Action on Climate Change and Decarbonisation

Debate between Bim Afolami and Chris Skidmore

Tuesday 5th July 2022 Commons Chamber

[Bim Afolami]

I hope so.

This debate comes at a time when there will be significant problems for millions of ordinary people up and down this country, and indeed all over the world, in heating their homes and getting around. It is an opportune time for us to have this debate about decarbonisation. I should start by saying that I strongly support not only the Minister on the Bench, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for North East Derbyshire (Lee Rowley), who I know is a highly capable and effective Minister, but the Secretary of State, who is also that. The Minister is smiling. I am being nice to you, Minister. Indeed, it is a very effective Department that has had a huge amount to do and, broadly speaking, it is doing a very good job.

However, the context of oil and gas prices rising is a very complicated one. If the House would indulge me, I think it requires not just the Government, or this House, but international markets and other countries to think about decarbonisation differently. Oil and gas prices may rise structurally over the coming years due to an increase in demand from emerging market countries in particular. Many in the City of London, and many investment banks and energy analysts, think that will occur. If it does happen, in the short term, there will be a significant problem for millions of people across the world, including in this country.

The way to deal with that is to increase the pace of decarbonisation, and the pace of getting renewable energy used and in the ground. Indeed, that helps our energy security as well. However, at the same time, we must not demonise the major oil and gas companies, which have the skills, wherewithal and capital to help us to achieve that. Therefore, subtle and effective Government policy is required, working internationally with our partners, to ensure that we can give these major energy companies the confidence to invest in decarbonisation. They have the engineers, the capital and the know-how all over the globe to help us achieve that aim. I speak as someone who does a lot of work on these issues, as the House knows. There is no point in our demonising anybody who holds shares in an energy company, gluing ourselves to famous paintings or doing that sort of thing. All that happens is the price of oil and gas continues to go up, which makes people’s lives harder. There may well be a backlash to the decarbonisation agenda if people perceive that it is not something that will ultimately help their lives and the economy, and help them to heat their home.

[Chris Skidmore]

Obviously we will discuss the Ways and Means motion on the Energy (Oil and Gas) Profits Levy Bill, or so-called windfall tax, later, but does my hon. Friend agree that companies such as BP and Shell that have agreed to become net zero companies should put their money where their mouth is and maybe establish a net zero fund? Such a fund could be tapped into over a long period to help to pay for some of the energy efficiency measures, demonstrating that it is not just green levies that will pay for additional net zero support mechanisms, and that we can leverage in private finance. Let us look to create a fund that could be financeable over a long period, given that we are holding these companies to account for their net zero commitments.