Oral Answers to Questions

Anne-Marie Trevelyan Excerpts

Tuesday 6th July 2021 Commons Chamber

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

What steps his Department is taking to support the marine renewables sector.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

Since 2003, various bodies across Government have provided innovation funding of £175 million to the wave and tidal sectors. Projects remain eligible to compete in contract for difference auctions. We have also set a target of 1 GW by 2030 for floating offshore wind to stimulate investment. We are currently assessing the contribution of tidal stream, wave power and tidal range generation, following the call for evidence last September.

[Stephen Crabb]

As my right hon. Friend knows, and as I hope she will see if she visits Pembrokeshire, my constituency is emerging as an important hub for marine energy, but technologies such as tidal stream need the same revenue support that we gave to solar and wind to unlock private investment and reduce costs over time. To that end, will she assure us that the parameters of the CfD auction round later this year will be set to ensure that new tidal stream and other marine renewable projects can be developed?

[Anne-Marie Trevelyan]

I agree that there is significant potential for these new marine technologies. Recent market engagement carried out by the Crown Estate showed a high level of market appetite to develop more projects in the area, which is very encouraging. We will set out the details of the new technology as part of CfD round 4 in the autumn, so I hope that my right hon. Friend can wait that long. In the meantime, I look forward to being able to visit Pembrokeshire to meet him with businesses and those in the community who are keen to progress these projects.

[Mr Philip Hollobone (Kettering) (Con)]

If he will take steps to increase (a) renewable energy production and (b) energy efficiency in the UK.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

In December, the Government aim to deliver our biggest auction yet for new renewables, through the contracts for difference scheme. We aim to launch the green heat network fund in April next year. The Government are also committed to investing £9 billion in improving the energy efficiency of our buildings while creating thousands of green skilled jobs.

[Mr Hollobone]

With some 30 major wind turbines and several solar farms, the Kettering constituency is doing its bit for renewable energy. Last year, how much renewable electricity was produced in Kettering? How many homes would it power?

[Anne-Marie Trevelyan]

As at the end of December 2019, the east midlands region produced more than 5,500 GW of electricity from renewable resources, including nearly 1,600 GW from offshore wind. To break that down, 1,534 of the 88,000 renewable electricity installations were in the Kettering constituency, including photovoltaic, onshore wind, anaerobic digestion, landfill gas and plant biomass. This is generating 173 GW, or enough power to power 45,000 homes.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

What steps he is taking to tackle minimum wage non-compliance in the labour market.

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[Beth Winter (Cynon Valley) (Lab) [V]]

The UK Government talk about levelling up former coalfield communities such as those in my constituency, yet at the same time they have profited by billions of pounds from the mineworkers’ pension scheme since its privatisation in 1994. That money could be going to miners and their families, many of whom are experiencing hardship and are struggling to make ends meet. The Government’s announcement yesterday not to implement the recommendations of the cross-party Select Committee on Business, Energy and Industrial Strategy to redress this injustice was met with dismay and was described as a “slap in the face”. Will the Minister agree to review that decision and implement the BEIS Committee recommendations in full?

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

The hon. Lady will know that I have sent my reply in to the BEIS Committee, but I also had a very constructive meeting with a number of the trustees just a few weeks ago and we have agreed to continue. I have left them with some questions that they must go to talk to the rest of the trustees about, and my door continues to be open for them to bring back propositions if they want to continue to discuss this.

[Stephen Hammond (Wimbledon) (Con)]

If his Department will publish its net zero strategy before the 2021 summer recess.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

We will publish our comprehensive net zero strategy ahead of COP26. It will set out the Government’s vision and how we will meet our ambitious goals as we transition to net zero emissions by 2050.

[Stephen Hammond [V]]

I thank my right hon. Friend for her response. She will know that many infrastructure institutions, including the Institution of Civil Engineers, have called on the Government to deliver a system-wide plan for transitioning the UK infrastructure. Will she confirm that when she publishes the strategy in the autumn—I take that from her response—it will provide the policy certainty for infrastructure and the supply chain so that there is investment and we can ensure that the necessary initiatives are put in place to enable the Government’s aim of net zero to be achieved?

