COP28
Graham Stuart Excerpts(11 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
May I thank you, Madam Deputy Speaker, as well as all the staff of this House and colleagues across the House, for all your hard work this year? I wish everyone a very happy Christmas.
It was a privilege to attend the summit in Dubai over the past two weeks. I was proud to represent a country that has cut greenhouse gas emissions more than any other major economy since 1990; that has boosted our share of renewable electricity from a rather dismal 7% in 2010 to almost half today, while almost entirely phasing out coal power; that has led the world in mobilising green finance; and that is now ensuring that we bring the British public with us on the transition to net zero, thanks to the Prime Minister’s plans to protect families from unnecessary costs and give people more time to adapt to changes.
While we are on track, the world is not. The global stocktake confirmed that emissions need to peak by 2025 and fall by 43% between 2019 and 2030 to achieve the Paris goal of limiting warming to 1.5°C. The current pace of global decarbonisation is well behind that trajectory, and the urgency of the climate challenge means that we cannot delay any further.
The Russian invasion of Ukraine has underlined the importance of transitioning towards renewables, which are less vulnerable to price shocks. That is why our objectives throughout COP28 were clear: we needed to agree urgent action to ensure 1.5° remains viable as a ceiling, including trebling global renewables, doubling energy efficiency and phasing out unabated fossil fuels; and we needed to reform international finance to unlock the trillions required in climate funding.
Today I am delighted to say that we have secured a final agreement that supports those goals. For the first time ever, we have a global agreement on a transition away from fossil fuels. The agreement on fossil fuels builds and expands on the UK’s leadership at COP26, which had the first reference to phasing down coal power, secured agreements behind efforts to decarbonise key sectors of the global economy and, most notably, saw the proportion of global GDP covered by net zero targets increase from around 30% to 90% during our presidency.
This week’s COP28 agreement is not perfect. We wanted to see more action on coal, and on ending the construction of new coal power plants in particular. Like some of the small island states, we wanted greater clarity and fewer loopholes in the agreement. None the less, this is a turning point. We are unifying the world around a common commitment, listening to the islanders of the Pacific and elsewhere, whose voices must be heard, and showing that we are responding to the science by moving away from fossil fuels and raising a torch to inspire action.
Throughout the summit, the UK made significant progress on delivering that action, building on our legacy from COP26. We were pleased to be one of over 130 countries to support the global pledge to triple renewable energy and double energy efficiency by 2030. As co-chair of the Powering Past Coal Alliance, I was delighted to welcome 13 new members, including the United States of America and the United Arab Emirates—all committing to phase out unabated coal power. Through the Energy Transition Council, we are working with developing countries via our rapid response facility to help support them through the energy transition.
We also announced £1.6 billion-worth of new international climate finance projects, which will support developing countries to transition to net zero and adapt to the impacts of climate change, while also expanding green industries on a global scale. We joined the UAE’s climate finance framework, which sets out new principles to reform the global financial system, and we announced plans to launch the climate investment funds capital market mechanism to raise up to £7.5 billion over the next decade for green projects.
However, we recognise that keeping global warming to less than 1.5° is impossible without urgent action to protect, sustainably manage and restore forests. Following the historic agreement at Glasgow to halt and reverse deforestation by 2030, the Prime Minister made forests and nature a top priority for COP28. We agreed £576 million to safeguard 10 million hectares of forests and help half a million people in poor, rural communities, which are the most vulnerable to deforestation. I joined Brazil’s Environment Minister, Marina Silva, to welcome the Prime Minister’s pledge of a further £35 million for Brazil’s Amazon fund. That is on top of the £80 million we announced earlier this year, making the UK one of the scheme’s top three contributors. Finally, the new forest risk commodity measures in the Environment Act 2021 will ensure that there is no space on our supermarket shelves for products linked to deforestation.
However, that is not all. We secured the expansion of the breakthrough agenda—our clean technology accelerator—to cover 57 members and seven economic sectors, representing 60% of global emissions. Up to £185 million was announced for a first-of-a-kind, UK-led facility to help countries across Africa, Asia and Latin America to commercialise green technologies. Essential commitments to support resilience included up to £60 million of UK funding for loss and damage—a significant outcome of Sharm el-Sheikh, now carried forward into operation—an agreement on the framework for the global goal on adaptation, and an international green public procurement pledge to boost the use of green steel, cement and concrete. The UK endorsed a bold plan to triple nuclear power capacity globally, mirroring our domestic strategy for nuclear to make up a quarter of electricity production by 2050. There were also new partnerships with Brazil supporting industrial decarbonisation and hydrogen transitions, and a roadmap for the expansion of zero-emission vehicles in the developing world, backed by major donor countries. The great news is that British businesses will benefit hugely from all that, because as the world decarbonises it will use British expertise and skills as a springboard to realise the net zero transition.
Just as the Prime Minister announced measures to ensure that we bring consumers and households with us on the energy transition, our negotiations at COP have been about bringing countries with us, helping richer nations to set an example, encouraging the biggest polluters to replace fossil fuels with clean energy and working with developing nations to finance green growth. COPs are, above all, about people and our long-standing, trusted relationships with partners all around the world— from big emitters to small island developing states—afforded us significant influence. I am proud of the role that my team played.
I pay tribute to the UAE presidency and Dr Sultan al-Jaber, who acted as COP President, as well as a host of others, including the High Ambition Coalition for its leadership jointly to deliver this result. I was delighted that the UK was able to support a strong delegation of international parliamentarians at this COP, including the first ever pavilion dedicated to parliamentarians. Despite this landmark agreement, and however successful the UK’s record to date, we still have such a long way to go to finance the transition and achieve our global ambitions, so the UK will continue to encourage others to join the UK on a net zero pathway in this critical decade and help deliver a just, prosperous and secure future for all the peoples of the planet.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Secretary of State.
Edward Miliband (Doncaster North) (Lab)
I thank the Minister for his statement and, indeed, for his regular commuting between Dubai and Westminster. Given that he brought the last Government down over fracking, I think he did not want a repeat performance, hence his return.
I welcome some of the key outcomes from COP28, including in particular the commitments on renewables and, crucially, a transition away from fossil fuels. That shows that the COP process, however flawed and imperfect, can provide a forcing mechanism for action by Governments. I pay tribute to the civil servants in the Minister’s Department for their hard work. Indeed, by a remarkable coincidence, the breakthrough in the negotiations occurred in the 24 hours when the Minister came home and they were left in charge.
But, for all the advances made, the truth is that the world is still hurtling towards disaster, way off track for keeping 1.5° alive. While we need an over-40% reduction in emissions by 2030, we are currently on track for emissions not to fall but to rise, and a temperature rise of approaching 3°. Even after the agreement, that is the reality, so the question for the world in the run-up to COP29 in Azerbaijan and COP30 in Brazil is whether good words at COP28 are finally matched by actions equal to the scale of the emergency.
These will be the defining two years in this decisive decade, which will shape the lives of generations to come, so we need a Government in the UK who will stop congratulating themselves and using the UK’s record as an excuse for future inaction and instead lead at home in a way that is consistent with what we are demanding of others. The Minister complained about a lack of action on coal at the COP, but the Government are opening a new coalmine, watering down emissions targets, seeking to drill every last drop in the North sea and starting a culture war on net zero. That has sent a terrible message to business, investors and other Governments; one that was heard loud and clear by people at the COP.
Let me ask the Minister four questions about the Government’s approach. First, the COP decision says that we need to “transition away from fossil fuels” in line with the science. The science is unequivocal: for us to meet 1.5°, we must leave the vast majority of fossil fuels in the ground. He is right that many countries fear that some will seek to use loopholes in the COP agreement to avoid that reality. Our Government are doing precisely that: they say they want to drill every last drop in the North sea. The International Energy Agency, the Energy Transitions Commission, the Climate Change Committee and the former president of the COP, the right hon. Member for Reading West (Sir Alok Sharma), all say that that is incompatible with the science. Can the Minister explain how he expects to persuade other countries in the next two years that they must leave their fossil fuels in the ground when he wants to extract all of ours?
Secondly, on targets for 2030 and beyond, the COP decision makes it clear that we need not just ambition but policies that will meet those targets. However, the Climate Change Committee says that we are way off track for our 2030 nationally determined contribution. Can the Minister explain how he expects to persuade other countries to have policies to meet their targets when anyone can see that we are miles off meeting ours?
Thirdly, on finance, I welcome the contribution on loss and damage, but does the Minister recognise the lack of confidence that the Government will meet their promise to provide £11.6 billion of climate finance? Can he explain how he expects to persuade other Governments to keep their promises on finance when people suspect we will not keep ours?
Fourthly and finally, when the Prime Minister spends his time at home describing net zero as a massive burden—which is what he does—how does he remotely expect to persuade others, particularly those in the developing world, that it is a great opportunity? The Prime Minister claimed that nobody at COP raised with him his dither and delay; I suspect that was because he was not there long enough to hear the truth. His U-turns have been incredibly damaging for our country.
The positive outcomes at COP came despite this Government, not because of them. Britain needs a Government who will show climate leadership again—not climate hypocrisy—to cut bills, deliver energy independence, grow our economy and protect future generations. In the next two years more than ever, the world needs climate leadership from Britain. Is the truth not that people at home and abroad have seen enough to know this Government cannot provide the leadership that the world so urgently needs?
Graham Stuart
I thank the right hon. Gentleman for his questions. I welcome what he said about the overall COP result and the need to celebrate it and build on it, and the fact that we need to ensure actions match words in this critical decade. That was one of the things we were wrestling with most, because new NDCs for 2035 are being worked on now for announcement ahead of the Belém COP in the Amazon in 2025, but it is in this decade that we need to bend the curve further. It is absolutely right that we do so.
The right hon. Gentleman has focused on performance, and I am pleased to say that this Government have met every single carbon budget to date. The only major targets set on climate change in this country that have been failed were—let me think—the target of 10% renewables by 2010, set by the Government of which the right hon. Gentleman was a member. The target of a 20% reduction in emissions by 2010, again set by the Government in which the right hon. Gentleman served, was also failed. Every single carbon budget for which this Government have been responsible since my then party leader became the first leader to call for the Climate Change Act 2008 has been met. Our record is without parallel, and I will not have it trash-talked down by the right hon. Gentleman, whose record in government is so at odds with the words he uses.
On oil and gas, we are a net importer. We are transitioning; as I have set out, we are reducing our emissions faster than any other major economy on this planet. None the less, according to the Climate Change Committee, about 25% of our power will come from oil and gas even in 2050. We will be using mitigation technologies to offset that, but the idea that we should replace domestically produced gas with imported gas with four times the embedded emissions, when it will make no difference to our consumption, is environmental nonsense. That is why we are standing up for the 200,000 people who work in our oil and gas industry as it transitions; it is why we support the £50 billion in taxes that comes from that industry; and it is why we must retain the expertise of people in the sector going forward. The Labour party puts at risk our net zero transition—a transition that it did not set out on properly when it was in government, and that this Government are delivering on. As I said, we have met all our carbon budgets to date.
I welcome the right hon. Gentleman’s point about loss and damage. I assure him and the House that we will meet our target of £11.6 billion in climate finance on the original timetable set out by the Prime Minister. The Prime Minister came to COP, personally committed and passionate about ensuring that nature and forests—on which we have been a leader—were championed at that COP. Hopefully, I will be able to give more detail about that when answering other questions. As we move into the coming year ahead of the Baku COP, we will focus on a new, collective, quantified financial goal. The Prime Minister, with his focus and expertise, will ensure that the UK is an absolute leader in getting that right, amplifying the billions we have today into the trillions we need tomorrow.
Sir Alok Sharma (Reading West) (Con)
I agree that we saw significant progress at COP28, particularly the agreement on transitioning away from fossil fuels in the energy system. However, that agreement and all previous agreements are literally just words on a page; they will come to fruition only if all countries follow through in their domestic policies.
The Minister talked about raising the torch to inspire others. Once again, will he please review the plan to issue these annual oil and gas licences, and consider whether they are consistent with the international commitments we have made? Secondly, will he ask our right hon. Friend the Chancellor to urgently review the tax regime that gives significant subsidies to new oil and gas projects? This is a matter of trust. The Minister talked about the voices of the most climate vulnerable; they will be listening and watching, and they want to see action, not just from the UK Government but from every Government.
Graham Stuart
I pay tribute to my right hon. Friend for his efforts at COP26 in Glasgow, including the significant measure on phasing down coal. [Interruption.] Could the right hon. Member for Doncaster North (Edward Miliband) be quiet for one second? He did so little in government, and he has so much to say now—it is quite a contrast, is it not?
Returning to my right hon. Friend’s serious and respectful question on oil and gas licences, as I said, we are a net importer. We are producing our own oil and gas to ever higher standards, and I am proud of the North sea transition deal, which has seen the industry work with Government to cut emissions from production by 50% by 2030. My challenge back to my right hon. Friend is this: in what way is there any linkage between producing to ever higher standards and a falling level of oil and gas? New licences simply allow us to manage the decline of a basin that is expected to fall at 7% a year and to halve in a decade, and will see us growing our independence from imports, even with those new licences. That is why we are issuing them.
On the issue of subsidies, our tax regime is set at 75% —among the highest in the whole world. [Interruption.] The right hon. Member for Doncaster North cannot win the argument when he is on his feet, so he tries to do it when he is sitting down. If only he had shown the same energy when he was in government, we would not have had the woeful inheritance that we alone have had to turn round. We are expecting £50 billion in taxes from the oil and gas sector, and without new licences to allow for the greening of the basin so that we reduce emissions, we would not be able to ensure that each barrel of oil and production of gas comes with a lower level of production emissions than it does today. That is our ambition.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
I thank the Minister for advance sight of his statement.
At COP26 in Glasgow, Scotland became the first developed nation in the world to commit funding to address loss and damage. Does the Minister agree that loss and damage funding should be prioritised to meet the needs of the communities that need it most, and distributed in a way that does not add to the debt burden of the global south? Scotland’s First Minister has welcomed the deal, especially the new pledge of $700 million for loss and damage, but of course, that still falls short of the funding that will ultimately be required. What is the UK doing to push for more funding down the line, and how much will it contribute now?
The former president of COP, the right hon. Member for Reading West (Sir Alok Sharma), made an excellent point. The new agreement reached at COP28 commits all countries to transition away from fossil fuels. We welcome that agreement, to which the UK is of course a signatory. Can the Minister outline how the UK Government’s plan to increase oil production in the UK aligns with the plans to transition away from fossil fuels, and how can we trust them?
Graham Stuart
The hon. Gentleman is right to highlight the success of the loss and damage fund being operation-alised, but also to highlight the fact that it does not match the need for the quantum of finance. He asked me how we will be working on that. We have been delighted to contribute £60 million, of which £40 million will be going directly into the fund to help get it going. However, if we are to get it to the scale we require, it is going to need more than donor finance, which is why we have explored, and will continue to explore, options for innovative financial flows. So much of the change we have made there, even if there was an opportunity for increased debt, would not be debt financeable anyway, and that is why, as he said, we must make sure that those who are most vulnerable are rightly dealt with.
The hon. Gentleman mentioned the increase in production from oil and gas in the North sea. We are not seeing an increase in production; we are actually seeing production expected to fall at 7% a year. It is falling faster than is required globally. The IEA says that countries should be looking for a 3% to 4% reduction, and we will be reducing at 7%. As he knows, the UK has cut its emissions more than any other major economy on earth, has the most ambitious plans of any major economy to 2030 and, I believe, is the only one to have put into law a 77% reduction in the mid-2030s.
It is in that context, as we lead the world in reducing demand for oil and gas, that, none the less, our dependence on imports will grow. So it makes no sense whatsoever to see Scottish workers thrown out of their jobs in oil and gas, while we simply bring in imports from abroad with higher emissions, and lose the very subsea and engineering capabilities that we need for floating offshore wind, carbon capture and hydrogen. There is a complete disconnect in this crazy opposition to the maintenance of an already declining industry, which is fundamental to delivering the energy transition. Even if I have little hope for the right hon. Member for Doncaster North, who has always managed to have inconsistent and incoherent thoughts in his head all at the same time, I am hoping that perhaps the Scottish nationalist party can come to its senses and support Scottish workers and the energy transition.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
I strongly welcome this statement. I congratulate the Minister and my noble Friend Lord Benyon on the negotiations, but also officials such as Alison Campbell and many of the officials in the Department for Environment, Food and Rural Affairs, who played a blinder in working towards and securing the agreement. I also want to pay tribute to the Minister for single-handedly making it possible for so many MPs to attend COP28. I pay tribute to him for doing that, recognising his previous presidency of GLOBE International UK.
I would like to say to my right hon. Friend that I was particularly proud of the mangrove breakthrough moment. I am conscious that the combination of nature and climate going together started very strongly in Glasgow and has accelerated. May I seek assurances from my right hon. Friend that we will commit to the £11.6 billion international climate finance funding? I know we have already started spending some of that. Will he also consider some of the approaches to things such as saltmarshes, the UK’s equivalent of mangroves, to make sure that continuing integration is part of our policy?
Graham Stuart
I thank my right hon. Friend for her question. I also thank her for her attendance at the COP and her continuing passion and ability to communicate the importance of nature as a value in itself, but also how, dealt with in the correct way, it is complementary to development and to the maintenance of carbon sinks. Nature, and making sure that an understanding of it is central to our thinking, is so important.
My right hon. Friend thanked my officials, and she is right to do so. When Dr Sultan al-Jaber made the historic announcement of the UAE consensus, the central text of the various texts we agreed was that on the global stocktake. Having thanked the two Ministers who led the work on the stocktake, he immediately thanked Alison Campbell and Mr Teo from Singapore for their fundamental role. Our officials and my team were very much involved in drafting and pulling together words, and I was delighted to be supported by them as we met those from Saudi Arabia to China, India and other partners. I pay tribute to all those countries that, just like us, had to move from their initial positions to find a consensus.
My right hon. Friend mentioned the presence of MPs. My first COP was in 2005 in Montreal, and I remember feeling then that the elected parliamentarians, who make the political weather, were not properly accounted for. When I look back to that historic Climate Change Act 2008, I am proud of the fact that my then party leader, the noble Lord Cameron, was the first party leader to support it—[Interruption.] If the hon. Member for Bristol East (Kerry McCarthy) could just be quiet for a moment, I was talking about parliamentarians. It was a combination of Friends of the Earth working with Back-Bench parliamentarians and a new green Conservative party, and an early-day motion—an instrument here that is often looked at askance—that triggered the Climate Change Act, which has been significant not only for the UK, but for the world.
