Making Britain a Clean Energy Superpower

Jim Shannon Excerpts

Thursday 9th November 2023 Commons Chamber

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. Throughout history, economies have succeeded when they can source enough cheap and secure energy. Now, as we face a new challenge—the global challenge of climate change—it is important that we source enough clean energy too. We have been a coal superpower and an oil superpower; if the Opposition are looking for a clean energy superpower, they should look no further. Britain today is a clean energy superpower, and our plans will enable us to go much further.

While the Labour party never ceases to talk this country down, I am proud that we are leading the world in this great energy challenge. In the first quarter of this year, 48% of our power came from renewables, up from just 7% in 2010. We are a world leader in offshore wind. We have increased our country’s renewable energy capacity fivefold since 2010—more than any other comparable Government. We are building new nuclear for the first time since Margaret Thatcher’s Government, and this brilliant innovation nation is leading the world in new technologies like small modular nuclear reactors and fusion energy. As recently as 2012, coal was generating 40% of UK electricity, but we are now on course to be one of the first major economies with power that is coal-free.

This work led by the Conservatives is dramatically reducing our greenhouse gas emissions. We have had the fastest reduction in emissions of any major economy, down almost 50% since 1990. Meanwhile France is down 23%, the US has not changed at all, and China has increased its emissions by 300%. And we are not stopping here. Which is the major economy with the most ambitious target to cut emissions by 2030? Is it the US, at 40%? Is it the EU, at 55%? No, it is the United Kingdom at 68%.

[Jim Shannon (Strangford) (DUP)]

I am very conscious that the net zero targets are set for the United Kingdom, but unfortunately Northern Ireland cannot participate nor can we add our physical support to achieving those targets, because the contracts for difference scheme is not in place in Northern Ireland. I have spoken to our Ministers about this. Will the Secretary of State also look at this on behalf of all the constituents in Northern Ireland who want to contribute to achieving the net zero targets and be part of the contracts for difference scheme?

[Claire Coutinho]

I will happily look at that.

The UK was the first major economy to set a legally binding date for net zero. Our ambitions for 2030 are ahead of those of our peers and we have the plans in place to meet them. In fact, we have met every single one of our stretching targets to reduce carbon emissions, thanks in no small part to our clean energy success. Labour seems to have conveniently forgotten about the shameful state of our renewables sector when it left office. Just 7% of our power came from renewables in 2010; today, thanks to the actions of the Conservatives, that figure stands at near 50%. Never forget that it was the right hon. Member for Doncaster North (Edward Miliband) who described the idea of the UK getting to 40% renewables as “pie in the sky”.

--- Later in debate ---

[Edward Miliband]

I am afraid that all the hon. Gentleman is pointing out is the Government’s failure to go fast enough in driving towards renewables. Of course we need a mix of energy, but this is the question for the House and the country: do we decide that drilling every last drop, which is the Government’s position and which would be a climate disaster, is the right strategy? Or do we decide that the right way to go is home-grown clean power? We say it is home-grown clean power.

The problem is that all the nonsense the Government are coming out with really matters, and it worries me. By the way, I think it will be an electoral disaster for them, and we already see that because the intelligent Conservatives are asking, “Why are we doing all this?” Members on both sides of the House did this together. We built a consensus on climate over the past 20 years, to work across parties and not to weaponise it. People look at America and say. “Well, America has a culture war on climate. Thank goodness we do not have that in Britain.” That was the case until this Prime Minister—not the previous Prime Minister, or the Prime Minister before her—decided to do it.

On the day of the Prime Minister’s climate U-turns, the Home Secretary had a licence to go out and say that the danger of climate action is that it will “bankrupt” the country. The Home Secretary freelances on most issues, but on this issue she is actually speaking for the Prime Minister, because it is echoed by other Cabinet Ministers. This is a massive retreat from the position of both parties for two decades, that leadership on climate is not somehow a danger to our economy but is the way to seize and build our economic future. They have opened the door to the old, discredited idea that we can choose either our economy or the climate, but not both.

