Making Britain a Clean Energy Superpower

Claire Coutinho Excerpts

Thursday 9th November 2023 Commons Chamber

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. Throughout history, economies have succeeded when they can source enough cheap and secure energy. Now, as we face a new challenge—the global challenge of climate change—it is important that we source enough clean energy too. We have been a coal superpower and an oil superpower; if the Opposition are looking for a clean energy superpower, they should look no further. Britain today is a clean energy superpower, and our plans will enable us to go much further.

While the Labour party never ceases to talk this country down, I am proud that we are leading the world in this great energy challenge. In the first quarter of this year, 48% of our power came from renewables, up from just 7% in 2010. We are a world leader in offshore wind. We have increased our country’s renewable energy capacity fivefold since 2010—more than any other comparable Government. We are building new nuclear for the first time since Margaret Thatcher’s Government, and this brilliant innovation nation is leading the world in new technologies like small modular nuclear reactors and fusion energy. As recently as 2012, coal was generating 40% of UK electricity, but we are now on course to be one of the first major economies with power that is coal-free.

This work led by the Conservatives is dramatically reducing our greenhouse gas emissions. We have had the fastest reduction in emissions of any major economy, down almost 50% since 1990. Meanwhile France is down 23%, the US has not changed at all, and China has increased its emissions by 300%. And we are not stopping here. Which is the major economy with the most ambitious target to cut emissions by 2030? Is it the US, at 40%? Is it the EU, at 55%? No, it is the United Kingdom at 68%.

[Jim Shannon (Strangford) (DUP)]

I am very conscious that the net zero targets are set for the United Kingdom, but unfortunately Northern Ireland cannot participate nor can we add our physical support to achieving those targets, because the contracts for difference scheme is not in place in Northern Ireland. I have spoken to our Ministers about this. Will the Secretary of State also look at this on behalf of all the constituents in Northern Ireland who want to contribute to achieving the net zero targets and be part of the contracts for difference scheme?

[Claire Coutinho]

I will happily look at that.

The UK was the first major economy to set a legally binding date for net zero. Our ambitions for 2030 are ahead of those of our peers and we have the plans in place to meet them. In fact, we have met every single one of our stretching targets to reduce carbon emissions, thanks in no small part to our clean energy success. Labour seems to have conveniently forgotten about the shameful state of our renewables sector when it left office. Just 7% of our power came from renewables in 2010; today, thanks to the actions of the Conservatives, that figure stands at near 50%. Never forget that it was the right hon. Member for Doncaster North (Edward Miliband) who described the idea of the UK getting to 40% renewables as “pie in the sky”.

[Edward Miliband (Doncaster North) (Lab)]

I had to correct the right hon. Lady’s predecessor on the point she has just repeated. Her mistake is quite basic, confusing electricity and energy. The Guido Fawkes blog—not an institution I often praise—pointed this out when her predecessor made this mistake. What I actually said—it comes from David Laws’ memoirs—was that it was pie in the sky to say we could have 40% of our energy provided by renewables. Currently, the figure is 18%. The Secy of State’s remark is inaccurate and wrong, and I would be grateful if she withdrew it.

[Claire Coutinho]

I will happily go and look at that, and take that point on board, but I will say that it sticks with the trend of the right hon. Gentleman talking our energy and power down.

[Edward Miliband]

I will read from David Laws’ memoirs. During the coalition talks, I said,

“all this stuff about getting 40% of energy production”—

energy production—

“from renewables by 2020 is just pie in the sky.”

Energy production from renewables is currently just 18%. I would be grateful if the right hon. Lady corrected the record.

[Claire Coutinho]

As I said, I will happily look at that, but the right hon. Gentleman has made comments about nuclear—

[Edward Miliband]

I ask the Secretary of State for the third time. She claims that I said that it was “pie in the sky” that 40% of our electricity could come from renewables. I did not say that, and I have pointed out to her the exact quote, where I talk about 40% of energy coming from renewables. When one has said something inaccurate about another hon. Member in the House, the right thing to do is not to just keep reading the Conservative campaign headquarters lines, but to correct the record.

