Oral Answers to Questions

Greg Hands Excerpts

Wednesday 19th January 2022 Commons Chamber

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

3. What assessment he has made of the potential role of the North Sea oil and gas industry in the transition to net zero in line with objectives agreed at COP26.

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

Through the North Sea transition deal, the oil and gas industry has committed to early targets for offshore production emissions reductions, with 10% reductions by 2025, 25% by 2027 and 50% by 2030, setting out the path to achieve a net zero basin by 2050.

[Dame Andrea Leadsom]

I certainly will praise my right hon. and hon. Friends for their amazing work on renewable energy, and on the transition to net zero, but does my right hon. Friend agree that, although the net zero challenge is the greatest challenge of our generation, to keep energy bills down and to keep our energy security we must make best use of our oil and gas resources?

[Greg Hands]

My right hon. Friend makes a very strong case. Obviously the answer lies with renewables, but it also makes no sense for us to increase imports of volatile-price fossil fuels, which come to us with higher embedded emissions. That is why we have the North Sea transition deal—not to close down the industry, but to work with the sector to make the transition to the net zero future that we all signed up to.

[Olivia Blake (Sheffield, Hallam) (Lab)]

In a recent written question, No. 98384, the Government were asked if they would explain how individual policies in the net zero strategy, including on North sea oil and gas, would reduce emissions. In a reply dated 14 January 2022, the Minister said that he would publish the information when

“decisions on the design of the associated individual policy intervention are sufficiently advanced”.

How is it possible that the Government published a net zero strategy without an understanding of what the individual policies will mean, and how can we therefore believe their promise that we are on course to meet crucial targets for 2030 and 2035?

[Greg Hands]

Of course the Government are fully aware of these issues; there is no change in the Government’s position. We published the net zero strategy and we are seeing it come through. We are delivering on all of the aspects. My right hon. Friend the COP President just mentioned the climate change compatibility checkpoint. We are delivering on all of these things with haste.

[David Duguid (Banff and Buchan) (Con)]

I welcome my right hon. Friend’s response and the Government’s ongoing commitment to support the UK oil and gas sector in their role to drive forward the energy transition to net zero. Will my right hon. Friend join me in welcoming yesterday’s High Court ruling to throw out claims by certain environmental activists that UK Government support for the industry was unlawful?

[Greg Hands]

I thank my hon. Friend for his question. We welcome yesterday’s judgment. I, probably like he, wonder whether the SNP and the Scottish Green Government in Edinburgh would share our welcome. There will be an ongoing need for oil and gas as we reduce demand amid the transition to lower carbon energy, which, in the end, is the solution. I know from my visit to his constituency just last month how important renewables are for delivery in his constituency of Banff and Buchan.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

4. What assessment he has made of the potential role of carbon capture and sequestration in delivering the UK’s COP26 commitments to reduce emissions.

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

The UK can become a world leader in technology to capture and store harmful emissions away from the atmosphere. In the net zero strategy, the UK Government announced their ambition to capture and store 20 to 30 megatonnes of CO₂ per annum by 2030, with 10 megatonnes to be delivered by track-2 clusters.

[Alan Brown]

The Scottish carbon cluster site would address Scotland’s two biggest greenhouse gas emitters. It would unlock 30% of the UK’s carbon dioxide storage capability and combine hydrogen production, direct air capture and a shipping terminal to serve the rest of the UK in terms of carbon dioxide storage. Why then was the Scottish cluster relegated to reserve status and what representation has the right hon. Gentleman had from the “lightweight” Scottish Tory leader about this disgraceful decision?

[Greg Hands]

As ever, I thank the hon. Gentleman for his question. As he knows, Acorn is the first reserve, which means that it met the eligibility criteria and performed well in the evaluation criteria. As for the Scottish Conservatives, I speak to my hon. Friend the Member for Moray (Douglas Ross), the leader of the Scottish Conservatives, frequently. I also speak to the local MP, my hon. Friend the Member for Banff and Buchan (David Duguid), and others. The Scottish cluster, Acorn, has a good future. I have also recently met with Storegga, INEOS and Shell to discuss specific aspects in relation to the cluster, which moves ahead.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

5. What progress he made at COP26 on supporting the transition to zero emission vehicles.

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[Dame Angela Eagle (Wallasey) (Lab)]

T2. Surely a just transition means not leaving millions to cope with soaring energy prices as inflation hits its highest level for 30 years. Why will the Government not heed Labour’s suggestion to protect them by introducing a one-off windfall tax on North sea oil and gas producers who have profited from the surging prices?

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

I am surprised that the hon. Member is pursuing that line of inquiry. Labour’s motion here in this Chamber last Tuesday totally unravelled and was rejected comprehensively. The Government are taking action—we are supporting vulnerable households through winter fuel payments, cold weather payments, the household support fund and so on—but the Labour proposal unravelled tragically last week, Mr Speaker, as you saw.

[Chris Grayling (Epsom and Ewell) (Con)]

T4. My right hon. Friend is well aware of my concern about deforestation in the Amazon. As he deals with the Brazilian Government over the coming months, will he put pressure on them to make sure that they not only keep their commitments made at COP26, but stop the illegal deforestation that is taking place now?

--- Later in debate ---

[Jacob Young (Redcar) (Con)]

The Minister will know that Teesside is the hydrogen capital of the UK, where we already produce more than 50% of our commercially viable hydrogen, so will he consider throwing his weight behind Redcar and Cleveland’s bid to become home to the UK’s first hydrogen village by 2025?

[Greg Hands]

I thank my hon. Friend for that question. He knows that we are co-operating very closely internationally and domestically on hydrogen. On Redcar’s bid, he is a passionate advocate for all things related to Redcar, and his message has been heard loud and clear by the Government.