Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 18th April 2023 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

21. How many and what proportion of homes had energy efficiency measures installed in (a) 2010 and (b) 2022.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The Government have made very good progress: 47% of homes in England have now reached the Government’s 2035 target of achieving EPC C levels, up from 14% in 2010—a 133.7% increase. In 2010, the Government supported the installation of around 968,100 measures. In 2022, the Government supported the installation of around 204,000 energy efficiency measures in around 94,500 households. Around 1 million homes will be upgraded with improved energy efficiency between now and 2026 through our help to heat schemes.

[Daniel Zeichner]

That is a very partial account of the story, I have to say. The Minister will know that in 2010 the Government inherited a functioning scheme from the Labour Government that meant hundreds and hundreds of homes in my constituency, and possibly his, were being insulated. Come forward 10 years and what do we see: that scheme has absolutely crashed, so can the Minister tell us just how much that decade of Tory failure has cost our constituents?

[Andrew Bowie]

A decade of Tory failure? That is complete nonsense. We have had a 133.7% increase from 2010, when, by the way, we inherited a situation where only 14% of the country had EPC C levels. We are now at 47% and from 2010 to 2022 the Government supported the installation of around 8 million energy efficiency measures.

[Clive Lewis]

I know Front Benchers have already expressed their commitment to local communities and local people driving our economy forwards to a sustainable transition and future. With that in mind, may I point them to my own local authority, Norwich City Council, and its Goldsmith Street award-winning council housing—safe, secure, affordable homes that it has built on a shoestring budget after millions of pounds of cuts to its budget? What conversations have Ministers had with the Chancellor to ensure other councils can drive this programme forward to ensure every street is like Goldsmith Street?

[Andrew Bowie]

We in this party and this Government support community-led initiatives just like the one the hon. Gentleman referenced and we are consulting on how we can further support community projects. I would be delighted to discuss that particular project with him in more detail in due course.

[Andrew Bridgen (North West Leicestershire) (Ind)]

Will my hon. Friend outline how the energy efficiency taskforce will help support energy efficiency across the UK?

[Andrew Bowie]

The energy efficiency taskforce is committed to driving forward energy efficiency measures throughout the United Kingdom and, on that measure, I would be delighted to meet with him if he has any further ideas on how we can go even further and faster to drive forward energy efficiency measures across the country.

[Mr Speaker]

Minister, I am this way, not that way.

[Andrew Bowie]

I am terribly sorry, Mr Speaker.

[Mr Richard Bacon (South Norfolk) (Con)]

I join my parliamentary neighbour, the hon. Member for Norwich South (Clive Lewis), in congratulating Norwich City Council on what it has done in Goldsmith Street. Is the Minister aware of what proportion of self-commissioned homes have the highest energy rating? Is he aware that triple glazing is almost standard in self-commissioned homes? What is he doing to encourage the Department for Levelling Up, Housing and Communities to have more self-commissioned homes?

[Andrew Bowie]

Before I go any further, I congratulate my hon. Friend on championing the self-build housing sector and that house building sector on doing what it can, moving so far and so fast, to improve energy efficiency measures across the buildings it has been producing over the past few years. Once again, as he is a subject matter expert, I would be delighted to meet him to discuss it in more detail in due course.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

8. What assessment his Department has made of the adequacy of lead times for connecting renewable energy projects to the grid.

[Anna McMorrin (Cardiff North) (Lab)]

17. What assessment his Department has made of the adequacy of lead times for connecting renewable energy projects to the grid.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

Reducing connection timescales is a high priority for the Government. We will publish a connections action plan in the summer, which will articulate actions by Government, Ofgem and network companies to accelerate network connections for renewable energy and other projects.

[Seema Malhotra]

It is a disgrace that while energy prices rocket, huge delays to grid connections are holding back the supply of renewable energy to UK homes and businesses. Wind farms coming online today were approved when Gordon Brown was in power. Even now, energy companies are having to wait for 13 years, until 2036, for connections for some projects. How on earth did it get this bad? Is it not true that the Tories have taken their eye off the ball on the National Grid, and it is now costing British families and businesses dear?

[Andrew Bowie]

I thank the hon. Lady for her question. It is interesting that she references Gordon Brown, because it was under his Administration that the decision was taken not to invest in new nuclear, which, by the way, would have solved part of the problem we find ourselves in right now. However, I think everyone in the House would acknowledge that the situation regarding grid connection times is not acceptable. That is why we have commissioned the Electricity Networks Commissioner, Nick Winser, to submit recommendations to the Government on how we accelerate delivery of network infrastructure. He will publish his report in June.

[Anna McMorrin]

The Minister completely failed to answer the question. The CEO of Solar Energy UK has said that solar infrastructure projects are being delayed into the 2030s—15 years or more—meaning that operators will not connect them to the grid. Renewable energy is cheap and will help to bring down the current absurd energy prices. Are the Government purposely trying to keep energy prices high and at the mercy of fossil fuels, firmly leading us on the highway to climate hell?

[Andrew Bowie]

Frankly, that question is utterly ridiculous. It is because of the Government’s investment in new renewable technology that we are powering ahead and leading the world in reaching our net zero obligations. Half our energy now comes from renewable sources. I have already acknowledged that the delays to grid connections are completely unacceptable, which is precisely why we commissioned Nick Winser to develop his report. We will be publishing his recommendations in June.

[Bim Afolami (Hitchin and Harpenden) (Con)]

Just to bring down the temperature a little bit, the Minister referenced the Government’s consultation later this year on how the Government, with Ofgem, will drive forward investment in the grid. Is the Government’s vision for more investment in a system similar to what we have now? To what extent do they want to move towards a more decentralised system for renewable investment in the grid, so that local communities can invest their own efforts and resources in developing their own renewable energy?

[Andrew Bowie]

I thank my hon. Friend for his question. In March, we launched consultations on community benefits for transmission network infrastructure and on supporting the consenting process to revise energy national policy statements. We are also supporting a private Member’s Bill on alternative dispute resolution for compensation disputes over land.

[Priti Patel (Witham) (Con)]

The Minister will know that the east of England does a lot of heavy lifting when it comes to renewables; we are investing in turbines and offshore wind. But he will also know that local communities across the entire region are horrified by National Grid’s plans to build pylons across the entire region, which will connect and increase more energy supply. They favour an offshore grid. Can I ask the Minister directly: what is he doing to work with the local community to deliver that option?

[Andrew Bowie]

The east of England does do a lot of heavy lifting for renewables—almost as much as the north-east of Scotland—but this is not a competition. I am delighted to inform my right hon. Friend that I am visiting East Anglia next week to meet communities in the area. Indeed, I met producers and manufacturers yesterday to see what they can do to mitigate the impact on her local community and other communities in the region.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

If we are prevented from building renewable power in the first place, connection times become rather a moot point. Will the Minister explain why he has failed to lift the ban on onshore wind, despite the Government saying that it would be lifted by the end of April?

[Andrew Bowie]

This Government are committed to onshore wind as a huge part of our renewable energy mix—14 GW, in fact. We are also committed to new renewables offshore and to new nuclear, which the Labour party opposed for such a long time. It will be a whole collection of those new technologies and infrastructure projects that will help us drive our way towards our net zero ambitions and the cleanest and cheapest electricity in Europe.

[Dr Whitehead]

That wasn’t very good, was it? The Government’s own offshore wind champion Tim Pick said last week that we will miss our 2030 offshore wind ambitions by more than 10 GW because of poor grid connections. Even with the lifting of the onshore ban—if we believe the Minister—developers will not invest given the prospect of a 13-year delay in grid connection. When will the Minister commit to a speedy programme of grid capacity building, to give onshore and offshore wind a good chance of success?

