Net Zero by 2050

Baroness Winterton of Doncaster Excerpts

Monday 16th October 2023 Commons Chamber

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

With permission, I would like to make a statement on the Prime Minister’s announcement on net zero.

Britain has led the world on tackling climate change. We have cut our carbon emissions in half over the past 30 years. We have boosted our share of renewables from just 7% in 2010 to almost half today. We have delivered the second highest amount of recorded low-carbon investment cumulatively across Europe over the past five years. Of all the major economies, we have set the toughest targets, and we have exceeded every carbon budget target so far.

As we look forward to becoming a net zero economy by 2050, we must ensure that our ambitions are practical and achievable—achievable by industry, which is investing billions to decarbonise; achievable technologically, as much of the green tech we will need to hit our 2050 target needs to be scaled up; and achievable for consumers, in particular for the millions of households that are currently struggling to make ends meet.

We will not reach net zero over the next three decades unless our plans for the future are pragmatic and viable. Only 7% of people in the UK currently think that net zero is going to be good for them and their family’s finances in the near term. In Europe, we are seeing people push back at clumsy policy that is negatively affecting our lives. It is clear that if we do not bring people with us, we risk sacrificing the whole climate change agenda. That is why the Prime Minister set out his plans last month for a fairer approach to ease the burdens on hard-working people and keep people feeling optimistic about net zero.

The Prime Minister’s approach includes giving people the flexibility to choose a new petrol or diesel car until 2035; removing the requirement that would have seen property owners forced to spend up to £10,000 or more on energy upgrades; easing the transition to clean heating; and raising grants under the boiler upgrade scheme by 50%, to £7,500—that scheme is now one of the most generous of its kind in Europe. The changes will allow us to meet our international net zero targets while avoiding disproportionate costs at a time when global inflation pressures are challenging the finances of many households.

We are responsible for less than 1% of annual greenhouse gas emissions. While our emissions are down 48%, America’s remain unchanged and China’s are up by 300%. It cannot be right that our citizens face punitive costs here when emissions are rising abroad. As the Prime Minister said, the fear is that if we continue to impose extra costs on people, we risk losing their consent for net zero. I want people to feel optimistic about net zero and connect that with jobs, investment and a sense of pride in playing our part in a global challenge. By taking a more measured approach, we will achieve our ambitious targets with the public’s consent.

Meanwhile, we are spending tens of billions to transform our energy security, and to boost renewables and clean nuclear power. We are investing £20 billion to get our carbon capture and storage industry up and running, with jobs supported in places such as Humberside, Scotland and the north-east and north-west of England. We will take carbon dioxide from polluting industries and store it under the North sea. The UK can lead the world in the provision of carbon transport and storage services, with an estimated 78 billion tonnes of theoretical carbon storage capacity in the UK continental shelf—one of the largest potential carbon storage capacities in Europe.

We also have the largest operational offshore wind farm in the world, and the second largest, the third largest, the fourth largest and now the fifth largest, too—all delivered under a Conservative Government. We will have enough wind to power the equivalent of every home in Britain by 2030. We will generate enough solar energy to power the equivalent of over 25 million electric vehicle miles every hour by 2035. We are world leading in our fusion technology and space-based solar projects.

Britain’s nuclear revival is well under way. Hinkley Point C in Somerset will provide enough secure, low-carbon electricity to power around 6 million homes. Sizewell C in Suffolk features the most powerful electricity generators in the world, to power another 6 million homes. We have launched Great British Nuclear to deliver our programme and we have accelerated the development of small modular reactors. Bringing all our work together is the Energy Bill—the vehicle for delivering the energy strategy to turbocharge British technology. It will liberate £100 billion-worth of private investment, scaling up green jobs and growth, and make Britain the best place in the world to invest in clean energy.

The most important announcement made during my tenure has been about the grid. We must make sure that the grid infrastructure is in place to bring new clean, secure and low-cost power to homes and businesses. Four times as much new transmission network will be needed in the next seven years as was built since 1990, so we are bringing forward comprehensive new reforms to help green energy expand faster. We will speed up planning for the most nationally significant projects and accelerate grid connections so that those who are ready can connect first.

Later this autumn we will set out our response to the work of electricity networks commissioner Nick Winser, demonstrating how we are going further and faster on grid, informed by his recommendations on reducing the time taken to develop this critical infrastructure for lower bills, energy security, decarbonisation and economic growth. We will also set out our plans to reform the connections process so that new electricity generators and electricity users can be connected faster, bringing more low-cost, low-carbon energy into the system and connecting up new economic investment quicker. We will set out the UK’s first ever spatial plan for energy infrastructure, to give industry certainty and every community a say.

We have so much to be proud of in what we have achieved so far, particularly the international leadership that we have shown in reducing greenhouse gas emissions. The Climate Change Committee has assessed that there is no material difference in our progress to cut emissions by 2030 since its last report in June, yet the changes we have made will make a real difference to the finances of many households up and down the country. The Prime Minister’s intervention means that we are now on a more secure path, because it can command public support, taking the people of Britain with us and delivering net zero in a practical, proportionate and pragmatic way. I commend this statement to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

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[Claire Coutinho]

I thank the right hon. Gentleman for his response to my statement. He raises a number of questions that I wish to address. He mentions the prospect of the seven bins policy. He has forgotten that he voted for it. The Conservatives, by contrast, came to the good sense to course correct. He has taken leave of his senses and forgotten what he has voted for in the past.

On the question of dietary changes, the right hon. Gentleman might like to speak to his shadow climate change Minister and shadow Chief Secretary to the Treasury, who both have pushed to treat meat like tobacco in the past. The substantial point that I would make is that we need to be practical about our net zero policy and to make sure that we are having honest debates. We on the Conservative Benches stand by our record. We are proud to be the party that has decarbonised faster than any G7 country, and it is regrettable that the Opposition cannot acknowledge that achievement. We are proud that we have secured almost £200 billion of investment in low-carbon energy projects since 2010 and that we have helped to secure this country’s energy independence by backing North sea oil and gas, protecting 200,000 jobs.

