COP28
Baroness Winterton of Doncaster Excerpts(1 year, 7 months ago)
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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.
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(1 year, 8 months ago)
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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.
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.
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(1 year, 8 months ago)
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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.
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.
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?
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 ExcerptsTuesday 5th September 2023
(1 year, 10 months ago)
Commons ChamberRead Full debate Energy Act 2023 View all Energy Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 5 September 2023 - (5 Sep 2023)
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.
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(2 years ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
The debate will be opened by the Chair of the Select Committee on Welsh Affairs.
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.]
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.
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.
Heating Rural Homes
Baroness Winterton of Doncaster Excerpts(2 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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.
Energy Bill [Lords]
Baroness Winterton of Doncaster ExcerptsTuesday 9th May 2023
(2 years, 2 months ago)
Commons ChamberRead Full debate Energy Act 2023 View all Energy Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 86-II Second marshalled list for Report - (13 Apr 2023)
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I am grateful to the Secretary of State for giving way. This goes back—I was standing up a few minutes ago—to the question from the hon. Member for Central Suffolk and North Ipswich (Dr Poulter) and it is on energy efficiency. I have 14,000 households in Oldham that are fuel poor. They have seen their gas bills double, their electricity is up nearly two thirds, and some of them have said to me, “Why are we going through this, and when can we have our houses made more efficient so we’re not having to spend so much on this?” Why could that not be funded by a windfall tax on energy producers, given that, for example, BP said last week that it is making £60 million a day in profits? [Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Just a little reminder that, if colleagues intervene on the Secretary of State, it is customary for them to stay until the end of his speech.
Grant Shapps
Thank you, Madam Deputy Speaker. This does go back a little way, so it is worth reminding the House that we have gone from 14% of homes being A to C—energy secure, essentially—to 47%. Energy company obligation plans were put in place and plans 1, 2, 3 and 4—[Interruption.] The shadow Secretary of State is chuntering along, saying they are not going very well, but I have just explained that nearly half of homes have now been greened up. Primarily, it is social homes that have been taken to that level, so I am very interested and concerned to understand why her own local authority has yet to follow some of those plans, and I look forward to its getting on with the job with all the money being made available to do that. She is absolutely right—I actually agree with her—about the energy producers. That is why we have taxed them at a punitive 75%, and we have handed those billions of pounds to her constituents and businesses, paying roughly half of the typical energy bill in this country.
In addition to the measures already contained in the Bill, we will go even further. Following on from the “Powering up Britain” plan, we will table four sets of amendments to achieve these goals. First, we will amend the Bill to provide Great British Nuclear, a new flagship body, with the power to enable nuclear projects and support the UK’s nuclear industry with a specific role to support Government in rebuilding our civil nuclear industry. I am delighted that my hon. Friend the Member for West Aberdeenshire and Kincardine is our country’s first Minister for nuclear in relation to that plan.
Several hon. Members rose—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. The Secretary of State was generous with his time in taking interventions, not least from Members who wish to catch my eye in the debate. I warn that there will be a time limit, which is likely to be five minutes or less, depending on the other opening speeches. If any Member feels that they may not have notified the Speaker’s Office that they wish to speak, they should let me know, as that will also affect the timings.
I call the shadow Secretary of State.