Net Zero Strategy: High Court Ruling

Debate between Greg Hands and Kerry McCarthy

Thursday 21st July 2022 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy to provide a response to the High Court ruling that the net zero strategy is unlawful.

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

Over the past three decades, the UK has driven down emissions by more than 45%— the fastest reduction of any G7 country. We have one of the most ambitious carbon-reduction plans in the world, pledging to reduce emissions by at least 68% by 2030 and by 77% by 2035, compared with 1990 levels, before of course reaching net zero by 2050. Our track record speaks for itself: the UK overachieved against the first carbon budget and exceeded the second by nearly 14%. The latest projections show that we are on track to meet the third carbon budget as well.

In its judgment on the judicial review of the net zero strategy, the High Court found that Government had not complied with Climate Change Act 2008 in relation to some specific procedural issues and the level of analysis published as part of the 164-page net zero strategy. I stress that the judge has made no criticism about the substance of our plans to meet net zero, which are well on track. Indeed, even the claimants in the case described the net zero strategy as “laudable”. The independent Climate Change Committee described the net zero strategy as

“an ambitious and comprehensive strategy that marks a significant step forward for UK climate policy”

and as

“the world’s most comprehensive plan to reach Net Zero”.

We are now considering the implications of the Court judgment and deciding whether to appeal. As we do this, our focus will remain resolutely on supporting people in the face of globally high energy prices and on boosting our energy security. Our recent British energy security strategy—launched by the Prime Minister—which puts Great Britain at the leading edge of the global energy revolution, will deliver a more independent, more secure energy system and support consumers to manage their energy bills.

[Kerry McCarthy]

Let us be clear: we are here because the High Court has ruled that the Government’s net zero strategy is unlawful and is in breach of the Climate Change Act. The Climate Change Committee, which the Minister cites, said only a few weeks ago that the Government

“will not deliver Net Zero”

on current projections. Not only have the Government failed to set out the detail of how they will reach net zero, but Ministers cannot even do basic maths, because, as the High Court made clear, adding up the emissions cuts in the strategy will leave a 5% shortfall. How embarrassing that his Department must be dragged to court to hear what we have known for months—that the numbers simply do not stack up.

This week has made it clear why we have to act now. The country has suffered through a sweltering heatwave causing fires across the country and infrastructure failure. But at a crucial time, this Government are directionless and collapsing in on themselves. The High Court has ordered that a revised strategy must be presented by next March. That will be under a new Prime Minister. Yet the current candidates have made their views on net zero clear. One has spent two years in the Treasury blocking climate action that might have saved the Government this embarrassment; the other wants to scrap green levies.

So forgive me if I have little faith that the situation is set to improve—but it has to. We need to insulate millions of homes to slash emissions and bring down bills. We need a green sprint for renewable energy to wean ourselves off expensive fossil fuels. Labour will deliver that, and more, with our £28 billion climate investment pledge. That is what the public want and what the planet needs, so will the Government get their act together, meet their legal obligations, and finally deliver the green future that we need?

[Greg Hands]

I thank the hon. Lady for that set of questions. Let me first stress that the net zero strategy—I have it here—is a very comprehensive document with pages and pages of annexes as well. It would be well worth all Members re-reading it today. It is a comprehensive plan for meeting our climate targets, outlining measures to move to a green and sustainable future. The Court found that we had not complied with the Climate Change Act only in relation to specific procedural issues and the level of analysis published as part of the strategy. The judge agreed that it did not need to contain measures with quantifiable effects to enable the full 100% emissions reductions required. [Interruption.] We are talking here about a strategy for the next 28 years. Inevitably, there will be some evolution in the strategy, and inevitably there will need to be some flexibility in a strategy with a 28-year timeframe.

The hon. Lady asked about the Conservative leadership candidates. In all the hustings that I have been to—and I think I have been to almost all of them—all the candidates made strong commitments to meet net zero, including at the hustings chaired by her near neighbour, my right hon. Friend the Member for Kingswood (Chris Skidmore).

When it comes to net zero and climate change, I am not going to take any lessons from Labour, which is the party that said in 1997:

“We see no economic case for…new nuclear power stations.”