[Andrew Bowie]

As I said, this country is leading the way in investment in new renewable technology. We acknowledge that there are difficulties connecting to the grid, and we are investing in improving that. Nick Winser’s report is coming in June, which will give recommendations to Government on how to reduce the timescale for connecting those new projects to the grid. That is the focus of this Government, not playing politics. We are taking real decisions to benefit this country, to cut our carbon emissions and to reduce energy bills across the piece.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

9. What steps he is taking to support energy transition projects in Scotland.

[John Mc Nally (Falkirk) (SNP)]

19. What steps he is taking to support energy transition projects in Scotland.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

We are supporting Scotland’s energy transition through the North sea transition deal. Additionally, 44 of the 161 projects awarded contracts for difference for renewable electricity are in Scotland. More recently, we have allocated £81.1 million of funding to 81 locations throughout Scotland—I have a list, but I will not go through them—as part of the £1 billion net zero innovation portfolio, from 2021 to 2025. Furthermore, we have committed to funding the Aberdeen energy transition zone by £27 million, and the global underwater hub aimed at diversification for the subsea sector by £6.5 million.

[Stuart C. McDonald]

There was a lot to take in there. Recent positive noises around the Acorn carbon capture project near Peterhead are obviously welcome, albeit with the caveat that we have heard a lot of this before. Can the Minister confirm what funds track 2 projects will get and when Acorn funding will be confirmed, or at least when such announcements will be made? Does he agree that track 2 projects must proceed much faster than track 1, both because of the climate emergency and so that we can seize the opportunity to be world leaders in that technology?

[Andrew Bowie]

The hon. Member is absolutely right that there was a lot to take in, because the UK Government are doing so much to support Scotland’s energy transition. On Acorn, he does not recognise that this Government have already invested £40 million of funding in the project—most notably, £31.3 million under the industrial decarbonisation challenge. I have the breakdown of the funding, if Mr Speaker will allow me: £31.3 million from the industrial decarbonisation challenge for onshore and offshore front-end engineering design studies; £9.3 million of innovation funding for CCS innovation and advancing CCS technology and hydro supply programmes; and £250,000 for the development of Storegga’s Dreamcatcher direct air capture plant. Track 2 has been announced—

[Mr Speaker]

Order. Minister, do not tempt me.

[John Mc Nally]

I wish the Minister would slow his answers down—that was a bit of a blur. Just last week, Harbour Energy announced that it is cutting 350 highly skilled and valued jobs in Aberdeen, directly linking that to the poorly implemented energy profit levy. We warned many times that it would disproportionately affect Aberdeen and Scotland and, unfortunately, we have been proven right. Will the UK Government commit to matching the Scottish Government’s £500 million just transition fund, and protect our energy workers?

[Andrew Bowie]

I am afraid I have to take all that with a massive pinch of salt. Now it turns out that the SNP is against a windfall tax on the oil and gas industry, when it had been campaigning for such a tax for weeks and weeks, months and months. We have introduced the energy profits levy to deal with the immediate crisis regarding energy bills, but we have built into that investment opportunities for companies to continue to innovate, create jobs and develop our offshore oil and gas fields, because we will be reliant on them as a transition fuel for many months to come. This Government are committed to jobs and opportunities in north-east Scotland, unlike the Scottish National party that would close it down tomorrow.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I am sure the Minister will be able to give me a short answer to this question. Does he agree with me that what transition in Scotland definitely does not involve is some knee-jerk shutting down of the oil and gas industry, especially given that liquid gas supplied by tankers has two and a half times the emissions of gas produced in the North sea?

[Andrew Bowie]

Yes, I completely agree with my right hon. Friend. He is absolutely right on this issue. Indeed, shamefully, Scottish Government Minister Patrick Harvie, a member of the SNP’s partner in Government, the Green party, said that oil and gas workers in Aberdeen should simply get on their bikes and look for other jobs, instead of investing in the industry, which this Government are doing.

[Mr Speaker]

I call the spokesperson for the Scottish National party.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

If we want a proper just transition and greater supply chain security, we need new manufacturing facilities for renewable energy components. Which suppliers and manufacturers has the Minister spoken to about creating new manufacturing facilities in Scotland? How many new Scottish manufacturing and renewable energy jobs do this Government intend to create?

[Andrew Bowie]

We are absolutely committed to building a UK-based supply chain, and that includes, of course, new jobs in Scotland. I would be delighted to meet my Scottish Government counterparts and the hon. Gentleman to discuss how we can progress that further and faster. If we are going to have an even more successful renewable energy industry in this country, it is essential that we have a UK-based supply chain. That is what this Government are committed to achieving and, moving forward, I would be happy to work with anybody so that we can do that.

[Alan Brown]

Obviously, I am happy to meet the Minister and work with him, but what I heard right there was that there is no plan for manufacturing jobs in Scotland, no plan to match fund the just transition fund, no answer to the job losses at Harbour Energy and no firm commitments on timescales for Acorn, and that the tidal stream funding has been halved. There is nothing happening to match the Inflation Reduction Act in the United States and the EU support packages. Is it not the case that at the moment just transition are simply warm words for this Government and that much more needs to be done?

[Andrew Bowie]

Absolutely not. I have gone through in detail exactly what we are doing in Scotland. Indeed, his colleague, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) suggested that there was far too much in my initial answer to demonstrate what we are doing to support transition in Scotland. We will continue to do that, while championing jobs and opportunities across the whole United Kingdom, including in Scotland. That means investing in new technologies and renewables, and supporting our oil and gas industry as it transitions. All of that is possible because Scotland remains in the United Kingdom, which would not be the case if the hon. Gentleman had his way.

[Sir Alok Sharma (Reading West) (Con)]

11. What steps he is taking to help increase private sector investment in clean energy technologies.

--- Later in debate ---

[Dame Maria Miller (Basingstoke) (Con)]

I have already met the Minister for Energy Security and Net Zero to discuss the National Fire Chiefs Council’s concerns about the use of lithium-ion storage facilities to get renewable energy to the grid. Will the Government review existing fire and environment regulations to ensure they reflect these deep concerns and risks, and help to ensure that renewable energy can get to the grid smoothly and in a timely manner?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

Grid-scale lithium-ion battery energy storage systems are covered by a robust regulatory framework, which requires manufacturers to ensure that products are safe before they are placed on the market, that they are installed correctly and that any safety issues found after products are on the market are dealt with. I am meeting my right hon. Friend this week to discuss this in more detail and I look forward to that very much.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

T9. The Minister must surely recognise that fuel poverty cannot be solved by threatening to send vulnerable people to court or imposing the installation of smart meters. When will he stop passing the blame to Ofgem? When will he really start to support vulnerable people who are facing fuel poverty?

--- Later in debate ---

[Andrew Bowie]

I am very glad to hear about the successful funding bids in my hon. Friend’s constituency. These schemes will improve homes up and down the country, improving their energy efficiency and lowering energy bills. I am delighted to accept the invitation to visit the Darlington economic campus, although I can confirm that I have already visited it and was incredibly impressed by the calibre of the individuals working there to drive forward our ambition—

[Mr Speaker]

I call Dame Diana Johnson.

[Andrew Bowie]

—to get this country the greenest, cleanest electricity in Europe.

[Mr Speaker]

Minister, that is the last time you do that to me. Seriously, you are taking advantage of this Chamber too much. You were enjoying yourself earlier, which was fine, but I am not consistently having you dictate to the Chair. Do we understand each other?

[Andrew Bowie]

Yes.

Energy Efficiency of Buildings: Funding

Andrew Bowie Excerpts

Friday 24th March 2023 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

My noble friend the Parliamentary Under Secretary of State (Lord Callanan) made the following statement on 22 March:

Today the Government are announcing £1.8 billion of funding to cut the emissions and boost the energy efficiency of homes and public buildings across England.

