Oral Answers to Questions
Wera Hobhouse Excerpts(1 year, 6 months ago)
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Amanda Solloway
This Government have a commitment to ensure that everybody is treated fairly, especially when it comes to the discounts and relief schemes. We have legislated to make sure that landlords pass on the payments they receive; if they do not, there is a way of redressing that by going through gov.uk.
Wera Hobhouse (Bath) (LD)
ChargePoint, one of the largest UK charging networks, worries that the Government’s local EV infrastructure fund will replicate the mistakes of the past, where electric charge points were put into lamp posts and bollards where people with non-electric vehicles park, therefore losing valuable electric charging. Will the Government ensure that the LEVI fund is targeted at local authority assets such as swimming pools and libraries, where people will often go, therefore increasing EV charging capacity?
Energy Bill [Lords]
Wera Hobhouse ExcerptsTuesday 9th May 2023
(1 year, 6 months ago)
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Grant Shapps
My right hon. Friend will know that the world’s very first civil nuclear reactor was Calder Hall in Cumbria, and we led the world, but, as he said, we switched off or stopped investing in nuclear power. That was a great shame, because we are now having to work to get back to 25%, which is our objective. He is right in another way as well, because for several decades one company has been responsible for running what are essentially small modular reactors in the nuclear Trident fleet under the water, and successfully refuelling once every 25 years. We have a certain lead in this area, and it is very important that we get on with small modular reactors. That is why we are having a very brief competition, with the results coming by October.
Wera Hobhouse (Bath) (LD)
The Secretary of State rightly addresses the need to decarbonise and support industries that have been high users of carbon. The Bill as currently amended includes a ban on opening new coalmines, thanks to the Liberal Democrats in the other place. What possible reason could there be for the Government not to support that?
Grant Shapps
Conservative Members believe in getting on and doing things, which is how we have ended up going from nearly 40% of our electricity coming from coal just 10 or 11 years ago to the position this year, when I expect that to drop to about zero. The Liberal Democrats are still fighting the battles of yesterday. They are still concerned about building more power stations for coal, but no one is doing that. The issue is already in the distant past.
Wera Hobhouse (Bath) (LD)
Our biggest task worldwide is to get to net zero. We must transform our entire energy system. The Liberal Democrats welcome many of the Bill’s proposals. However, it is simply not ambitious enough. We need bold action now to protect consumers from spiralling costs and to put us on the path to net zero.
The Government continue to protect the oil and gas giants. Typical direct debit customers have seen their annual gas and electricity bills almost double, while oil and gas giants have announced record profits. Last year, Shell forcibly installed prepayment meters in over 4,000 homes while making £32 billion in profit. UK consumers have been among the least protected in Europe. When will this Government put struggling UK citizens first?
The energy price cap is not fit for purpose. The current price cap is set at a high level to incentivise people to switch energy suppliers, but research shows that vulnerable customers who struggle to pay their energy bills are much less likely to switch suppliers. We Liberal Democrats would reform the price cap to protect these customers by bringing in a capped tariff set lower than the existing price cap. I urge the Government to consider this.
The best way to reduce energy bills is to move harder and faster towards renewables. However, a lack of grid capacity is seriously holding back renewable energy projects. Many face delays of up to 15 years. In Wokingham, for example, the Liberal Democrat council has been told that its first ground-mounted solar farm project will only be connected in October 2037, a decade later than originally promised. How can we decarbonise our power system by 2035 when ready-to-go renewable projects cannot get the grid connection they need?
Britain will have to build seven times more transmission lines in the next seven years than it has built in the last 20. This huge task will require a major change in approach by the regulator. Ofgem is not empowered to consider the benefit of long-term investment, as its remit focuses on short-term costs to consumers. This is a major reason behind the lack of grid investment. In the other place, an amendment was agreed to give Ofgem a specific statutory net zero objective. I urge the Government to keep this provision in place.
