UN Climate Change Conference: Government Response

Clive Betts Excerpts

Wednesday 16th January 2019 Westminster Hall

[Anna McMorrin]

I thank the Minister for her intervention. I think that it is a wider point, and a very important one, to talk about the impact that Brexit will have on our domestic legislation here in the UK. For example, the loss of EU environmental legislation, which covers roughly half of the UK’s emissions reductions up to 2030, and losing our place as a key advocate of bold action within the EU, will demolish, at a single stroke, Britain’s role as a key player on climate change. We cannot solve this climate crisis as a single nation; climate change recognises no borders.

As I saw with my own eyes in the Arctic recently, climate change is already wreaking havoc on our world, our communities and those who need us most, and it is only set to get worse. It is time for the UK Government to face up to the imminent risks and show leadership. Our response to climate change will define us for years to come. It must be a bold part of the work of every single Government Department, leading the way from the top down to the bottom up. We are rapidly reaching crisis point, and we need to start acting like it.

[Mr Clive Betts (in the Chair)]

I think I have three hon. Members who want to catch my eye, which means basically five minutes each, if they could keep to that. I call Mary Creagh.

[Mary Creagh (Wakefield) (Lab)]

Thank you very much indeed for that guidance, Mr Betts, and for your courtesy in calling me to speak. I am aware that I arrived a little late, but I was doing some media on the report on sustainable seas by the Environmental Audit Committee. I was over the road to do that, before running here through the rain.

May I begin, Mr Betts, by saying what a pleasure it is to serve under your chairmanship today, and to have such a brilliant and committed member of the Environmental Audit Committee as we have in my hon. Friend the Member for Cardiff North (Anna McMorrin)?

Safeguarding the future for the planet and for our children is one of the defining challenges of our generation. The climate change conference—COP24—was a real opportunity to take decisive action in this area. I will very quickly focus on the scale of the challenge, the solutions that are already available and, of course, the finance that we need to put behind any action.

I will start with the Arctic, which I and the rest of the Environmental Audit Committee visited last year. We saw for ourselves the unprecedented extreme weather that the Arctic faces. The climate is a closed system, so when we warm the ocean, the climate redistributes that heat through the winds, the currents and our weather. We are performing a giant experiment on ourselves, our planet and our oceans, and it really is a very dangerous experiment.

In 2018, the Arctic experienced its third winter heatwave in a row. During winter polar nights—so no sunshine—there were temperatures of 28°C in the Arctic this year. We know that the average temperature rise of 2°C disguises the extremes in temperature that we see at the North Pole. For example, a 1°C rise at the Equator means a 7°C rise at the North Pole, and the temperature in the Arctic has already risen by 5°C, which has huge impacts on the mammals that live there, and of course on the humans who live there, even down to the way that they build their houses.

In this country, we had the “Beast from the East” in March 2018. We were proud to launch our inquiry into UK heatwaves with the snow lying thick on the ground. The Committee Clerk turned to me and said, “Chair, nobody wants to give evidence about heatwaves when there’s snow lying on the ground”, and he was right. But we struggled through that and launched our heatwaves report in 35 °C of searing heat, and we had the hottest ever summer in England. These are extraordinary times. I was walking in the Peak District above Sheffield, Mr Betts, up Lost Lad hill, and I looked at the Derwent reservoir, which was only 75% full, and the village of Derwent and its church spire were now visible.

The world’s leading scientists have warned us that we have just 12 years to avoid devastating climate change. They gave us a report that spelled out the difference between a 2°C rise and a 1.5°C rise. Under a 2°C rise, we lose all the world’s coral reefs; under a 1.5°C rise, we lose “just” 90% of them. That shows the damage that is already baked into the best-case scenario. Of course, in the UK heatwaves raise the spectre of heat-related deaths, such as those in 2003, when there were 2,000 excess deaths in just 10 days. We have never known so much and we have never realised before just how much we have to do.

Our Committee produced a report on greening the finance system and we heard that the carbon bubble presents a huge systemic risk to our investments and our pensions. It presents liability risks, as oil and gas companies are potentially sued; some of them are being sued by the state of New York for some of the damaging issues that came with Storm Sandy. It presents physical risks to us, including the risk of tidal and coastal surge, and of course the transitional risk. If someone’s pension is invested in an oil and gas company and that company cannot get its reserves out of the ground without reaching 4°C, 5°C, or 6°C of warming, their pension is essentially valueless.

We need to move very quickly to green the financial system to avoid a carbon bubble bursting in an unmanaged way. We also need to move much more quickly to mobilise green finance into our economy: into solar, wind, and the new technology that we need.

The two tried and tested examples of carbon capture and storage come from nature: soils and forests. We conducted an inquiry into soils and globally the top foot of soils—the 30 cm of soil around the Earth—holds double the amount of carbon that is in the atmosphere, and more than all the carbon held by all the forests and the oceans combined.