Can the right hon. Gentleman be proud of his record? He said that we should sacrifice our growth to cut emissions and that we should borrow £28 billion in his blind ambition for 2030. He supported coal, before he changed his mind and is now against it. He also said that growing our renewables sector to 40% was pie in the sky, but in the first quarter of 2023, 48% of our power came from renewable energy. He spent years at Gordon Brown’s side and as Energy Secretary but did nothing to boost British nuclear in his time in government, whereas we are forging a new path, with every operational nuclear power station in this country having started life under a Conservative Government. Members do not need to take my word for it that our energy security is safer with us, because just this weekend the owners of Grangemouth made it clear that the threat Labour’s plans pose to the future of the refinery, potentially putting thousands of jobs at risk, would be a danger for energy security. Furthermore, we cannot allow oil and gas workers to become the coalminers of our generation. It has been said that Labour

“does not properly understand energy”,

with it being “self-defeating” and “naive”. Those are not my words but those of the general secretary of the Unite union and the head of the GMB.

Furthermore, the right hon. Gentleman talks about uncertainty. If he would like to give the business and industry certainty, he and the shadow Chancellor need to sit down and agree how much money they will actually spend—is it £28 billion or £8 billion? Is it no new money, or is it what we heard over the weekend, which is as much as £100 billion of new borrowing for GB Energy? Conservatives will prioritise energy security. We are set on delivering the most ambitious net zero targets of any major economy, and we will do this all without forcing families to choose between protecting their family finances and protecting the planet.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Environmental Audit Committee.

[Philip Dunne (Ludlow) (Con)]

I warmly welcome what my right hon. Friend has just said about the focus on the grid and accelerating grid access. I hope she will be able to pick up on the report that my Committee is undertaking on that subject and that we can contribute to her deliberations. As she will be aware, I wrote to the Prime Minister on behalf of the Committee in the week following his speech, offering him an opportunity to put some flesh on the bones of what his more pragmatic approach to achieving net zero ambitions actually means. Will she confirm when my Committee can expect to receive a reply to that letter? Will it include an analysis of the impact of the trajectory of delivering net zero on the five-yearly carbon budgets and, in particular, how the announcement we have just had confirmed by the Transport Secretary, who is sitting next to her, on maintaining the zero-emission vehicle mandate will impact on that trajectory?

[Claire Coutinho]

I thank my right hon. Friend and commend his long-standing work on environmentalism; I have been privileged to work with him on this before. I will be responding to him and I look forward to coming to speak to his Committee in due course. We set out unprecedented levels of detail in the analysis of how we are going to meet the targets earlier this year. I also accept the Climate Change Committee’s analysis, which is that the changes we have made are not materially different in terms of achieving our targets—we are absolutely committed to making sure that we do so. As he rightly points out, the biggest announcement we have made on achieving those targets is the one relating to the grid, which will allow for much greater and quicker electrification of society when it comes to the impacts of other proposals.

[Madam Deputy Speaker]

I call the Scottish National party spokesperson.

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[Claire Coutinho]

I thank the hon. Gentleman for his questions. Let me be clear: there has been no watering down of our targets. We have the most ambitious decarbonising targets of any major economy, and we have not changed those at all. We are resolutely committed to them. By 2030, we will have cut emissions by 68%; the US is planning to cut its emissions by 40% and the EU its emissions by 55%. The people of Scotland will be very proud that we are the most ambitious major economy in the world, and we will work towards that together.

We have worked with the devolved Administrations since the announcement, and I am due to speak to my counterpart in due course—I have been in correspondence with him. One of the biggest things that we will do that will be helpful for the Scottish people particularly, and that will bring benefits to the renewable energy sector, is to improve the grid. Having spoken to more than 100 investors, I know it is their biggest ask, and it will be very positive, not just for Scotland but for the whole of the UK.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Environment, Food and Rural Affairs Committee.

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Even before Dogger Bank comes on stream, the UK is leading the world in offshore wind generation. I hope that in due course we will also lead the world in nuclear generation. If we are to charge up all those electric cars and power all those air source heat pumps, we will need an awful lot of electricity at peak times. We will also be producing a lot of electricity at off-peak times. Does the Secretary of State agree that hydrogen will have an important part to play in powering heavy vehicles and heating homes? If we are to do that, we need to make sure that our gas grid does not become a stranded asset, because we might need to press it into service.

[Several hon. Members rose—]

[Madam Deputy Speaker]

We have another debate to follow. I will try to get everybody in, but I will prioritise those Members who have not already asked questions in previous statements or who did not get in. Brevity would be much appreciated in both questions and answers.

[Barry Gardiner (Brent North) (Lab)]

I value the cross-party consensus that this country has enjoyed for the past 20 years, which is responsible for some of the strenuous targets that the Secretary of State has outlined. However, I was disappointed by the Prime Minister’s statement and, indeed, the tone of the Secretary of State’s remarks today. In the spirit of cross-party consensus, will she set out a hierarchy for the utilisation of the 10 MW of low-carbon hydrogen that the Government have now committed to, so that the limited supply of hydrogen power is delivered first to high-energy users such as those in the steel, ceramics, glass and cement sectors who need the extra heat that electricity cannot provide?

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[Claire Coutinho]

As I said, the climate transition presents huge opportunities for this country and the people of this country when it comes to jobs, investment and improving our energy security. That will be the focus of my work in this role. However, we will do that in a way that protects finances and families from clunky and clumsy unimplementable policies.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for her statement.