[Anne-Marie Trevelyan]

The net zero strategy will include a focus on how better to embed net zero as a key consideration across all Government activity. Furthermore, infrastructure will play a crucial role in the transition to net zero, and our policies and approach will reflect that. The net zero strategy will continue to build on policies that we have already announced, such as the £1 billion carbon capture and storage infrastructure fund and the £240 million net zero hydrogen fund. We are also supporting underlying investment decisions to mobilise private finance. The national infrastructure bank announced in the Budget will have £12 billion of capital and be able to deploy £10 billion of Government guarantees.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The 2021 progress report published by the Climate Change Committee last month stated:

“A pattern has emerged of Government strategies that are later than planned and, when they do emerge, short of the required policy ambition.”

Despite the committee’s characteristic politeness, that is a damning critique from the Government’s own climate advisers. I take it from the Minister’s previous answer that the House has this morning been given a cast-iron guarantee that a net zero strategy will be published well in advance of COP26; will she confirm that that is the case? Does she recognise that the credibility of such a strategy is predicated on a substantive Treasury net zero review that sets out precisely how the benefits and burdens of the transition will be shared fairly?

[Anne-Marie Trevelyan]

Of the 92 recommendations made by the Climate Change Committee in its 2020 progress report, 40 have been achieved or partly achieved and another 32 are under way, meaning that progress has been made against more than 75% of the recommendations. Our forthcoming strategies—including on hydrogen and transport and our comprehensive net zero strategy—will set out more of the policies that the committee calls for in its recommendations. I clearly cannot speak for the Treasury, which will publish its own review, but I know that that is also very well advanced.

[Craig Whittaker (Calder Valley) (Con)]

What plans he has to help ensure that skills in the nuclear sector are maintained between the building of new power plants.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

The Government confirmed our commitment in the energy White Paper to more nuclear power after Hinkley Point C, and we are currently negotiating for Sizewell C. That is a great example of the bright future ahead for our skilled nuclear workforce.

[Craig Whittaker [V]]

Gathering the skills and expertise for building new nuclear power stations in the UK has been a mammoth task and a considerable expense to many companies because no nuclear has been built in the UK for many decades. Can my right hon. Friend give some assurance to the tens of thousands of employees who are worried about their jobs as contracts on Hinkley Point come to an end and there is potentially a lengthy gap before the funding model for Sizewell C is agreed?

[Anne-Marie Trevelyan]

My hon. Friend is right that there was a long gap in respect of investment in UK, but I am pleased that the Prime Minister’s leadership has reset that. We are working closely with industry and the skills bodies to make sure that as we grow our nuclear industry again, we better understand the skills requirements and challenges faced by the industry. EDF’s latest estimate suggests that the number of people working on the Hinkley project will peak at around 8,500. That is a fantastic local employment story and, given EDF’s plans to replicate HPC at its next project, Sizewell C in Suffolk, we expect to see employment benefits transfer to that project, creating thousands of jobs in that local area.

[Stephen Morgan (Portsmouth South) (Lab)]

When he plans to make a decision on the proposed AQUIND energy interconnector project.

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[Caroline Lucas (Brighton, Pavilion) (Green)]

What assessment he has made of the implications for his policies on oil and gas of the International Energy Agency’s energy scenario aligned with the 1.5° C goal of the Paris agreement, outlined in the report “Net Zero by 2050: A Roadmap for the Global Energy Sector”.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

The independent Climate Change Committee agrees that the UK will need oil and gas as we deliver net zero by 2050. No other significant oil and gas producing nation matches the UK’s action on hydrocarbons in the economy, while our withdrawal of support for international fossil fuels, our North sea transition deal and our new checkpoint for licensing provide a global exemplar. Our climate compatibility checkpoint will also operate from 2022. Any reduction in domestic production would be replaced by increased imports.

[Caroline Lucas [V]]

The International Energy Agency’s report is clear that there can be no new investment in fossil fuel projects if the world is to meet its climate targets, yet the Government are set to approve the Cambo oilfield, which, thanks to a loophole, will not even be subject to its derisory climate checkpoint because the original licence was granted over a decade ago. Is it really the Minister’s understanding that this new North sea oil project will not add to global heating because of the date on the original licence? Will the Government think again about approving this oil project when they are meant to be showing local leadership ahead of COP26, or, as with the Cumbria coalmine, are they waiting for the US climate envoy to intervene instead?

