Oral Answers to Questions Debate
Full Debate: Read Full DebateChris Skidmore
Main Page: Chris Skidmore (Conservative - Kingswood)Department Debates - View all Chris Skidmore's debates with the Department for Business, Energy and Industrial Strategy
(5 years, 3 months ago)
Commons ChamberThe smart export guarantee will pave the way to a smarter, more flexible energy system and ensure small-scale low-carbon generators are paid for the electricity they export to the grid. Yesterday, we published a consultation on the SEG draft licence conditions. We intend to start the legislative process for the smart export guarantee before the summer recess. There are already encouraging signals from the market and suppliers are beginning to voluntarily offer smart export tariffs.
I think a lot of people in the sector will feel that the delay is not acceptable. Does the Minister agree that the Government must mandate a fair minimum floor price to prevent suppliers from taking advantage of solar households and other small-scale solar generators? The energy price cap is there to ensure suppliers sell power at a fair price. We need a similar mechanism to ensure they purchase at a fair price, too.
That will be part of the consultation. We will set out our final proposals for the guarantee as soon as possible—as I said, before the summer recess. In the meantime, the right signals are already emerging. Energy suppliers are voluntarily bringing forward smart export tariffs.
As we have heard, rather than publish a smart export guarantee that actually works, the Tories plan to further stifle the industry by hiking VAT on solar. Is it not time that the Minister’s Government stopped the Tory war on renewables and started taking climate change seriously by following the leadership of Scotland’s First Minister and declaring a climate emergency?
The hon. Gentleman fails to mention the success story that is solar photovoltaic. Over the past eight years since May 2010, under the coalition Government and this Government, 99% of capacity has been deployed. That is 49% of the total investment in the EU. We have installed more than twice as much solar capacity as any other European country—more than Germany, France and Australia combined. That is something he should welcome rather than talk down.
The Minister has his head in the sand over climate change. Last week, the Business, Energy and Industrial Strategy Committee concluded that the UK could not credibly adopt a net zero emissions target without greater investment in new technologies. If the Tories will not act, when will they devolve the powers to Scotland, so the Scottish Government can show them how to do it?
On the net zero target, we will obviously wait on the Committee on Climate Change report, which will be published on Thursday 2 May. I am sure the hon. Gentleman welcomes the Government’s success story on solar capacity and renewables. In comparison with the early 1990s, emissions have come down by 40% while the economy grew by 72%. There is more to do—there will always be more to do—but we are on the right track and doing the right thing. Solar capacity has reached 30 GW, compared with an estimate of 10 GW to 12 GW. We continue to ensure we exceed our targets.
The UK has many years of experience regulating the onshore oil and gas industry, and measures are in place to minimise methane emissions. The Environment Agency issues and robustly enforces legally binding environmental permits regulating methane emissions. Under these permits, operators must have an agreed gas management plan to detect leaks and make repairs over the lifetime of site operations. They must also monitor emissions before and during shale gas operations.
The Minister will know that NASA and satellite data show that 5% of the methane from fracking is leaked through fugitive emissions and that methane is 85 times worse than carbon dioxide for global warming, which makes fracking worse than coal for climate change. Will he meet me to discuss my fracking Bill, instead of listening to Jim Ratcliffe, the richest man in Britain, from Ineos, who is hellbent on Brexit to avoid the environmental controls on fracking currently imposed by the European Union?
I would be happy to meet the hon. Gentleman and I would emphasise his comment about feeding in space data research. It highlights the importance of the UK space industry in looking at environmental issues. The Government also have a grant funding and environmental monitoring programme led by the British Geological Survey in respect of shale gas sites. All the information for that is publicly available. I also note that the MacKay-Stone 2013 report concluded that the carbon footprint of UK shale gas would be much less than that of coal and comparable to that of imported liquefied natural gas.
There is no fracking in Scotland, there has been no fracking in Scotland and, under the SNP, there will be no fracking in Scotland. If we going to be serious about the climate emergency, there should not be fracking anywhere in the United Kingdom, so will the UK finally follow Scotland’s lead and rule out fracking on these islands?
