Making Britain a Clean Energy Superpower
Claire Coutinho Excerpts(1 day, 17 hours ago)
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Claire Coutinho (East Surrey) (Con)
Thank you, Madam Deputy Speaker, and may I say how wonderful it is to see you in the Chair?
I warmly welcome the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks) to his place on the Government Front Bench. I know that he used to be a schoolteacher, a wonderful profession, and I am sure that his ability to wrangle with unruly children will help him with his work in this place.
I also welcome the continuation of the fine tradition started by my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) of having a Minister from Scotland in the Department for Energy Security and Net Zero. Scotland has played, and will continue to play, a vital role in our energy security, and I know that the hon. Member will bring his local expertise to the role.
I was surprised to see the title of this debate. Under the Conservative Government, we built more offshore wind than any other country bar China, much of it driven by our contracts for difference scheme, which weaves together the Conservative principles of competition and enterprise. It was under the Conservative Government that we went from having 7% of our electricity coming from renewable energy to almost half today, and it was under the Conservative Government that we kick-started the largest nuclear revival in 70 years, committing to three large-scale nuclear reactors and a whole new fleet of small and advanced modular reactors. That is the record that has led to more than £300 billion being invested in green technology since 2010, creating jobs up and down the country.
The Labour party likes to say that the difference between us is that they are the climate believers and we are the climate deniers, but that is obviously nonsense. It was under the Conservative Government that we became the first country in the G20 to have halved carbon emissions, and we did that while growing the economy. The real difference between us is this: we know that the transition needs to happen, but we recognise that it is now at a stage where we are asking the British public to incur great costs—to change their cars, their homes and many other things. We are way ahead of other countries, and what happens next is not cost free. If it is not managed carefully, if it is driven by ideology rather than the national interest, then it will cost us jobs, hit struggling families and leave us reliant on fuel imports from foreign regimes. This country will succeed in the decades ahead only if we have enough cheap energy to power our nation. It is no use being world-leading at cutting emissions if the cost of our energy goes through the roof and all our businesses leave to set up in countries that still burn coal for 60% of their energy. That would be worse for global emissions and a disaster for the British public.
We will do our bit from the Opposition Benches to hold the Government to account on their plans, but my message to those MPs now sitting on the Government Benches is that it is in their interest to ask these crucial questions too. Throughout the general election campaign, the people now sitting on the Benches behind the Minister told their new constituents that their plans would save them £300 on their energy bills—they said it in hustings, they said it in local media, they said it on their leaflets— but they will have noticed by now that their Ministers are no longer saying that at all.
This is the problem, Madam Deputy Speaker: when you get into government and you speak in the House, you cannot use numbers for which you have no basis. [Interruption.] Labour Members will learn that. But their voters—[Interruption.] They laugh, but their voters will not forget that they made that promise. Their online clips and social media accounts will not go away. They all know that their leadership have sold them down the river on this one. The Prime Minister and the Secretary of State know that those savings cannot be delivered; in fact, their approach to energy will add huge costs to people’s bills.
That is not us being evil Tories. It is also the view of the European lead for Mitsubishi Power, who said that the Labour party’s plans would require a “huge sacrifice” from Brits; it is the view of the GMB trade union, which has said that the Secretary of State’s plans will lead to power cuts and blackouts across the country and come at an enormous cost; and it is the view of the Tony Blair Institute, which says that Labour’s plans would raise bills and harm our energy security. People the Labour party normally listens to, from the right to the left of the party, agree with us on this issue.
I urge the hon. Members sitting behind the Minister to take this issue seriously and examine his plans in detail, because it is their promise, which they all made just a few weeks ago, that is being ditched. Come the next election, the first question their voters will ask is not, “Have you met the 2030 target?”, but, “What did you do to my energy bills?” If the trade unions, the business leaders and the Conservative party are right that their approach would place huge costs on British households, I can tell them that their constituents will check the parliamentary records and see whether they asked any questions, and they will have to explain why they let these measures pass without challenge.
Dame Meg Hillier
I have to congratulate the right hon. Lady on her chutzpah after 14 years of Conservative government. I have examined closely those net zero policies—the stop-start on feed-in tariffs, the failed competitions for carbon capture and storage, and the stalling of new nuclear. She does not have a record that she should be proud to stand on, and I would have hoped that she would graciously accept and back the innovative plans of the Labour Government.
Claire Coutinho
I have enormous respect for the hon. Lady, but I disagree, particularly on nuclear, because every single operational nuclear power plant in this country was started by Conservatives.
I will offer some suggestions for questions that Labour Members might like to ask. They like to say that renewables are cheap, and they are cheap to operate. After all, wind and sunshine are free. However, if we want to know what a type of power will do to our bills, we have to look at the full system costs. If we race ahead with renewables at the same time as making our gas power stations uninvestable, what will be our back-up when the sun does not shine and the wind does not blow, and how much does that cost the system? New technologies such as small modular nuclear reactors, carbon capture, and batteries of long duration storage are all welcome, but they will not be ready by 2030. What will be used, and how much will it cost?
