Energy Bill [HL]

Baroness Randerson Excerpts

Committee stage
Monday 12th December 2022 Grand Committee

Moved by

[Baroness Randerson]

124A: After Clause 107, insert the following new Clause—
“Low-carbon transport schemes(1) The Secretary of State must by regulations make provision for the establishment and operation of one or more low-carbon transport schemes.(2) A low-carbon transport scheme for the purposes of subsection (1) must include, but is not limited to, the use of hydrogen as fuel to power vehicles.(3) Regulations may include—(a) the setting of low-carbon transport targets,(b) encouraging and incentivising the provision of networks of refuelling stations supplying hydrogen for vehicles, and(c) encouraging and incentivising businesses which run fleets of vehicles to convert to hydrogen fuel.(4) Regulations must specify that, where low-carbon transport schemes include the use of hydrogen, the hydrogen must meet the UK Low Carbon Hydrogen Standard. (5) Vehicles covered by low-carbon transport schemes may include e-bicycles and e-motorbicycles.(6) Hydrogen to power vehicles may be used in a fuel cell or burned in a combustion engine.”Member's explanatory statement
This amendment would require the Secretary of State to encourage and incentivise the use of low-carbon transport schemes, similar to the low-carbon heat schemes in the Bill, particularly the use of hydrogen to power vehicles.

[Baroness Randerson (LD)]

I decided to table this amendment, because I felt that it was important to draw attention to what I and many in the transport sector see as the lack of leadership from the Government on this issue. It is important to bear in mind that the Government have seemingly very good targets on decarbonising the transport sector, but there is no detail on how we are going to get there. The path ahead is very vague.

Transport is the largest carbon-emitting sector in the UK. It is responsible for a quarter of CO₂ emissions globally. In the UK, the sector has reduced its emissions by only 3% since 1990. That stands in contrast with other sectors. There is a desperate need for leadership, because we are falling behind. The evidence is that we have to be halfway there by 2030 to reach the goals for 2050, but we do not have the plans, the policy or the path set out for us, and it is now a matter of great urgency.

One reason why emissions have not reduced is that although the technology has improved, the number of vehicles on the road has increased, as has the size of cars. Although they are more efficient kilo for kilo, if I can put it that way, they weigh more now and have a greater impact and emit greater amounts of carbon. I want to say briefly that we are talking about this in relation to carbon emissions, but it is, of course, a matter of health. It has a huge impact on our breathing and things like heart attacks, and so on. It is a matter of considerable importance in health.

A great deal is made about the move to electric vehicles, but only 2% of the vehicles on the roads so far are EVs. We are a very long way behind the leaders—countries such as Norway, where up to half of vehicles sold are EVs. My amendment refers specifically to hydrogen, and hydrogen is controversial. Of course, it must be green hydrogen. Even then, green hydrogen has disadvantages, but the advantage of hydrogen is that it provides an early answer to the difficult-to-decarbonise sectors of the transport world—that is, heavy goods vehicles, heavy vehicles generally and, of course, shipping, which is particularly difficult to decarbonise. That is one reason why there is the reference to hydrogen.

The other reason why there is a reference to hydrogen is that, unlike with electricity for vehicles, hydrogen cannot really be installed on a commercial basis unless the Government put in place a set of carrots and sticks to encourage it commercially to be installed. It costs over £1 million to install a hydrogen-fuelling point. It is not the answer for ordinary domestic cars. It could be the answer for fleets of vehicles such as vans, but it is not going to be, unless the Government provide leadership.

I have been raising this issue for the past six years at least, and the Government have said that the market will solve the problem of electric vehicle charging points. To a certain extent, the market has stepped in. Of course, there are huge gaps, but the market has stepped in. The reason it has been able to is that all around us there is electricity—but we do not have hydrogen all around us. I deliberately mention hydrogen in the amendment because the Government need to consider how they are going to lead on this issue.

I finish by saying that the point of the amendment is to open up the matter for discussion and to give the Government the opportunity to consider—and, I hope, to think again about—the urgent need for leadership in setting out a set of steps, a policy or plan. These exist in other countries without Governments taking a huge commercial risk, but simply by providing the incentives to encourage people to choose more environmentally friendly ways of fuelling their vehicles and ensuring that, having chosen a more environmentally friendly vehicle, they can run it efficiently and effectively.

