Durban Climate Change Conference
Debate between Chris Huhne and Andrew George
Chris Huhne
Let me answer the last part of that question first. The most encouraging thing is that we dealt with both time periods. There is a clear commitment to dealing with a single over-arching global agreement from 2020, but there is also a clear set of procedures—admittedly, there are no numbers yet—for addressing the emissions gap from now through to 2020, so the process will not stop in 2015. We have achieved great progress in getting real action. The contrast is often noted between Canada, which is a signatory to Kyoto protocol but is busting all its targets, and China, which is not bound on emissions but is doing an awful lot. We are able to do an awful lot and that is very important.
Adaptation is key and yes, that will be essential to the efforts of the green climate fund, particularly the public funding. It is much more difficult to get private funding for adaptation measures—that is much easier on the mitigation side. I expect that the publicly funded aspect will be higher than 50%. I draw the hon. Gentleman’s attention to the recent OECD report, which found that our existing commitments on and support for adaptation measures were among the best, and that will continue.
Andrew George (St Ives) (LD)
Notwithstanding the answer that my right hon. Friend gave the right hon. Member for Don Valley (Caroline Flint), what lessons can we take from the conference when negotiating international agreements? Does he believe that the UK’s contribution to this welcome outcome would have been made easier or more difficult had we adopted an isolationist posture?
Annual Energy Statement
Debate between Chris Huhne and Andrew George
Chris Huhne
I understand the hon. Gentleman’s concern, which I have shared. I met the executives from Rio Tinto Alcan who deal with that plant and I put to them a simple question: if we were able to provide support for electricity generation through, for example, conversion to biomass, would they guarantee that they would keep the plant open? They did not give me an answer and one executive is quoted as saying that the 40-year-old plant was beyond Government subsidy. I do not think that, and I very much hope that we can work on finding a solution, but I can assure the hon. Gentleman that the energy intensive package is under serious and urgent consideration. It is on course to be announced by the end of the year, which is what we were committed to doing, and it is also a matter of regret to me that the announcement was made about the Rio Tinto Alcan plant before the managers had the opportunity to read what we were able to say, which suggests to me that they had previously made up their mind.
Andrew George (St Ives) (LD)
Of course, energy bill payers contribute a few quid towards the support of renewables, but the big six help themselves to £150 per annum per household. Does my right hon. Friend believe that that is a reasonable balance, and how can we achieve a reasonable balance?
Chris Huhne
The key in any market is to ensure that it is properly competitive. I am absolutely in favour of shareholders, particularly since they are usually our pension funds and our insurance companies, making the best possible return in a competitive market. That is why we are stressing the key competitiveness requirements of the wholesale market and the retail market. When we get that right, we will have the assurance that the rates of return in the marketplace for the big six and, I hope, for the new entrants to the market will be fair, precisely because they have been earned fair and square in a competitive market.
Oral Answers to Questions
Debate between Chris Huhne and Andrew George(13 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
No, I cannot agree with the hon. Gentleman on that point. It was regrettable that we did not proceed with Peterhead in 2007, and one thing that we can hold out real hope for is the fact that we have had considerable expressions of interest from Scottish and Southern, and other potential consortium members, for a Peterhead project, which should be able to proceed within budget and on time.
Andrew George (St Ives) (LD)
I welcome today’s announcement on the renewables obligation certificates review, particularly in respect of marine renewables and the wave hub project off the north coast of Cornwall. What will the Secretary of State do to ensure that the UK leads the world in marine renewables from now on?
Chris Huhne
One of the features of the renewables obligation review that my hon. Friend will have noticed is that we have increased our support for marine technologies to five renewables obligations certificates. In our view, that will bring forward the necessary innovation and testing to ensure that we have a world lead in this sector.