Will the largest nuclear expansion in 70 years, which I set out, be sacrificed to pay for GB Energy? I know that Ministers barely refer to it any more, but nuclear will be critical to our energy supply in the years ahead. Have they made an assessment of how much their plans will increase our reliance on the current dominant provider of pylons, cables, batteries and solar panels, which is China? If not, when will they do so? How much private investment into the energy transition will they lose through their plans to tax the North sea into oblivion and ban new oil and gas licences? It is not a coincidence that many integrated energy companies in this country pursue both oil and gas and renewable projects at the same time; it is because they use the same skills, supply chain and workers. Industry says that more than £400 billion is at risk from these plans. GB Energy, at £8 billion, will not touch the sides of replacing that. How much will be lost, and where will the extra money come from? Will it be from central Government through people’s taxes, or will it be through the bills and standing charges of all our constituents?
The Government keep claiming—I think the Minister did so today—that GB Energy will turn a profit. I believe he said that “every single project” will make a return, but the slice of the pie that they want to invest in is the slice that even businesses do not think they can make money from. That is what de-risking means. Members should ask on what basis the Secretary of State thinks that he can turn a profit for the British taxpayer when highly experienced energy companies believe that they cannot.
If I were to give one piece of advice to the Minister it would be to do what I did when I first started the job. He should not listen to just one side of the climate lobby who pretend that there are no costs involved in this transition, but go to speak to industry, and to oil and gas workers, and listen to how much those families value secure, well-paid jobs on their doorstep. He should not follow the Secretary of State’s path of quoting only from the Climate Change Committee, and never from business or industry. The Minister’s job, first and foremost, is to keep bills down and the lights on. He should not forget those last two priorities, or he will find that those on the Benches behind him will turn very quickly.
Barry Gardiner
The right hon. Lady said that Members should not quote only from sources that they feel are friendly to them, so I will not quote from the International Energy Association, but perhaps she might accept a quote from the World Economic Forum, which stated:
“Renewables are now significantly undercutting fossil fuels as the world’s cheapest source of energy”,
according to its report.
Claire Coutinho
I thank the hon. Gentleman, but as I said, we have to look at the full system cost. He is very experienced in the energy sector, and he knows as well as I do that the flexible capacity that is used to back up an intermittent system is where the true costs lie. It is fair for Opposition Members to ask for an assessment of what those costs will be, and what they will mean for British bill payers.
The other area where the Government must be honest with the public is about what they are going to build. The Secretary of State’s first week in the job saw him approve 4,000 football pitches’ worth of solar farms on farmland in Rutland, Suffolk, Cambridgeshire and Lincolnshire. Those projects were not sat on my desk, as the Secretary of State has claimed. I had made a decision to reject Sunnica on the basis of a scathing examining authority report, and I changed policy to protect our best agricultural land. These are not projects that were likely to be approved; these are bad decisions. Work was being drawn up to be announced, but the decision had been taken in the case of Sunnica. The Secretary of State will know that from civil servants, who are duty bound to brief him honestly in the Department.
In the case of Mallard Pass, the site has been signed off, 40% of which will be built on our best and most versatile agricultural land, taking no notice of legal planning guidance that says that best agricultural land must be avoided. The Secretary of State and his Ministers will have to justify that, and many more decisions, to his new colleagues, many of whom now represent rural communities and whose constituents will be rightly concerned that they are next.
I wish the new Minister well for his time in the Department. The energy sector is one of the most interesting and important policy briefs affecting this country, and it is in all our interests that he does his job well. However, what the Government have done so far —make claims during the election that they cannot stack up now they are in government—will just not do. They have set out a hard target to decarbonise the grid by 2030, and the Secretary of State stakes his entire political reputation on it, without being honest about the costs. These issues are far too important for Government not to take seriously, and they are far too important for Labour Members to follow the Government blindly without asking questions. They did that during the election with promises to save households £300, and they can no longer stack up those promises just three weeks into Government. I humbly suggest that this is their first lesson of the Parliament: they should not give the Secretary of State a blank cheque again.
Clean Energy Superpower Mission
Claire Coutinho Excerpts(1 week, 2 days ago)
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Claire Coutinho (East Surrey) (Con)
I would like to put on the record my disappointment not to get the statement in good time. I know that the right hon. Gentleman will want to provide us with the same courtesy that we tried to provide him when we were in government. That being said, I congratulate him on his return to government. I was sad not to see more of him during the election campaign, particularly because our ability to secure enough cheap energy will be crucial to this nation’s success in the decades ahead. I would also like to put on record my thanks to the officials he will now work with.
