Energy-intensive Industries

Debate between David Mowat and Chi Onwurah

Thursday 11th September 2014 Commons Chamber

[Chi Onwurah]

I thank my hon. Friend for putting very clearly—I should have done so myself—the position of many in the energy-intensive industries, who see the need for a long-term future for their significant investments and wish to see a more competitive transition towards it.

[David Mowat (Warrington South) (Con)]

I have been listening very carefully to the hon. Lady. To say that members of the energy-intensive industries want us to go further and faster than other countries with the green stuff is a bit of a leap. Although no one disputes that we must decarbonise, the issue we need to address—the hon. Lady has not yet done so—is the extent to which we need to do that more quickly and more unilaterally than others. That is a fair question.

[Chi Onwurah]

I think that the hon. Gentleman has misinterpreted the remarks of my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith). She said not that the energy-intensive industries seek to go further and faster, but that they recognise the need to transition to a green economy if they are themselves to have a long-term economic future in this country and globally. I certainly support that position.

[David Mowat]

I will not intervene on the hon. Lady again, but as she said that I had misinterpreted the point, I want to come back on that. The issue is that we in this country are doing things unilaterally that other parts of the EU are not doing—it is not an EU issue—and that is a problem for many of the people, including my constituents and perhaps those of the hon. Lady, who derive their income and prosperity from the 900,000 jobs in energy-intensive industries. The valid point for us to debate is the extent to which we should be out of step with other countries, including in other parts of Europe.

[Chi Onwurah]

It was of course the hon. Gentleman’s Government who introduced the carbon floor tax, but I very much agree that it is legitimate for us to discuss such subjects, which is why I was so keen to take part in this debate. The way in which the UK leads in moving to a sustainable economic future is itself an opportunity for jobs and innovation, but it should also protect our energy-intensive industries.

I shall soon bring my remarks to a close, but I wanted to say that the previous Labour Government established the Sustainable Development Commission, the Committee on Climate Change, and the Warm Front scheme to tackle fuel poverty, and they invested in low-carbon industries. The economy was growing, but the air quality in our towns and cities nevertheless improved. Our CO₂ emissions fell by 10.8 million tonnes in our final year in government, when our greenhouse gas emissions were 66 million tonnes lower than in 1997. We helped 5 million households to get better insulation and keep warm, which reduced emissions and saved consumers money at the same time.

The next Labour Government will carry on that work. We recognise that a secure, clean energy mix is vital to powering our economy, meeting our climate change obligations and protecting customers from bill rises driven by events overseas. A long-term strategy should look at and support innovative new techniques, such as carbon capture and storage and underground coal gasification. Five-Quarter, a company spun out from Newcastle university, is leading the world in looking at the development of underground coal gasification as a clean way to deliver electrical power.

My key point is that aggressive action to tackle climate change is not incompatible with a strong manufacturing base. With the right strategies and support in place, the north-east can be the vanguard for a UK that competes globally in manufacturing and labour-intensive industries, while also setting an example in tackling climate change.

Clean Coal

Debate between David Mowat and Chi Onwurah

Tuesday 28th February 2012 Westminster Hall

[Chi Onwurah]

My hon. Friend has a huge amount of experience in coal, to which I pay tribute. He raises important points about the north-east, with regard to our huge coal reserves, which he rightly mentioned, and the economic potential of coal, which I will say a little more about. I thank him for his intervention.

Like all new exciting, but as yet untried, technologies, carbon capture and storage and underground coal gasification require research, analysis and trialling to understand the risks, if any, and whether and how they might be overcome. However, I regret that I am yet to be convinced that the Government are fully committed to enabling the potential of clean coal technologies to meet our energy needs in the medium and long term and to bring to the region and the country the kind of jobs my hon. Friend has mentioned. The Carbon Capture and Storage Association estimates that by 2025 the market for clean coal could be worth £10 billion a year to the UK, with more than 50,000 quality jobs.

[David Mowat (Warrington South) (Con)]

I agree with the hon. Lady’s remarks on clean coal. She mentioned 2025, which might be a realistic time for this technology to come in, because it is unproven. Does she acknowledge an issue that all hon. Members know about, given the dependence of regions on coal, which is that the previous Government signed the EU large combustion plant directive, which mandated that, by 2015, five of our biggest coal stations will come off-stream, way in advance of any realistic prospect of CCS working? I hope, eventually, that that technology will work.

[Chi Onwurah]

I am glad that the hon. Gentleman supports clean coal technologies. The previous Government made huge efforts to ensure that we were on track for sustainable energy to meet the appropriate emissions concerns. I will mention the timetable for carbon capture and storage, on which, as he rightly says, current coal generation capacity is dependent.

We have already seen how the Department’s muddled messages have damaged the solar industry and, this week, the wind industry, so it is now vital for the Government to set out a sufficiently detailed and long-term ambition for clean coal technologies in the UK, because the prize in terms of jobs and energy security is far too important for us to fumble.