Offshore Petroleum Licensing Bill

Baroness Winterton of Doncaster Excerpts

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Sir Alok Sharma (Reading West) (Con)]

I beg to move amendment 12, page 1, line 3, at end insert—

“(1ZA) The OGA must not invite any new seaward area production application licences until the Secretary of State has by regulations brought into effect a ban on flaring and venting relating to new offshore installations other than that required in an emergency.

(1ZB) The Secretary of State must by regulation make such provision so that the OGA is only permitted to invite seaward area production application licences after 2030 once a prohibition is in place on routine flaring and venting for all offshore installations operating in UK waters.

(1ZC) A statutory instrument containing regulations under subsections (1ZA) and (1ZB) is subject to annulment in pursuance of a resolution of either House of Parliament.

(1ZD) In subsection (1ZA) and (1ZB)—

‘flaring’ means the burning of hydrocarbons produced during oil and gas extraction;

‘venting’ means the release of un-combusted hydrocarbons directly into the atmosphere.”

This amendment prevents the invitation of new seaward area production application licences until the Secretary of State has introduced a ban on flaring and venting by new offshore installations. It also requires the Secretary of State to prevent licensing rounds from 2030 if a wider ban is not in place.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Amendment 15, page 1, line 3, at end insert—

“(1ZA) The OGA must not invite any new seaward area production application licences until the Secretary of State has by regulations brought into effect a requirement that—

(a) all new seaward area production application licences require a specific field commitment of a net zero carbon footprint reached through developing the Carbon Capture Utilisation and Storage network or such other means as deemed appropriate; and

(b) a percentage, to be specified in regulations but not less than 30 per cent, of all new seaward area production application licences specifically align petroleum extraction with the refining of petroleum at the Grangemouth oil refinery.

(1ZB) A statutory instrument containing regulations under subsections (1ZA) is subject to annulment in pursuance of a resolution of either House of Parliament.”

Amendment 7, page 1, line 4, leave out “in each relevant year” and insert “on a case-by-case basis”.

Amendment 2, page 1, line 6, at end insert—

“(aa) the climate test (see section 4ZD)”

This paving amendment, together with amendment 3, sets out the climate test to be applied by the Oil and Gas Authority before inviting applications for seaward new production licences.

Amendment 8, page 1, line 6, at end insert—

“(aa) the energy and job security test (see section 4ZD)”

This paving amendment, together with Amendment 9, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 10, page 1, line 6, at end insert—

“(aa) the just transition test (see section 4ZD)”

This paving amendment, together with Amendment 11, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 13, page 1, line 6, at end insert—

“(aa) the just transition plans test (see section 4ZD)”

This paving amendment, together with Amendment 14, introduces a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 17, page 1, line 6, at end insert—

“(aa) the climate change test (see section 4ZD)”

This paving amendment, together with Amendment 18, sets out the climate change test to be applied by the Oil and Gas Authority before inviting applications for seaward new production licences.

Amendment 22, page 1, line 6, at end insert —

“(aa) the home energy efficiency test (see section 4ZD).”

This paving amendment, together with Amendment 24, introduces a home energy efficiency test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 23, page 1, line 6, at end insert—

“(aa) the Energy Charter test (see section 4ZD).”

This paving amendment, together with Amendment 25, introduces an Energy Charter test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 19, page 2, line 1, after “of” leave out “liquefied”.

This amendment, together with Amendment 20, would require the carbon intensity of domestic natural gas to be assessed against the carbon intensity of all natural gas imported into the UK.

Amendment 20, page 2, line 7, leave out “liquefied”.

This amendment, together with Amendment 19, would require the carbon intensity of domestic natural gas to be assessed against the carbon intensity of all natural gas imported into the UK.

Amendment 21, page 2, line 24, at end insert—

“(4A) Within six months of the commencement of this Act, the Secretary of State must produce and lay before Parliament a report on the effect of amending the definition of “carbon intensity” as set out in subsection (4) according to section 93 of the Climate Change Act 2008.”

This amendment requires the Secretary of State to report how the carbon intensity test is affected if the definition of carbon intensity were amended to include emissions of gases other than carbon dioxide in line with the carbon dioxide equivalent measure in section 93 of the 2008 Climate Change Act.

Amendment 3, page 3, line 23, at end insert—

“4ZD The climate test mentioned in s 4ZA

The climate test is met in relation to a relevant year if the Intergovernmental Panel on Climate Change finds that current global fossil infrastructure will not emit more greenhouse gases than is compatible with limiting global heating to 1.5 degrees Celsius.”

Amendment 9, page 3, line 23, at end insert—

“4ZD The energy and job security test mentioned in s 4ZA

The energy and job security test is met in relation to a relevant year if the OGA assesses that new licences will—

(a) lower energy bills for households;

(b) deliver energy security and reduce reliance on imported fuel sources for domestic consumption;

(c) enhance sustained job security for the oil and gas workforce in areas of the UK economically reliant on the oil and gas sector;

(d) guarantee funding for domestic refineries to increase capacity to process sustainable fuel sources; and

(e) help the oil and gas sector meet commitments set out in the North Sea Transition Deal.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 11, page 3, line 23, at end insert—

“4ZD The just transition test mentioned in s 4ZA

The just transition test is met in relation to a relevant year if the OGA assesses that—

(a) new licences will support the delivery of the North Sea Transition Deal’s greenhouse gas emission reduction targets of 10% by 2025, 25% by 2027 and 50% by 2030 against a 2018 baseline, to meet the sector’s aim of a net zero basin by 2050; and

(b) the Secretary of State has provided funding to support the development of the renewable energy sector, in areas of the UK economically dependent on the oil and gas sector, equivalent to tax revenues collected from UK oil and gas production.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 14, page 3, line 23, at end insert—

“4ZD The just transition plans test mentioned in s 4ZA

(1) The just transition plans test is met in relation to a relevant year if the OGA assesses that all existing seaward area production licence holders have published just transition plans for their workforce that are compatible with limiting global heating to 1.5 degrees Celsius.

(2) For the purposes of this section—

“just transition plans” refer to plans agreed through formalised collective agreements with unions in the workplace for consultation on policy;

“workforce” includes workers, directly and indirectly (sub-contracted or agency) employed, or engaged through day-rate or self-employed contract models.”

Amendment 18, page 3, line 23, insert—

“4ZD The climate change test mentioned in 4ZA

The climate change test is met in relation to a relevant year if the latest reports of the Intergovernmental Panel on Climate Change on the mitigation of climate change find that the granting of additional seaward area production licences is consistent with limiting warming to 1.5°C.”

This amendment sets out a new test to be applied by the OGA before inviting applications for seaward new production licences.

Amendment 24, page 3, line 23, at end insert—

“4ZD The home energy efficiency test mentioned in s 4ZA

The home energy efficiency test is met if the median rating in current Energy Performance Certificates in the United Kingdom falls within or above Band B.”

This amendment sets out the home energy efficiency test to be applied by the OGA before inviting applications for seaward area production licences.

Amendment 25, page 3, line 23, at end insert—

“4ZD The Energy Charter test mentioned in s 4ZA

The Energy Charter Treaty test is met if the United Kingdom has made arrangements to withdraw from the Energy Charter Treaty.”

This amendment sets out the Energy Charter test to be applied by the OGA before inviting applications for seaward area production licences.

Clause stand part.

Clause 2 stand part.

New clause 2—Duty to introduce spatial prioritisation policy—

“After section 4 of the Petroleum Act 1998 insert—

‘4ZAA Duty to introduce spatial prioritisation policy

(1) Before the OGA invites applications for seaward area production licences under this Act the Secretary of State must publish a marine spatial prioritisation policy.

(2) The marine spatial prioritisation policy must establish a process for prioritising offshore renewables, marine protection, fishing activities, oil and gas licensing, and the achievement of relevant targets under the Climate Change Act 2008 and the Environment Act 2021 in any relevant decisions relating to the marine environment made by a body undertaking public functions.

(3) The OGA must comply with the marine spatial prioritisation policy set out in subsection (1) when deciding applications relating to new seaward area production licences.’”

This new clause requires the Secretary of State to publish a marine spatial prioritisation policy, taking into account relevant targets under the Climate Change Act 2008 and the Environment Act 2021.

[Sir Alok Sharma]

I refer the House to my entry in the Register of Members’ Financial Interests.

On Second Reading, I said that this Bill was something of a distraction and not necessary on the basis that the North Sea Transition Authority can already grant licences annually or, indeed, whenever it considers it necessary. That will not change with the Bill. I also noted at the time that the two statutory tests in the Bill have been designed in such a way that the computer always says yes to new oil and gas licences, but I also said that I would work with other like-minded colleagues to improve the Bill and bring in further tests that need to be met before any new oil and gas production licences are granted. That is what I and other Members have sought to do.

Amendment 12 seeks to do two things. First, it would stop the invitation of new production application licences until the Secretary of State has introduced a ban on the flaring and venting of methane by new offshore installations. Secondly, it would require the Secretary of State to prevent licensing rounds from 2030 if a wider ban on flaring and venting is not in place. Along with other Members who have signed up to the amendment, I argue that this is an entirely reasonable ask that the Government and all Members should be able to get behind, given that all it modestly seeks to do is put into statute existing guidance on flaring and venting that was issued by the North Sea Transition Authority.

Let me set out the precise wording of the principles that the NSTA expects industry to follow in relation to flaring and venting across all UK continental shelf areas. First,

“flaring and venting and associated emissions should be at the lowest possible levels in the circumstances”.

Secondly, there should be

“zero routine flaring and venting for all by 2030”.

Thirdly,

“all new developments should be planned and developed on the basis of zero routine flaring and venting.”

That is a set of NSTA principles with which amendment 12 in entirely consistent.

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[Several hon. Members rose—]

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Order. We are in Committee, so I remind Members that the Chair should be addressed by name or as “Chair” or “Madam Chair”, as Sir Alok Sharma did, and not as “Mr Deputy Speaker” or “Madam Deputy Speaker”.