The investment will further reduce energy bills for householders and businesses, as part of the Prime Minister’s pledge to halve inflation and ease the cost of living. Altogether, 115,000 homes will benefit from energy efficiency and low carbon heating upgrades, along with 144 public sector organisations responsible for hospitals, schools, leisure centres, museums, universities and other buildings.

It is being delivered through the Home Upgrade Grant (HUG), Social Housing Decarbonisation Fund (SHDF) and Public Sector Decarbonisation Scheme (PSDS).

In 2019, the UK became the first major economy in the world to legally commit to end our contribution to global warming by 2050. This is a huge challenge. But it is also an unprecedented opportunity.

The UK has already shown that environmental action can go hand-in-hand with economic success, having grown our economy by more than three-quarters while cutting emissions by over 40% since 1990.

The effort will be shared across many sectors, and decarbonising the energy used in buildings, and increasing energy efficiency will be a vital component.

The UK is home to around 30 million buildings which are responsible for 31% of UK emissions. We have some of the oldest housing stock in Europe, over 80% of buildings still rely on high carbon fossil fuels for heating and have low levels of thermal efficiency.

To reach our net zero target by 2050 we need to decarbonise the way we heat and cool our homes and workplaces, and to ensure that in the near term we meet our fuel poverty targets and emissions reduction targets.

This £1.8 billion investment will be critical in supporting our commitment made in 2022 to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels.

The Social Housing Decarbonisation Fund and Home Upgrade Grant

Through the SHDF Wave 2.1 and HUG 2 the Government are awarding a significant injection of funding worth £1.4 billion to local authorities and providers of social housing.

An additional £1.1 billion in match funding for social housing is being provided by local authorities and providers of social housing, bringing the total investment to £2.5 billion to upgrade social and private homes in England.

The grant funding will be invested from April 2023 to March 2025, although delivery on the SHDF can continue with the use of match funding until September 2025.

The money will go towards improvements to social households and private, low income, off-gas grid households with an EPC rating of D or below and could save homes occupants between £220 and £400 a year on energy bills.

Energy cutting and cost saving measures provided through the schemes include external wall insulation, cavity wall insulation, loft insulation, new windows and doors and draft proofing measures, as well as heat pumps and solar panel installation.

These schemes will also support around 20,000 jobs in the construction and home retrofit sectors, helping to deliver on our promise to grow the economy and create better paid jobs, whilst supporting families across the country.

The funding awarded through these schemes continues the investment through “Help to Heat” Schemes which has already seen:

Over £240 million already awarded to the SHDF Demonstrator and SHFD Wave 1 projects, indicating the Governments continued support to the £3.8 billion manifesto commitment between now and 2030 to deliver energy efficiency improvements in social housing.

Over 37,000 households have seen energy efficiency upgrades as part of the first two phases of the local authority delivery scheme, with a further 20,000-28,000 homes expected as part of the sustainable warmth competition.

In addition to the SHDF and HUG, the Department for Energy Security and Net Zero will also use EC04 and ECO+ to accelerate our efforts to improve homes to meet fuel poverty targets and the Government have committed to a four-year, £4 billion extension and expansion of ECO with EC04. We have announced a further £1 billon extension of the scheme through ECO+ to start in Spring 2023.

Public sector decarbonisation scheme

Over £409 million of grant funding has also been awarded through the Government’s public sector decarbonisation scheme. This Phase 3b of the scheme will support 144 public sector organisations across 171 projects to undertake low carbon heating and energy efficiency measures across hundreds of buildings.

These projects will not only help reduce the carbon emissions of these public buildings but save them money on their energy bills and ultimately, save the taxpayer hundreds of millions of pounds in the long-term.

Hospitals, schools, leisure centres, universities and other vital public service buildings across England are set to benefit from the scheme.

£2 billion has now been awarded across over 900 projects to decarbonise the public sector across all phases of the scheme to date, and even more funding through Phase 3b is to come as applications are assessed and approved.

Today’s £409 million is part of the wider £2.5 billion package that this Government have committed to spending on upgrading public sector buildings between 2020 and 2025, supporting this Government’s commitment to reducing carbon emissions from public sector buildings by 75% by 2037.

Funding through the schemes will be allocated across England based on the following allocations:

Energy Charter Treaty

Andrew Bowie Excerpts

Tuesday 21st March 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

It is a pleasure to serve under your chairmanship, Mr Gray, and to respond to my right hon. Friend the Member for Kingswood (Chris Skidmore) on such an important and pertinent topic. Thanks to his work in passing net zero legislation into law, and through his work on the review, the UK is committed to tackling climate change at home and internationally through our ambitious net zero targets and our international climate agreements, including the Paris agreement. I want to assure him of my personal commitment to achieving those goals, which I hope he knows already.

In an earlier intervention, the hon. Member for Strangford (Jim Shannon) raised energy security in Northern Ireland. I urge him to hotfoot it back to this Chamber at 2.30 this afternoon when the hon. Member for Upper Bann (Carla Lockhart) has a debate very much focused on Northern Ireland and energy security for farmers. I look forward to seeing him there and we can continue our discussion.

The energy charter treaty was signed in 1994. It was originally designed to provide stability and certainty for those participating in cross-border trade and investment in the energy sector, particularly for investors operating in states with a less stable rule of law. It currently applies to more than 50 contracting parties. As my right hon. Friend the Member for Kingswood rightly says, the world and the energy sector have changed significantly since 1994, and there is wide recognition that the energy charter treaty has not kept pace.

Britain has long accepted that to remain relevant the energy charter treaty needs to be updated to reflect the current energy landscape. In its unmodernised form, it is focused on trade and investment in fossil fuels. Although renewables are in scope, it does not cover modern energy technologies such as hydrogen or carbon capture and storage. That is exactly why His Majesty’s Government have been such keen supporters of modernising the treaty; I dispute the characterisation from the hon. Member for Brighton, Pavilion (Caroline Lucas) that we are in any way complacent.

We have spent two years negotiating to align the treaty with today’s changing energy priorities and investment treaty practices, as well as international climate commitments, such as the Paris agreement. We took a leading role in pushing for additional safeguards for the sovereign right to introduce measures such as net zero and a flexible mechanism to allow parties to phase out investment protection for fossil fuels. To be clear, there were challenges to overcome in the renegotiation. It is a multilateral treaty across more than 50 states, each with different priorities on energy and climate. The UK was able to secure coverage for modern technologies, and provisions to ensure a stronger environmental, labour and climate focus.

[Chris Skidmore]

This is a factual question: who is the Minister going to negotiate with in a modernisation programme, when none of the European countries, including Germany, France, Spain, the Netherlands and Italy, will be in the room? Logically, there is no opportunity to discuss modernisation, because no one wants to discuss it. The Minister’s speech may have been written before the decisions taken by the EU last week or the week before were made public, but it is simply not logically possible to follow the pathway that the Minister is suggesting. It might have been possible last year, but it is certainly not anymore.

[Andrew Bowie]

I was not suggesting a pathway forward; I was giving a brief history of how we have got to the stage we are at. If my right hon. Friend hangs fire for two seconds, I will explain where we are going next.

Despite efforts to update the treaty, which the EU had supported us on, when it came to the final moment the European Union and its member states were unable to endorse adoption of the modernisation at the energy charter conference in November. That was unexpected and a great disappointment to those, including member states and the UK, that were championing modernisation. As such, several EU member states have now announced their intention to withdraw. We expect a decision on modernisation to be rescheduled when enough contracting parties are in a position for a vote to take place.