Energy Prices
Debate between Chris Huhne and Andrew George(13 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
No, I disagree with that. I think that we have a very good track record at a number of our leading universities, with Edinburgh being first and foremost amongst them, of work on carbon capture and storage. One lesson that we have learned from the negotiations is that we can build a commercial-scale CCS plant with £1 billion. Indeed, we have had a very clear indication of interest back at Peterhead from Scottish and Southern that it would be prepared to do that with consortium partners. That is clearly going to be an offer that other contestants will have to beat, so for all the reasons that I have given and that I have explained at considerable length, we are determined that we should be successful with CCS technology. It is disappointing to me personally and to many others that we were not able to proceed at Longannet because of the specific problems there, but that certainly does not mean that we are shelving CCS.
Andrew George
I appreciate that my right hon. Friend is giving the House the benefit of time and his advice on the issue. Nevertheless, there will be concern about the impact that that outcome might have on the time scale for the delivery of an effective CCS programme. To be clear, is he saying that the difficulties at Longannet were primarily financial or technical? Does that raise a question about the viability of the technology, or can he reassure the House in that regard?
Chris Huhne
I can reassure the House that on the basis of the feed studies, that does not raise questions about the generic technology. What arose were questions related to the specific costs of employing the technology at Longannet, given how far away it is from the reservoirs and so forth. Those were the issues. We are confident that we can procure a CCS commercial scale plant within that £1 billion. That is what we intend to do.
Electricity Market Reform
Debate between Chris Huhne and Andrew George
Chris Huhne
I entirely agree with the hon. Gentleman. Investors need certainty and clarity, and that is what we are giving them today.
Andrew George (St Ives) (LD)
I warmly welcome my right hon. Friend’s statement. On decentralised energy, does he agree, particularly with regard to onshore wind, that the sooner it is enabled, the sooner we can overcome the innate reluctance of many communities to accept it. and ensure that they can share in the benefits?
Chris Huhne
I agree with my hon. Friend about the importance of community schemes. That message has come clearly from the successful schemes, particularly those north of the border. He is absolutely right to point out that when the community has a clear stake in a proposal, it is much more likely to back it.
Oral Answers to Questions
Debate between Chris Huhne and Andrew George
Andrew George (St Ives) (LD)
My right hon. Friend mentioned the review of the renewables obligation certificates. He will be aware of the great opportunity presented by the wave hub project located off the north coast of my constituency. In respect of the review, however, what reassurances can he give me and the House that there will be an even playing field north and south of the Scottish border?
Chris Huhne
The devolved Administration—the Scottish Government—have the ability to vary ROC support somewhat, which they do in the case of advanced marine renewables. We are determined on both sides of the border to see progress on those technologies, because they have enormous potential in the years to come, and I am sure that there is enough to satisfy those both south and north of the border.
Chris Huhne
Obviously the timing of the final stages of the Energy Bill is a matter for the business managers, but we are determined to hold to the October 2012 deadline for the launch of the green deal and are working to ensure that we meet it, despite the congestion we have faced in the House of Commons. I am grateful to the hon. Lady for encouraging us to come forward with further details of our policy and note that she is about to offer what has been billed as the first detailed insight into the Opposition’s thinking on low-carbon policy at a green business event, which I am sure we all look forward to.
Andrew George (St Ives) (LD)
T2. As Ministers will know, Cornwall has ambitions to become the green peninsula in the UK through renewable energy and therefore warmly welcomes the Government’s proposed marine energy park. What progress has been made on that, what timetable has been set and will Ministers ensure that the park provides the vital stimulus so that the wave hub can get going off the north coast of my constituency?
Chris Huhne
My ministerial colleagues have had regular meetings on this with the green energy programme board and are making good progress. We will continue the workstream to try to accelerate our commitment to low-carbon goods and services in the UK economy. It is a high-growth opportunity, and obviously Cornwall will play an important future role in that.