Before I call the shadow Minister, I want to make it clear that I will be calling those who have amendments down first and I will then move on to others, going from side to side.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I would like to speak to our amendments 17, 18, 19 and 20, to comment on other amendments before us today and then to place all this into the context of the Bill as a whole by way of what will effectively be a stand-part contribution. This Bill remains an ill-advised, pointless piece of political posturing—

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[Selaine Saxby]

My right hon. Friend makes a valid point. However, for me, this is about opening up that conversation and making sure that these things are considered in the round. If we are going to put an extra pipe in, we should consider what we are offsetting somewhere else.

Polling found that 80% of the UK public believe our ocean protection laws must be strengthened, and I know how important our waters are to the residents of North Devon and the wider UK. We must ensure that we do all we can on this, while understanding the vital role that oil and gas plays and will play in our energy security. Spatial prioritisation is important to ensure that continuing to drive forward our new green energies is not done at the expense of our traditional industries, such as fishing, and gives due consideration to the marine environment, which we on land owe so much to and are still finding out more about. Balance and optimisation are the objective of this amendment, and I hope the Minister will consider this opportunity, so that we really can have it all and decarbonise our energy, improve our biodiversity, support our fishermen and improve our energy security.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

I call the Scottish National party spokesman.

[Dave Doogan (Angus) (SNP)]

I rise to speak to amendments 7, 8 and 10, which have been tabled by the SNP. I note that no substantive changes have been made to the Bill’s provisions since we discussed it some weeks ago in this place; it is no more responsive to the needs of the climate, the energy sector in Scotland or bill payers who are haemorrhaging money on their energy bills. We know, from the appropriation of Scotland’s energy wealth by Thatcher in the 1980s, Cameron’s “Cut the green crap” at the beginning of this Conservative regime, and the weak-minded and politically naive rolling back of the green transition measures by the current Prime Minister, that time and time again, the Tories will never look after ordinary workers, Scotland or the environment.

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[Dave Doogan]

The hon. Gentleman raises an interesting question. There has been a lack of investment, and the network that delivers energy around GB was designed for a small number of very large generators. It is ill-equipped to deal with many smaller systems of generation. That is why we find ourselves switching off wind turbines and, where the demand still exits, replacing them with gas, much to all our constituents’ cost and misery. The failure to transition in the electricity distribution network across GB is exactly the same failure we see in our dependency and desire to keep looking backwards. We should transition from hydrocarbons to renewables in a way that respects communities.

In closing, we should grasp Scotland’s bright future with both hands. In so doing, we will rid ourselves of the mismanagement of successive UK Governments in Westminster.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Before I bring in some of those who may not have tabled amendments, I remind Members that we are at Committee stage, so discussion is of the amendments. However, as we are also discussing clauses 1 and 2 stand part, there is perhaps a little more scope.

[Peter Aldous (Waveney) (Con)]

As I mentioned on Second Reading, the Bill is of particular interest to me because the oil and gas industry has played a significant role as a major employer in the Waveney and Lowestoft area for nearly 60 years. Moreover, the offshore wind industry and other low-carbon energy technologies, such as nuclear and hydrogen, will provide exciting local job-creating opportunities for generations to come. Dame Rosie, I also chair the British offshore oil and gas industry all-party parliamentary group.

Offshore Petroleum Licensing Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 22nd January 2024 Commons Chamber

[Jim Shannon]

I thank my hon. Friend—I call him that because I have great respect for him—and agree wholeheartedly with what he has just said. The farming community, the NFU and the Ulster Farmers’ Union are clearly committed to the targets. They are committed to looking at the alternatives, but the alternatives have to be practical. The point I am trying to make is that it is about where things are practical.

There is no doubt that to meet not just our net zero target but, more importantly, our environmental obligations, we need to do a better job of accessing and using renewable energy fuels. However, the fact is we will simply not be there any time soon and, in the meantime, it is vital that we secure safety and security for our constituents. I support the aims of the Bill, which would enhance the procedures currently in place, and note that no financial hardship should be passed on through the Bill. That is vital as I know that households are struggling with the current pressures. No longer is it a matter simply for households in poverty, working families with decent wages are being affected.

It is a transition. It is about meeting our net zero targets and increasing green energy and renewables, which my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) referred to. At the same time, the Bill gives us the opportunity to progress those renewables in a way that is positive in the short term.

The Library briefing makes it clear that licensing rounds are run when the NSTA decides they are necessary. However, it should be highlighted that they have been held broadly on an annual basis up to the 32nd licensing round, which opened in 2019. The latest—33rd—licensing round was launched in October 2022, following the introduction of a climate compatibility checkpoint in September 2022. In October 2023, 27 new licences were awarded as part of that licensing round. That is not onerous, but it is necessary not just to safeguard our industry by enhancing investor and industry confidence, as the Government have highlighted, but to ensure that we do not see families scraping pennies together to afford heat.

My contribution to the debate is clearly for those who are in energy difficulties. Today, the papers referred to food bank referrals being up some 30%. The food bank in my constituency of Strangford in my major town of Newtownards saw a 30% increase in referrals over December and early January from people who are middle class who are finding it difficult to deal with energy prices.

I know of several young families who usually enjoy a few days away when the kids are off at Christmas, and they told me that they were just not able to do it this year. People may say, “For goodness sake, they can’t go on holiday…” I am not saying that because it is their right to have that break, but I am highlighting the knock-on effect for families of increased prices is that they cannot afford to sow into the local economy in the way they used to. That means the little 20-bed hotel they usually visit does not get their business. The knock-on effect is that they do not hire the cleaner for as many hours. Her income drops, and she cannot spend the way she usually does, so the knock-on effects continue.

We need the people who spend locally to do so, and for them to do that, energy bills need to be manageable. We are failing when it comes to energy provision. If the Bill helps safeguard our provision as we continue to find better ways to source reliable renewable energy, I support that. When the Minister or Secretary of State sums up, if they could give us that reassurance, I would be a whole lot happier about this debate. Of course, we need to explore tidal energy, but safeguarding domestic production can go hand in hand with that. Indeed, it must do so. I am committed to renewables, green energy possibilities and net zero targets because the farming community that I live in want to commit themselves to that as well.

I support our families, our vulnerable, ill and elderly, and those living in cold, damp homes because they cannot afford to do otherwise. Therefore, at this stage, I support the Bill on behalf of all those struggling to heat their homes and keep their families warm. We must commit ourselves to more renewables and ensure that the renewables percentage rises. If it rises, we can reduce gas and petroleum usage. By doing so, we can balance the process. That is what I am hoping for from the Minister’s reply; I hope we can deliver that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the shadow Minister, I want to emphasise again, and I will do so when he has finished, how important it is for those who have contributed to the debate to be here for the wind-ups. I call the shadow Minister.

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[Mr Sheerman]

On a point of order, Madam Deputy Speaker. I have been in this House longer than most people, and it is a courtesy to the House in a winding-up speech to give way in an even-handed way. This Minister has given way to a Conservative Member, but he refuses to take any interventions from the Opposition.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for that point of order. It is up to the Minister to decide to whom he gives way. It would be slightly more usual for him to give way to Members who had been in the Chamber throughout the debate. However, it is up to him to decide. And I really do not like points of order in the middle of winding-up speeches.

[Graham Stuart]

Thank you, Madam Deputy Speaker.

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[Graham Stuart]

If the hon. Gentleman, who has hardly been here, would sit down, I will fortunately be able to come to a close.

The amendment put forward by His Majesty’s Opposition suggests that maximising the falling production from the North sea will put us at the greater mercy of petrostates. That is so obviously untrue that I hope they would hold their heads in shame about it. That has been at the heart of the Opposition’s approach to this Bill.

The Bill is designed to send a signal to the industry that we have its back. It is all about ensuring that we get to net zero in the most efficient and effective manner possible, and it will underpin this Government’s continued leadership on climate now and for many years to come. I urge the House to support the Bill.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Well, that was lively. [Laughter.] Now that I have Members’ attention, I want to emphasise how important it is for those who have participated in debates to get back in good time for the winding-ups speeches. When the wind-ups come up early, please just keep an eye out for them and make sure to come back, because people who have participated will be mentioned in the wind-ups and it is courteous to be here to hear them.

[Mr Sheerman]

On a point of order, Madam Deputy Speaker. Could I just make it clear to the House that I was not here for the main debate, but came in for the wind-ups, because I was chairing a committee looking at the future of hydrogen? I apologise to the House that I was delayed. Thank you.

[Madam Deputy Speaker]

I thank the hon. Gentleman for that clarification. Nevertheless, it is true that it is up to the Minister to decide to whom he wants to give way.

Question put, That the amendment be made.

Civil Nuclear Road Map

Baroness Winterton of Doncaster Excerpts

Thursday 11th January 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

With permission, Madam Deputy Speaker, I wish to make a statement on civil nuclear power in the UK. Today, we have published three key documents that reinforce the UK’s position as a leader in the civil nuclear renaissance: a civil nuclear road map, a consultation on alternative routes to market, and a consultation on a proposed policy for siting new nuclear power stations. That sets us on a path towards deploying up to 24 GW of nuclear power in Britain by 2050 as part of a cleaner, cheaper and more secure energy system for the future. It is the biggest investment in more than 70 years.

In the civil nuclear road map we are setting out our overarching strategy for the deployment of new nuclear reactors in the UK, and how His Majesty’s Government intend to work with the nuclear sector to deliver that ambition. The road map establishes our vision for a vibrant British nuclear sector, providing detail on the policies that we are pursuing to enable delivery, covering areas such as siting, regulation, financing, the joint work that we are undertaking with Defence nuclear colleagues to develop the required nuclear skills and supply chain in the UK, and how we are taking care of our nuclear legacy through policies on decommissioning and waste management.

Announcements in the road map include a commitment to reform the regulations, financing and decommissioning of civil nuclear to make it more agile, thereby streamlining regulation while retaining the UK’s world-class standards of safety. For example, the measures that we are announcing today could cut by up to 50% the approval times for reactors that are already approved by overseas regulators.