Unfortunately, residents and households in Scotland still need to use gas, given that 85% of UK households use gas for heating, and it is right that we look at opportunities to meet our energy demand. Some 47% of gas was imported in 2017, but if we do not take action, this could rise to 72%. We want to increase our opportunities for generating electricity through renewables. In quarter 3 of 2018, just 2.5% of electricity was generated by coal, compared with 40% in 2010, so we are going in the right direction, but we cannot forget that people will be using gas in Scotland.
As announced in the spring statement, I have invited Professor Sir Adrian Smith to provide independent advice on potential future funding schemes in the context of the UK’s future ambitions for European and international collaboration on science and innovation. I also look forward to welcoming delegations from over 50 countries to the EUREKA global innovation summit in Manchester this May.
Our world-class scientists collaborate across the world, with the EU and beyond, and that collaboration is vital for further research and innovation in this country. Horizon 2020 is a ready-made platform for that collaboration. Will my hon. Friend commit to joining the Horizon 2020 programme as we leave the EU?
The Government have committed to guaranteeing all existing Horizon 2020 projects before Brexit. That was issued in August 2016 and demonstrated the Government’s commitment early on to protecting our scientific partnerships. We then had the underwrite extension in July 2018 which said that even once we had left the European Union—for two years up until December 2020—we would commit to funding those projects for the lifetime of them. We are now moving into negotiations on Horizon Europe, which is the successor scheme to Horizon 2020. I took part in the EU Competitiveness Council in February—I hope also to attend on 28 May—and it is our ambition to associate into Horizon Europe. On investment, my hon. Friend will be well aware that through our world-class universities we put in £4 billion and got back £5.7 billion in investment.
Even at the height of the cold war, there was a surprising level of collaboration between Russian and UK nuclear physicists. Will the Minister assure me that there will be similar collaboration when it comes to the skills that we have in the UK—particularly at Dounreay, in my constituency—in nuclear decommissioning, which is an industry that we could export and which could make a lot of money for the UK?
I entirely agree, and I pay tribute to the UK nuclear decommissioning sector. As science Minister, I have seen the innovation that is being developed. I recently announced £93 million for a robotics for hazardous environments programme involving about seven universities across the UK, which are looking into how we can use robotics more effectively to help nuclear decommissioning. I am delighted that that is now being transferred to Fukushima in Japan. The Government are ensuring that scientific collaboration is international. We will publish an international research and innovation strategy shortly, and I shall welcome any opportunities, involving any countries, to continue that work.
Tackling climate change is a cross-Government priority. Just last week my right hon. Friend the Minister for Energy and Clean Growth made an oral statement outlining the Government’s climate change priorities. Ministers in the Departments for Business, Energy and Industrial Strategy and for Environment, Food and Rural Affairs meet regularly to discuss matters including waste management, agriculture, forestry, resource efficiency and the environment Bill. We will host the upcoming Inter-Ministerial Group on Clean Growth to discuss the report from the Committee on Climate Change and the UK’s offer to host the United Nations Conference of the Parties in 2020.
After the Government’s refusal to declare a climate emergency, may I ask the Minister what he has personally taken away from the visit of 16-year-old Greta Thunberg and her most powerful advocacy on the need for urgent action?
I think we will be having a thorough debate on this issue of climate change emergency in the Opposition day debate tomorrow. When it comes to my personal role as the Minister with responsibility for science, innovation and research, I entirely agree that we need to be making more investment in climate change technology in order to reach our target of 2.4% of GDP on research and development. We have already announced our missions in relation to clean growth. I absolutely believe we should be listening to the experts—that includes the scientists—and learning from climate science, wherever that may be, to make sure we can reduce our emissions.
Since the Rio summit in 1992, the UK has actually decarbonised more than any other G7 economy, while growing our economy the most at the same time. However, we need to do more, which is why I am looking forward to the Committee on Climate Change report on Thursday. If it does indeed recommend a net zero target, will the Minister commit to ensuring that that is something the Government will very seriously consider bringing into law at the first opportunity?