Oral Answers to Questions
Debate between Chris Huhne and Andrew George
Chris Huhne
My officials are in contact with a wide range of interests and I am happy to meet, and to ensure that my officials meet, the people the hon. Lady has mentioned. We obviously want to ensure that there are no loopholes and we have done a lot. The licensing arrangement and the green deal code, as I have mentioned, will be important. The Consumer Credit Act 1974 will extend to the green deal, and the golden rule that forms part of the green deal ensures that the expected savings will always at least match the costs. The Energy Bill includes strong requirements to disclose the presence of a future charge to bill payers and the accreditation process will also allow guarantees for the work carried out, for example. We will establish an independent advice line that will also support customers seeking redress. The hon. Lady should remember that all that is in addition to the normal protections for consumers through, for example, the Consumer Protection from Unfair Trading Regulations 2008 and the Unfair Terms in Consumer Contracts Regulations 1999.
Andrew George (St Ives) (LD)
My right hon. Friend will be aware that a number of places in the country, including Cornwall, are particularly ambitious to forge ahead with the green deal. Other than the constraints on the capacity of assessors and fitters, will any other impediments be faced by those parts of the country that particularly want to embrace this great opportunity?
Chris Huhne
I am grateful for my hon. Friend’s question. We are working through literally every possible impediment, as we are in other areas of the economy in which my Department particularly wants to see a transition to a low-carbon economy, to understand best what the impediments might be and to remove them. I am absolutely confident that when it comes to the launch of the green deal in October 2012 there will be enormous opportunities for Cornwall. The only constraint is going to be making sure that there are enough people who are trained properly to accredit, assess and install the green deal. I am confident that the finance will be available and it is important that we make as much progress as we can.
Nuclear Industry Safety
Debate between Chris Huhne and Andrew GeorgeUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Chris Huhne
It is too early to assess the likely cost. I merely point out that, as far as any new nuclear programme is concerned, we are still at the stage where negotiations are going on between the regulators and the companies interested in providing new reactors, making it possible to incorporate into the design stage any changes that flow from Dr Weightman’s recommendations. That means that it will be substantially cheaper than it would have been if we were attempting to retrofit.
Andrew George (St Ives) (LD)
I congratulate the hon. Member for Newport West (Paul Flynn) on drawing the attention of the House to this report. On the alleged prematurity of drawing early conclusions from the Weightman report, will the Secretary of State reassure the House that he will keep this matter under review, given that, as the hon. Gentleman has said, this is very much a changing scenario in the Fukushima area?
Chris Huhne
There may well be longer-term implications. The key conclusions of the interim report relate to the potential choice of sites, for example, and therefore the implications for national policy statements and the new nuclear programme. We now need to look at any implications for the generic design assessments and the design of new nuclear reactors. There may also be longer-term implications for civil contingencies, as Dr Weightman points out. We will very much keep those matters under review.
Fourth Carbon Budget
Debate between Chris Huhne and Andrew George
Chris Huhne
We have every intention of ensuring security of supply, and gas will perform an important role in that regard, in the short run and in the medium run. Given the worldwide potential for the exploitation of unconventional gas from shale and other formations, it might well be the case that gas will play a long-term part in our energy mix as well, through clean coal and gas, and carbon capture and storage. I take the hon. Gentleman’s point on board, however, and we will not have stranded assets of the kind he describes. We will be introducing our proposals in the White Paper on electricity market reform.
Andrew George (St Ives) (LD)
I warmly welcome my right hon. Friend’s statement to the House today, and his commitment to ensuring that the UK will be the first country in Europe to have legally binding emissions targets beyond 2020. Further to the point raised earlier by my hon. Friend the Member for South Thanet (Laura Sandys), what can his Department do to ensure that the green growth industries are able to take full advantage of the opportunities that this statement and the Government’s policy will provide?
