Climate Change Debate
Full Debate: Read Full DebateToby Perkins
Main Page: Toby Perkins (Labour - Chesterfield)Department Debates - View all Toby Perkins's debates with the Department for Energy Security & Net Zero
(1 month, 1 week ago)
Commons ChamberWell, the hon. Gentleman could not answer the question on jobs. If he had read it, he would know that the Government’s own impact assessment admits that the modelling does not consider any upside, or downside risks, to the economy arising from the energy transition. It specifically says that it does not consider the impact on jobs. That means that Government Members are voting on legislation without any idea of what it is going to mean for the British worker.
The impact assessment is clear and explicit: the modelling does not analyse energy security. The Government do not know what the legislation will mean for the energy security of our nation. The head of Unite was spot on when she said at the weekend that the Secretary of State
“only seems to be interested in one side of the equation, rushing Britain to net zero with almost no thought for jobs, skills and national security.”
The transition has literally not been properly assessed. What is worse is that Government MPs want to make their political points, but none of them seems to care. Considering how much people are struggling and how much growth is flatlining, are Labour Members really happy to wave through those legal targets without the foggiest idea of what it will do to the economy, the cost of living or energy security?
Will the right hon. Member give way?
If the hon. Gentleman would like to tell us about the impact on jobs, he is more than welcome to do so.
I am happy to do so. Is the right hon. Member aware of the evidence from the Climate Change Committee that says that the cost of doing nothing is more expensive than the cost of everything that is needed for net zero? When she attempts to stand in the way of the transition, what she is actually doing is attempting to pile up the costs on British business and consumers, and on the sustainability of our country. She should understand the impact of her policies, rather than attempting to row back on one of the few things the previous Government should have been proud of.
I will come to the evidence of the Climate Change Committee in a second, but first I note that once again, a Member from the Labour Benches cannot cite an overall figure on jobs—I would have thought that the Labour party would be able to cite a figure on jobs.
I very much welcome the draft Carbon Budget Order 2026, which sets the level of the seventh carbon budget on the way to our long-term and previously cross-party aim to balance the UK’s carbon emissions by 2050.
I have to say that the speech we have just heard from the right hon. Member for East Surrey (Claire Coutinho) was quite remarkable because, at the most fundamental level, it failed to understand what we are doing today. The sixth carbon budget passed by the previous Government in 2020 only got its delivery plan in 2025. Today, we are debating our aim for 2038 to 2042. At this moment, it is not prescriptive about how we get there. That is why, at the most fundamental level, the shadow Secretary of State did not understand what she was debating, and why she failed to get answers to some of the questions that she thought should be answered. I am afraid that, at the most fundamental level, she was on the wrong path.
Peter Swallow
My hon. Friend is making an important point. I have been contacted by many constituents who have engaged with the “People’s Emergency Briefing” campaign. One of its key asks is greater public awareness of the effects of climate change. Does he agree that the Government should do more to make sure that people are aware of the effects of climate change? Perhaps we could start with the shadow Secretary of State.
That is a very good place to start, because the shadow Secretary of State suggested that the Climate Change Committee has attempted to silence her. It has not attempted to silence her. What it attempted to do, on a point of fact, was inform her of the basis on which her letter to the committee was wrong. This was not a matter of opinion; the Climate Change Committee was simply explaining to her where the cost of electricity comes from. My hon. Friend makes a good point.
The shadow Secretary of State talked about transparency, which is interesting because the fact that we are having a debate on the seventh carbon budget is completely different from what happened on the fourth, fifth and sixth carbon budgets. The sixth carbon budget, under the previous Government, was approved in 17 minutes in a Delegated Legislation Committee, far away from public scrutiny. These are crucial matters. I agree with the shadow Secretary of State that they will have wide-ranging impacts on all of us, and they should be debated on the Floor of the House. I welcome that this Government, unlike the previous one, have brought this forward and reserved time to debate it.