[Claire Coutinho]

As I said, I am happy to do the right hon. Gentleman the courtesy of withdrawing on this occasion, but I would also suggest that he correct the record himself about the fact that he said we needed no new nuclear in the past.

Now that I am allowed to move on, let me say that energy security means national security, and that means powering Britain from Britain and making sure we never have to worry again about generating enough power to keep the lights on or heat our homes. We saw what happened last year when Putin weaponised energy, and the full impact his illegal war in Ukraine had on energy bills for households around the world. I am proud that the Government stepped in with an unprecedented level of support, paying around half of people’s energy bills. With continued global instability, I know that households are anxious about the coming winter. That is why we have the energy price guarantee until April 2024 and why we will always protect the most vulnerable in society with targeted support such as the winter fuel payment, cost of living payments and the warm home discount.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

The Secretary of State is talking about energy bills, and thousands of my constituents are really struggling to pay their energy bills and are petrified about what the winter holds. On the media round on Monday, the Secretary of State said there was nothing in this King’s Speech to help people with their energy bills. What will she to say to those thousands of my constituents and indeed other constituents?

[Claire Coutinho]

The Bill we are bringing forward will unlock billions of pounds in tax, which will go towards helping with the programmes I have just talked about—for example, the cost of living payments we are putting in place. It will also unlock billions of pounds of investment, which will go towards a greener transition, and I am sure the hon. Lady will agree that having more renewable energy in the future will contribute to lower bills for her constituents.

Our leadership is bringing wealth to our economy and to British workers. Since 2010, we have secured £200 billion in low-carbon investments, with potentially up to £375 billion on the way. Carbon capture will see 50,000 high-skilled British jobs in places such as Teesside and the Humber. Our world-leading offshore wind farms will see 90,000 jobs from Aberdeen to Cornwall by 2030. That is the difference between a Conservative Government, focused on attracting businesses, investment and jobs and creating livelihoods, and Labour, with its same old plans to borrow, borrow, borrow, intent on racking up billions of pounds of debt and then just leaving hard-working families to pick up the bill.

Let us look at the record and the Government’s plans to go further. We are a leader in offshore wind power. We do not just have the world’s largest offshore wind farm; we have the second, the third and the fourth largest, and we are now home to the fifth largest too. We expect growth in offshore wind to deliver enough energy to power the equivalent of every home in Britain by 2030 and to support 90,000 jobs. And it is not just offshore wind; it is floating offshore wind too.

We will generate enough solar energy to power 10 million electric vehicles by 2030.

[Richard Thomson (Gordon) (SNP)]

Will the Secretary of State tell us how much the UK’s offshore floating energy capacity will increase by as a result of the licensing round that has just closed?

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[Claire Coutinho]

I would happily answer that point. The point the hon. Gentleman should understand is that a thriving oil and gas sector unlocks investment in other renewables. There are people interested in floating offshore wind who are part of the oil and gas sector now—the same subsea technology, the same people and the same skills will power our offshore wind and floating offshore wind sectors in the future.

We are also funding eight groundbreaking projects through our £1 billion net zero innovation portfolio to help us harvest the power of the sun from space. Space-based solar could provide clean energy day and night in all weathers and send it wirelessly to the Earth. Madam Deputy Speaker, I think you would agree that that is a superpower in itself.

Meanwhile, hydrogen hubs in places such as Teesside are not only creating the green hydrogen energy of the future, but bringing investment back to areas Labour left behind. By 2030, the sector could support up to 12,000 jobs and unlock up to £11 billion in private investment. However, hydrogen is not the only new technology we are supporting. In the last CfD allocation round, I was delighted to see that we had an unprecedented number of projects supporting emerging technologies such as tidal and, for the first time, geothermal energy.