Chris Huhne
We are determined that there should be enormous growth opportunities for low-carbon goods and services in the UK, and I would like to highlight two things that our Department can deliver. The first is the certainty required to enable investment in the replacement of ageing power plant that we will need over the next 10 years. Ofgem has estimated a figure of £200 billion, which is roughly double the normal level of investment in the UK, so this will be important in powering the recovery over the next few years. The second is the provisions in the Energy Bill, the Second Reading of which took place last week. The green deal, which is set out in the Bill, will provide the opportunity for an enormous number of new jobs. We calculate that we will move up from the present figure of 27,000 jobs in the insulation sector to 100,000 by 2015 and that, at its peak, the policy will result in 250,000 jobs right across the industry, which will have to retrofit every home in the country. My hon. Friend is absolutely right to highlight the enormous job-creating potential for these industries, and we will keep that matter very much in the forefront of our minds.
Energy Bill [Lords]
Debate between Chris Huhne and Andrew George
Chris Huhne
I entirely agree with my hon. Friend, and I will respond to his point later if he will allow me to make a bit of progress.
Under the green deal, energy-saving packages worth thousands of pounds will be installed in millions of homes and businesses right across the country. There has never been anything quite like it. It is the most comprehensive energy-saving plan in the world. Green deal measures will be provided by trusted businesses, installed by accredited professionals, and backed up with a watertight legal framework. Customers will pay nothing up front; businesses will do that for them. Once the property has been refitted, green deal providers will get their money back from the expected savings on energy bills over the lifetime of the measures. This is the big change: payments can be made not just by the existing tenant or owner-occupier but by the new beneficiaries once the original installers have moved out and moved on, so there is a longer repayment period. That makes the whole scheme much more financeable and much more attractive.
Andrew George (St Ives) (LD)
My right hon. Friend refers to the companies that will undertake the assessments and potentially the work itself. Has he had time to reflect on the lessons from the Warm Front scheme, where large companies cleaned up all that work when a lot of it could have been undertaken efficiently by small local companies? Will he ensure that the way in which the legislation is framed does not keep those small local companies out of undertaking this important work?
Chris Huhne
My hon. Friend makes a good point. We are absolutely determined to ensure that this scheme is open to small businesses that are properly accredited and properly qualified as installers. I am sure that all of us, in all parts of the House, want not only the biggest companies but small businesses to benefit from the advantages of the green deal.
Chris Huhne
The clear idea here is to give a point at which we know people are going to be able to aim. It is not reasonable to introduce changes very rapidly when, for example, there might not be voids in property renting. We do not want to impose unnecessary costs, and it is therefore appropriate to set a date. Let us remember that the scheme does not begin until October 2012, and we want to set a date by which the private rental sector can deliver.
Andrew George
Before he took those last two interventions, my right hon. Friend had just reached the point about the memorandum of understanding between his Department and the Local Government Group. The Bill does not at present include any powers for local authorities, and some of us are concerned that if it is simply left to the private sector to generate the scheme, it might not be sufficiently targeted at the communities that need it the most. Should we not give a duty, or at least a power, to local authorities in this regard? Does the Local Government Group sign up to that kind of joint arrangement with the Government?
Chris Huhne
My hon. Friend needs to recognise that a substantial number of councils are very enthusiastic about the scheme, because of the benefits that it can bring in regard not only to energy saving but to local jobs. I personally think that we are going to see go-ahead councils trumpeting the work that they do in this area. They already have substantial powers to monitor and to ensure that this will happen.
Alongside the green deal provisions, the Bill also contains measures to enhance energy security. They include legislative changes to reduce the likelihood, duration and extent of gas supply disruption, and to protect consumers from very high wholesale prices. These new powers would sharpen the commercial incentives for energy companies to meet their contractual supply obligation during a gas supply emergency. The Bill also introduces a special administration regime for gas and electricity suppliers, which will help to maintain market stability and protect consumers.
Oral Answers to Questions
Debate between Chris Huhne and Andrew George(13 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew George (St Ives) (LD)
On the idea that there is no public subsidy for new nuclear, the Government will of course effectively have to underwrite new nuclear in respect of events that we all hope will never happen. How is the carbon floor price not effectively a back-door subsidy for new nuclear?
