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and devolved Administrations consider it time to replace Command Paper 2919 and the separate policy documents that have superseded some parts of it with a consolidated UK-wide policy framework.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.

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[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.

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[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?

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[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?

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[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.

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[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.

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[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.