Energy Update

Caroline Lucas Excerpts

Monday 5th September 2022 Commons Chamber

[Greg Hands]

I thank my hon. Friend, an extremely well-regarded former Sports Minister, for her commitment to the sector. She is right to say that pubs, the hospitality sector in general, sports facilities and outdoor play facilities are vital parts of the social and economic fabric of this country. The Government are keenly aware of the importance of the impact of rising energy prices on businesses, and, as I have said, I am sure this is right at the top of the new Prime Minister’s in-tray as we go forward.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Last Wednesday, the Business Secretary tweeted his winter energy security update, a plan that fails even to mention energy efficiency, despite the BEIS Committee, the CBI and charities all calling for immediate action on insulation to keep homes warm and to cut bills. The Minister did at least mention efficiency in his statement, but there is still no sense of urgency and no plan at the scale required. We need a retrofit revolution. Why are the Government not tackling demand-side measures with far more urgency? Will he finally get on with a local authority-led, street-by-street home insulation programme?

[Greg Hands]

On energy-efficiency, the Government have extensive programmes in place, which I outlined in the statement. We have £6.6 billion going in over the course of this Parliament. It is important to recognise not only the amount of money going in, but the results we have had. In the 12 years of this Government, the percentage of homes rated A to C for energy efficiency has increased from 14% to 46%, which is a trebling of the amount of homes rated energy-efficient. Of course there is further to go, because 54% are insufficiently energy-efficient. A lot of work is still to be done, but the trebling of the number of homes well rated for energy efficiency is a real achievement of this Government.

Oral Answers to Questions

Caroline Lucas Excerpts

Tuesday 12th July 2022 Commons Chamber

[Greg Hands]

My hon. Friend is absolutely right. Wales is the part of the UK with the highest percentage of those off the gas grid, and I know that her rural part of Wales is therefore likely to be among the areas most affected by the rise in the price of heating oil. We have made sure that those off the gas grid but on the electricity grid will benefit from the £400 energy bill rebate. We have also put £1.1 billion into the home upgrade grant to provide energy efficiency and clean heating upgrades to support lower-income households living off the main gas grid. Obviously, we are continuing to monitor the situation extremely closely, particularly for the most vulnerable, most rural constituents such as my hon. Friend’s.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The UK already has the lowest tax take anywhere in the world from an offshore oil and gas regime, so it is perverse that the Government’s new investment allowance will essentially incentivise yet more oil and gas exploration at a time when we know that we absolutely need to leave fossil fuels in the ground. Given that the Secretary of State himself has said that it will take up to a decade to extract sufficient volumes from fracking, will he undertake to speak to his Treasury colleagues and make sure that fracking at the very least is excluded from this perverse investment allowance?

[Greg Hands]

I must say I find the Green party’s attitude to these issues bizarre: it seems to be resolutely against any oil and gas extraction in this country, which could only mean it would be in favour of imports, and those imports would be higher priced, more volatile, likely to be from more dangerous parts of the world, and come with higher embedded emissions. The embedded emissions of liquified natural gas are about 2.5 times higher than the emissions from the gas we get from the UK continental shelf. The hon. Lady describes herself as a Green party politician, but I find her approach distinctly ungreen compared to that of this Conservative Government.

Action on Climate Change and Decarbonisation

Caroline Lucas Excerpts

Tuesday 5th July 2022 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

The right hon. Member is talking about the recalibration that is needed in the Department. Does he agree with me that one area where that is extremely true is the need for a proper home insulation programme? We have never seen this Government get that right, in spite of the £11.7 billion allocated to the energy bills support scheme, which is of course welcome. What we need is a proper home insulation programme—street by street, local authority-led—and we still do not have it.

[Philip Dunne]

The hon. Lady makes a very important point, and she made a strong contribution to our Committee’s report on the inquiry into the energy efficiency of existing homes. I will comment on that in my remarks, but I broadly agree with her.

It is right that the Government do what they can to align their spending priorities to support all those who are being squeezed, but as the CCC reminded us last week, we are also in a future of living crisis. Large-scale changes in climactic conditions are undeniable, and they have the potential to make parts of the globe uninhabitable, provoking a crisis of barely imaginable severity. So it is entirely appropriate, in Net Zero Week, that the House consider in a little more detail the spending that the lead Department on net zero is proposing in the current financial year to tackle climate change and to address decarbonisation of the economy.

In October 2021, just before the COP26 conference in Glasgow, the Government produced their net zero strategy. This is an ambitious document, ranging widely across all areas of Government. It presents the first wide-ranging plan across Government to build on the initial 10-point plan for the green industrial revolution, which the Prime Minister presented in November 2020. It demonstrates that the Government are in the business of climate mitigation and climate adaptation for the long term. I would argue that there is broad consensus across the parties in the House that this has to be the direction of travel. It also reflects the broad scientific consensus that the planet is under threat from climate change as never before in recorded history, and that our behaviour must change in certain ways if we are to be able to avoid the worst effects. However, my concern is that the Government’s strategy seems, in too many areas, to defer substantive action and to leave real expenditure to a future date—and, dare I say it, possibly to a future electoral cycle. The warning from the Committee on Climate Change last week surely demands that more immediate action is taken to achieve the Government’s priorities and net-zero ambition.

My Committee had an interesting exchange last week with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs. He disagreed with the thrust of the CCC’s conclusions, which he thought did not make sufficient allowance for the potential contribution of technology to mitigation of the climate crisis. That is a perfectly reasonable debating point. Indeed, our Committee has looked at a number of technologies that can play their part in achieving our net-zero ambition. However, I say gently to those on the Treasury Bench, that waiting for the right technology to turn up is not a strategy.

The Committee has been looking at potential solutions to help decarbonise the economy, from tidal power to offshore wind—there is significant emphasis on that in the Government’s strategy—and heat pumps, where there is ambition, but currently a significant gap in delivery. As the Secretary of State for Business, Energy and Industrial Strategy, and the Minister for Energy, Clean Growth and Climate Change will know—we wrote to them about this—the current state of development of negative emissions technologies does not promise a “silver bullet” from carbon capture and storage plants, which by 2050 will snatch carbon from the air and allow us all to go on as before. It is simply not there yet.