The Bill, as amended, also now contains a ban on opening new coalmines. Less than two years ago, the Government announced that they were leading an international effort to end the use of coal, yet soon afterwards they gave the greenlight to the Cumbria coalmine, a gateway to allowing more fossil fuels in the UK and flying in the face of our net zero commitments. The Government must ensure that this ban on new coalmines remains part of the Bill if they are to retain a shred of credibility on climate action. Huge changes to people’s lives will be required to get to net zero. We must bring people on board, or there is a risk that people will not accept the necessary changes, making our progress to net zero more lengthy, costly and contested.
Community energy provides cheaper, greener power and distributes benefits locally. The community energy sector has the potential to be 20 times bigger by 2030, powering 2.2 million homes and saving 2.5 million tonnes of CO2 every year. However, community energy projects currently generate just 0.5% of the UK’s electricity. This is because the financial, technical and operational requirements involved in becoming a licensed supplier put initial costs at more than £1 million. The amendments agreed in the other place would rectify this, and they must remain part of the Bill. Ministers have said repeatedly that they want more community energy. Now is the time to show that they mean it.
Some 77% of people say that they would support a new onshore wind farm being built in their area. Our UK communities know that renewables are the solution to our energy crisis. However, this Government continue with their dogmatic opposition to onshore wind and solar. The Bill does not contain provisions to roll out solar power, and the effective ban on onshore wind remains.
Another disappointment is that the Bill does not contain provisions to cut flaring, venting and leakage of methane from gas and oil platforms. Methane is a potent greenhouse gas, with 80 times the warming effect of CO2. It accounts for 13% of global greenhouse gas emissions. The UK has signed the global pledge to cut methane levels by 30%, and a ban on oil and gas flaring and venting in the North sea would dramatically reduce methane emissions. It is supported by the Environmental Audit Committee and the Government-commissioned independent review of net zero. We must mandate monthly leak detection and repair activities. The North Sea Transition Authority must identify and publish a league table of the best and worst performing companies, so that methane emissions can be publicly monitored. We can reduce methane waste by 72%, but the Bill is currently silent about that and needs amending. We still have much to do to protect consumers and reach net zero. The Bill, although substantially improved in the other place, still does not go far enough. As it passes through this House, we must ensure it does not become a missed opportunity.
Dr Alan Whitehead (Southampton, Test) (Lab)
We have had a good, calm and well-informed Second Reading debate. Indeed, we have heard contributions from across the House emphasising the point that the Bill is necessary but not necessarily sufficient.
My right hon. Friend the Member for Leeds Central (Hilary Benn) asked who will pay the changed levies as far as heating is concerned, and spoke about the need to undertake that properly for customers.
My hon. Friend the Member for Llanelli (Dame Nia Griffith) pointed us towards the rise of state-controlled companies’ investment in new energy arrangements, and was adamant about the Bill lifting of the ban on onshore wind.
My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) made a strong contribution on the role of hydrogen in heating and, in particular, on the hydrogen trials that he has experienced. Perhaps we can assure him that we will certainly pursue an amendment to the Bill along the lines that he suggested.
My hon. Friend the Member for Stockton North (Alex Cunningham) spoke strongly about carbon capture and storage, about the importance of CCS in the Teesside industrial cluster, and about the importance of ensuring that the industrial clusters can play their role in CCS as they develop further,
In the spirit of general cross-party support for the Bill, I think it also worth mentioning selected contributions from hon. Members who are not on the Labour side. Unfortunately, if everyone stuck to the contributions from their own side, those of the hon. Member for Brighton, Pavilion (Caroline Lucas) would not be mentioned by anybody, but she made a strong contribution about the future of coal, about the need to support the amendment on coal tabled in the other place, and about the ludicrousness of continuing to maximise the economic production of oil, echoing many of the sentiments of my right hon. Friend the Member for Doncaster North (Edward Miliband).
The right hon. Member for Ludlow (Philip Dunne), who chairs the Environmental Audit Committee, spoke strongly about the need for security of investment in this market, and the length of arrangement that would secure those investments and confidence in markets for the future.
