(1 week, 6 days ago)
General CommitteesIt is a pleasure to be here and to serve under your chairmanship, Mr Vickers, for yet another Delegated Legislation Committee; it seems like we spend every Tuesday morning in these Committee Rooms, doing yet another DL. I am pleased to be here. Indeed, the regulations are the result of a consultation that launched by the Conservatives when we were in government back in March. It was encouraging to see the response published in October and to see the regulations brought forward today.
As the Minister has set out, the instrument introduces requirements for new combustion plants and for those being refurbished, including regulatory requirements for a new decarbonisation readiness report as a prerequisite for environmental permitting approval. It also requires new combustion plants be built with regard to how they could be decarbonised in the future—for example, by converting to hydrogen firing or retrofit carbon capture technology, under environmental permitting regulations.
As I said, we are very supportive of the regulations. In fact, I think we are all supportive of the growth of new technologies like carbon capture, usage and storage, and their potential to cut carbon emissions. For combustion plants, where it is economically and technically viable, the implementation of such technology should be considered. I note that no impact assessment has been produced as the regulations are not expected to impose significant costs to businesses. However, it is noted in the explanatory memorandum today that they are expected to have an economic impact on small and micro businesses affected by the change to the 300 MW threshold. We all want a future where small businesses can thrive—the Chancellor herself has said that growth is her No. 1 priority —so will the Minister provide more detail of what support might be made available to the small and micro businesses that feel this new burden on them as they seek to decarbonise along with the rest of the country?
This instrument is a sensible move, although we worry and have some reservations about its impact on small and micro businesses, and would be keen to see more detail about what engagement the Department has had with the Scottish and Welsh Governments. As it says in the explanatory memorandum, this is a devolved area—but decarbonisation is a UK-wide effort.
We have no objection to the regulations, so I will draw my remarks to a close.