We are also announcing our commitment to reduce global dependence on Russian fuel and to grow the UK supply chain by investing £300 million, alongside industry, in the British production of clean, green high-assay low-enriched uranium fuel for innovative new reactors, thereby offering a commercial alternative to Russia for ourselves and our allies and partners.

The road map also sets out our long-term ambition for nuclear, providing high-level timelines and key decision points for a wide range of nuclear technologies over the next decades. Those technologies include small modular reactors, advanced modular reactors and gigawatt-scale projects, including a new commitment to explore a further gigawatt-scale nuclear project after Sizewell C. Advanced nuclear technologies, such as SMRs and AMRs, present the opportunity to decarbonise across the energy sector, from grid electricity through industrial heat to entirely new industries such as the production of hydrogen and synthetic fuel.

Last year, we set up Great British Nuclear as an arm’s length body responsible for helping to deliver new nuclear projects and lead our energy revolution, but we are also keen to harness innovation in the private sector and help developers to bring forward new nuclear projects outside of GBN’s ongoing SMR selection process. We are therefore today also launching our alternative routes to market consultation. That consultation, which will run for 12 weeks, aims to understand where the Government could support the private sector to bring forward advanced nuclear projects.

Finally, in recognition of our enhanced nuclear ambitions and the exciting potential offered by advanced nuclear technologies, we are launching a public consultation on a proposed new policy for the siting of new nuclear power stations. That consultation marks an important first step in the process for developing a new nuclear national policy statement for England and Wales, and will run for eight weeks. The results of the consultation will be used to inform the drafting of the national policy statement document, which we intend to publish for further consultation.

The proposed siting processes announced today would, of course, apply only to England and Wales. Although our ambition is for a whole British nuclear revolution, the current Scottish Government sadly remain committed to blocking any planning application for new nuclear in Scotland under their devolved consenting regime. However, we continue to invite the Scottish Government to join us and more than 30 other countries around the world to allow for reinvestment in, and the renewal of, our nuclear capacity across the whole UK in order to meet our net zero and energy security objectives. Our intention is to designate the NPS in 2025—subject, of course, to parliamentary processes. For the first time, we intend for the NPS to provide a planning policy framework for SMRs and AMRs, as well as the traditional gigawatt-scale power stations.

To achieve the UK’s nuclear ambitions, the Government believe that additional sites will be required for new nuclear projects, along with greater ongoing flexibility in the site selection process to enable new technologies. We are excited to introduce a positive shift in approach in the siting consultation: the new NPS will empower nuclear developers to identify potential sites for development, fostering developers’ innovation and, indeed, flexibility. Although the existing designated nuclear sites may possess many inherent positive attributes that potentially make them a consideration for future development, the change allows for the exploration of diverse new locations. By entrusting developers with that responsibility, we aim to streamline the process, encourage creative solutions and enhance the overall efficiency of nuclear development, ultimately contributing to the growth and sustainability of the industry.

We propose that the siting of new nuclear would continue to be constrained by robust criteria that determine where development can occur. Developers would be empowered to undertake the initial screening of sites based on those criteria, with advice from regulators and statutory agencies. Of course, it is our intention that safety will remain paramount, with the highest safety, security and environmental standards overseen by the independent nuclear regulator and environment protection agencies. Public consultation and community engagement will also remain essential parts of the process. This package —this vision, this announcement—represents the biggest investment in nuclear in the UK for over 70 years, ensuring our energy security, keeping us on the path to net zero and delivering the jobs of the future: our nuclear future.

I commend this statement to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

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[Andrew Bowie]

I am so pleased to hear the hon. Lady’s support for the Conservative party’s policies regarding nuclear, given that we are investing in all of the above and more. I do welcome the support of the official Opposition and their recent damascene conversion to the benefits of nuclear power, but we should never forget, in this place and beyond, that any nuclear projects in this country and any nuclear power stations have been delivered only by a Conservative Government. It is a record of which were very proud. Labour was in power for 13 years and delivered nothing.

We are very proud today to be publishing our civil nuclear road map. As I say, it is important for the industry that there is cross-party consensus and agreement that investment in nuclear is to the benefit of this country, the economy and the environment and, indeed, will provide energy security and wean ourselves and our allies off our reliance on Vladimir Putin for our energy needs.

The hon. Lady is absolutely right that delivering new nuclear power stations will yield results for the British people and deliver cleaner bills. In Finland, where nuclear power stations are now delivering more than 40% of energy on to the grid, bills have dropped by an incredible 70%. She asked about the final investment decision on Sizewell C; we remain committed to making that decision by the end of this Parliament. On Hinkley Point C, we are in fact very proud of the progress that is being made. Just last month we saw the dome being lifted on to the top of reactor 1. I have nothing but admiration for the workforce and everybody involved in delivering that first-of-a-kind project at Hinkley, and we continue to support it.

The hon. Lady asked about the next phase of the small modular reactor competition. It will be launched within weeks, so I ask her to bide her time and keep her patience. We are very excited to have six fantastic technology companies bidding to deploy in the United Kingdom, and we are moving faster than any comparable programme around the world, to ensure that Britain and the British people benefit from investment in small modular reactors and the benefits they can bring to the energy mix and to local economies.

The hon. Lady asked about skills. One of the things that the nuclear industry can bring, and indeed delivers at this point, is high-skilled, high-wage jobs throughout the country, and indeed in many places where those jobs are at a premium. It is absolutely right that we look at how we can encourage more people, and make the spaces available within industry and in our educational institutions to get more people into the jobs of the future in the nuclear industry. That is why I, along with my hon. Friend the Minister for Defence Procurement, have launched the nuclear skills task force, chaired by Sir Simon Bollom. It will publish its initial findings and recommendations in the very near future.

As I said, I welcome the new-found support, optimism and positivity for nuclear demonstrated by the Labour party, and when we as the Conservative party go on to win at the next election, I am sure that the hon. Lady will continue to offer that support from the Opposition Benches.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Science, Innovation and Technology Committee.

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[Andrew Bowie]

I thank my right hon. Friend for his question and for all the work he has done to champion nuclear, not only in his capacity as Chair of the Select Committee but in his time as Secretary of State for Business, Energy and Industrial Strategy, when he was in charge of getting this ship moving. To answer his question directly, yes it will. The new siting strategy will cover the possibility of the deployment of all technologies —SMR, AMR and gigawatt-scale reactors. I welcome my right hon. Friend’s support.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Richard Thomson (Gordon) (SNP)]

I thank the Minister for advance sight of his statement. He is absolutely right in one respect: the Scottish Government do not support the development of new nuclear power in Scotland. The reasons for that are simple: beside the environmental concerns, the economics do not lie. Nuclear power is slow to deliver and horrendously expensive, and the policy of recent years under Labour and Conservative Governments has been simply to allow private companies to privatise the profits while the risks are socialised for taxpayers. We on this side of the House—at least, on the SNP Benches—all know that Scotland’s comparative advantages lie in hydrogen and renewables, both areas in which the Scottish Government’s ambitions appear to considerably outstrip those of the current UK Government.

May I ask the Minister two simple questions? First, despite his disagreement with the Scottish Government’s stance on planning and nuclear, will he and his Government respect the devolution settlement as it stands? Secondly, will he give an undertaking, as none of his predecessors over the last half century or more have been able to do, that when the multibillion-pound decommissioning liabilities become live for any new generation of nuclear power stations, they will lie squarely on the private companies that have benefited in the preceding decades and will not fall on the taxpayer?

[Andrew Bowie]

The Scottish National party, like almost every nationalist party in the world, has a misplaced belief in its own exceptionalism, and nowhere is that more true than on nuclear. At COP28, we saw over 30 countries come together to pledge to increase civil nuclear capacity around the world by a third, so clear and obvious is it that nuclear is essential not just in ensuring our energy security, benefiting local communities and driving forward our economy, but in reaching our net zero goals and ensuring that we have a cleaner energy baseload in the future. Indeed, there is no net zero without nuclear.

It pains me, especially as a Scottish Member of Parliament, that the Scottish Government’s wrong-headed position on this remains extant. I would very much welcome a change of direction within the Scottish Government. I urge the Scottish National party to look around the world at the countries joining with us in this nuclear renaissance and revival, and to think of the huge benefits that could be brought to Scotland, with its proud history in nuclear going back many decades, if it were to join us on this journey.

Of course we respect the devolution settlement. We are absolutely committed to maintaining it. What I urge, though, is a change of direction, a change of approach and a change of position by the Scottish Government, so that the Scottish people, the Scottish economy and the Scottish environment can benefit from future investment in nuclear that will be felt in England and Wales, and indeed in so many other countries around the world.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Environmental Audit Committee.

[Philip Dunne (Ludlow) (Con)]

Today’s statement provides welcome clarity about the Government’s road map for the delivery and revival of new nuclear energy capacity, and I will be writing on behalf of my Committee to the Minister shortly to raise some points about the SMR competition that he has touched on today. Notwithstanding the grudging support from those on the Opposition Front Bench, what steps is my hon. Friend taking to build the broad consensus behind this essential component of the delivery of net zero, so that the road map does not fall victim to the short-term thinking that bedevilled the delivery of a safe and effective renewal of nuclear capacity in the past, notably under the previous Labour Government?

--- Later in debate ---

[Andrew Bowie]

I thank my hon. Friend for his question and for his support at this exciting moment. Of course, many sites will be looked at for future nuclear development, and in every case they will have to adhere to the stringent, strong and gold-plated environmental standards that we expect of nuclear licensed sites across the United Kingdom.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I do apologise for having called two Members in a row from the same side. I shall immediately correct myself by calling two from the Opposition side.

[Wera Hobhouse (Bath) (LD)]

Thank you, Madam Deputy Speaker—I took no offence at all; it is fully understood.

The best route to affordable energy security is renewables. Nuclear power is blighted by delays and rocketing costs, and the Government are never honest about its much higher costs compared with renewables. On the Government’s watch, renewables have faced long delays and the costs for offshore wind development have increased by 40%. Will a renewables road map soon follow the statement to address those challenges and ensure that the Government do not lose their competitive advantage in offshore wind development?