Daniel Zeichner (Cambridge) (Lab)
One of the key themes at COP28 was food system transformation. Given the Climate Change Committee’s damning criticism of this Government’s failure to make progress on cutting emissions in the agricultural sector, could the Minister tell us what changes he expects to see in UK domestic policy as a result of the agreements reached in Dubai?
Graham Stuart
Again, the UAE can be very proud of the fact that, among so many other things, it really made sure that food was seen as an important part of this COP. He is right that land-use issues, agriculture and more sustainable agriculture are fundamental to delivering net zero. Under both my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and her successor, we are working very hard to do that at home, but we were also able to announce at COP support for more sustainable agriculture and land use abroad. He is absolutely right that this is an area on which we must keep complete focus. We must make sure that we deliver in that area, as in so many others, to pull together and maintain our net zero pathway.
Vicky Ford (Chelmsford) (Con)
In the very hot summer of 2022 almost 1,000 wildfires swept through Essex. We are not immune from the real dangers of global warming, so it was a huge honour to be one of the representatives, from this Parliament’s Energy Security and Net Zero Committee, at the COP recently. The rate of new solutions, the rate of innovation and the rate of investment, as well as this new agreement, do bring hope, but promises must be delivered, and there is a gap between the science and the promises. Does my right hon. Friend agree that we must continue to do all we can—locally, nationally and internationally—to close that gap?
Graham Stuart
I thank my right hon. Friend, and it was good to see her out in Dubai following up on so many of the issues, not least in recognising the needs of the most vulnerable and the poorest communities and countries around the world to ensure that they are not left behind and that we do have a just transition.
My right hon. Friend highlights the fact that she was a parliamentary delegate there, and we were proud to support GLOBE International UK, of which the hon. Member for Brent North (Barry Gardiner) and I were previous chairs, to provide the first ever parliamentary pavilion at COP28. I pay tribute to Malini Mehra, who has headed up GLOBE. She came in when it was in a troubled position for a promised maximum of six months, and she is still there. She is committed to ensuring that parliamentarians are armed with the information they need.
The answer to my right hon. Friend’s specific question is, yes, absolutely. When we consider that the country that has decarbonised most over the 31 years from 1990 to 2021 has reduced its emissions by 48%—namely, us—and that the world, on a 2019 basis, has to cut by 43% by 2030, with many large emitters pointing in the wrong direction, we can see that the challenge and the gap are not to be underestimated. COP28, with the UAE consensus, is significant, but there is so much more to do, and it has to convert into real change if we are to bend the curve further.
Barry Gardiner (Brent North) (Lab)
There is much in the Minister’s statement that I commend and agree with, and in particular I reinforce his praise to our officials who played such a significant part in the negotiations. I regret the tone of some of his responses to colleagues, because the cross-party consensus on this issue over the past 30 years has been fundamentally important to the progress that we have been able to make. The science is clear; the world’s Governments are not. Those who are ready to deliver the transformation required to win the war against climate change are now considering whether the United Nations framework convention on climate change process is capable of delivering it in time. How long does the Minister think it will be before we see coalitions of the willing, such as the Beyond Oil & Gas Alliance, imposing sanctions on those recidivist countries who are still driving our world towards disaster?
Graham Stuart
On the coalitions of the willing, the world is changing, and the EU has already legislated for a carbon border adjustment mechanism for selected parts of industry, which will put up a carbon tax or a carbon price at the border. There is a certain intellectual inevitability about that if costs of production in one country are not reflected in others, and ensuring that that is done in a just manner is important. I would hate to look back at COP28 and find that it was one of the last times that countries around the world were able, on the basis of mutual trust, to talk to each other and come to a common agreement. The hon. Gentleman, who is highly experienced in this area, knows just how tender—I am sure there is a better word. The hon. Gentleman knows just how fragile the process could be if we do not all step carefully and ensure that we carry people with us.
Trudy Harrison (Copeland) (Con)
The commitment that 24 countries have made to triple nuclear energy capability by 2050 shows that the world has woken up to the most powerful, least land-taking, reliably proven net-zero energy provision that we have in the world. That is testament to my right hon. Friend, his Department and this UK Government, who committed first to 24 GW. Will he join me in recognising that without the world-class skills—I draw Members’ attention to my entry in the register, because I am happily married to a nuclear welder with 45 years’ experience—and the blue-collar workers and nuclear operators working every hour, every day on sites across the UK, we would not, and the world would not be in a position to back atomic energy? Will he join me in commending Britain’s energy coast, which recognise that for us to tool up, retrain, train and recruit, we must regenerate nuclear communities, which are often coastal communities? That is exactly what Britain’s energy coast, and the energy coast business cluster, is doing so well in west Cumbria.
Graham Stuart
I pay tribute to my hon. Friend and her energetic, continual and well-informed—not least by marriage—understanding of the nuclear industry and its importance. I remember being at Sharm El Sheikh and it seemed that the only people talking about nuclear were 95 youngsters from some tiny pavilion at the back, who were going around promoting its importance. The science says that we cannot get to net zero without nuclear, in the appropriate places and with all the caveats. I remember saying to the incoming UAE presidency that, given their success with their Barakah reactors, and given the need to deliver nuclear and the UK’s determination for a renaissance, surely all countries involved need to come together and send a signal to the world, so that we are not leaving teenagers alone to champion the importance of nuclear. We as a country should step up loud and proud, and face down those who oppose nuclear from an ideological perspective, because it is so important not only to delivering net zero, but to delivering so many jobs in constituencies such as that of my hon. Friend around this country.
Mary Glindon (North Tyneside) (Lab)
Licensing aside, what sensible proposals does the Minister have to offer hope to the 1,500 people living in my constituency, and the other 200,000 people he referenced earlier, whose jobs depend on oil and gas now, and who could power our clean energy future? Offshore Energies UK estimates that if we get the transition right, the workforce could swell by 50%. Where is his plan for those workers?
Graham Stuart
I thank the hon. Lady. In her coded way—we all know there is an election coming up—I suppose that is as far as she could go in opposing the opposition of those on Labour’s Front Bench to sustaining those jobs as we go through the transition. Those jobs and that skillset will be required for the transition. If we pull them and say that there will be no new licences or investment in the North sea, those jobs will disappear or simply go abroad, and that makes no sense. Along with Michael Lewis of Uniper, I co-chair the Green Jobs Delivery Group, and we will be coming forward with a green jobs plan in the first half of next year. It is a transition, and as the hon. Lady will know, if she can persuade those on her Front Bench to get off their ideological opposition to something that is fundamental to the delivery of the transition, as well as maintaining our energy security today, I am fully behind her.
Mr Tobias Ellwood (Bournemouth East) (Con)
I, too, was at COP28, and I congratulate the UAE on what we have all been achieving there. The Minister is right to underline what Britain has done in moving from 7% to half of our energy requirements coming from renewables. He is also right to say that we are still behind the curve. We punched through a 1.5°C increase from pre-industrial levels in July this year, and climate change will soon overtake human conflict as a cause of loss of life. We are familiar with the long-term targets of 2030 and 2050 that the Minister has mentioned, but they are a long way off. Would it be wise to start introducing annual targets —a yearly roadmap—so that we can see incrementally how we will meet those long-term objectives?
Graham Stuart
Interestingly, my right hon. Friend takes us back to the days before the Climate Change Act 2008 when, if I remember correctly, Friends of the Earth was arguing for annual targets, and that was the Conservative party position. Once the Labour Government agreed to take the legislation forward, they realised, as did the civil servants involved, that there needs to be a period over which these things can be balanced out. I think their thinking was right and that the five-year carbon budgets were right. We do provide an annual report on our performance to date, but overall we have to allow for things such as the pandemic and all sorts of crises that come along. I think the architecture was right—I pay tribute to the right hon. Member for Doncaster North and his Government at the time—and it has withstood the test of time.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
As we have heard, the global stocktake decision text that was agreed in Dubai commits the parties to transitioning away from fossil fuels in energy systems. Can I press the Minister to clarify what the Government believe the implications of that aspect of the agreement are for the UK? Will it mean that the UK Government now have to accelerate action to reduce our dependence on fossil fuels in what remains of this decade? If so, what new measures will be needed? If not, are the Government really saying that the COP28 agreement changes nothing for the UK when it comes to fossil fuel usage?
Graham Stuart
I thank the hon. Gentleman for his question, which is a good one. Our nationally determined contribution and emissions promise for 2030 is for a 68% cut from the 1990 basis—far more than any of our peers. We can be proud of that. It was set precisely because it was, on the advice of the Climate Change Committee, aligned with a pathway to net zero 2050. None the less, the hon. Gentleman is right to say that we keep our policies under review, and as that committee pointed out this year, there are still gaps that need to be made up to ensure we deliver on that. We have always managed to do so before, and I am confident we will do so again. He is right to say that we should continually look at our policies to ensure that they keep us there, whether or not that deals specifically with fossil fuels. We are trying to move to zero-emission vehicles. Today we have made an announcement on hydrogen, with 11 projects being funded to produce green hydrogen around the country. We are, step by step, across the piece, putting in place the required policies. That means doing everything within the window to keep ourselves in our world-leading position, which is cutting emissions more than any other major economy.
Dr Luke Evans (Bosworth) (Con)
May I build on the wise words of my hon. Friend the Member for Copeland (Trudy Harrison), and congratulate the UK Government on signing the statement on civil nuclear fuel co-operation with the United States, Canada, France and Japan? That statement to secure supply chains, particularly of uranium, is so important, and the Government-led $4.2 billion of external investment will go a long way to securing our energy side when we need an energy mix. Does the Minister agree that that is exactly what the UK needs, not only for its energy security, but to meet its net zero targets?
Graham Stuart
My hon. Friend, as always, is well informed and insightful. We were pleased, along with 21 other countries, to join NetZero Nuclear, because nuclear has such an important part to play. As I said in a previous answer, we need literally everything, and we are pushing the envelope across the piece. By doing so, we are developing technological solutions that will not only serve our needs, but can be exported around the world for many years to come.
Anna McMorrin (Cardiff North) (Lab)
The Minister is right that COP is about people and relationships. I was also at COP, and heard first hand what country representatives were saying about the recent actions and messages coming from this Government, in stark contrast to some of what he is saying today. The Prime Minister has spent recent months wrongly telling the country that net zero is a huge burden, rather than the economic opportunity of the 21st century. How can he as a Minister go to developing countries saying that they must seize these opportunities provided by net zero, given his Prime Minister’s message at home?
Graham Stuart
As delightful and pleasant as the hon. Lady is outside the Chamber, she is always challenging within it. The Prime Minister remains committed. He has insisted on our commitment to net zero and our 2030 nationally determined contribution, while ensuring that we carry people with us. He was delighted to announce £1.6 billion of UK funding for new climate projects while at COP, including £887.8 million of new and additional financing, with other announcements focused on driving forward climate action on forests, finance and net zero transitions. This Government are walking the walk while ensuring and making no apology for the fact that we seek to maintain the national consensus and carry people up and down the country with us as we continue to lead. [Interruption.] The right hon. Member for Doncaster North insists on giggling, but we are leading in the way his Government singly failed to do before 2010.
Andrew Gwynne (Denton and Reddish) (Lab)
May I start by thanking the Minister? Politics aside, there is much we can all agree on in the deal at COP. I would like to see us go further in some areas, but I recognise that we have to build a coalition, and I thank him for the work he has done. However, it is about not just what we do, but what we say and how we say it.
Following on from my hon. Friend the Member for Cardiff North (Anna McMorrin), the way that the Prime Minister recalibrated the Government’s policy in this area had the opposite effect to the one we all would like to have seen. We got the following headlines: “Sunak’s U-turns make net zero harder” in The Guardian; “Could Rishi Sunak’s green review threaten UK net zero?” on the BBC; “Sunak’s net zero backsliding ‘deeply damaging’ for Britain” in The Daily Telegraph; and “Climate tech backers slam Rishi Sunak net zero retreat” in the Evening Standard. Does the Minister not get that these messages are heard across the globe? Will he go back to No. 10 and ask the Prime Minister to be just a bit more careful in his language and how he says things so that we can get net zero over the line?
Graham Stuart
In maintaining the public commitment to net zero, it was important to say to people in my rural east Yorkshire constituency, for example, who are off the gas grid and fearful concerning heat pumps, that they would not see their boilers ripped out when they did not think there was an affordable and deliverable alternative. As the Prime Minister announced, we combined that with a 50% increase in the heat pump subsidy level to £7,500, and we saw a tripling of interest in the following week. Words do matter, but there are many constituencies to talk to. I look to the hon. Gentleman to help provide the proper balanced and nuanced view. This country has cut its emissions more than any other major economy on earth and we have more ambitious plans going forward. The Prime Minister is behind net zero. We must have a balanced discussion to show that we are not inflexible. We are prepared to work with people and ensure we do it in the right way.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
The Minister said that we have to ensure we are not inflexible. The reality is that a number of the policies and issues we are discussing will have an impact on the next generation and the one after that. Whenever I go into schools in my constituency, the young people raise climate change with me. The reality is that climate change is harming children’s rights and access to food, water, healthcare and education. Does the Minister agree with UNICEF on the need to build towards a climate change action plan for children and young people by calling for an expert dialogue on children and climate change to be held mid-year at the session of the subsidiary bodies in 2024?
Graham Stuart
The hon. Lady is right to highlight children, who will inherit the planet we leave behind. In the meantime, they are peculiarly vulnerable to the negative impacts we are already seeing this year, let alone those we will see if we get to 1.5°C or beyond. She is right to highlight that. I cannot comment on the specific question she raises, but I will make sure that it is heard on the Treasury Bench and let her know as and when a decision is made by the Government. She is right to say that, just as we must ensure that the voices of the small Pacific island states and others are heard, because they are so much on the frontline, the voice of youth must be heard. I was pleased to meet youth representatives at COP28. We must ensure that we look to the people who will inherit the policies that we of a slightly greater age make in this Chamber.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
I dare say that it might seem slightly implausible to people here in the Chamber when I say that I worked in oil fabrication, but I did, and the yard where I worked built some of the mightiest structures in the North sea today. What the Minister says about transitioning and redeploying skills is music to my ears and those of my electorate. I long to see the day when offshore wind structures are fabricated in the Nigg yard. However, there is a problem, which is that since the auction, some costs have risen by almost 40%. I suspect that the incentives will not be sufficient to get the industry to where we want it to be to make these things happen. Does the Minister recognise that, and does he have any thoughts as to how it might be addressed?
Graham Stuart
I am grateful to the hon. Gentleman for his question, which, as ever, is well informed and extremely reasonable. He is absolutely right. I visited the port of Nigg. I was interested to see nascent floating offshore wind work, fixed-bed offshore wind work and oil and gas work, and I wandered into a hall where they were making a large and sophisticated piece for Hinkley Point C, extraordinarily. That was all at Nigg.
The hon. Gentleman gets to the point about financing and whether the auction, which has been brilliant at lowering prices, has in fact helped drive too much of the industry out of this country. Behind the day job of transforming our generation, my passion will be to see how, without following some others with WTO-breaching local clauses, we can nudge and support more industry here. That is why we are bringing in sustainable industry rewards—non-price factors, in the jargon. We expect those to come in from allocation round 7 onwards as we work to make sure that we look after consumers first, while not missing any opportunity to utilise, maintain and grow jobs here. On offshore wind alone, our expectation—this is what the industry says—is that we will go from around 30,000 jobs in the industry today to more than 100,000 in the next six years. One of our biggest challenges is finding those people, training them and making sure we are ready to deliver them, as much as it is having more done here.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for the positives in his statement and the significant targets that the United Kingdom of Great Britain and Northern Ireland is setting to achieve our goals. Some of the figures he has referred to are encouraging. I wholeheartedly support help for poor countries, as he will be aware. Will he outline the parameters of the loss and hardship fund that has been mentioned as they pertain to ensuring that the fulfilment of human rights obligations is in the requirements for any award?
Graham Stuart
I thank the hon. Gentleman for his as ever gracious question. One of our disappointments—there were things we were disappointed with in the UAE consensus—was the watering down of elements we would have liked to see on human rights. He is right to highlight that. We have always wanted loss and damage to focus on the most vulnerable. The least financeable of all are people in an already parlous economic position, often at low scale, who are under threat from climate change. We hope that the funding that has been created for loss and damage can complement adaptation funding as well as mitigation work, and have climate justice at its heart. We have to look after the weakest and poorest on the planet. However unsympathetic the science, we have to ensure that policy recognises the realities for people all over the world.
Energy Security Plan: Gas Supply
Graham Stuart Excerpts(11 months, 3 weeks ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
I am pleased to announce that the Government have today published two updates to the March 2023 Powering Up Britain Energy Security Plan. The first sets out key considerations on the future role that gas storage and other forms of flexibility can play in the security of gas supply. The second sets out a proposed methodology for assessing medium range gas supply security.
Energy security is a priority for this Government as we transition to net zero. While we expect UK gas demand to decline as part of this transition, natural gas will continue to play a critical role in our energy system for decades to come. Alongside this reduced demand we are facing reduced domestic supply. With declining domestic gas production from the UK’s continental shelf, the UK will become more dependent on gas imports, including from global liquefied natural gas (LNG) supplies. As the gas storage and flexibility update highlights, natural gas LNG and interconnector imports are estimated to be approximately 11% of our total gas demand in 2023, rising to just
under 50% in 2045.
To slow this increasing dependence on gas imports and the risk of higher embedded emissions in them, the Government are backing the North sea oil and gas industry—so as to make Britain more energy independent. That is why we have introduced the Offshore Petroleum Licensing Bill to give industry certainty as to the future of licensing rounds. The continuing award of new oil and gas licences is essential to the UK’s energy security, further investment in moving the basin to net zero and in retaining the supply chain required for the transition. It will help slow the decline in the UK’s domestic production of gas as we consider the ongoing role of flexibility in the UK’s gas supply for the coming decades.
The role played by flexible sources of gas supply is expected to change over the coming years to provide two roles—continued and probably increased flexibility to respond to patterns of demand as well as making a contribution to baseload supply. For the gas system, the three forms of supply side, infrastructure-based forms of flexibility—geological gas storage, LNG and interconnectors—all share three key features: they can respond to peaks in demand, can be dialled up or down depending on demand across days and seasons, and their gas supply contribution is driven by market signals.