That has set us back decades. There is a reason why 11 of our 12 power stations are coming off-stream before the end of this decade: the decisions, or non-decisions, by the last Labour Government, who increased our dependence on gas from 32% to 46% of our electricity generation—which could only have cheered Vladimir Putin. On energy efficiency, we inherited a position where 14% of properties in this country were rated A to C. We have increased that to 46%. When we took office, renewables made up only 7% of our electricity generation mix. That is now at 43%. So I am going to take no lessons from Labour. It is this Government who are taking the tough decisions, including on Sizewell yesterday, and moving forward on renewable energy and nuclear—not any of the Opposition parties.

North Sea Oil and Gas

Debate between Greg Hands and Kerry McCarthy

Wednesday 9th February 2022 Commons Chamber

[Greg Hands]

My right hon. Friend makes a strong point. Of course the line from the Treasury—speaking as a former Treasury Minister—is that all taxes are always under review, but I repeat the words of the Chancellor from Thursday, that a windfall tax is “superficially appealing” but probably counterproductive. He reminded us that oil and gas companies pay corporation at twice the rate of non-oil and gas companies, and that the sector has already paid some £33.7 billion in taxes since the year 2010.

[Kerry McCarthy (Bristol East) (Lab)]

In November, the COP President was reduced to tears after ambitions to phase out fossil fuels were voted down at the last minute. Three months later, the UK Government are tanking efforts to keep us to 1.5^º by approving these six new oilfields. It is not just about looking at the energy supply and demand in this country; it is about setting an example. If we are to approve this fossil fuel exploration, what is to stop other countries from following suit?

[Greg Hands]

I very much welcome the hon. Lady’s question and the chance to put on the record the brilliant job done by the COP President. At the start of the year running up to the conference, only 30% of global GDP was covered by a net zero commitment. That rose to 90% after the conference, which sets an example. I am the co-chair of the Powering Past Coal Alliance, an international group calling for the phasing out of coal—something I am proud of.

Climate Change Committee Progress Report 2021

Debate between Greg Hands and Kerry McCarthy

Thursday 21st October 2021 Westminster Hall

[Greg Hands]

The hon. Gentleman makes a very good point. I will come on to the point about installation. He also makes a very good point about insulation and the importance of well insulated homes, which I think nobody denies. But let me just return to the points that he made in his speech.

Local government and local delivery are incredibly important. It is very important that local leadership is seen on climate change. I see it from Mayors such as Andy Street and Ben Houchen and also some Labour Mayors. I think Andy Burnham, the hon. Gentleman’s local Mayor, has been quite good in this space as well. It is important that we all see climate change and taking action on climate change as a cross-party issue involving all the tiers of government and all the available parts of government across the whole United Kingdom.

On energy usage, the hon. Member for Rochdale asked what more the Government can do to address consumption and reduce emissions. The heat and buildings strategy addresses consumption in homes. For example, we provide increased support for low-income households through the home upgrade grant. We are committed to upgrading fuel-poor homes to energy performance certificate band C by 2030 where reasonably practicable. And there is our social housing decarbonisation fund, with £800 million provided. I think that the hon. Gentleman also asked about hydrogen investment. The net zero strategy confirms the industrial decarbonisation and hydrogen revenue support scheme, supporting blue and green H₂ production. It could lead to 1.5 GW of new capacity.

The hon. Member for Bristol East (Kerry McCarthy) asked about quite a number of things, some of which are familiar themes. I just remind her that Cambo has already been licensed as a field, in 2001 and 2004.

I could fill the remaining time on airport expansion. Mrs Murray, you will remember that I resigned from the Government in 2018 over airport expansion at Heathrow. I note that, since I resigned, that airport expansion has not happened and I am not seeing any sign of it happening anytime soon.

The hon. Lady asked about trade agreements.

[Kerry McCarthy]

Would the Minister like to advise us as to whether, if proposals to expand Heathrow are resurrected—obviously, over the last couple of years there has been the pandemic, which has hit aviation—he will resign again?

[Greg Hands]

Again, that is a temptation down a particular road, but let me say this. The Government are absolutely clear that all further airport expansions must be consistent with our climate change obligations. Government policy is absolutely clear on that.

