EU Referendum: Energy and Environment
Debate between Barry Gardiner and Amber Rudd(8 years, 4 months ago)
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Barry Gardiner
I understand that there is a need to move on, and the hon. Gentleman is right to say that we must now look to the future, but I think that if he bears with me, he will find that that is what I am trying to do. Yes, I am critical of where we are, but the criticisms that I have adumbrated so far are not my own. They are criticisms made by the Government’s own advisers, they are criticisms made by industry itself, and, indeed, they are criticisms made by the Secretary of State. I am not talking the UK economy down; I am trying to set out the present situation with clarity, and then see whether we can move on from it.
Perhaps the Secretary of State could do the same as Bloomberg in telling the unvarnished truth, and inform the House what assessment her Department has made of the increased price of imported energy as a result of the falling pound. I will happily give way to her if she wishes to do so.
The Secretary of State for Energy and Climate Change (Amber Rudd)
indicated dissent.
Barry Gardiner
Perhaps, then, the Secretary of State could tell us what assessment her Department has made of the price premiums on loans that will be demanded by investors in energy infrastructure to cover the cost of political uncertainty. Is it 1%? Is it 2%? Again, I will happily give way to the Secretary of State if she wishes to inform the House what assessment her Department has made of those matters. No? In that case, I will give way to the spokesman for the Scottish National party.
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd
Amber Rudd
I welcome the activity already under way in my hon. Friend’s constituency and will of course be considering opportunities to support research, development and demonstration across the UK as we develop our energy innovation programme. I encourage her to speak directly with low-carbon energy funding bodies, which stand ready to support innovation in the technologies that we will need in the future. I really welcome the development of the UTC, which is partnered with, among other companies, E.ON UK and EDF Energy. It has a specific focus on green engineering, so I think that there is a great opportunity there for Newhaven.
Barry Gardiner (Brent North) (Lab)
The Government’s emissions reduction plan has been promised by the end of this year, and the Secretary of State has said that it will address the current 10% shortfall for the fourth carbon budget, which was set back in June 2011. Section 14 of the Climate Change Act 2008 stipulates that the Government must lay before Parliament a report setting out how they will meet each carbon budget
“as soon as is reasonably practicable”
after setting it. Five years later, does the Secretary of State consider that she is now in breach of the Act, or does she have an unusually elastic definition of the phrase “as soon as is reasonably practicable”?
Amber Rudd
It is always a pleasure to receive such detailed questions from the hon. Gentleman. I can reassure him that I am fully aware of section 14 and the sections either side of it. I am clear that we will have an emissions reduction plan by the end of the year, as we have said, and that we have an obligation to come forward with our response to the fifth carbon budget. It is because we take these matters so seriously, and because this is a big, realistic and important challenge for the UK, that we are not rushing it.
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd
Amber Rudd
The hon. Lady will be aware that what the Chancellor did set out in the Budget was certainty on the amount and timing of contracts for difference, which was very welcome for the investment community. There will be further announcements on the levy control framework, but let us bear in mind that the LCF was the first of its kind and that it runs until 2020-21. We have said that we will set out how much will be available in future, but for now the hon. Lady will just have to be a little more patient.
Barry Gardiner (Brent North) (Lab)
Last September, the independent Committee on Climate Change warned that the Government’s stop-start investment profile was undermining investor confidence and increasing the cost of low-carbon generation. The Secretary of State ignored it. Last month, the Energy and Climate Change Committee reported its concern that increased policy uncertainty was leading to increased risk premiums for investors, which will result in consumers paying more in the long run. Can the Secretary of State look me in the eye and explain exactly how she thinks this ties in with the Prime Minister’s insistence that his Government are safeguarding the interests of future generations?
Amber Rudd
I can assure the hon. Gentleman that I am quite capable of looking him—and indeed the whole shadow Front Bench—in the eye. I can also assure him that we are absolutely focused, as are the Prime Minister and the Chancellor, on delivering for the future generation and looking after bill payers. This is about getting the right balance and supporting renewable energy until it can stand on its own two feet.