The gas storage and flexibility update therefore explores the future role that flexible sources of gas supply might play in gas security over the medium to long term, and the associated policy decisions for Government. We are proposing to launch a call for evidence on flexible sources in the coming months to support policy development on the future role of flexibility in gas security of supply.
The second update publication outlines a proposed methodology that could be used by the planned future system operator (FSO) to deliver a new medium range gas supply security assessment. This will be an annual assessment that will consider how the UK’s future estimated gas supplies compare against demand scenarios five and 10 years into the future. It will help Government and industry gain insight and plan for the UK’s future gas security. The Government will use this publication to engage with industry, academia, Ofgem, the system operators, and other stakeholders to further refine the methodology ahead of the FSO becoming operational.
I will place a copy of the documents: “The role of gas storage and other forms of flexibility in security of supply” and the “Medium range gas supply security assessment: methodology” in the Libraries of the House.
You can find the updates to the Energy Security Plan on: https://www.gov.uk/government/publications/role-of-gas-storage-and-other-forms-of-flexibility-in-security-of-supply, and
https://www.gov.uk/government/publications/medium-range-gas-supply-security-assessment-methodology.
[HCWS97]
UK Priorities for COP28
Graham Stuart Excerpts(12 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
The UK is committed to tackling climate change and restoring nature. We have reduced our emissions by more than any other major economy since 1990 and, going forward, have one of the most ambitious targets for 2030. Our emissions are down 48% compared to 1990 and we have grown the economy by 70% over the same period.
We brought the world together at the COP26 Glasgow summit to speed up the global net zero transition, as well as brokering a historic deal to end deforestation and kickstart new green finance markets. However, limiting global temperature increases to 1.5° will only be possible if countries around the world commit to join the UK on a net zero pathway. The science is clear that global emissions need to peak by 2025 and must be reduced by 43% in 2030 compared to 2019 in order to achieve this.
The upcoming 28th conference of the parties under the UNFCCC (COP28), to be hosted by the UAE in Dubai from 30 November to 12 December, will mark an important moment to get to net zero. Amid record global temperatures, the first global stocktake of progress against the Paris agreement will show that the world is currently off track and urgent action is needed to keep the 1.5° goal within reach. The world needs to take a hard look at what is working and where we are failing to deliver, focusing our resources on practical, deliverable solutions. This COP must deliver the framework and targets already agreed, including in Glasgow, and set out the long-term decisions that are needed to bring everyone with us, from rural communities to the countries most impacted by climate change.
The context is challenging, given the current geopolitical tension, conflict and macroeconomic environment where countries are battling inflation and debt. At the same time, the widespread impacts from increasing global temperatures have never been felt more, underscoring the need to deliver on our climate commitments and reduce emissions.
His Majesty the King will attend the opening ceremony of the world climate action summit at COP28 at the invitation of the UAE and at the request of HMG, and will deliver an opening address. The Prime Minister, Foreign Secretary, Secretary of State for Energy Security and Net Zero, Environment Secretary and other Ministers will attend the summit. I will lead the negotiations for the UK.
The Prime Minister’s focus will be on forests, finance and net zero transitions. These are areas where the UK can lead global progress, building on our track record, and working with the UAE presidency, other countries, business and civil society.
Overall at COP28 the UK wants to see progress in five priority areas:
New commitments and action to keep 1.5 alive. Coming out of the global stocktake, we need renewed leader-level political consensus and increased ambition to keep 1.5 in reach. We need commitment to peak global emissions by 2025 and clear guidance for the next round of NDCs. And we need a clear, forward-looking road map with global targets in key sectors and commitment to action including through the breakthrough agenda, on forests, and through the phasing out of hydrofluorocarbons. Since 2010 the UK has seen nearly £200 billion of public and private finance investment in low carbon energy sectors. We will use this domestic experience to spearhead efforts to accelerate decarbonisation of key sectors of the global economy.
A clean energy package with clear commitments to transition away from fossil fuels. This includes commitments to triple global renewables and double energy efficiency by 2030, to phase out unabated fossil fuels—in line with the G7 commitment the UK helped to deliver earlier this year—and to end new unabated coal power and phase out coal power globally.
An outcome on finance that helps deliver the trillions needed to accelerate the transition. This includes reform of international financial institutions, delivery this year of the collective goal of $100 billion climate finance per year for developing economies, and progress on the post-2025 climate finance goal with contributions from a broader range of donors. Based on preliminary data, the OECD has stated that it is likely that the $100 billion goal was met in 2022. The UK will play its part. We are fully committed to delivering on our £11.6 billion of international climate finance and we are a world leader in green finance. We will work with partners to realign financial flows with the Paris agreement and global biodiversity framework.
Progress on building resilience to climate impacts—demonstrating progress on the Glasgow commitment to double adaptation finance by 2025 and establishing an effective loss and damage fund to support countries that are particularly vulnerable. We are pleased that the loss and damage transitional committee, mandated by COP27, has put forward a recommendation on the fund. The UK was instrumental in securing that recommendation and we hope it will be agreed at COP28. We will continue to advocate for the priorities of the most vulnerable. I co-chaired a third climate and development ministerial alongside the UAE, Malawi and Vanuatu at pre-COP last month. This focused on enhancing access and delivery of adaptation finance, the equitable delivery of high-quality grant-based finance and concessional finance.
Real progress towards protecting, restoring and sustainably managing nature, on land and in the ocean, which is crucial to delivering on net zero and building resilience. We need COP28 to maintain momentum on the implementation of the global biodiversity framework agreed at CBD COP15 last year, to make concrete progress on the historic agreement to halt and reverse biodiversity loss by 2030. We want to see forests prioritised in the global stocktake and to use the Forest and Climate Leaders’ Partnership as the vehicle to drive accelerated delivery of the Glasgow leaders declaration on forests and land use. To date UK International Climate Finance has avoided over 410,000 hectares of ecosystem loss.
We will continue to deliver ambitious reductions, embracing innovation and green finance opportunities. The UK will go into COP28 with a strong record at home and internationally. We recently committed $2 billion to the green climate fund second replenishment, the biggest single international funding commitment the UK has made to help tackle climate change, making us the top contributor cumulatively to the world’s most prominent international climate fund.
In his recent net zero speech, the Prime Minister set out the long-term decisions to enable a just transition to net zero while maintaining public support. We are absolutely clear that net zero is the right thing to do for our long- term national security, economic prosperity and the future of our children.
All countries around the world need to do more to keep 1.5 alive. The UK is delivering significant progress, and following the clear framework and targets agreed at Glasgow COP, we saw 90% of global GDP committed to net zero. We must now drive progress and support other nations constituting 99% of emissions to grasp the benefits of green growth.
We will update the House in the usual way once negotiations have concluded.
[HCWS80]
Oral Answers to Questions
Graham Stuart Excerpts(12 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Andrew Gwynne
As a fellow Lancastrian, I hope you had a good Lancashire Day yesterday, Mr Speaker.
The Minister for Energy Security and Net Zero (Graham Stuart)
As a Yorkshire MP, I resent that remark. [Laughter.]
I meet regularly with business leaders and organisations. I chair or co-chair, among others: the Offshore Wind Industry Council, which I will be going straight to after questions; the solar taskforce; the green jobs delivery group, which met yesterday; the North sea transition forum, which I will attend tomorrow; and, from a strategic cross-cutting point of view, the Net Zero Council. Of course, the Secretary of State and I met global leaders yesterday.
Andrew Gwynne
Well, as the Minister seems to meet so many business leaders, he must have heard their shock and horror about the Government’s roll-backs on net zero. Earlier this month, the Aviva chief executive officer Amanda Blanc said that the Government were putting our climate goals as a country “under threat”, putting at risk
“jobs, growth and the additional investment the UK requires”.
She is not wrong, is she?
Graham Stuart
The hon. Gentleman has a well-founded and highly esteemed reputation for anger. Under this Government, this country has cut its emissions more than any other major economy on the planet, and we have the most ambitious plans for 2030. When I attend COP28 next week, we will be inviting and supporting others to join the UK, which under this Conservative Government has led the way on a pathway to net zero.
Joanna Cherry
The Industrial Decarbonisation Research and Innovation Centre based at Heriot-Watt University in my constituency is doing incredible work on the green transformation across the UK’s industrial heartlands. It is working with all the biggest industrial clusters and is supporting more than 30 universities and research initiatives, looking at all aspects of the Government’s decarbonisation challenge. As such, it is well placed to assist business to meet our net zero targets. The problem is that its funding is coming to an end next March, and at present there is nothing to replace it. The science Minister promised me a meeting about this urgent issue several months ago, but it has been cancelled a number of times. Will the Minister advocate with his colleague so that I can get this meeting arranged and get funding in place for IDRIC to continue its fantastic work?
Graham Stuart
I thank the hon. Lady for her question and for championing vital research, not least in Scotland. I am looking forward to meeting scientists when I am in Scotland over the next couple of days. We have all heard her request, and it will be noted.
Philip Dunne (Ludlow) (Con)
My right hon. Friend mentioned that he will go to COP28 next week. Could he remind Members of the House, particularly those on the Opposition Benches, of the measures taken in last week’s autumn statement to help to promote the green energy agenda in this country?
Graham Stuart
My hon. Friend is quite right. We must never forget the parlous state of this country in 2010. Less than 7% of our electricity came from renewables—that was the legacy of the right hon. Member for Doncaster North (Edward Miliband). In the first quarter of this year, that was nearly 48%. Opposition Members raised the issue of people being cold and unable to pay their bills, but just 14% of homes were insulated properly; now, it is 50%. In last week’s autumn statement we heard announcements about the grid and—
Mr Speaker
Order. The Minister talks about emissions, and we are getting a lot of them from him today.
David Morris (Morecambe and Lunesdale) (Con)
My constituents put in 10% of the energy into the national grid from two nuclear power stations. We are No. 7 on the template for new builds, so I would like to invite the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) to come to Heysham to see for himself the good work of EDF and the new nuclear power programme that is coming to my constituency.
Graham Stuart
My hon. Friend is a stout champion not only of the pathway to net zero but of the jobs and prosperity that come with it. It is with great alacrity that I accept on behalf of my hon. Friend the Minister.
Anne McLaughlin (Glasgow North East) (SNP)
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Minister for Energy Security and Net Zero (Graham Stuart)
This has been a record year for onshore wind, which is already the largest renewables technology. The latest contract for difference added an unprecedented 1.7 GW.
Dame Meg Hillier
The Minister seems to be comparing figures I have not seen. If it is a record year, why have we seen such a dramatic drop in planning applications for onshore wind farms and in the number of onshore wind farms delivered? From a peak of 64 applications in 2011, it went right down to zero in 2019 and now to 10 in 2022, the latest figures the House of Commons Library could provide. That does not seem like a record year to me. Is it not time the Government stopped shilly-shallying on onshore wind and backed the builders, not the blockers?
Graham Stuart
The hon. Lady is renowned in the House for her arithmetic skills, but in this case they seem to have failed her. The 1.7 GW is a tremendous success. I share her enthusiasm for onshore wind where communities support it. In September, the Government announced changes to planning policy for onshore wind in England to help make it easier and quicker for local planning authorities to consider and, where appropriate, approve onshore wind projects where there is local support.
Mr Philip Hollobone (Kettering) (Con)
In the Kettering constituency there are 30 large wind turbines. Together with solar panels, they generate enough renewable electricity to power all 45,000 homes in the constituency. Is this not yet another case of where Kettering leads, others follow?
Graham Stuart
My hon. Friend has championed, does champion and, I am sure, will continue for many years to champion the good people of Kettering, and the fact that they are providing such leadership on net zero and the delivery of renewables after our parlous inheritance from the Labour party. Let us make sure that we never go back to a system in which renewables are not brought on to our grid in the way they are today.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister is being a little shameless with his figures. We really ought to look at what is continuing to happen in England. In England, industry and other bodies warned that the supposed changes to onshore planning restrictions that were announced in September were far too timid to make any real difference to the dearth of new onshore wind.
I recently visited the site in Leighton Buzzard of the only turbine that has been put in place onshore in England since those supposed restrictions were lifted. It turns out that it has been in the planning process since 2014, and is not on a new site anyway. The Department’s renewable energy planning database shows that there are precisely zero new schemes in the pipeline in England. Should the Minister not go away and reconsider the remaining planning and funding restrictions on onshore wind so that it really can get going again?
Graham Stuart
As I have said, I share the enthusiasm on both sides of the House for onshore wind. The Government have set regulations that require onshore wind developers to consult communities in advance of submitting a planning application, as well as having it consulted on post-submission. We make no apology for rolling out this transformation in renewable technologies in concert with communities, rather than seeking to ride roughshod over them.
Stephen Morgan (Portsmouth South) (Lab)
Kenny MacAskill (East Lothian) (Alba)
The Minister for Energy Security and Net Zero (Graham Stuart)
This Government are proud to have made the UK a global leader in offshore wind, and the industry believes that UK jobs in the sector will rise from the current 30,000-plus to 100,000-plus by 2030—if, of course, Conservative stewardship continues.
Kenny MacAskill
Jobs for whom? That is the question. We have already seen the shameful situation of UK seafarers who work in the offshore wind sector being laid off, to be replaced by low-wage, exploited migrant labour. As the sector develops, as we see people go out to work on the turbines for longer and as we see the building of floating accommodation for them to stay on, there is a huge risk that those workers—not just those on the supply ships—will also face exploitation. Will the Minister work with Cabinet colleagues to ensure that the national minimum wage applies in the offshore sector beyond the 12-mile territorial limit? That is the solution to protect our workers, and those from abroad, from being exploited.
Graham Stuart
I thank the hon. Gentleman for his question, and I share his enthusiasm for making sure that we continue the development of good, well-paid jobs, and the development of the skills required to help people access those jobs, and that we do not have exploitation onshore or offshore during that development. It is a huge opportunity for the United Kingdom and for Scotland. Working together, I am sure we can develop it.
Tim Loughton (East Worthing and Shoreham) (Con)
As we know from the excellent Rampion wind farm in Sussex bay—hopefully it will soon be expanded—offshore wind farms support workers not just in energy production but in tourism, fishing and leisure too. This year we celebrate 50 years of the Protection of Wrecks Act 1973. It is estimated that there are more than 6,000 wrecks around the UK coast, but only 57 of them are listed, so will my right hon. Friend speak to his colleagues in the Department for Culture, Media and Sport about how we can co-ordinate activity between new wind farms and marine archaeologists so that we can boost both our efforts to combat climate change and our cultural protection, which will give particular assistance to coastal communities?
Graham Stuart
As ever, my hon. Friend puts his finger on an important point. Existing assets such as wrecks have so many uses, all of which need to be understood. Our seas look so large, but they have multiple uses for shipping, defence and energy. We are working to ensure that we have a strategic, joined-up energy plan and a spatial strategy so that wrecks, marine protected areas and other interests can all be protected in an integrated manner.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
Richard Fuller (North East Bedfordshire) (Con)
The Minister for Energy Security and Net Zero (Graham Stuart)
I thank my hon. Friend for all his work championing both this area and the concerns of his constituents. As he rightly says, planning policy and guidance encourage large solar projects to locate on previously developed or lower value land and we will indeed undertake to be vigilant in ensuring that those principles are respected.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Graham Stuart
The hypocrisy and the ignorance coming from the Labour party is extraordinary. We have decarbonised more than any major economy on this earth and we will decarbonise more to 2030, and we are doing it by unlocking a level of investment into renewable energy double that we have seen in the United States. So, Labour can take its selective facts and put them where the sun don’t shine.
Mr Speaker
I think that we have had a few problems with language already. I am sure the Minister will think carefully before he answers again.
Nick Smith (Blaenau Gwent) (Lab)
Graham Stuart
As I have said in earlier answers, we are seeking to encourage more applications. As far as I know, the hon. Member for Southampton, Test (Dr Whitehead) may be right, which is exactly why we are consulting on improving community benefits and have consulted on changing the planning system.
Anna Firth (Southend West) (Con)
I welcome the fact that the UK is doing more offshore wind than any other country in Europe, but fishermen in Leigh-on-Sea are deeply concerned about the effect of expanding offshore on fish stocks. Can the Minister assure me that renewable power production on the south Essex coast will also focus on tidal, and will he join my vision to make Southend pier a shining beacon of renewables, completely powered by tidal energy?
Graham Stuart
I share my hon. Friend’s enthusiasm for tidal. We have had a specific pot in previous rounds of the CfD precisely to develop that. We are the world leader in deployment and will continue to be, and I hope that her vision for her local area will be fulfilled.
Liz Twist (Blaydon) (Lab)
Graham Stuart
The Government are collaborating with industry to identify solutions to unblock barriers to offshore wind deployment. I know that the UK Infrastructure Bank is providing support to the Port of Tyne. The FLOWMIS project is currently live, so I cannot comment on it, but I would be happy to meet the hon. Lady to discuss these issues.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
My right hon. Friend the Secretary of State has made a lot of progress in trying to bring together a holistic network, but it is too late for communities in Suffolk, Norfolk and Essex. In that regard, will she request that the electricity system operator publishes its survey of the Bradwell site, and that it undertakes a fresh one, with a full cost-benefit analysis, as a pilot for future connections?
Caroline Lucas (Brighton, Pavilion) (Green)
It now seems clear that the funds that the Government plan to commit to loss and damage at COP28 will come from the UK’s existing climate finance commitments. We cannot tackle the climate crisis by robbing Peter to pay Paul. Given that a properly resourced and operational loss and damage finance fund has to be a litmus test of success, will the Minister commit to looking at new and additional forms of funding, including a permanent windfall tax on fossil fuel companies and a tax on high-emission travel, to deliver new finance and make polluters pay?
Graham Stuart
The hon. Lady is right to highlight loss and damage as we approach COP28. We were pleased to play our part on the transitional committee in getting a recommendation to COP, and we look forward to its being operationalised in the near future. I agree with her that, if we are to get the scale of finance that is required, particularly for the most vulnerable countries at the front end, we need to look at innovative ways of adding to that finance.
Alicia Kearns (Rutland and Melton) (Con)
Wind energy projects have a standard compensation scheme for all local communities, but solar projects do not. Industry will not act, so I urge my right hon. Friend the Secretary of State to bring in a standard measure for all solar projects to bring fairness to clean energy in our communities.
Graham Stuart
I thank my hon. Friend for her question and for pursuing this matter assiduously; we have met and discussed it, among other issues. I think both industry and communities would appreciate greater clarity about community benefits, and I look forward to discussing that with her further.