Chris Huhne
My hon. Friend should be aware that we are not providing underwriting funds or soft loans. In the United States, for example, the Obama Administration are proceeding with $35 billion of soft loans for the nuclear industry, but we have explicitly said that new nuclear will be built here without public subsidy. We have also said that, as Lord Stern pointed out, climate change is the greatest market failure of all time. We have to offset that market failure with a clear signal to the markets, whether through the emissions trading scheme or the carbon floor price, that low carbon is here to stay and we must accelerate it.
Cancun Climate Change Conference
Debate between Chris Huhne and Andrew George
Chris Huhne
I am very grateful for the hon. Lady’s question—I say that with some feeling—because she has hit the nail on the head. The agreements that we reached at Cancun were, in my view, reached despite the process and procedures rather than because of them. Frankly, I have never been involved in any international or national set of procedures with so little in the way of standing orders and rules of procedure designed to guide the participants towards a result. As a member of the National Union of Journalists, I think that any union chapel would despair at the lack of procedures and the lack of ability to push things through. Reform of the UN is above my pay grade, but having participated in this process I strongly hope we can move on and get to a better process, because this is a serious issue that needs it.
Andrew George (St Ives) (LD)
I warmly congratulate my right hon. Friend. What proportion of the funds going into the green climate fund and of the $100 billion by 2020 in funding for developing countries will be sourced from existing budgets that are currently available to the Department for International Development?
Chris Huhne
I can answer for the UK Government, but not for others. Some £2.9 billion will be drawn from the UK’s aid budget and that figure will rise to 0.7% of gross national income by 2013, so it will be additional to existing spending. We are also maintaining the previous Government’s commitment that the £2.9 billion will continue to account for less than 10% of overseas development assistance in every year of the spending period.
Oral Answers to Questions
Debate between Chris Huhne and Andrew George(14 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew George (St Ives) (LD)
Community organisations and charities that invested in renewable technologies have found themselves significantly disadvantaged through unexpected changes in the feed-in tariff. Will Ministers look into that and ascertain whether charities and community organisations that found themselves with a significant shortfall could be assisted?
Chris Huhne
I am very happy to deal with any specific cases that my hon. Friend raises. I ask him to write to me, please, and I shall ensure that officials advise and that we come back to him. As a ministerial team, one of the things that we are determined to do is try to ensure that we have a framework, so that when we make an offer to provide an incentive for renewable energy, investors can rely on it. We are determined to avoid some of the criticism that has been made of our EU partners, who have changed the arrangements with retrospective effect.
Annual Energy Statement
Debate between Chris Huhne and Andrew George
Andrew George (St Ives) (LD)
I warmly congratulate my right hon. Friend on his statement. Further to the question by the hon. Member for Manchester Central (Tony Lloyd), who is no longer in his place, what reassurance—indeed, guarantee—can the Secretary of State provide to the House that vulnerable households will be supported and not further impoverished as a result of the measures that will be rolled out following this statement of policy?
Chris Huhne
My hon. Friend will know that the forecasts that we are making for 2020 crucially depend, in terms of their impact on household bills, on what one thinks will happen to the price of oil and gas. If one thinks that it will basically be the same as today, there is a modest increase in the cost of policies compared with the alternative; if one takes the International Energy Agency’s view of a $100 price for a barrel of oil, for example, one sees that our policies are reducing the cost of electricity to households. However, it is absolutely crucial to ensure not only that the policy framework delivers overall lower costs but that poor households, in particular, will not bear the brunt. That is why we are looking at social price support and why, as I said to the hon. Member for Manchester Central (Tony Lloyd), it is absolutely crucial to target our energy efficiency measures on fuel-poor households so that we can deal with the cause, not merely with the symptoms.