Electricity Market Reform
Debate between Simon Hughes and Chris Huhne
Simon Hughes (Bermondsey and Old Southwark) (LD)
The introduction of emissions performance standards is a welcome new policy, but may I ask the predictable follow-up question? Will the Secretary of State confirm that coalition Government policy says that nuclear power stations will be built only if there is no public subsidy, which means no greater subsidy for them, irrespective of subsidies that are given to other parts of the energy industry?
Chris Huhne
I have made it absolutely clear that there is no public subsidy for nuclear. Let me explain exactly what we are saying. At the moment, we have the EU emissions trading scheme, which is designed to encourage low-carbon forms of activity and to discourage high-carbon forms of activity. I do not regard that as a subsidy to nuclear. I do not regard the carbon price floor, which exists to support the EU emissions trading scheme, as a subsidy to nuclear—I do not regard a price guarantee that is designed to get certainty for low-carbon generation as a subsidy to nuclear. There will be no extra subsidy for nuclear.
The only justification for giving a subsidy to a technology when it is out there in the market is if it is an early-stage, pioneer technology, such as wave or offshore wind, that has not reached full commercialisation. Otherwise, there should be a low-carbon, level playing field right across the board to discourage carbon emissions and to encourage low-carbon activity.
Energy and Environment, Food and Rural Affairs
Debate between Simon Hughes and Chris Huhne(14 years, 6 months ago)
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Chris Huhne
If I may make a little progress first, I will happily give way again.
It is because of the urgent need to deal with climate change that we are committed to making this Government the greenest ever by taking that urgently needed action at home and abroad. This is not merely an aspiration; it is essential. The actions of this Government in this Parliament will define our ability to combat climate change in the decades to come. That is why, in the first week of the new Government, the Prime Minister announced that Departments would reduce their carbon emissions by 10% in the next 12 months—an early indication of our intention to take real action rather than merely setting meaningless targets.
Chris Huhne
I am always pleased to hear questions from the hon. Gentleman, because he is a neighbour in Hampshire and has followed this agenda closely, with great passion and commitment, for many years. The issues that he raises are key. He will note that the coalition Government agreement contains a firm commitment to feed-in tariffs, and we will take that forward. Renewable heat is an important issue and we want to ensure that we make progress on that. The Department will have to come up with the exact ways in which we do that, but this is a crucial part of the whole package. Broadly speaking, a quarter of our carbon emissions come from our housing stock, much of which will still be there in 2050; people will still be living in it. Given that, what we are trying to do, particularly with the green deal, is move to a situation where we can retrofit that stock with insulating measures that will make a dramatic difference. Our Bill is designed to do that, and I very much look forward to working with people from across the House, including those on the Opposition Benches, whose substantial commitment to this agenda over many years I recognise, to make this a really effective, long-term piece of legislation. We want it to be something that we can all take pride in, that will be on the statute book for many years and that will stand the test of time.
Simon Hughes
My right hon. Friend knows that I warmly welcome him, with his fantastic commitment over many years to the green agenda, to his post, as well as the greenness of this Government. Given that our party had the most ambitious programme, with a 10-year programme for home insulation across the country, and that the commitment is continued in outline in the coalition Government agreement, will he assure us that as he and colleagues across Government work out how that can be delivered, they will be as ambitious as possible, not just for five years but over 10, and that every home that it is technically possible to convert will be able to have that programme met most generously from reduced fuel bills? It would make the most fantastic transformation for real people in their homes.
Chris Huhne
My hon. Friend has stated precisely what the objective of this key centrepiece of the legislation will be. It is essential that we deal with the issue and leave a legacy that will stand the test of time and will genuinely modernise all our old housing stock, including the pre-first world war housing stock. There are a lot of problems, such as solid wall insulation, of which we are all aware, and such measures can make a dramatic difference to our ability to meet our climate change targets. Indeed, we are all committed in the Climate Change Act 2008, which was taken through the House by the right hon. Member for Doncaster North, to a very dramatic cut in carbon emissions. We have to accept the logical consequences of that commitment, one of which will be measures across the economy to decarbonise the economy and to save energy. I agree with the emphasis put on this subject by my hon. Friend.
As well as reducing carbon emissions and helping to reduce energy bills, the investment in energy efficiency will support our green recovery. It will create more green jobs in the building industry as we convert our old housing stock to state-of-the-art standards. It will help industry grow and build a thriving green economy for the UK, as well as help to close our energy gap in the most efficient way possible by saving energy that we waste.
We are also committed to using our Bill to put in place the building blocks for our low-carbon future. The economy of the future is likely to be powered by electricity and we need to be able to generate enough electricity to meet future needs from low and zero-carbon sources. We are still working on the detail and identifying where legislation is required, but these measures might include the reform of our energy markets to meet the challenges ahead in delivering security of supply and the transition to a low-carbon economy, including the introduction of an emissions performance standard to regulate emissions from coal-fired power stations.