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd(8 years, 9 months ago)
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Barry Gardiner (Brent North) (Lab)
Surely one of the most important things that the Secretary of State can do to limit climate change is publicly to state how she will meet the shortfall in our legally binding renewable targets for 2020. She knows that beyond 2017, her Department projects a 25% shortfall across the heating, electricity and transport sectors. The Eurostat data released yesterday show the UK to be missing its target by the widest margin of any European country. What assessment has she made of the potential fines the UK may face as a result of that failure?
Amber Rudd
I do not share the hon. Gentleman’s catastrophic view of the progress that we have made. We already have nearly 25% of our electricity coming from renewables, and we believe that we may well exceed our target of 30% by 2020. In terms of the overall renewable target, I hope he will welcome, as I do, the fact that we have already exceeded our interim target, which was 5.4%; we are now at 6.3%. However, we are aware that we need to make more progress, and we have set out clearly what we will do during this Parliament to address the shortfall.
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd(8 years, 10 months ago)
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Amber Rudd
I think I can bring together some of the hon. Gentleman’s questions by highlighting the investment that we are making in innovation, which is an area in which we think there can be great steps forward in renewable energy. We can help to develop important new renewable energy technologies. For instance, in Paris, under “mission innovation”, various countries came together and agreed to double their investment in innovation, and I believe that carbon capture and storage and small modular reactors will benefit from that investment.
Barry Gardiner (Brent North) (Lab)
Now that DECC has accepted that the energy reset has pulled us further away from achieving the fourth carbon budget by some 54 million tonnes of CO2, meaning that we are on track to fall short of it by some 10%, or 187 million tonnes, and now that it is predicted that we will also miss our 2020 EU renewables target, will the Secretary of State explain precisely what steps she will take in the remainder of this Parliament to make good the Prime Minister’s boast that the UK is “leading the way” in work to cut emissions?
Amber Rudd
I do not accept the hon. Gentleman’s depressing interpretation of our progress towards our important targets. Our EU renewables targets are difficult to meet, but we have exceeded the interim target. We know that we need to make more progress, which is why I am working with other Departments across Government to ensure that action is taken on heat and transport.
It was recognised in 2011 that there was a problem with the fourth carbon budget, and we now need to ensure that we put in place the policies necessary to meet it. Be in no doubt that we remain committed to achieving that.
Climate Change and Flooding
Debate between Barry Gardiner and Amber Rudd(8 years, 11 months ago)
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Amber Rudd
I am going to make some progress now, because we are very short of time.
There is a link between climate change and an increase in extreme weather events. I do not share the views of my hon. Friend the Member for Monmouth (David T. C. Davies), who always speaks with enthusiasm. Let me say to him that, while we cannot attribute every storm, drought or flood directly to climate change, all the evidence from our scientific understanding of weather systems suggests that our changing climate will lead to more intense and more frequent events. Last month, the Met Office released papers from its study of the exceptional rainfall of 2013-14. It found that, given the same weather pattern—a persistent westerly flow—extreme rainfall over 10 consecutive winter days might be about seven times more likely now than it would be in a world without man-made greenhouse gas emissions.
Of course natural influences will still be an important factor, but it is clear that the impact of climate change is already being felt, especially in vulnerable countries, which is why the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) was right to comment on the need to assist developing countries with additional funds. Unless we limit the rise in the global average temperature, we shall have to live with more extremes. That is why the global agreement that was reached in Paris this week is so important. As we heard from the right hon. Member for Don Valley (Caroline Flint), the French played a very important role in ensuring that it all came together.
No single country, acting alone, can hope to limit climate change. Only by acting together can we hope to succeed. With nearly 200 countries coming to an agreement, the Paris conference was a clear turning point towards a sustainable and low-carbon future. If we limit the global average temperature rise, we will limit the intensity and frequency of extreme weather such as the flooding we have seen recently.
