Energy Bill [Lords] Debate

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Energy Bill [Lords]

Andrew Percy Excerpts
Monday 18th January 2016

(8 years, 3 months ago)

Commons Chamber
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Nigel Adams Portrait Nigel Adams
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My right hon. Friend makes a perfectly sound point. That is the case today, for example. I will be more generous to the wind industry: I think that 1.11% of power today is being generated by wind. We all know what happened in November, but I will come on to that a little later. We are becoming more reliant on intermittent renewables.

Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
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I live opposite a wind farm in my hon. Friend’s constituency. I do not blame him for not preventing it, because it was before his time. Many of the people who are in favour of wind farms are not surrounded by them as people in my constituency are. On the issue of renewable energy and its intermittent nature, does he not agree that one form of generation that we should be promoting more and that we know very well in our area is biomass, which not only supports thousands of jobs at Drax power station, but is a source that we can turn on and off at will?

Nigel Adams Portrait Nigel Adams
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My hon. Friend and neighbour is absolutely right. I applaud the work that Drax power station has done and I look forward to biomass generation going ahead at Lynemouth, which is under new ownership. It is a much cleaner fuel than coal. Indeed, it reduces emissions by about 80%. I would like the Government to get behind more biomass. I am sure that they will have an explanation for why there might be three pots for offshore wind, but I would like biomass to be able to fight on an even keel with the other technologies.

There is increasing dependence on offshore wind and solar. The situation is getting worse, not better. The nuclear stations, when built, will form part of the solution, but they cannot react to changes in demand or failures in supply anything like fast enough to keep the lights on. They can provide only base-load power, which is important but is not the answer to the intermittency problem.

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Nigel Adams Portrait Nigel Adams
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That is a fair point from my hon. Friend, but we certainly need bridging technologies, because we will have a gap in which we could see days like those we saw in early November.

Andrew Percy Portrait Andrew Percy
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Will my hon. Friend give way?

Nigel Adams Portrait Nigel Adams
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I feel as generous as Santa Claus today, Madam Deputy Speaker.

Andrew Percy Portrait Andrew Percy
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I thank my hon. Friend for giving way. First, although we are aware that coal is the dirtiest form of generation, it employs an awful lot of people in our area for one thing. Secondly, does he agree that the real concern is that losing Drax, Eggborough and Ferrybridge will put us in a position where the lights go off? Woe betide any Government who preside over the lights going off. We need certainty that losing coal will not lead to that.

Nigel Adams Portrait Nigel Adams
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I totally agree. That is another great advertisement for sustainable biomass. We have paid for these assets—the Central Electricity Generating Board built these power stations—so let us sweat them for more decades. Biomass is the answer in the short term. Who knows? There might be other technologies that we could be using at them, such as hydrogen power. I am sure that there are the brains out there to find a way to use that resource.

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Edward Miliband Portrait Edward Miliband
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It is totally simplistic to say that the Climate Change Act has led to that. It is a result of a whole series of decisions that the Government have had to make. As the right hon. Gentleman and the right hon. Member for Hitchin and Harpenden will remember, Lord Stern’s report made the crucial point that the cost of not acting on climate change will be greater than the cost of acting. Just look at the floods that we have seen in the last couple of months! We are going to have a lot more of that—coming soon to a constituency near you! I am sorry to accuse the right hon. Member for Wokingham (John Redwood) of sticking his head in the sand, but that is exactly what we are doing if we say that we do not need to act, that everything will be okay and that we should just carry on with business as usual. To be fair to the Secretary of State, who might not thank me for saying this, I do not think she believes that that is what we should do. She is on the right side of this argument. Of course we have to do it at the lowest cost we can, but let us not pretend that somehow this problem does not exist—we are seeing its effects all around the world, and if we do not act, we are going to have a lot more of them.

Andrew Percy Portrait Andrew Percy
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Although I agree with much of what my neighbour said about climate change, the perception, which seems also to be partly the truth, is that in trying to act in this country we have simply exported a lot of our emissions overseas and we are now importing steel which is dirtier than that which would be produced here. That is what steelworkers in my constituency, who are facing job losses, are saying.

Edward Miliband Portrait Edward Miliband
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The carbon price floor was introduced by this Government—or, rather, this Government when they were in coalition. The point is not to deny that transition needs to take place; the point is we have to do it in the right way, and I do not disagree with that.

I now wish to carry on making my case. If we support zero emissions globally—that is what the Secretary of State has done—the logical position is that we must also support it domestically. We set a target of an 80% reduction, but it does not make sense to have 80% as the target when we know from the science and from the global agreement that we will eventually have to get to zero emissions.

The second part of my case is based on economics, and I wish to make the following comments to Conservative Members in particular. They will worry that my proposal sounds as though it is going to raise costs, but quite the opposite is true. I ask them to listen to some of the business voices who are saying that they want us to set a clear target for zero emissions. Why are they saying this? It is because certainty is the friend of business in this area and uncertainty its enemy. Richard Branson has said that a net zero emissions goal simply makes “good business” as it

“will drive innovation, grow jobs, build prosperity”.

He is joined by many other business leaders in making that case. Just as it is the right thing to do for business, so, too, is it the right thing for government. We are going to have to make decisions on infrastructure now which will have implications for 20, 30, 40 years hence. It is right to make those decisions on the basis of what we will eventually have to achieve, albeit in the second half of the century, because we know that we will have to get there.

Thirdly, and finally, my case goes beyond our borders. The Paris agreement is a great one, but its biggest weakness is that if we look at the aggregate of the different commitments made by different countries, we see that although the aspiration may be to limit warming to less than 1.5°, when we add them up they seem to be more like 3°-worth of commitments. Some might ask what difference the UK can make, as it represents only 1% of global emissions. They might ask why our acting has an impact. I say to the House that it does have an impact. The Climate Change Act—I give credit to the Conservative party because it supported this and actually pushed the then Government to do this—had an impact, not only in Britain but around the world. When the Secretary of State went to the Paris negotiations and urged others to take action, they were not able to say to her, “You are pretending you care about these things and want to legislate for them, but actually you are not taking action in your own domestic legislation.” We did do that.