I wish the right hon. Gentleman well in his endeavour, but energy will be this Government’s big test. They talk a good game on growth, but the Secretary of State’s energy policy is their greatest liability. In government, we built more offshore wind than any other country bar China. We set out the largest expansion of nuclear power in 70 years. We said that, yes, we will need oil and gas in the decades ahead, as the Climate Change Committee has said, and we should use British oil and gas where needed. We are in a global race for energy, and demand will be higher in the years ahead because of data and artificial intelligence.
If the right hon. Gentleman’s plans to decarbonise the grid by 2030 are in place, we need to know what they will do to people’s energy bills, our energy security and our reliance on the current dominant player for cables, batteries and critical minerals—China. He is happy to quote the Climate Change Committee, but it also acknowledged that we will need oil and gas well into 2050. He must answer: where would he like that to come from?
When it comes to quotes, he should consider some from the business world who have commented on his policy, such as the chief executive of Mitsubishi Power, who said that his plans would require a “huge sacrifice” by the country, citing the costs of the Secretary of State’s approach. The chief executive of Ineos said that his approach to energy was “absurd”, leaving us dependent on imports of foreign fuels with higher emissions and doing nothing for the climate. Even the GMB said that his plans were “unviable” and would lead to power cuts, blackouts and enormous cost. Unite has said that the Government’s plans for the North sea would turn oil and gas workers into the coalminers of their generation.
The right hon. Gentleman must answer why he would like to import gas with much higher emissions. How many jobs will be lost from his plans? How much investment into the new technologies of the future, such as hydrogen, carbon capture and offshore wind, will be lost? Will he meet those workers and explain to them what will happen to their livelihoods?
During the election, the right hon. Gentleman claimed that he would lower bills and save families £300. However, those numbers are already in the savings, and no one on his side can set out the cost of his plans to decarbonise the grid by 2030. Who will pay for those network costs? What will they do to people’s standing charges, which were already too high?
The right hon. Gentleman also, I think, commented on having a say in terms of communities. The energy infrastructure he will need, and the fact that he wants to go further and faster, will have a huge impact on rural communities. Their concerns must be addressed. As I set out, the plans for our energy cannot come at the expense of our food or national security.
In his statement, the right hon. Gentleman accused me of dither, but as he will know from his officials, in at least one of the cases he has signed off I had already instructed some time ago that I was minded to reject it, and that paperwork was being prepared. He must set out urgently what his criteria will be. In one case, he overturned an expert examining authority. In another case, he signed off a solar farm which will be 40% on our best and most versatile agricultural land. Did he know that was the case? If so, what was his basis for finding that acceptable? Will he continue our efforts to build more solar on rooftops? I think he mentioned that he would reconvene the solar taskforce. I hate to tell him, but it had never been disbanded and we were due to publish that work. So, I would like to know what date he will be able to publish that work.
In conclusion, the Secretary of State’s party won the election and promised change, but he was not on show during that campaign to answer these critical questions of how he was going to provide that change and what it will mean for the country. What will his plans mean for the price of electricity? What will they mean for our ability to keep the lights on? What will they mean for struggling families’ bills, for our economy, and for the livelihoods of oil and gas workers? What will they mean for our reliance on China? For all that the Labour Government talk about growth, they will not be able to deliver on that with the Secretary of State’s plans for energy. I hope that in the months ahead he will set out some of that detail to be examined.
Edward Miliband
May I start by congratulating the right hon. Lady on her recent engagement? I wish her and her fiancé all the best for the future. We may disagree on some issues, but I believe this Government and the right hon. Lady can at least share a belief in long honeymoons. [Laughter.]
On the right hon. Lady’s response, I have to say that I was disappointed. The lines were very, very familiar. That is because they were the lines she has used for the last year. And here she comes today to the House and repeats the lines as if the intervening meteorite has not hit the Conservative party: the worst election result in 200 years for her party. The truth, as sensible Conservatives know, is that the lurch she worked on a year ago with the former Prime Minister, the Leader of the Opposition, the right hon. Member for Richmond and Northallerton (Rishi Sunak), was an electoral disaster for the Conservative party—the lurch away from climate action. What we saw in her statement is the classic dilemma for the Conservative party, which we will see played out, I hope, for many long years of Opposition. The dilemma is do they go the Reform route to be climate deniers, or do they actually re-embrace climate—[Interruption.]
Oil and Gas Overlaps: Offshore Wind Projects
Claire Coutinho Excerpts(2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
The North Sea Transition Authority has announced three tranches of licences from the 33rd oil and gas licensing round. Production from these licences will support our world-class oil and gas industry and help maintain the UK’s energy security. Data published by the Climate Change Committee shows that the UK will continue to need oil and gas, alongside abatement technologies, even when we reach net zero in 2050.
A number of licences from the third tranche of the 33rd oil and gas licensing round have direct overlaps with, or come within 500 metres of, areas which are already under agreement for offshore wind development. It is important to note that the oil and gas licences grant exclusivity to explore the licence area, but they do not confer consent for any operational activity. This would require separate consents from the North Sea Transition Authority.