The Chancellor’s spending review last autumn gave a breakdown of the Government’s expected expenditure on net-zero measures in each year to 2024-25. In total, the Government plan to spend £25.6 billion on net-zero measures over that period, with £5.5 billion to be spent in the current financial year—subject, of course, to the House’s approval of these spending plans tomorrow. There are concerns about how effective that spending will be, and the Public Accounts Committee has recently been critical about the overall funding of the net-zero transition. The House is right to be concerned about the value for money of such approaches, and I commend the National Audit Office for its detailed and expert analysis of the Government’s plans.

The excellent briefing on the Department’s estimate, produced by the House of Commons Library for this debate, indicates that £21.8 billion—20% of the Department’s budget for this year—is dedicated to reducing UK greenhouse gas emissions to net zero. I do not include in that figure the £11.6 billion for the reduction in energy bills announced as part of the Government’s measures to address the cost of living crisis. Although the Government list that as a measure contributing to the net-zero target, I do not think that short-term energy bill reductions should be treated as a net-zero measure, unless somehow they are linked to fossil fuel reduction measures more directly.

I will focus the remainder of my brief remarks on the points that my Committee made last session in its report on the energy efficiency of existing homes, to which the hon. Member for Brighton, Pavilion (Caroline Lucas) referred. It seems that this is the area where greatest progress can be made towards the net-zero target, and in the shortest time. It was also the area that many witnesses before the Committee identified as a missing component from the recent energy security strategy.

I was pleased that late last month Ministers laid before Parliament the draft legislation needed to implement the fourth energy company obligation scheme. That hugely successful scheme has driven energy efficiency improvements in a great many domestic properties. Such improvements will reduce consumer bills. They will also reduce energy consumption, and thereby emissions from power generation. In the nine years of the scheme’s operation to date, it has supported cavity wall insulation in over 1 million properties. That is impressive, but there are still some 19 million homes that need upgrading to energy performance certificate band C. The cost estimate on which our Committee received evidence averaged £18,000 per property. Our Committee, I am afraid, found that the Government estimate for decarbonising Britain’s housing stock by 2050, at some £65 billion overall, was highly likely to be a significant underestimate. Welcome though the ECO is—last month, the chair of E.ON told the Committee about industry support for the scheme—it represents only a small fraction of what is genuinely necessary to achieve domestic energy efficiency. Will the Minister be in a position to elaborate further on the Department’s plans to drive energy efficiency in existing homes? It is not immediately apparent in the spending plans that the House is examining.

It is unlikely that the average householder will be able to afford a one-off payment of about £20,000 to upgrade their property without some incentive from the centre. I do not want to hark back to the green homes grant voucher scheme, but I hope that the Government have learned the lessons from its introduction. It was a well-meaning scheme that could have kick-started energy efficiency improvement, but it was strangled by red tape and ultimately abandoned in less than a year, having reached only a fraction of the homes that it was expected to improve.

--- Later in debate ---

[Darren Jones]

There are two points to make. On consumer awareness generally, although there is very significant support for action on climate change, polling shows that most consumers do not realise that that means replacing their gas boiler and insulating their homes. Part of the net zero strategy for Government should be to try to engage with homeowners, tenants and the public about the work that needs to be done, but they have failed to introduce any effective engagement programme with the public. The concern is that when people do not want to do the work, that will cause a lot of anger among the public, and that will undermine our ability to reach net zero.

The use of public funds is also very important, because the disposable income of an average household, once we take away rent or housing costs, is around £9,000 a year. As we have heard, however, we are asking people to spend £10,000 to £20,000 on their home. How on earth can we ask a family with an annual disposable income of £9,000 to spend £20,000, when there is no support from the state or councils and when the banks are not even offering low-cost energy-efficiency financial products to help people who want to make these investments? That is why the Government need to be more involved in thinking about delivery. I suggest having incentives and behaviours that nudge people in the right direction, so that the vast majority of people feel able to do what they want to do and support the national effort to tackle climate change.

[Caroline Lucas]

I certainly agree that incentives and greater financial support will be crucial. However, does the hon. Gentleman agree that another way of tackling the issue that the hon. Member for North East Bedfordshire (Richard Fuller) raised would be to make very sure that there was a requirement to up the energy performance certificate rating before the house next changed hands or was put on the rental market? In other words, if people wanted to sell their house, they would have to make sure that it was properly insulated. In a sense, we would have both the carrot and the stick.

[Darren Jones]

We may end up having to do that, but I think that we need to lead with the incentive and support for positive behaviour before getting to the stick. I also note that the obligation is on people who own a home that they rent out to make sure that their home has an EPC rating of C or above. That comes in much earlier than for homeowners. That is a good thing, but the Government have still not set out how they will help homeowners to do the work affordably.

Delivery is important for the Business Department, because, of course, we cannot do this without business. Remarkably, however, given that we are talking about the Business Department, the constant chopping and changing between policies, financing and the requirements for businesses to be able to get access to financing—through the green homes grant or other programmes—make it extremely difficult for businesses to have any certainty about what will happen. That also makes it very difficult for businesses to invest in their kit or workforce, in training and upskilling their staff, or in the expansion of their services in larger geographies across the country so that they can do this work. We have feedback time and again from business that they are ready and willing and want to do the work, but that the constant chopping and changing from Government makes it very difficult for them to scale up and provide the amount of work that needs to be done across the country.

It is crucial that we get this right urgently. The CCC’s report to Parliament this week showed why, of all the issues, we must move more quickly on building decarbonisation, not just for consumers, homeowners and businesses, but for our ability fundamentally to hit net zero and protect the planet from the worst effects of climate change. I urge Ministers, when they are thinking about delivery and, as a consequence, about value for taxpayers’ money, to radically change their approach. I urge them to set out a policy direction and a well thought-through product design that businesses and homeowners understand they can take part in. It should be properly financed and go street by street across the country to ensure that we get on with this now, given the complete lack of progress over the past few years. I wonder whether the Minister, in summing up, will have any reflections on how the Department might improve its delivery of this important work.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

rose—

[Caroline Lucas]

rose—

[Chris Skidmore]

I will give way to the hon. Gentleman and then to the hon. Lady, but after that I must get on, because I do not want use up all my time with interventions.

--- Later in debate ---

[Bim Afolami]

I thank my right hon. Friend for that typically well-made and excellent point. If the major energy companies established a long-term fund on that basis to make the investment that they say they are making—and which they are making, but which they say they want to make more of and which the Government want them to make more of—that would be helpful, not just as a signal to the market of where they were using their capital, but as a signal to the country that they were serious about putting their money where their mouth is.