In debating this order, it is so disappointing that the political consensus that previously existed has evaporated. It lasted from the Labour Government’s seminal introduction of the Climate Change Act 2008, which was strengthened and updated in 2019 by the Conservative Government. With the introduction of the Climate Change Act and the pathway to net zero, Britain was world-leading in our ambition. The approach was so admired that, far from what the shadow Secretary of State said, it was copied by many other legislatures. How tragic that the Opposition should choose to jettison one of the greatest achievements in their 14 years in government in the face of a threat from the climate deniers in Reform.
The approach pursued by successive Governments is working. Since 1990, the UK’s greenhouse gas emissions have been cut by 54%. At the same time, the UK economy has grown.
Richard Tice
Will the hon. Gentleman just answer a very simple question, as this is in the Labour manifesto and the Secretary of State bangs on about it week after week? When will energy bills and electricity bills come down?
There are many different things that impact energy prices. We have seen £150 taken off the price of bills. I think there is more that can be done to reduce electricity prices, and I will come to that.
The reality is that the hon. Gentleman is an advocate of a greater reliance on gas and oil. If anything is explained to us, it is that we have no control over energy prices while we are reliant on gas and oil. Everything that has happened since 2022—[Interruption.] The hon. Gentleman puts his head in his hands. I say to him that the amount that the Government spent in 2022 to cover the cost of the increase in energy prices caused by the start of the Ukraine war was greater than the cost of everything that we will do on net zero between now and 2050. That is the reality: £44 billion pounds was spent propping up people’s gas, electricity and fuel bills at the time of that crisis. That is why we need to get away from that dependence.
As I was saying, since 1990, the UK economy has grown, partly powered by the green economy, which last year was found to be growing at three times the rate of the rest of the economy, providing jobs and growth across the country. The most recent CCC assessment found that the UK remains among the leading group of countries that demonstrate sustained emissions reductions. The transition is the pro-business choice. This year’s CBI and Energy and Climate Intelligence Unit report on the net zero economy found that green businesses and their supply chains generated £105 billion in gross value added for the UK economy, as well as supporting over 20,000 small businesses and a million jobs.
My hon. Friend is making an excellent speech, with which I very much agree. I want us to tackle climate change as fast as possible, and to accelerate the bringing online of that cheap, clean energy that will help both households and businesses. Does he, however, understand the pressures on the automotive industry? Will he join me in asking the Minister to look carefully at a rescheduling of current targets so that we do not have a knee-jerk reaction, but instead have a long-term plan that industry can sign up to, which would provide the certainty that is needed in that particular sphere while we battle on with the other things we are doing to bring down emissions?
My hon. Friend makes an important point, and I will come to the zero emission vehicle mandate shortly. I agree with the shadow Secretary of State that we need to be careful that we do not just offshore emissions, so I will come to some of the stuff that we need to do about energy-intensive industries. None the less, I think it is important that we give business the certainty that it requires.
During the EAC’s inquiry into carbon budget 7, we heard time and again from business and investors that a long-term plan and policy certainty are needed. The forthcoming delivery plan and CB7 are exactly the sort of long-term planning that businesses need to have confidence about the UK’s direction of travel, in order to invest and innovate. As a world leader on clean energy, our approach puts Britain on the front foot in a globally competitive and quickly changing world.
The setting of the seventh carbon budget today is not just a technical milestone but a statement of our long-term ambition to secure the UK’s economic future and our competitiveness on the global stage, alongside a greener and healthier future for our children. The EAC analysis confirms that the pathway to CB7 is both credible and achievable. It is clear that, although they accept the overall figure, the Government will not adopt all the approaches suggested by the CCC, and the delivery plan that the Government adopt is what will dictate the success or otherwise of CB7. That is why the shadow Secretary of State was unable to get answers to all the questions she was posing. This provides an overall framework but it is not the Government’s delivery plan. It is within the delivery plan that we might expect to get some of the answers to the shadow Secretary of State’s questions, which she would have known if she understood what the carbon budget order process was all about.