Soils are absolutely critical and I am really glad that the Government signed up to the 4 parts per 1,000 initiative last year. What concerns me is that we do not have a route map to achieve that goal. We have got some great scientists in the UK; they know what the soil content has been over the last 50 years. We need to start paying farmers, through the common agricultural policy, or whatever succeeds it if we leave the European Union, to make sure that we measure, monitor and increase our soils’ carbon content.

I agree wholeheartedly with my hon. Friend the Member for Cardiff North about withdrawing the finance for feed-in tariffs and the difficulties that the green deal has had, including the problems that people have had with it, and the scrapping of the energy efficiency measures in our homes. If we want climate solutions, we must also have climate justice, which means keeping people warm and safe in their homes.

The climate conference was held in Katowice, a coalmining region of Poland. Can I make a bid that, if the UK holds the climate conference in 2020, we hold it in the coalmining region of Yorkshire, which is an example of how we can swiftly move to the new green economy and create jobs in the process? I am sure that Sheffield, Mr Betts, Wakefield and Leeds would be happy to argue the toss over who should win that bid.

[Mr Clive Betts (in the Chair)]

I call Alex Sobel to speak, but only for four minutes now, I am afraid.

--- Later in debate ---

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

It is a pleasure to serve under your chairship, Mr Betts, and I again congratulate the hon. Member for Cardiff North (Anna McMorrin) on securing the debate. The UK has historically played a leading role in global climate negotiations; for example, it pressed for the 1.5° ambition in the 2015 Paris agreement. However, in the words of the former UK climate envoy, John Ashton,

“Rule one of diplomacy is, walk your talk: otherwise people stop listening”.

The tragedy is that in recent years, the global leadership role that the UK played on the international stage has been undermined by the systematic dismantling of climate policy at home. We have heard some of this already, but since 2010, Ministers have scrapped zero carbon homes; sold off the Green Investment Bank; made it almost impossible to build onshore wind farms; cut off support for solar power; made no progress on phasing out fossil fuel subsidies; gone all out for fracking, which is quite extraordinary given that that is a whole new fossil fuel industry; and in the area of energy efficiency, which is all too often a poor cousin in these debates, we are woefully behind on some targets—for example, retrofitting some of our most energy-inefficient homes. According to the Institute for Public Policy Research, we could be over 50 years late in getting that target sorted.

The impact of those failures is incredibly real, and we have heard from the Committee on Climate Change that once again, the UK is way off meeting its fourth and fifth carbon budgets. “With each delay,” it says,

“we stray further from the cost-effective path to the 2050 target.”

Beyond that, the sad truth is that even if all those policies were still active, it would not be enough. The problem is that our economy is built on the assumption that precious minerals, fresh air, clean water and rare species can magically regenerate themselves in an instant, and that somehow the Earth will expand to meet our ever-expanding use of resources. The reality is that we have stretched the planet beyond its limits and, without a bold reimagining of how our economy works, it will simply not be able to spring back into shape. The UN 1.5° report made clear that we need to cut emissions to net zero by the middle of this century, but the global economy is set to nearly triple in size during that same period. That makes the job of decarbonisation massively greater.

Greta Thunberg, a 15-year-old climate activist, told world leaders at COP24 in December that

“if solutions within the system are so impossible to find, maybe we should change the system itself.”

She was right. Of course, we need massive investment in renewable energy and energy efficiency and a new, clean public transport system, but we also need to think far more boldly about the way we integrate concerns about our natural world in the way we run our economy. Crucially, we need to limit the resources that we all use. Those in the global north who can radically reduce how much they consume and throw away must do so. We must find new and innovative ways to recycle and reuse materials; there is much talk of dematerialisation and decoupling from energy and consumption, but the truth is that there is no example anywhere in the world of absolute decoupling in anything like the timeframes that we will need if we are serious about getting off the collision course that we are currently on with the climate crisis. We have a huge job of work in front of us.

I am really grateful for this debate, and I want to add one last thing: my quick scan of Hansard suggests that over the past year, there has been only one debate in the main Chamber on climate change. That is not good enough. I hope that we can reinvigorate the all-party parliamentary climate change group, and I invite everyone at this debate to join that APPG so that we can be a bigger force in this place for better climate policy.

[Mr Clive Betts (in the Chair)]

We will now hear from the Front Benchers. The Scottish National party and the Labour party spokespeople each have five minutes, and the Minister has 10 minutes.

Oral Answers to Questions

Clive Betts Excerpts

Tuesday 8th January 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

It is right that the FRC refers any concerns it has relating to the insolvency case to the ICAEW, which is a recognised professional body that regulates insolvency practitioners. In this case, I understand that the ICAEW has considered the issues put forward and is investigating a number of matters. I will happily meet my hon. Friend to discuss this issue again, as I already have. It is right that we investigate any concerns that British businesses have about the regulations.

[Mr Clive Betts (Sheffield South East) (Lab)]

T2. Fracking activities in Lancashire have recently had to be suspended because earth tremors triggered the traffic lights system. As a result, the Minister has said that she is now looking at whether that system should be relaxed. Will she tell us what she is thinking, and will she give us an assurance that there will be full consultation with all stakeholders before any change is made, and that the matter will be brought back to this House for the approval of Members?