[Anne-Marie Trevelyan]

The checkpoint will apply to all future licence rounds. Those projects already licensed are already accounted for in our projections for future oil and gas production. Projects such as Cambo are already licensed and are going through normal regulatory processes. Estimated emissions from all the existing licences are already accounted for in our forward projections.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

What plans his Department has to help support the growth of solar energy in the UK.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

Solar is key to the Government’s strategy for low-cost decarbonisation of the energy sector, and we will need sustained growth in capacity over the next decade as we move to net zero. It already accounts for 28% of installed renewable capacity in the UK. Large-scale solar photovoltaic projects are eligible to compete in the next contracts for difference allocation round in December this year. The Government also support rooftop solar through the smart export guarantee and energy efficiency schemes.

[Helen Hayes]

Community energy is vitally important in delivering renewable energy and engaging communities in contributing to net zero, but the sector has suffered since the Government cancelled the urban community energy fund in 2016 and excluded it from the social investment tax relief in 2017. This evening I am meeting Sustainable Energy 24 in my constituency, which is working hard to deliver new solar installations and engage our local communities, despite the Government’s lack of support. Will the Minister commit to meaningful support for community energy?

[Anne-Marie Trevelyan]

We are absolutely supportive of community energy. The £10 million rural community energy fund provides grant funding to help communities with the up-front costs of project development. We have also funded dedicated officers at five local energy hubs to provide one-to-one support. We intend to set out our future plans for community energy in the forthcoming net zero strategy.

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[Steve Brine (Winchester) (Con)]

What steps his Department is taking to achieve net zero emissions by 2050.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

I will pass on your displeasure, Mr Speaker. I had some very interesting answers to share with my hon. Friends, so I am as disappointed as you. Our 10-point plan lays the foundation for the transition to net zero, with key commitments and action including in offshore wind, zero-emission vehicles and building our green economy. Ahead of COP26, we will also publish a comprehensive net zero strategy. It will set out the Government’s vision for transitioning to a net zero economy, making the most of new growth and employment opportunities across the UK.

[Catherine West]

May I press the Minister on the Aquind scheme, in which I believe she may have an interest that she needs to declare? It was raised by my hon. Friend the Member for Southampton, Test (Dr Whitehead). How many green jobs will be provided by the proposed scheme and what national security assessment has been carried out, given that the project is sponsored by an oligarch who has donated £1 million to the Conservative party?

[Anne-Marie Trevelyan]

I am unable to answer any of the hon. Lady’s questions, because I have recused myself from all matters to do with the Aquind interconnector, because Northumberland Conservatives received some funds from one of the owners of the company.

[Steve Brine]

The retrofitting of existing housing stock has to be a key component of our net zero drive. We have had the green deal and we have had the green homes grant. I think the most diplomatic way of putting it is that neither has realised their potential. Can I ask the Minister what comes next and when we might have sight of that?

[Anne-Marie Trevelyan]

The Government are continuing to fund a number of schemes as part of our commitment to retrofit homes in order to cut energy bills for the poorest households and make them greener on that path to net zero. The green homes grant local authority delivery scheme, which is supporting projects to install energy efficiency measures for low-income households, has already provided £500 million to local authorities and low-income households across England. That is being delivered up to the end of this year. In June this year, we launched the sustainable warmth competition, enabling local authorities to apply for further funding under the £200 million local authority delivery phase 3 scheme.

[John Penrose (Weston-super-Mare) (Con)]

What discussions he has had with the Competition and Markets Authority on the independence of open banking.

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[Paul Holmes (Eastleigh) (Con)]

If he will make a statement on his departmental responsibilities.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

After a very long and difficult year, things are looking up. Our economy is in better health than many had predicted, and the vaccine roll- out continues apace. While some are keen to talk down Britain, across the economy optimism is returning. Last week, Nissan and Envision announced a £1 billion investment to create the UK’s largest gigafactory, creating 1,600 new jobs in Sunderland and 4,500 more in the supply chain. Today, Stellantis has announced over £100 million of investment at its Vauxhall plant in Ellesmere Port, which is to become the first mass-volume, fully battery-electric vehicle plant in Europe. This will safeguard the future of the site and its supply chain for the next decade. These are both huge votes of confidence in the UK post Brexit, and show our green industrial revolution in action. With COP26 fast approaching, the Secretary of State and I will continue to drive forward the Prime Minister’s 10-point plan—growing our economy, levelling up the country and, of course, tackling emissions.