Oil and gas developments and offshore wind developments already co-exist and my expectation is that they will continue to do so. Oil and gas developers and offshore wind developers are already expected, through their respective consenting and stewardship processes, to take account of other projects when planning their developments.
To give greater reassurance to affected offshore wind developers that oil and gas licensees will take account of their developments, and to promote co-existence, the North Sea Transition Authority has introduced a new clause in relevant licences following discussions with the Crown Estate and Crown Estate Scotland. The new clause will require the oil or gas licensee to have a co-location agreement with the affected offshore wind developer in place before any operational activity can take place in that licence area, which includes seismic surveying, drilling exploratory wells or installing subsea or surface infrastructure.
Co-location agreements will be the way forward for resolving any issues arising from overlaps and I expect all parties to engage constructively, to act in good faith and to behave reasonably when approaching discussions on co-location. Where there are difficulties in reaching a suitable co-location agreement, the parties should first seek independent mediation or discuss a way forward with the North Sea Transition Authority and the Crown Estate or Crown Estate Scotland.
Some stakeholders have asked about the role of the oil and gas clause in Crown Estate leases in the event an oil or gas developer asks for it to be used. This clause allows the Crown Estates to determine an agreement for lease or lease, in whole or in part, at my request where this is necessary to enable an oil or gas project to proceed. This clause has never been used and no oil or gas developer has ever asked, a Secretary of State to determine an offshore wind lease.
I would like to clarify that there should be no assumption that oil and gas has primacy over offshore wind, or vice versa. In the highly unlikely event that I receive a request from an oil or gas developer to ask the Crown Estates to determine an offshore wind lease, there should also be no assumption that I would agree to do so. In line with previous Government guidance, it would only be used in very exceptional circumstances, only after all avenues for co-existence had been explored and only after appropriate compensation for the offshore wind developer had been assured. For the sake of clarity, I would like to emphasise that co-location agreements will be the primary mechanism for resolving any issues arising from overlaps.
The previous guidance on the oil and gas clause in Crown Estate leases was published in 2014 and I recognise that the oil and gas industry, the offshore wind industry and UK energy policy have all changed significantly since then. My officials will consult with the North Sea Transition Authority, the Crown Estate, Crown Estate Scotland, Scottish Government, the offshore wind industry and the oil and gas industry on appropriate changes to the 2014 guidance in order to incorporate the new requirements on co-location agreements and to reflect wider updates since the guidance was published.
[HCWS504]
Carbon Budgets
Claire Coutinho Excerpts(2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Earlier this week we were proud to be able to announce that we had decided to forgo the option to carry forward any over-performance from the third carbon budget to the fourth carbon budget. Following that, I want to give an update on our progress on delivering against the UK’s world-leading system of carbon budgets.
We are extremely proud to have met, and indeed exceeded all three of the carbon budgets to date. In 2013, the Climate Change Committee said the Government were “not currently on track” to meet the third carbon budget. But our continued delivery of emissions-reducing policies meant that we were in fact able to exceed the target.
When the fourth carbon budget was set in 2011 it was considered by some, including in Government, to be so stretching, that a review point would be needed to see if it was actually achievable. As late as 2019, the Climate Change Committee said that “Government continues to be offtrack for the fourth” carbon budget. But again, with continued policy delivery, the UK is now on track to more than exceed the fourth carbon budget. And a future Minister will have to make a decision, like the one we announced earlier this week, as to whether to carry forward that over-delivery.
The fifth carbon budget goes further still in reducing emissions. But since that was set, we took the decision to move to net zero by 2050 target. That means we will have to significantly overdeliver on the fifth carbon budget. And our own plans show that we are indeed on track to overdeliver yet again.
Ministers took decisions on the level of the sixth carbon budget (CB6) in March 2021. This was the first net zero-aligned carbon budget and so requires an even more challenging level of emissions reduction. We are still more than eight years away from the start of the sixth carbon budget period and more than 13 years away from the end of it—despite which, we have around 300 policies in place to deliver emissions reductions required over the sixth carbon budget period, with around 200 of these having quantified savings associated with them. The most recent assessment showed that 90% of the savings required to meet the CB6 target are covered by quantified policies.
The UK has reduced emissions further and faster than any major economy, becoming the first to halve its emissions against the 1990 baseline, and we remain steadfastly committed to net zero. This is a record of which we are immensely proud, and indeed a record in which everyone in this country should feel pride.
[HCWS505]
Large-scale Nuclear Power Station: Wylfa
Claire Coutinho Excerpts(2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
In January this Government published the civil nuclear road map, which represented the biggest expansion of nuclear power for 70 years. It set out our ambition for 25% of our power to come from nuclear by 2050.