[Caroline Lucas]

I am all in favour of fossil fuel companies creating funds, but would not another way of achieving that be for the Government not to give oil and gas companies such an extraordinary subsidy, as part of the windfall tax—the so-called 80% investment allowance, which incentivises precisely the opposite kind of behaviour that the hon. Gentleman is speaking so eloquently about?

[Bim Afolami]

I thank the hon. Lady for her point. The intention behind subsidies—or, to use another word, support—for energy companies is to try to achieve what we want them to achieve. The investment allowances—there are various other things—should be tweaked or changed to incentivise more directly the sort of behaviours that we are talking about. On that, I support her.

--- Later in debate ---

[John Mc Nally (Falkirk) (SNP)]

I congratulate the right hon. Member for Ludlow (Philip Dunne) on securing this valuable debate.

Let me start by saying that I have here a reminder of why we are in this place debating our children’s future. It is a “Climate Comic”, produced by children in Windsor Park primary school in my constituency. I think the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) might be quite interested in having a look at it later on—I guarantee it will not go into Hansard. The children who helped to produce it all have sensory impairment problems; most of them are deaf, and they signed the presentation they made to us.

If we want to change the world, we must get busy in our own little corner, and that is exactly what those children have done. It is top-class work by the primary school. The children produced their climate-conscious comic as part of the Forth Valley Sensory Centre’s “Making Sense of Climate Change” project. I thank all who helped to produce the comic and raise awareness of the fact that time is not on our side. The narrative on climate change of, “We need to do this.”, will soon become, “We should have done that.”

Here is why: the energy and security strategy presented a prime opportunity for the UK Government to tackle the dual climate and cost of living crisis, and they failed on both fronts. Their lack of ambition in setting meaningful policy to tackle that crisis was exemplified by their energy and security strategy in April, a strategy that was widely criticised and deemed inadequate by stakeholders. In the aftermath of the strategy being announced, the former chief of Ofgem noted:

“One failure, that could’ve helped in the short to medium run, is a lack of focus on energy efficiency, on insulation, on improving the quality of people's homes—I think that is an opportunity missed.”

Simon Virley, KPMG’s vice-chair and head of energy and natural resources, no less, stated that

“this strategy won’t get us to Net Zero at least cost to consumers.”

Given the importance of tackling the cost of living crisis, that is a missed opportunity. Other European countries such as Holland, France and Germany are doing this as a matter of urgency. The strategy fails to set out measures focused on improving energy efficiency in buildings, which has been described as a silver bullet by industry experts.

I am a member of the Environmental Audit Committee. I pay tribute to our excellent Chair—the right hon. Member for Ludlow—my colleagues on the Committee and the excellent standard of work by its Clerks. On the sustainability of the built environment, our report stated:

“If the UK continues to drag its feet on embodied carbon, it will not meet net zero or its carbon budgets.”

The EAC also pointed to the lack of any evidence that the UK Government were taking action to prioritise retrofit or reuse of existing buildings. Furthermore, the chief executive of E.ON noted that

“our plea to the government has always been to push hard on energy efficiency because that is the proven way, if you like the only silver bullet for this crisis”.

[Caroline Lucas]

The hon. Gentleman is making a powerful case. Does he share my surprise that in a debate on energy costs there has been no reference yet to nuclear power, which is eye-wateringly expensive? We are just hearing that Hinkley Point is going to be a year late and cost yet another £3 billion. Does he agree that the money that is being sunk into nuclear could be much better spent in exactly the kinds of ways he is describing, such roll-out of energy efficiency in homes and renewable energy?

[John Mc Nally]

I absolutely agree. The money could be spent more quickly and efficiently, saving endless money that is wasted, is probably never going to be used properly, and is making someone somewhere very rich but certainly not putting energy efficiency into people’s homes or into businesses.

The UK Government’s failure to tackle the most basic measures that are crucial in helping to tackle the climate and energy crisis is emblematic of their broader failure to prioritise these issues. If Scotland is to stand any chance of meeting our ambitious climate targets, we simply cannot afford to be held back by inadequate Westminster policies for much longer. Scotland has the potential to become a global net zero energy hub. The UK Government’s lack of ambition cannot continue to jeopardise this. We have the perfect mix of skilled workers and natural resources to become a world leader in renewable energy. Our oil and gas workers have long been at the forefront of energy innovation. The Scottish Government are committed to a just transition that harnesses the expertise of these oil and gas workers and supports those currently employed in oil and gas to capitalise on the employment opportunities of net zero.

The Scottish Government’s national strategy for economic transformation sets out their ambition that by 2032 Scotland will be an international benchmark for how an economy can transform itself, decarbonise and rebuild natural capital. The Scottish Government’s climate emergency skills action plan sets out their ambitious approach to developing the current and future workforce to support the transition to net zero. The Economic Development Association Scotland has described the action plan as

“a leading example of planning for sustainable skills against climate change targets.”

The Scottish Government’s just transition fund, alongside their strong commitment to achieving net zero, shows that unlike the UK Government they are matching their climate promises with action. That is in stark contrast to the UK Government, who have refused to match the Scottish Government’s £500 million just transition fund despite the Treasury benefiting from £350 billion in revenue from North sea oil.

The Government in Scotland recognise that climate change is the priority. That priority, desired by the people, is being met as best as it can be by the Scottish Government, and with reasons matching desires in nearly equal measures. Give Scotland the competencies and we will surely match that desire.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

Thank you, Mr Deputy Speaker, for the opportunity to contribute to this debate. I congratulate my right hon. Friend the Member for Ludlow (Philip Dunne) on opening the debate so ably and posing the questions he rightly did, given his responsibilities as Chair of the Environmental Audit Committee.

Obviously, today is a quiet day in the eyes of the world, as the hon. Member for Bristol East (Kerry McCarthy) said. It may be correct that they are elsewhere, but we will none the less continue to discuss, debate and focus on the important issues that I think this Government have been serious about trying to address. We have been serious about trying to put frameworks in place and show a clear direction of travel, and we do that in the knowledge that net zero is a challenge. It is therefore right to ask the questions and undertake scrutiny, and that is why I want to focus today on the long term.