We must carefully assess the impact of the evolving situation to understand how best to take forward our priorities in relation to the treaty. Since the conference in November, the Government have monitored the public positions of other contracting parties, engaged with official-level negotiators from those parties, conducted further assessment and considered the views from stakeholders across business, civil society and Parliament. We are building all that information, engagement and analysis into an assessment, underway right now, of how the UK should respond to the current situation in the energy charter treaty. We will keep the House informed of any relevant developments as soon as we are able.

Whatever the final decision on our membership or the future of the treaty, the UK remains committed to addressing the urgent need for climate action at home and abroad. As such, I sincerely thank my right hon. Friend the Member for Kingswood for raising the issue.

[Caroline Lucas]

I wonder whether the Minister recognises that there is an urgency to this. I appreciate that he is listening to lots of different voices, but if we are left on our own because all like-minded countries have left, we risk becoming stranded and unable to leave with the protection that would have come from a co-ordinated departure with our EU colleagues. Will the Minister consider that as he plots the way forward?

[Andrew Bowie]

I thank the hon. Lady for her intervention; of course, that is being considered. As I said, an assessment of the UK’s position in regard to the treaty is being undertaken right now, and as soon as a decision has been taken we will update the House. The issue is important and pertinent, and I thank my right hon. Friend the Member for Kingswood for bringing it to the Chamber today.

Question put and agreed to.

Energy Support for Farms

Andrew Bowie Excerpts

Tuesday 21st March 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

It is an absolute pleasure to serve under your chairmanship, Mr Robertson. I thank all hon. Members for joining us in Westminster Hall for this debate. All of us—especially those of us who represent rural constituencies—are aware of the challenges that farmers are facing at the minute. I wish to express my gratitude to the hon. Member for Upper Bann (Carla Lockhart) for bringing forward this debate and for her dedicated campaign to back British farming.

The Government have implemented several comprehensive support schemes across the UK to assist farmers in coping with energy costs. In particular, I wish to address the support being provided in Northern Ireland, given the vital contribution of farming and agriculture to the economy there.

I understand how fundamental agriculture and the wider agrifood industry is to Northern Ireland, employing more than 50,000 people across 26,000 farms. Northern Ireland is renowned at home for the quality of its produce. Farms are at the heart of the agrifood industry, which contributes £4.5 billion in turnover every year, helping to deliver a stronger, more secure economy in Northern Ireland. Before I go any further, let me say that I would be delighted to take the hon. Lady up on her invitation to visit Upper Bann and see farms operating in her constituency.

Given the industry’s importance, it is right that the Government’s energy schemes have offered much-needed support to farmers over the winter in the face of high and rising energy costs. On 1 October, we introduced the energy bill relief scheme, which will continue to run until the end of this month. It provides a discount on the wholesale component of gas and electricity bills and has provided protection to farmers from excessively high energy costs over the winter period. Support offered by this package is worth £7.3 billion and it is available across the entire United Kingdom.

Although energy prices are coming down, and it is right that we balance continued support with energy costs with our duty to the taxpayer, we also recognise that prices remain far above historical levels. For that reason, although the energy bill relief scheme is coming to an end, we have pledged to provide further support to non-domestic customers, including our farming industry, from April onwards through the energy bills discount scheme. The EBDS will continue to provide support to eligible non-domestic customers with their energy bills from April this year until the end of March 2024.

It is true that the EBDS baseline support is significantly reduced compared with that of the current energy bill relief scheme. That is to reflect the welcome reduction in wholesale energy prices. The Government make no apology for ensuring that the taxpayer is protected; we need to focus our support where it is most needed. Under the support package, energy and trade-intensive industries will receive a higher level of support than the baseline element. That is essential if those industries are to maintain their competitive edge against their international counterparts as they are less able to pass on increased costs to their consumers.

Before I move on, I wish to address the specific points that were raised. It is a great pleasure to see the hon. Member for Strangford (Jim Shannon) back in the Chamber for the second time today. I am delighted to address his points, although I take issue with his assertion that the Comber spud is the greatest potato in the world. I think a tattie howked from the Howe o’ the Mearns is the far superior potato when it comes to international comparisons. None the less, I do take on board all of what he said. I know that, as a diligent Member of Parliament for an incredibly rural constituency, like me, he speaks from his heart when he talks about representing his farming constituents. I associate myself entirely with his comments on the socially isolated nature of farming in the 21st century. We must do all that we can to support farmers in the incredibly important work that they do to support this country and, indeed, to export great British produce around the world.

The shadow Minister, the hon. Member for Southampton, Test (Dr Whitehead), raised eminently sensible and pertinent points. I commit to looking at the definition of an energy-intensive industry, and specifically at his point about how the less carbon-intensive elements of farming may reduce the overall burden of carbon intensity.

Let me turn to the hon. Member for North Ayrshire and Arran (Patricia Gibson), the spokesperson for the Scottish National party. I will not take any lectures from the SNP on supporting Scottish farmers. It is not the Conservative Government, but the SNP Government who have been accused by the National Farmers Union Scotland of leaving farmers to operate in an information void, given the lack of progress on the Scottish post-Brexit farming Bill.

If the hon. Lady really is as passionate as she says she is about supporting domestic food production in Scotland, perhaps she will make the case within the SNP Government that they should get on board and extend the Genetic Technology (Precision Breeding) Bill to Scotland, just as the NFUS has asked them to. That could be a great fillip and a great boost for Scottish farming, given that so much of the technology in that field is being developed in Scotland. Other than that, the hon. Lady did make some important points regarding supporting Scottish farmers, which, of course, I take on board.

I thank the hon. Member for Upper Bann for raising the issue of farms not being eligible for the additional targeted support of the energy and trade-intensive industries scheme. I am aware that the National Farmers Union and the Ulster Farmers Union have raised similar concerns. I want to stress that the energy and trade-intensive industries eligible sectors list is targeted and comprehensive. It was developed to support sectors in the top 20th percentile for energy intensity and the top 40th percentile for trade intensity in the UK, notwithstanding what I said in reply to the hon. Member for Southampton, Test about the carbon intensity of some elements of farming.

Sadly, the farming sector does not meet the ETII eligibility criteria at the minute and is therefore not eligible to receive the targeted support. Although I recognise that the hon. Member for Upper Bann would wish us to go further, I hope she will understand that we have sought to be fair in applying the criteria rigorously and objectively. We do not have plans to extend the scope of eligible sectors to include farms, as confirmed by the Chancellor at the Budget. However, the non-domestic alternative fuel payment offers one-time support of £150 to approximately 76,000 customers in Northern Ireland and 315,000 non-domestic customers without access to mains gas, including some farms, throughout Great Britain. High users of heating oil can apply for a top-up payment based on their usage over the past year.

It is essential that we look at energy bills support for farms and farmers in the round. Although farms will benefit from the EBDS at its base support level, rather than at the enhanced level for energy and trade-intensive industries, they will also benefit from funding available to domestic customers. That includes the energy price guarantee, the alternative fuel payment and the energy bills support scheme. The energy price guarantee reduces electricity and gas costs for domestic customers, aiming to lower annual bills, combat fuel poverty and maintain supplier market stability. The scheme covers approximately 29 million households.

In Northern Ireland, all households are receiving a combined payment of £400 from the energy bills support scheme and a £200 alternative fuel payment, regardless of whether they use alternative fuels or mains gas to heat their homes. That payment has been provided by electricity suppliers to all households with a domestic meter and a contract. That will include farmhouses with a domestic meter. Farms in Northern Ireland with a combined meter are covered by the alternative funding, to which I will turn shortly. Suppliers began making payments on 16 January and have confirmed that all first attempts to reach all customers have been made. Efforts are now ongoing to reach those who encountered challenges in the first pass, such as vouchers addressed to the wrong individual or failed bank transfers. Those who have not yet received their vouchers or a payment into their bank account should immediately contact their electricity supplier.