So our green transition means up to £375 billion of investment and nearly half a million jobs across the UK. Of course, our plans also mean that by 2050 we could see our demand for electricity double, fuelled by our clean energy revolution, so we need to power up our electricity grid. I have made that my priority, and that is why I am ending the first come, first served approach to grid connections by raising the bar to enter the queue and ensuring that those who are ready first will connect first.

We will set out the UK’s first ever spatial plan to give industry certainty and every community a say, and we will speed up planning for the most nationally significant projects coming forward with our response to electricity networks commissioner Nick Winser’s review coming shortly. Those plans alone could unlock £240 billion of investment and support 130,000 jobs.

I turn to carbon capture and storage. We are investing £20 billion to make the most of our natural advantages in skills and geology. We have announced the first eight carbon capture networks that we will take forward, which are in the north-east, the north-west and Wales, and the next two carbon capture clusters, which are in north-east Scotland and Humberside. Those announcements put us on track to achieve between 20 million and 30 million tonnes of captured and stored carbon dioxide a year, which is equivalent to taking 4 million to 6 million cars off the road each year from 2030. Our plans will support 50,000 jobs by 2030 and add £5 billion to the economy by 2050. What is more, with 78 billion tonnes of potential storage in the continental shelf, the UK has the potential to become one of the greatest carbon storage bases in the world, thanks to the geological goldmine we are lucky to have on our doorstep.

Renewables are not always predictable, as they rely on the British weather—and, sadly, we have yet to develop a technology that can harness all of Labour’s hot air. That is why we are ramping up nuclear to help us become a clean energy superpower. The right hon. Member for Doncaster North, who for years sat at Gordon Brown’s side, did nothing to boost British nuclear, and other Labour Front-Bench Members have been naive enough to say that we do not need nuclear. We on the Government Benches are righting their wrongs. Earlier this year, we set up Great British Nuclear to spearhead our nuclear revival. We are building two new large-scale nuclear power stations. In fact, each and every operational nuclear power plant in Britain began its life under a Conservative Government. We are accelerating the development of small modular reactors, we are accelerating advanced modular reactors and we are leading the world in fusion energy. We are backing this vision with £700 million. The House may not realise it, but we have the hottest place in the solar system here in the UK, just under 50 miles away at the Culham Centre.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

My right hon. Friend is making an amazing speech, showing how much the Government have done for our environment. Could she give us an idea of the timetable for the small nuclear reactors and when the first one is likely to be licensed?

[Claire Coutinho]

I thank my hon. Friend. We are working at pace to have the fastest competition possible. We have just moved past the first part of the process and will be setting out more details in the new year.

As the Government continue to consider our long-term energy security of the future, it is only right that we support our British oil and gas communities. Even the Climate Change Committee acknowledges that oil and gas will be part of our energy mix when we reach net zero in 2050. So if we will need it, it is common sense that we produce as much of our own of it here.

[Charlotte Nichols (Warrington North) (Lab)]

As chair of the all-party parliamentary group on nuclear energy, I hear that one of the biggest barriers to nuclear is not the investment that the Secretary of State talks about but planning and people. What will she do on that? I have not heard anything so far in what has been proposed to stop things such as judicial reviews going in to stop nuclear power stations being built.

[Claire Coutinho]

The hon. Lady is right to raise skills, people and planning. We have been looking at ways to speed all of that up and will be setting out more details by the end of the year.

The King’s Speech included legislation for awarding oil and gas licences each year, giving industry the certainty it needs to invest in jobs here in the UK.

[Nadia Whittome (Nottingham East) (Lab)]

Will the Secretary of State give way?

[Claire Coutinho]

I will make some progress.

Oil and gas is an industry that supports 200,000 jobs and is expected to provide £50 billion of tax revenue in the next five years. That is the people and the money that the Labour party would send abroad, because it is not against oil and gas jobs, just against British oil and gas jobs—and for what? To increase our reliance on imports from foreign regimes with higher emissions and to send away billions of pounds of investment in carbon capture and hydrogen schemes. Opposition Members support those technologies but would rather the taxpayer footed the bill for them.