I think the important thing when we talk about net zero is to start from first principles. We often dive straight into this debate, and there have been some very good contributions today, but I think that first principles are a good place to begin. Most people in this place and across our country accept that human beings have had an impact on the world, and that that has changed over recent centuries. We all share the desire to tread more lightly on this earth and consider it appropriate that action is taken to do that.

The Government’s choice, and the choice of the centre right all around the world, is to seek to harness the immense power of capitalism, the immense ability of individuals and the immense ingenuity of human beings to find a way, in conjunction with Government, to achieve a resolution that ensures that we tread more lightly and get to the end point that we seek. That is on the basis of clear frameworks, of creating the conditions for investment—we are in the process of doing that—and of subsidy where that is reasonable and proportionate.

The first thing in a big task, which is what we have in front of us, is to have a plan, and the second thing is to execute that plan. Over the last year, we have now set out that plan—the net zero approach. Yes, it has assumptions in; yes, it is setting targets; and, yes, there will be challenges, but the whole point of a plan is to demonstrate direction. For those hon. Members who somewhat avoided this point in the debate, the plan has been lauded in the United Kingdom and elsewhere, and it was adopted early, demonstrating the commitment to trying to make progress. Now, the challenge is the execution of that plan.

I must remind hon. Members, particularly those who are extremely keen to see progress, as we all are, that we are nine months into a 29-year process. That means that there are issues, things will change and there will be progress reports; we will come back with a progress report in the usual way later in the year. It will be appropriate to look at the status, and some people will, of course, want to go further. However, we have the plan and we are executing it, and I think we are showing a consistent, calm and methodical approach to these very serious issues that recognises where we want to go and how we should get there.

I turn to some of the speeches and interventions. My right hon. Friend the Member for Ludlow introduced the debate, and I am grateful to him for his opening speech. He rightly holds us to account, and he is right that we live in challenging times—something that has to be considered in today’s discussion and in all our debates in this place. We have consensus about where we should move to. He is right to ask the question, but I hope he does not think that our attempts to move forward methodically, recognising that there are still challenges and that we still need to take time to work out how to approach things, can be described as waiting for something to turn up. I am sure he will not think that. Sector by sector, industry by industry, and element by element, we have to work out where the market or individuals will resolve the issues themselves, where it is reasonable and proportionate for the Government to subsidise the development and execution of solutions, and where other solutions may work.

Let us take aviation, which was considered by my right hon. Friend’s Committee a few weeks ago. We are still relatively early in the curve of knowing exactly what technology we will use. Working that out will allow us to quantify the cost of that technology, and to work with individual aerospace companies on how to approach the subject. Using a framework, a strong approach and collaboration, we must work through how to get to the end point that we want in aviation.

[Caroline Lucas]

The issue is not just that the Government are not bringing forward good stuff fast enough—in other words, the delivery gap that the Committee on Climate Change referenced. The Government are also doing bad stuff. The Committee on Climate Change said that the Government’s plans for more new oil and gas projects in the North sea did not make economic sense. Will the Minister listen to that committee, which is there to give him advice, and look again at the reckless idea of extracting yet more oil and gas from the North sea? That will not get our prices down, and it will not help with the cost of living crisis.

[Lee Rowley]

The hon. Lady and I have spoken about this before, and I know she has discussed the issue with my colleagues. We recognise that we are in a transition, and that fossil fuels are required to get us to the end. The aim of the transition is to get us to net zero, and a requirement of net zero will mean that for certain processes, we will still have to use a much smaller amount of fossil fuels, accompanied by capture technology.

[Caroline Lucas]

indicated dissent.

[Lee Rowley]

The hon. Lady shakes her head, but the alternative is closing down large swathes of industry. If she wants to make that case to the electorate, she can do so and see whether they agree. There would be a lot of people unemployed or without livelihoods, and a lot of industries that would close down. It would not benefit the world as a whole, because those industries would just move elsewhere and offshore. Those are exactly the kinds of unintended consequences that the centre left in this country need to think through, understand and work through before they suggest—as they do, incorrectly, regularly—that they have a viable solution to climate change.

The hon. Member for Bristol North West (Darren Jones) is rightly keen on delivery, as am I. Having sat on the Public Accounts Committee for 18 months in the previous Parliament, I know that delivery is at the core of what we should all seek to do in this place. Policies are one thing, but making sure they are implemented can be very different. I hope the hon. Gentleman will accept that we are in the relatively early phases of some elements of the net-zero plan, and that he will give us time to develop the propositions, as we have done over the last year. We must ensure a strong delivery focus, just as my colleagues in the Department for Business, Energy and Industrial Strategy have done, and I am sure that will continue to be the case in the months and years ahead.

I have the greatest respect for the hon. Gentleman. We have worked closely together on other areas, and we share a similar corporate background. He will know from our time in corporate life about the importance in project management of sending signals and ensuring that clarity about where we are going. The combination of those signals, our track record, and the road maps that we have published for carbon capture, utilisation and storage, for hydrogen, for auto, and for other things will provide some comfort that we are making progress. We obviously have a disagreement about the level of state intervention in certain areas, and I am sure we will continue to debate that in forums such as this Chamber.

My right hon. Friend the Member for Kingswood (Chris Skidmore) makes a number of important points about ensuring that we have a long-term approach. To take aviation as the example again, the challenge is in ensuring that we understand exactly what that will look like and where it will go. However, I accept and acknowledge his point. He also rightly made a point about the importance of dependency, in this instance on fossil fuel producers. He and I have had discussions about not wanting to switch from dependency on fossil fuels to dependency on critical minerals. That is why the Government will introduce a strategy on critical minerals in short order.

I am grateful to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for his comments, in particular on onshore wind, which I will certainly pass on to my right hon. Friend the Minister for Energy, Clean Growth and Climate Change. He made an incredibly important point about the importance of having local supply chains where possible. On Thursday, I visited Siemens in Goole, and it was heartening to see that much of the supply chain for the amazing new facility coming to the East Riding is made up of local businesses and local people from across Yorkshire. They are ensuring that we have a fantastic train factory that will allow us to support net zero.

My hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) was right to highlight the importance of transition within net zero, which I have covered, and of not demonising but working with industry. My hon. Friend the Member for North East Bedfordshire (Richard Fuller) made an incredibly important point about individual agency. He spoke about the importance of taking people with us, and of ensuring that we undertake this massive task of treading very lightly on the Earth by 2050 with the consent of the people we represent. We do that by calmly and methodically setting frameworks and defining approaches.