[Paul Holmes [V]]

I welcome the Secretary of State’s announcement last week that he is bringing forward the date to remove unabated coal from the UK’s energy mix by a whole year to 2024. Does my right hon. Friend agree that this shows how the UK is leading the world in consigning coal power to the history books, and showing that we are serious about decarbonising our power system so that we can meet our ambitious, world-leading climate targets?

[Anne-Marie Trevelyan]

I fully agree with my hon. Friend. Closing Britain’s remaining coal units by 2024 will mean that we have reduced coal’s share of our electricity supply from a third to zero in only 10 years. This is a huge achievement that reinforces our record on climate action.

[Edward Miliband (Doncaster North) (Lab)]

As my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) said earlier, the Climate Change Committee’s report card on the Government two weeks ago was devastating:

“This defining year for the UK’s climate credentials has been marred by uncertainty and delay”.

The Climate Change Committee says that

“the policy is just not there”,

and:

“We continue to blunder into high-carbon choices.”

The chair, Lord Deben, when asked to give the Government marks out of 10 for policy, said “somewhere below four”. On any measure, these are failing grades. Who does the Minister hold responsible?

[Anne-Marie Trevelyan]

As we are world-leading—and, like a number of world leaders, I think Mark Carney stated at a Select Committee yesterday that we are doing as well as anybody else across the planet—I must respectfully disagree with the right hon. Gentleman, because I think we really are making huge progress. The policy that is rolling out is rolling out at incredible pace. Businesses—and I am hugely impressed—are leaning in so hard to help as their contribution to the decarbonisation challenges we face. As we move towards the net zero strategy, he will be able to see the holistic approach we are taking, which will ensure that all of us who are going to help to solve that will meet the challenge.

[Edward Miliband]

I think that is what we call the “dog ate my homework” excuse, and this is where the problem lies. When it comes to investment in a green recovery, the UK Government’s plans per head of population are less than a third of Germany, a quarter of France and just 6% of the US. That is why the Climate Change Committee says that we are just one fifth of the way to meeting our targets in terms of policy. Is it not the truth that, because the Government are not matching their grand rhetoric with public investment at scale, they are failing to tackle the biggest long-term threat our country faces?

[Anne-Marie Trevelyan]

We are one fifth of the way. If this is a journey to net zero in 2050, we have put into law—in fact, I did so just two weeks ago—carbon budget 6, which has brought forward the challenge we face to decarbonise our power industry by 15 years. We are literally world-leading in doing this, and other countries are talking to me day by day in an effort to help them follow the path we are taking and to make sure that we all do our part to meet net zero. This is not only about the UK; this is of course a global challenge, and the work my right hon. Friend the COP President-Designate is doing to help drive that across the world is critically important to its success.

[Nickie Aiken (Cities of London and Westminster) (Con)]

Independent businesses are the beating heart of our high streets, and my constituency is fortunate because it is brimming with independent shops that are ready to sell everything from artisan food to emerging fashion brands. Last weekend we marked Independents’ Day, and I visited Marylebone, where I was delighted to visit Paul Rothe & Son Deli, Penton’s hardware shop, and Sandfords flower stall. Does my hon. Friend agree that we must do everything in our power to support independent businesses this summer, and encourage people back to city centres, including central London and every other city centre in the United Kingdom, to take advantage of those brilliant unique shops?

[Alex Cunningham (Stockton North) (Lab)]

  CF Fertilisers in Billingham in my constituency is one of the two remaining primary ammonia plants in the UK. The Department for Transport anticipates that 80% of UK domestic shipping will rely on ammonia for fuel by 2050, and CF Fertilisers will have a critical role to play. It has been hugely proactive in reducing emissions, but it is reliant on carbon capture and storage to decarbonise further. What plans does the Minister have to select and progress ammonia decarbonisation within phase 1 of the CCS programme, plus the sequencing process?

