Draft Climate Change Agreements (Administration, Energy-intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026

Pippa Heylings Excerpts

Tuesday 23rd June 2026 General Committees

[Pippa Heylings (South Cambridgeshire) (LD)]

It is a pleasure to serve under your chairship, Mr Wishart.

It is positive that the Government are looking at costs and energy bills for businesses and non-domestic consumers. Extending the scope of the climate change agreements scheme is a good step to support our industries in the transition. Decarbonising our industry, and encouraging energy-intensive businesses to be more energy efficient and to transition from fossil fuels to clean energy, will be vital to meeting our carbon targets. That could not be more relevant than in this week: not only is it London Climate Action Week, but for the first ever time we have a UK Health Security Agency red alert for extreme heat. Climate change is no longer a future threat; it is here with us now.

We must do all we can to decarbonise and avoid the worsening of climate impacts on our economy and way of life, so it is right to include the three processes the Minister mentioned—the mechanical recycling of plastic, the packaging of spirits and the production of automative-grade battery cells—in the reduced rates scheme. Ultimately, to decarbonise industry we need a package of policies, including ones to make low-carbon actions and technology viable for businesses.

We Liberal Democrats feel that the Government also need to take steps to simplify the current energy-tax system, and that once the emissions trading scheme is fully effective in the UK, complicated taxes such as the carbon price support and the climate change levy should be abolished. I would like to hear the Minister’s thoughts on that.

As we have heard, the price of energy is currently a huge and disproportionate burden for our businesses, across sectors, compared with other countries, which makes the UK less competitive. We need to take action to help businesses—not just energy-intensive businesses but the many small business that are currently left exposed to exorbitantly high energy costs—to decarbonise and have affordable bills. If the Government are serious about meeting our climate targets and driving British industry forwards, we need action and ambition to help to support businesses and industries to stay competitive.