EU Referendum: Energy and Environment

Debate between Amber Rudd and Philip Boswell

Tuesday 12th July 2016 Commons Chamber

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

The Secretary of State mentioned India as being among the countries standing by us in respect of investment. Given that about 2,400 coal-fired power stations are planned or under construction around the world, including in India and China, does she agree that cancelling the carbon capture and storage project represents a massive missed opportunity for this country?

[Amber Rudd]

The hon. Gentleman will be aware that we have been through the issue of CCS many times. We would like to have a CCS programme and we are working on an industrial strategy to address having such a programme. I know that he has played an important part, working with Lord Oxburgh in the other place, in ensuring that we put together a clear plan. At the time, we could not go ahead with the £1 billion that had been planned for the CCS proposal, but it is not off the table at all. We are still working towards having some sort of CCS proposals.

Our commitment to decarbonisation is clear, with £13 billion of investment in renewable electricity in 2015 alone and with investment in renewables increasing by 42% since 2010. We have already set out funding to be provided through auctions during this Parliament to support up to 4 GW of new offshore wind and other renewable technologies, and with the potential for deployment of up to 10 GW in total between 2020 and 2030 if the costs continue to come down. We are also making real progress to deliver new nuclear power in the UK, addressing a legacy of underinvestment. We have announced record investment in new heat networks to enable innovative ways of heating our homes and businesses. And we will lead the world by consulting on closing unabated coal-fired power stations. That commitment has been praised across the world, and we will be setting out further details of it soon.

All those commitments remain in place. They will help us to dramatically rebuild our energy infrastructure and they are underpinned by our commitment to carbon budgets, which is why the CBI, the EEF, businesses and investors from a wide range of sectors were all so supportive of our decision to set the fifth carbon budget.

We have a proud history of energy innovation. The world’s first coal-fired power station was built on the banks of the Thames in the late 1800s. The world’s first nuclear power station was opened by Her Majesty the Queen in Cumbria in 1956. And well before the EU referendum had begun in earnest, my Department was making sure that this country would remain at the forefront of energy and climate change innovation. That is why, as a Government, we have committed more than £500 million over this spending review to supporting new energy technologies. That means supporting entrepreneurs as they look to develop the innovations of the future—in storage, in energy efficiency and in renewables. As part of that programme, we will build on the UK’s expertise in nuclear innovation. At least half our innovation spending will go towards nuclear research and development. That will support our centres of excellence in Cumbria, Manchester, Sheffield and Preston. Our nuclear programme will include a competition to develop a small modular nuclear reactor—potentially one of the most exciting innovations in the energy sector.

Although I have focused primarily on energy and climate change, we must not forget the trade and businesses surrounding the environment and agricultural sectors, which are so profoundly affected by our decisions on tackling rising global temperatures. The Department for Environment, Food and Rural Affairs continues to engage with farmers, businesses and environmental groups to ensure that their voices are heard. It has been made clear to them that there will be no immediate changes and my hon. Friend the Under-Secretary of State will address the environmental issues later.

Trading energy within Europe and being an entry point into Europe for the rest of the world has provided significant advantages. Europe has led the world on acting to address climate change. The economic imperative that drove those relationships has not changed and openness to trade remains central to who we are as a country. As the Prime Minister has repeatedly said, we will work towards the best deal for Britain. As I have said, our challenges remain the same: securing our energy supply, keeping bills low, building a low-carbon energy infrastructure, and protecting the environment and farming. Our commitment to them is unbowed.

Onshore Wind Subsidies

Debate between Amber Rudd and Philip Boswell

Monday 22nd June 2015 Commons Chamber

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

The strike price agreed for nuclear power is £92.50 per MWh at Hinkley Point, which is more expensive than the £82.50 per MWh for onshore renewables. Onshore renewables do not leave future generations with the cost of decommissioning nuclear facilities and waste. Why are the UK Government proceeding with such an irrational decision?

[Amber Rudd]

I thank the hon. Gentleman for the opportunity to make two points in response. First, our energy needs to be a mix. We cannot purely have renewable energy; we need the base-load stability of having nuclear or some oil and gas to make sure we can deliver regardless of whether the wind is blowing or the sun is shining. That is still an important part of our mix. Secondly, the decommissioning issue he raises is included in the price.