In Great Britain, the energy bills support scheme is being delivered as a discount on energy bills and provided by suppliers in monthly instalments from October 2022 to March 2023. As we are now approaching the end of the scheme’s final month, I urge all hon. Members to join the Government in highlighting to their constituents who use traditional prepayment meters the importance of acting now to redeem their energy bills support scheme vouchers.

[Jim Shannon]

Over the weekend, it was indicated in a newspaper that 20,000 households in Northern Ireland have not received their benefit. Is there any way that the Minister can ascertain who those 20,000 households are? Are some of them farmers? We suspect that they are. There was certainly an issue early on, with some farmhouses not receiving the benefit. Would the Minister be so generous as to find out the answer to that question?

[Andrew Bowie]

Across the entire United Kingdom, 1.9 million vouchers remain unused, which is why I ask all hon. Members to encourage people who have not received their vouchers, or who are not receiving the discount that they should be, to contact their electricity supplier, either directly or through their Member of Parliament. I will find out the fuller answer to the hon. Gentleman’s specific question on where those people are.

For those without a domestic energy supply, who were not eligible for automatic support, we have introduced the energy bills support scheme alternative funding in Great Britain and its Northern Ireland counterpart, the energy bills support scheme alternative funding for Northern Ireland. They offer one-off, non-repayable payments of £400 and £600 respectively. In Northern Ireland, applications are processed by our contracted delivery partner, with Government support. The £600 payment in Northern Ireland comprises £400 for energy bills, as in Great Britain, and £200 for alternative fuels, mirroring the payments under the main energy bills support scheme in Northern Ireland.

The Government are committed to providing assistance to farmers, households and businesses affected by high energy costs. The comprehensive schemes that I have outlined have been designed to offer support when it is most needed and alleviate the burden on our citizens and businesses during these challenging times.

I congratulate the hon. Member for Upper Bann on securing this debate on a subject of great importance to many farms, businesses and households. I commit to taking away all that she and others have raised about the high intensity of those businesses. I would be delighted not just to visit her constituency but to work further with her if my Department can provide further assistance to ensure that support reaches all those who need it as swiftly as possible.

Nuclear Decommissioning and Radioactive Substances Consultation

Andrew Bowie Excerpts

Wednesday 1st March 2023 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The UK Government and devolved Administrations are today publishing for consultation proposals to update policies on nuclear decommissioning and the management of radioactive substances, including radioactive waste.

We use radioactive substances in many different products and processes: to treat and diagnose serious illnesses, to deliver research and development, and in industrial processes. In some parts of the UK nuclear power continues to provide low-carbon electricity to our homes and businesses. Nuclear power will continue to be an important source of low-carbon electricity as we work towards reaching net zero carbon emissions by 2050.

Most uses of radioactive material generate radioactive waste, which needs to be managed. The waste can occur as gases, liquids or solids. Radioactive substances policy covers the management and use of radioactive materials and how any subsequent wastes and legacies are then managed to ensure that people and the environment are not exposed to unacceptable risks.

The last overarching policy document on the management of radioactive waste, Command Paper 2919, “Review of Radioactive Waste Management Policy: Final Conclusions”, was published in 1995. Since then, the regulatory and policy landscape has changed significantly, not least with the advent of devolution and the creation of new regulatory bodies and the Nuclear Decommissioning Authority. Some parts of the Command Paper have been updated and replaced with new policy documents. Furthermore, new policies have been developed that did not originally feature in Command Paper 2919.

The UK Government and devolved Administrations consider it time to replace Command Paper 2919 and the separate policy documents that have superseded some parts of it with a consolidated UK-wide policy framework. In doing so, we aim to set out clearly those policies that are pursued jointly by the UK Government and devolved Administrations and any separate policies that apply in any one nation.

The proposals update, clarify and consolidate a number of policies into a UK-wide policy framework and facilitate speedier and more cost-effective decommissioning and radioactive waste management. They aim to create clearer and more consistent policy objectives across the UK, to reduce unnecessary burdens and to unlock more innovative and sustainable ways of working, realising significant savings for industry and the taxpayer whilst maintaining high standards of safety, security and environmental protection.

The consultation is in two parts. Part I sets out policies that we are proposing to amend. The proposals are aimed primarily at driving improvements in nuclear decommissioning and managing radioactive waste. Part II is a draft of the proposed UK-wide policy framework as it would appear if the policy changes being consulted on in part I were implemented.

I am placing copies of the consultation in the Libraries of both Houses.

[HCWS589]

Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 28th February 2023 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

4. Whether he has made a comparative assessment of the adequacy of protection against carbon leakage for energy-intensive industries under the (a) UK emissions trading scheme and (b) EU emissions trading system.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The UK has committed to protecting our industry from carbon leakage, and like other carbon pricing systems, including the EU ETS, we currently provide free allocations to at-risk sectors. We are undertaking a review of both free allocation and carbon leakage policy.

[Sammy Wilson]

Since it was set up in 2020, the result of the UK emissions trading scheme has been that the cost of carbon allowances has consistently been much higher than in the EU and other competitive countries, partly due to the fact that the net zero policy has led to a reduction in those allowances. That has led to heavy industries such as steel, aluminium and oil refining going abroad, with a loss of jobs and strategic industries. Given the impact that this is having, will the Minister commit first to rejecting the 50% reduction in allowances planned for 2024, and secondly to reforming the cost containment mechanism to make it easier to intervene in future?

[Andrew Bowie]

I hear what the right hon. Gentleman says. We currently give sectors at risk of carbon leakage a proportion of their allowances for free, to reduce their exposure to the carbon price, with those free allowances being worth billions of pounds per year at current prices. The 2021 “Developing the UK ETS” consultation proposed to guarantee this level of free allocation until 2026, subject to activity level changes. We will consult no later than the end of 2023 on the methodology for distributing free allowances and explore ways to better target free allocations at those most at risk of carbon leakage.

[Tom Hunt (Ipswich) (Con)]

6. What steps he is taking to help businesses with their energy bills.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The Government are supporting hydrogen projects around the country, including in the north-west, with capital support from the £240 million net zero hydrogen fund, support through the hydrogen production business model and through the cluster sequencing process. As my hon. Friend is aware, HyNet North West is included in the track 1 cluster.

[Andy Carter]

My Warrington South constituency is home to one of the largest aluminium can recycling plants in the UK. It takes used beverage cans and turns them into brand new cars. It is eager to transition its furnaces to hydrogen and is part of the HyNet carbon capture and storage programme. What Government support is available to major industrial manufacturers such as Novelis to help it to reduce its emissions?

[Andrew Bowie]

The Government have a range of policies to incentivise and support industry to invest in innovative, clean technologies, including low-carbon hydrogen. Those include the £170 million industrial decarbonisation challenge, the £350 million industrial energy transformation fund, the £26 million industrial hydrogen accelerator and the £55 million industrial fuel switching competition. If my hon. Friend were to invite me, I would be delighted to visit Warrington to see that world-leading aluminium plant as it transitions to hydrogen.

[Mr Speaker]

And they are playing rugby tomorrow night.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Are the Government taking hydrogen seriously enough in the north-west and other regions? We have built a network of hydrogen filling stations for trucks across the UK and hydrogen has enormous potential. What is the Minister doing to work with our leading universities on the development of hydrogen energy?

[Andrew Bowie]

I thank the hon. Gentleman for his question. The Government take the potential of hydrogen incredibly seriously and we are very positive about the benefits that hydrogen will bring to this country as we move towards a clean, green, renewable future. That is why we are working with BP, Equinor, Scottish Power, Octopus, RES and research institutions across the country to maximise the potential for hydrogen.

