Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 3rd March 2020 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

9. What recent discussions he has had with the Secretary of State for Scotland on renewable energy.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

The hon. Gentleman will know that we have many conversations across Government. I have spoken with the Secretary of State for Scotland, as well as the Energy Minister in the devolved Administration. In fact, I spoke to colleagues just yesterday.

[Stuart C. McDonald]

I for one would like to say how delighted I am that the Government have finally listened to the common-sense advice of Scottish National party Members on the issue of onshore renewable energy and contracts for difference, even if the delay has cost us five wasted years. Looking ahead, will the Minister ensure that the contracts for difference process is reformed to maximise growth and opportunities for the Scottish and UK supply chains, and how exactly will he go about doing that?

[Kwasi Kwarteng]

As the hon. Gentleman will know, we have been particularly successful in the offshore wind auctions, and we came to our conclusion not because of SNP lobbying, but because we felt that having a pot 1 auction was the best way to reach the net zero carbon target in a timely way by 2050.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

It is important to put it on the record that not everyone in Scotland will welcome yesterday’s announcement, not least my constituents, who have more wind turbines—in sight or planned—than any other constituency in the United Kingdom. Given the ineffective planning system operated by the Scottish Government and their willingness to override local decision making, what reassurance can the Minister give my constituents that they are not going to be overwhelmed by continuing wind farms?

[Kwasi Kwarteng]

I am grateful to my right hon. Friend for his question. We are very mindful of community consent and engagement with the planning process through consultation periods. We are also ensuring that the planning regime is robust. On balance, it was felt that we needed to make a move on this pot 1 auction in order to reach the target.

[Stephen Timms (East Ham) (Lab)]

10. What discussions he has had with the Secretary of State for International Trade on ending UK export finance for (a) coal-mining and (b) coal-fired power station projects; and if he will make a statement.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

The right hon. Gentleman will know that we have announced, with the Department for International Trade, that we will no longer provide any new export finance or new export credit for thermal coalmining or coal-powered plants overseas.

[Stephen Timms]

I am grateful to the Minister for that confirmation. Following the Prime Minister’s announcement at the UK-Africa investment summit, will the Minister set out whether there is going to be a transition period prior to the welcome situation that he has described? Does he agree that UK Export Finance should be promoting the transition away from all fossil fuels in developing countries as soon as possible?

[Kwasi Kwarteng]

The right hon. Gentleman is absolutely right. Any form of financing should absolutely take into account our net zero commitment, and it is in the process of doing so. On the question of coal, I take the opportunity to reiterate the fact that the Prime Minister, only last month, announced the intention to consult on bringing forward the coal closure to 1 October 2024. Even last month, only about 3% of our power generation was coming from coal. So this is a very achievable target, and we are very hopeful that we can take coal entirely off the grid by October 2024.

[Mark Pawsey (Rugby) (Con)]

The move to generate electricity from sources other than coal is very welcome, but some manufacturing processes will still require a supply of coal. Does the Minister agree that it is better for that coal to be supplied from domestic sources rather than being shipped halfway around the world?

[Kwasi Kwarteng]

My hon. Friend is right. Obviously, from a coal and carbon emissions reduction point of view, it makes sense to have a locally based coal source rather than shipping it in a very costly way halfway around the world. That is a fair point. On the point about coal, the 2024 target is absolutely achievable. It is something we are absolutely committed to doing. In the long run, coal will be taken completely off the power generation grid, and that is something to be celebrated across the whole House.

[John Mc Nally (Falkirk) (SNP)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Sammy Wilson (East Antrim) (DUP)]

At the same time as the Government have re-announced subsidies for onshore wind, Scottish Forestry has revealed that 13.9 million trees have been cut down for wind farms on its land. Does the Minister share my concern at those acts of economic vandalism? Does he believe that it is in the economic and environmental interests of this country to tear down trees, cut up peatland and erect steel structures on pristine landscapes in the vain hope that we can change the climate?

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I am always very interested in the right hon. Gentleman’s contributions on this subject. We should look at the details of actual deforestation, but he must not allow himself to get distracted from the big picture. The deployment of offshore wind has been a huge success for the UK. As the Secretary of State said, the price per megawatt hour has come down by two thirds and renewable energy is absolutely at the centre of our strategy to reach net zero carbon.

[Mark Pritchard (The Wrekin) (Con)]

In 2016, the United States became a net exporter of liquefied natural gas. In 2019, the United States became a net exporter of all oil products: both crude and refined. In order to diversify the UK’s energy risk, is it not time that the Government started to interact with the United States, perhaps as part of a trade deal, to import both gas and oil from the United States?