Imran Hussain (Bradford East) (Lab)
One in four households in my constituency is now living in fuel poverty, compared with the national average of one in 10. Why do the Government continue to give millions to gas and oil giants, which enjoy billions in bumper profits, while our constituents continue to be dragged into poverty?
Graham Stuart
Regrettably, the content of so many Opposition Members’ questions this morning is absolutely not in line with reality. Oil and gas production in the UK not only typically has lower emissions than the alternative of imports, but supports 200,000 jobs, all of which would be at risk if the Labour party came to power. To answer the hon. Gentleman’s specific question, it is expected to raise £50 billion of tax over the next five years, all of which—including the safety of his constituents—would be at risk if Labour ever came to power.
Trudy Harrison (Copeland) (Con)
Do my right hon. Friend the Secretary of State and the Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), agree that the very best location for two 470 MW Rolls-Royce small modular reactors is next to Sellafield, which will use some of the power and is a centre of nuclear excellence?
Sammy Wilson (East Antrim) (DUP)
This year, receipts from the emissions trading scheme will reach a new peak of £6.2 billion. The effects of attacks on energy-intensive industries are felt by workers in the aluminium and steel industries, and this week by workers at Grangemouth, where one of our few remaining oil refineries is going to close. Despite what the Minister said earlier, is it not a fact that, rather than helping energy-intensive industries, net zero policies are destroying them and sending them overseas?
Graham Stuart
The right hon. Gentleman will be aware that the EU has already legislated for a carbon border adjustment mechanism. Following our hosting of COP26, 90% of global wealth was covered by net zero pledges. At the beginning of that conference, the figure was just 30%. The right hon. Gentleman may not see it, but this is the direction the world is going in, and if he wants to future-proof British jobs he will get with the decarbonisation programme. Opposing it is to oppose the interests of his constituents and the sustainability of their of their jobs.
Sara Britcliffe (Hyndburn) (Con)
Melton CLP has of the biggest sites in Hyndburn and Haslingden. The renewables obligation certificate is due to end in 2027, and certainty is needed on whether the scheme will be extended or another scheme will take its place. Will the Minister give us some assurances as to what comes next?
Graham Stuart
Mindful of how loquacious I am, I simply say to my hon. Friend that I will meet her to discuss the matter.
Tim Farron (Westmorland and Lonsdale) (LD)
Over the space of a year, living in a cold home cost 21 of my constituents their lives. One reason behind that tragic figure is that homes in rural communities are more difficult to insulate. On that basis, will the Minister urgently review the ECO4 and ECO+ guidelines to prioritise the hardest properties to insulate so that we cut bills and save lives?
Draft Green Gas Support Scheme (Amendment) Regulations 2023
Graham Stuart Excerpts(1 year ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
I beg to move,
That the Committee has considered the draft Green Gas Support Scheme (Amendment) Regulations 2023.
It is a pleasure to serve under your chairmanship, Mrs Murray. The draft regulations, which were laid before the House on Monday 16 October, make a set of changes to improve the administration of the green gas levy, which is charged to licensed gas suppliers in Great Britain, and ensure it works in line with policy intent. The regulations will reduce burdens arising from the levy for Ofgem, which administers it, and for gas suppliers. The green gas levy funds the green gas support scheme, which is a Great Britain-wide tariff-based scheme that facilitates ongoing investment in the biomethane industry and enables the development of new production plants for injection into the gas grid.
The amendments made by the regulations are technical and do not alter the aims of the GGSS or GGL; they will not add to the amount raised by the GGL or the rate at which it is charged. We have consulted the Scottish and Welsh Governments on the regulations. The Scottish Government have consented to them, as required under the Energy Act 2008, which provides the underlying primary powers for the regulations. The Welsh Government have also agreed to the changes.
The amount that the green gas levy collects is set according to a formula specified in regulations, and this statutory instrument will change the formula so that it will operate as always and originally intended. Regulations require the Secretary of State to publish a maximum amount that the green gas levy can collect, which is called the maximum levy amount. That is set at the total that the levy is expected to collect in its peak year. The statutory instrument will allow the maximum levy amount to be set by reference to whatever year is expected to be the peak year, members of the Committee will be thrilled to learn. The regulations introduce powers for the Secretary of State to set a de minimis amount for the green gas levy. That amount will apply to selected payment obligations and credit cover requirements. Obligations below the threshold will automatically be disapplied. The instrument makes five further minor changes.
In conclusion, the changes made by this statutory instrument provide the basis for the green gas levy to be collected efficiently and at the intended rate over the lifetime of the green gas support scheme. The instrument will help Ofgem to administer the policy effectively and as intended. It will reduce administrative burdens and ultimately benefit bill payers by reducing levy administration costs. I commend the draft regulations to the Committee.
Dr Alan Whitehead (Southampton, Test) (Lab)
It is a pleasure to serve under your chairmanship, Mrs Murray; we seem to be meeting rather frequently today, but that is always a pleasure.
The SI concerns the green gas support scheme, which is a scheme that I advocated for a very long time. I was delighted when it came in in 2021, and it has proved very successful in bringing about substantial advances in biomethane production and substantial increases in the amount of biomethane injected into the grid, thereby decarbonising the gas grid to a considerable degree. I hope it continues to be successful. We have to be careful that people who are in favour of sustainable aviation fuel do not seek to pinch that biomethane in the not-too-distant future, but that is perhaps a debate for another day.
As the Minister outlined, the instrument makes some very minor changes that streamline and make more efficient the operation of the scheme. Those are unexceptional changes, which we certainly support. I have two very brief questions—or rather, one brief question and a suggestion—as far as the changes are concerned. I would be grateful if the Minister could respond, and I am sure he will do so very briefly and succinctly when we get to that in a moment.
The first issue is that, as hon. Members will have seen, the interest that accrued in Ofgem’s account from the levy was, from the beginning of the scheme, added to, rather than deducted from, the levy collection target. Of course, that does not make much sense unless it was a mistake when it was first introduced in the framework. This instrument changes that addition to a deduction. My question is, what has happened to what appears to be an over-collection into the levy from gas suppliers, which are levied for the purpose of the support scheme? I am not a great advocate of handing back money that has been collected to make a scheme work, but has the Minister ever received any complaint or concern from the gas industry that it was being over-levied and would like its money back? I would imagine that, otherwise, it would stay in the support scheme and therefore make the MLA more appropriate to enabling the scheme to last longer.
The other point, which the Minister has mentioned, is that the maximum levy amount in the scheme is designed to, among other things, cope with the maximum point at which the levy is likely to be called on. It is a sensible change to make that maximum point rather more flexible on the decision of the Secretary of State. We want the levy to remain sufficiently flexible to finance the green gas support scheme after 2028-29, because we hope it will go on considerably longer than that.
Although the change is positive, it seems to me a little clunky. It is a fixed rate which requires the Secretary of State to take a decision on it. At that distance in the future, it is quite likely that inflation will begin to eat into the MLA seam. It might have been a better idea to index the MLA against inflation over the periods, leaving the Minister to take a decision only in the event that matters proved adverse to the passage of inflation over a period of time, rather than having to take a decision should things need adjusting even within that parameter.
Those are my only two comments on the scheme. I am sure the Minister will be delighted to know that I am going to stop very shortly.
Dr Whitehead
Those two clarifications would be very helpful to understand exactly where the changes to the scheme can best go, and whether we need to do any more work to make sure these amendments to the scheme stick as well as they are clearly intended to.
Graham Stuart
I thank the hon. Gentleman for his questions, and for his enthusiasm. He may be one of a tiny number of people who has quite that level of enthusiasm for these schemes, and I congratulate him on that, because they are important and excellent.
The hon. Gentleman asked whether the money being added rather than deducted was a mistake—yes, it was—and whether that money has been taken. To date, none of it has been taken because of the structure of the system, so there is no money to talk about. If it had been, it would have stayed in the levy and been rolled over, as any spare funds are in any case. It would have just been rolled over to the following year and thus have helped to reduce the levy the following year, so there are no worries on that front.
On the maximum levy amount, it now has the flexibility it requires. The Secretary of State can change the levy rate annually when the levy rate is set.
With no further ado, and with thanks to the Committee for its support for these technical arrangements, I commend this instrument to the House.
Question put and agreed to.
Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023
Graham Stuart Excerpts(1 year ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
I beg to move,
That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023.
It is a great pleasure to serve under your chairmanship, Sir Gary, and to be with colleagues from across the House on this clearly brilliantly whipped Committee.
The UK emissions trading scheme—the UK ETS— was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020 as a UK-wide greenhouse gas emissions trading scheme to encourage cost-effective emissions reductions, contributing to the UK’s emissions reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments—we are all in this together. Our aim is to be predictable and responsible guardians of the scheme and its markets. In so doing, we will ensure that the scheme remains a cornerstone of our ambitious climate policy.
Shailesh Vara (North West Cambridgeshire) (Con)
My right hon. Friend mentions that the UK Government are working with the devolved assemblies. Given that the Northern Ireland Assembly is not working at the moment—or not sitting, anyway—are there other mechanisms in place to ensure that the civil servants in Northern Ireland are dealing with this matter and co-operating so that we can move forward as four nations?
Graham Stuart
My right hon. Friend, with his customary acuity, will have noticed that the draft order does not apply to Northern Ireland. As it happens, there are not counterparties in Northern Ireland to which these particular provisions apply, but energy in general is devolved to Northern Ireland, and it is up to Northern Ireland to take care of it.
The statutory instrument will implement a number of necessary changes and improvements to the UK ETS. The changes relating to aviation free allocation rules and to the treatment of electricity generators follow the announcements made by the UK ETS Authority in July, in our response to last year’s consultation on developing the UK ETS. The final change remedies an inconsistency with free allocation and carbon capture at UK ETS installations.
On aviation, the SI will cap the total amount of aviation free allocation that operators are eligible to receive at 100% of their verified emissions.
The SI makes technical changes to free allocation rules regarding the electricity generator classification for industrial installations—a minority sport, if ever there were one. It will amend the electricity generator classification to consider only electricity exports in the baseline period, instead of all electricity exports since 2005, allowing operators to change their installation’s electricity generator classification if they have put a stop to the export of electricity. Electricity exports representing no more than 5% of the total produced will also be excluded from consideration in this classification.
The SI will amend the electricity generator definition to exclude installations that have produced electricity for sale if that electricity was produced by means of a high-quality combined heat and power plant operating as part of an operator’s industrial activity. That will limit reductions in free allocation entitlements and provide further encouragement for industrial operators to achieve improved efficiency for their combined heat and power plants.
The SI makes an operational amendment to the electricity generator classification to allow electricity generators to be eligible for free allowances after the application date if they can demonstrate that they produced measurable heat by means of high-efficiency co-generation during the allocation period.
The SI remedies an inconsistency in legislation to make it clear that carbon capture and other types of regulated activity may be carried out on the site of the same installation. It will allow provision of free allowances to industrial installations at the same site as a carbon capture plant.
As the Northern Ireland Assembly is not sitting and cannot consider affirmative legislation, the SI covers only Great Britain. Officials in Northern Ireland have agreed that none of the provisions currently affects operators in Northern Ireland.
These changes will deliver on commitments made by the UK ETS Authority and improve the operation of the scheme. For aviation, the SI will ensure that free allocation is distributed appropriately until full auctioning for the aviation sector begins in 2026. That follows the decision announced in July that aviation free allocation will be phased out by 2026.
On free allocation technical changes, the SI will ensure that installations classed as electricity generators, whose eligibility for free allocation is limited, are able to change their classification if they are no longer exporting electricity. The SI will also ensure that industrial installations with high-quality combined heat and power plants that export excess electricity to the grid are not classified as electricity generators, in order not to limit their eligibility for free allowances.
On the electricity generator operational amendment, the SI will ensure that electricity generators can become eligible for free allowances during an allocation period if they meet the eligibility criteria.
On free allocation rules for carbon capture, the SI will prevent industrial installations from being disqualified from receiving free allowances because they are on the same site as a carbon capture plant—a situation that would pose a risk of disincentivising the uptake of crucial carbon capture technology.
These changes either follow appropriate and comprehensive consultation with stakeholders or did not require consultation. In the “Developing the UK ETS” consultation in 2022, the UK ETS Authority considered what technical improvements could be made to the current aviation free allocation methodology until aviation free allocation is phased out. The responses to the consultation called for an end to over-allocation. The policy intent of aviation free allocation is to mitigate the risk of carbon leakage, and the policy did not intend for aircraft operators to receive more allowances than their verified emissions. To that end, in July the UK ETS Authority announced the decision to cap aviation free allocation at 100% of verified emissions.
In the “Developing the UK ETS” consultation, we considered technical changes to free allocation rules regarding the electricity generator classification. The majority of respondents agreed with our suggested amendments, and the UK ETS Authority announced that it would proceed with changes to the electricity generator classification.
A consultation was not carried out for the CCS free allocation amendment as that is a clarification of existing policy intention and not a change to the policy.
Richard Fuller (North East Bedfordshire) (Con)
Would the Minister, either now or in summing up the debate, explain a bit about the phrase “free allocation”? On the face of it, if free allocation is to be set at 100% of the sector’s verified emissions, it does not sound like there is a lot of free space. He mentioned that free allocation was originally set at 127% because of concerns about carbon leakage. What has changed so that the Government are now satisfied that cutting it to 100% will not result in carbon leakage?
Graham Stuart
Fundamentally, due to the way the scheme was brought in, the airlines have had more free allocations than their actual emissions. The scheme was designed to cover their emissions until we phased out those allocations, as we are now doing, but they were being over-compensated, based on historical figures that no longer apply. These provisions will ensure that the airlines are not being given free allocations with a commercial value on the market over and above that which they need in order to operate. I hope that answers my hon. Friend’s question.
These alterations to the UK emissions trading scheme will support its role as a key pillar of the UK’s climate policy. They show that we will take action to improve the scheme where necessary, and they continue our record of delivering on our commitments. I commend the draft order to the Committee.
Dr Whitehead
I am afraid not. I distinctly detect that that was part of an overture, not a final movement.
As I said, the agreement states that
“the Parties shall cooperate on carbon pricing”,
but there is no evidence of such co-operation. Not only that, but the two systems are diverging significantly. Hon. Members may ask whether that matters. It matters a lot in view of what is happening in the EU on the development of carbon border adjustment mechanisms.
The Chair
Order. Minister, sedentary interventions are never helpful. May I just ensure that we are talking about the order that the Committee is considering and not the issue generally?
Graham Stuart
I thank hon. Members for their contributions to this debate on pretty technical adjustments to the ETS.
By capping aviation free allocation, we are ensuring that it is distributed appropriately until full auctioning in 2026. The current situation is not deliberate; the policy did not intend for aircraft operators to receive more allowances than their verified emissions. It is noteworthy, though, that those allowances meant that operators were doubly encouraged to invest in cleaner operations, since they were incentivised not only by any savings from investment in more fuel-efficient aircraft, for instance, but by the credits that they received within the ETS. The Government have no plans to claw any of that back.
On the overall position of the UK carbon market, the UK ETS is of course a market mechanism. The price of carbon allowances in the UK ETS is set by the market. In line with the net zero cap we announced in July, the supply of emissions allowances entering the market will fall significantly every year from 2024. We are committed to continuing to deliver on these changes, as we have shown, by legislating to amend the supply of allowances over the coming years and publishing an auction calendar.
The hon. Member for Walthamstow mentioned the CBAM. We are closely following developments on the EU CBAM and engaging with the Commission on technical considerations that are relevant to UK manufacturers. As the hon. Lady will know, EU CBAM charging does not start until 2026.
I am nervous of opening up wider matters, although you have been generous, Sir Gary, in allowing discussion of issues that are broader than the technical amendments that the SI makes. If Members want a broad debate on the ETS and its interaction with Europe, there are many opportunities in the parliamentary calendar to do exactly that.
Dr Whitehead
Given that the Minister has mentioned the CBAM in response to the inquiry of my hon. Friend the Member for Walthamstow, I want briefly to record that iron and steel are in the first phase of the EU CBAM, and that that may affect UK iron and steel negatively. They could be treated as if they were imports to the EU, similar to iron and steel from India or other parts of the world. That should give substantial pause for thought about how we proceed with the UK ETS.
Graham Stuart
The hon. Gentleman is right about that being a substantial prompt for thought, but not on the particular order that the Committee is considering. As hon. Members will know, we ran a consultation earlier this year on domestic measures to mitigate carbon leakage, including consulting on a potential UK CBAM and mandatory product standards.
In answer to the point that the hon. Member for Walthamstow made, our commitment to the UK steel sector is clear. We continue to work closely with industry, including British Steel, to secure a sustainable and competitive future for the sector and its workers. We will continue to fulfil that commitment.
As I said, the UK ETS is a market mechanism, and the price of carbon allowances is set by the market. That continues to be our position.
The UK ETS is a cornerstone of UK climate policy. It is worth noting, to look momentarily at the bigger picture, that since 1990, the UK has cut its emissions by more than any other major economy on the planet. The Government put net zero into law for the first time, and the former Conservative leader, now the Foreign Secretary, was the first leader of a major party to call for a climate Act, which was introduced in 2008. I was proud to serve on the Joint Committee on the Draft Climate Change Bill under the excellent chairmanship of Lord Puttnam.
Graham Stuart
Yes. The SI sets a cap on emissions in the sectors covered—currently a quarter of the UK’s emissions. In doing that, it guarantees that those sectors will reduce their emissions in line with our world-leading net zero target,
Only yesterday, I was in The Hague, not, as some members of the Committee might have thought or hoped, answering for my crimes, but meeting Energy Ministers from the North Seas Energy Cooperation and Kadri Simson, the European Commissioner for Energy. I called for the full implementation of the energy chapter of the TCA and urged the EU to put the same energy into it as we are determined to show. We want the chapter to be fully implemented because, as the hon. Member for Southampton, Test said, we signed up to it in all solemnity.
In July, the UK Government and the devolved Governments, as the joint UK ETS Authority, set out a comprehensive package of reforms to the scheme. It increased the ambition of the UK ETS and set it on a path to net zero. As that package set out, a wide range of changes is required to ensure that the UK ETS remains a key part of the UK’s approach to achieving net zero.
We can be proud of our record to date: cutting more emissions than any other major economy on Earth and having the most ambitious nationally determined contribution up to 2030—a 68% reduction on 1990 levels —of any major economy on the planet, far ahead of the EU at 55%, as you will have noted, Sir Gary.
