries worst affected by climate change, and was the single largest delegation with more than 500 delegates. Does the COP26 President not agree that although investment in renewables by fossil fuel companies is a key part of tackling climate change, it would not be appropriate for that situation to be repeated at COP27? The fossil fuel industry should not be given the loudest voice in climate discussions.

[Alok Sharma]

The presidency in any one year is not responsible for who attends a particular COP; we are responsible for the presidency platform. I can tell the hon. Gentleman that at COP26, all participating corporates were required to have signed up to the UN’s Race to Zero campaign and were committing to reach net zero by 2050 on science-based targets. There were no fossil fuel companies participating on UK presidency platforms in Glasgow.

[Sir Gary Streeter (South West Devon) (Con)]

I encourage my right hon. Friend to continue to get the balance right between marching towards a green future and using whatever fuels we need to use in the meantime to keep the lights on in our hospitals, schools, homes and offices. He has done a great job so far. Will he continue to get that balance right?

[Alok Sharma]

My hon. Friend makes an important point. We have always talked about a managed transition to a clean energy future. It is not about flicking a switch off overnight; I think everybody understands that. As a Government, of course, we have to make sure that we keep the lights on and keep the factories and businesses running.

[Jacob Young (Redcar) (Con)]

Does the COP26 President recognise that fossil fuels remain critical in the transition to net zero 2050 and in the production of blue hydrogen, plastics and power through carbon capture, utilisation and storage projects such as Net Zero Teesside?

[Alok Sharma]

My hon. Friend makes the same point that this is about a managed transition. We want to ensure that we decarbonise the electricity system by 2035. Hon. Members will know that the energy security strategy is all about transitioning to a clean energy future with a big push on renewables, nuclear and hydrogen.

[Mr Speaker]

We now come to the shadow COP26 President.

[Edward Miliband (Doncaster North) (Lab)]

It has been reported that the COP26 President is in the running to become the executive secretary of climate at the UN. I wish him well, because he would do an excellent job in that post. Part of the reason he won respect at COP26 was for his commitment to phase out fossil fuel subsidies, yet here at home the Chancellor has created a massive loophole in the windfall tax to give away at least £4 billion of public money in new incentives for new oil and gas projects. Can the COP26 President tell us whether he was consulted on that plan? How much does he estimate that it will drive up emissions? Is it not totally at odds with the agreement on fossil fuels that he worked so hard to secure in Glasgow?

[Alok Sharma]

The energy profits levy to which the right hon. Gentleman refers is a targeted short-term measure with an effective end date of December 2025. Any company looking to make future energy investments will have to factor in the risks of potentially ending up with stranded assets.

[Edward Miliband]

Maybe the COP26 President has one eye on the UN, because that did not sound like a wholehearted endorsement of the Chancellor’s policy, and he is right to think that the Chancellor’s policy does not make any sense. The money will either go to oil and gas projects that would have happened anyway, or incentivise new projects that will make no difference to consumer bills, take years to come to fruition and drive a coach and horses through our climate commitments. What is more, this policy excludes investments in renewables, which are the quickest, cheapest and cleanest form of power. Does that not reveal the truth that on climate, he says one thing on the world stage and the rest of the Government do another here at home? Is it not totally understandable that he wants to jump off the sinking ship?

[Alok Sharma]

The right hon. Gentleman will not get rid of me that easily. He needs to look at what the Government have done over the past few years: we have built the second biggest offshore wind sector in the world, which is precisely the reason that we are not dependent on Russian hydrocarbons, as some countries are. We have had a big push on renewables. He talks about the energy profits levy, but he should please have a look—he will have done this anyway, but a detailed look—at the energy security strategy, which sets out a very clear direction to a clean energy future for the UK.

[James Sunderland (Bracknell) (Con)]

2. What assessment he has made of the role of businesses in implementing the Glasgow climate pact.

[The COP26 President (Alok Sharma)]

COP26 was one of the first such summits where the corporate sector’s presence and commitments were significant. Over 7,000 international businesses have now signed up to the UN Race to Zero campaign, which commits them to reaching net zero by 2050 at the latest. The private sector will of course be critical to helping deliver on the commitments in the Glasgow climate pact.

[James Sunderland]

My constituency of Bracknell is blessed with several businesses of 10 employers or fewer. How might they be helped and persuaded towards climate neutrality when key decisions may not be in their immediate economic interest?

