Carbon Budget Delivery Plan

Chris McDonald Excerpts

Wednesday 12th November 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

I can say with absolute sincerity that it is a real pleasure to serve under your chairmanship, Sir John. I could not have wished for a more benevolent Chair for my first outing at the Dispatch Box here in Westminster Hall. I apologise to Members who may have been expecting the Minister for Climate, my hon. Friend the Member for Leeds North West (Katie White), but she is attending the COP. I do hope that I am not too mean a substitute.

I have thoroughly enjoyed the debate. We all recognise how important the issue is. For me, it has been a real pleasure to sit and listen attentively to colleagues from throughout the House with such expertise. I shall endeavour to respond to many of the remarks that have been made, although I feel slightly sorry for the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith). Everyone else in the Chamber challenged the Government for being too fast or too slow, while ultimately working towards the same objective, but he occupied a slightly lonely position. That is the position his party has chosen to take.

An investment in fighting the climate crisis, and in net zero, is fundamentally an investment for our future generations. The economic opportunity before us can improve the lives of working people not only in the future but here and now, and our policies are intended to do precisely that. We want to tackle the climate crisis while ensuring that we crowd-in private sector investment. In Prime Minister’s questions earlier, my right hon. and learned Friend the Prime Minister mentioned the £33 billon investment from SSE; the pursuit of net zero is clearly the pursuit of economic prosperity. Members have already mentioned the fact that the Confederation of British Industry says the green economy is growing three times faster than the rest of the economy, as are the good jobs provided by the green energy sector around the country.

Carbon budgets were a significant part of the debate. Ten years ago, the world was on course for 4° of warming, which would have posed a severe threat to human life. Today, through international action, we are on course for 2.6°, or below 2° if countries meet their full climate commitments. I was asked earlier about the Government’s focus at COP; fundamentally, our focus is multilateralism to get the world working together again. Of course, that is about ensuring that Britain retains its place as a climate leader, and that we do so in a way that supports communities and families through the UK’s transition.

I was pleased to hear the hon. Member for Strangford (Jim Shannon), who is no longer in his place, bring home the importance of thinking about the poorest in our society. I want to reassure him, and the House, that they are very much in my mind, and the minds of all Ministers, as we take forward these issues. That is why we are so concerned about getting bills down.

The previous Government left us an energy system that was tied to the international price of gas, which has left households with gas prices 75% higher than they were the year before Russia’s invasion of Ukraine. We have decided not to leave our future in the hands of international dictators and petrostates, but to return to energy security. That is what clean power provides us, and that is why we set up Great British Energy, which invests in the necessary kinds of projects. It also invests in community energy projects, which were mentioned by many Members, including my hon. Friend the Member for Sheffield Central.

[Barry Gardiner]

Does the Minister recognise that the policy costs mentioned by the shadow Minister are a regressive tax, and that it may be better to put those on to general taxation? Of course, the energy company obligations and other policy costs were introduced by the Conservative Government. Will the Minister give consideration to where they may best lie to ensure that what he said in response to the hon. Member for Strangford (Jim Shannon) is realised?

[Chris McDonald]

Matters of tax are left to the Chancellor, particularly this close to the Budget.

The Government’s approach to the transition is about incentives rather than punishments—it is about carrots rather than sticks. The economics are working in the direction of net zero, and net zero is no longer a political discussion, wherever the Opposition think they are. Net zero is an economic discussion, and one in which industry has been quite clear about where the benefits lie. As industry is decarbonising, it is also digitising, automating and becoming more productive. That is what will fundamentally drive down costs for consumers and provide good jobs.

Essentially, we have a choice ahead of us about the type of country that we become. We can either seize this opportunity and capture international investment, which is going two to one into green energy versus fossil fuel energy, or take the regressive approach of the Opposition, which leaves us at the mercy of petrostates.