Oil and Gas
Carla Denyer Excerpts(6 days, 20 hours ago)
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Carla Denyer (Bristol Central) (Green)
There is simply no case for opening new oil and gas wells in the North sea, for approving Rosebank and Jackdaw, or for removing the windfall tax from oil and gas companies. It is inaccurate, irresponsible and immoral for the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), to suggest otherwise in her motion. Expanding North sea drilling will do nothing to support UK energy security or jobs, as the Lib Dem spokesperson—the hon. Member for South Cambridgeshire (Pippa Heylings)—and the right hon. Member for Oxford East (Anneliese Dodds) laid out very clearly in their speeches.
Carla Denyer
Those Members answered the challenges from the shadow Secretary of State, so I will move on, given the limit on time.
Given that the measures proposed in the motion will not secure our energy supply, protect jobs or bring down bills, what will drilling more oil and gas from the North sea do? It will undo so much progress we have made in cutting greenhouse gas emissions. We are proud to have ended polluting coal power in the UK—indeed, I thought the shadow Secretary of State was proud of that—but allowing Rosebank would be the equivalent of running 56 coal-fired power stations for a year, undoing all that good work. Drilling more oil and gas from the North sea will also make some people a lot of money, including those on the Reform and Conservative Benches who take dirty money from fossil fuel donors.
Carla Denyer
No, I will not, thank you—I will carry on. [Interruption.] Fine, I will give way.
Claire Coutinho
I thank the hon. Lady for giving way. Could she explain why the biggest advocates for climate transition in this country—RenewableUK, Greg Jackson from Octopus and the chair of Great British Energy—say that she is wrong?
Claire Coutinho
They say that the hon. Lady’s position on the North sea is wrong, and that we should keep drilling there.
Carla Denyer
My reliance is on the evidence, which shows that 93% of recoverable oil and gas in the British parts of the North sea has already been extracted. Whatever does remain will be sold on the international market to the highest bidder, as many Members have already pointed out. If the proposals in the shadow Secretary of State’s motion were implemented, they would do nothing for energy security and nothing for jobs.
Carla Denyer
No, I will not. I will continue for now.
What the shadow Secretary of State’s motion would achieve is the raising of a lot of money. When war inflates oil and gas prices, fossil fuel bosses cash in. Just five companies made nearly half a trillion dollars in the years after the Russian invasion of Ukraine. Of course, those obscene profits should be taxed through the energy profits levy, because nobody should be cashing in on conflict. Again, I draw your attention, Madam Deputy Speaker, and the attention of those who may be watching from home, to the proportion of donations from fossil fuel donors that go to certain politicians in this Chamber. The Chancellor said earlier today that she would crack down on price-gouging and profiteering, so I hope that this work will maintain the principles of the windfall tax in whatever shape it comes.
The Government have done good work in driving forward clean energy and banning new oil and gas licences, and I desperately urge them not to backtrack by approving Rosebank, although I understand that they will not be able to comment on that today. I am also deeply concerned about the fact that, despite officially banning new oil and gas licences, the Government are creating a whopping loophole by introducing the transitional energy certificates, aka tiebacks. This is allowing new drilling at a new site on a technicality, because it involves drilling a new well but, rather than installing a new rig on top of it, attaching it to an existing rig with a very long hose, so it is technically not “new”. Opening up new oil and gas wells now is indefensible when we know that every drop of oil and gas burned puts our future further at risk, so I cannot support a Government amendment that “welcomes” these tiebacks. I ask Ministers to assure me that, at the very least, scope 3 emissions will be considered when the Government are deciding whether to grant the transitional energy certificates.