Finally, the right hon. Member for Kingswood (Chris Skidmore), author of the net zero report, spoke enormous sense about delays being the biggest threat to net zero in future. He supported the retention of Lords amendments to the Bill, as did many other hon. Members, on community energy changes and other things that are part of the Bill that we are debating in the Commons.
Wera Hobhouse
Does the hon. Gentleman think that it is important that we do something about methane flaring and venting, which I raised in my contribution?
Dr Whitehead
Yes, I am happy to acknowledge that that is an important issue in the transition to net zero for the oil and gas industry, and that it is ripe for further legislation to outlaw it in the not-too-distant future.
It is fair to say that hon. Members across the House went along with the theme that we have tried to establish on the Bill: it contains a great deal to support, and it is a Bill that is necessary to introduce things that are essential to the development of a low-carbon economy, to the achievement of the many targets on low-carbon energy and renewable deployment, and to the new forms of energy management that the Government have already put in place and on which they are seeking to succeed.
The Bill establishes mechanisms and business arrangements for carbon capture and storage, and for the manufacture and deployment of hydrogen as a low-carbon fuel for the future. It starts to delineate how energy systems are going to be governed and managed for the future, with the establishment of the independent system operator. For the first time, it introduces a proper system of heat network regulation, and it takes the planning and development of heat networks further. It heralds some of the essential elements of energy market reform. In short, it undertakes a great deal of what I would call necessary “green plumbing”, which has to be done now if our low-carbon energy system of the future is to work effectively.
The Opposition have some serious differences with the Government about how to go about those changes, but we acknowledge and support the generality of those “green plumbing” measures, not least because their establishment will undoubtedly help the new Labour Government greatly as we embark on our far more ambitious programme of energy decarbonisation and energy efficiency from 2024 onwards. Indeed, one of our substantial criticisms of the Bill is how long it has taken for us to get to the point of establishing the legislation that will guide the next stages of our energy decarbonisation.
As we have heard, the Bill has been with us for 10 months in its almost finalised form. Yes, the Government have sought to add amendments to the Bill in another place, and there will be further amendments in the Commons, but the measure could have been on the statute book many months ago—and time is of the essence in getting going with the next stages of decarbonisation. Instead, last autumn we were treated to the spectacle of the then Secretary of State for Business, Energy and Industrial Strategy pulling the Energy Bill from its established progress after just two sessions of debate, and sitting on it for over three months for no apparent reason while the legislative process stalled completely. That led to the remarkable situation of the Opposition writing to the new Minister during that period of stasis demanding that the Bill be recommenced as soon as possible. I know about that because I was the person who wrote the letter. [Interruption.] Indeed, I did a very good job there.
Yes, this Bill is necessary, but many Members have asked whether it is sufficient, and we think it is certainly not. There are many missed opportunities to legislate for many aspects of the green transition that are or will become necessary shortly. There are many instances where the green plumbing in the Bill looks, frankly, fairly faulty and could do with beefing up. For example, the Bill fails completely to lift onshore wind back into place as a key element of our low-carbon energy armoury. The Bill fails to redefine Ofgem’s remit to start from a low-carbon imperative. The Bill fails to address another key part of that armoury—community energy—in any sort of meaningful and enabling way.
The Bill fails to address the very real changes in regulatory machinery that will need to accompany the transition from oil and gas to a predominantly low-carbon energy environment. The Bill continues to propose soaking customers for the support of future infrastructure when we require entirely new forms of support that recognise both the breadth of the work that has to be done and the institutions that we will need to support investment and development.
There are many areas where we can say, “Yes, but” to this Bill and put forward the measures that will enable it to rise to the challenge of decarbonisation in a comprehensive way. That is why we will embark on that task as the Bill goes into Committee by tabling the amendments that will make the Bill so much more robust for the challenge of the future, and we hope the Government will be receptive to those proposals. That process has been started, with a number of very well-thought-out additions made to the Bill in the other place on Ofgem, hydrogen, coal, community energy and home retrofitting. We will seek to defend those changes in this place, and we hope the Government will see the wisdom of them and not seek to overthrow them.