With that, I have probably said enough. I commend the order to the Committee.
The Chair
I can confirm that you have said enough.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023.
COP28
Graham Stuart Excerpts(1 year ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
I beg to move,
That this House has considered COP28.
I am glad to come to the House today to discuss this important subject. We discussed COP28 at a recent reception hosted by the all-party parliamentary group for climate change last month, and also at a recent meeting of the Environmental Audit Committee. I welcome the interest of colleagues from across the Chamber. I note that the all-party parliamentary group on the environment has just released its report on the subject, including nine recommended priorities for COP28. That, too, is a welcome contribution to the debate.
The upcoming conference of the parties, hosted by the United Arab Emirates, comes at a really important moment in tackling the climate crisis. Amid record temperatures and emissions, the first comprehensive stocktake of progress against the Paris agreement at COP28 will show that the world is badly off track. We have made significant progress through the Paris agreement, with temperature projections shifting from a 4° increase before Paris to an increase of between 2.4° and 2.7° after Glasgow, thanks to the nationally determined contributions that countries have said they will make.
But we know that is not enough. In Glasgow, we cemented the goal of limiting global temperature increases to no more than 1.5° and made that our north star, and that has been carried forward by the UAE presidency. The latest science, and the impact that we see even at 1.1°, shows us why that is so important. A top priority for the UK is to leave COP28 with a clear road map to keep a ceiling of 1.5° in reach.
The UK heads to COP28 with a record at home and internationally that is second to none. The Prime Minister recently reaffirmed our commitment to net zero and set out a new approach to get there. This will make it easier for businesses, supply chains and households to adapt to the new normal. We will build on our previous successes and continue to lead.
I am not sure that we are always as good as we should be at sharing this story, of which the nation can be proud. At home, we have decarbonised more than any major economy on this planet, cutting our emissions by 48% since 1990. Not only have we decarbonised faster than any major economy on the planet to date, but we have the most ambitious plans and the most ambitious nationally determined contribution for 2030 of any major economy. Our commitment is to a 68% reduction by 2030. By comparison, the EU, which has been a genuine force for good in this space, has an NDC of 55% by 2030, although it hopes and expects to exceed that. How have we done that? Our inheritance was not a great one. As recently as 2012, nearly 40% of our electricity came from coal. Next year, thanks to the policies of this Government, it will be zero.
We inherited in 2010 an electricity system in which, almost unbelievably, less than 7% of our generation came from renewables. In the first quarter of this year, it was nearly 48%. We have transformed our renewables base. We have eliminated coal. I am aware of no country anywhere that has done more and gone further, faster, but leading in that way is not enough for us, as a country that produces less than 1% of global emissions, right though it is that we should do so. We also have to lead the global conversation, and that is exactly what we did at COP26. When we took on the presidency of COP26, 30% of global GDP was covered by net zero pledges. When we handed on to Egypt, it was over 90%, and I am proud to say that this country led that conversation.
Not only are we leading, but the rest of the world is accepting the need to act, even if nationally determined contributions and national plans do not yet match what is needed to meet the net zero challenge, but I am pleased to say that ours do. We have ambitious targets, and we will deliver on them. As I said, we have to make sure that the other 99% of global emissions start to follow the same trajectory, so our offer and engagement will be all about encouraging the rest of the world to join the UK on a net zero pathway.
Two years on from Glasgow, the need to accelerate action is more urgent than ever. The world needs to decarbonise more than five times faster than we did in the last two decades. The country in the world that has cut its emissions more than any major economy, namely the UK, has reduced them by 48% in 31 years, but according to the Intergovernmental Panel on Climate Change, the scientific body that advises us on this, the world needs to cut its emissions by 43% by 2030 from a 2019 baseline to keep net zero alive. That shows us the challenge. We need to be peaking globally by 2025.
The latest United Nations framework convention on climate change nationally determined contributions synthesis report shows that emissions are set to be 2% below the 2019 level by 2030 if all the commitments made so far are met—2%, when the science says that we need a 43% reduction. The latest “State of Climate Action” report from the World Resources Institute carries a similarly stark message: we need to accelerate the transition rapidly. Only one of its 42 indicators for the progress needed by 2030 was on track.
We also have to be up front about the fact that we face significant challenges coming into this COP: geopolitical tension, conflict and a challenging macroeconomic context in which Governments are battling inflation and debt. G20 relations are strained, as I witnessed at first hand when I went to the Climate Ministers G20 meeting in Chennai. Some countries are seeking to stoke divisions, to deflect from their own responsibility to take action. At the same time, record temperatures and widespread climate impacts are increasing the need to act on adaptation, loss and damage, as well as reduce emissions. We need broad-based progress across all pillars of the Paris agreement at COP28.
Finance will be a critical part of the transition. Developed economies need to deliver on their promise to mobilise $100 billion in climate finance for developing countries. We all know that we were due to deliver this in 2020 and, collectively, we fell behind. In Glasgow, we set a course correction to meet the goal by 2023. I am pleased that today’s report from the OECD shows that we are ahead of the projections we set out in Glasgow. We delivered $89.6 billion in 2021, and the OECD has indicated that it is likely—not definite, but likely —that the $100 billion goal was in fact met in 2022. Delivery of that commitment is something that the UK has championed, and I am pleased to say that we recently made our biggest ever climate finance commitment through our $2 billion contribution to the green climate fund.
There is also an urgent need to realign the financial system so that it is fit to address the challenges we face today, including climate and development. The science is unequivocally clear that urgent action is needed. The vital work done by the IPCC and other scientists makes clear that the risks and impacts we face will grow significantly as temperature increases, including the risk of breaching tipping points, which will accelerate that negative trend.
At COP28, we want to see progress across five areas, the first of which is commitments to keep 1.5° alive. Coming out of the global stocktake, we need renewed consensus and increased ambition to keep 1.5° within reach. We also need a clear, forward-looking road map with a commitment to peak global emissions by 2025; global targets for key sectors, particularly those that are hard to decarbonise; and commitment to action, including through initiatives such as the breakthrough agenda and in other key areas such as forests, the phasing out of hydrofluorocarbons and clear guidance for the next round of NDCs, which will be a central feature of the Belém COP in the Amazon in two years’ time.
The second area is clear progress towards a clean energy future, including a commitment to triple global renewable energy deployment and double energy efficiency by 2030. That sits alongside a clear commitment on phasing out unabated fossil fuels—our position on that issue is unchanged since the G7 commitment that the UK helped to deliver earlier this year—and to phase out coal power, building on COP26 outcomes.
The third area is reform of the international financial institutions to unlock trillions for global challenges including development and climate action, and delivery of our existing commitments, alongside $100 billion per year in climate finance for developing economies. As I have mentioned previously, the OECD’s latest report on 2021 figures shows that developed countries are on track to meet that goal.
The fourth area is improving adaptation to climate change, delivering on our Glasgow commitment to double adaptation finance by 2025, and establishing an effective loss and damage fund to support countries that are particularly vulnerable to the adverse effects of climate change. We are pleased that the transitional committee that was set up to reach agreement on what that loss and damage fund should look like has put forward a recommendation to COP28. The UK was instrumental in securing that recommendation, and we hope it will be agreed by all parties at COP28. We will continue to advocate for the priorities of the most vulnerable: we held a third climate and development ministerial at the pre-COP event last month in Abu Dhabi, which I co-chaired, to do just that.
The fifth area is that we want real progress towards protecting, restoring and sustainably managing nature—for example, by making concrete progress on the historic agreement we landed to halt and reverse deforestation by 2030.
Action to deliver net zero is not just a matter of doing the right thing, or of avoiding harm: it is crucial to our security and prosperity here in the UK, both now and in the future. The global net zero transition could be worth £1 trillion to UK businesses between 2021 and 2030. UK businesses are in the vanguard of recognising the opportunity that springs from net zero: over two thirds of FTSE 100 companies and thousands of small businesses have pledged to reduce their emissions in line with the 1.5° target under the Race To Zero campaign. Over half of the signatories to that campaign are from the UK.
Net zero is already an engine for growth and revitalisation of formerly deindustrialised areas in the UK. We are a leader across a number of areas: we have the world’s five largest offshore wind farm projects and the world’s No. 1 ranked green finance centre, and we are leading the way in developing an approach to carbon capture and storage, to name a few examples. Action on climate and nature is also crucial for our energy security and to reduce exposure to future global shocks, such as those caused by Russia’s invasion of Ukraine. The North sea’s transition to a clean energy powerhouse with 50GW of offshore wind by 2030 will reduce exposure to volatile international energy markets and be an engine for clean energy exports. Action on adaptation and nature is crucial in a world where food security is increasingly under threat.
However, we need everyone with us on this journey. The opportunities are huge: in 2023, we will see a record $1.8 trillion invested in clean energy alone. According to the International Energy Agency, electric vehicles are on track to account for two thirds of new car sales globally by 2030; the transition to clean energy and electric vehicles is taking off, and it will spread to other sectors quickly. At COP28, we need to show progress on delivering the historic agreement we landed in Glasgow. We must use UK expertise to scale green finance, support others to accelerate the transition in key sectors of the global economy, and set a clear pathway to 1.5°. At this point, I am happy to hear from other Members.
Kerry McCarthy
In all the conversations I have with businesses, they say that they want certainty and a strategic sense of direction; they want to know where they are going, so we should not move the goalposts. There was no reason to row back from that target, and as I have said, the motor industry itself has expressed concern. That industry needs to develop a market in new vehicles now, so that in a few years’ time, we will have the affordable second-hand market that we need so that people can afford to make the transition. The right hon. Lady is absolutely right that the infrastructure is not there, but that is a challenge that we should rise to, getting a comprehensive network of public sector charging points, grid connections and so on. She will have heard that from Labour at its recent party conference.
Let me turn to domestic progress. Again, to listen to the Minister, one would think that everything was going swimmingly. The Climate Change Committee has assessed that the UK is unlikely to meet its NDC to reduce emissions by 68% between 1990 and 2030. The Government’s own carbon budget delivery plan conceded that Ministers only have plans for 92% of our NDC, but they have said that they are confident about delivering those emissions savings—that is something we often hear from the Minister, without any actual detail about how we will get there. In fact, it has been assessed that the Government have credible plans for only 28% of the required emissions reduction. There is a lot of work to be done.
The Climate Change Committee assessed the Government’s policies in October with and without the Prime Minister’s climate climbdown, and found a 20% increase in the proportion of the NDC pathway covered by “insufficient plans” having taken into account the Prime Minister’s intervention. It said that the
“widespread uncertainty for consumers and supply chains”,
is more difficult to quantify, but, as I have said, at all the meetings I have had, people are saying that this has absolutely knocked them off course. There is a huge amount of enthusiasm for going down the path to net zero and I am told that there is a lot of private sector finance ready to invest, but they need a stable economic climate, not a Prime Minister who is U-turning just when action is needed.
Following the disastrous contracts for difference auction, the proportion of the electricity supply pathway with significant risks increased by over 5,000%. The refusal to help renters contributed to a fivefold increase in insufficient plans for buildings. When the Government’s policies are, as the Climate Change Committee found,
“making Net Zero considerably harder to achieve”
and driving up energy bills, how can Ministers go to COP trying to boast about how well things are going in the UK? I do hope for action before COP. We have the autumn statement next week, and we were expecting some plans—I think the Chancellor promised in the spring that he would bring them forward—in response to the Inflation Reduction Act and the measures we then saw in the EU. I hope that we do get something on that front to at least reassure businesses that the Government still have net zero in their sights and see it as an important part of a future industrial strategy for us.
The UK used to be at the forefront of global climate action, and again the Minister was being a bit cheeky when talking about the progress that has been made since 2010. I think he entered Parliament when I did in 2005. Is that right?
Kerry McCarthy
The Minister may recall being on the Green Benches in 2008 when the Labour Government introduced the world’s first Climate Change Act, which was then adopted by more than 100 countries around the world. It was groundbreaking.
Graham Stuart
If the hon. Lady wants to have a history lesson—and we did, indeed, come in together—she will remember that it was David Cameron, as the leader of the Conservatives, who was the first leader of a major party in this country to call for a climate Act. I think the Liberal Democrats leader followed suit a few hours later, and the Labour Government then eventually did so. I served on the Joint Committee, chaired by the brilliant David Puttnam, that put this into place, so I will not take any lectures from her. It was the Conservatives who led the charge to get that going—the first major party to support it—and I was pleased to see it put on the statute book. We were of course the first major economy in the world, and the first Government, to legislate for net zero overall.
Kerry McCarthy
It was a Labour Climate Change Act brought in by the now shadow Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Edward Miliband). I can see why the Minister may be desperate to try to claim credit for it, because the Government have so little else that they can claim credit for, but it was a Labour Act introduced by a Labour Government. It is because that was enacted that we have seen so much progress, and as I have said, it was taken as a model for many other countries to follow. However, we are now setting entirely the wrong example to other countries by scaling back on our net zero ambition and last year the Prime Minister had to be forced to attend COP.
Kerry McCarthy
The Minister will have an opportunity to respond in his wind-up at the end, but I suppose I will give way once more.
Graham Stuart
This is a really important topic, and it is important that we get our language right. The Government have not scaled back our net zero ambitions for either our NDC in 2030 or net zero by 2050. The hon. Lady can make lots of points, partisan or otherwise, but it would be great if she acknowledged that this country has, under this Conservative Government, cut emissions by more than any other major economy on earth and has the most ambitious plans for 2030.
Kerry McCarthy
The Minister will also know that the Government had to be taken to court, because it is one thing declaring targets and ambitions, but unless they have the strategy—[Interruption.] The Government were taken to court, and that is why they had to produce the delivery plan earlier this year. The Climate Change Committee, which by his account was all his idea because it was all his idea to introduce the Climate Change Act, has said that the Government are not on track to meet their ambitions. So the Minister cannot just rely on grandiose boasts about where he wants to get us to if he does has not have a plan to get us there, and it is very clear that he does not have a plan to get us there.
The Minister said that we represent only 1% of global emissions, which is true, but the NDC emissions gap is approximately the total combined annual emissions from the top three emitting countries. Yes, they have responsibilities, but this does need everybody everywhere to play their part. I do not think we would want to try to suggest that we were insignificant in the big global picture because we represent only 1% of the total population.
I will move on specifically to the COP agenda and what we hope to see. Will the UK be calling for the phase-out of unabated fossil fuels, and does the Minister agree with the global stocktake report—[Interruption.] I am just about to come to that. I know the Minister mentioned it, but does he agree with the global stocktake report that fossil fuel subsidies are stifling cost-effective low-carbon alternatives? The global stocktake report states that
“lifetime emissions from existing and planned fossil fuel infrastructure will exceed estimates for keeping…1.5 °C within reach”.
My point is that, if the UK will be calling for the phase-out of unabated fossil fuels, how does he think going to COP when the Government have just announced the Offshore Petroleum Licensing Bill in the King’s Speech will sit when he tries to lecture other countries on moving away from fossil fuels?
The global stocktake report is clear that CO2 removals have a role, but are
“not a substitute for deep emissions reduction.”
It states:
“A rapid reduction of the world economy’s reliance on fossil fuels towards clean energy is central for reaching global net zero”.
That sounds to me like an endorsement of Labour’s clean energy mission for 2030. Unlike the Government’s short-term approach, this will increase our energy security, create good jobs and reduce energy bills—unlike, as the Secretary of State for Energy Security and Net Zero admitted the other day, the Offshore Petroleum Licensing Bill—and it will mean that the UK is leading the world in tackling the climate crisis.
The Minister mentioned nature-based solutions, and I was very pleased to hear that, but can he say a bit more about what global action the Government will be supporting with sustainable land management—I understand that that will be on the agenda at COP in a way that it has not been in the past—as well as terrestrial and ocean carbon sequestration? What discussions are there likely to be on the role of setting up credible international carbon markets? To give one example, we know that wetlands have huge potential, but we are still waiting to hear about the saltmarsh code—the former Secretary of State for Department for Environment, Food and Rural Affairs, the right hon. Member for Suffolk Coastal (Dr Coffey), may have something to say about that—and whether we can add saltmarshes to the greenhouse gas inventory. With the UK’s leading position as a world financial centre, we are ideally placed to be playing a role in creating these markets both on the nature side and on the carbon side.
It is estimated that tree loss last year was 2.1% higher than the maximum level. Will the Minister update us on that? He mentioned halting and reversing deforestation by 2030, and on the international side that is very much about stamping out links to deforestation in our supply chains. Could he give an update on how that is going, because as I understand it, it is not going well? Those issues were all highlighted in the global stocktake.
The built environment and transport are also on the COP agenda, and it would be helpful if the Minister could tell us a little more about the Government’s priorities for the talks. He mentioned the loss and damage fund, and the work of the transitional committee. It would be interesting to know more about what conversations he has had with climate-vulnerable countries, and the small island developing states in particular, because it is one thing to set up these financial arrangements, but in the past the smaller a country, the fewer resources it has, and it finds it very difficult to access the finance that is out there.
The Minister also mentioned the need to reform international financial institutions, which was welcome. I do not know whether he intends to reveal much about his actual agenda at COP before he goes—and it would be useful to know who else is going with him—but one question that has been asked of me is whether he will be attending the ministerial event on methane on 4 December. I think it is really important that we start addressing methane in connection both with the fossil fuel sector and with agriculture and waste. I hope that will be a priority for him.
To conclude, the UN has previously warned that the world is on course for a catastrophic 2.8°C of warming, in part because promises made at COP26 and COP27 have not been fulfilled. We are running out of last chances, but we can still avert the very worst of it, because we have the knowledge and tools to do so; it is just the willpower that is lacking at the moment.
The UK under Labour will, as called for in the global stocktake, transform our energy system with a plan to double onshore wind, treble solar, and quadruple offshore wind. Our warm homes plans will see 90 million cold and draughty homes brought up to standard, and Labour’s answer to the Inflation Reduction Act will restore Britain’s international leadership and create jobs across the country. Our proposals for a clean power alliance will lead ambitious countries and support the most vulnerable. A net zero target should not lead to complacency. There is so much more that the UK can and must do, not only to reduce emissions but to deliver energy security, reduce energy bills, and enable British industry to thrive over the long term. That is the vision we need to see at COP.