[The Minister for Energy and Clean Growth (Claire Perry)]

I think I have answered a similar question before, although not from the hon. Gentleman. I have absolutely no plans to change the traffic lights system. The current fracking proposals being tested in Lancashire right now were developed with that system. The fact is that that system is working and being triggered even by micro-tremors; the hon. Gentleman will know that we have had some great evidence from the University of Liverpool as to how small the tremors actually are. If we are to take forward what could be a very valuable industry, it is only right that we do so with the toughest environmental regulations in the world, so I say again that there are no plans from the Government to change the traffic lights system.

Nuclear Power

Clive Betts Excerpts

Monday 4th June 2018 Commons Chamber

[Greg Clark]

I anticipated the direction in which my hon. Friend was heading. He will know that, as we have done in this case, we need to offer and obtain value for money for the taxpayer and the consumer. Just as in this case, that is part of the assessment to be made of the tidal lagoon proposal.

[Mr Clive Betts (Sheffield South East) (Lab)]

One aspect of a future nuclear strategy the Secretary of State did not deal with is small modular reactors. I have written him several emails about this. Davy Markham, in my constituency, is one of the few places that can actually machine the largest parts for these reactors, but it is in receivership. The receiver is selling off this capacity, and currently it looks as if it will go overseas. Will the Secretary of State take another look to see what role he and his Department can play in drawing up a plan to save that capacity for this country and make sure it forms an important part of his future industrial strategy, rather than simply being sold off to the highest bidder overseas?

[Greg Clark]

I referred in my statement to the nuclear sector deal and, in particular, investment in innovation in advanced nuclear technologies, which is the area the hon. Gentleman mentions. That initiative, which we will launch with the sector, is forthcoming, and of course I am happy to meet him to discuss the firm in his constituency.

Hydraulic Fracturing: North East Derbyshire

Clive Betts Excerpts

Wednesday 22nd November 2017 Westminster Hall

[Lee Rowley]

I understand the point that the hon. Lady is making, but I am not sure that I necessarily agree with her conclusion. There have obviously been some places where the planning inspector has rejected the rejection of the planning authority, but in others the planning authority accepted the application in the first place or the planning inspector has not yet made an absolute decision. I do not think it is as cut and dried as the hon. Lady suggests.

I have no doubt that I will be labelled a “nimby” for what I am saying in this debate. It might be said that I do not like it just because it happens to be in my part of the world and that I would not be here right now if it were not for the fact that the field that it is being proposed to dig up is in the middle of my constituency. Many of my constituents would have absolutely no time for those sentiments. North East Derbyshire is not full of nimbys. We have spent most of the past four centuries digging up coal, oil and gas in order to support people, to heat their homes, to allow them to drive their cars and to enable them to ensure that their factories still work, and we have lost men, sacrificed health and scarred our landscape as a result. On a personal level, both my grandfathers worked down the pits; one died as a result of the health injuries that he incurred down there, and the other lost his leg. Many of my constituents worked in the production of energy for many years. The last coal mine in my area closed within living memory. I have sat in living rooms that have lamps from 40 years ago, collected when the mines were still open, surrounded by the memorabilia of those coal mining areas, which are now saying that they do not want fracking in their part of the world.

We are not nimbys. We have looked at the proposal in our area and we have concluded that Bramleymoor is a thoroughly inappropriate place to undertake this activity. We have rationalised, for good and honest reasons, why we do not want the kind of industrialisation that this would bring. Some in my area have gone further and turned against fracking as a whole; a number would ban it. Whatever the disparate reasons—I do not concur with all of them—we are stronger together as a group and we stand as one and say in unison: we do not want the Bramleymoor Lane application; we do not need it; and we should not have it.

[Mr Clive Betts (Sheffield South East) (Lab)]

Does the hon. Gentleman agree that one of the biggest downsides to fracking is the amount of traffic movements involved? While this application does not directly impinge on my constituency, if contractors take a different route through Ridgeway village, it could cause major problems for my constituents as well.

[Lee Rowley]

I absolutely concur. I will come to traffic in a moment, but I understand that if this application goes ahead, the traffic management plan is likely to propose that it goes away from the hon. Gentleman’s constituency. However, I cannot imagine the concerns that lorries going round 90° bends and down one-way streets would create in Ridgeway and Ford, were that to happen.

As I said, the location of this proposal is Marsh Lane, which is a small and picturesque village in my constituency with approximately 800 residents, in the stunning Moss Valley just south of Sheffield. Those constituents have been hugely welcoming of me since my election last June. The village has two pubs, a bustling community and a primary school of about 100 children. This proposal would be just a few hundred metres from where those primary schoolchildren play on a daily basis.

Near Marsh Lane, and also substantially affected, would be the villages of Apperknowle and Unstone, the suburb of New Whittington, the towns of Dronfield and Eckington, the hamlet of Troway and the village of Coal Aston where, if this goes ahead, it is expected that thousands of lorry movements will traverse narrow streets, go round the sharp country bends—as the hon. Gentleman talked about—and go past the frontage of hundreds of houses in order to enable the activities taking place down the road. By any measure, Bramleymoor Lane is a thoroughly inappropriate place to frack.

