Independent Review of Net Zero

Chris Skidmore Excerpts

Thursday 9th February 2023 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

I beg to move,

That this House has considered the Independent Review of Net Zero.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, and should declare that I am the chair of the independent review of net zero that we are discussing. I thank the Backbench Committee and its Chair for agreeing to this debate. We had an excellent debate in the other place, led by Baroness Hayman, on the recommendations in the “Mission Zero” report, which was published on 13 January. Members may recall that the review was commissioned by the previous Administration, and the previous Prime Minister, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), in September 2022. The review’s remit was to allow us to understand how we can transition to net zero in a more affordable, efficient manner that is pro-business and pro-growth.

Having been appointed chair of the review, I undertook what I understand is perhaps the largest ever engagement exercise specifically on net zero conducted in Government. We received 1,800 written responses to our consultation. I held 52 roundtables, virtually and in person. I toured every region of England and every devolved nation of the UK, and spoke in person to around 1,000 people to understand directly the challenges and opportunities of energy transition for the UK. In that consultation, the message that I heard from the overwhelming majority of respondents was that when it comes to the opportunities that net zero and energy transition can bring to the UK, Westminster, Whitehall and Government are falling behind the curve. Thousands of infrastructure projects are ready to take place, and thousands of businesses see the opportunity in net zero.

The opportunities are not just national; 2022 marked a tipping point in international opportunities for green technology. First, Russia’s illegal war in Ukraine woke countries up to their dependency on foreign-owned gas and oil. We have to be able to provide domestic sources of energy in future. That is why interest in renewable and clean technologies has escalated. Not least, as the report was being prepared, the US passed its Inflation Reduction Act, which provides for $369 billion of investment in green and climate technologies for the future, and sets out a clear direction of travel, and a programmatic approach to investing in carbon capture, utilisation and storage technology, hydrogen, renewable power and new nuclear power. At the same time, the European Union has taken forward its “Fit for 55” programme, and has provided further detail of how it will invest up to €1 trillion in the European green deal.

The review comes at a time when we are at a crossroads. On the one hand, we could continue on our trajectory as leaders on climate policy. We were the first G7 country to sign net zero into law. We could carry on showing leadership, as the only major industrial nation that has been able to reduce its emissions by 40%. Or we could take the other turning—a turning that is not zero and would see us resile from our climate commitments, and from the investments that we have made. Ultimately, the choice of not zero will cost more than continuing in the direction of working towards net zero. That is the choice. I was the Minister at the Dispatch Box 43 months ago, taking forward legislation to ensure we could be the first G7 country to sign net zero into law. I thank the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) for his commitment and congratulate him on his new role. I understand that this is probably his first debate as a Minister in the new Department for Energy Security and Net Zero. It may even be the first debate that the new Department responds to. I am delighted that we have a new Department with “Net Zero” in its title. I hope he enjoys reading the “Mission Zero” report. I am sorry it is 340 pages. I am not holding him to having read every page for this debate, but hopefully it will form part of his weekend box.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

Recess reading.

[Chris Skidmore]

It needs to be sooner than that. Basically, we have an opportunity now for the Government to look at the recommendations in the report.

The report is divided into two sections. The first part is a new narrative on net zero. As the chair of the net zero review team, I put on record my thanks to my fantastic team of 22 dedicated civil servants who were drawn from across all Departments. I can see one in the Box now, who is working with the Minister. If it was not for the team, we would not have produced a report of such quality. We set out a new narrative on net zero. It is not some kind of eco-project or religion, and I do not stand here thinking that I want the imposition from the centre of top-down policies. I recognise that the challenge we face is to ensure that everyone in society is able to see the opportunities of the energy transition for the future. There will be challenges, and the report is open about those challenges and costs. At the same time, there is an international opportunity: we are now in a global net zero race. We can either continue to lead or we will follow, and the cost of following will always be greater than the opportunity of showing first mover advantage. There are no free rider opportunities here.

[Jim Shannon (Strangford) (DUP)]

The right hon. Gentleman said that he had been to all regions of the United Kingdom of Great Britain and Northern Ireland to ascertain opinions for the independent review. Can he tell us what the opinions were in Northern Ireland? Were they similar to everywhere else, so we can go forward collectively? If we can do that, we can achieve our goals. We cannot achieve them if we are divided.

[Chris Skidmore]

I had a fascinating opportunity to visit Belfast to hold two separate evidence roundtables. The first was with Belfast City Council, which gave me the public sector perspective on the challenges of decarbonisation and the public estate in Northern Ireland. The second roundtable was with private business and industry, with the Belfast chamber of trade and commerce. What I took from that opportunity to speak specifically about Northern Ireland’s concerns and opportunities was that there are challenges in Northern Ireland. In particular, it will probably achieve net zero later than 2050. On our overall UK net zero target, that is the case for both Northern Ireland and Wales. For Scotland, it will be a bit sooner, in 2045, as I am sure the Minister knows given that his constituency is at the forefront of bringing forward some of the green opportunities that will allow Scotland to go further and faster.