Fleur Anderson (Putney) (Lab)
As chair of the all-party parliamentary group for water, sanitation and hygiene, I declare an interest relevant to this debate and to the future of our globe. I am honoured to be part of this debate on such an important issue. No other important issue is raised so many times by young people when I visit schools in Putney, Southfields and Roehampton, and by the many members of the Putney Environment Commission, which I set up shortly after I was elected for local people interested in taking action on climate internationally, nationally and locally. Last night we had a meeting about what we can do to rewild local streets in London, and are looking forward to playing our part in action before and after the United Nations climate change conference, COP28. I will attend the conference, with a delegation of 10 MPs. It is important that parliamentarians are at the conference, meeting experts and activists who are all working towards ensuring a green future and the action on climate and nature that is so important for our long-term survival.
This year, 2023, will be the hottest year on record. Every day we witness the climate crisis unfold, from the effects of El Niño to the UK battered by storm after storm. Currently, between 3.3 billion and 3.6 billion people live in areas that are highly vulnerable to climate change. The world’s poorest people, including women and girls so often on the frontline, are paying the highest price. Under current estimates, we face a 40% shortfall in fresh water by 2030—not very far away. Water scarcity is escalating, which affects trade, economies, poverty reduction, food and nutrition, but also migration—an issue that is a subject of many debates in this House and will only be exacerbated by climate change. That is the tip of the iceberg. The disruption and damage that the climate crisis causes and will cause to all our lives cannot be overstated. As the Minister said, the world is badly off track to agreeing the Paris agreement targets and keeping 1.5° alive.
The right hon. Member for Suffolk Coastal (Dr Coffey) mentioned mangrove forests. I am also a fan, having been to visit mangrove forests in Bangladesh when I worked for Water Aid. I had the privilege of visiting a coastal community in Bangladesh, where the climate crisis is already extremely real. It used to be a freshwater area where people survived by fishing, but it has been salinated. I sat with a group of women in that rural area where they could not harvest or grow anything—there was nothing they could do. They wanted to move anywhere else, but were stuck in an area that seemed arid, like a desert from the future, where climate change was making such an impact on communities. I have said many times that climate change is not something that will happen to us; it is happening now. That was understood by the recent COPs, but needs to be understood even more. If we are too late, there will be no concrete action to effect change at the scale we need.
The main outcome needed at COP28 is obvious: an agreement for no new fossil fuels. Many organisations such as the International Energy Agency have said that to achieve global net zero emissions by the year 2050, there should be no new fossil fuel extraction projects beyond those already committed. How can the Government believe that approving more than 100 new North sea oil and gas projects is in any way in line with that, the legal frameworks or the views of the vast majority of voters? As other countries forge ahead with renewables, the UK is lagging behind. We need to keep it in the ground, it is very simple. Unless we and other countries get this right, there will not be the progress we need.
Climate justice is very important. Making sure that lower and middle-income countries can respond to climate impacts is essential. I hope that will be one of the biggest outcomes of COP28. In 2009, rich Governments agreed to provide $100 billion in climate finance annually to developing countries. But that goal, which originally was meant to be fulfilled by 2020, has still not been met. The £11.6 billion adaptation and mitigation finance that the UK pledged in 2019 is more loan-based than grant-based, and so only increases debt for the world’s most indebted countries.
Fleur Anderson
I am very glad to hear that. That needs to be the future, because grant-based instead of loan-based is vital. I am glad that there have been changes along the way, as a result of a lot of campaigning.
I highlight five areas of concern. First, on phasing out fossil fuels, the UK Government must play their part in ending the fossil fuel era by committing to cease direct and indirect funding of overseas fossil fuel projects, including those financed by British international investment, and instead committing to rapidly scaling up investment in renewable energy at home. Secondly, on the loss and damage fund, Governments at COP28 must commit to designing a loss and damage fund with adequate grant-based funding arrangements and specific plans to support countries facing economic and non-economic losses and damage. The polluters must pay. The fossil fuel industry is posting record profits, but it should be paying for the damage it is causing. The UK Government must commit to providing their fair share of funding through grant-based funding arrangements, and should have specific plans to support countries that face both economic and non-economic losses and damages.
The third concern is the need to fulfil climate finance pledges. The UK Government must meet their own climate finance commitments with additional, new funds, not by re-badging finance already given to British International Investment or the World Bank. The fourth concern is the need to reform the global food system in order to tackle the climate crisis. Action on food and action by farmers go hand-in-hand with tackling climate change. Governments at COP28 must to commit to transforming food systems through progress on the Sharm el-Sheikh joint work on agriculture. Alongside that, the UK Government must develop a cross-departmental strategy on providing support for more resilient food systems internationally that prioritises the needs of small-scale farmers. Small-scale farmers are really the climate activists on the frontline of climate change; they will be the best advocates, and will take the best actions on climate change, but they need funding and support to do so.
The fifth concern is the need to invest in climate-resilient water sanitation and hygiene projects, and the need for policies that enable people to respond to immediate threats and to adapt to the impacts of climate change where they are. People do not want to leave where they live because of climate change. They absolutely want to stay where they are, but with water for agriculture, to grow crops and to live in hygienic conditions.
The climate crisis is also a crisis of health around the world. As we saw with covid, we need to be able to wash our hands. That is such a basic need. Healthcare centres need adequate water and sanitation. The climate crisis threatens advances in sanitation, which threatens advances in poverty reduction. We must also ensure we keep clean water, wherever it is found.
Labour will take further, faster action on the environment. Labour knows that this is an exciting opportunity for economic growth, for a new industry, and for job creation. We will insulate 19 million homes within a decade under our warm homes plan, which will cut bills by up to £500 and create 4 million jobs. We will act fast to lead the world as a clean and cheap energy superpower by 2030. We will establish GB Energy, a new home-grown publicly owned champion of clean energy generation, so that we can be really world-leading in the action that we take at home. We will deliver thousands of high-quality jobs to every corner of this great country.
Labour believes that we need a just transition to a net zero economy. That cannot be left to the whims of the market, as was the de-industrialisation of the 1980s. Social justice must be at the centre of our response to the climate and environment emergency, and fairness must shape our approach to the green transition here at home. We have to actively shape that green transition, so that no one is left behind and people and places are protected throughout. Ecological breakdown is also a major problem; the UK is one of the most nature-depleted countries on earth. Labour will ensure that we not only halt but reverse the loss of biodiversity in the UK by 2030.
In conclusion, I look forward to attending COP28 this year. I went to many international conferences in my previous work before I was an MP. I always go with high hopes, and always leave with a high degree of disappointment, feeling that we could have gone further. I could almost write the conference press releases before I go, but I maintain a high degree of hope and optimism, as more and more people work together internationally to take on the crisis. All around the world, the green sprint has now begun; there is a surge in renewables, green technology and economic growth. We are making, at pace, some of the technological advances that are needed if we are to achieve the necessary outcomes for our climate, and they are becoming affordable. I hope we can come together to stave off the worst of the impacts to climate and nature, and together create a better and more prosperous world.
Graham Stuart
I congratulate all the Members who have spoken in the debate, which is an important one ahead of COP28. Further to the other interactions that I mentioned in my opening speech, we will be making a written ministerial statement on our priorities for COP before we go, and I will be responsible for the negotiations there.
It has been a very interesting debate, but it is a shame that the hon. Member for Bristol East (Kerry McCarthy) struggled so much to acknowledge the position that we are in. I have never heard it come out of her mouth that this country has cut its emissions more than any other major economy on this earth, which it has, or that it has the most ambitious plans of any economy on this earth, which it has. It would be good to have that as a baseline; there is plenty of room to pick up on issues and concerns about our performance while also acknowledging that the UK truly is a global leader. I am pleased to say we are not only leading domestically, but leading in the international space as well.
A couple of Members mentioned the Climate Change Committee in the context of the Prime Minister’s speech in September. It is worth noting that the Climate Change Committee’s analysis shows that there is “no material difference” in our progress in cutting emissions since its last report in June. We are tacking, as I would put it. However, our destination remains exactly the same. We are reassuring people in rural areas who were fearful that they could neither afford heat pumps nor be sure of their functionality, while increasing the subsidy for them by 50%, and working to build the system and drive the cost curve down, so that more and more homes can have them. That is right the way to ensure that we maintain public support for delivering net zero.
The same applies to zero-emission vehicles. Manufacturers have a ZEV mandate—an obligation to “green” their fleet up to 2030. That builds on our successful record to date; we are ahead of the Climate Change Committee’s and our own projections. We are maintaining that ZEV mandate. The Climate Change Committee spoke of “no material difference” in progress on particular changes, but the focus on grid and other aspects of the Prime Minister’s speech are all about turbocharging our efforts to deliver not only the nationally determined contribution in 2030, but net zero by 2050.
Methane was mentioned, and it is an important issue. The global methane pledge is a collective commitment intended to mobilise international action on methane. I am pleased to say that UK methane emissions between 1990 and 2021 dropped by 62%, one of the largest reductions in any OECD country, but I should also to highlight the fact that methane represents one of our biggest opportunities—the opportunity to ensure that that pledge is delivered not only domestically but internationally. It should also be noted that we are the only major economy to set a legally binding emissions reduction target, of 77%, for 2035 as part of carbon budget 6. We will see what happens at the 2025 COP in Brazil—10 years on from Paris—but the expectation is that new NDCs will come forward for 2035.
Finance was touched on in the debate. We remain one of the largest and most active donors in international climate finance, and we are making record commitments. With the aim of helping the world to adapt to the inevitable climate change impacts that we can already see, at COP27 the Prime Minister made a commitment to triple UK adaptation finance from £500 million in 2019 to £1.5 billion in 2025. The UK is also committed to maintaining a balance between mitigation and adaptation spending, and to providing at least £3 billion of UK climate finance for the purpose of protecting and restoring nature. We provide the majority of our climate finance in the form of much-needed grants rather than loans—which I think compares well with what is provided by some other donor countries—and we prioritise our contributions for the biggest challenges faced by the poorest and most vulnerable.
Alongside Malawi and Vanuatu, I co-chaired the climate and development ministerial ahead of the Abu Dhabi pre-COP meetings. It focused on the issue of access, which was absolutely right. We hear again and again from countries such as Samoa, whose Minister has said that the access process takes too long. At the CDM, we set out a “vision statement” expressing greater recognition of the need for national programme development to ease access to money as well as increasing the quantum. The hon. Lady is right: it is not enough to have this notional money if it does not actually flow to those who by definition, as she said, are the least able administratively to meet the requirements of some vast organisation. We need to make sure that the system fits the needs of those it serves, rather than the other way round.
Kerry McCarthy
I welcome what the Minister has said. I think that another problem for those countries is coming up with the evidence base to demonstrate the impact that climate change is having on them. There are currently some very good initiatives: for example, science students from the UK are going out to study marine areas. There is a great deal of interchange. Does the Minister think we could do more to facilitate that evidence-gathering, which could then be used as a basis for making an application to show the need for climate adaptation funding?
Graham Stuart
The hon. Lady is absolutely right. We need to make sure that technical assistance is there because, even as we try to get the green climate fund, the global environment facility, the World Bank and various others to improve their systems and ambitions to better meet the needs of the most vulnerable—shouting at both parties is like shoving a nine-pin plug and a three-pin plug together and wrapping them in gaffer tape—we also need to get a smoother system that helps them both to step up so that it genuinely flows, otherwise we will have endless frustration. Hearing Ministers from Vanuatu, Tuvalu, Samoa and elsewhere brings it alive, which is why these international meetings are useful. They remind us of the realities on the ground.
Since 2011, The UK’s climate finance has supported more than 100 million people to cope with the effects of climate change, improved the climate resilience of more than 32 million people and reduced or avoided more than 86 million tonnes of greenhouse gas emissions.
Nature has rightly been mentioned, and we want to see action and ambition from the presidency and all parties on transforming food systems and building policy, practice and investment for sustainable agriculture at scale. That includes endorsement of the leaders’ declaration on food, agriculture and climate action, supported by a further commitment to policy action, innovation and investment through the policy dialogue for sustainable agriculture and the agriculture breakthrough.
It is always difficult to keep our head around all these issues, as there is an alphabet soup of initiatives. I always want to check that they are not duplicative, but they are often complementary and working together.
Dominic Raab (Esher and Walton) (Con)
The Minister is making a very strong case for the disparate issues that the Government are pressing on climate change. If we are to reach net zero by 2050, there will also need to be a massive increase in the supply of critical minerals, whether for EV batteries or solar panels. When he is going around all these initiatives at international level, what discussions is he having with the likes of Brazil, Indonesia and other lynchpin partners about joining the Minerals Security Partnership? That is the primary multilateral vehicle for addressing critical minerals.
Graham Stuart
I thank my right hon. Friend for his question, which comes up frequently. When I was in Riyadh recently, I spoke about critical minerals with His Royal Highness, Prince Abdulaziz, the Energy Minister of Saudi Arabia, which is critical in this piece.
Whereas my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) went on to the mangroves, I went on to Indonesia by way of Vietnam, and these conversations came up all the time. My right hon. Friend the Member for Esher and Walton (Dominic Raab) is right that making sure we have resilient supply chains is fundamental to delivering this. We are doing more on supply chains, and we are doing it faster than ever before—even faster than the industrial revolution—and it is not only happening here. It is happening in other countries at the same time, as it needs to, so we have to make sure that our supply chains can meet that action. We can best do that through collaboration. It is not just about reaching agreement on things such as critical minerals; it takes many years to develop projects and bring them through to production, which creates even more urgency.
To promote improved and responsible governance, we are also looking for a commitment to support the forest and climate leaders partnership at the world climate action summit at the beginning of COP. We also want to see partnership on water resources at all levels. Donor countries and the private sector need to be involved, too.
Fleur Anderson
I thank the Minister for mentioning water. He is talking about the many issues he will cover when he goes to the various meetings, so does he agree that water, sanitation and hygiene are important issues to raise? Will he look out for them in the outcome documents, press releases and statements that come out after the conference?
Graham Stuart
I enjoyed the hon. Lady’s speech. Unsurprisingly, when I was in the middle east recently, water was right at the top of the agenda, reflecting its importance. I attended the Net Zero Council meeting in Manchester last Thursday, and it was my pleasure on the following day to go to the Severn Trent water treatment works in Stoke. By the end of next year, it is expected to be the world’s first carbon-neutral water treatment works, for which I pay tribute to Severn Trent. Again, it shows the importance of water, which is so often forgotten. Water is one of the workstreams of the Net Zero Council, which was established this year to bring together the Government and business to develop road maps for each sector of our economy.
I pay tribute to my right hon. Friend the Member for Suffolk Coastal for her driven, heartfelt efforts to make sure that nature’s contribution to the climate is fully recognised. The reason for holding the climate and development ministerial is that climate and development are two sides of the same coin. If there could be a three-sided coin—I am stretching my metaphors—the third side would be nature, because climate, development and nature go together.
We have talked about the importance of forests, and we have to make sure that the people who live in and around these carbon sinks—they are not just carbon sinks; they have many other qualities—have economic incentives that align with what we want. We have to make sure that they see development and opportunity for their families. It is only on that basis that we can even ask them to protect the nature that has been so denuded here. If we are to ask others to protect their nature for the general benefit, we need to make sure that it fits with development, as well as contributing to climate and nature.
I thank my right hon. Friend for Suffolk Coastal for all she has done. Her enthusiasm for mangroves is clearly shared across the House. They are a bit of a miracle. Making a difference often costs a lot of money, so we have to try to align incentives as much as possible. We need projects in which very small amounts of funding can make all the difference, so that mangroves stop shrinking and start expanding, and so that people return from the city to work with their families around the mangroves as part of a prosperous community. The mangroves need to be prosperous while developing as a carbon sink.
Deidre Brock
It was very interesting to hear about the importance of mangroves. I would also be interested to hear what the Minister has to say about peatlands. How will he be supporting them at COP?
Graham Stuart
The hon. Lady is absolutely right. The Congo has extraordinarily large and important peatlands, which have the same basic dynamics. Everything is different, and every country is different, which is why we have to pull different things together, but the fundamental principle is that we have to create a system in which the local people—from the governor of the province down to the indigenous villagers—are better off by maintaining and keeping these peatlands. We are keen to make sure that the role of peatlands is understood because, again, they are a critical enabler. Lost peatlands cannot easily be replaced, and they are part of the negative tipping point we could reach if we do not take urgent action.
Kerry McCarthy
I welcome the Minister’s enthusiasm and recognition that peatlands have an important role to play but, at the moment, they are emitting carbon because of how they are treated in this country, particularly when it comes to grouse moor management. Does he agree that we need to address those practices? Many peatlands are also sites of special scientific interest or are meant to be protected for nature in other ways.
Graham Stuart
I will not stumble into another Department’s area of responsibility. We work collectively across Government to share the burden of making sure we meet our net zero targets.
In wrapping up the debate, I assure hon. and right hon. Members of the Government’s commitment to delivering on net zero at home and internationally. Although there is evidence that a peak in global emissions is within sight this decade, we need emissions to peak by 2025 and to reduce by 43% by 2030. The sobering reality is that, this year, global emissions are likely to reach a new peak, as Members across the House have said. Keeping 1.5° within reach requires nothing less than a paradigm shift.
As I said in my opening remarks, the UK accounts for less than 1% of global emissions. Beyond what is directly within our grasp, the question before us is how we can help to create the will and the capability to move the remaining 99%, for which the major emitters, in particular, will be crucial.
I would like to close by offering some reflections on the UK’s role in helping to drive forward international progress in this critical decade. For hon. Members who are interested, we have set out in greater detail the UK’s vision and role in driving forward international action on climate and nature to 2030 in our 2030 strategic framework, which is available online. It sets out six key global challenges, and how we will use our international partnerships, strengths in finance, expertise and domestic leadership, trade and investment, and world-leading strengths in science and innovation to drive forward progress.
The first point to make is that though the gap looks unassailably large, we must not lose hope and fall into a council of doom. The reality is that efforts to date have succeeded in bending the emissions curve away from apocalyptic levels of warming of 3° or more. In some sectors, notably energy and electric cars, the transition is taking off. The IEA’s latest world energy outlook predicts a peak in fossil fuel use by 2025, due to what it describes as the “unstoppable” growth of low-carbon technologies. Solar and electric vehicles particularly stand out. Since only last year, the IEA has revised up its global solar 2050 capacity forecast by 69% and increased by 20% the number of electric vehicles it expects to be on the roads by 2030, such that it is expecting electric vehicles to comprise two thirds of new car sales by 2030.
