Renewable Energy: Costs

Baroness Hayman Excerpts

Thursday 14th November 2024 Lords Chamber

[Baroness Hayman (CB)]

My Lords, it is a pleasure to follow the noble Lord, Lord Whitty, and to agree with him particularly on the last point that he made. There are difficult decisions to be made; we need transparency and we need critical analysis of individual projects and policy decisions that will influence how we go forward. But we had the advantage in this country, and it is one reason why we became such a leader, of basing those decisions on a fundamental agreement across parties of the huge significance of the issues relating to climate change and the opportunities that there were both to save the world—that sounds very dramatic, but it is not necessarily incorrect—and to hold back and stem the potentially disastrous consequences of global warming by taking action now.

I am getting ahead of my speech and I have not declared my interest, which I do now. I also congratulate the noble Lord, Lord Frost, on again directing the House’s attention to these issues. However, I fear that today he has asked us to take a very narrow focus on the cost of renewable energy and the effect on energy costs in the UK. I do not dispute that these are important issues, but I will not spend my precious four minutes going into the arcane debate about the latest LCOE figures from DESNZ or the implications of the latest strike price from AR6 CfD.

I simply say to the noble Lord that he puts a very gloomy interpretation on these figures, and he says that they are disputed. I do not dispute that he disputes them. However, there is a weight of opinion—academic, scientific and international—that suggests that his interpretation is wrong. If we look at the latest reports of the NESO, which he referred to, the CCC, the IEA and the International Renewable Energy Agency, and the excellent briefings we got from the Grantham Institute, the ECIU and the UK Sustainable Investment and Finance Association, they do not take the same view of the costs as he does.

My fear is not only that the noble Lord, Lord Frost, has got his sums wrong—and possibly, some would say, not for the first time—but that we focus only on the narrow issue of the debate today. We run the risk, as Oscar Wilde told us, of seeing

“the price of everything and the value of nothing”.

There is value in the transition to renewables, beyond the savings to consumers, which I believe are there. There is value in terms of energy security, sustainable jobs for the future, this country’s economic performance and our ability to lead in this area in the future. I hope that other noble Lords will go into more detail about that value later in this debate.

Climate Agenda

Baroness Hayman Excerpts

Thursday 24th October 2024 Lords Chamber

[Baroness Hayman (CB)]

My Lords, it is a pleasure to follow the noble Lord, Lord Randall, and to echo what he said. I think it is the first time that young people have been mentioned in the Chamber. We all need to recognise where the public are on these issues, particularly people younger than ourselves—where not my children but my grandchildren are about their future—because much of what we are debating today involves the potential damage and potential prosperity not of our generation but of generations to come. I declare my interest as chair of Peers for the Planet.

I am going to be disciplined and not follow many of the assertions that have been made in this debate with which I disagree; I will try to argue my own case, but I think it is a bit rich to be told that we, who are on the side of the argument that recognises the existential challenge of climate change, as the noble Lord, Lord Young of Cookham, said, and the category in which that danger and threat exist, are the ones who are subject to the fallacy that it will be all right on the night. We are the ones who actually recognise that something has to be done.

If you accept the facts of the severity of climate change, they logically take you on to look at what needs to be done and, of course, what it costs. The noble Lord, Lord Lilley, is absolutely right—we are talking about big numbers. But the numbers are not nearly as big as they would be if we did not do anything. That point was made 15 years ago by the noble Lord, Lord Stern, in his review, it was endorsed by the OBR and there is a publication today from the University of Cambridge talking about exactly those issues. There is a cost to inaction exactly as there is a cost to action.

Much of the debate has focused, from those on the other side—we are a divided House, in some ways, on this—on the idea that those of us who argue for action overestimate issues; we overestimate the dangers of climate change. If you overestimate the dangers of climate change, you do not have to do so much. I would simply refer them to every single scientific climate academy and meteorological organisation in the world to see the seriousness of what we face. I refer in particular to the proximity outlined recently by Professor Tim Lenton of the earth systems tipping points, such as the melting of the west Antarctic ice sheet or the melting of the carbon-rich permafrost. These could cause irreversible change and accelerate some of the most damaging impacts far beyond those we have already seen.

We should recognise that, alongside those apocalyptic tipping points, there are also positive social and economic ones, and we should not underestimate them. To quote Professor Lenton again,

“tipping points in favour of renewable energy and EVs”—

in some countries but not here, because we have not done it properly—

“are already underway that can help eliminate 37% of global emissions”.

His wider work on tipping points suggest that the global economy could move rapidly towards zero emissions by triggering a cascade of tipping points for zero-carbon solutions in sectors covering 70% of global greenhouse gas emissions.

The cost of delay is serious. It is a cost because, rightly, we have to look at this country’s economic interests. It also means the cost of falling behind our rivals and those countries that have recognised what the future is: the States and those countries that have set strategic industrial targets and are seeing the benefits of that investment. For example, last year, clean energy represented 40% of China’s growth. We talk about China as the bad guy on emissions, but it is at the forefront of clean production and we should not go behind that.

The last thing we should not underestimate is the power of Government to unleash new economic opportunities by providing incentives and consistent policy frameworks that allow businesses to innovate and succeed, as my noble friend Lord Browne of Madingley said.

Nor should we underestimate how globally influential we can be in this area. As has been pointed out, we may only contribute to 1% of annual global emissions, but a third of global emissions worldwide come from countries with less than 1% of the total. Half of global emissions come from countries with less than 3% of the total. So our contribution does matter numerically, as does our leadership—our hard-won global standing—across business, science and technology.

I conclude by saying that I have always believed that this country’s contribution to fighting climate change will be measured not only in the quantity of the emissions we reduce but mainly in the quality of the leadership that we provide. I hope this Government will continue that leadership.