[Andrew Bowie]

indicated assent.

[Chris Skidmore]

A really important part of the report, which I will come on to in the moment, is taking a place-based approach to net zero. We will achieve net zero in a more affordable and efficient way if we allow local communities, whether they are cities or rural areas, the opportunity to be more empowered to understand how to achieve net zero in a way that suits their local communities.

In Northern Ireland, I listened to concerns about how agriculture could be decarbonised. Northern Ireland wants a whole raft of new biomethane plants. At the same time, there is a new fleet of hydrogen buses in Belfast—it is really pushing forward on fully decarbonising public transport. There was a fascinating discussion on how Northern Ireland wanted to be a leader on green hydrogen. It may not have much offshore wind, but there is a huge opportunity for onshore wind and for the use of hydrogen to drive a whole new economy. Picking up all the pieces that come together that demonstrate the opportunities in every region is exactly what the report tries to reflect.

The report sets out the new narrative that net zero is the primary economic opportunity of this century, but if we do not invest now—that investment is primarily private sector investment, but it needs certainty, clarity, consistency and continuity from the Government on policy—we will turn our backs on a potential £1 trillion of investment by 2030 and turn our backs on up to 480,000 new jobs by 2035. In a way, the net zero review is a bit of a misnomer. I was keen to look at the targets that have been set and to understand how we will realistically meet them. The worst thing one can do in politics is overpromise and underdeliver; it completely undermines confidence in the ability to deliver on our climate commitments and the energy transition.

[Wera Hobhouse (Bath) (LD)]

First, I congratulate the right hon. Gentleman on the report. It is very welcome, and was very ably chaired and put together by him, so I put my thanks to him on record. On delivery, is it not the case that some kind of delivery authority is needed—a body that combines all the quite difficult and complex strands we face on net zero?

[Chris Skidmore]

Yes. I thank the hon. Member for that point. One of the key recommendations of the report is that we have an office for net zero delivery, which will be able to join all Government Departments to ensure they speak with one voice on the policy commitments that are needed. We have the new Department for Energy Security and Net Zero. That is fantastic news. I hope it will be given the powers and the mandate to enforce an understanding of what we need to do to achieve net zero across all Departments, because it is certain that Departments are falling behind.

On net zero, I am a realist. I understand that on delivery we must be able to provide public confidence in our ability to achieve some of the ambitions that at the moment are just words on paper. The document is very much about delivery and implementation. I created a structure of six pillars to inform the report. The pillars strengthen the foundations of the pathway towards net zero by 2050, but also refer to some sub-commitments such as decarbonising power supply by 2035 and looking at our electric vehicle mandate by 2030. How will we achieve those targets if we do not get the basic under-the-bonnet issues right, such as infrastructure or grid? Delays in the planning system mean that current targets are way off beam and will not be achieved. Unless we are realistic now about what we need to do to unblock those problems and get, as I called it during the review, the debris off the tracks, we will not be able to reach our commitments in time.

Making decisions now is absolutely critical for this Administration. I include 129 recommendations in the report, but I set out 25 key recommendations for 2025, recognising that this Administration probably has about 300 legislative days left in Parliament until October 2024. That is not to say I would not urge them to take on all 129 recommendations. I understand that the Government will respond to the report by the end of March. Coincidentally, as I was taking forward the work on the review, the Government decided not to challenge the High Court judgment that their net zero strategy was illegal and they have agreed, in secondary legislation, to respond to the High Court judgment and the Committee on Climate Change by 31 March. I hope that their response to the judgment will also form part of the response to the “Mission Zero” report, but the more we can do now, the more we will reduce the costs of the transition overall. The report sets out that if we delay action on net zero by 10 years, we add on 23 base points of GDP to our public debt.

There are huge challenges to achieving net zero. I recognise that, which is why we set out in pillar 1 that securing net zero must be a priority—understanding how we will be able to have in place the materials, supply chains and skills to ensure we can deliver on time. The sooner we act, the sooner we will be able to achieve net zero in an affordable and efficient manner. Other pillars cover powering net zero. I asked each sector how it could achieve net zero in a better way. A third pillar looks at net zero and the economy, and how we could work with those hard-to-abate sectors, whether energy intensives or agriculture, to make sure they can also achieve net zero on track.