Net Zero Strategy and Heat and Buildings Strategy

Debate between Greg Hands and Kerry McCarthy

Tuesday 19th October 2021 Commons Chamber

[Greg Hands]

I refer the hon. Gentleman to the annex of the net zero strategy, which sets out in some detail our response to Lord Deben’s annual report earlier this year. I think he will find in the annex a lot of the good mentions of local government for which he has been looking.

[Kerry McCarthy (Bristol East) (Lab)]

The zero-emissions vehicle mandate is welcome, although, as the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said, the Government do need to get a move on. They have been cutting plug-in grants year on year, and there are now reports that the Chancellor wants to axe them all together. What in this strategy will actually help to make the purchase of electric vehicles more affordable for the average consumer?

[Greg Hands]

Nobody should doubt the Government’s commitment to getting a switch to electric vehicles. I certainly hope that the shadow Secretary of State has been taking an interest in that in recent times—

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Tuesday 21st September 2021 Commons Chamber

[Greg Hands]

I thank my hon. Friend for his welcome. As he has pointed out, the Prime Minister’s 10-point plan for a green industrial revolution sets an ambition to grow the market to 600,000 heat pump installations per annum by 2028. The heat and building strategy, due soon, will set out the policies that will deliver this target in a fair and affordable way, including for his High Peak constituency.

[Kerry McCarthy (Bristol East) (Lab)]

Experts have concluded that to reach net zero by 2050, there should be no new oil and gas fields approved for development and no new coalmines or mine extensions from the end of this year. Does the Minister agree with that assessment by the experts, and if so, does he agree that the Cumbrian coalmine and the Cambo oilfield surely cannot go ahead?

[Greg Hands]

I thank the hon. Lady for her question. Of course, we look carefully at what the Climate Change Committee has recommended at all times, and we are in the process of meeting last year’s recommendations very well. I can tell her that the climate checkpoint will apply to all future licensing rounds. Cambo is of course already licensed, and projects that are already licensed are already accounted for in our projection of emissions from future oil and gas production. So those emissions are already accounted for in our plans.

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 15th July 2021 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

What recent discussions she has had with UK trade partners on inserting clauses on environmental standards into future trade deals.

[The Minister for Trade Policy (Greg Hands)]

We are seeking environmental provisions with all partners with which we are currently negotiating to ensure that future trade is sustainable and upholds the UK’s high environmental standards. The precise deals of any free trade agreement are a matter for formal negotiations.

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[Mr Speaker]

I call Kerry McCarthy for the final question.

[Kerry McCarthy]

Thank you for sneaking me in, Mr Speaker.

Today, we heard the devastating news that the Amazon is now a carbon source rather than a carbon sink. With deforestation at a 12-year high, it is emitting more CO₂ than it absorbs. Is the Minister following the progress of the land-grabbing legislation, which has been dubbed the destruction package, that is going through the Brazilian Parliament at the moment? What discussions has he had with his counterparts, and what impact would that have on trade negotiations with Brazil? May I urge him to rule them out if this package goes through?

[Greg Hands]

We are not currently negotiating a trade agreement with Brazil. We follow the position in Brazil very closely, and we engage strongly on a bilateral basis on all of these issues with the Brazilian Government. We have very good diplomatic representation not just in Brasilia but across different parts of Brazil, to make sure that the UK position and the importance of deforestation for the UK, particularly in this COP26 year, is upheld.

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[Kerry McCarthy (Bristol East) (Lab)]

In the national food strategy, which was published today, I note that despite the manifesto pledge in 2019, the Government have still not said what standards they propose to protect or what mechanism they will use to defend those standards in trade negotiations. Is the Minister prepared to do that now?

[Greg Hands]

We have been absolutely categorical in our commitment on food standards and food safety standards. There will be no compromise on UK standards in relation to any trade agreement. That has been the case—[Interruption.] Our commitment is absolute. If the hon. Member were to take a look at all the trade agreements we have done with 67 countries—if she looked at the Australia trade deal agreement in principle and the Japan deal—she would see no diminution in our food safety and animal welfare standards so far.

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 19th November 2020 Commons Chamber

[Greg Hands]

We follow RCEP quite closely, but we are looking forward to making our application to join the comprehensive and progressive agreement for trans-Pacific partnership, or TPP-11, trading group in the new year. This is an excellent trading group. Its 11 countries are a mix of like-minded western trading nations such as Japan, Australia, New Zealand and Canada, as well as more developing nations such as Vietnam and Peru. There are great opportunities for all of us, including my hon. Friend’s Morley and Outwood businesses.