My hon. Friend is absolutely right to highlight the achievements that have been made in recent years, but it is important that we redouble our efforts. The Committee on Climate Change report, which will be published on Thursday, was commissioned by the Government, and the Government will be taking actions on the back of its recommendations. It is important that we look to continue our actions, but it is also important that we do so with our international partners. We have the UN summit taking place in September and future COPs, including the one we would like to host in 2020.
I would not call listening to local communities and reflecting on the need to create sustainable communities locally “ideological opposition”. We need to work with everybody—all citizens. There has been talk of citizens’ committees, so why not ensure that local communities are able to reflect on the benefits of renewable energy in their communities, and begin such dialogues with them, rather than call them ideological opponents of renewables? I do not think that is very fair on those communities.
I would like to send the thoughts of Opposition Members to the Minister for Energy and Clean Growth. I welcome this Minister to his place and look forward to our exchanges over the Dispatch Box.
In 2016, the UK’s carbon emissions fell at 6% a year, and in 2017, emissions fell at 3% a year, but in 2018, the figure was 2%—just a 2% fall—so at a time when action should be ramping up to tackle the climate emergency, can the Minister explain why the UK’s progress is slowing down?
I do not recognise that. The fact is that we have met our first and second carbon budgets over the 2008 to 2012 and 2013 to 2017 periods. We have managed to reach those targets. Turnover for clean business was up 7% in 2017, contributing £44.5 billion to the economy. When it comes to ensuring that we look at our clean growth strategy, we have set out quite clearly opportunities to halve the energy use of new buildings by 2030 and to establish the world’s first net zero carbon industrial cluster by 2040. By comparison with our European neighbours, we are racing ahead—we are leaders in this field—and we want to make sure that we can continue to do so.
With respect, the Minister is alluding to the UK’s emissions cuts since 2010, when the UK still benefited from policies put in place by the previous Labour Government—policies that the Conservatives have now scrapped. Secondly, it is irrelevant, quite frankly, to climate physics whether the UK is doing slightly better or worse than other countries that are also failing to take the necessary action.
I ask this in good faith and in all seriousness: does the Minister accept that the UK’s stalling progress is related to banning—in effect—onshore wind, reducing almost all support for solar power, scrapping the zero-carbon homes standard and selling off the Green Investment Bank? Will he be honest about the challenge, and work with Labour and Members right across this House on turning this around, so that we can truly tackle climate change and properly seize the economic opportunities within the green economy?
It is important to recognise that 56% of electricity power generation is now based around low-carbon economy generation and that 33% of that is from renewables, up from 7% in 2010. Coal represents 2.5% of our electricity generation, and last weekend the UK went 90 hours without any coal electricity generation for the first time since the industrial revolution. As we are now involved in the fourth industrial revolution, we want to ensure that we continue to power through and that we can adopt more renewables for the future.
Last year, renewable generation provided a third of our electricity and, as I have stated, over the Easter weekend we went 90 hours without any coal generation. Both were new records. Our next contracts for difference allocation round will open next month. We are driving down the cost of clean technologies and investing £2.5 billion in low-carbon innovation.
Far from leading the way, the UK has plummeted to the bottom of SolarPower Europe’s league table of 20 world markets in solar, and we are one of the few EU countries not providing any support at all to solar power. Not only has solar had all support removed prematurely but it is being hit by wave after wave of fresh damage, making it harder to meet our climate targets. Will the Secretary of State or the Minister meet me to discuss the damaging net effect of the Government’s policies on solar and on the transition to clean energy?
I am sure that the Minister for Energy and Climate Change will be happy to meet the hon. Lady, but as I have stated, photovoltaics is a UK success story. We have seen 830,000 installations, and I have mentioned the smart export guarantee tariff that is being designed. We want to ensure that this will be able to generate profit for those companies, and that we continue to be able to lead Europe on this.
Eliminating net carbon emissions by 2050 is both ambitious and achievable. Does my hon. Friend agree that the progress made over the past decade demonstrates that, where there is the political will, it is possible to reduce emissions while supporting economic prosperity?
Absolutely. We need to deliver ambitious reductions in emissions, considering our long-term targets in the light of the latest science. That is why we have asked the Committee on Climate Change for advice on our long-term targets, including that net zero target. The committee’s advice will be published this Thursday, and we will consider it carefully.