[Robert Courts (Witney) (Con)]

I am very grateful indeed for my right hon. Friend’s report. The House will remember my interest: I was the aviation Minister responsible for the jet zero strategy. My right hon. Friend referred to hard-to-decarbonise sectors, which include aviation. He also referred to economic opportunities, and sustainable aviation fuel springs to mind. Would he like to comment on that sector? If sustainable aviation fuel can be provided, if we have the feedstocks and if we provide price stability, there will be an opportunity for the UK economy, as well as an opportunity to decarbonise that crucial yet hard-to-decarbonise sector. Does he think it as important as I do?

[Chris Skidmore]

My hon. Friend’s point is very well made. Our mandate for 10% SAF by 2030 is one of our greatest opportunities to decarbonise in the short term to meet our 2030 nationally determined contribution. If we are to do that, we need to build out the supply chain and take advantage of opportunities to use biogenetic materials and waste materials for SAF, so we need the processing plants in place. My point about what happens under the bonnet is vital to SAF. That is why a circular economy is one of the 10 missions in “Mission Zero”.

I have set out for the Government what I believe needs to happen now in order to unblock the immediate challenges and keep net zero on track, but if as politicians we are to succeed—both in government and as Members of this House—in delivering our long-term net zero goal over a 28-year period, we need to retain the cross-party consensus that it is the right thing to do not just to tackle the climate crisis, but to ensure the future of the British economy and to ensure that the UK plays a leading role in future transition.

I have set out ten 10-year missions, because I believe that tackling energy transition, just like tackling climate change, requires a long-term vision of programmatic certainty, ensuring that businesses and investors have the confidence to invest and to grow, because they know that things will not continue on a start-stop, chop-and-change, project-by-project basis. Germany has a 10-year plan for hydrogen and the US has just set out 10-year visions for its climate technology programmes as part of its Inflation Reduction Act. We, too, need 10-year missions. The ten 10-year missions that our report sets out would start in 2025, after we have got the basics right, and be carried through to 2035.

In writing the report, I took my role as independent chair very seriously. I nearly became an independent MP on the back of the fracking no-confidence vote that happened during the review. I had meetings with every political party, including the SNP and the Liberal Democrats, and several with the Labour party. Whoever wins the next general election and whoever forms the next Administration come 2024, I want them to see the report as a road map not just to delivering net zero, but to delivering it for the benefit of the British people and the British economy.

--- Later in debate ---

[Chris Skidmore]

I thank the Backbench Business Committee again for granting this debate and all Members who have spoken in it. The debate has demonstrated that, while Members may disagree on some of the contents of the report and its recommendations, as should be the case, the overall narrative of the review—that net zero is an opportunity and not a cost, and that we must seize this opportunity now and not delay—is overwhelmingly welcomed by all parties in the House. I stand ready to brief any political party that is willing to continue to look closely at the recommendations in the report.

The hon. Member for Warwick and Leamington (Matt Western) spoke about the Stern review, and it would be an honour if this report was seen in the same bracket in terms of its ability to influence future policy innovation.

Mention was made of the length of the report and the fact that it was done in three months. I am grateful for the incredible work that was done by the wider net zero review team in Government. Three months is 1% of our journey to net zero. We do not have time to waste. It has been 43 months since I, as the Minister, signed net zero into law. There are 323 months left until we reach net zero by 2050. The net zero clock is ticking. This year alone, that window is vanishing in front of our eyes. To borrow the analogy used by the hon. Member for Bath (Wera Hobhouse), the bus is already at the stop and is about to depart, and we have to decide now whether we want to get on it or leave it behind. We need to look at this change this year and move as soon as possible.

When John F. Kennedy introduced the moon landing mission in 1962, he said that we do these things

“not because they are easy, but because they are hard”.

It will be hard to get to net zero, but let us all work together across parties to recognise the scale of the challenge. This challenge must reflect the whole of society. As my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) said, we must not leave any community behind. When it comes to net zero, we should not impose this on communities, but work with them and the wealth of views and opinions on how we can deliver on decarbonisation for the future. I hope that this report is not just the beginning but is a blueprint for a new Department on how it needs to move forward as soon as possible.

Question put and agreed to.

Resolved,

That this House has considered the Independent Review of Net Zero.

[Matt Western (Warwick and Leamington) (Lab)]

On a point of order, Mr Deputy Speaker. Thank you for granting this point of order. I would welcome your advice. I wrote in both December and January to the Secretary of State for Health and Social Care to press him on the status and costs of the Rosalind Franklin laboratory, otherwise known as the mega-lab, in my constituency. Three weeks ago, it was announced that it would be closing, with a loss of 670 highly-skilled jobs, with four weeks’ notice. I wrote to the Under-Secretary of State for Health and Social Care, the hon. Member for Lewes (Maria Caulfield), two weeks ago, and she told me to write to the UK Health Security Agency. I am not sure what I should do now, but surely the responsible Department should reply to me directly.