Picture the brow of a gentle hill, which can be seen for miles around. If this application is approved, a 60 metre-high drill rig will go on the brow of that hill for months to enable the initial drilling. Even when that drilling rig is removed—I accept that it will not be there for the entire time—the planning application confirms that up to 17 different bulky and highly visible items would remain there for up to five years: a 2 metre-high fence, 4.8 metre-high bunding and fencing, multiple 3 metre-high cabins, acoustic screening up to 5 metres in height, four lots of security cameras of 5.5 metres high, a 9 metre lighting rig, a 10 metre-high emergency vent, a 4.5 metre-high pressure control and a 4 metre skid and choke manifold. This is not a minor incursion into a landscape with similar features. It is the wholesale industrialisation of the Derbyshire countryside, which has never, at least on public record, seen the kind of changes that are proposed. I have spent time in the Derbyshire Record Office going through and looking at maps, and as far as I can see Bramleymoor Lane has had three centuries of agriculture and nothing like the kind of industrialisation that is proposed.

The effort required to start this process is large, imposing and disruptive. If it happens, there will be 14,000 vehicle movements over the next five years. Various road layouts leading to the site would need to be reconfigured, not because the cars using them every day need that to happen but because the huge lorries that would need to come through to set this up cannot get around the corners and the paraphernalia that is already on the road. There would be the removal or reduction of an undetermined amount, but probably up to half a kilometre, of mature hedgerow that has probably been in that location since 1795, when the enclosure Acts created the aesthetic in that part of the world. There would be the installation of permanent lighting across the site, just a few hundred yards away from families and houses, and many more things I could mention, including the impact on animals, flora and fauna; the loss of land likely to have been in agricultural use for centuries; noise impacts; and the potential for air pollution. Whatever our view on fracking, if there was ever a place for it not to go, it would be here.

When I speak with residents they are often in tears about this issue. They are reasonable people and they understand that the United Kingdom needs to make progress. They understand that the Government have a challenge to ensure that we have the energy we need to heat our houses, and they understand that we need to ensure the safety and security of our energy supply going forward. But, respectfully, they are unconvinced by this proposal. A petition on this specific topic has now reached 88,000 signatures. There are 5,000 objections to the planning application alone.

Yet it is my final point that is of particular concern to me, and it was referenced briefly a moment ago. Everything I have described so far is for a single application for a period of up to five years. I hope it does not go ahead; but if it does, my concern is about the wider impact if that drilling is successful and it is determined that Marsh Lane, Bramleymoor Lane, my constituency as a whole and the neighbouring constituencies are appropriate places to frack.

The drilling companies themselves have indicated that, in such an instance, the kind of impact that I have described would be multiplied many-fold over the near area. Up to 30 wells could be accommodated within a 10 km radius, according to the applicant’s own leaflets, of which I have copies. That equates to a concrete well pad, machinery and rigs for some of the time, and all the impacts every couple of kilometres, which I have just described. In addition, new pipelines and significant traffic movements to bring in water will be necessary—tens of thousands of vehicle movements, multiple fracking sites and myriad pipelines, all primarily in rural areas. Whatever our view on fracking, that is a wholescale change to our landscape and an even more pronounced reindustrialisation of an area. Such a planning application for anything else—housing, business or commercial—would be rejected.

The motion states that the House has considered the potential effect of hydraulic fracturing in North East Derbyshire, so we need to consider the noise, the pollution, the traffic, the disruption, the change, the pipelines, the rigs, the well pads, the security, the fences and the impact on that beautiful part of the world. The residents of my constituency have considered it, I have considered it, the villages around Marsh Lane have considered it, and we do not want it.

Bombardier

Clive Betts Excerpts

Tuesday 10th October 2017 Commons Chamber

[Greg Clark]

Yes.

[Mr Clive Betts (Sheffield South East) (Lab)]

As I understand it, the Secretary of State has said that the preferred solution would be a negotiated settlement with Boeing—an all-out war between the UK and Boeing is clearly in no one’s interest. He rightly referred to the development of Boeing’s first manufacturing output facility in Europe—it is in my constituency and work has started on it—but Boeing has been an essential and original player in the development of advanced manufacturing facilities in Sheffield and Rotherham for the past 10 years. It is crucial that we do everything we can to defend and protect the jobs at Bombardier, while doing nothing to compromise the possibility of further development and jobs from Boeing in Sheffield.

[Greg Clark]

The hon. Gentleman makes an important point, and I know from having attended the meetings in Sheffield just how important and welcome that investment has been. Nevertheless, we need to be absolutely clear that although advanced manufacturing institutions such as those in and around Sheffield are being established, we expect, just as the Canadian Government do, that if companies participate in institutions that promote the UK aerospace sector, they must not at the same time recklessly damage another important part of that sector.