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his statement. It is great that the Government have outlined plans for the biggest expansion of nuclear power in 70 years to reduce energy bills, which so many of our constituents struggle with on a daily basis. Minister, I ask you this question because you admitted that Northern Ireland—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Gentleman knows that he should not refer directly to the Minister. Let us have another go.

[Jim Shannon]

Apologies, Madam Deputy Speaker. What provisions does the UK civil nuclear plan include to involve Northern Ireland? How will it ensure that the region’s perspectives and concerns are adequately taken into account in the development and implementation of nuclear politics and policies, so that we can create jobs and strengthen our economy at the same time as other areas in the United Kingdom?

COP28

Baroness Winterton of Doncaster Excerpts

Thursday 14th December 2023 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

May I thank you, Madam Deputy Speaker, as well as all the staff of this House and colleagues across the House, for all your hard work this year? I wish everyone a very happy Christmas.

It was a privilege to attend the summit in Dubai over the past two weeks. I was proud to represent a country that has cut greenhouse gas emissions more than any other major economy since 1990; that has boosted our share of renewable electricity from a rather dismal 7% in 2010 to almost half today, while almost entirely phasing out coal power; that has led the world in mobilising green finance; and that is now ensuring that we bring the British public with us on the transition to net zero, thanks to the Prime Minister’s plans to protect families from unnecessary costs and give people more time to adapt to changes.

While we are on track, the world is not. The global stocktake confirmed that emissions need to peak by 2025 and fall by 43% between 2019 and 2030 to achieve the Paris goal of limiting warming to 1.5°C. The current pace of global decarbonisation is well behind that trajectory, and the urgency of the climate challenge means that we cannot delay any further.

The Russian invasion of Ukraine has underlined the importance of transitioning towards renewables, which are less vulnerable to price shocks. That is why our objectives throughout COP28 were clear: we needed to agree urgent action to ensure 1.5° remains viable as a ceiling, including trebling global renewables, doubling energy efficiency and phasing out unabated fossil fuels; and we needed to reform international finance to unlock the trillions required in climate funding.

Today I am delighted to say that we have secured a final agreement that supports those goals. For the first time ever, we have a global agreement on a transition away from fossil fuels. The agreement on fossil fuels builds and expands on the UK’s leadership at COP26, which had the first reference to phasing down coal power, secured agreements behind efforts to decarbonise key sectors of the global economy and, most notably, saw the proportion of global GDP covered by net zero targets increase from around 30% to 90% during our presidency.

This week’s COP28 agreement is not perfect. We wanted to see more action on coal, and on ending the construction of new coal power plants in particular. Like some of the small island states, we wanted greater clarity and fewer loopholes in the agreement. None the less, this is a turning point. We are unifying the world around a common commitment, listening to the islanders of the Pacific and elsewhere, whose voices must be heard, and showing that we are responding to the science by moving away from fossil fuels and raising a torch to inspire action.

Throughout the summit, the UK made significant progress on delivering that action, building on our legacy from COP26. We were pleased to be one of over 130 countries to support the global pledge to triple renewable energy and double energy efficiency by 2030. As co-chair of the Powering Past Coal Alliance, I was delighted to welcome 13 new members, including the United States of America and the United Arab Emirates—all committing to phase out unabated coal power. Through the Energy Transition Council, we are working with developing countries via our rapid response facility to help support them through the energy transition.

We also announced £1.6 billion-worth of new international climate finance projects, which will support developing countries to transition to net zero and adapt to the impacts of climate change, while also expanding green industries on a global scale. We joined the UAE’s climate finance framework, which sets out new principles to reform the global financial system, and we announced plans to launch the climate investment funds capital market mechanism to raise up to £7.5 billion over the next decade for green projects.

However, we recognise that keeping global warming to less than 1.5° is impossible without urgent action to protect, sustainably manage and restore forests. Following the historic agreement at Glasgow to halt and reverse deforestation by 2030, the Prime Minister made forests and nature a top priority for COP28. We agreed £576 million to safeguard 10 million hectares of forests and help half a million people in poor, rural communities, which are the most vulnerable to deforestation. I joined Brazil’s Environment Minister, Marina Silva, to welcome the Prime Minister’s pledge of a further £35 million for Brazil’s Amazon fund. That is on top of the £80 million we announced earlier this year, making the UK one of the scheme’s top three contributors. Finally, the new forest risk commodity measures in the Environment Act 2021 will ensure that there is no space on our supermarket shelves for products linked to deforestation.

However, that is not all. We secured the expansion of the breakthrough agenda—our clean technology accelerator—to cover 57 members and seven economic sectors, representing 60% of global emissions. Up to £185 million was announced for a first-of-a-kind, UK-led facility to help countries across Africa, Asia and Latin America to commercialise green technologies. Essential commitments to support resilience included up to £60 million of UK funding for loss and damage—a significant outcome of Sharm el-Sheikh, now carried forward into operation—an agreement on the framework for the global goal on adaptation, and an international green public procurement pledge to boost the use of green steel, cement and concrete. The UK endorsed a bold plan to triple nuclear power capacity globally, mirroring our domestic strategy for nuclear to make up a quarter of electricity production by 2050. There were also new partnerships with Brazil supporting industrial decarbonisation and hydrogen transitions, and a roadmap for the expansion of zero-emission vehicles in the developing world, backed by major donor countries. The great news is that British businesses will benefit hugely from all that, because as the world decarbonises it will use British expertise and skills as a springboard to realise the net zero transition.

Just as the Prime Minister announced measures to ensure that we bring consumers and households with us on the energy transition, our negotiations at COP have been about bringing countries with us, helping richer nations to set an example, encouraging the biggest polluters to replace fossil fuels with clean energy and working with developing nations to finance green growth. COPs are, above all, about people and our long-standing, trusted relationships with partners all around the world— from big emitters to small island developing states—afforded us significant influence. I am proud of the role that my team played.

I pay tribute to the UAE presidency and Dr Sultan al-Jaber, who acted as COP President, as well as a host of others, including the High Ambition Coalition for its leadership jointly to deliver this result. I was delighted that the UK was able to support a strong delegation of international parliamentarians at this COP, including the first ever pavilion dedicated to parliamentarians. Despite this landmark agreement, and however successful the UK’s record to date, we still have such a long way to go to finance the transition and achieve our global ambitions, so the UK will continue to encourage others to join the UK on a net zero pathway in this critical decade and help deliver a just, prosperous and secure future for all the peoples of the planet.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

--- Later in debate ---

[Graham Stuart]

I pay tribute to my right hon. Friend for his efforts at COP26 in Glasgow, including the significant measure on phasing down coal. [Interruption.] Could the right hon. Member for Doncaster North (Edward Miliband) be quiet for one second? He did so little in government, and he has so much to say now—it is quite a contrast, is it not?

Returning to my right hon. Friend’s serious and respectful question on oil and gas licences, as I said, we are a net importer. We are producing our own oil and gas to ever higher standards, and I am proud of the North sea transition deal, which has seen the industry work with Government to cut emissions from production by 50% by 2030. My challenge back to my right hon. Friend is this: in what way is there any linkage between producing to ever higher standards and a falling level of oil and gas? New licences simply allow us to manage the decline of a basin that is expected to fall at 7% a year and to halve in a decade, and will see us growing our independence from imports, even with those new licences. That is why we are issuing them.

On the issue of subsidies, our tax regime is set at 75% —among the highest in the whole world. [Interruption.] The right hon. Member for Doncaster North cannot win the argument when he is on his feet, so he tries to do it when he is sitting down. If only he had shown the same energy when he was in government, we would not have had the woeful inheritance that we alone have had to turn round. We are expecting £50 billion in taxes from the oil and gas sector, and without new licences to allow for the greening of the basin so that we reduce emissions, we would not be able to ensure that each barrel of oil and production of gas comes with a lower level of production emissions than it does today. That is our ambition.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

I thank the Minister for advance sight of his statement.

At COP26 in Glasgow, Scotland became the first developed nation in the world to commit funding to address loss and damage. Does the Minister agree that loss and damage funding should be prioritised to meet the needs of the communities that need it most, and distributed in a way that does not add to the debt burden of the global south? Scotland’s First Minister has welcomed the deal, especially the new pledge of $700 million for loss and damage, but of course, that still falls short of the funding that will ultimately be required. What is the UK doing to push for more funding down the line, and how much will it contribute now?

The former president of COP, the right hon. Member for Reading West (Sir Alok Sharma), made an excellent point. The new agreement reached at COP28 commits all countries to transition away from fossil fuels. We welcome that agreement, to which the UK is of course a signatory. Can the Minister outline how the UK Government’s plan to increase oil production in the UK aligns with the plans to transition away from fossil fuels, and how can we trust them?

COP28

Baroness Winterton of Doncaster Excerpts

Thursday 16th November 2023 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to contribute to this debate. COP28 will be vital, recognising the global stocktake that will be happening, and I commend the Government on the progress they have made, while also recognising, not just in this country but around the world, the necessity of a just transition.

I pay tribute to the Prime Minister, who in his speech a couple of months ago recognised that we have already been doing so well on aspects of the carbon budget. He also recognised some of the impacts that were about to unfold, particularly in rural communities like mine in Suffolk Coastal, including a transition away from oil boilers—something that we all want. He is allowing more time for that to happen, rather than the sudden impact that such measures could have had on many people in my constituency and across the country. His speech was also about aspects of housing and the energy performance certificate. Undoubtedly, in many rural parts of the country, trying to achieve EPC standard C is difficult, because there is pretty old housing—not just from 20 or 30 years ago, but considerably older. Trying to make that change meant that a lot of buildings were at risk of being removed from the private rental sector, which would not be good in terms of housing people in our rural communities.

I also commend the Prime Minister on saying, in a key part of his speech at COP27 in Sharm El-Sheikh last year, that there is no solution to climate change without protecting and restoring nature. That is 100% right. Again, the United Kingdom should be proud of how it has put nature, and nature-based solutions, at the heart of ensuring that we achieve net zero around the world.