The hon. Member for Falkirk (John Mc Nally), in summing up for the Scottish National party, talked about mechanisms for demand in the British energy security supply strategy. That should be looked at in concert with other strategies, documents and frameworks that have been brought forward. I encourage him to do that. The Labour spokesperson, the hon. Member for Bristol East, extensively referenced the Climate Change Committee report. As I said, we will respond on that in due course. We welcome all outside organisations’ comments, but it is important that there be recognition in the committee’s document of what the UK has achieved, that it is a world leader, and that it has set the right course. It is important that we provide all of that in the round.

I am grateful for all the contributions to what has been one of our better debates in this place. This is a hugely important issue. We recognise, as did most of the contributions, that this is a long-term issue. In some places, we have made huge progress—there has been a 40% reduction in carbon emissions in the last 30 years—but we have some way to go. That is the entire point of net zero, and of the Government working with business to harness the fantastic ingenuity of capitalism, so that we can make progress. I look forward to more of it being achieved, so that we can ensure that the objective of treading lightly on the Earth by 2050 is achieved.

Oral Answers to Questions

Caroline Lucas Excerpts

Tuesday 7th June 2022 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

One of the fastest and most effective ways to protect people from the impact of rising energy costs would be an ambitious retrofit and insulation programme, which should have been at the heart of the Government’s approach but has been conspicuous by its absence. The Government support pledged so far for energy efficiency falls £1.4 billion short of their manifesto commitment, so will the Secretary of State tell us what more he plans to do on the issue? In particular, will he tell us with absolute certainty that legislation for ECO4—the energy company obligation—which was due in April, will not face any further delays and will definitely be laid before Parliament before the summer recess?

[Kwasi Kwarteng]

It is not my job to say when legislation will be coming into this House—[Interruption.] What I will say—[Interruption.] What I will say specifically in relation to decarbonisation is that we have a clear heat and buildings strategy. The manifesto commitment covered 10 years, so it was not over the term of the Parliament. There was a clear manifesto commitment over 10 years and more money clearly needs to be spent to honour that commitment over a 10-year spending period.

Fossil Fuel Extraction

Caroline Lucas Excerpts

Tuesday 26th April 2022 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

In this global week of advocacy for fossil fuel non-proliferation, I call on the Government to deliver on the climate leadership that was promised, while the UK still has the COP26 presidency, by helping to initiate a negotiation process on an international fossil fuel treaty to phase out fossil fuels. I will set out the context for this treaty, the idea for which originated several years ago with parliamentarians in the global south and that has now been endorsed by more than 200 worldwide. I will lay out some of the reasons why such a treaty is necessary and ask the Minister some key questions about the Government’s strategy for ending fossil fuel production.

According to the latest Intergovernmental Panel on Climate Change report, the burning of coal, oil and gas accounts for around 86% of all carbon dioxide emissions in the past decade. There is global consensus that, on scientific, economic, public health, justice, moral and countless other grounds, we have to end our deadly addiction to fossil fuels, and we have to do it fast. At the Glasgow climate summit, under the UK’s ongoing COP presidency, for the first time since the original UN framework convention on climate change was negotiated in 1992, fossil fuels were finally referenced in the outcome text, albeit by committing only to a “phase down of coal”. But the fossil fuel age is well and truly over, and the only debate to be had is how quickly, successfully and fairly we act: whether we urgently transition to a zero-carbon economy or decline into climate chaos.

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Does my colleague on the Environmental Audit Committee agree that one problem we face is as a result of her colleagues in Germany forcing the closure of nuclear power plants? The Germans are burning more fossil fuel than before, and if we had a nuclear future, we would be able to have a lower carbon footprint in this country. If only Germany would follow that lead.

[Caroline Lucas]

I think I thank the right hon. Gentleman for that intervention. The truth is that although mistakes have certainly been made in Germany in the past, the idea that new nuclear now can help the UK get to net zero fast enough is simply misguided; it is too costly and too slow, and it simply will not get us where we need to be quickly enough. What is clear, however, is that phasing out fossil fuel production, and fast-tracking progress towards safer and more cost-effective alternatives, will require unprecedented international co-operation.

I want to begin with a quick reminder of the science and with what climate experts are saying about fossil fuel production. Last year’s United Nations Environment Programme production gap report concluded that in order to limit warming to 1.5°C, the world will need to decrease fossil fuel production by at least 6% per year between 2020 and 2030. At the moment, there is no collective means of reaching that hard scientific deadline together, of accounting for the global impacts of choices made unilaterally by individual nations on our shared planet. Yet a universal and equitable approach is critical, as the Tyndall Centre’s own production phase-out report warns. It says:

“For a 50% or better chance of 1.5°C, our analysis shows that all producer countries must peak their production immediately and begin an uninterrupted decline. Expanding production in wealthier producers would either shift poorer producers (in fact all producers) onto more steeply declining pathways with earlier end dates, or put the temperature commitments beyond reach.”

Let us be absolutely clear: the UK is one of those wealthier producers, which together produce more than a third of the world’s oil and gas. Moreover, the UK has a moral responsibility to go further and faster than the vast majority of the world, because our historic cumulative emissions are so much greater. Tyndall analysis finds that the UK must reduce our oil and gas production by 50% in six years, which equates to an 8.3% reduction year on year, and must cease it completely by 2034—and that is just for a 50% chance of staying below 1.5°C once equity is factored in.

[Wera Hobhouse (Bath) (LD)]

We now have an end date to phase out diesel and petrol cars, which has forced the industry to put its mind to it and follow very quickly. People and organisations can then follow suit. If we had an end date for extracting fossil fuels, would that not concentrate minds, with people working much faster than they do now, when they think we can have business as usual?

[Caroline Lucas]

I thank the hon. Lady for her contribution and I completely agree with it; that is exactly what this fossil fuel treaty is all about. It is about countries setting those end dates and then working towards that reduction swiftly but in a coherent and co-ordinated fashion.

