Environment: Low-carbon Technologies

Lord Bhattacharyya Excerpts

Wednesday 14th July 2010 Lords Chamber

[Lord Bhattacharyya]

My Lords, I thank my noble friend Lord Haskel for securing this important debate and for his characteristically wise opening remarks. However, I find myself in the unusual role of a warm-up man—or should that be “warm-up Peer”?—to my noble friend Lord Prescott. Given his great work at Kyoto, he could not have chosen a more fitting topic with which to open his account. I am sure that the whole House looks forward to his contribution today and in the years to come.

I have to admit that I am grateful to my noble friend. I doubt whether the Press Gallery would be paying such close attention to this vital debate without his presence. Despite the terrible inattention of Lobby correspondents and despite what my noble friend Lord Haskel said, most people are very conscious of the low-carbon message. That is shown in the fact that low carbon is already being widely adopted.

Today, the low-carbon revolution is being driven by consumers, not legislators. For example, car manufacturers know that buyers look at a vehicle’s emissions performance as well as the quality of the trim. The green revolution is now consumer and market led. Much of the technology exists and it is now a matter of achieving competitive pricing, which will come with scale.

By taking a consumer focus, we can be realistic about the future, which is happening in the majority of countries. If we are not, we might fall prey to the hocus-pocus that we find in any new market. For example, the all-electric car, which has received huge publicity during the past few years, is a long way from being a widely used reality. Imagine the impact on the grid if tens of thousands of cars were plugged in to charge every evening. We need giant strides in battery technology and massive investment in infrastructure before this will be viable.

At the same time, car manufacturers are achieving massive reductions in emissions through light-weighting, advanced hybrid technology, improved engine efficiency and technology to guide drivers. We should focus on an integrated research programme that includes practical low-carbon innovations alongside the “green sky” big infrastructure projects.

There are two reasons why such investment in practical low-carbon technology is essential. First, reductions in emissions have been a consistent goal for a long time. The “easy” emission cuts have already been made and emission cuts from now on will be far harder to achieve. The bulk of post-1990 reductions came from the switch from coal-fired power stations to gas. To find sources of lower-carbon energy today will require huge investment. The sums involved are staggering. The Green Investment Bank Commission says that up to,

“£1 trillion of investment is required by 2030 to replace, upgrade and decarbonise Britain’s infrastructure”.

Given that scale, we must do all that we can to encourage private actors, whether individual or corporate, to make low-carbon choices, thus reducing the pressure on our energy infrastructure.

Secondly, if emissions caused by the production and transportation of imported goods are included, some argue that UK carbon consumption rose by a fifth between 1990 and 2005—a point made forcefully by exporting nations whose emissions are rising today. We are not merely responsible for what we produce; we are also responsible for what we consume. This means that reducing global emissions requires behavioural change by British consumers. If we are to encourage consumers to choose low-carbon products, we need innovation to make those choices attractive. In other words, there is no point in developing a new green engine if drivers find it inferior to current ones, or in designing green homes that families cannot afford to buy.

Government funding for low-carbon technology, then, must bring businesses and research groups together at the very beginning. We must encourage innovators to develop practical solutions that help consumers adopt low-carbon behaviour. There is an obvious opportunity here to supply the world with the low-carbon technology that consumers demand. Grasping that chance requires support for industrial innovation clusters. It demands that we invest in product and process-based research and innovation.

We should, of course, also be mindful of the need for value for money. We should acknowledge the work of the National Audit Office, whose report into renewables in June proposed fewer but more affordable and effective funding bodies. One suggestion is to bring together the regional growth fund—I do not know what that means—with the Technology Strategy Board and targeted research council funding to create a focused green technology body. When funds are tight, we have to do it in a highly focused manner. Such a clearly defined group would have the resources to make a real impact in low-carbon innovation. That support would encourage innovators, from manufacturers to research laboratories, to invest in green technology programmes. It is not that we are behind any other country in green technologies; it is because the advantage of having financially efficient products is not there.

We must keep a clear focus on consumer-focused practical innovation if we are to meet our targets. Otherwise, much of our investment will be wasted. We cannot afford that, either for the environment or financially. A low-carbon economy requires practical action, not the recitation of mantras. Whenever Prime Ministers and Chancellors talk about low carbon, I do not think any of them really understand what it means. With a clear focus on practical solutions, we can develop low-carbon products and processes that will secure growth, jobs and the environment. That is something all sides of the House would wish for. It is within our grasp. Let us take this opportunity to make it a reality.