In her 1988 speech, my political heroine Margaret Thatcher highlighted the risk to the world of climate change. She was pivotal in ensuring that the Montreal protocol, and its subsequent amendments, was an innovative way—indeed, the most successful agreement ever reached —to try to tackle climate change. The Kigali amendment to the Montreal protocol was ratified by this Parliament in 2017, and I was pleased to be the DEFRA Minister who led that ratification. The critical outcome of that is to try to prevent 0.5°C of warming, which will help. Indeed, that is the single biggest contribution that will be made towards keeping the goal of 1.5° alive.

This is about how we tackle the issue in a variety of ways, in particular how we use hydrofluorocarbons—in the past it was chlorofluorocarbons—and thinking about the global warming power of the different chemicals we use. In my constituency, GAH Transport has been in operation for 30 years. It is a small business, but it is really making an impact with the amount of research and innovation that it is undertaking to try to use more of the sorts of chemical that reduce global warming potential. That will be an important part of the innovation we need not just in this country but around the world. I am delighted that the UK Government are funding, through international climate finance and other aspects of official development assistance, important progress in India and Rwanda. That is important progress in the cooling challenges that those countries face, not only when heating or cooling homes, but also—particularly in Rwanda, working with other African nations nearby—when thinking about the impact on agriculture, and how we can try to reduce food waste. We are supporting that important innovation to ensure that we keep the goal of 1.5° alive.

I have one request for the Minister. The United Arab Emirates, which is taking up the COP28 presidency, has not ratified the Kigali amendment, and I encourage him to raise that with the COP28 President and Ministers for that country to see whether they can do that. We need leadership across the world. The amendment is already in effect because a sufficient number of countries have signed, but it would show further leadership from the UAE to undertake that important ratification.

I admit that I am a bit of a veteran of COPs. I went to COP23 in Bonn in 2017, and to COP24 in Katowice. We had the magnificent COP26 in Glasgow, with our own president, my right hon. Friend the Member for Reading West (Sir Alok Sharma). In many ways that was a game changer for nature, and it was strengthened last year at COP27 in Sharm El-Sheikh. Going back to Bonn, nature was really the Cinderella of it all. The oceans—we were already seeing the change, and the impact of climate change; we were starting to see acidification. Although the seas are still alkaline, they are getting more acidic, and it is important to recognise that power and how nature has helped us.

Oceans have effectively been absorbing so much carbon that the impacts—what that is doing to nature—are now starting to become clear. The hon. Member for Bristol East (Kerry McCarthy) mentioned the bleaching of coral reefs and the potential loss of those reefs, and it is important that nature goes hand in hand with climate strategy. I am delighted that the UK Government have made that a key part of what we do.

On other aspects of nature, the Minister and I have attended a variety of international meetings. Most recently we were together in India for the G20, and I was with the former Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), in Japan at the G7. It has been an important part of that journey that we work globally with partners. To some extent, that has been the secret of what made the Montreal protocol work so well. Funding was given to try to help countries around the world with that innovation and transition. Some of those things are not straightforward. For example, right beneath us we have the tube system, and the way that some of these chemicals or gases were used in the past has been a key part of some of our own infrastructure. We need to change away from that, in particular by not using sulphur hexafluoride any more, or by reducing it and phasing it down as far as we can. It is important that we share our understanding and technology, and that is why what I said about India and Rwanda is an important part of making that happen.

Thinking a little more broadly, I will briefly touch on my time at the Department for Work and Pensions. I do so because I know that a lot of these measures will need financing. We made an important decision to make reporting to the Task Force on Climate-related Financial Disclosures mandatory when it comes to pensions. If we think about the trillions of pounds of assets that are in global business and being invested, it makes sense for businesses to think ahead about the impact of climate change, and for investors to do so as well. That does not mean that things will happen overnight. Businesses must be conscious of what the impact of climate change will be, and frankly they need to start financing to try to mitigate that impact or adapt towards it. As a slight aside, I welcome the Taskforce on Nature-related Financial Disclosures, and I hope I can persuade the Secretary of State for the Department for Work and Pensions to adopt that in future as well.

In order to ensure that we achieve net zero by 2050, we do have to think of the planet—of course we do—and we have to think of people. A lot of this is quite an uncomfortable transition and a change to a way of life, and we must make it as straightforward as possible. I also know that we can be prosperous as a consequence of these changes, whether that is through green jobs in the UK, or ensuring that instead of spending lots of money on having to adapt, mitigate or deal with crises in different parts of the world, we build such measures into our systematic way of growing globally in terms of our prosperity. That is why it is so important that the £11.5 billion of international climate finance is still a key part of the Government’s strategy.

My constituency contains a nuclear power station, Sizewell B. It was home to Sizewell A, which is now being decommissioned, and planning consent has been given for Sizewell C. It really matters for our energy supply that we have a mix. There is also a lot of offshore wind in the southern North sea. The impact on the onshore infrastructure required to bring that into our network is a source of much concern in Suffolk, and I know that my right hon. Friend the Minister is well aware of that. I will not dwell on that—I intend to bring it up another time—but to take the national and global position, we need to work out how we will make that transition fair, thinking of the impact on communities and on nature. I know that my right hon. Friend is wise about those matters.

The shadow Minister referred to the greenhouse gases inventory. I agree that we should look to bring saltmarsh, woodlands and so on into the inventory. I am delighted that DEFRA’s chief scientific adviser, Dr Gideon Henderson, is undertaking that work. I wish him well and hope he will be able to work at pace. I will shortly talk about mangroves—my favourite, they are magic and it would not be a speech from me if I did not talk about them—and we have to recognise that saltmarsh is our equivalent of mangroves. In my time previously in DEFRA and in the past year, I tried but did not quite get there—I really need the Marine Management Organisation to work much more collaboratively with Natural England and the Environment Agency to make it more straightforward to plant saltmarsh. There have been too many complications with licensing in different ways, and it is very frustrating. Like mangroves, saltmarsh is multipurpose. It can sequester carbon, it can be a good flood defence, and it is a brilliant habitat for many of the migratory wading birds that come to our shores. I am very keen that we make good progress on making that happen.

On emissions, I want to thank Robert Caudwell who did a report for DEFRA on lowland peat and the impact of farming and agriculture. I wrote the foreword to the Government’s response earlier this year and welcomed the investment towards tackling the emissions, because it is a significant amount. It is of course important that we have food security, but we also need to tackle emissions from agriculture in a measured way. Wider work on the restoration of peatlands has been a passion of mine for several years.

My right hon. Friend mentioned deforestation, which was one of the key elements of COP26 in the leaders’ pledge, various declarations and the coalition of ambitions. I am known for wanting to make sure we turn ambitions into action, and I know that the House will share that thought. I was, therefore, delighted that we were able to contribute to the Amazon Fund, which will help Brazil in particular. That was announced by the Prime Minister earlier this year. Progress is being made on getting the forest risk commodities legislation ready, and I hope it will be laid before the House before too long. It is important that as we make these changes we do our best to reduce deforestation and our demands through supply chains, and I commend the companies that have already made those changes. There is more to do, and I hope more will be done very shortly.

Nature-based solutions can be symbiotic and provide much more value for money in achieving what we want to achieve. It has not always been the case that actions taken to reduce carbon have been beneficial to the environment. That is not a criticism. The dash for diesel had other impacts, especially with particulate matter 2.5. People did not know at the time, but we should recognise now that the dash for diesel had an impact on other aspects of the environment and it is important that we consider both as we make further changes.

I have a particular passion for mangroves. I tried to brand them “blue forests” to make them a bit more accessible around the world, but they are magical. They are magic because, bang for buck, they are better at carbon sequestration than the Amazon forests. They have been in place for a long time, but they are also under threat, because they make brilliant wood for building homes and boats. I commend countries such as Mozambique that have put in national protections. We should think about how much of the Commonwealth has mangroves, because at the moment they do not get rewarded for the protections they have put in place.

Communities do understand; it is not just about carbon. What is magic about mangroves is that they provide a brilliant place to develop aquaculture. The fishing industries locally can be sustainable because of the opportunities for the growth of fish stock and protection from other predators, just by the nature of the mangroves. They also have an impact on coastal erosion and protection. Haiti in the Caribbean suffered a devastating hurricane some years ago, but, while the areas with mangroves were still damaged, they were the quickest to recover. That is why I am on a mission, and will continue to be so as long as I have breath, to champion mangroves whether in this House or as I regularly did in ministerial meetings around the world.

The magic of mangroves needs to be recognised more, and that is why I was pleased that for COP28 the UAE made a commitment to plant more mangroves. My right hon. Friend the Minister and I went different ways after the G20 in Chennai, and I had the privilege of visiting the second largest mangrove forest in the world at Pichavaram, and it was exceptionally special. I love that the community also recognises how special the forest is and how important it is to protect it. I am conscious that other parts of the world have had a slash and burn approach in the past to generate other aspects of the economy, but now Governments and communities have recognised the importance of stopping deforestation, as my right hon. Friend mentioned.

On the history of climate change, I give credit to the Labour Government who introduced the Climate Act 2008, and we took a generally cross-party approach to it. David Cameron introduced “vote blue, go green” and was really behind the change. The Act legislated for an 80% reduction by 2050, and it was actually my right hon. Friend the Member for Maidenhead (Mrs May), when she was Prime Minister, who made the change to a 100% reduction by law. Those legal targets matter. We should also recognise that it was Boris Johnson who really made a difference at COP26. He brought nature and the world together to make sure that we would keep up the momentum.

There is no doubt in my mind that covid was a bit of a body-check to progress on many environmental matters, but it is important that we keep accelerating, and I wish my right hon. Friend the Minister well at COP28. I know that several Ministers are going, including Lord Benyon from DEFRA and my successor as the Secretary of State. It matters that we are there. We need to bring others with us, but they will not come with us if we just attack what they do.

