Making Britain a Clean Energy Superpower

Judith Cummins Excerpts

Friday 26th July 2024 Commons Chamber

[Deirdre Costigan (Ealing Southall) (Lab)]

Many of my constituents in Ealing Southall are incredibly excited by the Minister’s plans for Great British Energy, for taking back control of our energy system and for lowering the bills of hard-pressed families, but does he agree that the Conservative party will have confused many of my residents with its support for public ownership of energy infrastructure only by foreign Governments, and not by the British Government? Taking into account his great plans to make this country an energy superpower, does he agree—

[Madam Deputy Speaker (Judith Cummins)]

Order.

[Michael Shanks]

I thank the hon. Lady for her helpful intervention, and I am very happy to agree with her. There is confusion at the heart of the Conservative party’s plans. They have been very happy to hand over key parts of our national infrastructure to foreign Governments, for the profits go to the public in those countries, but they have been ideologically opposed to any suggestion that the British taxpayer should have any stake in those futures. That is something that we will turn around.

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[Michael Shanks]

I will carry on, if that is okay.

We will ensure that we have a regulator that fights for consumers as well. We have seen repeated failures in recent years, including the scandal of the forced installation of prepayment meters, poor customer service, and consumers picking up the cost when companies go to the wall. The Government will overhaul the mandate, powers, remit and redress of Ofgem, and we will reduce the burden of standing charges, which have risen by £150 since the start of 2022. We will hold companies to account for wrongdoing and ensure that there is automatic compensation for those failed by their energy supplier.

Finally, the next 18 months in the run-up to COP30 are critical to ramping up and delivering on our global climate commitments. Britain must and will regain its influence on the international stage, so we will work with international partners to raise ambitions, including by leading a clean power alliance that brings together a coalition of countries to accelerate the clean energy transition.

The Government’s clean energy mission and our wider energy agenda are critical, not just for that international leadership, but as a route to lower bills, energy security and good, long-term jobs. There is no doubt that we are playing catch-up. If we succeed—and success is vital for all of the reasons that I have outlined—the benefits will be substantial and felt by everyone long into the future. We have wasted no time as a Government getting started in pursuing this mission and I look forward to the contributions of hon. Members across the House, so that together we can deliver this critical agenda for the future of our country.

[Madam Deputy Speaker (Judith Cummins)]

I call the Opposition spokesperson.

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[Mary Glindon]

That is exactly what the companies are telling me and, as a member of the former all-party parliamentary group on oil and gas, I know it has often been said.

The people working in these industries are worried about how their lives will change if they are not able to adapt to new industries. These are important jobs in our communities, where sweeping job losses are still in people’s memories. In Newcastle upon Tyne East and Wallsend, it is not uncommon to speak to people who were affected or know someone who was affected by the de-industrialisation of the 1980s. The closure of the pits, shipyards and factories ruined people’s faith in politics and the economy for a generation.

The offshore energy sector includes independent oil and gas producers, large integrated energy multinationals, renewable energy companies and a supply chain that we need to keep here in the UK. That includes companies in my constituency, such as Baker Hughes and Peterson, which operate right across the UK and, indeed, the globe. These companies have the vision and ambition, which we all share, to deliver a home-grown energy transition and net zero. Almost £200 billion will potentially be spent over the decade, but the companies investing in nascent opportunities such as floating offshore wind and carbon capture and storage will require the cash flow from a stable and predictable oil and gas business to fund these opportunities.

I welcome Labour’s manifesto commitment to manage the North sea in a way that does not jeopardise jobs. However, I would be grateful if the Minister could set out, in practical terms, how he will safeguard important jobs and investment in communities like mine. Britain’s potential to become a clean energy superpower is not only exciting but necessary. As the Government accelerate this journey, I urge Ministers to ensure that no one is left behind.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

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[Wera Hobhouse]

Indeed, there are not easy answers to all these questions. We need to look at the fine balance of cost versus getting community buy-in. There is going to be a transformation of our landscape, and we need to be aware of that. We must also make a good case for why it is urgent that we get to net zero, and in my view that balance in the argument was not struck properly by the previous Government. It is important that communities buy into our big landscape transformation, but it is also important that we do this at an affordable cost for the whole of the UK.