[Anne-Marie Trevelyan]

As the hon. Gentleman will know, the process is in full swing and we will make an announcement before too long about those first clusters, and who will be able to lead in the carbon capture, utilisation and storage programme. The sixth carbon budget means that we have brought in the challenge of getting to grips with aviation and shipping fuels, and the Department for Transport is focusing on how that will be part of the net zero strategy.

[Bob Blackman (Harrow East) (Con) [V]]

  Following the regrettable decision by the Chancellor to exclude new nuclear power from our clean energy programme, will the Minister update the House on what action she will take to ensure that we commission and develop urgently needed new nuclear power stations, so that we keep the lights on and provide base-level energy across the grid?

[Anne-Marie Trevelyan]

The Government are committed to new nuclear power, as we set out in the Energy White Paper last year. We have entered into negotiations with the developers of Sizewell C to consider the financing, and to set to building that as the next one after Hinkley Point C. We have committed £385 million for developing advanced nuclear jobs, including small modular reactors, for deployment in the 2030s.

[Mary Glindon (North Tyneside) (Lab)]

  In November 2019, the Prime Minister promised that he would end the Government raid on miners’ pensions. Yesterday, the Government flagrantly rejected the unanimous cross-party report by the Business, Energy and Industrial Strategy Committee, which said it was right to tackle that injustice. Why have the Government betrayed the Prime Minister’s promised to coalfield communities?

[Anne-Marie Trevelyan]

As I mentioned in an earlier answer, I met a number of trustees a few weeks ago and we discussed a number of issues in detail. I left them with a number of issues to go away and consider. The proposition as it currently stands is one that the Government do not wish to take forward, but I have asked the trustees to come back to me once they have considered the questions we discussed.

[Mark Eastwood (Dewsbury) (Con)]

I am delighted that Dewsbury has been awarded £24.8 million after its towns fund bid. Will the Minister outline the benefits that that investment will have for retailers and other businesses in my home town?

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[Grahame Morris (Easington) (Lab)]

  The Government’s refusal to act on the recommendations of the Business, Energy and Industrial Strategy Committee’s report is nothing short of a complete and total betrayal of retired mineworkers and their widows. Notwithstanding the Minister’s reply about ongoing discussions on the sharing arrangements, why are the Government blocking the transfer of £1.2 billion of the miners’ own money from the reserve fund to immediately uplift the pensions of miners and their widows struggling to make ends meet?

[Anne-Marie Trevelyan]

That fund—one might describe it as a backstop—is there for support if there is a need to increase pensions. I am pleased to continue discussions with the trustees to look at potential solutions for the years ahead as the number of miners reduces and the investment pot needs to be looked at differently.

[Damien Moore (Southport) (Con)]

Does my hon. Friend the Minister agree that the billion pound investment package recently unveiled by Nissan UK is a further post-Brexit mark of confidence in UK science, technology and manufacturing? Will he do more to ensure that such investment is forthcoming in the next few years?

[Wera Hobhouse (Bath) (LD) [V]]

Community energy has manifold advantages, but its full potential cannot be unleashed, mainly because of regulatory barriers. Will the Minister meet me and Power for People to discuss how we can work with Government to find a way forward?

[Anne-Marie Trevelyan]

As I said earlier, we already have a number of funds working in community energy. I am happy to meet the hon. Lady at any point to discuss her perspective.

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

Yet again, we have heard about the need for a nuclear baseload. The reality is that Dungeness nuclear power station shut down seven years early and 75% of the existing nuclear fleet will be offline before Hinkley Point C can be up and running. Will the Minister tell me whether the nuclear baseload is a myth or when the lights will be getting turned out?

[Anne-Marie Trevelyan]

We continue to invest in new nuclear, as I set out earlier, and we are working to grow our renewable energies at an extraordinary pace. We are world leading, with our offshore wind capacity already at 29% of the total, and we will continue to grow that from 10 GW to 40 GW by 2030.

[Catherine West (Hornsey and Wood Green) (Lab)]

On a point of order, Mr Speaker.