[Alok Sharma]

In fact, there are many businesses, both large and small, that are committing to cut emissions, because they have understood that it is good for their bottom line and actually gives them a competitive advantage with clients and customers. I refer my hon. Friend to the UK business climate hub, which is championed by the Government and climate groups. Over 3,000 UK small and medium-sized enterprises have already signed up. I am sure that, if small businesses in Bracknell look at the website, they will understand the positive impact of making a climate commitment.

[Mr Speaker]

I call the SNP spokesperson.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

The COP26 President will be aware of concerns raised about aspects of biomass, so how does he intend to ensure that carbon emissions from this sector and businesses such as wood-burning power stations are reflected in the reformed UK emissions trading system? How does he think the COP commitment to protect the world’s forests aligns with existing UK Government policies for burning imported wood and the considerable UK Government subsidies given to this industry?

[Alok Sharma]

There are quite a lot of questions there in one. We have a very clear commitment, not only in our legal framework but in the net zero strategy, which sets out how we will decarbonise through different sectors of the economy. The hon. Member mentioned forests, and she will know that at COP26 over 140 countries representing more than 90% of forests made a commitment to reverse deforestation by 2030. I have just returned from Stockholm, where I and other UK Ministers held a meeting to discuss how we can push forward those commitments. They are not just written down; we are actually seeing progress.

[Jon Trickett (Hemsworth) (Lab)]

4. If he will make an assessment of the effect of fossil fuel interest groups on the outcomes of COP26.

[The COP26 President (Alok Sharma)]

I answered this question earlier, but I reiterate that, to participate on UK presidency platforms at COP26, all corporates were required to sign up to net zero commitments. Let me reconfirm that there were no fossil fuel companies participating on UK presidency platforms.

[Jon Trickett]

Look, the truth is that the whole process of transition is either stalled or in reverse. We know that there are powerful interest groups in Downing Street saying that climate change is of secondary importance. What is striking is that, when we look at ministerial diaries, we see that Ministers have met representatives of fossil fuel companies nine times more frequently than companies representing renewables. Is it not clear that this Government are in the pockets of the fossil fuel industries and have in effect been captured by those corporations, which explains the asymmetric way in which the Government are operating in relation to the transition?

[Alok Sharma]

This Government have not been captured by any interest. Once again, I point out to the hon. Member that, if he looks at the energy security strategy for the direction of travel, he will see that we are looking to quintuple the amount of both offshore wind and solar, and by 2050 we want a quarter of our electricity needs to come from nuclear. As far as I am concerned, if he looks at the detail of that, he will understand that we are focused on a clean energy future, and that is what we are delivering.

[Sally-Ann Hart (Hastings and Rye) (Con)]

5. What progress he plans to make on adaptation in his COP26 presidency year.

--- Later in debate ---

[The COP26 President (Alok Sharma)]

The Government recently published the British energy security strategy, which sets out plans to turbocharge our clean energy transition. As I said earlier, the aim is to quintuple our offshore wind and solar PV capacities by 2030, while also significantly expanding nuclear and hydrogen. We aim to decarbonise our electricity sector fully by 2035.

[Christine Jardine]

While I welcome the Minister’s comments, all the evidence points to the fact that we need a drastic shift towards renewables if we are to meet our climate change commitment. What does he say about figures from the Department for Business, Energy and Industrial Strategy that show a reduction in growth in renewable energy over the past few years, specifically in onshore wind? Will he commit to investing more in onshore wind, and to committing to hydrogen, so that all new housing developments are hydrogen capable when boilers are replaced and central heating systems are introduced?

[Alok Sharma]

As the hon. Lady knows, a lot of work is going on with hydrogen, and we published our hydrogen strategy last year. We have announced plans to double our available capacity to 10 GW of hydrogen production by 2030. We already have 14 GW of onshore wind deployed to date, and we have made it clear that we will be consulting this year on developing local partnerships for a number of other supportive communities that wish to host new onshore wind infrastructure. That will, of course, be in return for benefits, including lower energy bills.

[Robert Halfon (Harlow) (Con)]

With the international energy price so high, will my right hon. Friend help to cut the cost of living by either scrapping the green levies to help people pay their bills, or at least by introducing a downward green escalator, so that when the international energy price is high, the green levies reduce?