We Liberal Democrats are calling for all new homes to be net zero immediately. It is crazy that we are building homes today that will need upgrading in a few years’ time. We are proposing a 10-year emergency upgrade programme for homes, starting with free insulation and heat pumps for those on low incomes. That will not happen without incentivising private landlords and having tougher energy efficiency targets. The private rental sector has the most energy-inefficient homes. Nearly half of households living in these properties are in fuel poverty, but local authorities have taken limited action to enforce minimum energy efficiency standards.

Whether it is tighter regulation on private landlords or further sanctions to ensure that they comply, the Government must put their mind to the private rental sector. We will ensure that energy efficiency for rentals is not brushed under the carpet. That includes incentives for the private rental sector. From discussions in the previous Parliament, I know that the Labour party is relatively reluctant to give money to private landlords, but without incentivising the private rental sector, I do not think that a home insulation programme will happen, particularly for low-income families. I urge the Government to think about that.

As well as landlords, businesses must be incentivised to invest in the green transition. The U-turning of the Conservative Government sparked immense distrust from industry, with the UK chair of Ford warning that her business needs three things from the Government: ambition, commitment and consistency. That is exactly what they must deliver. Years of stop-start investment have left the energy sector reeling. Businesses and trade organisations have long been calling for a detailed plan of action that offers the clarity and certainty that will make the UK an attractive country to invest in. I hope that this Government can finally deliver the certainty that the country so badly needs.

Climate change is happening, but every cloud has a silver lining. Seizing the economic opportunities of net zero will help us spread wealth and opportunity to every corner of the UK. From insulating homes to providing thousands of new jobs in the energy sector, it is clear that everyone can benefit from a thriving green economy. I look forward to working constructively with the new Government to combat climate change, reduce energy bills and be a leader in the journey to net zero.

[Madam Deputy Speaker (Judith Cummins)]

Due to the large number of maiden speeches, and the fact that I want to get everybody in, I am now imposing a six-minute time limit—with the exception of maiden speeches. I call Jess Asato.

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[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

It is my pleasure to follow the hon. Member for Bathgate and Linlithgow (Kirsteen Sullivan). I congratulate her on her eloquent and passionate speech, and particularly on her call for gender balance. I am sorry to tell her, though, that her use of the native tongue appears to have brought the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) back to the Chamber. Whether that is to congratulate her or correct her, I am not quite sure.

Moving swiftly on, the area that I am privileged to represent has been at the heart of the UK’s energy production for 50 years and more, and it is now poised to be at the forefront of a renewable energy revolution. Frankly, we could and should be much further along the road to energy transition, but we are where we are. The Government have said that they want us to become a clean energy superpower, but I regret that they have scaled back on their original ambitions to invest £28 billion in order to realise that goal. Nevertheless, I hope that they will chart a pragmatic and constructive way forward.

The journey to net zero is well under way in Scotland, with estimates suggesting that the renewables sector already supports around 42,000 jobs. The UK, though, is behind schedule when it comes to investing in the infrastructure, including the grid infrastructure, that those projects will require. The unrealistic pricing of contracts for difference has held back the development of offshore wind. The new Government need to address that issue with the same urgency with which they are moving on other matters.

The north-east of Scotland has been the European capital of oil and gas for many decades. Now we have the opportunity to be the net zero capital. We have enormous potential to capitalise on offshore wind generation and the development of green hydrogen. These are time-limited opportunities, especially as we have ambitions to develop lucrative supply chains, as well as technologies and manufacturing that have significant export potential. In the longer term, that would be the prize for our economic future.

I want to impress on Ministers today the case for bringing the HQ of GB Energy to the north-east of Scotland. Just look at a map: the bulk of offshore renewables production will be within a 100-mile radius of Aberdeen. The ports that will be essential to servicing the sector, most notably Peterhead and Fraserburgh in my constituency, are on the east coast, close to the Moray Firth. There are also important potential roles for smaller ports. We already have a workforce with relevant skills and unrivalled experience. We also have the most to lose; according to research published last year by Robert Gordon University, around one in five jobs across north-east Scotland is in the oil and gas sector. I do not want to see a repeat of what the Thatcher Government did in mining and steelmaking communities across Scotland and elsewhere. Perhaps as much as 80% of skills in oil and gas are crossover skills. We must support that crossover.