UK Decarbonisation and Carbon Capture and Storage

Clive Betts Excerpts

Tuesday 24th January 2017 Westminster Hall

On resuming—

[Mr Clive Betts (in the Chair)]

The sitting is resumed and the debate can continue to until 4.10 pm.

[Philip Boswell]

Thank you, Mr Betts. I will continue with my quotation from Matthew Bell:

“We have a 15 to 20-year time horizon with reasonable certainty for the role of gas, then we have an uncertain period—is that enough for investors to decide to go ahead with their projects? There is a way of clarifying that uncertainty, and that is for the government to be clear on CCS.”

There is a consensus from watchdogs and experts alike. They agree that the Government have the opportunity to get this right. Getting it right, including carbon capture and storage, will be more economical for the UK in achieving our climate change targets, while simultaneously creating CCS as a leading, technologically advanced industry within the UK.

What of the costs of meeting our climate change commitments without CCS? The National Audit Office’s report of 20 January 2017, “Carbon capture and storage: the second competition for government support”, found that carbon capture and storage “formed an important part” of the Department for Business, Energy and Industrial Strategy’s role in reducing carbon dioxide emissions. The report goes on to state:

“Given its potential to decarbonise different sectors, many stakeholders still regard CCS as being critically important to the UK achieving its decarbonisation target. It is currently inconceivable that CCS projects will be developed without government support.”

That support would enable investment in CCS, creating a large-scale demonstration of CCS technical and commercial viability, and leading to further-improved CCS schemes in the UK and the development of CCS as a successful industry. Although the report is constrained by the very specific NAO brief, which was to assess how the Department ran the second competition before its cancellation, it is none the less unequivocal in its support for CCS as the least-cost route to decarbonisation.

What of the most detailed report focused on the determination of whether CCS offers the solution of lowest-cost decarbonisation? I am referring to “Lowest Cost Decarbonisation for the UK: The Critical Role of CCS”, which is cited as Oxburgh 2016, a report from the parliamentary advisory group on carbon capture and storage to the Secretary of State for Business, Energy and Industrial Strategy. The report was requested by the then Secretary of State for Energy and Climate Change, the right hon. Member for Hastings and Rye (Amber Rudd). Its terms of reference were to assess the potential contribution of CCS to cost-effective UK decarbonisation and to recommend accordingly to the Secretary of State by the end of summer 2016.

The report was delivered by Lord Oxburgh and his team in September 2016. The group comprised some of the most qualified and experienced representatives of politics, industry and academia. They did not carry out primary research but instead, given the substantial volume of work already published on the subject, focused on synthesising experience and knowledge into an optimum recommendation. They also considered walking away from CCS as an option.

The report found six core recommendations that are worth repeating in full:

“1. Establish a CCS Delivery Company…A newly formed and initially state-owned company tasked with delivering full-chain CCS for power at strategic hubs around the UK at or below £85/MWh on a baseload CfD equivalent basis. Formed of two linked but separately regulated companies: ‘PowerCo’ to deliver the power stations and ‘T&SCo’ to deliver the transport and storage infrastructure, the CCSDC will need c.£200-300m of funding over the coming 4-5 years.

2. Establish a system of economic regulation for CCS in the UK…The government will establish a system of economic regulation for CCS in the UK which is based on a regulated return approach. This will draw heavily on existing regulatory structures in the energy system and hence include: a CCS Power Contract based on the existing CfD or capacity contract to incentivise CCS for power…

3. Incentivise industrial CCS through Industrial Capture Contracts…The Industrial Capture Contract, will be funded by the UK government and will remunerate industry for capture and storage of their CO₂. It will be a regulated contract which will have a higher price in the early period in order to deliver capital repayment in a timescale consistent with industry horizons…

4. Establish a Heat Transformation Group…The Heat Transformation Group will assess the least cost route to the decarbonisation of heat in the UK (comparing electricity and hydrogen) and complete the work needed to assess the chosen approach in detail. The HTG has a likely funding need of £70-90m.

5. Establish a CCS Certificate System”—

this is completely self-explanatory—

“Government will implement a CCS Certificate System for the certification of captured and stored CO<sub>2.

6. Establish a CCS Obligation System…Government will also implement a CCS Obligation from the late 2020s as a means of giving a long-term trajectory to the fossil fuel and CCS industries. This will put an obligation on fossil fuel suppliers to the UK to sequester a growing percentage of the CO2 associated with that supply.”

Climate change bodies, politicians and industry alike almost all agree that CCS is the optimum low-cost option for decarbonising the UK, but it is generally accepted that only Government intervention will stimulate it in the UK. I therefore ask the Minister please to consider carefully carbon capture and storage as part of the Government’s new, hands-on, interventionist industrial strategy for Britain.

What is the way forward? The way to a greener industrial future and lowest-cost decarbonisation for the UK without doubt includes carbon capture and storage. The proven technology continues to improve and we should not be frightened to embrace the new technologies that continue to spring up around CCS, such as Toshiba’s new 25-MW-gross electric turbine, the headline for which reads:

“Toshiba Ships Turbine for World’s First Direct-Fired Supercritical Oxy-Combustion CO2 Power Cycle Demonstration Plant to U.S.”.

