SMEs: Net-zero Targets

Lord Dobbs Excerpts

Wednesday 7th June 2023 Lords Chamber

[Lord Callanan (Con)]

I am afraid that I do not agree with the noble Baroness. We have an extensive energy efficiency programme. We are spending £6.6 billion over this Parliament. I agree that long-term consistency and certainty are important, which is why the Treasury has guaranteed an additional £6 billion from 2025 for precisely these measures.

[Lord Dobbs (Con)]

My Lords, the Government have a very ambitious net-zero target and part of that is their ambitious target for the installation of heat pumps, which, frankly, at the moment they look like they are not going to meet. The Minister’s own department’s figures suggest that the great majority of heat pumps so far installed in this country are produced abroad. Is there not a way in pursuit of this ambitious target to ensure that a much greater number of heat pumps installed in this country are produced in this country by British manufacturers rather than sending the business abroad?

[Lord Callanan (Con)]

I agree very much with my noble friend, and we are working with a number of manufacturers looking to relocate production to the UK. I think his figures in terms of the percentage produced in the UK are slightly wrong. Mitsubishi in Scotland produces a large number of heat pumps and there are a number of ground source heat pump manufacturers as well. We want more relocated into the UK. We are looking at a market mechanism with the boiler manufacturers, and have a grant programme to relocate production facilities into the UK.