Committing to renewable energy means change, and change can be unsettling, but if it is done right, the Government can ensure that it pays off for everyone. I have been campaigning for an energy jobs guarantee to support workers who are currently employed in the oil and gas sector to move into jobs in the green sectors. That could be done by ending the £2.7 billion a year in subsidies that the Chancellor hands the fossil fuel industry in tax breaks, and using that valuable public money to back workers rather than propping up an industry that is in terminal decline. Our dependence on oil and gas is making us poorer—that much is clear—and it is making oil companies richer. There is no future in fossil fuels, so I hope that the Ministers will give no ground to the reckless statements put forward today.
Climate Change
Carla Denyer Excerpts(1 week, 4 days ago)
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Carla Denyer (Bristol Central) (Green)
I thank the hon. Member for Basingstoke (Luke Murphy), my fellow member of the all-party parliamentary group on climate change, for securing this debate. The climate and nature emergencies are the most pressing issue of our time. They go to the heart of every area of Government, and we ignore or sideline them at our peril. A suppressed national security assessment report, partly released in January in response to a freedom of information request, warns:
“Every critical ecosystem is on a pathway to collapse”,
threatening UK national security and prosperity. Let us give that a moment to sink in. The first job of any Government is to keep their citizens safe, yet there is a yawning gulf between climate reality as recognised in that national security report and the actions that the Government are undertaking.
As we have heard, ambitious action now makes economic sense, too. Failing to tackle the climate and nature crises will cost far more in the long term than investing properly now. The Climate Change Committee, the Government’s own specialist advisers, recently crunched the numbers and worked out that for every pound spent on reaching net zero, the benefits outweigh the costs up to fourfold. That is a good return on investment. Crucially, the Climate Change Committee recognises that the benefits of climate action will be felt in all areas of our lives. Warm homes and better public transport will have huge benefits for our health and wellbeing, and will save the NHS money, too. The health service spends £895 million a year just as a result of cold and damp homes. While the Government are grasping the big picture in some areas, such as growing clean energy, for example, all too often that is not being done in a joined-up way. It does not feel like they are aiming for the massive social and environmental wins that acting boldly and thinking genuinely long-term could secure.
Last year, the Chancellor scrapped the energy company obligation scheme in the autumn Budget. It required energy companies to pay into programmes that cut fuel poverty. The impact of that cut falls not only on the 8.9 million households classed as fuel poor, but on jobs. The Installation Assurance Authority Federation, a leading representative body in the retrofit sector, found that a staggering 12,100 skilled professionals have been made redundant since the end of the ECO scheme was announced in the Chancellor’s Budget. A further 79,000-plus may be made redundant within the next 12 months. Such fragmented policy making, where a gap is left between an old scheme and a new scheme, puts jobs at risk and undermines ambitions on warm homes.
I acknowledge the commitment of the Secretary of State for Energy Security and Net Zero, and of the Minister, to this agenda. I also acknowledge the degree to which they appear sometimes to be thwarted by the Treasury and others that seem singularly incapable of grasping that building a strong, resilient economy will be an impossibility inside an environment going haywire. They also seem to be thwarted by those who seem unwilling to understand that delaying action and an overreliance on techno fixes, such as carbon capture and storage, are paving the way for a cliff edge of social chaos and economic freefall when we should be planning for an orderly, fair, controlled transition.
Continuing to subsidise the fossil fuel industry is downright dangerous when the extraction and burning of fossil fuels is still the main driver of global warming. Burning the fossil fuels at the proposed Rosebank oil field would release more than the combined annual emissions of all 28 low-income countries globally. That is all without any evidence that that oil would bring down costs at home, because prices are set on the global market. Rather than propping up the oil and gas giants, I have been calling on the Chancellor to end the £2.7 billion of tax breaks given every year to fossil fuel companies. Instead she should fund a jobs guarantee to support workers currently employed in oil and gas to move into new green jobs.