The International Energy Agency has been similarly clear that countries, including the UK, must halt all new fossil fuel exploration and development from the end of 2021 if we are to keep below the 1.5°C threshold. In its recent assessment of the climate compatibility of new UK oil and gas fields, the Climate Change Committee stressed that extra extraction of gas and oil will simply support a larger global market overall. We know that if oil and gas are produced, they are consumed, so extra oil and gas production can reasonably be assumed to result in extra global consumption. Although the CCC has not been able to quantify accurately the impact of new domestic production on global consumption, every expert is clear that the direction of travel globally has to be weaning ourselves off fossil fuels. The Committee therefore recommended a presumption against exploration, explaining that

“an end to UK exploration would send a clear signal to investors and consumers that the UK is committed to the 1.5° C global temperature goal”.

When it comes to the UK’s ongoing diplomatic responsibilities as COP President to strengthen climate ambition internationally, it is clear that any domestic policies that increase the fossil fuel market undermine that ambition and open us to the accusation of gross hypocrisy. Of course, I understand that the Government have other responsibilities too and that this debate is happening in the midst of a cost of living crisis. While companies such as BP and Shell are raking in eye-watering profits, millions of households are pushed into poverty. Yet only a tiny proportion of the oil and gas industry’s total capital expenditure is going into renewables—just 1% in 2020 and still only in single figures today. I wholeheartedly support efforts to cut the UK’s reliance on Russian fossil fuels and to shield families from the effects of high global gas prices. What I do not support is the pursuit of policies that will end up exposing people to more costs in the long term.

I do not support historic decisions such as gutting energy-efficiency subsidies, effectively banning onshore wind in England and scrapping the zero-carbon homes standards, which together have actually added £2.5 billion to UK energy bills over the past decade. When we know that energy security quite literally starts at home, it is frankly shocking that the Government’s energy security strategy failed to deliver a retrofit revolution for the UK’s leaky homes. I do not support any strategy that defines winning at this critical juncture in human history in terms that literally sacrifice the future of humanity, or indeed policies like a climate checkpoint that would somehow greenlight the pumping of new North sea oil and gas when there is no global scenario in which that is compatible with keeping 1.5° alive and climate justice—a critical threshold which, let us remember again, means that every producer country must peak their production immediately and begin an uninterrupted decline.

It is very possible to reduce people’s energy bills here in the UK, cut carbon dioxide emissions, end fuel poverty, and stop oil and gas profits from filling Putin’s war chest. If we choose that, we can manage our way fairly and safely through this crisis. We can choose not to fall into knee-jerk responses that undermine our shared prosperity. Ambitious investment in insulation and heat pumps through a retrofit revolution, alongside meaningful direct financial support for struggling households, is the first step.

As the CCC states:

“The best way of reducing the UK’s future exposure to these volatile prices is to cut fossil fuel consumption on the path to Net Zero—improving energy efficiency, shifting to a renewables-based power system and electrifying end uses in transport, industry and heating. Any increases in UK extraction of oil and gas would have, at most, a marginal effect on the prices faced by UK consumers in future.”

Systemic change is the next step: ambitious, consistent and aligned with 1.5°. It is the very opposite of immediately turning off the taps now, which is not something I have ever advocated, so I hope the Minister will not repeat his Department’s regular assertions that those of us who are campaigning against new extraction are envisaging an immediate closing of the taps. We are not, and never have. In fact, many of us are fiercely calling for a just transition for offshore workers. I remind the Minister that it was MPs on the Government Benches who voted against my amendment to the Skills and Post-16 Education Bill, which would have helped oil and gas workers access jobs in renewable energy more easily.

Given that we are operating within the immutable reality of hard physics, it is short-term policies such as licensing more oil and gas production that increase the likelihood of being forced into unplanned shock actions. To put it another way, if we turn on more taps, as the Government’s energy security strategy suggests, it is inevitable that we will end up watching the flood waters rise on the future and be forced to take drastic action—inevitable because pumping more fossil fuels from new wells undermines our fundamental ability to keep the global temperature increase to 1.5°. Why would anyone choose that trajectory, no matter what the perceived short-term benefits, rather than take a sensible, managed global approach to fossil fuel production? Why indeed? And yet, without a fossil fuel treaty to guide us constructively through what is a life-critical mission, we risk sleepwalking into just such a scenario.

The 2021 UNEP production gap report warns that Governments currently plan to produce more than twice the amount of fossil fuels in 2030 than is consistent with limiting heating to 1.5°. The IPCC’s latest report warns that emissions from existing and currently planned fossil fuel infrastructure are higher than the pathways for 1.5° allows. No amount of political wishful thinking can magic away the science or the threat of catastrophic global heating if we do not start to act globally now to manage fossil fuel production and its phasing out. My first question to the Minister, then, is whether he will tell us whether the UK has a date by which it plans to end fossil fuel production. Does it have a coherent road map to get there?

Let me say a few words about the fossil fuel non-proliferation treaty. It originated in 2015 in Pacific island nations. It has been endorsed by 43 cities and sub-national Governments, from France to Costa Rica to Australia. It is backed by more than 2,700 global scientists, Nobel peace prize winners and climate leaders. It stems from the recognition that the world ultimately needs a formal process—a legal architecture—to deliver a negotiated instrument on the managed transition away from fossil fuels. Of course, that will require building political momentum both within and outside the UN community. International co-operation is vital to enable countries to reduce their mutual dependence on fossil fuels, to manage the decline of production to support workers and communities, to transition rapidly to renewable energy, and to build more diverse economies.

There are three main elements to the treaty proposal: first, to prevent the proliferation of fossil fuels, with a worldwide moratorium on the development of all new oil, gas and coal reserves so that we see an end to new exploration and production; secondly, to manage the decline of production by phasing out existing stockpiles to include the removal of production subsidies, the dismantling of unnecessary infrastructure and the shifting of support to safer and more sustainable alternatives; finally, to speed up a just and equitable transition to 100% renewables. Will the Minister tell us whether the Government disagree with any of those objectives? If they do not, is he prepared to join others in advocating globally for such a treaty?

Of course, we do not have to wait for the treaty; we can start now by scaling up domestic measures to reduce fossil fuel supply, alongside the reduction of demand. As the Minister will know, the CCC’s pathways would see the unabated consumption of gas “virtually eliminated” by 2050. The CCC recognises that, even with a significant role for carbon capture and storage, total UK gas consumption must fall by 50% by 2035 and by 75% by 2050. According to official figures, it takes on average 28 years to go from the discovery of a new oil or gas field to production, which would bring us neatly to that same date. That reinforces, yet again, the unsustainability of the granting of new exploration licences. What is more, 70% of what is left in the North sea basin is oil, not gas—and it is not even the type of oil that we use in UK refineries anyway.

