Climate Change
Steve Race Excerpts(1 month ago)
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Steve Race (Exeter) (Lab)
I welcome the draft order and regulations laid before the House. The timing for this debate obviously could not be more apt; not only is it currently London Climate Action Week, with Exeter Climate Forum taking place next week, but here in the UK and across Europe we are currently experiencing extreme temperatures. Frankly, this is not normal. The science of this is settled; what we ought to be doing, and what we must continue to do, is limiting climate change, mitigating its impact and continuing to grow the economy.
This Labour Government are delivering world-leading climate action, driving jobs, growth and investment in every corner of the UK. Setting the target in this seventh climate budget is the goal, but the means by which we meet that target is what we will be judged on by future generations. If we are to meet the targets set out today, as well as our nearer-term 2030 commitments, we must now turn our attention to the acceleration of delivery at pace and at scale. Central to that effort is a new and enabling approach to climate technology.
Just this morning, I spoke at the Startup Coalition and British Business Bank’s energy innovation event with climate tech founders, investors and policymakers representing more than £10 billion-worth of scale-ups. We are fortunate to be home to firms at the forefront of energy innovation, not just in Europe but the world over. I am proud to say that the south-west is already leading the way. My home city of Exeter is home to the Met Office and the University of Exeter, both of which are pioneering in weather forecasting, ocean science, climate modelling, conservation and climate tech. Of the top 21 climate scientists in the world, five are based in the UK, and all of them are based in Exeter. The wider south-west economy already contributes £1.5 billion to our net zero economy, and the firms that make up this economy are at the cutting edge, from small modular nuclear reactors and tidal energy systems to low-carbon construction methods and sustainable food technologies.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
While my hon. Friend is talking about energy in the south-west, I wanted to point out what is going on in Cornwall, with floating offshore wind in the Celtic sea. This green economy could bring huge numbers of jobs, as well as skills, down to places like Cornwall and the south-west, which have really struggled on that front in the past.
Steve Race
I absolutely agree; the Celtic sea has massive potential for the reindustrialisation of our peninsula as well. In Hull, my home town, wind power has provided a huge number of new jobs in lieu of others that were there in the past.
I want to talk about our innovators, who are too often held back by a system that is not keeping pace with the urgency of the challenges we face. Time and again, climate tech companies tell us that regulation is the single biggest barrier to scaling and deploying tech—not access to capital or talent, though those matter, but regulation. One founder I spoke to this morning said that he is deploying his tech in Estonia, Morocco and elsewhere, and that it was easier to do so in those countries than in the UK, despite his not speaking a word of Estonian or Arabic.
Our regulatory framework is, at times, more focused on managing legacy risks than delivering future solutions. If we are serious about delivering on this carbon budget, we must fundamentally change how the system works. Regulation should not simply be a system to police compliance; it should reward carbon reduction and enable innovation. That means embedding climate innovation outcomes into the mandates of our key regulators—Ofgem, the Environment Agency, the Office for Nuclear Regulation and others—and ensuring that they have the flexibility and tools to adapt in real time.
The Planning and Infrastructure Act 2025 was a welcome step, introducing statutory timelines and embedding net zero into the decision making, but on the ground progress is still too slow. Developers still face years of delay and inconsistent decisions across local authorities. If we are to meet the scale and pace required by carbon budget 7, we must go further. We should look at a national net zero test for planning decisions that provides consistency and clarity. We should also have a climate fast-track for essential infrastructure such as electric vehicle charging, solar power and battery storage. That could help to unlock projects that are critical to reducing emissions and lowering costs for consumers.
We must also address bottlenecks in emerging sectors such as nuclear. Small modular reactors can play a vital role in our clean energy mix, but the current licensing timelines, stretching to over a decade, are incompatible with the urgency of the challenges we face. By embracing digital licensing, fast-tracked siting, and regulatory sandboxes, we can significantly accelerate deployment while maintaining the highest of safety standards.
Encouragingly, we have already seen that that is possible. The creation of the Regulatory Innovation Office was a bold, forward-thinking step. Its sandbox approach is now helping regulators and innovators work in new ways, testing, adapting and accelerating solutions in real time. Feedback suggests that not only is this model effective, but it has been transformational. If it continues to prove successful—and I believe that it will—we should expand this approach across more sectors, embedding carbon reduction at its core.
The Government have set the destination, and this carbon budget provides a credible and vital milestone along that journey, but to reach it we must ensure that our regulation keeps pace with our best and brightest. Our climate tech companies can get us there, but only if we help them to help us.
Oral Answers to Questions
Steve Race Excerpts(1 year, 8 months ago)
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Kerry McCarthy
I agree that it is now more important than ever that the UK shows global leadership, and that is exactly what the Prime Minister, the Foreign Secretary and the Energy Secretary are doing with their presence at COP today—I will be heading out there tomorrow. I am very keen to work with the hon. Lady cross-party on these issues. Working with young people is very important as well.
Steve Race (Exeter) (Lab)
Kerry McCarthy
As I have said, showing domestic leadership gives us the credibility to show international leadership too. We will be doing both.
Oral Answers to Questions
Steve Race Excerpts(1 year, 9 months ago)
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Ed Miliband
I will not comment on the Budget, obviously. We are very sympathetic to pumpwatch—it is important that there is a fair deal for consumers at the pump.
Steve Race (Exeter) (Lab)
Exeter city council has worked hard to install solar panels on council homes to ensure that social tenants can benefit from lower bills and participate in the green transition. Can the Minister set out what more we can do to ensure that all tenants benefit from new green technologies?
Ed Miliband
My hon. Friend raises such an important issue. Across the House, we can have different views on ground-mounted solar, but we need to do more on rooftops and to ensure that tenants, for example council tenants, benefit from such technologies. That is a huge priority for us and we are working on it with colleagues in the Ministry of Housing, Communities and Local Government.