Climate adaptation must become much more prominent, too. The Government’s climate watchdog has warned us that preparedness for extreme weather in this country is disjointed and piecemeal, and that has consequences for all our constituents, for public services and for the economy. That brings me full circle back to my opening point: the climate emergency has ramifications for every single Department and every aspect of all our constituents’ lives. That is why there was such a large appetite for the climate emergency declaration that I pioneered as a councillor in Bristol in 2018. After adopting my climate emergency declaration, Bristol ramped up its ambitions, and the idea has since spread across the UK and internationally. It shows the public’s appetite to go further and faster to protect our planet for future generations. While recognising the good work done so far, we still need vastly more ambition across government. No stone can be left unturned if we want to operate within safe climate limits.
Carla Denyer
I am just coming to an end.
We must leave no stone unturned, whether it is housing standards, taxation, jobs, transport, energy, defence or food. That is my main message today, and I hope the Government are open to hearing it. It is important that we look at climate change across every single Department, because that is how we will build a safer, more positive, more equal and happier country together.
Harriet Cross
I do not know whether there has been a misunderstanding of the title of the debate—it is on climate change, not the costs of bills. For climate change, we are looking at emissions; if we are focusing on emissions, we are focusing on where the carbon is produced. There is less carbon intensity in our domestic oil and gas than in imported oil and gas. I know that is not the message that the hon. Lady or others want to hear, but those are the facts.
Being wedded to domestic emissions targets while ignoring emissions produced elsewhere is causing the deindustrialisation we are seeing across the UK. Businesses in ceramics, refining, petrochemicals, oil and gas and many more industries are packing up and leaving the UK, not because their products are needed less, but because they are unable to sustain themselves here under the weight of industrial energy prices and carbon taxes.
Harriet Cross
I will not. I have taken a lot of interventions, and there is not a huge amount of time—I want to wrap up.
The targets of the Climate Change Act are forcing the UK to make decisions through the lens of emissions, not what is best for industry, electricity costs, growth, prosperity or jobs. That is why it is right that the Conservatives have committed to repealing it. The carbon tax imposed on our industry through the emissions trading scheme has also made it significantly harder for energy-intensive industries to do business in the UK. It increases costs for consumers and makes our industries less competitive.
The illogical way in which we consider domestic emissions while ignoring global emissions further undermines UK industries. Carbon leakage—exporting production, and therefore emissions, abroad—has become a convenient way for the Government to reach their emissions targets at the cost of vital UK industries. We are offshoring our industries and losing jobs, skills, taxes and investment just to import products at huge cost on huge, diesel-chugging container ships from across the world from countries that still use coal power. It is a complete contradiction of what the Government say their emissions ambitions are.
The UK has already done a lot—more than many other countries—to reduce emissions, but that cannot and must not be at any cost. From our electricity prices to the North sea, traditional industries to AI, the Secretary of State’s idealistic approach to energy policy, which focuses primarily on domestic carbon emissions, is impoverishing Britain for no benefit to global emissions.
I once again thank the hon. Member for Basingstoke for securing today’s debate. To conclude, I ask the Minister the following three questions: does she recognise the incoherence in the Government’s determination to shut down North sea production just to increase reliance on more carbon-intensive imports? When will the Government make a decision on Jackdaw and Rosebank? Will the Government adopt our plan to cut the carbon tax and adopt our cheap power plan, immediately stripping 20% off household and business electricity costs?
Oral Answers to Questions
Carla Denyer Excerpts(1 month, 2 weeks ago)
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Ed Miliband
It sounds really exciting, and one of us will visit.
Carla Denyer (Bristol Central) (Green)
Michael Shanks
Of course, all projects that are consented and licensed have to follow the law, and the North Sea Transition Authority as a regulator makes that happen. I will not comment on projects that are currently going through the consenting process.
Warm Homes Plan
Carla Denyer Excerpts(2 months, 1 week ago)
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Ed Miliband
My hon. Friend makes a really important point about the fragility of consumer confidence. We have to support it. The point of the oversight group that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West will chair is to make sure that we do as much as we can to support good ECO suppliers.