Successive UK Governments have used the North sea as a cash cow. Some £10.6 billion flowed into the Treasury coffers in 2022-23, but there has not been a great deal to show for it in Aberdeen city or Aberdeenshire, in terms of infrastructure or investment in that crucial transition. I hope that can change going forward.

As we debate the need to address climate change, improve energy security and deliver a fairer deal for consumers, it is important to acknowledge the reality: we will continue to need oil and gas for some time to come. Many of us are still using gas to heat our home. Fuel poverty is very real. High standing charges and a cold climate is a brutal combination that pushes thousands upon thousands of households into energy poverty. Most of us still use cars that run on petrol or diesel. In areas like mine, where distances are greater, public transport is more limited. Colder winter temperatures mean electric vehicles work less well and the use of traditional vehicles is accentuated. Our reliance on fossil fuels is falling, but it is not about to disappear. Oil and gas will continue to be part of our energy mix for some time, which is why it is important that ongoing production is in line with climate compatibility criteria, and is managed in a way that does not lead to a premature winding down of production in the North sea. However, the current fiscal regime for North sea production has created a very real and present risk. It has the potential to cost thousands of jobs and saddle the Treasury with cumulative decommisioning costs.

I ask Ministers to look at the impact that the energy profits levy has had on jobs and productivity, consider the role of the energy security investment mechanism, and acknowledge the importance of investment allowances. Why? Because the fiscal regime in the North sea is holding back investment in energy transition. We need to recognise that North sea operators are, in many cases, those who are making the biggest investment in renewables. If the Government really want to unlock the potential of the renewable energy sector, they need to work with those who can invest on the scale required and over the necessary timeframes, and who already have an experienced, expert workforce at their disposal. I would welcome the Minister’s comments, in his summing up, on the Government’s plans for a fairer fiscal environment across the energy sector.

I will make one final point, on carbon capture and storage. We need to press on with projects such as the Acorn project at St Fergus precisely because they are cutting edge and have tremendous potential to create new technology, knowledge and expertise. We have a globally competitive subsea supply chain in the north-east of Scotland. We excel in developing solutions to technical challenges. We see challenges as opportunities, and we seek to be leaders in innovative new technologies. There is the potential to deliver fair energy prices for consumers, improve energy security and help us to meet our international climate obligations. The north-east of Scotland and communities in my constituency in particular will be at the centre of the changes ahead. I urge Ministers to make good on their promises, and deliver a managed and just transition for those workers and communities on the frontline.

[Madam Deputy Speaker (Judith Cummins)]

I call Douglas McAllister to make his maiden speech.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Judith Cummins)]

Order. I will start the Front-Bench wind-ups at 2.10 pm. I call James MacCleary to make his maiden speech.

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[Olivia Blake (Sheffield Hallam) (Lab)]

Not a day goes by when the consequences of our inaction are not hideously illustrated. The wildfires in Canada today should shock us all into action, with 25,000 people having been displaced from their homes. The previous Government continually poured fuel on the fires of the climate crisis, entrenching our reliance on volatile international markets, but this Government have plans to totally turn the corner.

Our journey to becoming a clean energy superpower is not only an environmental imperative but a chance for economic growth and to address the cost of living crisis while making Britain energy-independent. That is why I welcome the Government’s plan to launch Great British Energy, a publicly owned company funded by making big oil and gas pay their fair share from the incredible windfalls they have been receiving. This initiative demonstrates a strong commitment to cutting carbon emissions and embracing renewables. It is a crucial step to lowering our bills through a zero-carbon electricity system.