This is a necessary but not sufficient Bill that we want to get on the statute book, preferably with the added heft of our proposed changes to it in Committee, so that it becomes more on the sufficient end and less just necessary. We will not seek to divide the House on Second Reading but instead will give conditional support and assistance as far as we can with an early emplacement on the statute book.
Labour has an ambitious low-carbon energy programme for government, with a fully decarbonised power system by 2030, including a doubling of present onshore wind deployment; a grid that is fit for enabling and delivering a low-carbon economy; Great British Energy, an investment company that can do so much to speed the energy transition along; a massive programme to retrofit 19 million homes over 10 years to reach our energy efficiency targets; and serious planning of the energy transition, so that it is a just transition both in the North Sea and elsewhere. All these plans will benefit from many of the measures that are in the Bill, but they could be so much more supportive, and that is why we want to see an extended and more robust version of the Bill on the statute book as soon as possible.
Oral Answers to Questions
Wera Hobhouse Excerpts(1 year, 7 months ago)
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Graham Stuart
My hon. Friend will be pleased to hear that we always work closely with our Treasury colleagues. We launched the floating offshore wind manufacturing investment scheme—FLOWMIS—on 30 March, which is worth up to £160 million and will support investment in port infrastructure precisely to unlock floating offshore wind investment and deployment. The spring Budget set out the Government’s plans to launch the refocused investment zones programme to catalyse 12 high-potential growth clusters across the UK.
Wera Hobhouse (Bath) (LD)
Graham Stuart
The hon. Lady is right to highlight the technical challenges. The Labour Government said in 2003 that CCUS implementation was urgent. No one thinks there is a route to 2050 without CCUS and, as she says, it is important not only that we make the investments we are making, but that we do so in a way that is compatible with the highest possible capture percentage.
Powering Up Britain
Wera Hobhouse Excerpts(1 year, 7 months ago)
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Graham Stuart
To decarbonise industry, we will need CCS and hydrogen. We are socialising the funding requirements across the piece to ensure that we deliver what is necessary to meet our carbon targets, at the lowest possible cost to consumers. This year we are also consulting on measures to prevent carbon leakage, ensure that we do not drive UK industry abroad, which I know my right hon. Friend is concerned about, and instead maintain our competitiveness as we move towards net zero.
Wera Hobhouse (Bath) (LD)
If the Government were so serious about climate action why did they need to be dragged into court and told by the High Court that their existing plans are not sufficient? Now we have a new strategy, but there is not very much new in it and still a de facto ban on onshore wind. Will the Minister commit to cancel the planned expansion of fossil fuel subsidies and instead commit to a significant increase in onshore wind?
Graham Stuart
I am afraid the hon. Lady may want to correct the record because she misled the House. The courts did not say our policies were insufficient; they said they wished to have more detail on them. We are responding to that technical point today, providing further detail. [Interruption.] Absolutely, it was not a reflection on the quality of those policies. We have met all our carbon budgets to date and have set out today the way we will meet our carbon budget 6, and, even though it is far ahead, we have already set out policies to cover 97% of it. As I have also said, we are looking to make sure that we come forward with more opportunities for onshore wind, but with the consent of local communities.
Mr Deputy Speaker (Mr Nigel Evans)
I thank the Minister for his statement and for responding to questions for over an hour. Could he stay in his place a little longer, as this point of order relates to him?
Wera Hobhouse
On a point of order, Mr Deputy Speaker. The Minister has accused me of misleading the House and asked me to correct the record. I am happy to do that. My question should read: “If the Government were serious about climate action, why did the Government need to be dragged into court and told by the High Court that their existing policies are lacking detail?” I apologise to the House that I used the word “insufficient” rather than “lacking detail.”
Oral Answers to Questions
Wera Hobhouse Excerpts(1 year, 8 months ago)
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Wera Hobhouse (Bath) (LD)
In its progress report last June, the Climate Change Committee noted that only about 40% of the Government’s plans for getting to net zero were credible. In some areas, including farming and industrial electrification, they had no plans at all. What are the Government doing to develop credible plans in those areas?