Carla Denyer (Bristol Central) (Green)
I warmly welcome the new minimum energy efficiency standards for privately rented homes in the long-awaited warm homes plan, but will the Secretary of State lay out how he will ensure that landlords do not simply pass on to renters the costs of meeting those standards? Will he perhaps ask his colleague the Housing Secretary to introduce rent controls to ensure that renters can actually afford to rent these new warm homes?
Ed Miliband
I am not going to do that, but what I will say to the hon. Lady is that lots of landlords already meet the standards. Secondly, we want to provide some help for landlords to make that happen. This is an important point. Some of the schemes we have been talking about will be available to landlords. Through a combination of some landlords already meeting the standards and that help, we are confident that costs will be reduced and it will not lead to higher rents.
Offshore Wind
Carla Denyer Excerpts(2 months, 2 weeks ago)
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Ed Miliband
I assure my hon. Friend, who is a fantastic champion on these issues, that we are very much engaged with Port Talbot and the port on this issue, and with Associated British Ports, because it is important that we make those investments in the port. She should watch this space.
Carla Denyer (Bristol Central) (Green)
As a former offshore wind engineer, I am delighted that the Government have secured record offshore wind capacity, and I say, genuinely, “Well done.” However, what is even cheaper than renewable energy is the energy that we do not need to use because our homes are more energy-efficient, so the Government’s scrapping of an energy efficiency programme last year without announcing what would replace it was less welcome. Can the Secretary of State assure my constituents that when the long-delayed warm homes plan does emerge, it will ensure that everyone can have a comfortable, warm, energy-efficient, affordable home?
Ed Miliband
I am grateful for the tone of the hon. Lady’s question. I will return the compliment, and thank her for her kind words about this auction round. She is entirely right about the importance of our warm homes plan and investing in energy efficiency; the plan will be coming very soon, and that is what it will do.
Oral Answers to Questions
Carla Denyer Excerpts(2 months, 3 weeks ago)
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Chris McDonald
I thank my hon. Friend for welcoming that news. I know it was a really big day for him, and his dogged determination to champion his constituents is seen both in his constituency and here in this House. We are supporting Grangemouth, and the MiAlgae project, which was announced by the Chancellor in the Budget, is exactly along the lines that he mentions. He talks about investment in sustainable aviation fuel. Many private companies want to invest in sustainable aviation fuel in Grangemouth, in Teesside, in Humberside and across the whole of the UK, and I am sure we will see more such plants in the future.
Carla Denyer (Bristol Central) (Green)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
The affordability crisis is the No. 1 issue facing families across our country. That is why we have acted to take £150 of costs off bills for all families, with an additional £150 through the warm home discount for 6 million households this winter. Thanks to our decisions, last year was a record year for wind and solar power, and we have embarked on the biggest nuclear building programme for half a century. That is what it means to deliver on lower bills, good jobs and energy security.
Carla Denyer
Climate change made 2025 the UK’s hottest year on record and fuelled deadly extreme weather events across the globe. We know that every drop of oil and gas used makes those events more likely, so will the Secretary of State confirm how much more new oil and gas could be extracted via the tiebacks that the Government have decided to allow, despite the new oil and gas ban? When developers apply for permission for those tiebacks, will they be required to include scope 3 emissions in their environmental impact assessments?
Ed Miliband
I wish the hon. Lady a happy new year, but I find that question a bit churlish. We have produced a world-leading plan for the North sea, which combines the just transition—the just and prosperous transition—with environmental leadership, while keeping to our manifesto commitment not to issue new licences to explore new fields. It is absolutely right that we have tiebacks to ensure that existing oil and gas fields are kept open for their lifetime. Obviously, the North Sea Transition Authority will consult on the details of how that will work, but it is absolutely the right thing to do for jobs and the environment.
