Net Zero by 2050
Gavin Newlands Excerpts(1 year, 2 months ago)
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Gavin Newlands (Paisley and Renfrewshire North) (SNP)
There seems to be no level to which this Prime Minister will not stoop in his pursuit of a culture war. Apart from the reactionary brigade on his own Benches and the flat earthers, he has angered many across the UK, from environmental groups to Tory donors and even Boris Johnson. These legal targets and deadlines have been in place for some time and, accordingly, businesses active in all these sectors will have had investment and disinvestment plans in place for years. Reducing the UK’s energy use by 15% by 2030 was a tough target, but we need tough targets if we are to rise to the situation the planet faces.
What does the Prime Minister do when faced with difficulty? He scraps the energy efficiency taskforce after just six months—it is utterly embarrassing. If this Government were so worried about the affordability of climate measures, why were they offering less support than the Scottish Government for heat pump installation, and why do they keep cancelling successive home insulation schemes? Of course, all this follows the Tories permitting a new coal mine, along with the Cambo and Rosebank oilfields. Is the Secretary of State at all surprised that two thirds of UK voters say that the Tories cannot be trusted on climate change?
Scotland’s ambitions in this area are far greater and faster. Scotland’s Net Zero Secretary, Màiri McAllan, said that the Scottish Government had been
“blindsided by these announcements, with zero consultation in advance”
and that it was an
“unforgivable betrayal of current and future generations”.
The Prime Minister’s reckless decision, combined with the United Kingdom Internal Market Act 2020, makes it extremely difficult for Scotland to hit our targets. Last week, Scotland transferred—it would be an export, post-independence—more than 400 GWh of renewable electricity to England. Many other wind power schemes are in development, including the world’s biggest at Berwick Bank, which will ensure that Scotland is one of the world’s biggest exporters of clean green energy. We also have two hydro schemes ready to go, if the Government were to put the contractual agreements in place.
Scots often ask about the costs and benefits of this unequal Union of ours. Many will now wonder if watering down our climate ambitions or the obligations we committed to at COP26 is too high a price to pay.
Claire Coutinho
I thank the hon. Gentleman for his questions. Let me be clear: there has been no watering down of our targets. We have the most ambitious decarbonising targets of any major economy, and we have not changed those at all. We are resolutely committed to them. By 2030, we will have cut emissions by 68%; the US is planning to cut its emissions by 40% and the EU its emissions by 55%. The people of Scotland will be very proud that we are the most ambitious major economy in the world, and we will work towards that together.
We have worked with the devolved Administrations since the announcement, and I am due to speak to my counterpart in due course—I have been in correspondence with him. One of the biggest things that we will do that will be helpful for the Scottish people particularly, and that will bring benefits to the renewable energy sector, is to improve the grid. Having spoken to more than 100 investors, I know it is their biggest ask, and it will be very positive, not just for Scotland but for the whole of the UK.
Net Zero: 2050 Target
Gavin Newlands Excerpts(1 year, 6 months ago)
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Gavin Newlands (Paisley and Renfrewshire North) (SNP)
It is a pleasure to serve with you in the Chair, Sir Christopher. I admire the chutzpah of the right hon. Member for Spelthorne (Kwasi Kwarteng) in bringing forward the debate. Not only did he make questionable decisions as Secretary of State for Business, Energy and Industrial Strategy with regard to Scotland’s net zero ambitions, but he was then responsible—along with the previous Prime Minister—for crashing the economy and making net zero far more expensive for this Government, as well as everyone else, due to the soaring cost of borrowing for capital investment.
The right hon. Member spoke about nuclear energy; we really need to move away from the nuclear obsession. Hinkley will now cost £33 billion and it is years late. Sizewell C, which will invariably cost upwards of £40 billion, is located on a site subject to coastal erosion and climate change sea rises. SMRs are not the answer, either. There is no approved design, they have an estimated cost of £2 billion each and Rolls-Royce is hoping for an initial order of up to 15. That is £30 billion of commitment better spent on energy-efficiency measures, storage and the electrification of heating. Nuclear is also inflexible and not a good accompaniment for intermittent renewables. Yet further investment in storage is therefore required.
The right hon. Member described pumped-storage hydro as a Scottish technology. The First Minister recently wrote to the Prime Minister urging him to agree a cap and floor mechanism that will get Coire Glas, the Cruachan extension and other pumped-storage hydro schemes up and running. They cost a fraction of what nuclear does and need only the revenue mechanism to release private capital investment.
Contracts for difference have been a success in delivering the deployment of renewables. However, in the Tories’ typical penny-wise, pound-foolish attitude, their lowest cost obsession has seen a major failure to develop UK supply chains properly. It is Tory procurement processes that have prevented Scotland from properly becoming the Saudi Arabia of wind. It is crystal-clear that a coherent industrial strategy is required. That said, I am pretty sure that we had one, and we all know what happened to it lately. The failure to invest—[Interruption.]
Sir Christopher Chope (in the Chair)
Does the right hon. Member for Spelthorne (Kwasi Kwarteng) seek to intervene?
Kwasi Kwarteng
Of course, the hon. Member is quite right that I, with the then Chancellor, suppressed the industrial strategy, but what we have done—[Interruption.] Thank you very much—I thought we had stringent rules about phones and calls and that sort of thing, but it seems to me that every time I speak, someone has got their phone on.
Anyway, we have got an innovation strategy and an energy security strategy. We have tons and tons of strategy, and that more than fills the gap of what was a woolly and ill-defined industrial strategy.
Gavin Newlands
I thank the former Secretary of State and Chancellor for his intervention, but I profoundly disagree with his take on this. I will go on to talk about this at the end of my speech, but the strategies he mentions do not have much in them. If we look under the bonnet, there is nothing there. For him to say that those strategies more than make up for the loss of the industrial strategy is for the birds, to be quite honest.