The Climate Change Committee has said:
“The slow pace of electrification is putting the UK’s climate targets at risk and is a missed opportunity to enhance UK energy security in the face of rising threats, leaving the UK exposed to geopolitical shocks…Following the recent increase in fossil fuel prices, bills have increased almost four times more for a typical household with a gas boiler and a petrol car, compared to a household with a heat pump and an EV.”
People need to know how net zero will result in a stronger, more resilient economy, lower bills and greener and healthier places to live.
The EAC’s report is tagged to the debate today, and I would like to place on record my thanks to Committee specialist Dawn Amey for her work on that really important report. Our report identifies several areas in which further action is needed to achieve the seventh carbon budget. I would like to highlight just three. First, the Committee identified that bringing down energy bills and making electrification attractive and affordable was fundamental to making the green transition work for businesses and people. This Government are accelerating the roll-out of renewables in Britain and investing in grid and network infrastructure, both of which will have the effect of bringing down bills, but more action is needed. We recommended removing further policy costs from energy bills and putting them on to general taxation. This will improve the cost differential for making cleaner choices for households and industry.
Absolutely, Madam Deputy Speaker; I will move straight on.
Secondly, we heard again and again from businesses that long-term policy certainty and delivery across Government was crucial. Thirdly, we heard that fairness was key. The green transition is necessary and brings huge potential benefits, but it must be done in a way that brings people and businesses along. Decarbonisation must not mean deindustrialisation. Forcing production to relocate abroad weakens the UK’s industrial base and undermines support for decarbonisation while failing to reduce global emissions.
In summary, the path laid out by this order is credible and achievable. The goal is a vital one—indeed, this is the fight of our age—but it must be done in a way that allows our economy and our people to thrive, and ensures that it is fairly distributed so that it is accessible to all. The prize is not just a more sustainable future but quite possibly the future of our race on this planet.
All Back Benchers will now be on a five-minute speaking limit, but first I come to the Liberal Democrat spokesperson.
Richard Tice
What a tragedy it is that the truth clearly hurts for the Green party; and, by the way, the Greens do not believe in carbon capture, which has been mentioned previously.
The simple fact is that there is a direct relationship between higher energy use per capita and higher GDP per capita—the richer a nation is. That is the fundamental point that everybody in this place seems to forget. As we have reduced our carbon emissions since 1990 by 54%, people seem to forget that carbon emissions around the world are increasing. Other nations are not admiring our net zero leadership; they are laughing at our utter stupidity, as they steal our jobs and our money. They are laughing at us.
Well, I think they might be laughing at him, but I do not think they are laughing at all of us. The hon. Member is talking about our climate leadership as though we should be ashamed of it, but the reality is that China installed more solar panels in 2024 than the entire world did in 2023. China is not ignoring the opportunity to transition; it is leading the way.
Richard Tice
And what labour are the Chinese using? Slave labour is what they are using—that is the reality. They are laughing as they sell us Chinese cheap solar panels to cover our brilliant food-productive farmland in Lincolnshire and elsewhere. It is insane.
Fleur Anderson (Putney) (Lab)
I declare an interest as chair of the all-party parliamentary group on the environment, and I would like to thank all my constituents who write to me so regularly about environment issues. I also want to give a big shout-out to South Thames college and its net zero training hub, which has been built in response to so much demand for green jobs in our local area and is really helping to boost the net zero economy in south-west London.
I welcome the Government’s commitment to the seventh carbon budget in this London Climate Action Week, on this the hottest June day on record ever. This week’s heatwave is a stark reminder of what is at stake. Climate change is no longer a distant threat sometime in the future; it is here now, affecting lives, livelihoods and public services across our country, and especially in London. The question is whether we respond with the urgency that this moment demands and the long-term thinking that this carbon budget demonstrates. We are seeing the consequences of extreme heat in transport, in halting rail services, in pressurising our energy system and in forcing school closures, with more than 1,000 today alone.
Fleur Anderson
I am sorry, but I am afraid I will not.