Just last week, I was in Beijing where I met Minister Huang, the president of the Committee on Biological Diversity that led to the immense global biodiversity framework agreed last December in Montreal. We have to work with China and with other countries—I think in particular of Minister Yadav in India. I was able to explain what I thought was the Prime Minister’s just transition, but we certainly cannot reduce our ambition; we have to work with other countries, and challenge them but bring them along, because it matters that everybody makes their commitment.

It does not matter if the United Kingdom or any other country is the first to reach net zero—what matters is when the last country hits net zero. We need to ensure that as many countries as possible achieve that by 2050, if not before, and I wish my right hon. Friend the Minister well in the negotiations. I know there is ambition in our thinking about some of the different approaches that need to be taken. I hope that he will also be key to the Commonwealth playing its part. At the UN General Assembly, I was delighted to chair the first meeting of Commonwealth Ministers for environment and climate, and there was certainly ambition there. Let us turn that into action. I have great confidence in my right hon. Friend making that happen.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

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[Jim Shannon (Strangford) (DUP)]

It is a pleasure to follow the hon. Member for Putney (Fleur Anderson). She may be disappointed by what she hears from others, but she never disappoints with what she says in this House. We were in Pakistan back in February. We have an interest in issues relating to persecution and freedom of religious belief, and in how we can help through work on human rights. She is experienced and knowledgeable on the subject of water, and we visited some encouraging projects, but we were reminded of the impact in parts of the world where, unlike here, water is a scarce commodity.

I am very happy to speak in the debate, and I cannot believe it is again time for the annual COP meeting. This year it is in Dubai, where I am sure the weather will be much better than in the UK, given the storms we had recently. This year’s cross-cutting themes aim to address our main targets: technology, inclusion, finance and front- line communities.

It is great that we have the opportunity to discuss these issues. It is always a pleasure to provide a Northern Ireland perspective in debates in this Chamber and elsewhere, so that we have a united and joint approach to our climate change and net zero targets. It is also a pleasure to see the Minister in his place. I was encouraged by some of the things he referred to, such as the targets met and the goals achieved. I believe in giving credit to those who do well. At the same time, if targets are not met, then we challenge. Let us put on record our thanks where goals have been achieved. It was also a pleasure to hear from the Labour shadow Minister, the hon. Member for Bristol East (Kerry McCarthy), and the SNP shadow, the hon. Member for Edinburgh North and Leith (Deidre Brock). They made valuable contributions, as others have.

I declare an interest as a member of the Ulster Farmers’ Union, because I will speak about agriculture. Across the world, we have fires, floods, droughts and tsunamis. Those things do not just happen; man and woman have a role to play in the world in which we all live. Nature, I would suggest, is angry. It is nature’s way of reminding us that what we do has repercussions.

To go back to Northern Ireland, it is no secret how crucial our agriculture sector is. I live on a farm. All my neighbours are farmers and most of them are dairy men. Farming is the largest emitting sector in Northern Ireland, contributing some 27% of emissions—and that increased over the 30 years covered by the statistical bulletin to which I refer. The Government, the Ulster Farmers’ Union and the National Farmers Union have committed to reducing those emissions, and it is important that that happens. It is no secret how challenging it is to cut emissions. Large organisations such as the Ulster Farmers’ Union and the NFU have had to cope and adapt in a short space of time, so it is promising to see that COP will address that this year. It is important that that happens.

On 10 December, the theme for the day will be food and agriculture. The aim will be to address innovation investment, regenerative agriculture and national transformation. That is a positive sign that our agricultural industries are being given the means of contributing to climate targets. At the Democratic Unionist party conference about a month ago, the UFU had a stand, and it has a paper on how to achieve net zero targets. Be under no illusion: farmers, landowners, my neighbours and the unions are totally committed to doing their bit to achieve climate targets. There is definitely a clear, central role for farmers.

Many comparisons can be made between the state of our climate and prevailing health issues across the UK and further afield. As my party’s health spokesperson, I am greatly pleased that health issues will also be addressed at COP. It looks like a terrific conference, and there are lots of key issues on the agenda that I would like discussed.

I have been in contact with organisations about the clean air programme, which is tackling the air quality issues facing us all. For the first time at a COP summit, a full day’s agenda has been devoted this year to initiatives designed to

“protect livelihoods and support community resilience and stability”

in the face of the advancing effects of climate change. While some may say that there is no such thing as climate change, the facts—the evidence that we all have in front of us—tell us that there is, and that something must be done about it. There will be high-level discussions about the importance of clean air, which has been proven to lead to improvements in both mental and physical health.

Some three weeks ago, I spoke in a debate about circular economies and their importance in our local communities. Ards and North Down Council, which covers the area in which I both work and reside, has a proven commitment to acting sustainably to create a vibrant and healthy economy. Recognising the contribution that local councils and devolved Administrations can make to net zero targets across the UK is perhaps the smallest but most important step to take in regulating environmental sustainability. The Scottish Parliament, the Welsh Assembly and the Northern Ireland Assembly all have a key role to play. We all play that role in our own places, but when we all come together, it is the teamwork that delivers. Whether we discuss these issues at events as large as COP or more internally back home in local council chambers, we will never progress without having the conversations. It is great, and commendable, that efforts in that regard are being made at all levels of government.

I look forward sincerely to hearing the comments made at COP28, and not only from the perspective of the United Kingdom of Great Britain and Northern Ireland. Again, it is no secret that I love this United Kingdom of Great Britain and Northern Ireland, and I believe that it is better together. Some may have a different opinion—at least one Member who is in the Chamber now, perhaps—but the rest of us are committed to the importance of that. When it comes to looking further afield and globally, the United Kingdom of Scotland, Wales, England and Northern Ireland, as well as all the regions, has a part to play—at all political levels: council, regional, and Westminster. COP provides an opportunity for a joint and united approach to meeting our targets, and that is something that we have to achieve. There are no “ifs” about it; there are no questions. We must ensure that efforts are made in this place to achieve those goals.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Minister to wind up the debate.

Making Britain a Clean Energy Superpower

Baroness Winterton of Doncaster Excerpts

Thursday 9th November 2023 Commons Chamber

[Claire Coutinho]

I am afraid the hon. Lady is quite mistaken. The Climate Change Committee’s own data shows that when we reach net zero in 2050, oil and gas will account for about 25% of our energy mix. That is why it is important to ensure that if we need it, it comes from here.

There are two futures here. One is the future I have just described, where we cut our emissions faster than any other major economy in the world; we drive hundreds of billions of pounds of private investment in wind, nuclear and hydrogen; we support UK industry with carbon capture; we create a world-class export opportunity in our continental shelf; we secure nearly half a million jobs, with our young people renowned globally for their expertise; we bring supply chains and manufacturing capability to our industry heartlands such as the Humber and Teesside; our coastal communities are renewed; and we protect our energy security and support families and businesses with the cost of energy. That is the future for Britain as a clean energy superpower.

There is another future: a bleak world. Imagine it is a grey day; the last private investor has just pulled out of the North sea. Those communities without the jobs to support them have disbanded. The right hon. Member for Doncaster North is explaining yet again why the Labour party has laden the country with debt. His mothballing of British oil and gas is seen as the worst handling of our natural resources since his old boss sold the gold. Norway, with its ongoing oil and gas licences, is forging ahead with its greener future. Meanwhile, jobs in Russia are booming. Our energy security has been jeopardised, as imports from unstable regions rise. That is the future we can expect from a party reliant on Just Stop Oil and Extinction Rebellion for ideas. With an awful predictableness, this parallel world has once again proven the law of British politics: every single Labour Government in the past left unemployment higher.

Of course, that future is not a surprise to anyone. The right hon. Gentleman said, after all, that we should sacrifice economic growth to cut emissions. [Interruption.] He would like to borrow £28 billion in his blind ambition for 2030, no matter the cost to ordinary people. Just three days ago he said that protecting the British oil and gas industry, 200,000 jobs and £50 billion of tax revenue was a stunt. But it is not a stunt to want to keep jobs in the UK, it is not a stunt to want to protect billions of pounds of taxes and investment in this country, and it is certainly not a stunt to prioritise domestic security over the threat of dictators such as Putin.

The British people have rejected the right hon. Gentleman’s arguments before, and they will do so again. I am sure that he will today mention Great British Energy, a new Labour entity about which we know only one thing for sure: it will be run badly, funded by the shadow Chancellor who, when she is not borrowing other people’s words, is recklessly borrowing to fund Labour’s policy and leaving the British people to pick up the bill.

What will GB Energy really look like? Will it be like Labour Nottingham Council’s version, Robin Hood Energy, which collapsed in 2020 leaving local taxpayers with £38 million of debt? Will it be like Labour-run Bristol’s version, Bristol Energy, which also collapsed, leaving local people with losses of £43 million? Or will it be like Labour’s 50% stake in Warrington’s Together Energy—people will get the pattern by this point—which also collapsed, with a £37 million bill this time for local residents to pick up? Not content with bankrupting Birmingham and Croydon or skewering local taxpayers in Nottingham, Bristol and Warrington, Labour now wants to bankrupt Britain. One thing is for sure: when Labour is in charge of your energy you will pay the price.

Energy transitions do not happen very often and now we are on the brink of the most important one of all to reverse centuries of global warming and reach net zero and secure energy resilience by powering Britain from Britain. It is only the Conservatives who have the plans to protect this country’s energy security, to deliver the most ambitious 2030 emission cuts of any major economy, to promote jobs and investment in the UK, and to help this country stand tall on the global stage. We will do that all without forcing families to choose between protecting their family finances and protecting the planet.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

--- Later in debate ---

[Dame Maria Miller]

My hon. Friend makes an important point. When I speak to companies in Canada that are developing lithium mines and looking at mining rare earth metals, we talk about the importance of supporting indigenous people and of proper training. We should be doing business with countries that take the issues around modern slavery, which my hon. Friend raises, very seriously. That will be taken into account as we continue to negotiate our free trade agreement with Canada.