That supercritical CO2 power-cycle system achieves the same level of generating efficiency as a combined-cycle power plant. It separates and collects CO2 at high pressure, eliminating the need for separate carbon capture equipment or processes, and secures full CO2 capture—I repeat: full CO2 capture—without any increase in the cost of electricity, using supercritical CO2 as a working fluid to generate low-cost electricity while eliminating emissions of nitrogen oxides and other pollutants. We must embrace such technology or risk falling further behind or completely missing out on a unique opportunity.

Where should we develop the first CCS project? We already have some shovel-ready projects.</sub>

--- Later in debate ---

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

Order. Five hon. Members wish to speak, and I want to start the Front-Bench wind-up speeches at 3.38 pm. That gives us about 35 minutes—about seven minutes each. Will Members keep to that guideline?

--- Later in debate ---

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I was going to say that the debate had been characterised by a mighty cross-party alliance in favour of CCS, which I heartily concur with, but obviously there is this afternoon one exception to that. I want briefly to address that exception: the hon. Member for East Antrim (Sammy Wilson).

The issue is basically about the imperative to decarbonise our energy supplies, and it is an unashamed imperative because we know that climate change is real and that, if we do not do anything about it, that will be disastrous overall, for us all. Indeed, we can go back, in terms of alternative costings, to the Stern report. Stern said that doing nothing on climate change would probably consume 5% of our GDP, whereas doing something about it might consume 1% of our GDP. It is a very substantial investment for the future and rather a good bargain overall, in terms of what we might put in and what we might get out.

Of course, the same applies, in the context of the energy sector, to CCS. The question is really how we decarbonise our energy supplies, using different potential scenarios, and what would happen if we did not take CCS into account as far as decarbonising our energy supplies was concerned. It is not that we cannot, but it is about the relative costs of doing that with different technologies. It is not me saying this: it is the Committee on Climate Change in setting out its scenarios for the fifth carbon budget, which, of course, the Government have now adopted as a way forward over the next period.

We have basically adopted a scenario for energy decarbonisation that has at its centre, and as part of that fifth carbon budget, that energy emissions should be below 100 grams of CO₂ per kWh by about 2030. The Committee on Climate Change says that the investments we have at the moment give us an emissions intensity of about 250 grams of CO₂ per kWh. If we close remaining coal-fired power stations and replace them with gas-fired generation in the short term, that would take emissions marginally further down to 190 grams of CO₂ per kWh.

Of course, if all the existing nuclear power stations were also replaced by gas, and gas met new demand subsequently, emissions intensities would rise to over 300 grams of CO₂ per kWh by 2030. The Committee on Climate Change goes on to say:

“Commercialisation programmes for CCS and offshore wind alongside lowest-cost investments in the 2020s in a mix of new nuclear, onshore wind, solar and offshore wind rather than expanding gas generation would bring emissions intensity down to below 100 gCO₂/kWh.”

That is a very straightforward and exact road map for where we need to go in terms of energy decarbonisation.

Of course, if we did not have CCS in that scenario, we would have to do a lot of different things to replace what CCS would have done by physically taking the carbon dioxide out of the process and putting it into the ground. We would have to do something else to take that carbon dioxide out of the process. That could be a lot of additional energy efficiency or it could be a lot of new, different low-carbon plant.

We come to the question of what the alternative costs might be if we did not have CCS in the process. Indeed, the NAO report on the carbon capture and storage pilots, which hon. Members have mentioned this afternoon, clearly sets out that meeting the 2050 target for decarbonisation of our whole system, without CCS, would

“cost up to £30 billion more in the power sector alone”.

Hon. Members have mentioned what that means in terms of an annual basis, but that is the overall cost. Interestingly, the NAO cites where that particular figure comes from: of course, it came from the Department of Energy and Climate Change in 2015.

We are clear about the ends, but we are not currently clear about the means. That is where the scandalous cancellation of the two pilot projects—which, by the way, had already been included in those Committee on Climate Change estimates I just mentioned, so we are even further back from the starting line than we would otherwise have been—puts us in terms of having, at the moment, the possibility of ends.

We have agreed the fifth carbon budget. The Government are due to produce their low-carbon plan some day soon; I think it was supposed to be last year and then it was supposed to be this spring, but I see from the industrial strategy announcement yesterday that the target is now some time in 2017. I am interested to know from the Minister whether that low-carbon plan is going to be published in the early part of 2017, as I hope. If it is, I would be extremely surprised if it included no mention of the key role CCS will have to play in making that plan a reality. That is the truth of the matter: without CCS, it is very difficult to envisage a lot of the systems that we talk about in terms of low-carbon energy as a whole—not just low-carbon electricity—working very well.

My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) mentioned, among other things, the possible role that hydrogen might play in the future heat economy. Hydrogen can be made by electrolysis of spare electricity but it is more likely that, during the earlier period, it is going to be made using existing infrastructure by steam methane reformation. That gives us a potent fuel in terms of sorting out the decarbonisation of our heat structures, and possibly the substantial decarbonisation of our transport structures, but CO₂ is a by-product that needs sequestering in the process, otherwise it is not low-carbon at all.