This extreme heat creates unsafe working conditions, especially for those in physical roles, like my son who is on a construction site today. Food production is at risk, productivity falls, services stretch and working people pay the price too often. The human toll has not been talked about in this debate so far, but it is sobering. Last summer, the hottest on record, was linked to more than 1,500 heat-related deaths in England alone. Without decisive action, these consequences will only intensify.
Carbon budget 7 provides what we need most and what businesses need most, which is clarity. With a stable long-term direction, investment will follow, supporting jobs, strengthening supply chains and driving innovation. We are already seeing this in the UK’s growing net zero economy. It also delivers wider co-benefits, including warmer homes, lower bills, cleaner air and better public health. This is about improving lives—for example, by improving the air quality in Putney. It is welcome news that in London, deaths linked to toxic air have reduced by 40% in five years as a result of the policies brought in by the Mayor, including clean buses and the ultra-low emission zone.
Public support remains strong, but confidence in delivery is weaker. Too often, people cannot see that clear path to net zero, and that is why carbon budget 7 really matters. It does not just set the destination; it gives confidence in the journey. We need more affordable heat pumps, more car clubs, more trees and more council insulation projects. While I support the Government’s approach, I want to raise a serious concern about the expansion of Heathrow airport, which is projected to add 9 million tonnes of emissions each year. How does that square with what we are doing to reduce emissions across every sector? I draw attention to the Heathrow expansion national policy statement, or HENPS—not very snappy, but it is very important. The consultation was launched last week, and I hope that anyone listening, especially my constituents in Putney, will get involved in it. How does this align with our commitments under carbon budget 7?
Sojan Joseph
I was coming on to talk about my own local council, where we are facing problems. Local authority involvement is all the more important given the fracturing of the long-standing cross-party consensus. We now hear voices, particularly from Reform UK, who would simply abandon net zero altogether. Walking away from the challenge would not protect our constituents, but leave them more exposed to higher energy bills, energy insecurity and the growing impacts of climate change itself. Where there is opposition at a national, regional or local level, it is important that the Government are proactive in setting out the explicit case for the net zero agenda as well as the tangible benefits of particular policies.
Let me draw on an example from my own local authority. Last year, the Government made £25 million of funding available through the electric vehicle pavement channels grant. That funding was for local authorities to install cross-pavement channels to support residents without access to off-street parking so that they could charge their vehicles at home and benefit from cheaper domestic tariffs.
I had concerns about how the grant was being used in Kent, so I wrote to Kent county council. In response, the Reform-led administration said that the council had decided not to submit an application for the grant. As a result, of the £667,000 of funding that could have been available to the people of Kent, the council received only £50,000. That represents a shortfall of well over half a million pounds of funding that could have been used to help my constituents. That is deeply disappointing at a time when the Labour Government are putting forward practical support to help households with the transition to net zero.
What my hon. Friend has just revealed is absolutely shocking. Does that not show that even at a local authority level, Reform will put its ideology in the way of helping businesses and individuals to bring their bills down?
Sojan Joseph
I absolutely agree. Hundreds and hundreds of constituents would like to drive an electric car but have no access to home charging, and they would have benefited from that funding. Yes, we are talking about taxpayers’ money, but by not becoming an energy-secure country, we are only helping countries like Russia.
Given the urgency of meeting our national emissions targets, it is essential that no opportunity for progress is left unused. Will the Department work closely with the Ministry of Housing, Communities and Local Government, as well as other relevant Departments, to take a more proactive and co-ordinated approach? That should include identifying barriers that prevent local authorities from applying for funding, improving communication about available schemes, and providing practical support where needed.
In particular, will the Government consider measures such as offering targeted guidance or even establishing a more strategic framework to ensure that funding reaches all parts of the country effectively? By strengthening collaboration across Departments and supporting local authorities more directly, we can help to ensure that councils are fully equipped to access the funding available to them and, in doing so, maximise our collective ability to deliver on the UK’s climate commitments.