Graham Stuart
We are under a legal duty to ensure that we move to net zero, and I am delighted that we are continuing to make progress. The hon. Lady will see announcements from the Government by the end of March on our net zero plans.
Independent Review of Net Zero
Wera Hobhouse Excerpts(1 year, 9 months ago)
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Chris Skidmore
A really important part of the report, which I will come on to in the moment, is taking a place-based approach to net zero. We will achieve net zero in a more affordable and efficient way if we allow local communities, whether they are cities or rural areas, the opportunity to be more empowered to understand how to achieve net zero in a way that suits their local communities.
In Northern Ireland, I listened to concerns about how agriculture could be decarbonised. Northern Ireland wants a whole raft of new biomethane plants. At the same time, there is a new fleet of hydrogen buses in Belfast—it is really pushing forward on fully decarbonising public transport. There was a fascinating discussion on how Northern Ireland wanted to be a leader on green hydrogen. It may not have much offshore wind, but there is a huge opportunity for onshore wind and for the use of hydrogen to drive a whole new economy. Picking up all the pieces that come together that demonstrate the opportunities in every region is exactly what the report tries to reflect.
The report sets out the new narrative that net zero is the primary economic opportunity of this century, but if we do not invest now—that investment is primarily private sector investment, but it needs certainty, clarity, consistency and continuity from the Government on policy—we will turn our backs on a potential £1 trillion of investment by 2030 and turn our backs on up to 480,000 new jobs by 2035. In a way, the net zero review is a bit of a misnomer. I was keen to look at the targets that have been set and to understand how we will realistically meet them. The worst thing one can do in politics is overpromise and underdeliver; it completely undermines confidence in the ability to deliver on our climate commitments and the energy transition.
Wera Hobhouse (Bath) (LD)
First, I congratulate the right hon. Gentleman on the report. It is very welcome, and was very ably chaired and put together by him, so I put my thanks to him on record. On delivery, is it not the case that some kind of delivery authority is needed—a body that combines all the quite difficult and complex strands we face on net zero?
Chris Skidmore
Yes. I thank the hon. Member for that point. One of the key recommendations of the report is that we have an office for net zero delivery, which will be able to join all Government Departments to ensure they speak with one voice on the policy commitments that are needed. We have the new Department for Energy Security and Net Zero. That is fantastic news. I hope it will be given the powers and the mandate to enforce an understanding of what we need to do to achieve net zero across all Departments, because it is certain that Departments are falling behind.
On net zero, I am a realist. I understand that on delivery we must be able to provide public confidence in our ability to achieve some of the ambitions that at the moment are just words on paper. The document is very much about delivery and implementation. I created a structure of six pillars to inform the report. The pillars strengthen the foundations of the pathway towards net zero by 2050, but also refer to some sub-commitments such as decarbonising power supply by 2035 and looking at our electric vehicle mandate by 2030. How will we achieve those targets if we do not get the basic under-the-bonnet issues right, such as infrastructure or grid? Delays in the planning system mean that current targets are way off beam and will not be achieved. Unless we are realistic now about what we need to do to unblock those problems and get, as I called it during the review, the debris off the tracks, we will not be able to reach our commitments in time.
Making decisions now is absolutely critical for this Administration. I include 129 recommendations in the report, but I set out 25 key recommendations for 2025, recognising that this Administration probably has about 300 legislative days left in Parliament until October 2024. That is not to say I would not urge them to take on all 129 recommendations. I understand that the Government will respond to the report by the end of March. Coincidentally, as I was taking forward the work on the review, the Government decided not to challenge the High Court judgment that their net zero strategy was illegal and they have agreed, in secondary legislation, to respond to the High Court judgment and the Committee on Climate Change by 31 March. I hope that their response to the judgment will also form part of the response to the “Mission Zero” report, but the more we can do now, the more we will reduce the costs of the transition overall. The report sets out that if we delay action on net zero by 10 years, we add on 23 base points of GDP to our public debt.