The Government are fond of saying that it is better to produce gas at home than to rely on imports but, of course, it is not our gas: it belongs to private companies and will be traded on global markets to the highest bidder. Contrary to what the Government often claim, the carbon intensity of oil and gas produced in the UK is pretty average and in fact higher than that of Norwegian gas, which is our main source of imports. Ministers need to scrap the very notion of the climate checkpoint and the outdated legal duty to maximise the economic recovery of North sea oil and gas. They need to rule out once and for all the possibility of drilling at Cambo to signal clearly, right now, that Shell will not be given approval for the new Jackdaw gasfield.

Jackdaw will not lower bills or make our energy more secure, but it will produce pollution equal to half of Scotland’s annual emissions. No Government in their right mind would consider such a move, and nor would they continue to support the fossil fuel industry through tax breaks and financial support for exploration and for research and development, yet that is happening, to the tune of £12 billion a year. I know the Treasury does not consider a penny of that to be a subsidy, but New Economics Foundation analysis found that around £10 billion-worth is indeed covered by the subsidy definition used by, for example, the International Monetary Fund.

In fact, the UK’s tax regime makes it the most profitable country in the world for oil and gas companies to develop big projects. Shell alone received a £92 million tax rebate from the UK in 2021—the largest total from any country in which it operates. Yet when I have challenged Ministers previously, I have been met with arguments about how much tax the sector pays, or a refusal to recognise the definition of a subsidy that I use. I stress that that definition follows exactly the principles used by the World Trade Organisation, the IMF, the OECD and the Overseas Development Institute. It is at best quibbling and at worst dissembling.

It is deeply disappointing that the UK has consistently bowed out of G20 efforts to grapple with subsidies by refusing to take part in its peer review on the ground that the Government disagree with the definitions in use. Will the Minister reconsider that position? Whether fossil fuel companies pay tax and how countries interpret what counts as a subsidy are not the issue. The issue is whether the net effect is public money being given to fossil fuels when the world promised in the Glasgow climate pact to stop inefficient fossil fuel subsidies, bearing in mind that even the IMF says that any fossil fuel subsidies are inefficient.

Glasgow also gave us promises about coal. As the Minister will know, the UK made addressing the issue one of its four priorities at COP26, with the Prime Minister declaring that

“Glasgow sounded the death-knell for coal power.”

We are also, of course, a founding member of the Powering Past Coal Alliance. All that makes it particularly puzzling that the Government have failed to take a stand against the Aberpergwm deep coal mine in South Wales, extending its licence. That would allow it to run until 2039, extracting a further 40 million tonnes of coal and emitting up to an estimated 100 million tonnes of CO₂.

Just this weekend, we have also seen the prospect of the first new deep coal mine since the 1980s rear its ugly head again. We are told that the proposed Cumbria mine is needed to provide coking coal for the steel industry until 2049, yet less than 10% of that coal is expected to be used by the UK steel industry; 85% of it is planned for export to Europe. We should be investing in green steel production instead. The CCC is clear that coking coal used in steelmaking could be displaced completely by 2035, only halfway through the mine’s proposed lifetime. The Tyndall centre says that, for developed nations such as the UK, coal production needs to fall by 50% within five years and be effectively eliminated by 2030—nine full years before Aberpergwm would cease production and 19 years ahead of when the Cumbria coal mine is projected to close.

The IEA is similarly explicit: if we want even a chance of limiting the global temperature rise to 1.5°, no new unabated coal plants, no new coal mines and no new mine extensions can be approved for development after 2021. Globally, we know that the world already plans to produce 240% more coal than is consistent with 1.5°. Some may argue that Aberpergwm is a drop in the ocean, but this is the bigger picture we need to keep in mind. Will the Minister assure us that his Government will not permit any new coal extraction in the UK?

To sum up, meeting the demands of the science has implications for where our pensions are invested and what our banks are funding. It has implications for the donations given to political parties, for the ways in which insurance companies operate, for how food is grown and produced, for how we travel and for the offsetting rules that incentivise continued extraction and use of fossil fuels.

A fossil fuels treaty would enable the necessary disentangling of our economy, our politics and every other aspect of our lives from fossil fuels. One of the stepping stones towards a treaty is setting up a global registry of fossil fuels. That could be hosted by an organisation such as UNEP and would be a comprehensive, transparent, public source of data on estimated fossil fuel reserves and production. If we want to manage fossil fuel production, we need to know what reserves are out there, and who is planning on using them. Some countries have already embraced the principles behind that approach—those that back the Beyond Oil & Gas Alliance, for example. The UK could and should be next.

As I said at the beginning of this debate, we are in a week of global advocacy for the fossil fuel non-proliferation treaty, and I want to end by recapping the questions I have asked the Minister. First, will the Government revisit the UK’s decision not to take part in the G20 peer review of financial support for fossil fuel production? Will they instead engage meaningfully with the process, including being open to assessing the UK’s support against various definitions of subsidy? Secondly, will Ministers undertake to discuss the proposal for a global registry of fossil fuels with counterparts in countries such as Denmark, France, Sweden and Luxembourg, which seem to have successfully overcome the commercial confidentiality objections mooted by the North Sea Transition Authority? The authority should itself be required to publish its field level data on oil and gas reserves.

Thirdly, Stockholm+50 in June is a key moment to build significant political momentum around the proposal for a fossil fuel non-proliferation treaty. Will Ministers commit to going there with the intention of helping initiate a negotiating process for a treaty to phase out fossil fuels within the UN system? Finally, have the Government set a proposed end date for oil and gas extraction and production? When will that be and is there a road map, beyond what is set out in the north sea transition deal? I look forward to the Minister’s response.

Energy Security Strategy

Caroline Lucas Excerpts

Tuesday 19th April 2022 Commons Chamber

[Kwasi Kwarteng]

I would be very interested to hear my right hon. Friend’s views on solar. I think solar is crucial. I am delighted that we have so many former Energy Ministers in the Chamber today; my right hon. Friend was a very distinguished holder of the post, and I am very pleased to engage with him on this important subject.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The triple test of the strategy is whether it helps to cut dependence on Russian gas, whether it brings down bills and whether it secures a safe climate. It manages to fail on all those fronts. It also has a massive hole where energy saving should be.