It is not just a retreat from the consensus; it is a retreat from reality. The reality is that there is a global race, with countries seeking to go further and faster to create the jobs of the future. No wonder business is horrified. Just last Monday, Amanda Blanc, the chief executive of Aviva, warned about the Government’s commitment to unlimited oil and gas drilling. She said that our climate goals as a country are “under threat”, which

“puts at clear risk the jobs, growth and the additional investment the UK requires”.

The Government try to claim that this is somehow consistent with climate leadership. I mean, come off it!

Seven hundred British climate scientists oppose the changes, and so do the International Energy Agency and the Climate Change Committee, which my hon. Friend the Member for Warrington North (Charlotte Nichols) quoted:

“Expansion of fossil fuel production is not in line with Net Zero.”

The Government’s own net zero tsar, the right hon. Member for Kingswood (Chris Skidmore), who is in his place, also opposes them. They appointed him to advise them on climate and energy. They said how brilliant he is, and I agree—sorry to ruin his career even further. He is a very intelligent guy. [Interruption.] He is denying it. He has great ideas, and what did he say?

“There is no such thing as a new net zero oilfield.”

Those are not my words, and they are not the words of eco-zealots or Just Stop Oil; they are the words of the right hon. Gentleman, who sits on the Government Benches. He signed the net zero target into law, for goodness’ sake. We have to grow up.

In contrast to the right hon. Gentleman, we have the Minister for Energy Security and Net Zero, whom I like —[Interruption.] I do. We have worked together on climate, but I will now say something not so nice about him. This is what he said yesterday:

“There is nothing fundamentally wrong with oil and gas, it’s emissions from oil and gas that are the problem”.

For goodness’ sake—what does that even mean? Here we are: the people who know what they are talking about do not speak for the Conservative party, and the people who speak for the Conservative party do not know what they are talking about.

I can tell the Secretary of State and her colleagues that this strategy is doomed to fail. The British people do not want a Government who say, “We are going to weaponise the climate crisis.” They do not want a Government who say, “We are desperate. We are behind in the polls”—I remember that feeling—“and we therefore have to turn this into a wedge issue.” They want a Government who will cut bills and tackle the climate crisis. All the Government are doing day after day with all this nonsense is proving that they are not the answer.

What would a Labour King’s Speech have done? Today, every family is paying £180 more on their bill as a result of the onshore wind ban that has been in place since 2015. The Government could have lifted the ban but, two months ago, they did not. They offered a weak, half-hearted compromise that will make no difference. As RenewableUK says,

“the planning system is still stacked against onshore wind”.

Why not lift the onshore wind ban? Why is it harder to build an onshore wind farm than an incinerator? The Government had to shell out billions of pounds in subsidies when the energy crisis hit. I think those subsidies would have been something like £5 billion less if we had not had the onshore wind ban. Then we have offshore wind and the disastrous auction, which added £2 billion to bills, according to the industry.

A Labour King’s Speech would legislate to lift the ban on onshore wind, to speed up the planning process and to sort out the grid, so we can decarbonise our power system by 2030. Clean power is the foundation, and next comes energy efficiency. I am afraid that here the Government have utterly failed, and their complacency is extraordinary. This is what the Climate Change Committee said about the whole sector:

“since 2010 progress has stalled, with no further substantive reductions in emissions.”

It has been a shambolic 13 years. We all know the litany: the disaster of the green deal, the green homes grant, David Cameron’s “cut the green crap”. Insulation measures were running at 1.6 million in 2010, and last year—any offers?—they were running at 78,000, which is 20 times lower. A Labour Government would do what the country is crying out for and have a proper plan, funded by public investment, ramping up to £6 billion a year to provide support for home insulation and low-carbon heating.