The essential role that carbon capture and storage will play across the board in our decarbonised, low-carbon energy economy is without question. The question is: what do we do about it? We have heard mention this afternoon of the estimable Oxburgh report, which was essentially commissioned by Government after the closing down of the pilot schemes. Without wishing to repeat some of the details of the Oxburgh report that have been mentioned this afternoon, I would say that the report does not talk about pilots and does not talk about ways of trying to introduce bits of CCS here and there. It talks about a very practical route forward, which is costed and relatively low-cost, for what Government need to do—exactly in line with what we think we are doing at the moment about industrial strategy and how we move that forward—to make carbon capture and storage a part of our energy landscape over the next period.

I commend anybody who has not read that report to look at exactly what it says. That is exactly what it does: it sets out how we move forward over the next period to integrate carbon capture and storage with various measures as part of our processes. I ask the Minister whether the Government intend to respond to the Oxburgh report in the near future. If they do intend to respond, what form is that response likely to take? I hope that when the Government decide to respond, they respond in a very positive way because that is what we need right now. Undoubtedly, we need to decarbonise radically. Undoubtedly, carbon capture and storage has to be a part of that decarbonisation. Setting out a way forward for making carbon capture and storage a reality in our energy firmament is, it seems to me, a very high priority for Government at the moment.

[Mr Clive Betts (in the Chair)]

I thank all hon. Members for being so co-operative with the time available to make sure that we got everyone in and they had a full opportunity to contribute. I now call the Minister.

Steel Industry

Clive Betts Excerpts

Thursday 3rd November 2016 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I, too, thank my hon. Friends the Members for Middlesbrough South and East Cleveland (Tom Blenkinsop) and for Redcar (Anna Turley) for securing this debate, and for their sterling efforts on behalf of the all-party group on steel and metal related industries, which is out today in some force.

Last week, the Community union, which does an absolutely fantastic job for its members, quite rightly praised steelworkers in a statement, saying:

“We believe the workforce should be commended, in the strongest terms, for continuing to deliver for Tata throughout this exceptionally difficult period and indeed restoring previously loss making parts of the business to profitability”.

I start with that quote because it is right that we always acknowledge what a difficult time this is personally for those who work in our steel industry. We must never underestimate the effect the continued uncertainty is having on steelworkers and their families. I know that from talking to those who work for Tata at Llanwern and at Newport Orb. A steelworker emailed me last week to say:

“We feel forgotten about and we have no news on the Government’s and Tata’s plan for the pension, no news on where we stand on the future on any proposed merger, no answer on the deficit etc. Things seem to have come to a standstill and there are no answers coming from Parliament or Tata”.

That very much echoes what my hon. Friend the Member for Aberavon (Stephen Kinnock) said at the start of his speech. Aberavon and Port Talbot’s fortunes are very much linked. I absolutely concur with what my hon. Friend said about that feeling of uncertainty and how difficult it is for people. Many steelworkers feel that their lives are on hold. I hope the Minister understands that and takes it away from the debate.

We have in this place relentless debates, questions and statements about steel. Just yesterday there were two fantastic questions at Prime Minister’s questions from my hon. Friends the Members for Cardiff South and Penarth (Stephen Doughty) and for Penistone and Stocksbridge (Angela Smith). In response, the Prime Minister said:

“This Government have stood up for British-made steel, and we have taken a number of measures”.—[Official Report, 2 November 2016; Vol. 616, c. 880.]

She also said,

“we recognise both the importance of steel and the importance of Tata in the United Kingdom.”—[Official Report, 2 November 2016; Vol. 616, c. 886.]

On the lack of clarity about Brexit, she said:

“I am very clear that what we want to achieve is the best possible deal”.—[Official Report, 2 November 2016; Vol. 616, c. 880.]

We appreciate those words, but we need more detail and more commitment from the Government, with stronger words and stronger action.

Workers in my constituency want to know that the Minister is fully engaging with the short-term urgency of the problems facing the Welsh steel industry. There are bits of good news, but the underlying problems have not gone away, as many other Members have said. We are still waiting for assurances from the Government about Port Talbot, which will affect Llanwern, and for any news on the joint venture between Tata’s strip products division and ThyssenKrupp, which could affect Orb in my constituency. If there is such news, what assurance can the Government give that commitments will be made on jobs, investment and the continuation of primary steelmaking at Port Talbot and across south Wales?

The Government lobbied against the EU imposing tariffs on the dumping of Chinese steel. The Prime Minister did not even put Chinese steel dumping on the agenda when she first met the Chinese Prime Minister. Electricity prices are still a huge issue in the UK, with a disparity of £1 million a week between the UK and Germany, which has an effect on competitiveness. As many Members have said, despite the procurement guidelines, French steel is still being imported for Trident renewal. I know we will all be watching as large infrastructure projects get the go-ahead. The Government cannot let up on ensuring that all major procurement projects—from rail to airports and tidal barrages, which will be important for places such as Newport if Swansea bay tidal lagoon goes ahead—use British steel.