Oral Answers to Questions
Carla Denyer Excerpts(5 months, 2 weeks ago)
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Michael Shanks
First, I will take no lessons from the party that brought Chinese investors right into building our nuclear power station. This Government are delivering a nuclear power station with British Government funding, not Chinese funding, so I will take no lessons from the Conservatives on that. Many companies want to come and invest in the UK, and we absolutely welcome investment into this country, but every single decision and investment obviously has to pass stringent national security tests. I will not engage right now in what those tests will be, but we will say very clearly that no decision we make will ever compromise our national security.
Carla Denyer (Bristol Central) (Green)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)
Thank you, Mr Speaker. I thank the hon. Lady for her continued advocacy on this agenda. I have enjoyed working with her from the Back Benches and hope to continue to do so in this new post. I am excited to share with her and the whole House the carbon budget growth and delivery plan later this month. What I can say now is that ensuring that low and middle-income families can benefit from the energy transition is absolutely central to our mission. It is why we are rolling out the biggest home upgrade scheme in a generation and why we are moving away from expensive fossil fuels towards cheap, clean British power in homes and communities across our country.
Carla Denyer
I welcome the Minister to her new position and thank her for her answer. I know how much she will want the new carbon budget delivery plan to reflect the scale of ambition required while ensuring that the poorest are not asked to pay the price, and also to signal that it is an absolute priority across Government. Can she assure us that the new plan will not just be slipped out, but will be launched properly and, crucially, with the Prime Minister?
Prax Lindsey Oil Refinery
Carla Denyer Excerpts(8 months, 1 week ago)
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Michael Shanks
I will avoid the wider political points in a week when workers are finding out about job losses, because that is obviously devastating for them. I will just say that the Government have published their industrial strategy, and this is the first time the country has had an industrial strategy in a very long time. [Interruption.] Well, let us say a credible industrial strategy, if the right hon. Member for Beverley and Holderness (Graham Stuart) thinks he had one before. Again, I ask him to present it to me. We are investing in the industries of the future, and delivering thousands of jobs on the Humber and right across the country. We are making sure that investment comes forward in jobs for the future. [Interruption.] The problem with the right hon. Gentleman’s point is that his party opposes that investment. It opposes the very thing that will deliver the jobs of the future, and I am afraid that is simply an untenable position. Either he is for or against investment in jobs; he has to say which it is. The industrial strategy is the way to deliver that.
Carla Denyer (Bristol Central) (Green)
The last time we discussed Prax Lindsey, I asked the Minister to support my energy jobs Bill—a plan for the redeployment and retraining of oil and gas workers that is proactive and industry-wide rather than reactive and crisis by crisis, and that would be paid for by the companies. That is what the workers and the unions want, but the Minister said he did not agree with it. He has now said that the Government will fund a training guarantee for these refinery workers and is asking this company’s owners to make voluntary contributions to support workers. That is progress, but will he now turn this into a proactive and industry-wide plan, and please go beyond asking the company nicely to do the right thing and require it?
Michael Shanks
I think the hon. Lady slightly misses the point. The company went into insolvency. The workers are therefore entitled only to statutory redundancy. I do not think that that is acceptable, so I have called—not nicely, but directly—for the owners of that company to do the right thing, put their hands in their pockets and fund proper redundancy for those workers. That is separate from a wider piece of work we are doing around the transition. I think she also misses the point about the importance of delivering investment in oil and gas that is also investment in renewables and in carbon capture, utilisation and storage to deliver the jobs that come next, so that there is a transition for those workers. I have said that I do not support her proposal, and I am happy to say that again because it would do neither of those things. It is essential that we support the oil and gas industry in its current form, but recognise that it is in transition. We still have decades of oil and gas to come in this country, but we are already building up the industry that comes next. That needs investment, and it also needs us to build infrastructure, which many people in her party seem to oppose.
Oral Answers to Questions
Carla Denyer Excerpts(8 months, 2 weeks ago)
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Ed Miliband
My hon. Friend raises a great example, and I will take a risk and say yes, I will come to Stourbridge. I love Stourbridge, and I look forward to seeing that project.
