COP28

Steven Bonnar Excerpts

Thursday 14th December 2023 Commons Chamber

[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?

[Graham Stuart]

The hon. Gentleman is right to highlight the success of the loss and damage fund being operation-alised, but also to highlight the fact that it does not match the need for the quantum of finance. He asked me how we will be working on that. We have been delighted to contribute £60 million, of which £40 million will be going directly into the fund to help get it going. However, if we are to get it to the scale we require, it is going to need more than donor finance, which is why we have explored, and will continue to explore, options for innovative financial flows. So much of the change we have made there, even if there was an opportunity for increased debt, would not be debt financeable anyway, and that is why, as he said, we must make sure that those who are most vulnerable are rightly dealt with.

The hon. Gentleman mentioned the increase in production from oil and gas in the North sea. We are not seeing an increase in production; we are actually seeing production expected to fall at 7% a year. It is falling faster than is required globally. The IEA says that countries should be looking for a 3% to 4% reduction, and we will be reducing at 7%. As he knows, the UK has cut its emissions more than any other major economy on earth, has the most ambitious plans of any major economy to 2030 and, I believe, is the only one to have put into law a 77% reduction in the mid-2030s.

It is in that context, as we lead the world in reducing demand for oil and gas, that, none the less, our dependence on imports will grow. So it makes no sense whatsoever to see Scottish workers thrown out of their jobs in oil and gas, while we simply bring in imports from abroad with higher emissions, and lose the very subsea and engineering capabilities that we need for floating offshore wind, carbon capture and hydrogen. There is a complete disconnect in this crazy opposition to the maintenance of an already declining industry, which is fundamental to delivering the energy transition. Even if I have little hope for the right hon. Member for Doncaster North, who has always managed to have inconsistent and incoherent thoughts in his head all at the same time, I am hoping that perhaps the Scottish nationalist party can come to its senses and support Scottish workers and the energy transition.

COP28

Steven Bonnar Excerpts

Wednesday 29th November 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

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

The UK Government’s series of U-turns on net zero targets has put our ability to meet them at risk. The Scottish Government are committed to meeting our more ambitious targets, but Europe and the United States are leading the way as this place lags behind, in turn holding Scotland back. Can the Minister confirm whether the new Foreign Secretary, who famously decided to “cut the green crap”, will be attending COP26? That move cost UK households £2.5 billion in extra energy costs.

[Amanda Solloway]

I reassure the hon. Gentleman that we are committed to ensuring we hit all those targets. As of September 2022, more than 130 countries, accounting for around 85% of global emissions and more than 90% of global GDP, were covered by net zero commitments. We are committed to making sure that we hit those targets, and that is demonstrated by our attendance at COP28 and the measures we are taking to ensure we meet the climate challenges.

Contracts for Difference Scheme

Steven Bonnar Excerpts

Thursday 19th October 2023 Westminster Hall

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

It is always a pleasure to see you in the Chair, Dame Angela. I should say at the outset that I am here as a substitute for our energy spokesperson, my hon. Friend the Member for Angus (Dave Doogan). Members from all parties will be aware of the Met Office red warning for weather, the centre of which will be over Angus today. I know that all hon. Members will wish the people of Angus well over the coming days of extreme weather.

I rise to speak in this debate in the wake of the disastrous fifth round of contract for difference allocations. It was a tragedy for the climate, for bill payers and for industry, especially in Scotland, where we face the harshest weather and the highest bills, and where, of course, we lead the renewable transition throughout these islands. I should thank the hon. Member for Strangford (Jim Shannon) for securing the debate. He is without question my favourite Unionist.

In this policy area, as in every other, the Westminster Government are failing to implement effective policy to ensure that climate targets are met and households are protected. Ambitious climate policies are needed to attract and sustain investment, promote innovation and meet our climate commitments—priorities that are clearly now beyond the will, or perhaps the ability, of this Government.

At a time when households across these islands are dealing with soaring energy bills, it is ludicrous that the Westminster Government failed to listen to the warnings of industry ahead of auction round 5. There were clarion calls from industry that the administrative strike price for offshore wind was just not going to cut it. As a result, shovel-ready offshore projects that could have powered 8 million homes are now not being developed.

Generation developers are now begging their supply chain partners not to abandon the United Kingdom market while this Westminster Government pretend that everything is just fine. It is not just fine: it is a calamity. Projects will now not be developed, or will be delayed substantially, that would have saved consumers up to £2 billion a year compared with the cost of the gas generation that will fill the gaps.

The failure to secure any offshore wind projects risks putting Scotland’s energy security and our net zero targets at risk, and prolongs our dependence on fossil fuels. Among the projects that were not secured because of developers being unable to bid because of the unfeasibly low strike price was the super-project at Berwick Bank, which SSE noted

“could play a crucial role in closing the gap between where we are now and where we need to be by 2030.”

This disaster was preventable but the Westminster Government chose to put their head in the sand and hope for the best. They failed, and they did so spectacularly. The overall budget for AR5 was £50 million less than that for AR4. On top of that, the industry leaders warned the Westminster Government to consider

“inflationary costs and supply chain squeeze”

in the auction prices, but the UK Government again chose not to listen.

Offshore wind generates more power per megawatt of installed capacity than any other renewable source, and the UK’s unique wind resource and shallow seas mean it has been the central technology in the plans to end the UK’s reliance on fossil fuels for electricity. Offshore wind remains the UK’s cheapest option for large-scale power, so the slowing of development will leave consumers exposed to volatile global gas markets for longer, and it will cost the country more in the long term.