Next, let us talk about the green economy and building our economic future. The Government are never short of boasting about their record, but we are actually eighth out of eight major countries in Energy UK’s projections for renewable investment up to 2030. And get this: in the seven months after the passage of the US Inflation Reduction Act, which the Government do not like, the US created almost 10 times more green jobs than the UK created in the previous seven years. So in seven months, the US created 10 times more jobs than we did in seven years. What is the Government’s response to the Inflation Reduction Act? They say it is “dangerous”, “distortive” and “protectionist”. This is not some accident; they do believe that this is a role Government. I am afraid to say that that is a recipe for Britain losing the global race.

What would Labour do differently? We would have a national wealth fund, not with one-off, ad-hoc investments, but a proper plan. We would be investing in ports, our steel industry and electric battery factories. We would also have a new publicly owned energy company, GB Energy, which I am glad the Secretary of State mentioned. It would be partnering the private sector in the industries of the future. The Government object to GB Energy, because they say that we do not need public ownership of energy in Britain. I have to say to the House that the Government may not realise it, but we already have public ownership of energy in Britain, with EDF, Vattenfall, Ørsted and Statkraft. They are all companies wholly or partly owned by states—foreign states. They own our industry. In fact, nearly half of our offshore wind industry is owned by foreign states—by state-owned foreign companies. So the Government take the extraordinary position that it is okay for state-run companies to invest in Britain, so long as they are not British state-owned companies; let French, Swedish, Danish and Norwegian citizens get the wealth from our energy industry, just not British citizens. That is the Government’s position.

This makes me a nerd, but let me say that the late Ian Gilmour wrote an autobiography—[Interruption.] It is not that that makes me a nerd. [Laughter.] He wrote an autobiography about his time in Mrs Thatcher’s Cabinet, and some here will know that its title was “Dancing with Dogma”. That is what we are seeing here, because the Government are in favour of public ownership of our energy assets, so long as it is by foreign states. That does not sound very Conservative to me.

GB Energy would be investing in the industries of the future, partnering local communities to create jobs and wealth for Britain. A Labour King’s Speech would have contained an energy independence Act to make all of this possible: clean power by 2030 to cut bills; a proper energy efficiency plan; a national wealth fund; and GB Energy. That is an energy Bill equal to the scale of the crises we face.

[Jim Shannon]

rose—

[Edward Miliband]

I am going to finish.

The Prime Minister has been in the job for more than a year and he has been rumbled, just as his party has been in power for 13 years and it has been rumbled. For all his talk of change, the public know, as does the House, that he cannot bring the change this country needs. The Government’s pathetic, small legislative programme shows it, and they all know it. They are out of ideas and out of time, and the only solution for our country is for them to be out of office.

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[Dame Maria Miller]

If he does not, people will judge him all the more badly for that.

As I said, I warmly welcome this historic King’s Speech, which comes at a time when the challenges our country faces are starting to crystallise. We have had three major impacts to our economy in the past few years, and the doorstep conversations we were having at the time of the last general election in 2019 were nothing like the ones I am having with my constituents now. Whether we are dealing with the impact of the war in Ukraine, the appalling situation currently in Israel, our leaving the European Union or the impact of the global pandemic, the things that people are talking about now are interest rates and inflation—issues that have not been on the lips of our electorate for a number of years. I am pleased to see that the Government have understood this challenge and are looking at the long-term challenges our country now faces, rather than simply looking at what has happened in the past 10 years. We need to look forward to make sure that we are planning for the very different set of challenges that our economy faces. The King’s Speech will be just the beginning of that process.

When we consider clean energy, it is worth looking first at the track record of this Government. We were the first major economy to legislate for a net zero target, and since 1990 we have cut emissions by 48%. One could be forgiven for not understanding that, given the right hon. Gentleman’s initial contribution. We are aiming to reduce emissions by 68% by 2030. Until we start to agree that there is success we can talk about, the electorate will continue to be confused. When we look at the progress that is being made and applaud it, we can then start to plan properly for the future.