With our ambitions on net zero and for our energy security, it is critical that we make the most of our own home-grown advantages, but Labour and the SNP’s policy means jobs abroad, investment lost and energy security sabotaged. You do not have to take my word for it, Madam Deputy Speaker—the unions are sounding the alarm. It has been said that Labour “does not… understand energy”, is self-harming and “naive”, and that its policies would leave our oil and gas communities decimated, turning our oil and gas workers into the “coalminers of our generation”. Those are not my words but those of the GMB and Unite. We want to keep jobs and manufacturing here, but Labour has not understood that we needs natural gas supplies. Those are the words of industry. The important truth is that we know we need to transition to clean energy, but it is the same people, communities and expertise that will unlock the green transition. The skills of those working on oil and gas rigs today are the same skills that we will need for the offshore wind jobs of tomorrow.

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

I am losing track of the number of times I have pointed out in this Chamber that just because we extract oil and gas from the North sea does not mean that it gets used here. It gets sold on global markets to the highest bidders, as we have said 100 times.

When it comes to annual licensing rounds, which the Secretary of State is flagging up, is it not the case that the North Sea Transition Authority was already licensing in 2016, 2017, 2018 and 2019? It only stopped because of the climate compatibility checkpoint. The tests that she sets out are not worth the paper that they are written on; she knows as well as we do that they are impossible not to meet, because they are set so low. Will she stop pretending that the Bill is serious, and just admit that it is nothing more than a gimmick?

[Claire Coutinho]

It is not a gimmick to protect 200,000 jobs. It is not a gimmick to protect the investment that will go into the cleaner energies of the future. On the hon. Lady’s first point, 50% for the gas supply that we use here comes from domestic production.

[David Duguid (Banff and Buchan) (Con)]

My right hon. Friend is being generous in allowing interventions. On the GMB leader’s quote about oil and gas jobs becoming the coal jobs of the future, is it not the case that the people with oil and gas skills, who we really need to deliver the energy transition, will not be left on the unemployment line, but will go and do their jobs overseas and deliver other countries’ energy security and energy transition?

[Claire Coutinho]

My hon. Friend makes an important point. We are lucky to have the skills, expertise and equipment in this country, which are the same skills that we need for a future in renewable energy. It is vital that we protect them and keep those skills here. To unnecessarily cut off those workers’ livelihoods in this country would wreck our clean energy ambitions. We remain resolutely committed to our ambitious net zero targets. More renewable energy; a nuclear revival; exciting new technologies such as hydrogen, carbon capture and fusion; and, where we need oil and gas, jobs for British workers—that is our vision for the future.

[Nadia Whittome]

A moment ago the Secretary of State quoted the Climate Change Committee, which also said that expanding fossil fuel production is not in line with net zero. By the Secretary of State’s own admission on Monday, not a single Bill in the King’s Speech will help families struggling with energy bills. How can the Government justify turbocharging new oil and gas, when that does nothing for the cost of living crisis and blows a hole in our climate ambitions?

[Claire Coutinho]

I am afraid the hon. Lady is quite mistaken. The Climate Change Committee’s own data shows that when we reach net zero in 2050, oil and gas will account for about 25% of our energy mix. That is why it is important to ensure that if we need it, it comes from here.

There are two futures here. One is the future I have just described, where we cut our emissions faster than any other major economy in the world; we drive hundreds of billions of pounds of private investment in wind, nuclear and hydrogen; we support UK industry with carbon capture; we create a world-class export opportunity in our continental shelf; we secure nearly half a million jobs, with our young people renowned globally for their expertise; we bring supply chains and manufacturing capability to our industry heartlands such as the Humber and Teesside; our coastal communities are renewed; and we protect our energy security and support families and businesses with the cost of energy. That is the future for Britain as a clean energy superpower.