[Alok Sharma]

Taxation is obviously an issue for the Chancellor, but the Government are providing £37 billion-worth of support right now to help people with the cost of living, including energy bills. On green levies, I think they represent 8% of a dual fuel bill, a significant amount of which is going to vulnerable households through the warm home discount and other mechanisms. The reason energy prices are high right now and wholesale prices have risen by 300% to 400% is in large part due to what is happening with the illegal war in Ukraine.

[Olivia Blake (Sheffield, Hallam) (Lab)]

We need a sprint on renewables, yet Ministers are barely breaking into a limp. In the latest round of contracts for difference, the Government implemented a cap of 12 GW on renewables, despite the industry reporting that 17.4 GW had been cleared for planning permission. That is 5.4 GW of shovel-ready, cheap, clean energy blocked. We are in an energy crisis. Why are the Government not firing on all cylinders to address it?

[Alok Sharma]

The Government are firing on all cylinders. If we had not been firing on all cylinders and got the second-biggest offshore wind sector in the world, we would now be reliant on Russian hydrocarbons, which we are not, unlike some other countries. The hon. Lady should welcome the progress that has been made and of course we want to do more.

[Mark Pawsey (Rugby) (Con)]

7. What progress he made at COP26 on supporting the transition to zero emission vehicles.

[The COP26 President (Alok Sharma)]

At COP26, the UK presidency launched the zero emission vehicles declaration. Over 140 parties, including Governments, vehicle manufacturers and businesses, committed to working together towards ensuring that all new car sales are zero emission by 2035 in leading car markets and by 2040 globally. We continue to gather signatories.

[Mark Pawsey]

The move from internal combustion to electric vehicles will only be successful with good access to infrastructure, but policy on parking at public charging stations rests with local authorities. Does the COP26 President agree that that should be restricted to electric vehicles, and will he join me in regretting that this is not currently the case in Warwickshire?

[Alok Sharma]

As my hon. Friend points out, parking policy enforcement is devolved to local authorities. He certainly makes an interesting point and I encourage him to raise it with the Department for Transport. Local authorities can, under a traffic regulation order under the Road Traffic Regulation Act 1984, implement parking restrictions, for example dedicated electric vehicle bays.

[Jim Shannon (Strangford) (DUP)]

On local government authorities, has consideration been given to a part-funded scheme allowing refuse vehicles coming near to end of life to be sourced as zero emission, with the cost offset to set the example for other businesses?

[Alok Sharma]

The hon. Gentleman makes an interesting point. Perhaps I can write to him or get a fellow Minister to do so on this issue.

[Mark Pawsey (Rugby) (Con)]

T1.   If he will make a statement on his departmental responsibilities.

[The COP26 President (Alok Sharma)]

Last month, I co-chaired a ministerial meeting with Egypt’s COP27 President-designate, bringing together almost 50 Governments to discuss progress on the implementation of countries’ COP26 commitments. We discussed the commitments to revisit 2030 emission reduction targets, finance, and work programmes on adaptation, loss and damage. While some progress has been made in turning commitments into action, countries need to significantly accelerate the pace of implementation on the road to COP27.

[Mark Pawsey]

On Friday, I joined the Rugby Green Christian group for a question time event to consider national and local responses to the challenges we face. Does the COP26 President agree that those discussions are essential to building local support for the measures the Government are taking?

[Alok Sharma]

I commend my hon. Friend for the work he is doing in this area and he is absolutely right. We can all play a part in tackling climate change. It is vital that we do so to make not only the environmental case but the very positive economic case for climate action.

[Wera Hobhouse (Bath) (LD)]

T2. Six days ago, the Government approved an application to draw gas in Dunsfold in Surrey, although the council had refused the application twice. Does the Minister agree that this decision by the Government to draw gas from a new gasfield in Surrey flies in the face of the commitment the UK Government made during COP26?

[Alok Sharma]

I refer the hon. Lady to the British energy security strategy, which sets out the very clear direction of travel towards a clean energy future for the UK.

[Bob Blackman (Harrow East) (Con)]

T5. I agree that action is much more important than just straight-forward commitments, so will the COP26 President update the House on the progress made on climate action at the G7 climate, energy and environment meeting?