Since then, the Government have been powering on to deliver the road map commitments. We have launched the next phase of the small modular reactor (SMR) technology selection process, with bidders having until June to submit tenders; announced support to a multi-year programme of work to boost nuclear skills in the UK; and announced £196 million of support for a high-tech nuclear fuel facility in the north-west. We intend to take a final investment decision on Sizewell C before the end of this Parliament.
I am proud that this Government are delivering on their commitments and this statement outlines progress on another of our key commitments: to explore a further large-scale nuclear project.
At the spring Budget, my right hon. Friend the Chancellor also announced that Great British Nuclear had reached agreement with Hitachi to acquire the Wylfa (Anglesey/Ynys Môn) and Oldbury-on-Severn (Gloucestershire) nuclear sites.
Today my Department has published a prior information notice (PIN), exploring building a further large-scale nuclear power station, similar in scale to Hinkley in Somerset and Sizewell in Suffolk. As part of the PIN the Government have indicated that their initial preference is that any such nuclear project should be located at Wylfa. Sitting on the north Wales coast, Wylfa is ideally suited to host a large-scale nuclear project given its proximity to water and nuclear heritage. This announcement has the potential to bring thousands of jobs and investment to the area, boosting the local economy.
This PIN invites interest from all potential large-scale vendors to engage with the Department as it carries out market engagement and builds an understanding of the capacity of the sector to support large-scale project ambitions. The Department will use the information gathered to inform future policy on large-scale nuclear development in the UK. This is an important step in signalling the Government’s intent, and while it is not compulsory for potential vendors to express an interest at this stage, we would encourage all with an interest to do so.
Importantly, I am clear that this announcement does not in any way seek to predetermine outcomes of the ongoing SMR technology selection process, and that indicating the initial preferred use of Wylfa should not preclude access to sufficient site capacity for future SMR requirements.
I am depositing a copy of the PIN in the Libraries of both Houses.
[HCWS494]
Oral Answers to Questions
Claire Coutinho Excerpts(2 months, 1 week ago)
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Kenny MacAskill (East Lothian) (Alba)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
My Department attended the Grangemouth industrial just transition leadership forum alongside Scotland Office Ministers and representatives of Unite the union on 28 March. We remain in close contact with the Scottish Government and the owner Petroineos. My hon. Friend the Minister for Energy Security and Net Zero met Scottish Government counterparts and Petroineos management on 15 May and raised the importance of working with the unions.
Kenny MacAskill
Warm words are one thing; tangible support is quite another. If Grangemouth closes, Scotland faces the possibility—indeed, the probability—of being the only major oil producing nation without refinery capacity, yet €700 million has been found by the UK Government to support an Ineos plant in Antwerp while not a penny is available for Grangemouth. Is it to be a Brexit bonus for Belgian workers and a P45 for those Scots at the refinery?
Claire Coutinho
We are working with the Scottish Government and Petroineos to understand all possible options for the future of the refinery. I remind the hon. Gentleman that the Conservatives are the only major party who are backing the North sea, the biddings it brings in each year and the hundreds of thousands of jobs that it supports, while a new report last week showed that Labour’s plan could lose as many as 100,000 jobs in the next five years.
Henry Smith (Crawley) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
We are on track to reach net zero by 2050, and we will do so in a way that brings the public with us. We overachieved on our third carbon budget by 15%, and we announce today that we will not be rolling that over as we think that we will be able to overperform on carbon budget 4 as well.
Henry Smith
I congratulate the Government on us being one of the first major economies in the world to set out the ambition for net zero carbon emissions by 2050. What discussions has the Secretary of State had with the Chancellor and the Secretary of State for Transport with regard to a revenue support mechanism for sustainable aviation, as well as ensuring that feedstock for sustainable aviation fuels takes priority?
Claire Coutinho
I know from experience that my hon. Friend is a doughty champion for his local area and for the aviation sector. My Department is in regular contact with the Department for Transport and the Treasury on aviation decarbonisation and the important role for sustainable aviation fuel in that transition. On 25 April, DFT published a consultation on options for a revenue certainty mechanism alongside details of the SAF mandate, which together will support both decarbonation and the growth of the sector.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Tapadh, Mr Speaker.
There are many criticisms of the Government—I am sure they are aware of them—that they are too slow and indecisive about giving signals to the market for particular technologies, which means that, when they need to commission new energy, they are stuck with only one option: gas, which, as we know, is not exactly the way to net zero. What will the Secretary of State be doing to move things a bit quicker and give the market signals as to which energy path the UK will be taking?
Claire Coutinho
I remind the hon. Gentleman that we have one of the most remarkable records when it comes to renewable energies. The only country that has built more offshore wind than us is China, we have set out the largest expansion for nuclear, and we are at the forefront of cutting-edge technologies such as fusion, hydrogen and carbon capture.