Carla Denyer (Bristol Central) (Green)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
Of course the Government follow the regulations that we have put in place quickly, and applications must be considered on a case-by-case basis—that is the way anyone would expect them to be dealt with. I will not say on the Floor of the House any more about those applications, as they are live decisions that will be made in due course by the Department.
State of Climate and Nature
Carla Denyer Excerpts(8 months, 2 weeks ago)
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Andrew Bowie
I completely agree, Mr Speaker, and I apologise if I insinuated the opposite in any way.
The UK accounts for less than 1% of global emissions. That is also the truth. In fact, now that I come to think of it, it is rather shameful that the Secretary of State should be using this report from the Met Office as cover, while ratcheting up the language and increasing the shrill criticism of all who question the Department and its policies, all to distract from the fact that the plans mean that Britain will be poorer and that no one looking at how we are decarbonising could ever claim that this is a model to follow. We are proud to have been a world leader—
Andrew Bowie
Members do not give way when making or responding to a statement.
We are proud to have been a world leader, but it is not a race if no one else is running. If we are leading the way, we need to make sure that it is a path that others will follow. We must decarbonise in a way that creates energy security and prosperity, rather than forcing industry abroad and impoverishing British people. Why is that so hard for the Labour party to understand?
We see in the Met Office’s report that the demand for cooling has approximately doubled—a strong case for introducing more air conditioning into homes, which would improve comfort and reduce the burden on the health system during heatwaves. Although I welcome the Secretary of State’s commitment to expand the boiler upgrade scheme to include air-to-air heat pumps, which, as he says, offer cooling as well as heating, may I urge him to speak to the Mayor of London and get the ridiculous restrictions on air conditioning units in newbuilds in London removed? We must move away from this poverty mindset on reducing energy usage. Paying for solar panels to be switched off, while refusing to absorb the excess demand to cool homes, is truly ridiculous.
It is time to take the global scale and nature of this challenge seriously. Offshoring manufacturing, like ceramics, does not solve global warming, but it does make Britain poorer and Brits unemployed. To build this Government’s 1.5 million new homes, we will use more bricks that at any time since the second world war, but thanks to this Government, fewer than ever before will be made here in Britain. While the Secretary of State admired the fast-paced build out of new renewable generation, new nuclear and low-carbon energy on an unseen scale on his recent visit to the People’s Republic of China, perhaps he was able to reflect on the factors enabling that: the opening of two new coal-fired power stations every week, and the cost of industrial energy in China being less than a third of our domestic cost. We cannot innovate, manufacture, and create growth and prosperity while our energy costs are killing manufacturing. I am afraid that this Government’s plans will drive up the underlying cost of energy for industry, and Britain will pay the price.
Only a year ago, Labour candidates were trotting out lines on how they would cut bills by £300. Since then, network charges, which account for 22% of an energy bill, have risen by over £100 as a result of the rush to build out the grid for new renewables. Cornwall Insights, an independent energy analyst, has called for the Secretary of State to be
“transparent about what the money is being spent on”.
Its principal consultant has urged the Secretary of State to be honest with the public about the impact of net zero policy costs on bills.
Of course, a clean, secure and reliable power source exists in the form of nuclear. We welcome the announcements of the commitment to Sizewell C and the small modular reactor programme, but the lack of ambition, the refusal to commit to a third gigawatt-scale reactor—preferably on Anglesey—the decision to decommission the UK’s stockpile of plutonium, the selection of only one small modular reactor technology, and the refusal to repeat the 24 GW ambition that we set out for the nuclear industry are frustrating. We could do so much more. Will the Secretary of State commit to protecting Wylfa for a new gigawatt-scale reactor in the future?
It is indeed time for a policy of radical honesty. Global warming is a global challenge, and I am afraid the Secretary of State’s plans will have a negligible, or even negative, impact on global emissions. Sadly, he is driven by ideology, not by the practicalities of facing this challenge while growing the economy. We are telling the difficult truths; the Government are running from reality.