Of course we have a record to be proud of when it comes to renewable energy, but we should always continue to be as ambitious as we have been. How significant has the UK’s contribution been to ensuring that Scotland meets its renewable targets?
The Government are firmly committed to the renewables industry, and Scotland has benefited proportionately more than the rest of the United Kingdom under existing policies. It will continue to benefit from future investment. Fifteen Scottish projects have been awarded contracts for difference with a total capacity of 2.57 GW, and the Government and numerous other public sector organisations have provided £15 million to fund the European Marine Energy Centre in Orkney, which is one of the world’s leading wave and tidal demonstration centres.
The truth of the matter right now is that, far from expanding the source of renewables, the Government have narrowed the use of renewable energy in recent years. Of course we should strongly support the development of offshore wind, but the Minister must acknowledge that marine and tidal power has been almost strangled at birth by the Government’s indifference and even active hostility, and that onshore wind and solar PV have been severely hampered by adverse Government decisions on support and planning. On lack of support, will the Minister answer a specific question? Why is he sanctioning a VAT rate rise to 20% on solar power while at the same time maintaining a rate of just 5% on coal and fuel oil?
The industry has invested more than £92 billion in clean energy since 2010. As I have stated, renewables now generate 33% of our electricity, and 52.8% comes from low-carbon sources. As for the VAT issue, we are working with organisations and companies to ensure that we can get the best possible deal when it comes to renewables. I am sure that my right hon. Friend the Minister for Energy and Clean Growth will be happy to discuss the matter with the hon. Gentleman in further detail, but we are committed to ensuring that we have a wide range of renewables, including marine energy and offshore and onshore wind, to make sure that we can continue to drive up our renewable capacity.
The hon. Member for Southampton, Test (Dr Whitehead) also reflected on that, and it is vital that renewables remain an important part of our energy generation mix. Our clean growth and industrial strategies set out how we will build progress in all such areas, but I am sure that the Minister for Energy and Clean Growth will be happy to meet my hon. Friend the Member for Eddisbury (Antoinette Sandbach) to discuss the issue.
Thank you, Mr Speaker.
Yesterday, the Princess Royal helped to mark a significant milestone in the exploration of deep geothermal energy in Cornwall, as the deepest and hottest hole on the UK mainland has been successfully drilled. Will my right hon. Friend the Secretary of State meet me to discuss what more the Government can do to support this potentially scalable new source of renewable energy?
I congratulate my hon. Friend’s constituents on the work they have done on geothermal energy, which is an exciting form of renewable energy. I am going to Cornwall on 24 May, so I will see whether I can meet my hon. Friend. I know that the University of Exeter is involved in the project, and I would be keen to pursue the matter further.
In North Devon, we are proudly playing our role in clean energy generation with two major wind farms. Does the Minister agree that, to ensure our security of supply and to get the best climate change outcomes, we need a mix of clean energy generation?
Absolutely. It is important that we put that mix in place. We have already heard from my hon. Friend the Member for Truro and Falmouth (Sarah Newton) about looking at other forms of renewables. There is also carbon capture and storage. We need to ensure that we look at new technologies to be able to deliver a low-carbon future.
The enterprise finance guarantee scheme and its continued use by the Royal Bank of Scotland is still causing controversy. Even this week, we have seen discussions from the hon. Member for Thirsk and Malton (Kevin Hollinrake) around the use of debt. Will the Minister, or the Department, discuss with the Treasury how this scheme and its legacy are now operating?
I entirely sympathise with the hon. Gentleman’s frustration on this point. I hope that he also noticed when it came to the London marathon this weekend—congratulations to all hon. Members from all parts of the House who took part in that marathon—that the water was in bottles made not of plastic, but of compostable seaweed. As a science Minister, I can say that a key issue is looking at what we can do to develop alternative forms of plastic, but we have to work with local authorities and supermarkets to make that happen.
I know—from chairing the all-party parliamentary group for small and micro-business, and from talking with west Oxfordshire businesses—that one of the major challenges that small organisations face is finding sufficient people of the right skills to grow their businesses. What are Ministers doing to provide a national strategy to ensure that our young people have the skills they need for the future?