The lesson we should draw here is clear: rapid, large-scale transformation is possible. The challenge is that we need to replicate this success across all sectors of the economy. There will be no single silver bullet to driving the transformational systemic change that we need on a global scale. We will deploy every important lever we have to accelerate action in this critical decade, building on the framework we put forward in the Glasgow pact and our 2030 strategic framework. That includes working through the United Nations framework convention on climate change, bilaterally and through other channels. Working with others who are like-minded, and others, we need to see countries upgrading their climate targets. There is no point in having a global stocktake eight years after the Paris agreement if it does not lead to a ratcheting up of the nationally determined contributions to match the requirements that we find from the science. In particular, we need the major emitters to do that. Countries representing more than 90% of global GDP are covered, as I have said, by some form of net zero target. Those countries now need to align their near-term targets with the commitments that they have made. We will harness our global diplomatic network, international development offer and partnerships to drive forward action.
We will also be taking action to realign financial flows in line with the Paris agreement and a nature-positive future. We will use our strengths as a global green finance centre and role as a shareholder of key financial institutions to reorientate finance flows and tap the power of markets to make progress towards unlocking the trillions required. We will accelerate transitions globally through targeted collaboration with others, focusing on the most important, highest-emitting sectors, through initiatives such as the breakthrough agenda, so that we can reach positive tipping points and avoid negative ones, and so that clean tech is affordable and accessible across all sectors of the global economy. We will also continue to push to accelerate the global energy transition, for example, through our long-standing leadership on phasing out coal in the Powering Past Coal Alliance. We will also champion the need to phase out unabated fossil fuels and at the same time transition the North sea into a clean energy powerhouse here at home.
Let me touch on that issue, as it was raised by others. We have new licences in the North sea for oil and gas because we continue to need oil and gas. We will need oil and gas in 2050 and beyond. Our production is falling, without new licences, at a rate of about 9%. With no new licences and no new investment, we will not see a greening of the basin. Worse, we will see the loss of the subsea and offshore engineering capability we need, as it will either leave this country or be made redundant, rather than being retained here.
The hon. Member for Edinburgh North and Leith (Deidre Brock) raised the issue of a just transition. There is a true transition to be made, and opposing new oil and gas licences in this country when we are a net importer of both, and when the emissions that will come from imports such as liquified natural gas would be higher, makes the Opposition parties friends of oil and gas workers, but just not those in this country. The approach of those parties will not make any difference to how much we consume, but it will make a difference to our emissions, and not in a good way, and it will lose the very engineering capability we need to deliver the transition, as well as a very material contribution to our ability to make that change, which is of course the £50 billion of taxes that we expect to get from the sector over the next five years. The Opposition parties are in entirely the wrong place. They have put optics ahead of doing the right thing, and it does not take a lot of reflection or analysis to come to the conclusion that we are doing the right thing.
We must globally focus on the positive tipping points we need to accelerate the global low-carbon transition. I thank hon. Members from across the House for their contributions to this debate, and I hope that my team and I will be able to count on the support of everyone in the House, despite all of the global challenges we face, to make the upcoming COP the success that the world needs it to be.
Question put and agreed to.
Resolved,
That this House has considered COP28.
Energy Infrastructure Planning Projects
Graham Stuart Excerpts(1 year ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Energy Security and Net Zero (Graham Stuart)
My noble Friend the Parliamentary Under-Secretary of State (Lord Callanan) has today made the following statement:
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 North Lincolnshire Green Energy Park project, located in Flixborough, Scunthorpe.
Under section 107(1)(b) 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 North Lincolnshire Green Energy Park project is 15 November 2023.
The Secretary of State has decided to set a new deadline of no later than 15 March 2024 for deciding this application to enable my Department to seek further information from interested parties and to ensure there is sufficient time to allow for consideration of that information.
The decision to set the new deadline for this application is without prejudice to any decision on whether to grant or refuse development consent.
[HCWS35]
Contracts for Difference Scheme
Graham Stuart Excerpts(1 year, 1 month ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Energy Security and Net Zero (Graham Stuart)
It is a pleasure to serve under your chairmanship, Dame Angela. I join others, and not least on this occasion the Scottish National spokesperson, the hon. Member for Coatbridge, Chryston and Bellshill (Steven Bonnar), in applauding his favourite Unionist—sitting behind him there—the ever-present, ever-active and ever-decent hon. Member for Strangford (Jim Shannon).
As the hon. Member for Strangford knows, and as he has mentioned, he and I have communicated extensively over the past year or so on the question of extending the GB contracts for difference scheme to Northern Ireland. He has asked questions in Parliament about this issue, most recently last month. I believe we know each other’s positions very well by now. Let me say at the outset that I admire his tenacity in continuing to raise this matter with me, which I know he does with the best interests of his constituents and the people of Northern Ireland in mind. However, I am afraid I have to say to him again that I do not believe that what he proposes is feasible—although I understand why he proposes it and why he hopes to find a solution—and nor would it lead to renewables or their associated benefits being delivered faster for Northern Ireland, as he hopes. I will explain why I believe that shortly.
First, though, to set the context, I would like to say a few words about the CfD scheme. The scheme was introduced in 2014 and is the Government’s main mechanism for supporting new low-carbon electricity generation projects in Great Britain. CfDs are awarded through competitive auctions that, from this year, are held annually. The lowest-priced bids are successful, which drives efficiency and cost reduction and is a low- cost way to secure clean electricity.
It is an interesting—but not necessarily surprising—fact that in every single year that the CfD has existed, industry has said that the prices we have suggested are too low, so this year is no different. I suppose it is also unsurprising that His Majesty’s Opposition should always speak up for the producer interest and be so indifferent, if not deaf, to the interests of the consumer, around whom we should build policy.
Winning projects are guaranteed a set price per MWh of electricity for 15 years, indexed to inflation. That provides income stabilisation, making projects that have high up-front costs but long lifetimes and low running costs attractive to investors and lenders. Importantly, the CfD also protects consumers when electricity prices are high, as it did last year. Understandably, this Conservative Government are extremely proud of the CfD scheme and its effectiveness, in not only securing clean generation but doing so at the lowest possible price to consumers—that is what has triggered the 70% reduction in costs for offshore wind. As I say, industry has always suggested that it wants to be paid more, and we have heard from His Majesty’s Opposition that they would be delighted to do so at the expense of ordinary consumers.
It was in the light of the challenge of setting the parameters of each CfD that we decided to move to an annual system. The hon. Member for Manchester, Withington (Jeff Smith)—he is not my favourite Unionist, but he is one of my favourite members of the shadow team—seems to have been deliberately innumerate. He will be aware that AR4 covered three years, and AR5 was the first annual auction. Like me, he will be able to divide by three the total generation that was in AR4, and to divine that in terms of annualised generation AR5 was the most successful round of the CfD that has ever existed. I would even gently chide my always loyal and fair colleague, my hon. Friend the Member for Waveney (Peter Aldous), for buying into the idea: at a time when other countries’ rounds have failed, we generated 3.7 GW. We supported geothermal and tidal and, I think, saw a near doubling of onshore wind.
That is not to say that I do not regret, and have not previously publicly regretted, the fact that in a highly turbulent geopolitical situation the window for offshore wind did not ultimately allow bids to come in from industry. However, that was one of the key reasons why we decided to move to an annualised system, so that we could quickly move forward. Of course, unlike a solar scheme, for example, these schemes are not things that are brought up quickly: they are developed over many years, with parameters informed by the behaviour of the industry.
We always gather the data each year from the industry—companies sign non-disclosure agreements with us and we commission external research—but the most important of all the data we use is behaviour in auctions, because we need that real-world data to inform the parameters we set. It is exactly that process—unchanged but better informed by behaviour in AR5—by which we will set AR6’s parameters, and I am confident that it will be successful.
Graham Stuart
I see that, having been chided, my hon. Friend is looking to intervene on me.
Peter Aldous
I was listening with interest to what my right hon. Friend was saying. To a degree, I hear what he says, but does he not agree that with offshore wind not being successful in AR5, the costs go up in future allocation rounds? It was ready to go, and there were economies of scale that it was ready to take full advantage of, but it was not able to go. The feedback that I am getting from industry is that these things cannot take place in a vacuum, ignoring what is going on throughout the world. Does my right hon. Friend not agree with me that it would have been much better if offshore wind had been successful in AR5?
Graham Stuart
Having been chided, my hon. Friend is of course—quite rightly, and characteristically—straining to justify his position, and I have a lot of sympathy with it. I have said that we would ideally have got the window in a way that better matched that reality. But there are reasons for having the annual auction. We always come up with a window that industry says is not enough. We have managed to bring down the costs by 70%. It is hard to overestimate the importance of this. This country, the CfD mechanism and, I have to say, this Government have transformed the economics of offshore wind—not just to the betterment of UK consumers, but to the benefit of the whole world. It is only because of what has happened here with this approach, which every year is in a state of tension with industry, that we have been able to show and reveal these prices. We are now able to export our expertise to the north-east of the United States, to the Gulf, to Taiwan—all over the world—as a result of this process.
I said that I wished we could have better attuned the window to the realities—they changed even after we set the prices in November. That was precisely why we decided on having an annual auction. To put it another way, if what someone offers is always accepted, they might want to consider whether they are overpaying. That is not to say that I in any way revel in the fact that we did not get offshore wind in that round, but I am glad that we had the foresight to move to an annual system and that we are able so swiftly to move on. It will just be the middle of next month when we set out the core parameters for the next round, which will happen next year.
Graham Stuart
I will make a little more progress, if I may.
The CfD scheme is a major UK success story. It has secured more than 30 GW of capacity, including 20 GW of offshore wind, since 2014. It has driven down the price of offshore wind by about 70% in that time, helping to grow the industry and its supply chain both in the UK and globally, although as the hon. Member for Manchester, Withington says, I have previously publicly expressed the desire to do more. We are coming forward with non-price factors as a way of encouraging more of the supply chain to be in the UK. But have no doubt: this has been a phenomenal success for us, for British jobs, for British consumers and for the world. We have the four largest offshore wind farms in the world, with more than 14 GW already in operation and a further 77 GW in the pipeline. It is a pleasure for me that of course the largest offshore wind farm in the whole world is Hornsea 2, named after a small town in my constituency. The UK is a world leader in floating offshore wind, with one of the largest amounts of operational capacity anywhere in the world, at 80 MW to date.
The hon. Member for Strangford says that the results of allocation round 5, which concluded in September, were disappointing because the total capacity secured was less. As I have said, I do not accept the characterisation of that round, because it has in fact realised the highest amount, on an annualised basis, of any of the rounds we have ever run. It resulted, in fact, in more projects—95—than we have ever seen successfully done, even though it covered just a one-year window. The round delivered a combined total of 3.7 GW, which is enough to power the equivalent of 2 million homes. As I have said, there was more than double the number of onshore wind projects. We also secured—I have touched on this already—another good result for solar, and four times as many tidal stream projects as AR4 did.
I pay tribute to the right hon. Member for Orkney and Shetland (Mr Carmichael) for his doughty support for the sector. I did not realise that his involvement had stretched to 20 years, but when I visited his constituency he was there to characteristically champion the industry. For the first time in our CfD, we had success with geothermal. This vital new renewable capacity was procured in a competitive auction set against, as I say, a backdrop of highly challenging macroeconomic conditions.
Jim Shannon
I thank the Minister for that clear achievement. I remind him that the key technology for Northern Ireland is onshore wind. There have been some advances, and I attended a meeting in Bangor, in the neighbouring constituency of North Down, where an offshore wind turbine was put forward as a possibility for the future. We cannot be part of that process unless the Minister’s Department can reconsider the fact that there is an absence of a functioning Northern Ireland Executive. Northern Ireland’s renewables projects are being uniquely disadvantaged. There is an opportunity to go forward—I am ever mindful of time, Dame Angela; please bear with me one second—and in 2013-2014 a decision was made. That was changed by the consultation process in 2019-2021. The recommendation was endorsed by 93% of the respondents. I gently ask the Minister that with that unique and changing position, there is a chance now and we should be looking at how we can better move forward together.
Graham Stuart
I thank the hon. Gentleman for that intervention. I will return to the issues relating to Northern Ireland, if I may. I entirely forgive the hon. Member for Coatbridge, Chryston and Bellshill, who is always a very genial Member, and anyone who has such a high opinion of the hon. Member for Strangford as he does is always welcome in this Chamber as far as I am concerned. This is not what the hon. Member for Coatbridge, Chryston and Bellshill does as a day job, so perhaps that explains the nature of his speech.
Let me dispense once again with the suggestion that consumers are £2 billion a year worse off because we did not secure any offshore wind in AR5. That figure is entirely wrong and misleading, because it does not take account of future wholesale energy prices. Projects that were unsuccessful in AR5, or chose not to bid, can participate in AR6 in 2024, which is just five months away. Having annual rounds means that there will be minimal delay to deployment at minimal or no additional cost to consumers.
The hon. Member for Coatbridge, Chryston and Bellshill highlighted the broader point that the UK, alone among major economies, has halved its emissions since 1990. It can be argued that it is alone among major economies on its path to reach net zero. It is important to note that if we are to stay on track to net zero, which is one of the reasons why the hon. Member for Strangford is so passionate, and he knows this, we need Wales, Northern Ireland and Scotland alongside England to make the appropriate changes. The hon. Member for Coatbridge, Chryston and Bellshill may or may not be aware, given that this is not his day job, that Scotland is behind the curve on performance. It is high on ambition, low on delivery relative to England, and he might want to bear that in mind and have slightly more—
Dame Angela Eagle (in the Chair)
The hon. Member for Coatbridge, Chryston and Bellshill came in at short notice to deal with an issue, and the Minister ought to be more sensitive to that in his remarks.
Graham Stuart
Whoever comes into this Chamber, I would always take your advice, Dame Angela, but of course the hon. Member represents his party, and when he make allegations against the Government that are unfounded, and when his own Government are failing to deliver on their ambitions and are, in fact, behind the trend for England, it is only right and proper in the spirit of honesty and transparency that that is properly exposed. I know the hon. Member for Coatbridge, Chryston and Bellshill, who himself is not normally a shy person in the Chamber or otherwise, is someone who can easily take it, so I am pleased about that.
I will take no lessons either from Labour, which had only 5.4 GW of wind power when it left government in 2010. The Government have more than five times that amount, at more than 28 GW of wind power, and the four largest operational offshore wind farms in the world. It may be difficult for some to hear, but we know that Labour’s record on renewables is truly dismal. When Labour was in power, as recently as 2010, renewables made up less than 7% of our electricity mix; in the first quarter of this year, we had reached nearly 48%. Lessons will not be taken from His Majesty’s Opposition, let alone the Scottish Government, on this front.
The absence of offshore and floating offshore wind from AR5 was, as I have said, regrettable. These are challenging times for the offshore wind sector, with increasing global demand putting pressure on supply chains at the same time as increasing costs and core materials, resulting in price uncertainty both here and abroad. As both the Secretary of State and I have repeated on many occasions, our ambition for 50 GW of offshore wind, including up to 5 GW of floating by 2030, remains. I indicate to Members to look at the 77 GW of pipeline that we can see ahead. We are listening to the sectors and, as I have said, the annual auctions mean that we can respond quickly and incorporate learnings into the next round. We will publish the core parameters, including the administrative strike prices and pot structure, for allocation round 6 in the middle of next month.
I will turn to the main focus of the debate for the hon. Member for Strangford: the GB CfD scheme being extended to Northern Ireland. When the CfD scheme was being developed around 10 years ago, it was originally intended that it should extend to Northern Ireland as well as GB. For various reasons, which I will not go into here, that did not happen. In December 2021, the Northern Ireland Executive published their energy strategy, the “Path to Net Zero Energy”, in which they set out the intention to implement a support scheme to bring forward investment in renewable electricity generation in Northern Ireland. The strategy indicated that the Northern Ireland Executive were, at that time, exploring with the UK Government the possibility of extending the GB CfD scheme to Northern Ireland, with a view to the inclusion of projects from Northern Ireland in the 2023 allocation round. If that was not possible, the strategy said that the Executive would seek to put in place an alternative support mechanism for investors.
In January 2022, the Northern Ireland Executive published the first of their two action plans, outlining progress towards implementing their net zero strategy. In it, the Executive said that they would consult on proposals for a renewable electricity support scheme for Northern Ireland. In February this year, the Executive made good on that commitment and published a consultation inviting views on design considerations for a renewable electricity support scheme for Northern Ireland. The consultation closed in April, and the Northern Ireland Executive are currently undertaking follow-up work on the scheme’s design, informed by the consultation responses they received.
I understand that officials in the Northern Ireland Department for the Economy aim to publish the design of the scheme this year, as committed to in its 2023 energy strategy action plan. The consultation clearly sets out the direction of travel: Northern Ireland wants to have its own bespoke support scheme for renewables. In June 2022, Northern Irish and UK Government Ministers agreed that the significant challenges of integrating Northern Ireland into the CfD scheme meant that Northern Ireland would be better off pursuing its own scheme. That objective had cross-party endorsement in the Northern Ireland Executive before they dissolved last year.
I believe that the hon. Member for Strangford and I agree that a bespoke support scheme for renewables is the preferred means of securing investment in renewables for Northern Ireland. However, he has argued that the Northern Ireland support scheme cannot be implemented while the Northern Ireland Executive are suspended. If I am putting words in his mouth that he does not agree with, he will intervene on me. He believes that allowing Northern Irish projects access to the GB CfD scheme is the best available option for delivering investment and faster deployment of renewables in Northern Ireland. He knows that I do not agree with him on this.
I do not believe that integrating Northern Ireland into the GB CfD scheme is viable. There are several significant challenges to integration, including systemic and technical barriers incorporating the characteristics of the single electricity market into the GB CfD model, as well as the reforms being considered in the GB review of electricity market arrangements. Furthermore, integration would require complex changes to the CfD payment mechanism, secondary legislation and industry codes, and would likely take several years to complete. Integration therefore would not lead to faster delivery of renewable energy in Northern Ireland, which I know the hon. Member for Strangford so fervently hopes for.
Jim Shannon
The Minister is summing up very well his opinion and my opinion. What we do not have is an agreement on how we take this forward. I know the Minister recognises that Northern Ireland is disadvantaged at the moment. What I was trying to seek was a method and a way forward. For that to happen, perhaps further discussions are needed with the Department of Enterprise, Trade and Investment to get its opinion. I feel that there is a consensus of opinion among those who wish to see that investment coming through. Perhaps what I am really asking is for the Minister to explore those possibilities as a potential way forward.