Despite the benefits that offshore wind production offers in terms of reliability, predictability and value, the funds available for renewable energy projects are being cut, while the Government continue to write blank cheques for nuclear programmes. The change in pot structures, down from three in AR4 to two in AR5, means that offshore wind is now competing with other established technologies for less funding, and it is not as though everything was going well before the crisis in AR5. The Westminster Government have thus far secured only 27 GW of their target of 50 GW of offshore wind by 2030.

To ensure that the funding available for offshore wind is sufficient, Energy UK is calling for offshore wind to be returned to a separate pot, and we back that call. If the contracts for difference scheme is to succeed, sufficient funds must be made available to provide adequate price incentives for further efforts needed to encourage innovation in emerging technologies and offshore wind.

I hope that the Minister will answer three questions. What steps will the Department take to recover the failure of AR5 for offshore wind? What does he believe the net loss in offshore capacity will be as a result of their failure in AR5? Will he apply just a tiny wee fraction of the esteem and admiration that he has for the French nuclear industry to the Scottish renewables sector?

[Dame Angela Eagle (in the Chair)]

I call the shadow Minister.

--- Later in debate ---

[Dame Angela Eagle (in the Chair)]

The hon. Member for Coatbridge, Chryston and Bellshill came in at short notice to deal with an issue, and the Minister ought to be more sensitive to that in his remarks.

[Steven Bonnar]

Thank you for that intervention, Dame Angela. Listen, the Minister has every right to say what he says—

[Dame Angela Eagle (in the Chair)]

Is the hon. Member making a point of order?

[Steven Bonnar]

On a point of order, Dame Angela. I appreciate the intervention you made. This is what we expect from the Conservative party and Government Ministers. I thank you for putting that on the record, Dame Angela.

Energy Company Obligation Schemes

Steven Bonnar Excerpts

Tuesday 27th June 2023 Westminster Hall

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

It is nice to see you in the Chair, Mr Paisley. I commend the hon. Member for Ceredigion (Ben Lake) for securing and leading the debate.

There are two issues that require immediate attention and decisive action: the soaring cost of living crisis and the importance of energy efficiency support. In the light of that, it is deeply concerning that, while we face those crises, the Government choose to cut taxes on bankers. Such a decision is abhorrent, especially when it is ordinary citizens who bear the brunt of an escalating cost of living crisis, much of that due to rising energy costs.

Inflation continues to hit those on the lowest incomes most severely, exacerbating their ongoing struggle to make ends meet. The Prime Minister pledged to cut inflation by half. However, it is evident that the Government are struggling to meet that pledge, and now aim to reduce public sector pay to compensate. We learned today that the leader of the Labour party, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), also refused to back public sector pay rises. That is a misguided approach, in our opinion, that will only further burden those who are already struggling.

Research by the Joseph Rowntree Foundation paints a distressing picture, revealing that 7 million households have gone without essentials, such as food, heating or basic toiletries, due to the cost of living crisis. It is our responsibility to provide support and relief to those individuals and families who are enduring such hardships. Considering all those other parts that play into the crisis, it is vital that we do not withdraw or cancel energy efficiency support for those in need.

Energy efficiency measures such as ECO4 and ECO+ play a crucial role in achieving our net zero targets and combating climate change. In 2019, a report from the Business, Energy and Industrial Strategy Committee praised the Scottish Government for being leagues ahead of the UK Government on energy efficiency, and we continue to deliver on that front. Our planet is facing unprecedented challenges, with soaring sea temperatures, and action is urgent. It was disheartening that a previous BEIS Secretary and disgraced former Prime Minister Boris Johnson blocked plans for a public information campaign on energy efficiency. How much could consumers have saved if they had received the necessary information and support? Many of our constituents do not know that help and support is out there in the form of these schemes.

The Scottish Government have taken proactive steps towards energy efficiency and are committed to investing at least £1.8 billion in heat and energy efficiency over the course of this Scottish Parliament. Through existing programmes, we have already supported over 150,000 households in or at risk of fuel poverty, including those in rural and island communities. Our Home Energy Scotland grant and loan scheme offers grant funding of up to £7,500 for heat pumps, with an additional £7,500 made available as an optional interest-free loan. Moreover, we have provided an uplift of £1,500 to both the heat pump and energy efficiency grants for rural and island homes, recognising the specific challenges faced by those communities.

Beyond immediate measures, we must recognise the urgent need to change the way we use our energy. As oil and gas production naturally declines, there is a tremendous opportunity for growth in low-carbon energy production. It is projected that low-carbon energy jobs could increase to 77,000 by 2050, delivering an increase of 7,000 jobs across the energy production sector. The Scottish Government’s draft energy strategy and just transition plan outlines the actions necessary for the UK Government to collaborate with us to achieve Scotland’s full energy potential. To facilitate that transition, the Scottish Government, led by the SNP, are already investing in the sector’s net zero transformation.

Our expanded £75 million energy transition fund and £100 million green jobs fund, alongside the £500 million just transition fund, will support regions such as the north-east and Moray in becoming centres of excellence for a just transition to a net zero economy. That stands in stark contrast to other parties, which have historically bled the north-east of Scotland dry and left the region on the proverbial scrap heap.

Renewable energy presents a significant economic opportunity for Scotland. The just energy transition will deliver a net gain in jobs across the energy production sector. The Scottish Government have taken decisive action, but we are constrained by the limitations imposed by Westminster’s grip on the purse strings. It is time for the UK Government to recognise that and the importance of energy efficiency, collaborate with us and our colleagues in the Scottish Government, and provide the necessary support to achieve our shared goals.