[Boris Johnson (Uxbridge and South Ruislip) (Con)]

T1. I congratulate my right hon. Friend—[Interruption.] Oh sorry, question 1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

I have been hearing from Hillingdon Council and Harrow Council about their ambitious plans to improve my constituents’ access to electric vehicle charging. Does my hon. Friend agree that it should be a higher priority for the Mayor of London to improve access to environmentally friendly transport, rather than imposing a ULEZ?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

I could not agree more. Frankly, if the Labour Mayor of London were to focus more on that, rather than imposing yet another tax on the hard-working people of outer London, he might actually not be failing this great capital and its people as much as he is, unlike the two Conservative councils that are acting positively to increase the availability of and accessibility to electric vehicle charging points across the region.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

T6. I listened carefully to what the Secretary of State said about prepayment meters. Could he confirm that forced installations will not go ahead until the penalty on prepayment meters has been abolished— yes or no?

--- Later in debate ---

[Andrew Bowie]

Yes. Representing a rural constituency myself, I understand just how important fertiliser manufacturers are. The energy bill discount scheme will start on 1 April, providing eligible businesses with a discount on high energy bills until 31 March 2024. The list of eligible sectors has been published, and I am delighted to confirm that it will include manufacturers of fertilisers and nitrogen compounds.

[Mohammad Yasin (Bedford) (Lab)]

T9.   Last summer, I attended the opening of Infarm, a vertical farm facility in Bedford, focusing on locally grown food to help us to improve our domestic food security and to reduce our carbon footprint. Within six months, the company announced that it was closing, citing energy prices, supply chains and the rising cost of materials. Given the empty shelves in our supermarkets, what action is the Secretary of State taking to ensure that businesses that are trying to ensure our food security can operate?

[Andrew Bowie]

I am afraid the hon. Gentleman has not been listening to what we have been saying for the past hour. We are determined to ensure that we move towards net zero in a sensible and measured way, leading the world as we do so while ensuring food security across the country.

[Selaine Saxby (North Devon) (Con)]

Contracts for difference have been successful in driving down the cost of renewable energies. However, industry bodies and developers are warning that the draft strike prices for allocation round 5 are too low. Can my right hon. Friend commit to a review of strike prices to ensure that the allocation round is a success for renewable energy technologies such as floating offshore wind?

--- Later in debate ---

[Martin Vickers (Cleethorpes) (Con)]

Knauf, a major manufacturer based in Immingham, seeks to build a hydrogen-ready combined heat and power plant to reduce its emissions. The project may stall, however, because Northern Powergrid has told Knauf that it cannot provide a connection until 2031. Could the Minister intervene and try to overcome the problem?

[Andrew Bowie]

Yes, I would be happy to intervene. I am very happy to meet my hon. Friend and the company concerned to see what we can do to resolve the issue.

[Alison Thewliss (Glasgow Central) (SNP)]

As the proud host venue of COP26, the Scottish Event Campus in my constituency well understands the challenges of reaching net zero, but like many businesses in the events sector, it is facing astronomical energy bills. Would a Minister be willing to meet the Scottish Event Campus to discuss those bills and its ambitious plans for reaching net zero through investment in the campus?

[Andrew Bowie]

I would be absolutely delighted to meet the hon. Lady and the Scottish Event Campus. We are doing everything we can to support businesses that are struggling with energy bills at the moment. It is just a shame that, as a result of the Scottish Government cutting local authority budgets north of the border, Glasgow City Council will not be able to do as much as it would like to support the Scottish Event Campus as we move forward.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Leisure centres such as Kidsgrove Sports Centre, and particularly those that have swimming pools, are feeling very nervous about the end of the energy support that they are receiving today. What discussions has the Secretary of State had with the Treasury to ensure that support continues so we do not lose these community assets?

Draft Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023

Andrew Bowie Excerpts

Monday 27th February 2023 General Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

I beg to move,

That the Committee has considered the draft Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023.

It is a pleasure to serve under your chairmanship this evening, Sir Edward. The regulations were laid before the House on 8 February 2023. The draft instrument makes an amendment to the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 and the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015.

The amendment removes a condition on the contracts for difference scheme that derives from the European Union’s state aid approval of the scheme. It will remove the availability to electricity suppliers in Great Britain of a partial contracts for difference scheme cost exemption, which currently allows for an electricity supplier’s cost obligations to be disproportionate to the supplier’s market share. The contracts for difference scheme is the Government’s flagship renewable electricity support scheme. It has been hugely successful in driving the substantial deployment of renewables at scale in Great Britain while rapidly reducing costs to electricity customers.

Payments to electricity generators supported by the contracts for difference scheme are funded through a compulsory levy on electricity suppliers in Great Britain, known as the supplier obligation. Individual companies contribute to the cost of these schemes in proportion to their share of the GB electricity sales market. Electricity suppliers can seek a partial exemption from these costs for renewable electricity generated in an EU member state and supplied to customers in GB.

Our aim in making the change is to address the distortion created by the exemption, and to remove the incentive for GB suppliers to import renewable electricity generated by EU member states. The exemption will continue to apply to electricity supplied up to and including 31 March 2023. The green excluded electricity exemptions were introduced as a condition of the state aid approvals granted by the European Commission to the CfD scheme.

The UK having left the EU, the Government believed it was appropriate to undertake a review of the exemptions, so that the UK could continue to ensure equal opportunity for all potential trading partners. This change is a result of that review, and it will ensure that all suppliers subject to the supplier obligation levy pay an amount that is more proportional to their market share.

The Government, in consultation with industry, see a clear rationale for the removal of the green excluded electricity exemption from the CfD scheme. The change will bring about closer alignment between a GB electricity supplier’s market share and its proportion of the CfD scheme cost. Subject to the will of Parliament, the arrangements will come into force on 1 April 2023. By removing the exemptions, we are delivering on one of the Government’s priorities, which is to address the legislative legacy of our EU membership. I commend the regulations to the Committee.

--- Later in debate ---

[Andrew Bowie]

I thank hon. Members for their contributions. The hon. Member for Southampton, Test, made some good and sensible points on the SI and the policy. It is only right and proper that companies provide evidence that they are importing electricity. This SI was brought forward following extensive consultation with industry, and we expect companies to do the right thing. In terms of sustaining extra costs, those suppliers who have used the exemption will pay the scheme a cost in closer proportion to their market share. There are more suppliers who will benefit from this change than not. The change is considered to be very minor. The extra cost that the companies will pay will be minor, and we do not suspect that it will be in any way a disincentive for them to declare that they are importing energy.

I welcome the fact that the hon. Member for Kilmarnock and Loudoun put on record that he considers CfD to be a success. I agree: it certainly has been a success. Indeed, we have only to look at my constituency and the number of wind turbines springing up off the coast of Aberdeenshire. On grid connections and the cost for electricity generation in Scotland, he knows that there is a trade-off, and that consumers in Scotland pay less as a result of the higher charges being placed on electricity generation. That is not to say that there are not issues that need to be addressed. I agree that there are, and we should look at them. I hear loud and clear his comments on tidal stream energy. In fact, I have been to see the exciting developments in Orkney, and I look forward to doing more on this.

[Dr Whitehead]

Will the Minister give way?

[Andrew Bowie]

I will, given that we have taken up so little time so far.

[Dr Whitehead]

I am grateful to the Minister for giving way. He passed over my point about whether the suppliers will get a payout from the LCCC when the difference between the strike price and reference price is inverted from its normal position. If they will, how much will that come to?

[Andrew Bowie]

I am terribly sorry: I will have to write to the hon. Member on that point, but I will get an answer to him in the next couple of days, because it is important that it is answered.