[Alok Sharma]

I agree entirely with my hon. Friend about the need for commitments and action. I can confirm that at the G7 Ministers reaffirmed the key climate commitments that were made at COP26 and we also agreed to phase out the use of domestic coal and end G7 international fossil fuel finance by the end of 2022.

[Sarah Green (Chesham and Amersham) (LD)]

T3. As we have heard, the Government have recently given the green light for oil exploration in the Surrey Hills despite their own admission that it will degrade the quality of the setting of the Surrey Hills area of outstanding natural beauty. We have already seen the degradation of the Chilterns area of outstanding natural beauty in my constituency. Why are such new licences for oil and gas exploration still being issued and why do the Government continue to allow the destruction of our areas of outstanding natural beauty in the name of fossil fuel production?

[Alok Sharma]

Again, I make a wider point that we all need to consider. What is our future policy? Our future policy is all about clean energy. Again, I refer the hon. Lady to the energy security strategy, which sets that out very clearly.

[Chris Clarkson (Heywood and Middleton) (Con)]

T6. The UK is in the unique position of being able to become a net exporter of energy again. What progress has my right hon. Friend made towards developing green hydrogen, in particular, for the UK to export to the energy market?

[Alok Sharma]

My hon. Friend raises an important point. Of course, hydrogen is clearly part of our energy future. We set out our hydrogen strategy last year and, as he will know, in the energy security strategy we have doubled our ambition to 10 GW of low-carbon hydrogen production capacity by 2030. Internationally, we are working with partners through the COP26 breakthrough agenda to ensure that clean technologies such as hydrogen are affordable and accessible for all by 2030.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

T4. The war in Ukraine, the Freeport LNG explosion and Nord Stream 1 pipeline issues caused a spike in wholesale gas prices overnight at 30%, announced at £2 a therm. Scotland is uniquely placed to assist in the response to this international shortage, but it must be done responsibly and support carbon capture underground storage to meet net zero targets. After a very recent and helpful discussion with the Energy Minister, will the COP26 President meet me to discuss the opportunities in my constituency?

[Alok Sharma]

The hon. Gentleman knows that the North Sea Transition Authority launched the UK’s first ever carbon storage licensing round yesterday. I am very happy to meet him or to ensure that a Minister from the Department for Business, Energy and Industrial Strategy meets him.

[Philip Dunne (Ludlow) (Con)]

My right hon. Friend has just told the House that at the G20 meeting of environment and climate change Ministers, the agreement was reached to phase out global coal. Did he support that measure on behalf of Her Majesty’s Government?

[Alok Sharma]

As my right hon. Friend said, the agreement we reached was for the G7 to phase out domestic coal. Of course, we want to see that happen in developing economies across the world and that is why we are working, as we did with South Africa, to ensure that funding is made available to a number of other countries that are major emitters to ensure that they are able to make that transition to clean energy.

[Peter Grant (Glenrothes) (SNP)]

T7. Yesterday, RWE announced a partnership with SGN to investigate the provision of hydrogen gas to a number of off-grid small towns in Scotland. They are also investigating the development of a 100 MW hydrogen production plant at Markinch in my constituency, building on the world-leading H100 project in Methil. Will the COP26 President join me in welcoming this confirmation that Scotland leads the world in genuinely renewable energy technologies?

[Alok Sharma]

I think we should all be welcoming the fact that the UK leads the world when it comes to clean energy transition.

[Felicity Buchan (Kensington) (Con)]

If all the forest pledges made at COP26 are delivered, we will have achieved 10% of the emissions reductions that we need to stay within 1.5°, so nature is critical to achieving net zero. Will my right hon. Friend update the House on his ambitions for biodiversity at the COP15 summit?

[Alok Sharma]

We are working very closely on the issue. We want to ensure that there is a new framework for biodiversity. My hon. Friend is absolutely right that COP26 had a big focus on reversing deforestation and supporting biodiversity; we are continuing to press forward on that issue.

[Mr Speaker]

Before we start Prime Minister’s questions, I remind Members of the service at St Margaret’s at 1 o’clock today to commemorate the 40th anniversary of the end of the Falklands war. I hope that as many hon. Members as possible will be able to attend.

I would also like to point out that the British Sign Language interpretation of proceedings on PMQs is available on parliamentlive.tv. [Interruption] Not that sign language!