Draft Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018

Karl Turner Excerpts

Monday 26th February 2018 General Committees

[Karl Turner (Kingston upon Hull East) (Lab)]

It is a pleasure to serve under your chairship, Ms McDonagh. The Labour party is supportive of the draft regulations and very much welcomes them.

The Minister and I met briefly before the Christmas recess, I think it was, and I lobbied him very hard. I am grateful to him for doing what he said he would, which was to work hard to ensure that the draft regulations were brought forward swiftly. That is very much what has happened. The draft regulations are a step in the right direction for the UK to decarbonise transport. As hon. Members will know, transport is the single largest greenhouse-gas-emitting sector. This is a worrying issue, and we must deal with it as soon as we can.

However, this legislation has been delayed for several years—already at least three—which has caused real worry in our renewable fuel industry. In the UK, an estimated 50,000 premature deaths each year are linked to this issue, so it is crucial that the legislation is brought into effect by April.

The Opposition support the growth and development of our renewable industry, in order to support high-skill, high-wage jobs across the UK, particularly in the north, where there are already various renewable fuel producers, in areas such as Hedon, which is very close to my constituency, and in Teesside. Our renewable transport fuels industry is worth £1.5 billion to our economy each year, and the Government need to support it to turn the northern powerhouse into a reality. Actions speak louder than words.

The draft regulations set out to increase the target level for renewables to just under 10% in 2020 and well over 12% by 2032. That will satisfy existing renewable fuel providers. However, I think it is fair to say that the proposals lack ambition. Perhaps the Government can look at further increasing the targets in the very near future. They aim to incentivise the development and take-up of new types of green fuels, as well as revising a crop cap for these types of biofuels. We are aware that the Government have taken that decision because these fuels could eventually result in a net increase in greenhouse gas emissions. The Opposition would therefore like the Government to answer some brief questions and clarifications that I will place on the record. I do not expect the Minister to respond fully today; perhaps he could do so in writing.

I will briefly mention why this has caused concern for our biofuel industry in the medium term and why it believes the Government should regularly review the cap. The industry has raised particular concerns about the steadily declining crop cap; the proposed cap would be the lowest in the EU. It may restrict UK industry and farmers when we should be supporting and encouraging domestic industry as much as possible. I am aware that the regulations provide for a review and further amendments could be proposed later down the line.

I would also like to hear from the Minister about what the Government are doing to support the introduction of E10. He mentioned it briefly in his opening speech, but what are they doing to support the introduction of E10 and when will it be moving forward? It is already used successfully in other countries. We should be at the forefront of adopting new, environmentally friendly fuels in order to tackle climate change, but the Government seem to be dragging their feet on that important issue. Currently, the option of adopting E10 is open to suppliers in meeting their targets under the obligations. Previous Governments have shown the way in mandating unleaded petrol and low-sulphur fuels. Perhaps the Government should look at that model.

To conclude, there are areas in which the regulations can be improved, but we are supportive on the basis that they are a step in the right direction. I hope that some of the brief concerns that I have raised are considered very carefully by the Minister further down the line after the instrument is implemented.