Dame Andrea Jenkyns (Morley and Outwood) (Con)
Meeting our net zero targets, which will be extremely difficult and eye-wateringly expensive, has been enforced on my constituents. Does the Secretary of State agree that we must be more honest and open about the enormous costs of net zero on the British taxpayer? Will the Government commit to publishing a detailed analysis of those costs in advance of my Westminster Hall debate?
Claire Coutinho
There is a balance to be struck, which I believe we are striking, in ensuring that we can make the most of the jobs and opportunities of the energy transition, which will support up to 480,000 green jobs in 2030. But, yes, when it comes to additional costs, we are taking a measured approach because we want to protect households.
Caroline Lucas (Brighton, Pavilion) (Green)
In the Climate Change Committee’s latest progress report, it was made clear:
“There continues to be an overly narrow approach to solutions, which crucially does not embrace the need to reduce demand for high-carbon activities.”
So when the Secretary of State goes back to the drawing board to revise the Government’s carbon budget delivery plan, as she now must, will she finally reduce the reliance on unproven technofixes and look instead at demand reduction measures—or, following the recent embarrassing judgment from the High Court, is she aiming for a hat-trick, with her Department’s climate plan declared unlawful for a third time?
Claire Coutinho
I would find the hon. Lady’s questions more credible if she would at least once welcome the fact that we are the first country in the G20 to have halved emissions. On our progress, I am proud that one of the reasons that we have come so far is technological fixes, because of the remarkable progress that this country has made in renewable energy. That is why we overshot on our first, second and third carbon budgets, and we are on track to overshoot on our fourth.
Edward Miliband (Doncaster North) (Lab)
Two weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:
“The Secretary of State’s conclusion that the proposals and policies will enable the carbon budgets to be met was irrational”.
Last time, the Government claimed that their breach of the law was just on a technicality. What is the right hon. Lady’s “dog ate my homework” excuse this time?
Claire Coutinho
Let us be clear: the Court did not question the policies that we have set out, which we have done in more detail than any of our peers. It did not question the progress that we have already made, as the first G20 country in the world to halve emissions, and it did not question the ambition of our future targets, which are among the most ambitious of our peers. If the right hon. Gentleman wants to look at what would smother the transition and private investment in this country, he need only look at his own mad, unachievable 2030 target.
Edward Miliband
With a defence like that, I can see why the Government lost in court not just once but twice. Buried in the court documents is the confidential memo that reveals the real reason they lost the case—officials were telling Ministers that they had low or very low confidence that half their carbon reductions would be achieved. That is why they were found unlawful. The right hon. Lady comes to the House each month with her complacent nonsense, but the court judgment exposes the truth: the Government are way off track, abysmally failing to meet the climate emergency and pushing up bills for families as a result.
Claire Coutinho
I have learned in this role that the right hon. Gentleman likes to call people who disagree with him names. Last week, representatives from the Tony Blair Institute said that his plans would raise bills and harm our energy security. Are they flat earthers? An industry report said last week said that his plans would see up to 100,000 people lose their jobs. Are those people who are worried climate deniers? When will the right hon. Gentleman admit that his plans are based on fantasy and ideology and are the last thing that this country needs?
Liz Twist (Blaydon) (Lab)
Liz Twist (Blaydon) (Lab)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Since I was last at the Dispatch Box, we have been building up Britain’s energy security. We have taken the next step in the biggest expansion of nuclear in 70 years, making Britain a producer of advanced nuclear fuel and pushing Putin out of the global energy market. Just today, Rolls-Royce announced that it will invest millions of pounds in bringing new jobs to Sheffield to manufacture small modular reactors. We have overachieved in our third carbon budget, which is keeping us on track to reach net zero, and we are building on our proud record of being the first major economy to halve emissions. We have invested over half a billion pounds to help cut energy costs and bills for schools and hospitals, and we are taking our next steps on PumpWatch to protect motorists from unfair prices.
Liz Twist
Latest figures by National Energy Action show that there are still 1,875 homes in my constituency with legacy prepayment meters. What action are the Government taking to remove this costly burden on families?
Claire Coutinho
I thank the hon. Lady for her question. During my career, I have looked at the issue of prepayment meters for a long time, and one of the things that I am proudest of is our taking out the premium that people on prepayment meters were paying.
Dr James Davies (Vale of Clwyd) (Con)
Energy Infrastructure Planning Projects
Claire Coutinho Excerpts(2 months, 1 week ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
This statement concerns an application for development consent made under the Planning Act 2008 by Mallard Pass Solar Farm Ltd for the construction and operation of a solar farm energy generating development on land in Lincolnshire, South Kesteven and Rutland.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Mallard Pass Solar Farm application is 16 May 2024.