I hope that I have given hon. Members the necessary assurances to approve the statutory instrument. As I said, the changes in these regulations will mean that a supplier in GB will pay a proportion of the CfD scheme cost that is closer to its market share; will remove the condition imposed on the British scheme by the European Commission; and will remove the incentive for GB suppliers to import EU-generated renewable electricity. They must be made now, ahead of the end of the scheme’s reporting period on 31 March, so that electricity suppliers and the scheme administrators can plan accordingly.

Question put and agreed to.

Independent Review of Net Zero

Andrew Bowie Excerpts

Thursday 9th February 2023 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

I beg to move,

That this House has considered the Independent Review of Net Zero.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, and should declare that I am the chair of the independent review of net zero that we are discussing. I thank the Backbench Committee and its Chair for agreeing to this debate. We had an excellent debate in the other place, led by Baroness Hayman, on the recommendations in the “Mission Zero” report, which was published on 13 January. Members may recall that the review was commissioned by the previous Administration, and the previous Prime Minister, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), in September 2022. The review’s remit was to allow us to understand how we can transition to net zero in a more affordable, efficient manner that is pro-business and pro-growth.

Having been appointed chair of the review, I undertook what I understand is perhaps the largest ever engagement exercise specifically on net zero conducted in Government. We received 1,800 written responses to our consultation. I held 52 roundtables, virtually and in person. I toured every region of England and every devolved nation of the UK, and spoke in person to around 1,000 people to understand directly the challenges and opportunities of energy transition for the UK. In that consultation, the message that I heard from the overwhelming majority of respondents was that when it comes to the opportunities that net zero and energy transition can bring to the UK, Westminster, Whitehall and Government are falling behind the curve. Thousands of infrastructure projects are ready to take place, and thousands of businesses see the opportunity in net zero.

The opportunities are not just national; 2022 marked a tipping point in international opportunities for green technology. First, Russia’s illegal war in Ukraine woke countries up to their dependency on foreign-owned gas and oil. We have to be able to provide domestic sources of energy in future. That is why interest in renewable and clean technologies has escalated. Not least, as the report was being prepared, the US passed its Inflation Reduction Act, which provides for $369 billion of investment in green and climate technologies for the future, and sets out a clear direction of travel, and a programmatic approach to investing in carbon capture, utilisation and storage technology, hydrogen, renewable power and new nuclear power. At the same time, the European Union has taken forward its “Fit for 55” programme, and has provided further detail of how it will invest up to €1 trillion in the European green deal.

The review comes at a time when we are at a crossroads. On the one hand, we could continue on our trajectory as leaders on climate policy. We were the first G7 country to sign net zero into law. We could carry on showing leadership, as the only major industrial nation that has been able to reduce its emissions by 40%. Or we could take the other turning—a turning that is not zero and would see us resile from our climate commitments, and from the investments that we have made. Ultimately, the choice of not zero will cost more than continuing in the direction of working towards net zero. That is the choice. I was the Minister at the Dispatch Box 43 months ago, taking forward legislation to ensure we could be the first G7 country to sign net zero into law. I thank the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) for his commitment and congratulate him on his new role. I understand that this is probably his first debate as a Minister in the new Department for Energy Security and Net Zero. It may even be the first debate that the new Department responds to. I am delighted that we have a new Department with “Net Zero” in its title. I hope he enjoys reading the “Mission Zero” report. I am sorry it is 340 pages. I am not holding him to having read every page for this debate, but hopefully it will form part of his weekend box.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

Recess reading.

[Chris Skidmore]

It needs to be sooner than that. Basically, we have an opportunity now for the Government to look at the recommendations in the report.

The report is divided into two sections. The first part is a new narrative on net zero. As the chair of the net zero review team, I put on record my thanks to my fantastic team of 22 dedicated civil servants who were drawn from across all Departments. I can see one in the Box now, who is working with the Minister. If it was not for the team, we would not have produced a report of such quality. We set out a new narrative on net zero. It is not some kind of eco-project or religion, and I do not stand here thinking that I want the imposition from the centre of top-down policies. I recognise that the challenge we face is to ensure that everyone in society is able to see the opportunities of the energy transition for the future. There will be challenges, and the report is open about those challenges and costs. At the same time, there is an international opportunity: we are now in a global net zero race. We can either continue to lead or we will follow, and the cost of following will always be greater than the opportunity of showing first mover advantage. There are no free rider opportunities here.

[Chris Skidmore]

I had a fascinating opportunity to visit Belfast to hold two separate evidence roundtables. The first was with Belfast City Council, which gave me the public sector perspective on the challenges of decarbonisation and the public estate in Northern Ireland. The second roundtable was with private business and industry, with the Belfast chamber of trade and commerce. What I took from that opportunity to speak specifically about Northern Ireland’s concerns and opportunities was that there are challenges in Northern Ireland. In particular, it will probably achieve net zero later than 2050. On our overall UK net zero target, that is the case for both Northern Ireland and Wales. For Scotland, it will be a bit sooner, in 2045, as I am sure the Minister knows given that his constituency is at the forefront of bringing forward some of the green opportunities that will allow Scotland to go further and faster.

[Andrew Bowie]

indicated assent.

[Chris Skidmore]

A really important part of the report, which I will come on to in the moment, is taking a place-based approach to net zero. We will achieve net zero in a more affordable and efficient way if we allow local communities, whether they are cities or rural areas, the opportunity to be more empowered to understand how to achieve net zero in a way that suits their local communities.

In Northern Ireland, I listened to concerns about how agriculture could be decarbonised. Northern Ireland wants a whole raft of new biomethane plants. At the same time, there is a new fleet of hydrogen buses in Belfast—it is really pushing forward on fully decarbonising public transport. There was a fascinating discussion on how Northern Ireland wanted to be a leader on green hydrogen. It may not have much offshore wind, but there is a huge opportunity for onshore wind and for the use of hydrogen to drive a whole new economy. Picking up all the pieces that come together that demonstrate the opportunities in every region is exactly what the report tries to reflect.

The report sets out the new narrative that net zero is the primary economic opportunity of this century, but if we do not invest now—that investment is primarily private sector investment, but it needs certainty, clarity, consistency and continuity from the Government on policy—we will turn our backs on a potential £1 trillion of investment by 2030 and turn our backs on up to 480,000 new jobs by 2035. In a way, the net zero review is a bit of a misnomer. I was keen to look at the targets that have been set and to understand how we will realistically meet them. The worst thing one can do in politics is overpromise and underdeliver; it completely undermines confidence in the ability to deliver on our climate commitments and the energy transition.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

I thank the Backbench Business Committee for securing this important debate, and my right hon. Friend the Member for Kingswood (Chris Skidmore) for publishing the report and pushing for this debate.

Before I move to the subject of the debate, it will not have escaped the notice of Members—in fact, it has been referenced a few times—that I stand here as a Minister on behalf of the brand-new Department for Energy Security and Net Zero. As my right hon. Friend suggested, this is the first debate for this new Department, on my second day. I hope that demonstrates our commitment to net zero. The Department’s laser-like focus will be on securing a long-term energy supply, bringing down bills and halving inflation, giving the UK cheaper, cleaner and more secure sources of energy—something covered in great detail in part 2 of this excellent report.

The report and the creation of the Department align wholeheartedly with the great strides the UK has already made in our actions to tackle climate change. In 2019, my right hon. Friend the Member for Kingswood and the former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May), ensured that the United Kingdom became the world’s first developed country to set a legal commitment to reach net zero by 2050. That was followed by our 10-point plan for a green industrial revolution, published in November 2020. We built on that momentum in October 2021 by publishing the net zero strategy, which set out a detailed pathway to meeting our carbon budgets and net zero targets. That was followed by the British energy security strategy in April 2022, accelerating our ambitions on cleaner energy.