In the first quarter of this year, 48% of our energy came from renewables, which was an increase from just 7% when the Conservatives took power in 2010. Perhaps some of the questions the right hon. Gentleman should be answering are why we were in such a relatively poor situation in 2010 and why more had not been done by the previous Administration. We are now an acknowledged world leader in offshore wind. I will address that later in my speech, because we could be working more with our friends, particularly countries such as Canada, to see how we can make sure that our renewable energy goes from strength to strength.

[Jim Shannon]

One success story of the past few years has been Wrightbus, in Ballymena in North Antrim, and its advancements in hydrogen and renewables. Does the right hon. Lady agree that we do not hear enough about some of the good things? That is one of the good stories and we should hear more about it.

[Dame Maria Miller]

The hon. Gentleman makes a good point. I heard a great deal about the importance of hydrogen to our future on my recent trip to Canada as the Prime Minister’s trade envoy. There are a lot of complications associated with hydrogen and we need to do more work on it, but the hon. Gentleman is right to say that good things, such as those that he mentions, can be eclipsed by the Opposition’s rhetoric if we are not careful. I think also of new nuclear power stations, small modular reactors and fusion energy, for which we have the test bed at Culham, which is being used the world over for the development of that innovative technology. There is also the work being done by the Minister for Industry and Economic Security on critical minerals, which I will come back to later.

Gas and oil will continue to be part of the mix of energy that we use into the future, as they will for most developed countries. Our Bill in this area safeguards those domestic supplies, which is really important, because we cannot leave our country open to not having that safeguard in place, particularly given recent events. The King’s Speech clearly demonstrates a commitment to remaining at the forefront of the world’s transition to net zero, but the Government have also made sure that they have that safeguard in place through gas and oil.

I particularly wish to address the importance of making sure that as we transition to clean energy, the Government, and others, keep a close eye on its impact on our communities. I was reminded of that recently when there was an application for planning consent for an industrial lithium-ion battery plant in a sensitive part of my constituency, right next to a hospital and a river. Industrial lithium-ion batteries are an essential part of our transition to clean energy, because they help iron out the supply of energy, particularly wind energy. As one Member pointed out, the wind does not always blow at the right time and in the right place, so lithium-ion battery storage facilities can help to make sure that energy is available throughout the day, on every day of the year, but they need to be correctly located.

Our planning consents have not been updated to properly recognise the problems that such plants can cause. I am grateful that the Government listened to the arguments I made and have already made changes to planning guidance to introduce mandatory environmental permits soon, which will prevent the granting of planning permissions for those sorts of plants in inappropriate locations. I urge my right hon. and hon. Friends on the Front Bench to make sure that they continue to look for those sorts of issues as they arise.

New technology and a continued drive for clean energy will inevitably mean that further new technologies and processes will emerge. We need to ensure that our existing permitting systems are fit for purpose. Many hundreds of lithium-ion battery plants are planned for this country—I urge right hon. and hon. Members to look in their own constituencies to see if any are planned—and although they are a fire risk and an environmental risk, they are an essential part of the transition. We need to make sure they are safe when they are put in place.

The remarks made by my right hon. Friend the Secretary of State made me think about the importance of rare earth minerals, which are an essential part of our transition to clean energy. I know my hon. Friend the Minister for Industry and Economic Security has already put together an important strategy in that regard.

When I was in Saskatchewan recently, I met the chief executive officer of the Saskatchewan Research Council, Mike Crabtree, which runs the rare earth processing facility. He described the incredible work that is going on in Canada to make sure we have supplies of rare earth minerals that can help us continue to see the transition to clean energy in the future. Wind turbines need such rare earth minerals, and we need plans and treaties in place with countries like Canada that can safely ensure we have a supply of these minerals into the future, so that we are not held to ransom by countries that may not have such stable and democratic regimes in place.