I have decided to set a new deadline of no later than 13 June 2024 for deciding this application. This is to ensure there is sufficient time for the Department to consider the application.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
[HCWS469]
Solar Energy and Food Security: Land Use
Claire Coutinho Excerpts(2 months, 1 week ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Food security is an essential part of national security. This Government are fully committed to delivering robust UK food security and recognise its paramount importance to our national security. This is reflected in our commitment to maintain the current level of food we produce domestically. Heightened geopolitical risk has brought this into sharper focus and we think it is more important than ever that our best agricultural land is protected and our food production prioritised.
Similarly, we have seen our energy security threatened following Putin’s illegal invasion of Ukraine, with the Government spending over £40 billion to pay up to a half of people’s energy bills. We are combating this by racing ahead with deployment of renewable energy; nearly half of our electricity today is produced from renewables, which is up from only 7% in 2010. Solar power is a key part of the Government’s strategy for energy security, net zero and clean growth. This position was reinforced in the new national policy statement (EN-3), published in January this year, which stated:
“Solar also has an important role in delivering the government’s goals for greater energy independence and the British Energy Security Strategy states that government expects a five-fold increase in combined ground and rooftop solar deployment by 2035 (up to 70GW)”.
The Government recognise that, in some instances, solar projects can affect local environments which may lead to unacceptable impacts for some local communities. The planning system is designed to balance these considerations against the need to deliver a secure, clean, green energy system for the future.
Protecting the best agricultural land
The new national policy statement that we published in January makes clear:
“applicants should, where possible, utilise suitable previously developed land, brownfield land, contaminated land and industrial land. Where the proposed use of any agricultural land has been shown to be necessary, poorer quality land should be preferred to higher quality land avoiding the use of ‘Best and Most Versatile’ agricultural land where possible”.
The Government in “Powering Up Britain: Energy Security Plan” clarified that while
“solar and farming can be complementary”
developers must also have
“consideration for ongoing food production”.
Nevertheless, in balancing both the need for energy security and food production, we are concerned that as large solar developments proceed at pace, more of our “best and most versatile” land could be used for solar PV instead of food production. I am therefore setting out further detail about how our policy on balancing these competing priorities is intended to be applied.
As is outlined in the national policy statement, the starting position for solar PV developers in taking forward nationally significant infrastructure projects is that applicants should seek to minimise impacts on the best and most versatile agricultural land (defined as land in grades 1, 2 and 3a of the agricultural land classification) and preferably use land in areas of poorer quality.
The national policy statement can also be a material consideration in determining applications under the Town and Country Planning Act 1990 and is broadly consistent with the approach to agricultural land in the national planning policy framework which states that:
“Where significant development of agricultural land is demonstrated to be necessary, areas of poorer quality land should be preferred to those of a higher quality. The availability of agricultural land used for food production should be considered, alongside the other policies in this Framework, when deciding what sites are most appropriate for development”.
This means that due weight needs to be given to the proposed use of best and most versatile land when considering whether planning consent should be granted for solar developments. For all applicants the highest quality agricultural land is least appropriate for solar development and as the land grade increases, there is a greater onus on developers to show that the use of higher quality land is necessary. Applicants for nationally significant infrastructure projects should avoid the use of best and most versatile agricultural land where possible.
For nationally significant infrastructure projects, including those already in the system, the national policy statement and from today this WMS are likely to be important and relevant considerations in the decision-making process. The Government will keep under review the evidence base underpinning the national policy statement published in January.
Addressing cumulative impacts
While the total area of agricultural land used for solar is very small, and even in the most ambitious scenarios would still occupy less than 1% of the UK’s agricultural land, we are increasingly seeing geographical clustering of proposed solar developments in some rural areas, such as in Lincolnshire. When considering whether planning consent should be granted for solar development it is important to consider not just the impacts of individual proposals, but whether there are cumulative impacts where several proposals come forward in the same locality.
In parallel, my Department will be expanding the renewable energy planning database to include additional information on the types of agricultural land used by existing solar projects and those in the planning pipeline. This will enable us to carefully monitor the use of land by renewable projects in all regions of the UK.
Improving soil surveys
The Government have heard concerns about the perceived inaccuracy and unfairness of soil surveys undertaken as part of the planning process for solar development. The Government will address this by supporting independent certification by an appropriate certifying body, subject to relevant business case approval, to ensure agricultural land classification soil surveys are of a high standard, requiring surveyors to demonstrate meeting an agreed minimum requirement of training/experience. We will also seek to ensure consistency in how data is recorded and presented, so that reports on agricultural land classification are consistent, authoritative and objective.
Supporting solar on rooftops and brownfield sites
Finally, I want to highlight that increasing the deployment of rooftop solar remains a priority for Government. The installation of qualifying energy-saving materials, including solar panels, in residential accommodation and buildings used solely for a relevant charitable purpose currently benefits from a zero rate of VAT until March 2027, at which point they will qualify for the reduced rate of VAT at 5%. At the autumn statement 2023, the 100% first year allowance for main rate plant and machinery assets, and the 50% first year allowance for special rate plant and machinery assets, including solar panels, were made permanent. These measures complement the business rates exemption for eligible plant and machinery used in renewable energy generation and storage introduced in 2022.