My right hon. Friend the Secretary of State also mentioned skilled personnel associated with oil and gas. I reiterate the point she made in response to an intervention, drawing on my experience of a recent visit to Alberta. In that province, I saw how the skills of oil and gas personnel are already being used to develop renewable energy, whether that is expertise in pipelines, hydrogen— as mentioned by the hon. Member for Strangford (Jim Shannon)—chemicals, engineering or other forms of innovation. There are transferable skills and the Government need to urgently ensure we are not losing those skills to other countries; we must keep that expertise at home. We have made huge progress in greening our energy supplies but there is more to do. I hope that my right hon. Friend the Secretary of State can ensure that we do not lose that expertise to other countries.

At the heart of the King’s Speech is resetting the dial for our country in the light of three enormous economic shocks. The new Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill has enormous potential to expand both our import and export markets, making sure that communities such as mine in Basingstoke continue to have vibrant businesses into the future.

Within the Gracious Speech, I also welcome the leasehold and freehold Bill and the continuation of the Renters (Reform) Bill. In my constituency, almost two thirds of households are owned as opposed to rented, but it is important that those who are in leasehold flats or renting in other ways have better protection. The Government’s commitment to reform the rules around leaseholds, while not entirely in line with clean energy, is an important part of the Bill, as it will make it easier and cheaper for people to extend their leases and stay in the homes they love. That is important for my community and many others across the country.

My constituency of Basingstoke has seen historical overdevelopment, often at the hands of a Labour Government who put in place unrealistic housing targets. I have seen my community respond positively, but we have contributed our fair share. Will the Minister therefore confirm when the new national planning policy framework guidelines will be published? I think they are coming out soon. They will help communities like mine, including by better recognising the overdevelopment of the past, so I hope the Minister can give us a brief update on those guidelines. I know it is not just me on these green Benches who is interested in the timing.

In the Gracious Speech, we also heard the Government’s commitment to the NHS and to seeing an NHS at its very best. I was proud to receive notice from the Government that an incredible £900 million has been ringfenced by the Treasury for a new hospital in my constituency. In the spirit of hoping that these things are above politics, I hope that those on the Opposition Benches can get behind projects like that, which are in the interest of the whole community, and that they do not become political footballs. A new hospital of that magnitude—an exemplar—will be important not just for my constituents, but for many hundreds and thousands of people around the south-east. I hope the Government are able to continue to put out positive messages about their hospital programme.

Finally, the criminal justice Bill mentioned in the Gracious Speech will touch on an issue I have raised many times in this Chamber—intimate image abuse. I was delighted to see that the Bill will include intimate image abuse legislation, building on the legislation that has already been passed as a result of a great deal of good thought by Ministers in the Online Safety Act 2023. I am particularly grateful to my right hon. Friend the Member for Charnwood (Edward Argar) for championing the inclusion of more work on intimate image abuse.

In the Online Safety Act 2023, we criminalised the sharing of intimate images without consent. Now we need the rest of the Law Commission’s recommendations —that the making and taking of such images also be criminalised—to be enacted, and the Bill will give us the opportunity to do that. I am not sure that the Minister will be in a position to confirm the details of the Bill today, but if she knows anything about its timing, I would be most grateful to hear that.

I am grateful for the opportunity to take part in the debate. There are many Bills in the Gracious Speech that will make a real difference to the people I represent and to people across the country. I hope that talk of it not having content will be seen as it is—political rhetoric. There is a great deal in the King’s Speech that will make a real difference to people’s lives. I look forward to debating the Bills in the coming weeks and months, and to making sure that they are as good as they can be.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. There is not massive pressure on time, but as colleagues can see, a number of colleagues wish to get in. My advice would be that were everybody to speak for no longer than 12 minutes, everybody would get in and have sufficient time. If people go on for too long, it puts pressure on others.

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.

--- Later in debate ---

[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.

--- Later in debate ---

[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?

--- Later in debate ---

[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.

Energy Bill [Lords]

Baroness Winterton of Doncaster Excerpts

Report stage
Tuesday 5th September 2023 Commons Chamber

Consideration of Bill, as amended in the Public Bill Committee

[Madam Deputy Speaker (Dame Rosie Winterton)]

I will call the Minister in a second to move the new clause, but I take this opportunity to remind colleagues that many Members have put down to speak in this debate, and it will last until 7 o’clock, including Third Reading. There is quite a lot of pressure, and I hope colleagues will bear that in mind when putting together their speeches.

New Clause 52

Revenue certainty scheme for sustainable aviation fuel producers: consultation and report

“(1) The Secretary of State must carry out a public consultation on the options for designing and implementing a sustainable aviation fuel revenue certainty scheme.

(2) A “sustainable aviation fuel revenue certainty scheme” is a scheme whose purpose is to give producers of sustainable aviation fuel greater certainty than they otherwise would have about the revenue that they will earn from sustainable aviation fuel that they produce.

(3) The Secretary of State must open the consultation within the period of 6 months beginning with the day on which this Act is passed.

(4) The Secretary of State must bring the consultation to the attention of, in particular, such of each of the following as the Secretary of State considers appropriate—

(a) producers of sustainable aviation fuel;

(b) suppliers of sustainable aviation fuel;

(c) airlines.

(5) The Secretary of State must, within the period of 18 months beginning with the day on which this Act is passed, lay before Parliament a report on progress made towards the development of a sustainable aviation fuel revenue certainty scheme.

(6) In this section, “sustainable aviation fuel” means aviation turbine fuel whose use (as compared with the use of other aviation turbine fuel) will, in the opinion of the Secretary of State, contribute to a reduction in emissions of greenhouse gases; and for this purpose—

“aviation turbine fuel” has the meaning given by article 3(1B) of the Renewable Transport Fuel Obligations Order 2007 (S.I. 2007/3072);

“greenhouse gas” has the meaning given by section 92(1) of the Climate Change Act 2008.”—(Andrew Bowie.)

This new clause, intended to be inserted after clause 156, requires the government to consult on options for setting up a revenue certainty scheme for sustainable aviation fuel producers, and to publish a report about progress towards developing such a scheme.

Brought up, and read the First time.

--- Later in debate ---

[Angus Brendan MacNeil]

I am grateful to the very polite Minister, as was said by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). I am sure the Minister is aware that heat pumps will produce about 2.5 times the energy of the electricity put into them, or four times for ground source heat pumps—they are multipliers of the power put into them. The Government have a plan for 600,000 to be installed by 2028. Will we see those? How many will we see next year? Does he have intervening targets for that? At the moment, they are at only a 10th of where the target would have them.

Secondly, a point asked in my constituency is about the new £10 million community energy fund, which relates only to England, despite energy being reserved. Will he enlighten Euan Scott, my constituent, please?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. There is so much pressure on time, so it is really important that interventions are short.

[Andrew Bowie]

On the hon. Member’s first point, absolutely, we remain committed to delivering, developing and rolling out heat pumps across the country, and we remain committed to the targets we have set out. On the community energy fund, there is already an equivalent Scottish community energy fund up and running and delivering for communities across Scotland. That is a competency of the Scottish Government at Holyrood. I would be delighted to direct any questions that he or his constituent have on that to the Scottish Government in Edinburgh. [Interruption.] He makes the case from a sedentary position that energy is reserved. Yes, but the Scottish Government have their own community energy fund. We will base a lot of what we are doing on that fund as it is rolled out in Scotland.

With your leave, Madam Deputy Speaker, I will take some time to explain the not insubstantial number of Government amendments to the House. I turn first to Government amendment 148 and the subsequent consequential amendments. I think it is fair to say that considerable concern was raised about the initial proposals for a hydrogen levy. The Government have carefully considered those concerns. I particularly thank my hon. Friend the Member for South Thanet (Craig Mackinlay) for his amendments on the issue, and indeed the right hon. Member for Doncaster North (Edward Miliband) for his amendments relating to those clauses. It is right that we take these considerations seriously and, where appropriate, seek to make changes.

Energy Infrastructure

Baroness Winterton of Doncaster Excerpts

Wednesday 5th July 2023 Commons Chamber

(3) the sum authorised for issue out of the Consolidated Fund be reduced by £3,200,982,000.—(Andrew Bowie.)

[Madam Deputy Speaker (Dame Rosie Winterton)]

The debate will be opened by the Chair of the Select Committee on Welsh Affairs.

--- Later in debate ---

[Stephen Crabb]

I do agree, yes. I made the point earlier that, with fixed-bottom offshore wind, we perhaps missed some opportunities for getting investment in local supply chains, but that is changing too. I recognise that, on the east coast of England, there are some exciting investment plans and jobs being created by large-scale developers. We want that and more for this new industry of floating offshore wind that we hope to see in the Celtic sea. I know that floating offshore wind will also be important in Scotland.

I have two more concerns to flag up, Madam Deputy Speaker, and then I promise to wrap up. One is about skills. It is difficult to find a skilled welder in south Wales at the moment, because so many of them are working on the enormous project at Hinkley Point. I read the other day that around one third of all the currently qualified welders in the country are due to retire by, I think, 2028. There is an enormous need for greater investment in apprenticeships and those technical skills that we will rely on if we are to see anything like the transformation in our energy infrastructure that we are talking about this afternoon. It will require steel fixers, welders, pipe fitters, brickies and carpenters and all those trades, which have been devalued by the political class—all of us here—in the past 20 or 30 years, and we need to see that turned around and jobs being properly rewarded.

The final point is about planning consent. If we are to see the scale of investment that is required—whether in grid capacity, the deployment of turbines, offshore or onshore, or any other aspect of this renewal of energy infrastructure—we will need to see quick, timely approvals and for those approvals to be done properly by planning authorities. I do not see many planning authorities with the skills and resources required to be able to handle the volume and the technical detail of the kind of applications that will be forthcoming. There is a real need for the Government, and for us in Wales—it is the primary responsibility of the Welsh Government—to think about how we resource planning authorities for the future.

In conclusion, I thank the Backbench Business Committee for the opportunity to bring forward this debate. It is an exciting and challenging time for energy infrastructure across the UK. We see many reasons to be optimistic, while also recognising the scale of the challenges ahead. However, if we are to succeed in this, it will not be by marching on to the streets and stopping traffic, or by retreating off grid and living in some rewilded seclusion; we will do it through good science and good engineering, and with good policy and ambitious leadership from Government, which I hope is where the Minister comes in.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Energy Security and Net Zero Committee—[Interruption.]