The failure to invest in upgrading the transmission system between England and Scotland has resulted in nearly £5 billion-worth of constraint payments—money that could and should have been invested in grid upgrades. Developers in Scottish waters are now having to connect to the grid in the north-east of England, bypassing Scotland altogether. That said, it is one way to avoid the utterly ridiculous and outrageous additional grid charges that penalise developers in Scotland. The right hon. Member was also in post for the further betrayal of Acorn CCS, which is the most advanced project and the one with most delivery certainty, but it is still waiting for Government support. That belies the Tory commitment to net zero.
My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) and I have visited several businesses and projects in the highlands, Orkney and Aberdeen that are hugely important to reaching our net zero targets. Storegga, of the Acorn Scottish cluster, was one, and another was the hugely impressive European Marine Energy Centre in Orkney—the real energy island in the UK.
Not content with providing innovators the platform with which to test tidal energy, EMEC has come up with solutions to add value to the energy produced, including an electrolyser complemented by storage batteries producing green hydrogen, which in turn is to power other projects such as a combined heat and power unit at Kirkwall airport and a hydrogen fuel cell at Kirkwall harbour to provide clean shore power to ships tied up there. I say “is to”, because delivery of the hydrogen is an issue. Apparently, due to Maritime and Coastguard Agency regulations, the hydrogen can only be delivered if there is no freight and fewer than 25 passengers on the ferry. Those regulations seriously curtail EMEC’s good efforts.
Come to think of it, where is the Government’s coherent strategy on delivering hydrogen, full stop? They talk hydrogen up often enough, but those who are producing it struggle to deliver it. You could not make it up, Sir Christopher. It is obvious that tidal stream needs a bigger ringfence than it currently has. As is often the case, we lead on innovation, research and development in this country but, just at the point where a new sector needs public sector investment to ensure that we retain that lead and the supply chain benefits that flow from it, the UK once again prevaricates and allows someone else to reap the economic benefits.
To conclude, there is a big risk that allocation round 5 will be a complete failure, like last year’s Spanish auction, with strike rates now too low due to inflation and rising costs, as mentioned previously. Again, the Government—more specifically, the Treasury—are tone-deaf, as they are in their attitude to the Inflation Reduction Act in the United States, which is causing investors to rebalance their portfolios across the Atlantic. The Government are now taking credit for work undertaken by the Scottish Government; whether it is tree planting or zero-emission buses, they have subsumed the Scottish targets into UK targets to hide their own failures. No doubt active travel will be next.
The Tories’ record on net zero is a litany of failure; when we look under the bonnet, there is no mechanism nor the required investment for delivery. Scotland is doing so much more, but with one arm tied behind its back. As in so many other areas, Westminster is holding Scotland back.
Graham Stuart
I thank the hon. Gentleman for his question. We are looking at the Xlinks project. We have set up a team to look at it with no further commitment other than to make an assessment. It will be reporting to me shortly on that. We will look at the outline business case going forward. We are looking at it; I do not want to go further—positively or negatively—than saying that.
Gavin Newlands
I realise it is a stretch for the Minister to try to portray himself as the adult in the room with his contribution, but he mentioned good access. Will he therefore tell us what will happen with the grid constraints across the border, even in Orkney where all the energy it produces cannot actually be fed into the grid? When will that be resolved?
Graham Stuart
I thank the hon. Member for that question. It is a good question because the grid constraints, transmission and local connection are the biggest barriers standing in the way of decarbonising our electricity system by 2035. That is why the networks commissioner was asked to investigate that and will be reporting to us this month. That is why the Prime Minister appointed for the first time a Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), who is working on that. The hon. Member for Paisley and Renfrewshire North is absolutely right to point out that the transformation we have seen in renewables, the change in our generation system and the requirement to grow our electricity capacity going forward puts enormous strain on that and creates not only supply chain, financing and deployment challenges in that space, but political ones because of the infrastructure impact on communities. A lot of work is going on in that space, and I am working closely with Scottish Government colleagues and other colleagues to try to ensure that we work in the most coherent manner possible.
We have heard mention in the debate of the need to improve the energy performance of homes across the country. Notwithstanding the transformation we have brought about—it is not enough—that is why we have established a new energy efficiency taskforce to drive forward improvements. That is why we are spending £12.6 billion over this Parliament and up to 2028 to support and provide long-term funding and certainty, supporting the growth of supply chains and ensuring that we can scale up delivery over time. Only yesterday I visited Octopus Energy’s centre, looking at how that company is trying to design heat pumps to be cheaper to install and more efficient, so they can drive the cost down and speed up the time it takes to install them, thus making the decarbonisation of heat in homes, which is a thorny and challenging subject, more realistic and deliverable.
The delivery of net zero relies on strong business action. That is why we brought together senior business and finance leaders into a new strategic net zero council co-chaired, alongside myself, by Co-op Group CEO Shirine Khoury-Haq. It includes Carl Ennis, CEO of Siemens; Ian Stuart, UK CEO of HSBC; Chris Hulatt, the co-founder of Octopus Investments, and others from UK business. The full membership reflects the cross-cutting nature of our net zero challenge. The next meeting is planned to be held in No. 10. We are mapping all the various business and sectoral organisations focused on net zero, looking to ensure that we have the most coherent architecture and that we can develop road maps for each sector, so that we can take the cross-cutting nature of Government in other policies and put it into something that people in particular sectors can more easily adjust to and adapt and that investors can invest in. The green jobs delivery group was formed after the publication of the net zero strategy and followed work by my right hon. Friend—