It has been reported today that the Government are considering scrapping green levies, which support renewables and address fuel poverty, as the Secretary of State knows, and which therefore help to get fuel bills down. Can he reassure me that that rumour is false and that any changes made will simply be about moving those levies to general taxation—or will this be another policy led by a handful of Tory Back Benchers?

[Kwasi Kwarteng]

I engage with Front-Bench and Back-Bench colleagues all the time and they have lots of brilliant ideas. I do not recognise the hon. Lady’s characterisation of the strategy; I think it does deliver on security, it does deliver on longer-term affordability and it does deliver on the sustainable net zero targets that many in this House agree with.

Oral Answers to Questions

Caroline Lucas Excerpts

Tuesday 29th March 2022 Commons Chamber

[Lee Rowley]

My hon. Friend makes two crucial points: first, that technological innovation—the ingenuity of human endeavour—is crucially important in helping us to get to net zero in the first place; and secondly, that it is very important that we let a multitude of technologies and innovations grow and develop, working in conjunction with private enterprise, to help to solve society’s challenges.

[Caroline Lucas (Brighton, Pavilion) (Green)]

14. Whether he was involved in the decision of the Oil and Gas Authority to change its name to the North Sea Transition Authority.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The North Sea Transition Authority decided to change its name to reflect its important role in the energy transition, driving the UK upstream oil and gas industry towards net zero. My right hon. Friend the Secretary of State was consulted on and supported this change.

[Caroline Lucas]

No amount of greenwash can hide the fact that the Oil and Gas Authority’s primary purpose is to pump every last drop of oil and gas from the North sea, but the International Energy Agency report that was commissioned by this Government is clear that there can be no new exploration for fossil fuels. Let me pre-empt the Minister’s response by saying that no one is suggesting turning off the taps tomorrow, as he regularly claims. We absolutely need a transition that is fair to workers; what we do not need is a so-called climate pass to allow the Government to ignore climate consequences and license more explorations supposedly on the grounds of national security. Can he assure us that he recognises that climate change is itself an issue of national security, and that if we are serious about our net zero commitments there can be no exemptions from the climate compatibility checkpoints?

[Lee Rowley]

If the hon. Lady accepts the principle of transition, then she needs to accept the principle that we will need oil and gas for a number of years yet. That is logical, simple and understood. The only greenwashing that is going on is the Green party pretending that it is interested in green issues when it is only interested in socialism.

Shale Gas Production

Caroline Lucas Excerpts

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

I thank my hon. Friend for his question and for his ongoing interest in all matters relating to energy, but I must say to him that Cuadrilla was told almost a year ago, in June 2021, of the requirement to decommission the two wells by the end of June 2022. It was given a huge amount of notice to do that. I mentioned earlier that the Secretary of State and I have spoken to the Oil and Gas Authority today, and I believe that further communication will happen with the company.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I am glad the Minister has acknowledged that fracking would do nothing to increase our energy security, given that the energy would then be sold on global markets at international prices. I am also grateful that he talks of the importance of public consent. He will know that, given that only 14% of people support fracking and the fact that it would require 6,000 wells to replace even half the gas we are currently using, that will not happen any time soon. However, I urge him to do more on energy demand. This whole debate has been about energy supply—where is the action on reducing demand? That is where the Government are dragging their feet and that needs to change now.

[Greg Hands]

We have comprehensive investments going on through the heat and buildings strategy and other initiatives to ensure that energy demand is also addressed. But may I say this, because I think the hon. Member missed the last couple of occasions to put questions to the Dispatch Box? One thing I am sure of is that I am glad we did not follow the advice of the Green party back in 1989, when it scored its record result in an election with 15%. Its advice was that it was impossible to take action on emissions while simultaneously growing the economy. I am really glad that we decided to ignore that advice, because in the intervening 30 years we have grown the economy by 78% and reduced our emissions by 44%, comprehensively proving the Green party totally wrong.

Russian Oil Import Ban

Caroline Lucas Excerpts

Wednesday 9th March 2022 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Government are right to get off Russian oil and gas—I welcome that—but wrong to propose replacing it with new domestic production. Our dependence on fossil fuels is what got us into this energy crisis in the first place, and that is why many of us, including the International Energy Agency, are calling for no new licences. The real insanity is trying to get out of one crisis by plunging ourselves into another. More extraction from the North sea will keep our bills high and drive us past safe climate limits, and fracking will not help. Will the Secretary of State use this moment to launch an emergency green revolution? Will he get serious at last about energy efficiency, and will he wean the UK off not just Russian oil and gas, but all oil and gas now?

[Kwasi Kwarteng]

On this question, I have to confess that the hon. Lady and I have completely different views. We are diametrically opposed. I agree with her on the net zero commitment, but this idea that we can simply switch the lights off, so to speak, on oil and gas is absurd. [Interruption.] It is completely absurd and we need to have investment in the North sea.

[Caroline Lucas]

“No new licences” is what I said.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I think I said quite clearly no more shouting from people who are sitting down.

Oral Answers to Questions

Caroline Lucas Excerpts

Tuesday 22nd February 2022 Commons Chamber

[Kwasi Kwarteng]

There has been a critical issue with very high wholesale prices, which as I speak are about 200p a therm, whereas at the beginning of last year they were 50p a therm or lower; there has been a quadrupling of the price. The energy price cap has protected consumers, but we are talking to Ofgem all the time about how we can refine the cap to make it more sensitive to wholesale prices in the market.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Today marks the start of International Energy Week, formerly International Petroleum Week. The Secretary of State was billed to open the event, and he will know that, despite the rebrand, the lead sponsors include fossil fuel giant BP, which is investing just 2.3% of annual capital expenditure into the jobs-rich green energy sector. When will the Government end their cosy relationship with the fossil fuel dinosaurs and replace the outdated duty to maximise economic recovery with a duty to minimise the extraction of North sea oil and gas and to maximise clean, green jobs instead?

[Kwasi Kwarteng]

The hon. Lady will know that we have committed to the “Net Zero Strategy”, which was lauded across the world as a world-beating document. She also knows that, as I have said repeatedly and my right hon. Friend the Minister for Energy, Clean Growth and Climate Change has also said, we are committed to a transition, not extinction. We have to work with fossil fuel companies and the industry to transition to a net zero future, and that is exactly what we are prepared to do.