--- Later in debate ---

[Angus Brendan MacNeil]

The hon. Lady says from a sedentary position that there is not perfection either. This is the space of politics and debate, but there has been an awful lot of learning, with many august committees and people who have been experts in this area for a number of years saying some fairly robust things. I hope the Government will take that on board and react to it so that the next report is less robust and more positive.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. A little reminder to Members that if they intervene on another Member, it is courteous to stay until the end of their speech. Sometimes people have to be reminded of that.

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[Lia Nici (Great Grimsby) (Con)]

It is a great honour to follow my hon. Friend the Member for Stroud (Siobhan Baillie). Who knew about radiator sludge? It is a case in point. One of the privileges of being a Member of Parliament is that we learn things we never would have thought we would learn—we have conversations about things we never would have thought we would have conversations about—when we came to this place.

My reason for standing up to speak and support what the Government are doing on energy and energy bills is that the Humber region is known as the energy estuary. The Humber and northern Lincolnshire power much of the country through electricity power, refineries and food, so we are a vital area for energy. In my constituency in particular, we have so many people working in refineries. If you have a certain brand of mobile phone, you will have a bit of the Grimsby and Cleethorpes constituencies in your phone, because we have a refinery that produces the bit of coke that goes into many mobile phones. It is one of those strange innovations that we all take for granted and do not realise are made in the UK.

We have not only refineries and power stations, but the biggest offshore wind farm base, off the constituency of Grimsby. We also have the largest operations and maintenance hub on the globe, based in Grimsby, on the docks. It is a huge industry that is still growing. We need more people in the UK and in my constituency to understand how important it is for the future. We are also innovating with green hydrogen. For those who do not know what that is, it is produced by totally renewable ways of working. Those innovations will enable us to power ahead and ensure that we can reduce our carbon emissions.

The Humber region—and specifically the south Humber region—is the biggest emitter of industrial carbon dioxide in the UK, and that is because of the industries that we have there. It is vital for us to ensure that carbon capture, utilisation and storage, which was the subject of a conversation I had with the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) earlier in the debate, is pushed forward. I thank the Secretary of State for meeting me last week, along with my hon. Friend the Member for Cleethorpes (Martin Vickers), to give an update on exactly where we are.

We have two bids in the Humber and northern Lincolnshire region. As the hon. Member for Kingston upon Hull West and Hessle mentioned, carbon capture, utilisation and storage needs to happen very quickly in the Humber in particular, because without it we will not reach the UK’s net zero targets. It emerged from our very positive meeting with the Secretary of State and his officials that the track 1 extension for CCUS will be updated and announced later this year. Track 2 has already been announced, but there will be an update by September, and allocations will take place by quarter 4.

I work with the industries on a regular basis, along with colleagues, and I have been working with the net zero Humber team and the Project Viking team every fortnight to discuss exactly where we are and where things are happening. I am very happy with the way in which the Government are moving forward with renewable energy and with carbon capture, utilisation and storage. We are working together very well, and it has been a very positive experience. I thank Ministers and officials for the hard work that they are doing, which I know will continue to ensure that the UK is a powerhouse for energy and, in particular, all forms of renewable energy.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Scottish National party spokesperson, I must emphasise again how important it is for those who have contributed to the debate to be here for the winding-up speeches.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I am sure you do not need to remind people to come and listen to me starting the wind-ups, Madam Deputy Speaker.

I commend the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), the Chair of the Welsh Affairs Committee, for opening the debate. The fact that 13 Back-Bench Members followed him shows what an important subject he picked. This is clearly the best subscribed of the estimates day debates.

For the most part, there has been consensus today. Everyone seems to understand the rate of deployment of renewable energy that we need, the number of grid upgrades required, the need to improve consent processes, the opportunities to create new green-based jobs, and the importance of training people in the right skills and of efficient workforce planning. That ties in with the just transition as well. There was also broad agreement on the benefits of floating offshore wind, and cross-party agreement about the importance of carbon capture and storage at Humber and Tayside. I shall say something about Acorn later. Four speakers were in favour of new nuclear energy, so there is a kind of consensus there, although I will shatter that consensus shortly. With one honourable exception, everyone also seems to agree that we need to get on with delivering net zero.

Let me begin by raising a point that no one else raised: post-Brexit trading arrangements for energy. Energy UK has estimated that they are adding £1 billion a year to our bills—£1 billion that could be spent better elsewhere. It could, for example, upgrade 100,000 homes a year to an energy performance certificate C rating, or it could just be taken off our bills, given the cost of living crisis. I want to know what the Government are doing to improve the energy trading arrangements to remove this £1 billion surcharge from our bills.

I said a moment ago that I would break the consensus on new nuclear energy. Although there is clear cross-party support from Labour and the Tories, we in the SNP remain opposed to it. Nuclear is the only energy technology that has become more expensive rather than cheaper over the years. On an estimates day, it is worth noting that the estimate of the cost of nuclear decommissioning has risen by a staggering £130 billion. Why do we want to build more new nuclear and increase the nuclear waste legacy? This would also require the construction of a new nuclear geodisposal site. So nuclear is expensive, and it is not the way forward. No successful European pressurised reactor project has yet been built anywhere in the world. Hinkley Point C is years behind schedule, and the costs have increased to £33 billion. I therefore do not understand the rush to enter into a new agreement to build another nuclear power station at Sizewell C, which will clearly cost between £35 billion and £40 billion—money which, again, could be much better spent elsewhere.

The strike rate for Hinkley is £92.50 per MWh, as opposed to £40 per MWh for offshore wind, but the renewable energy contracts for offshore wind are only for a 15-year period, whereas the Hinkley contract is for 35 years. The Government want to enter into a 60-year contract for Sizewell C. This is collective madness. There are also hidden subsidies. If EDF connects with the grid and starts generating electricity, it will be paid for doing so—let alone the strike rate. Scottish renewable energy projects, meanwhile, pay the highest grid connection fees in Europe. How is that equitable? There is another hidden subsidy for EDF. The strike rate of £92.50 was supposed to be reduced by £3 per MWh if the Government entered into a contract with Sizewell C, but the Government is now dropping that contract. I should like to know why they are giving that hidden subsidy to EDF, and why they are not holding it to reducing the strike rate.

The fact is that we do not need big new nuclear projects. We have heard talk of the need for nuclear when the sun does not shine and the wind does not blow, but nuclear is not always there when we need it either. Over a 10-year period, each nuclear reactor is offline for nearly 25% of the year. Even the reactors at Sizewell B, the newest nuclear station in the existing fleet, are offline for between 15% and 20% of the year. Nuclear is not the reliable baseload that we keep being told it is, and that is why we need to look at other technologies, such as pumped storage hydro and storage in general.

Another aspect of nuclear that we have heard about today is small modular reactors. As I said in an intervention, that is a future technology, although people keep talking about it as if it were already here. There is no approved regulated design for a small modular reactor yet, and if Rolls-Royce sticks to the assessment that has been made, it is not due to be completed until September next year. How can the Government launch a competition to pick a small modular reactor when there is not even a design that complies with UK regulations? That makes no sense.

The talk of small modular reactors makes them sound like small compact units. The capacity of Rolls-Royce’s small modular reactor will be 475 MW, which is nearly 50% higher than the international definition. Moreover, it will be the size of two football pitches, which is not exactly small in my book. As for the cost, it is estimated to be between £1.5 billion and £2 billion per reactor. The kicker is that Rolls-Royce wants its own contract to supply between 12 and 15 small modular reactors. What it is actually asking for is an order worth between £20 billion and £30 billion in up-front capital costs. Again, that is money that could be much better elsewhere, and there are existing technologies that could be deployed much more quickly.

That could include pumped storage hydro. I keep returning to this point, but SSE’s Coire Glas scheme in the highlands has all the consents in place. It is spending £100 million just now on up-front design works. That project could be delivered by 2031. With £1.5 billion of private capital investment, there is no Government capital subsidy needed; all that is needed is a revenue guarantee and a cap and floor mechanism. The Secretary of State said yesterday that he has been in talks with SSE, but he has not been in proper talks with SSE about developing a cap and floor mechanism. We want the Minister to take that point away today. Please will the Government listen? Up to 7 GW of pumped storage hydro could be deployed in Scotland—dispatchable energy that will be there when the wind is not blowing. It would utilise spare excess energy, taking it when it is cheaper and dispatching it when there is a need, so it is the perfect complement to renewable energy.

On carbon capture, we really need definitive timescales for track 2 clusters. As was said earlier, investors are getting nervous about the timelines. Yesterday, the Secretary of State was talking about confirming track 2 this year, whereas in the Energy Bill Committee recently, the Minister said that there would be an update this summer. We need certainty. We need to get Acorn up and running and give it the backing it needs. Acorn does not need a pipeline, and it is strategically important because it can import carbon dioxide from other clusters in the UK and store it. It should be a UK strategic site, so we really need to get it up and running.

Finally on technologies, I want to talk about tidal stream. Concerns have been raised about strike rates for AR5 with respect to wider renewables. The same pressures apply to tidal stream. We need to look at the strike rates that it is expected to achieve. We need to find the pathway to allow it to scale up. Ringfencing the pot for AR5 was welcome, but frankly £10 million is not enough. We need to be willing to commit more to support tidal stream in future.

This has been a good debate, as I say. Everybody bar one agrees about the need to hit net zero, and I think we can all see the opportunities for job creation. Going forward, we need to grab those opportunities.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

Heating Rural Homes

Baroness Winterton of Doncaster Excerpts

Tuesday 13th June 2023 Commons Chamber

[Greg Smith]

rose—

[Madam Deputy Speaker (Dame Rosie Winterton)]

I think the Minister had finished. I am sure the hon. Gentleman will have a quick chat with the Minister afterwards—I can feel it.

Question put and agreed to.