There is another future: a bleak world. Imagine it is a grey day; the last private investor has just pulled out of the North sea. Those communities without the jobs to support them have disbanded. The right hon. Member for Doncaster North is explaining yet again why the Labour party has laden the country with debt. His mothballing of British oil and gas is seen as the worst handling of our natural resources since his old boss sold the gold. Norway, with its ongoing oil and gas licences, is forging ahead with its greener future. Meanwhile, jobs in Russia are booming. Our energy security has been jeopardised, as imports from unstable regions rise. That is the future we can expect from a party reliant on Just Stop Oil and Extinction Rebellion for ideas. With an awful predictableness, this parallel world has once again proven the law of British politics: every single Labour Government in the past left unemployment higher.

Of course, that future is not a surprise to anyone. The right hon. Gentleman said, after all, that we should sacrifice economic growth to cut emissions. [Interruption.] He would like to borrow £28 billion in his blind ambition for 2030, no matter the cost to ordinary people. Just three days ago he said that protecting the British oil and gas industry, 200,000 jobs and £50 billion of tax revenue was a stunt. But it is not a stunt to want to keep jobs in the UK, it is not a stunt to want to protect billions of pounds of taxes and investment in this country, and it is certainly not a stunt to prioritise domestic security over the threat of dictators such as Putin.

The British people have rejected the right hon. Gentleman’s arguments before, and they will do so again. I am sure that he will today mention Great British Energy, a new Labour entity about which we know only one thing for sure: it will be run badly, funded by the shadow Chancellor who, when she is not borrowing other people’s words, is recklessly borrowing to fund Labour’s policy and leaving the British people to pick up the bill.

What will GB Energy really look like? Will it be like Labour Nottingham Council’s version, Robin Hood Energy, which collapsed in 2020 leaving local taxpayers with £38 million of debt? Will it be like Labour-run Bristol’s version, Bristol Energy, which also collapsed, leaving local people with losses of £43 million? Or will it be like Labour’s 50% stake in Warrington’s Together Energy—people will get the pattern by this point—which also collapsed, with a £37 million bill this time for local residents to pick up? Not content with bankrupting Birmingham and Croydon or skewering local taxpayers in Nottingham, Bristol and Warrington, Labour now wants to bankrupt Britain. One thing is for sure: when Labour is in charge of your energy you will pay the price.

Energy transitions do not happen very often and now we are on the brink of the most important one of all to reverse centuries of global warming and reach net zero and secure energy resilience by powering Britain from Britain. It is only the Conservatives who have the plans to protect this country’s energy security, to deliver the most ambitious 2030 emission cuts of any major economy, to promote jobs and investment in the UK, and to help this country stand tall on the global stage. We will do that all without forcing families to choose between protecting their family finances and protecting the planet.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

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[Claire Coutinho]

Will the right hon. Gentleman give way?

[Edward Miliband]

Oh, I will, definitely, yes!

[Claire Coutinho]

Does the right hon. Gentleman acknowledge that I said it would also help fund renewable energy? Does he disagree with the view that a future with renewable energy would help to bring bills down?

[Edward Miliband]

I think that that is what we call wriggling.

As I was saying, I commend the Energy Secretary on her outburst of candour. She is right—she is telling it like it is—and, by the way, she is in good company. Let me read this to the House:

“MYTH Extracting more North Sea gas lowers prices. FACT UK production isn't large enough to…impact the global price of gas.”

Who said that? Not somebody on this side of the House. [Interruption.] No, not a former Chancellor. It was the current chairman of the Conservative party, the right hon. Member for Chelsea and Fulham (Greg Hands), when he was the Energy Minister.

So here they are, they really are going to the country and saying with a straight face, after all the pain and anguish that the British people have faced, “Here is our grand offer to you: the ‘we won’t cut your bills’ Bill.” That is the offer from the Secretary of State: “Vote Conservative, and we promise we won’t cut your energy bills.” No wonder the Back Benchers are despairing. The Government could have done so much. They could have lifted the onshore wind ban to cut energy bills, but they did not. They could have legislated for a proper programme of energy efficiency to cut bills, but they did not. [Interruption.] I will happily give way to the Energy Secretary’s Parliamentary Private Secretary if he would like to intervene.