Noble Lords will be well aware that every time we talk about electric vehicles, there is immediately a discussion of the latest crisis that someone has faced in being unable to charge their EV—despite the fact that they are probably running short of electricity outside a house or fuel station that is blazing in electricity. Let us just think about how much more complex the matter is if we are talking about hydrogen.

This is about discussing the difficult issues and encouraging the Government to look ahead and plan—urgently—for what must be achieved. The average life of vehicles on the roads now is 16 years, I believe, and that will probably get longer because we are facing a period of difficulty, austerity and rising prices. This is therefore important, because those decisions made this year about what vehicle to buy—whether you are an individual or as a company—will be with us for decades to come. The Government must lead in the way only Governments can. I beg to move.

[Baroness Worthington (CB)]

My Lords, I shall speak to Amendment 124A, as presented by the noble Baroness, Lady Randerson. I must say that it is seldom that we disagree, because we both share the objectives of a rapid response to the growing climate risk, rapid decarbonisation and increasing the efficiency of our energy systems. I welcome this chance to have a debate about the intersectionality between transport and energy. In fact, and not to pre-empt it, I have an Oral Question later this week about how departments connect on these issues. It is hugely important that the DfT, in particular, teams up with BEIS on planning for our future decarbonised energy systems.

That said, I do not think it will come as any surprise that I am absolutely opposed to the idea of bringing in this set of amendments as currently drafted. My belief is that hydrogen will have a very limited role, for three reasons. First, it is itself a climate change gas and it is very slippery; it is the smallest molecule on the periodic table and it escapes everywhere. I do not wish to have hydrogen all around me—quite the opposite. I want hydrogen in very controlled places, being looked after by industrial chemists; I do not want it in my home or in my vehicle. We just have to look at the explosion of the hydrogen fuelling station in Norway. It is often forgotten but this is a hugely explosive gas. Norway managed to blow one of its fuelling stations and, if Norway can blow things up, anyone can.

--- Later in debate ---

[Baroness Jones of Moulsecoomb (GP)]

Could I just point out that it is easier not to send loads of CO₂ out into the atmosphere in the first place? It is great to hear about all the millions that the Government are spending on these measures, but it would be cheaper not to pollute in the first place. Things such as carbon capture and storage are all incredibly theoretical ideas, so you cannot actually say that it is going to happen, because it may not.

[Baroness Randerson (LD)]

My Lords, I thank all those who have taken part in this short debate. I knew that I would provoke a debate by specifically mentioning hydrogen—and that was my intention. I wanted to tease out the Government’s views. I thank the Minister for her response, but it was light on detail as, I fear, the whole of the Government’s policy is.

I agree with the noble Baroness, Lady Jones, on her view of the Government. I fear that the Government have been so self-obsessed for the past two or three years that there is a policy vacuum in all sorts of places, and transport is one of them. I also agree with her that we need to rely very much more on public transport but, of course, the vast majority of public transport is provided by buses, which are heavy vehicles. Electricity is fine in towns and cities but it is not yet the answer for long distances in rural areas or for long-distance buses. Of course, not enough of our electricity is green and comes from renewable resources. Despite the ingenious plans for the national grid, we have a crisis of capacity, which will face us very soon if we all rely on electric vehicles.

The noble Lord, Lord Whitty, referred to aviation. I remind noble Lords about the Government’s jet zero strategy, which is a triumph of optimism over reality.

My noble friend Lady Sheehan made a very important point about batteries. It is important to emphasise that we are well behind in the international race for developing gigafactory capacity. Very soon, rules of origin will be a problem for those wishing to export.

[Lord Callanan (Con)]

I do not know what the noble Baroness is doing; she is supposed to be deciding whether she will withdraw her amendment, not responding to a debate. This is not a debate on general activity relating to hydrogen. She should say whether she wants to withdraw her amendment—that is the question.

[Baroness Randerson (LD)]

My Lords, in Grand Committee it is normal to allow people the courtesy to respond to well-made points from noble Lords. I want to make it absolutely clear that the intention of my amendment was to provoke debate. I am disappointed that the Government’s response has been so limited. The amounts of money announced by the Minister are attractive and worth while, but they need to be multiplied by at least 10 to have any impact at all.

I will withdraw the amendment, of course, but I remind noble Lords of the words of the United Nations Secretary-General:

“We are in the fight of our lives, and we are losing”—


we need a sense of urgency. I withdraw my amendment.

Amendment 124A withdrawn.