Jet Zero Council

Jim Shannon Excerpts

Wednesday 14th October 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mrs Miller, and I thank the hon. Member for South West Bedfordshire (Andrew Selous) for his contribution and for setting the scene.

I have had so much email correspondence from different constituents about this that I took the opportunity to make a contribution which, obviously, will be on the United Kingdom of Great Britain and Northern Ireland aspect, but very much coming from Strangford as well, because I have numerous aerospace industries in my constituency. Therefore, if the Government take forward this strategy, which I hope they will, it will benefit my constituency and, indeed, many others. This matter is essential, and I am very thankful to the hon. Gentleman for securing the debate.

I am pleased to see the Minister in his place, and to put that on the record. I understand that this is his second debate in Westminster Hall. I missed his first one—I do not know how I did that, but there we are! I was not in the Chamber, so I was probably engaged elsewhere. As I said, however, I am pleased to see him, because we have a personal friendship and know each other. For the record, I have every confidence in him to take on the mantle for all of us here together, collectively, and ensure the delivery, so that we can all benefit across the whole of the United Kingdom of Great Britain and Northern Ireland.

I have been contacted by Sustainable Aviation. Members will know about that organisation and be aware of the background. They have provided a detailed briefing about the methods that Government could employ to obtain the target set by Jet Zero. They highlighted that between 2005 and 2016 Sustainable Aviation’s member airlines carried 26% more passengers and freight, but they only grew CO₂ emissions by 9%. That is a clear differential that has to be addressed. They have a methodology, of which I am sure the Minister is aware, that I hope he will adopt. That would complement what was said by the hon. Member for South West Bedfordshire, who set the scene, and the other contributions that have been made from both sides of the Chamber.

The industry must be noted and celebrated. In a world where many appear to exist only to find fault—society seems, in many cases, to be like that—I wish to congratulate the industry for doing what it can to make sustainable changes. Let us give credit where credit is due for the direct and positive attitude it has adopted to try and make sure we can move in the correct direction.

Other Members have mentioned APD. The Democratic Unionist Party is committed to that and has had many discussions with Government about it, although maybe not with this Minister. To be fair, we did have a discussion and a Zoom meeting about a fortnight ago, and APD was mentioned by my hon. Friend the Member for Belfast East (Gavin Robinson)—I just recalled that now. APD is important for us, and the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) talked about it as well. Many regions of the United Kingdom can gain from it.

My friend, the hon. Member for South Cambridgeshire (Anthony Browne), is keen on the idea of using hydrogen to tackle the issue. He hopes that companies can be equipped with the skills and the interests to provide an opportunity to develop that.

The hon. Member for St Austell and Newquay (Steve Double) mentioned issues about electric energy. I do not know much about that, but I read the papers with some eagerness and I regularly see stories about electric planes and electric flying. Many parts of the United Kingdom have the ability and the interest to develop that.

In February 2020, Sustainable Aviation members made a public commitment to reach net zero UK aviation carbon emissions by 2050. That is a challenging target, but if they have set it, they must think it is achievable. They are the first national aviation body anywhere in the world to make such a pledge. The decarbonisation road map, published alongside the pledge, sets out a plan to achieve that by working with Ministers. It is clearly a partnership, because that it how it works and that is how they will gain their way forward.

The plan wants to do four things: commercialise sustainable aviation fuels, SAF; invest in cleaner aircraft and engine technology, although it is a challenging time to do that because many planes are not being used and the investment needed is not there, although there is a methodology to do it; develop smarter flight operations; and develop high-quality carbon offsets and removals. Under the plan, the UK will be able accommodate 70% growth in passengers through to 2050. If we follow this plan, I believe that we can deliver what the hon. Member for South West Bedfordshire asked us all to endorse and support, and take net emission levels from just over 30 million tonnes of CO₂ a year down to zero.

I and others speak out on behalf of the aviation sector not because of the jobs alone, but because, let us be honest, the best way for me to get to the House of Commons is to fly. I fly from Belfast City to Heathrow every Monday, or thereabouts, and go back on a Thursday. Air travel for me is a way of getting here. For some it is a necessity. It is a necessity for me and, I suspect, a number of those here in the Chamber, as well as others among the 650 Members. When it comes to business and to flying, I support it as I believe it is a way forward. As with anything in life, changes need funding. I understand that there is a request for £500 million of Government funding over the forthcoming comprehensive spending review period to support SAF commercialisation and research and development.

Figures are easy to look at, but when we think about them further then we realise how big they are. The breakdown provides further clarification, which deserves consideration. I am not disrespecting anybody, but it is not just another pledge. Some £429 million is requested in the form of Government-backed loan guarantees for first-of-a-kind SAF facilities, so they will be paid back. The loan guarantees will help establish the UK as a global leader in SAF. Kick-starting SAF production in the UK will fully support the establishment of the first flagship SAF facility in the UK to unlock the wider potential out there that we can all gain from. First-of-a-kind SAF facilities are very hard to finance. The reason why SA is looking for the loan guarantee is simple. Conventional bank debt is not available, or, if it is available, it is offered at a prohibitively high cost, so it simply does not work out. A Government loan guarantee scheme that is tailored to meet the needs of emerging SAF technologies, providing a proportion of the total capital required, would unlock private finance to fund the first commercial scale facilities. Some £50 million in grants is required to help SAF technology providers transition from lower TRLs 3-6 and to support providers at higher TRLs to move to commercial scale. The UK is presently losing out to other countries that provide greater support and grant funding. “Invest today for the return tomorrow” is what my mother would tell me. She made sure that I followed that principle from the early age of 16, as I suspect many others also did.

Fully exploiting the network of UK expertise will enable the UK to showcase cutting edge facilities, creating a network of flagship SAF production facilities and providing a clear path to commercialisation. Some £21 million is required as part of the £500 million that is talked about. It is £429 million in loan guarantees from the Government, £50 million in grants, and £21 million to establish a UK clearing house to enable SAF testing. That remains one of the major barriers to new fuel supply chains. Aviation fuels need rigorous testing to ensure that they meet the safety and quality standards for aviation, and the United Kingdom is home to some of the foremost experts in fuel testing and approval. Others have referred to the expertise that we have in the United Kingdom of Great Britain and Northern Ireland. I always say, and I will say it again: we are better together. That is the way it should be. Even my colleague and friend on the front row, the hon. Member for Kilmarnock and Loudoun (Alan Brown), would have to endorse that to make things happen, we do that better together. The United Kingdom of Great Britain and Northern Ireland could benefit from the proposals that we have. We all need to feel the warmth of prosperity at a time when lots of the news is not good. Indeed, it is sometimes quite distressing.

I will conclude with this. It is clear that this is the time for the Government to determine how serious we are to facilitate the conversion to jet zero. I look forward very much to the Minister’s response to these and other proposals raised today by other hon. Members, by the shadow spokesperson for the Scottish National party, and by Labour Members as well. I have an industry in my constituency that I will support. I want to see it doing it well. I support Shorts/Bombardier, Magellan in Ballywalter and other companies in Crossgar and elsewhere. I support all my aero industries. I encourage the Government to put their money—if I can say this—where their mouth is and make the changes not only possible but probable for the sake of the industry and the future of our planet, because we have a duty to do that. Coming from an Orange background, I am not usually one for plying green strategies, but this is a green strategy that we can all support.

[Mrs Maria Miller (in the Chair)]

We now move on to the Front-Bench speeches. I ask Members to take about 10 or 11 minutes. I call Mr Alan Brown.