Barry Gardiner
On limiting that extreme weather, the Secretary of State will recall that the Chancellor mentioned 300,000 properties whose flood risk was being reduced. Is she aware of the Chartered Institution of Water and Environmental Management report, which has said that
“this largely moves properties from a low risk to an even lower one”?
In other words, the Department for Environment, Food and Rural Affairs has asked officials to achieve the maximum number instead of the most—
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd
Amber Rudd
I can reassure the hon. Gentleman that the Government are committed to getting a deal in Paris. We are aware that that deal will require considerable financing, which is why my right hon. Friend the Prime Minister announced that we will increase our commitment to climate finance up to $9 billion over this five-year spending period—a significant increase. We remain committed to making adaptation an important part of that, but we are not yet in a position to commit the rest of the world in terms of the final deal that will be reached.
Barry Gardiner (Brent North) (Lab)
The Paris conference of the parties aims to replicate the successful method of the UK Climate Change Act 2008—a long-term goal that is specified under a legally binding agreement that achieves stability through a series of five-year reviews. The Secretary of State has abandoned long-term targets and destroyed the stability of the investment framework, and last night her Department’s emissions calculator showed that after her reset speech the shortfall against the fourth carbon budget has increased by 54 million tonnes of CO2, which is 10% away from the legally binding fourth carbon budget. Does she now feel more shame showing her face in the city of Paris, or in the city of London?
Amber Rudd
I find the hon. Gentleman’s question disappointing. The UK is rightly proud of our Climate Change Act, and of the targets and aims that we are setting for ourselves. We will provide leadership in Paris. The number of texts and notes that I received yesterday after creating that strong sign on coal was remarkable. I urge the hon. Gentleman to stop knocking the United Kingdom’s negotiating position, and to start supporting us in leading and getting a global deal.
Oral Answers to Questions
Debate between Barry Gardiner and Amber Rudd(9 years, 2 months ago)
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Amber Rudd
I do not accept that we are acting unilaterally. The fact is that the UK is a leader, which is a good thing when we are trying to be ambitious in this area, and we are finding that other countries are increasingly working with us. I believe that Paris will be critical to getting an international level playing field and, to return to earlier questions, supporting investor confidence.
Barry Gardiner (Brent North) (Lab)
Given that so many of the intended nationally determined contributions submitted so far, particularly from developing countries, are conditional on international finance, what efforts has the Secretary of State been making with her counterparts in Europe to ensure that Europe’s contribution to a financial pot to meet those contributions is fulfilled?
Amber Rudd
I share the hon. Gentleman’s concern about climate finance, which is key to getting a successful deal, and I am happy to say that I have been playing a leading role in that, chairing climate finance committee meetings with our international counterparts to ensure the transparency and confidence necessary to bring developing countries into the final deal.
Onshore Wind Subsidies
Debate between Barry Gardiner and Amber Rudd
Amber Rudd
My hon. Friend is absolutely right. Offshore wind has continued to deploy very successfully and prices are coming down. We are delighted that the UK is such a leader in this area and has the real prospect of exporting to other countries as a leader in renewable offshore energy.
Barry Gardiner (Brent North) (Lab)
By ending support a year earlier than the right hon. Lady’s Department promised only eight months ago, the Government are sending yet another message to investors that the UK is not a stable regulatory regime in this area. Does she accept the calculations that show onshore wind is not only the cheapest form of new low carbon energy, but that for every pound of development cost, 98 pence is spent creating new jobs in the UK—jobs that were projected to double to 37,000 by 2023 had that support continued?
Amber Rudd
The hon. Gentleman fails to incorporate the fact that all that support costs money. We cannot ignore the fact that, obviously, people want subsidies if they are on the receiving end of subsidies, but we have to ensure that we get the good measure of it. He is wrong to say that this Government said this and that Government said that. The fact is that we said, in our manifesto, that if we had a Conservative majority we would deliver this. The industry was not surprised by the outcome here: we committed to ending new subsidies for onshore wind and that is exactly the promise we have kept.