[Kerry McCarthy (Bristol East) (Lab) [V]]

There are reports that the Government plan to remove anti-dumping duties on imported bicycles at the end of transition, leading to a flood of cheap imports from China, which would be devastating for UK bike manufacturers. Can the Minister tell me what proportion of the domestic market consists of bikes made in the UK and confirm that if it is more than 1%, anti-dumping duties should remain?

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 18th June 2020 Commons Chamber

[Greg Hands]

My hon. Friend has done superb work as the Prime Minister’s special envoy on freedom of religion and belief. He references the Truro report, which was set up by the previous Foreign Secretary. Its overall approach is very much endorsed by this Government. He also draws reference to his time as the Prime Minister’s trade envoy to Pakistan, when I worked with him very closely. The GSP plus scheme will be rolled over into a UK scheme. Obviously, that will include key human rights obligations, including freedom of religion and expression.

[Kerry McCarthy (Bristol East) (Lab)]

What progress she has made on negotiations for a free trade agreement with the US.

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[Greg Hands]

Let us be absolutely clear: there has been no relaxation or watering down of the UK’s complete commitment to human rights. That is valid right across the Government, including in the Department for International Trade and in trade deals. The hon. Lady referred to the continuity EU agreements. Part of the issue there is that the Cotonou agreement itself is expiring. What we have sought to do is to ensure that the practical outcome of that element of the existing EU trade deal is maintained in the rolled-over deal. That applies to such things as the Andean agreement and other agreements that we have with developing-world countries, ensuring that human rights remain at the core of the agenda and that there is no watering down of the human rights commitments in existing trade agreements.

[Kerry McCarthy (Bristol East) (Lab)]

If she will make a statement on her departmental responsibilities.

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 17th May 2018 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

Since the draft withdrawal agreement confirms that international agreements continue to apply to the UK during the implementation period, common rules of origin will remain until the end of 2020.  We are keen, of course, to avoid disruption to supply chains, so we are working to secure continuity after this.

[Kerry McCarthy]

I am sure the Minister has met motor manufacturers who have warned that they will simply not be able to meet the 60% local content requirement under rules of origin if EU components cannot be included. At present, the UK content is between about 40% and 44%. How will the Minister address that?

[Greg Hands]

I think the hon. Lady is referring to the EU’s current set of more than 40 agreements with more than 70 counterparts. That is a matter for active discussions. We are obviously trying to secure the best possible deal for UK motor manufacturers, not only those involved with the finished product but those who provide the components, as part of our talks with third parties.

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 12th October 2017 Commons Chamber

[Greg Hands]

The Department for International Trade is devoting significant efforts to transitioning the EU’s existing FTAs into a UK FTA. We are doing this in consultation with the European Union. In the majority of countries—certainly all those that we have spoken to so far—third parties are in agreement with that. Just two weeks ago I was in Peru, my right hon. Friend the Secretary of State was in Colombia, and my hon. Friend the Under-Secretary of State met the Ecuadorian Trade Minister to talk about the transition of the EU/Andean FTA—a perfect example in this space.

[Kerry McCarthy (Bristol East) (Lab)]

6. What recent discussions he has had with the World Trade Organisation and his US counterpart on the division of WTO tariff rate quotas between the UK and the EU after the UK leaves the EU.

Oral Answers to Questions

Debate between Greg Hands and Kerry McCarthy

Thursday 6th July 2017 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

T7. I thank the Ministers for the written answers they have given me this week on the EU-Japan free trade agreement. They were at pains to reassure me that existing animal welfare and environmental standards would be maintained, but can they give me further reassurance that we will use this as an opportunity to address with Japan the illegal timber trade and commercial whaling?

[Greg Hands]

We engage on these issues on an ongoing basis with Japan. I know this is very important to the hon. Lady, so may I reassure her that the Government share a lot of her concerns on protecting animal welfare in free trade agreements? The UK has one of the best scores on the world animal protection index, where we are in the top four. It is important that we maintain animal welfare standards in this country in future agreements, and I have every confidence that we will.