Net Zero Test

Baroness Sheehan Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Callanan (Con)]

I do not agree with the noble Lord. Of course, local authorities are critical in terms of delivering this agenda and I have many meetings with them to discuss a number of the grand schemes for which I am responsible. We have spent something like £1.2 billion in dedicated funds given to local authorities through the local authority delivery scheme and the public sector decarbonisation scheme to help them in this job.

[Baroness Sheehan (LD)]

My Lords, the Government’s remit to the Oil and Gas Authority is MER, maximising economic recovery—also known as “drill every last drop”. The Government’s continued support for this policy leaves them open to applications such as the Cambo oilfield, which one trusts they will turn down. May I ask the Minister how the MER policy is compatible with our net-zero targets, given that existing oilfields already in production will take us over our agreed NDC?

[Lord Callanan (Con)]

The independent Committee on Climate Change recognises that there is an ongoing role for oil and gas, and we are working hard to drive down demand and emissions. The updated Oil and Gas Authority strategy includes a requirement for industry to “take appropriate steps” to support the delivery of the net-zero target—and, of course, we have put forward the ambitious decarbonisation plan for the North Sea. With regard to the Cambo field, Shell and Siccar Point have put forward a development proposal seeking consent, with an intention to commence production in 2025. This is not a new project; it was licensed in 2001 and 2004 and is going through the normal regulatory approval process.