Decarbonising the UK: Role of Shipping Emissions

Michael Tomlinson Excerpts

Tuesday 14th September 2021 Westminster Hall

[The Lord Commissioner of Her Majesty's Treasury (Michael Tomlinson)]

First of all, may I apologise on behalf of the Minister who was going to respond to the debate, as both she and I were detained?

I congratulate my hon. Friend the Member for Rother Valley (Alexander Stafford) on securing this important debate. Not only in this debate but throughout his time in Parliament, he has championed this issue and similar issues, and I congratulate him, once again, on being at the forefront of the debate on these issues.

It is indeed London International Shipping Week and, as my hon. Friend has said, we are “Nelson’s nation”, so this debate is incredibly timely. The shipping of carbon dioxide and hydrogen can play an important role in ensuring a prosperous and sustainable future for British industry, and in supporting efforts to meet our domestic net zero targets.

We have already made huge progress in decarbonising the electricity sector. In 2019, greenhouse gas emissions were down by 13% on 2018 levels. However, it is right to say that, in order to reach net zero emissions by 2050, we must go further. That is why in March we published the UK’s industrial decarbonisation strategy. This document is the first to be published by a major economy and it sets out how industry can decarbonise in line with net zero while remaining competitive. Carbon capture, utilisation and storage, or CCUS, is one key abatement technology and it will be vital as we make this transition.

In May, we launched phase 1 CCUS cluster sequencing process. Its aim is to provisionally sequence those clusters that are most suited to deployment in the mid-2020s. This summer, we also published the UK’s first ever hydrogen strategy, which will put the UK at the forefront of the race to develop low-carbon hydrogen, driving innovation, jobs and investment to scale up the technology. CCUS and low-carbon hydrogen are vital to transform sectors such as steel, cement and chemicals, which lack viable alternatives to achieve deep decarbonisation. The UK can become a world leader in CCUS and low-carbon hydrogen, helping to create world-leading low-carbon manufacturing clusters. Connecting industrial clusters, such as those in south Wales, the south coast of England, the Thames estuary and the firth of Forth in the northeast of Scotland will be critical to enabling the decarbonisation of our steel, chemical and refining industries. That is where the shipping sector can be crucial in realising that vast potential. In our business model update, published in May, we indicated our desire to accommodate the shipping and the non-pipeline transportation of carbon dioxide and, as part of the cluster sequencing process, we asked clusters to include details of future carbon dioxide shipping capability in their cluster sequencing proposals.

Turning to the future direction, we recognise the importance of non-pipeline transportation and shipping for decarbonisation of the broader economy and allowing deep decarbonisation. We are currently working with industry and the devolved Administrations to understand how best to incorporate non-pipeline transportation and shipping within a UK carbon dioxide network.

This is an extremely important issue for the sector, but more importantly, for the planet. I apologise for missing the beginning of the speech by my hon. Friend the Member for Rother Valley, and I make a commitment that if there is any point that he raised in my absence, the Minister will address it directly in writing and leave a copy in the Libraries of both Houses. This is an extremely important issue, and I endorse my hon. Friend’s view that shipping will play an important role in reducing carbon dioxide emissions. I look forward to working across the House, and with the Minister, to ensure that the UK develops the appropriate infrastructure to enable new low-carbon technologies such as low-carbon hydrogen, and meet the challenges that we face.

Question put and agreed to.