This year, UK Government launched a new package of measures to support British farming. Under the second round of the improving farm productivity grant, between £15 million and £25 million was made available for the installation of rooftop solar and other equipment to help farms reduce fossil fuel use, improve their energy resilience, and accelerate progress towards net zero.
We also unlocked a key barrier for large-scale commercial rooftop solar, including on farm buildings, through changes to permitted development rights under the Town and Country Planning Act 1990. Concurrently, we introduced a new PDR allowing for the installation of solar canopies in non-domestic car parks.
We will shortly be delivering the future homes standard which will set the energy performance of new homes and is due to come into force in 2025. Our consultation proposals setting out the proposed technical detail of the standard demonstrated the effectiveness of rooftop solar in reducing energy bills for consumers with solar panels. For non-domestic buildings, the future buildings standard consultation proposed significant amounts of rooftop solar which is also expected to drive the use of solar power on warehouses and commercial buildings.
Additionally, social housing and the public sector both offer excellent opportunities to fit solar on homes and reduce bills. As such, we plan to explore further how to ensure that social landlords can provide solar to their tenants, and work across government to help schools, colleges, hospitals, and other buildings to supply themselves with solar power.
Further information on these initiatives will be set out in the upcoming joint Government-industry solar road map.
I am making this statement with support from my right hon. Friends the Secretaries of State for Levelling Up, Housing and Communities and Environment, Food and Rural Affairs.
[HCWS466]
Energy Infrastructure Planning Projects
Claire Coutinho Excerpts(2 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
This statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Ltd for development consent for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 megawatts, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on North Lincolnshire Green Energy Park application is 10 May 2024.
I have decided to set a new deadline of no later than 18 July 2024 for deciding this application. This is to ensure there is sufficient time for the Department to consider the outcome of the piece of work being carried out by officials from the Department for Environment, Food and Rural Affairs to consider the role of waste incineration capacity in the management of residual wastes in England. This follows the direction issued by the Minister for Food, Farming and Fisheries to the Environment Agency on 4 April to temporarily pause the determination of environmental permits for new waste incineration facilities up until 24 May 2024.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
[HCWS453]
Scope of Fusion Energy National Policy Statements: Consultation
Claire Coutinho Excerpts(2 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention the launch of the consultation on the scope of the fusion energy national policy statement on 8 May 2024.
Fusion energy has the potential to deliver low-carbon, safe, secure energy, and developers, investors, and the wider industry need to be able to plan with confidence to commercialise fusion technology. The UK’s STEP (Spherical tokamak for energy production) programme seeks to develop and build in the UK by 2040 a prototype fusion power plant. Private fusion companies in the UK and overseas are also quickly developing demonstrator fusion facilities. To deliver these facilities, sites for fusion energy facilities will need to be identified and construction started this decade.
If the UK is to maintain its global leadership in fusion and capture the environmental, economic and social benefits of fusion, the Government need to create a stable regulatory and planning environment that supports and encourages its development.
In 2022, the Government published a response to the fusion regulation Green Paper confirming that fusion will be regulated under a different framework than nuclear fission due to its lower hazard. With this different policy approach, the Government also identified a fusion-specific national policy statement as essential to providing clarity to developers and streamlining the planning process for fusion, aligning fusion with other energy-generating technologies. This is necessary not only to provide certainty for developers but also to align fusion with other complex energy-generating technologies which local authorities will lack the expertise to assess in the near future.
The consultation we have published begins the process taking us towards designating an NPS for fusion energy (EN-8). It will include our seeking views on the broad policy proposals for this NPS, and high-level planning criteria.
These broad policy proposals are:
Open-sited—a developer-led approach underpinned by site criteria rather than identifying sites. This approach would allow siting in more communities across the UK, subject to local support.
Technology inclusive—the UK’s fusion strategy committed to supporting all fusion technologies, so the NPS will cover all fusion technologies.
Output agnostic—amend the Planning Act 2008, so that all fusion energy facilities in England will be nationally significant infrastructure projects, independent of capacity of thermal or electrical output. This approach was proposed in the new nuclear NPS consultation, so any amendments to legislation will be co-ordinated.
This consultation relates to the exercise of powers in England and Wales. The Planning Act 2008 and the system of nationally significant infrastructure consenting do not apply to Scotland or Northern Ireland. The Wales Act 2017 gives Welsh Ministers responsibility for consenting to the construction of power stations of a capacity up to and including 350 MW.
Alongside the publication of this consultation, we will publish a consultation on the scope of an appraisal of sustainability and a habitats regulation assessment. These will inform consideration of the sustainability impacts of fusion development.
I am depositing a copy of the consultation in the Libraries of both Houses.
[HCWS445]