Julie Elliott
Main Page: Julie Elliott (Labour - Sunderland Central)
Julie Elliott (Sunderland Central) (Lab)
I support the comments that my hon. Friend the Member for Ynys Môn (Albert Owen) and other colleagues made about the hon. Member for South Suffolk (Mr Yeo) and his introduction of this amendment.
Investment in clean energy and policies to keep the lights on go hand-in-hand. We need a commitment to decarbonising the power sector by 2030 not just to combat devastating and unpredictable climate change, but to keep energy prices down and the economy growing into the second half of the 21st century. The idea that there is a binary choice between a firm commitment to green energy and keeping energy bills down is clearly a false dichotomy. Decarbonisation is fundamental to keeping energy prices down in the long term; the alternative is to remain at the whim of unpredictable yet ever-rising global fossil fuel prices.
It is therefore shocking that investment in green energy has fallen in every year since this Government came to power. At current rates, investment in 2013 will be at its lowest level since 2006. This is not just a case of “not good enough”; it is an utter dereliction of duty. The Government, riddled by indecision and infighting, are deterring investment, stopping Britain becoming the leader in Europe on renewable investment.
At the evidence stage of this Bill, I asked the Secretary of State whether he agreed with his party’s position of wanting a decarbonisation target in the Bill. He said that he did but we have a coalition Government, which therefore meant that it was not going to be there—that says it all. This issue should be beyond party politics. I welcome the fact that the hon. Member for Waveney (Peter Aldous) has decided to support the amendment, and I understand that the president of the Liberal Democrats, the hon. Member for Westmorland and Lonsdale (Tim Farron), and their former leader, the right hon. Member for Ross, Skye and Lochaber (Mr Kennedy), are going to support it, too. I urge other Liberal Democrats, who have the choice at 4 pm as to which way to vote, to support the amendment, in line with their party policy.
This Government rightly decry short-termism, and we all support a long-term plan to improve British competitiveness and boost growth, which is why it is so disappointing that the Government cannot recognise the crucial long-term benefits of a 2030 decarbonisation target. Long-term strategy is even more crucial in energy policy, where large fixed costs must be met. Investors’ cash, which we know is highly mobile, relies on a strong and unwavering vision from the Government. Without such a vision, the UK has slumped to seventh in the world for investment in clean energy, and for the first time we are no longer ranked first globally for offshore wind attractiveness.
Decarbonising the power sector by 2030 is not just an important part of our legally binding commitment to reducing the UK’s carbon dioxide emissions by 80% by 2050—it is the totality of it. The Prime Minister once recognised that. In 2010, he told the Liaison Committee that
“if we don’t decarbonise electricity, we’ve got no hope of meeting all the targets that we are all committed to”.
I entirely agree with the statement, but, unfortunately, the Prime Minister seems to have abandoned that.
The case for a 2030 decarbonisation target is about more than preventing catastrophic climate change. There is an irresistible business case for these amendments, and it can be summed up in one word—jobs. The renewable industry currently supports 110,000 jobs and, across the supply chain, it could support 400,000 jobs by 2020. In 2012, the CBI estimated that nearly one third of the insufficient number of jobs created in the UK came in the green sector. Two thirds of jobs providing low-carbon and environmental goods and services are outside London and the south-east. Furthermore, if we use the BIS definition of “low-carbon environmental goods and services”, we find that the largest activity in the sector is manufacturing, with 20% of total sales and employment, as opposed to a figure of 13% for the economy as a whole. In 2010-11, green business grew by 2.3% in real terms, outstripping global growth, yet this Government’s dithering is scaring off investment in an industry worth £3.2 trillion.
Jobs, rebalancing the economy and economic growth are three pillars of this Government’s agenda that would be boosted by a decarbonisation target. It is at times of economic stagnation—this economy is certainly not booming—that investment is at its most economically productive. With interest rates at near zero, the Government should be prioritising investment in decarbonisation. That the “greenest Government ever” claim they want to decarbonise the economy but will not support a 2030 decarbonisation target is simply bizarre. Without such a target, I am deeply concerned that this Bill will not give investors the confidence we know they need to invest in low-carbon generation in the UK.
Mr Yeo
I pay tribute to everyone who has taken part in the debate and thank you, Mr Deputy Speaker, for the opportunity to comment briefly on what has been said. I am particularly grateful to members of my Committee who have spoken and although their full tributes have done great damage to my career prospects, they are much appreciated nevertheless—[Hon. Members: “What career prospects?”] Okay, I accept that.
I am particularly pleased that most of those members maintained the position that the Committee took last summer when we reported on the draft Bill and made a unanimous recommendation about the need for a target. My right hon. Friend the Minister set out the Government’s position very powerfully. I do not think that there was any doubt about his reasons for opposing the amendment, but nothing he has said has explained to me what, if the Government remain as serious as he says they are about meeting the fourth carbon budget, which takes us to 2027, and progressing further towards the 2050 target, the objection is to accepting now rather than in three years’ time the advice of the Committee on Climate Change about a 2030 target for decarbonising electricity generation. That seems to me to be completely consistent with everything he said.
My right hon. Friend also had some perhaps predictable fun about press reports of an answer I gave at something called the Westminster Russia Forum last week, but I am not sure that he attempted to understand the intervention I made during his speech. I do not doubt, and I have not doubted for 20 years, that the man-made increase in greenhouse gas concentrations in the past 200 years as a result of the industrial revolution is extremely likely to be the cause of the changes in the climate that we are now observing.
Leaving that to one side, however, I want to reiterate that unlike a great many people who argue about the science of climate change I see it in an historical context. The human species is one of the most recently arrived on the planet and the phenomenal success of the species—our proliferation in numbers and our control over our destinies to an extent that perhaps no other species has ever achieved—has only happened even more recently than that. The precondition for that has been climate stability.
Concern was expressed by some hon. Members about the cost of energy. I absolutely share those concerns and it is for that reason that the amendment, which I will press to a vote in three minutes’ time, does not have the effect of raising electricity prices by a single penny for the next seven years. Anyone who is concerned about short-term movements in electricity prices should be hammering the Treasury about the floor price of carbon. That is what is forcing prices up and reducing the competitive position of British industry, not the setting of a decarbonisation target for 2030 on advice from the Committee on Climate Change.
As for what will happen to prices in the 2020s, nobody can be certain, as colleagues have made clear. There is, however, a very strong probability that the cost of various renewable energy technologies will be lower then than it is today, as several are on a very rapid downward cost curve. The pace of that reduction in the price of those technologies might be even faster if the industries concerned have greater certainty that the Government remain committed to reducing dependence on fossil fuels for electricity generation beyond 2020.
There are therefore in my view overwhelming environmental reasons for supporting the amendment, but there are other reasons, too. As I made clear, it will encourage investment and bring down the cost of investment, benefiting consumer prices. By accepting the amendment, the Government would strengthen their claim to be the greenest Government ever. The credentials of all previous Governments are not that strong, so achieving that accolade is probably even now within the grasp of the Government. Accepting the amendment would be a big step towards placing Britain in the vanguard of the new industrial revolution, taking our economy to a position in which it is less dependent on fossil fuels. I am convinced that countries, industries and companies that do that will not only be doing the right thing environmentally but enjoy an economic and financial advantage by improving their competitive position over those countries that remain dependent on fossil fuels in 2030.
For all those reasons, I warmly commend the amendment to the House. I urge all my hon. Friends and, in particular, those on the Liberal Democrat Benches, to join us in the Lobby and do something that will materially improve the Energy Bill.
Question put, That the amendment be made.