Graham Stuart
The hon. Gentleman always makes an extremely plausible and effective advocate for the ideas that he espouses. I—and the Government, I am sure—will remain open to discussions with those in Northern Ireland and with the hon. Gentleman to find solutions. We talked about some of the challenges of staying on the overall net zero pathway. Of the four Administrations, Northern Ireland is potentially the most off track, so there is a real need to find solutions and we always stand ready to work constructively to find the best way forward.
I continue to believe, however, that the development of a bespoke support scheme offers the best and quickest way for Northern Ireland to secure the investment in renewable electricity generation that it needs to achieve its net zero goals. I have not said it explicitly but, of course, energy is devolved, so we are looking to the institutions in Northern Ireland, on behalf of the people of Northern Ireland, to take this on. That is what we would profoundly like to see. I commend the work done by the hon. Gentleman and the Department for the Economy so far, and I encourage us all to support their efforts.
I will try—I hope reasonably briefly, with your permission, Dame Angela—to respond to a few of the other points that have been made. My hon. Friend the Member for Waveney chided me in return, to ensure that we do not rest on our laurels and that we respond appropriately to IRA and perhaps EU initiatives in the space. He talked about creating incentives, picking up on the supply chain development issues that many Members have touched on, and ensuring that seabed auctions are a good place to do that. As he knows, I set out the work that the Crown Estate is already doing to put conditions on at that stage, in addition to changes to the CfDs.
I take on board my hon. Friend’s points about the administrative strike price, and ensuring that we get it in the right place in order to balance keeping costs down for consumers with getting the generation that we want and need. We will set out the pot details in just a few weeks, so I will leave commenting on his appeal for a ringfenced pot for offshore wind. On his request for the pot to reflect the pipeline, that is the mechanism we use for the CfD. That is one of the reasons for setting out the core criteria in November and providing more details in March—precisely so that we can match the budget and the other elements that make up the CfD with a realistic assessment of the pipeline in place. His Majesty’s Treasury and the Chancellor will have heard my hon. Friend’s points on the issues that, sadly or otherwise, sit with the Treasury rather than my Department.
From the right hon. Member for Orkney and Shetland, I heard, as ever, his espousal and support for tidal, and he talked about setting a target for that. The Government remain open and we will continue to consider that, but we have not yet made a decision on whether it would be the right thing to do. It is about doing the right intervention at the right time, based on the stage of development of a particular technology. However, like him, I am proud of the fact that we have been able to see it come on, and see some of the developments in his constituency. The hope to see those operationalised and scaled up here in the UK, with a big and strong domestic supply chain, is one that gives real optimism for the future.
Mr Carmichael
I was minded to offer myself as a mediator between the Minister and the hon. Member for Waveney, but they seem to have found a better pitch since that stage in the debate.
On the point of the 1 gigabit target by 2035, does the Minister not take on board the fact that this is now the only technology that does not have such a target? It was sustainable to argue his position in AR4; it is more difficult in AR5, and with every round it will become more difficult still. I say to the Minister again that this is an opportunity to talk to the industry, and engage in a way that works to his advantage by restoring some of the damaged engagement credibility.
Graham Stuart
I can go no further than to say that the right hon. Gentleman, as so often, makes a very strong argument. We will continue to engage and will come forward with any decision on that in due course, if that was thought appropriate.
The Opposition spokesman, the hon. Member for Manchester, Withington, talked a little about being able to bring hope to oil and gas communities around the United Kingdom. That is ironic considering the ambition of any Labour Administration, were one to be elected, would be to strangle that industry. Even though, as of last year, we are the most decarbonised major economy on earth, we are still 77% dependent on oil and gas for our primary energy needs.
Over the coming years, due to the precipitous fall in production because of the maturity of the basin in oil and gas production from the North sea, and those expected falls in Norwegian production, our dependence on LNG imports and the like is expected to increase. Having seen the price spikes of the last two years and the risks and issues that arise from not having reliable and ideally domestic energy, the Opposition want to put at threat 200,000 jobs supported by the oil and gas industry —cheered on, bizarrely, by the fortunately ever less popular Scottish Nationalist Government—through wanting to stop any new licences. That is despite the fact that the only alternative realistically available is LNG, which the North Sea Transition Authority recently announced had embedded in it four times the production emissions of domestically produced gas. It is environmentally nonsensical and disastrous for 200,000 jobs. Just as a small addition, the industry is expected to bring in £50 billion of tax revenue over the next five years—goodbye to that as well.
It is absolutely crazy to have an Opposition spokesman saying he is here on the side of oil and gas communities—he absolutely is not. We have an integrated energy system encapsulated within a legal framework in the Climate Change Act 2008, which means we are making the transition. We are leading the world on making that transition, but we will not speed it or help it, but in fact weaken it, if we do not support new oil and gas licences in order to minimise the necessary inevitable reduction in oil and gas production in our waters. It is bad for jobs, for the environment, for the economy and for tax. On no front does it make any sense at all.
I have gone on long enough. I thank everyone for their contributions, not least the hon. Member for Strangford who led the debate. I am happy to keep engaging with him. I admire his tenacity. I recognise what drives him to want to find a solution in Northern Ireland and I entirely share that desire to see something happen. I am confident in our CfD system. It has been a world leader. AR5 was a success even though it did not deliver the way I would like it to have done in offshore wind. I am extremely confident about AR6, where we will again balance getting the generation we seek with ensuring that we look after the interests of consumers and the long-term interests of the United Kingdom.
Green Energy: Ports
Graham Stuart Excerpts(1 year, 1 month ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Energy Security and Net Zero (Graham Stuart)
It is a pleasure to serve under your chairmanship, Mrs Cummins. I begin by thanking and congratulating my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) on securing this important debate. We have heard high-class contributions from pretty much every person who has spoken so far. I will return, if I have time, to the trite and empty remarks—which were perhaps written by others—from the shadow Minister, the hon. Member for Manchester, Withington (Jeff Smith).
Just by way of context, it is worth highlighting the record, because track records should count for something. Less than 7% of our electricity came from renewables in 2010. That was the dire inheritance of this Government. It was the CfDs developed and delivered by this Government that transformed the economics of offshore wind and which led us from the Labour record of less than 7% to nearly half in the first quarter of this year. We have gone from a desperate legacy, where nearly 40% of our electricity came from coal—the filthiest of fossil fuels—as recently as 2012 to that being eliminated next year under this Conservative Government. It is this Conservative Government who have led the world. We have cut emissions more than any other major economy on earth and grown our economy significantly at the same time.
We heard about crowding in private investment, Great British Energy and writing cheques, which is the last thing we need. We have heard that from Labour before, yet every Labour Government in history have ended with unemployment higher than it was at the beginning, when they started. They all offer hope and cheques for all, promises of huge support and endless taxpayer subsidy, which will deliver nirvana. Nirvana has never been delivered by Labour—not a green one and not any other kind. I said that bit would come at the end, but I had to indulge myself and do it at the beginning.
As has been said by everyone here today, ports are so important to unlocking the green revolution. As colleague after colleague have highlighted, from the Humber to Wales to Scotland, the southern North sea and Northern Ireland, ports have an enormous contribution to make to economic regeneration. The fact that we are blessed with this phenomenal renewable energy opportunity in the UK—which this Government, uniquely and unlike the previous, are committed to unlocking—means that we can turn levelling up from an excellent concept into genuine delivery. The previously highly carbon-dependent areas of this country are the very areas that genuinely need that, and they are best set to benefit from it. Their ports are what will make that possible.
I recognise the importance of existing port activity in south Wales in securing the UK’s and indeed Europe’s energy supply. Last year, rather than being, as in the previous year, a net importer of a billion cubic metres of gas, we moved to being an exporter of 19 billion cubic metres of gas, making a significant contribution to storage in Europe and the energy security of an entire continent. A lot of that came through south Wales. Of course, it is the two LNG terminals in the constituency of my right hon. Friend the Member for Preseli Pembrokeshire, on the Milford Haven waterway, that helped to deliver that. Looking forward, the success of the Celtic freeport bid, covering Milford Haven and Port Talbot, demonstrates the opportunity to unlock investment and therefore growth for the south Wales area and delivering those high-paid, long-term jobs that so many colleagues on the Government side of the House not only talked about, but have a history of delivering.
The right port infrastructure is vital to deliver offshore wind and other renewables, as part of our transition to net zero. Big though the energy business, carbon capture and related things are, perhaps the biggest opportunity here is what all this will facilitate. When we took on the COP presidency, just 30% of global GDP had made net zero pledges. By the time the presidency was handed on by the UK to Egypt, that figure stood at more than 90%. The world is following. If we create among the world’s first genuine net zero industrial clusters, the inward investment that will come—into non-directly energy-related, yet still energy-dependent businesses, as every business is—could be quite phenomenal. That is why colleagues are right to share their excitement and why my right hon. Friend the Member for Preseli Pembrokeshire is right, again and again—alongside, as always, the hon. Member for Strangford (Jim Shannon)—to come here and enthuse about the importance of this and the opportunity it brings.
The Government’s policies, as set out in the British energy security strategy and endorsed in “Powering Up Britain” earlier this year, include bold new commitments, so that we can supercharge clean energy and accelerate renewable energy deployment. The Government set an ambition of 50 GW of offshore wind by 2030, up from just 14 GW today. The UK has the largest offshore wind sector in Europe and is home to all four of the largest offshore wind farms in the world. As part of that ambition, we are aiming for up to 5 GW of floating offshore wind. Colleagues have rightly highlighted the importance of ports to that, given the gargantuan scale of the products that will be required. Ports will play a vital part.
Colleagues have raised the issue of ensuring that we maximise the industrial heft and capability from this sector, which is why we are looking at reviewing the contracts for difference scheme and improving it with non-financial factors and other ways of encouraging industrial development.
The hon. Member for Aberavon (Stephen Kinnock) asked me what work we could do with the Crown Estate. The first thing is to work super closely with it, which we do. We are backed by colleagues from His Majesty’s Treasury, and it has been great to see how we can work together co-operatively to unlock this. As part of the tender for the offshore wind leasing round 5 in the Celtic sea, the Crown Estate will require floating wind developers to set out specific commitments to ports, as well as binding commitments on wider issues such as enhancing skills, addressing environmental impacts and delivering community benefits. I hope that that answers the hon. Gentleman’s reasonable question.
Douglas Chapman
During my summing up, I mentioned the ferry terminal from Rosyth to Europe. The Minister has brought in other issues such as skills, training and so on, but the other thing that we should think about is our ports for exports and ferry services. I noticed that he made a note that he would contact his colleagues at border control—that is a complete roadblock at the moment—to make sure that the ferry service can go ahead and be a success.
Graham Stuart
I certainly sympathise with the Scottish Government’s troubles and challenges with ferries. As the hon. Gentleman suggests, through my officials I will pass on that message to other Departments to facilitate that. Anything we can do to help, we will seek to do.
Graham Stuart
I will not.
The offshore renewable energy catapult has estimated that floating offshore wind could deliver more than £40 billion for our economy by 2050, creating about 30,000 jobs in the process. We are moving at pace to deliver those benefits, with more than 25 GW of floating wind projects with confirmed seabed exclusivity—the most in the world. The last thing we need to introduce into the excellent track record and system for bringing in private sector investment from all over the world—which we are proud of—is Labour’s plans for Great British Energy clunking into a carefully calibrated set of market mechanisms. That will have exactly the opposite effect of the objectives that the shadow Minister, the hon. Member for Manchester, Withington, set out.
Going further, the Crown Estate has announced its plans to hold a seabed leasing round in the Celtic sea, capable of supporting up to a further 4.5 GW, as we have heard. We also understand the importance to investors of certainty on a long-term leasing pipeline. If they can see the scale, we can get large-scale investment. We are acutely aware of that issue and are working closely with the Crown Estate and with other Government Departments. We must ensure that the multiple uses of our seas are thoroughly considered, so that we can then provide the visibility to unlock investments in ports, which will then unlock further investment.
The Government recognise the critical role that ports will play in achieving our green energy ambitions and the importance of securing investment in the infrastructure. They will also be a big enabler for offshore wind and a catalyst for wider supply chain development.
Stephen Kinnock
I am sure that the Minister is absolutely delighted that the voting interruption has given us some additional time. He was talking about floating offshore wind infrastructure. I do not know if he is coming to this, but I asked about grid capacity. There are real concerns that there will not be the grid capacity to facilitate all this, which is having an impact on developers’ thinking, too. What comments does he have on that?
Graham Stuart
I thank the hon. Gentleman for another excellent and well-made point. One of the biggest challenges facing my Department is ensuring that we have the facilitating infrastructure. No matter how interesting the generation is—nuclear, floating, fixed-bed, onshore, offshore—it does not really matter if the electrons cannot get where they need to. That is why we commissioned the Winser review on transmission, and I am really grateful to him for his work. We are going to be reporting back on that as soon as we can. We are working closely with National Grid and others to speed up the extraordinarily long times it takes to put that infrastructure in place. The hon. Member for Aberavon was right to say that if we want to realise our Celtic sea ambitions or our other ambitions around the UK, we need the facilitating infrastructure.
More locally, we are also focused on connections. We will shortly be coming out with a connections plan, because we have queues filled with projects that may never go ahead. We need to find ways to deal with that legally and properly. We now have a dedicated Minister for Nuclear and Networks, precisely because we recognise the challenge. The hon. Member for Aberavon is right to highlight that. We are working flat out on it and it is probably our top priority.
Stephen Crabb
On the important issue that the hon. Member for Aberavon (Stephen Kinnock) raised about the grid, is the Minister aware of any specific work by National Grid looking at the grid needs of ports, so that we know which UK ports are going to be energy ports? We can predict where those locations are going to be and we can see activity already happening. Is National Grid doing a piece of work to map the grid requirements of the next 20 to 30 years and put together plans for individual port locations?
Graham Stuart
One recommendation of the Winser report was that we pull together a much more coherent overall spatial plan. In previous years, things were done on a fairly linear basis, as we have seen in East Anglia. We have been taking steps through the holistic network design—not necessarily the best title—in phases simply to ensure that we have a more strategic and joined-up approach. We cannot do it project by project; we have to plan the whole thing out. We want to take it from a regional basis to a national basis. Further information will be set out by the Government.
We are working with our European neighbours. I spoke to the German ambassador only this morning about the fact that all of us around the North sea need to think and work together on a common basis. If we do so, we will be better able to realise the huge opportunities in the surrounding seas, do so at the lowest possible cost and maximise European energy security and the jobs and benefits that spring from doing that work.
For floating offshore wind specifically, the industry road map 2040, developed by the floating offshore wind taskforce, identified the need for up to 11 ports across the UK to support the roll-out of commercial-scale floating offshore wind. That is a significant opportunity for the years to come. To support the industry, the Government launched the £160 million floating offshore wind manufacturing investment scheme, which the shadow Minister, the hon. Member for Manchester, Withington, asked about in one of the much more reasonable comments in his speech. We are doing everything we can to bring the timing of that forward and do the assessment, and I hope that we will be able to announce the next stage—due diligence—before the end of this year, but that is tight.
In the coming years, the UK and other countries will exponentially increase their offshore wind deployment in the North sea, the Celtic sea and across a range of new markets. We signed a memorandum of understanding with countries surrounding the North sea in the week before Christmas last year about our rejoining the North Seas Energy Co-operation forum, and we will be having another ministerial next month to ensure that we are working closely together.
We will work with industry, through RenewableUK and the Offshore Wind Industry Council, to assess supply chain needs, which so many colleagues have rightly raised, and to identify the opportunities for the UK to lead and benefit from sustainable growth in the industry, including through building new export opportunities. As a former exports Minister, I recognise that by leaning in ahead as we have done—we have cut our emissions more than any other country on earth—and developing the technologies and solutions, we then have the long-term opportunity to export it. If we can capture more than enough of that energy to meet our own needs, we can export it directly. We could also convert it into green hydrogen, and we can export that. We can also bring in the carbon that will still necessarily be emitted by certain industries and our western European neighbours and put that into the 78 gigatonnes of capacity we have in the North sea. There is so much to be done here, and it can make such a difference: it can bring about the renaissance of industry in the north-east and north-west of England, in Scotland, in Wales and in Northern Ireland, as well as all around the country. It is a very exciting thing.
As I said, ports are not just important for offshore wind. They will also play a key role for carbon capture and storage, supporting the decarbonisation of emitters. Maritime shipping will play a key role, linking emissions captured from the dispersed sites with offshore CO2 storage sites. Import and export ports across the UK that can handle large volumes of CO2 will be required to facilitate the transport and storage of CO2 via ships. We heard about the plans for the Humber and elsewhere, indeed including on the south coast as mentioned in the brilliant, albeit short, speech by my hon. Friend the Member for Southampton, Itchen (Royston Smith).
On hydrogen, the Government recognise that port infrastructure will have a big role to play. We have a target of 10 GW of low-carbon production by 2030. As the hydrogen economy matures and the UK exploits export opportunities, we will need the right port infrastructure to accommodate large transport ships bringing in or taking away hydrogen, and we are determined to seize those opportunities for the UK economy. It is so important that we do not have an Administration who would do the exact opposite—and who have a track record of that.
Peter Aldous
Offshore wind champion Tim Pick has highlighted some of the obstacles that need to be overcome for the industry to realise its full potential. Some of that focuses on ports. Will the Minister provide a bit more detail on the Government’s response to his proposals and recommendations?
Graham Stuart
We are working with industry through the Offshore Wind Industry Council, of which I am a co-chair, to consider Tim Pick’s wide-ranging recommendations, including developing an industry growth plan. Again, this is to do with supporting the development of the UK supply chain and, as we do this massive deployment, trying to ensure that as much as possible of the industrial heft of that can be delivered through the UK and UK jobs. That work is ongoing, and we will keep going.
The hon. Member for Strangford will be aware that Northern Ireland has a target for 1 GW of offshore wind from 2030. SBM Offshore and Simply Blue are developing FLOW projects in Northern Ireland. Likewise, Simply Blue is developing the Erebus project in the Celtic sea.
I was asked about meetings. Notwithstanding any transport and logistical challenges, I would be delighted to come to Wales. I must pay tribute once again to my right hon. Friend the Member for Preseli Pembrokeshire, who is relentless, albeit always cheerful and well-considered, in promoting the need for understanding and engagement with his part of the world and the opportunities that offers for the whole of the UK in contributing to the global challenge on climate change and, most importantly, in delivering a more prosperous and better future for constituents in his part of the world. Thank you, Mrs Cummins, for chairing the debate.