Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025

Lord Sikka Excerpts

Monday 23rd June 2025 Lords Chamber

[Lord Sikka (Lab)]

My Lords, I am really concerned about the legislation in front of us, because it seeks to extend subsidies to highly profitable corporations, at least until 2031. Inevitably, the major beneficiary is Drax, which is the UK’s single largest emitter of CO₂. In 2023, its electricity-generating operations generated 11.5 million tonnes of CO₂. Add to that the carbon emissions arising from shipping—transporting wood pellets—and it has also been destroying young trees and biodiversity. For that, the Government are going to reward it with possibly around £500 million a year, but some estimates are that it could be £2.5 billion by 2031.