As every one of my hon. Friends has said, the Nissan announcement is brilliant news, but where is the Brexit plan for the steel industry? So far, the Secretary of State for International Trade has said that he has no plans to support the steel industry with trade defence instruments. When combined with the other uncertainties Brexit has caused, that is a major concern. Brexit has many other implications for the industry, so we want similar assurances to those given to Nissan.

In brighter news, the Welsh Government are thankfully doing all they can with the powers and levers available. I very much welcome the active work of Ken Skates, the Welsh Government’s Cabinet Secretary for Economy and Infrastructure, who through Business Wales is supporting the industry through Welsh public sector infrastructure and construction projects.

I appreciate that it is not all gloom and—I will make this point before someone intervenes on me to make it—I also appreciate the point about primary steelmaking. Liberty Steel now employs about 1,500 people, including in the steelworks in my constituency and the two Scottish steel plate mills, one of which I know opened recently in the constituency of the hon. Member for Motherwell and Wishaw (Marion Fellows). Liberty Steel also has the SIMEC Uskmouth power plant and it is involved in the tidal lagoon initiatives, which were mentioned earlier and which are very important, not only for Swansea but, further on down the line, for places such as Newport. Liberty Steel has a long-term, sustainable strategy of steelmaking in the UK and actively invests in steel, power and the downstream industries. As we heard earlier, that is all built around a green steel vision, whereby Liberty Steel is working towards producing steel made from recycled scrap metal and powered by renewable power. That is an important addition to the traditional steelmaking industry.

Finally, I take this opportunity to invite the Minister to visit Newport East to see the site in my constituency and see at first hand the plans for Liberty.

[Mr Clive Betts (in the Chair)]

It is now time for the Front-Bench spokespersons; no more than 15 minutes each, so that there are a few minutes at the end of the debate for the mover of the motion to wind up.

--- Later in debate ---

[Gill Furniss]

I thank my hon. Friend for that point. Thirdly, I want to give credit where credit is due and thank the Government for the guidance published in October last year, which has put some emphasis on supporting British steel in major procurement projects. However, despite the good intentions behind that move, we are still seeing major contracts going to foreign steel manufacturers, most famously the new Trident submarines, which are being built with French steel. Had a British firm been engaged to supply the steel, more than 1,000 jobs would have been supported, but alas, that is not the case. Will the Minister commit to ending the exemption from the guidance of tenders funded through contracts for difference? Will he look at strengthening the guidance better to reflect the social and economic consequences of current procurement decisions? Will he follow the examples set by the Scottish and Welsh Governments and publish future pipelines of projects so that British steel manufacturers can prepare themselves to fulfil future demand?

Fourthly, there is the issue of trade defence mechanisms and Chinese dumping. Whatever else Brexit may mean, it is absolutely vital for the industry that we avoid any sort of punitive restrictions on access to the European market. Last year, more than two thirds of our steel exports went to EU countries and our own steel industry is closely bound up with the Dutch plant at IJmuiden. Our trade defence mechanisms depend so much on what the final Brexit deal looks like, but whether or not we find ourselves bound by the rules of the single market, it is critical that the UK stands up for fair trade globally. While we still have a voice in the European Commission, we should be throwing our weight behind the scrapping of the lesser duty rule, which is hamstringing all efforts to counteract Chinese dumping, and opposing China’s application for market economy status, which will kill those efforts stone dead. Free trade does not mean fair trade and until the Government wake up to that reality, the steel industry will never have the level playing field it is asking for.

On the industrial strategy, the difficulties that the steel industry has with energy prices, business rates, procurement problems and unfair global trading practices are all issues that the Government need to address immediately. There are swords dangling over the industry’s head, but if British steel is going to not just survive but thrive, it needs a proper long-term industrial strategy to put it on the right track for the future. I am glad that the Department for Business, Energy and Industrial Strategy has commissioned research into the future capacity and capability of the steel industry. I and no doubt all of us here are looking forward to its findings next year.

Every job in steel supports three in the supply chain and the industry really is the cutting edge of UK manufacturing. Most of the types of steel being produced were not even in existence 15 years ago. Steel will play a central role in our transition to a low carbon economy if we manage it correctly and it can continue to lead the world in terms of quality and innovation. Will the Minister reassure us that BEIS will put steel at the heart of its industrial strategy?

Steel is not a dying industry. It is not a relic of a bygone era. It may be a proud part of our industrial past, but it also has the potential to be a dynamic part of our economic future. Without it, we will not only have lost an industry—make no mistake—we will have lost our entire manufacturing base. No one is asking for special treatment; we are asking for a level playing field that will allow the industry to move forward with confidence. Four months on since we last debated this issue, the steel industry is still in crisis. I urge the Minister to show more energy than his predecessors and do what it takes to save our steel.

[Mr Clive Betts (in the Chair)]

If the Minister would just allow a few minutes at the end for the wind-up speech, that would be appreciated.