It is so important that we ensure that this step is co-ordinated, working with new initiatives such as Skills England to ensure that across the board we are increasing training opportunities, especially in key areas such as maritime apprenticeships, which will help with our offshore wind efforts. It is also incredibly important that we unlock the potential of community energy, which has a vast untapped potential for smaller scale renewable schemes that could be owned and operated by local communities, building that resilience into our communities directly. Realising that potential would bring clean, affordable and secure energy to local people.

I very much look forward to working with the Front-Bench team on these issues, and supporting the Bill as it makes its passage through this House. I congratulate the Minister on his appointment.

[Madam Deputy Speaker (Judith Cummins)]

I call the Opposition spokesperson.

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[Carla Denyer]

The hon. Member for Mid Buckinghamshire (Greg Smith) raised a concern about solar threatening our ability to grow our own food in this country. I respectfully suggest that he checks out the recent research by Exeter University, which shows that we could increase the amount of renewable energy we generate in this country 13 times over using, I believe, less than 3% of the UK’s land, and none of the highest-grade agricultural land—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call the Minister.

[Michael Shanks]

That is a helpful contribution, and I thank the hon. Lady for it. Even if we reached our solar target by 2030, it is a very small amount of land that would be used for what is an important part of our energy infrastructure.

A number of other points were made in this debate that underline how complex some of these decisions are going to be, but also the huge opportunities we have. A number of Members spoke about the industrial opportunity that will come from this green transition, and a number offered up examples from their own constituencies relating to the role of skills, which is going to be so important. The sense that this is the mission that we need to be on together as a country is also important, because it will take all of us—with all of our expertise, and the challenge that comes from the Opposition—to make the right decisions so that we can have a long-term plan that delivers the net zero future that we need.

Before summing up, I will return to some of the maiden speeches. In particular, taking advantage of being at the Dispatch Box, I want to highlight my colleagues from Scotland who have been returned to this Parliament, who made some fantastic speeches. It was brilliant to hear my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) speak in Gaelic during his contribution, which was fantastic. I am disappointed that more of our Lobby colleagues were not in the Chamber to hear him do that, but I am sure they will catch up. The point he made about the importance of involving communities in this future was also made by a number of hon. Members. That needs to take two parts: it needs to be consent and consultation, but it also needs to be a recognition of what the rewards for those communities should be. There are a number of options, because not all communities are aligned on what they think that reward should look like, but it is going to be a critical part going forward.

There were a number of quotes that I will look up in Hansard. My hon. Friend the Member for Na h-Eileanan an Iar talked about being seasoned with salt, which was wonderful. My hon. Friend the Member for Glasgow South West (Dr Ahmed) spoke about seeing the world through the long lens: having the discipline to look at some of these difficult, challenging public priorities and recognising that some of the benefits of what we are doing now will not be seen in the next five or 10 years, but it is none the less important to start the work, is something that we in this place can all bear in mind.

To conclude, since the summer recess is fast approaching, I could not help but notice that as a result of all the maiden speeches, we have produced something of our own staycation guide as we have gone around the House. Very quickly, I will just mention my hon. Friend the Member for Lowestoft (Jess Asato), the lido and the safari; the Turner art gallery in East Thanet; Barra, the jewel of the Hebrides with its whisky and salmon in Na h-Eileanan an Iar; the Norman castle in Waveney Valley; Bellahouston park in Glasgow South West, which I know well; one of Becket’s miracles—fantastic; I am going to see the hon. Member for South Northamptonshire (Sarah Bool) about that, and also because I now know that she is the one in the Chamber with sweeties, which is very helpful—and the Open championship in Central Ayrshire. My hon. Friend the Member for Central Ayrshire (Alan Gemmell) has the privilege of representing the constituency that I was born in, and he made a wonderful speech today. I will also mention Aldo’s chippy in Bathgate, Dumbarton castle in West Dunbartonshire, and the delight of being burnt as an effigy in Lewes. I thank the hon. Member for Lewes (James MacCleary) for concluding the debate.

With the 15 seconds that I have left, I thank all right hon. and hon. Members who have participated in the debate. I hope that this is the first of many for them, and that there continues to be a genuine exchange of ideas across the House.

Question put and agreed to.

Resolved,

That this House has considered the matter of making Britain a clean energy superpower.