As Members will be aware, since publishing the net zero strategy, the economic conditions have changed significantly, due primarily to the Russian invasion of Ukraine. Energy prices and inflation rose sharply—the former to record levels. In the light of that, in September last year the Government appointed my right hon. Friend the Member for Kingswood to chair an independent review of our approach to meeting our net zero 2050 target, to ensure that we deliver on our legal commitment to reach net zero by 2050 in a way that is pro-business and pro-growth, given the change in the economic landscape.

I am delighted that the results of my right hon. Friend’s independent net zero review were published on 13 January 2023. I wholeheartedly thank him and congratulate him on his work. This is a substantial and thorough report. I assure him that I will read it in full very soon, and that a full Government response will follow later this year. As we have heard, the independent review of net zero heard from businesses, academia, individuals and local government across the country that net zero is creating a new era of change and opportunity. It confirms that the Government have understood that the benefits of net zero far outweigh the costs and have acted on that for some time. It explains the opportunities and benefits of net zero for individuals and the economy, and specifies the action needed in individual sectors of the economy, through to how we enhance the role of local authorities, communities and the individual to deliver a just tradition. [Interruption.] If those on the Opposition Front Bench would listen rather than chuntering from a sedentary position, I said I would read it in full. I have read the report, but I will read all 120 recommendations in full and we will reply in full later this year.

Furthermore, the report reconfirms that the 2021 net zero strategy is still the right pathway, based on modelling on the most cost-effective net zero energy system in 2050, and that the policy should go ahead.

[Alan Brown]

Will the Minister give way?

[Andrew Bowie]

I will not, given that I have made a commitment on time.

The review of net zero recognises that we have all made a great deal of progress through leveraging our international leadership in COP26. The proportion of the world committed to net zero has risen from 30% of global GDP to 90%. His Majesty’s Government have committed more than £2 billion to support the transition to zero-emission vehicles. That funding has focused on reducing barriers to adopting such vehicles, including offsetting the higher upfront cost and accelerating the roll-out of charge point infrastructure.

I take issue with the tone taken by the hon. Members for Bristol East (Kerry McCarthy) and for Brentford and Isleworth (Ruth Cadbury), who claimed that the Government had done nothing on climate. It was a Conservative Government who legislated for net zero. It was a Conservative Government who hosted COP26, and we look forward to working with the UAE as it looks to deliver COP this year to carry on that excellent work. It was a Conservative MP who brought forward the legislation for net zero—indeed, the same MP who wrote the report that we are debating. It was a Conservative Government who hosted the green trade and investment expo in Gateshead last year.

Unlike the Opposition, I am proud that we are leading the way in developing and exporting green technology. There were 430,000 green tech jobs in this country, worth £41.2 billion, in 2022. Companies like Catagen in Belfast, which I visited late last year, are developing green hydrogen and the e-fuels of the future. The hon. Member for Bristol East talked about onshore wind but completely ignored offshore wind. We are the world leader in offshore wind. We have the four largest offshore wind farms in the world off the coast of this island right now.

Despite all that, we are not resting on our laurels. We are raising our ambitions to ensure that we deliver net zero and realise the benefits. In last April’s British energy security strategy, we raised the ambition to deliver up to 50 GW of offshore wind by 2030, including 5 GW of floating offshore wind. We have already invested millions in offshore wind, securing many jobs and up to £320 million of Government support for fixed-bottom and floating wind ports and infrastructure.

To accelerate a reduction in energy demand—[Interruption.] If those on the Opposition Front Bench listen, they might learn something from what we are announcing today in response to the report. To accelerate a reduction in energy demand, the Government announced a long-term commitment in the 2022 autumn statement to drive improvement in energy efficiency to bring down bills for households, businesses and the public sector, with an ambition to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030, against 2021 levels. That will be supported by an additional £6 billion commitment to 2028 and the launch of a new energy efficiency taskforce, further details of which will be announced in due course. By 2030, 95% of British electricity could, if we work together, be low carbon, and by 2035 we will have decarbonised our electricity system, subject to security of supply.

I turn to the concerns raised by my right hon. Friend the Member for Gainsborough (Sir Edward Leigh). As a Member representing a vast rural constituency with a similarly vast road network, I hear the concerns about the EV charging network and the protection of farmland for food security. The Government take this incredibly seriously, and in due course the Department for Environment, Food and Rural Affairs and our Department will publish plans for how we speed up the roll-out of the EV charging network and ensure food security while meeting our net zero ambitions.

We continue to build on the strong progress we have already made. We have many exciting policy announcements in the coming year. The Energy Bill, which is going through Parliament right now, will deliver an energy system that is cleaner, more affordable and more secure. We are committed to publishing an update to our green finance strategy early this year, setting out how we will mobilise finance for the UK’s energy security, climate and environmental objectives, and maintain our position as a leading green finance hub. We will set out the next steps of the United Kingdom’s emissions trading scheme in response to last year’s consultation. We have committed to adopting a zero-emission vehicle mandate, requiring that a percentage of manufacturers’ new car and van sales be zero-emission each year from 2024.

[Alan Brown]

The Minister is talking about green finance. What about the key recommendation that the UK Government have to do more funding-wise, particularly to offset the Inflation Reduction Act in the United States? We have the electricity generator levy here. The US is incentivising investment in renewables. Will the UK Government address that?

[Andrew Bowie]

This Government are committed to incentivising investment in renewables across the piece, working with the energy sector and others. In the full response to this report, which I assure Members will come later in the year, we will set out more plans in that regard. The hon. Gentleman is right; that is something we need to do.

New technology will be critical to the transition, and this comes back to the point made by the hon. Member for Bath (Wera Hobhouse) about phasing out fossil fuels. Of course we need to move away from a reliance on fossil fuels as our energy baseload. That is why we are transitioning. That is why Offshore Energies UK has its “Vision 2035” to make the North sea the first net zero basin in the world. We continue to work with the oil and gas sector as it produces the energy we require and will need for many years to come, and as it invests in the new technologies of the future, including carbon capture and storage—a technology in which there are many projects across the country.

[Wera Hobhouse]

Is the Minister not aware that the biggest investment is still in oil and gas exploration and extraction? How does that fit with what he just said?

[Andrew Bowie]

Exploration and drilling will continue. We will be reliant in some way on oil and gas for years to come. At the same time, we are working to increase our investment in renewables, as well as new technologies, including the developments in hydrogen and e-fuels that I have seen myself. This is a transition. It is not a case of simply turning off one form of energy and turning on another. We need to transition away from fossil fuels. That is why it is really important that we work with the oil and gas companies operating in the North sea to achieve that, as well as increasing our investment in new technologies being developed in this country.

We are a world leader in green and clean tech, as I saw just last week. We are delivering green and clean tech to countries across the world, but we must also work with our existing industry. The net zero research and innovation delivery plan will set out the Government’s current portfolio of research and innovation programmes that are backing Britain’s most innovative businesses to develop the next generation of technologies needed to deliver net zero. We expect to set out the next steps in a range of other critical areas, from energy efficiency to carbon capture and storage, very soon.

[Matt Rodda (Reading East) (Lab)]

Does the Minister agree that part of the overall package needs to be improvements in connectivity for new solar farms to improve the roll-out of solar across the country?

[Andrew Bowie]

Yes, that will play a major part in where we move to, as we take forward the ambitious agenda that this Government instigated by legislating for net zero and that has been reinforced by this report, which we will reply to in full in due course. Extending and improving connectivity for solar farms is, of course, important.

As I have set out today, our net zero target remains a Government priority. I assure the House that we will carefully consider the recommendations proposed in the review and in this debate, and provide a full Government response later in the year.