There are huge challenges to achieving net zero. I recognise that, which is why we set out in pillar 1 that securing net zero must be a priority—understanding how we will be able to have in place the materials, supply chains and skills to ensure we can deliver on time. The sooner we act, the sooner we will be able to achieve net zero in an affordable and efficient manner. Other pillars cover powering net zero. I asked each sector how it could achieve net zero in a better way. A third pillar looks at net zero and the economy, and how we could work with those hard-to-abate sectors, whether energy intensives or agriculture, to make sure they can also achieve net zero on track.
Sir Edward Leigh
Well, if I am wrong I am wrong, but I do not think there is much enthusiasm for building windmills as tall as Lincoln cathedral in urban areas. We can say that in theory we are in favour of onshore windmills, but I assure the hon. Lady that every time they are proposed, there is a gruelling process of public inquiries and fierce opposition lasting many years. How much better it would be to concentrate our resources offshore. As I have said, we are world leaders in offshore wind, and there is never any objection.
The report also refers to achieving net zero through better public transport. It talks of the importance of getting more people to use sustainable public transport rather than making individual car journeys. When I am down in London I hate using a car; I would much rather use the tube, the bus or even a Boris bike. However, it is different in rural areas such as Lincolnshire, where we have been calling for better public transport links for decades. Little has been done; indeed, the services have become worse and worse. Too often, we have fallen victim to service cuts when budgets from central Government have been reduced.
If services for people who live in less built up areas are only two-hourly, or even once a day—or indeed, in the village where I live, non-existent—those people have to rely on cars, not just to socialise but for essential activities such as working and shopping. If the Government are serious about net zero in public transport, they must radically upgrade our rural transport links, and that includes the frequency of service. However, that is never going to happen, because it is so fantastically expensive, so I am afraid we will be reliant on cars for decades, or perhaps forever in rural areas such as Lincolnshire. By all means reduce the carbon footprint of buses—put solar panels on them if you want—but a net zero bus that arrives only once a day will not be of much use to you.
It is now 2023, but the sale of all conventional cars is to be banned from 2030, and the sale of hybrids by 2035. Lincolnshire measures 2,687 square miles, or 1,719,600 acres. The Government need to make clear how they are going to roll out charging points across such a vast area, because it is simply not going to happen by 2030. Are they in touch with the energy supply companies? Have they had discussions with rural councils about the transition? I put it to the Minister, who represents a Scottish constituency, that this is simply not practical in rural counties, and we need to think very seriously about it.
The excellent report by my right hon. Friend the Member for Kingswood points out that the UK’s housing stock is much older than that of most similar nations. More than 50% of homes in England were built before 1965, and almost 20% before 1919. As the report says, that has a huge impact on energy efficiency. I live in an old house, and I know very well how difficult it is to heat such houses. Nearly 50% of low-income households in England are in homes with energy performance certificate ratings of D or lower, and on average they use 27% more gas and 18% more electricity than higher-rated homes. These are the least well-off people, but there is no point in our preaching to them about the value of heat pumps, which they cannot afford. Lower-income households simply do not have the disposable income to pay for this kind of investment, unless we are prepared to devote massive resources to helping them.
We are also paying the price of decades of failure to invest in clean nuclear energy. In the wake of OPEC and the oil crisis in the 1970s, France’s Gaullist Prime Minister Pierre Messmer realised how vulnerable his country was, and ordered a huge upscaling of French nuclear energy. As a result, France now has a cheaper, cleaner energy supply, and is selling the surplus to needy countries such as ours.
As I said, we need to approach this issue holistically. The UK’s contribution to carbon emissions is minuscule on the global scale. I am not saying that is an argument for doing nothing, but it is a fact. If we achieve net zero, the gain for the planet can be wiped out by a tiny percentage increase in China’s or India’s huge carbon emissions. These are growing developing economies. Let us be realistic about it: they look at us telling them to cut their emissions and think we are cheating them. They both have complex relationships with the west. We are very friendly with India, but we are the former colonial power there. The rise of Hindu nationalism makes that relationship even more complicated and difficult.
As for communist China, it views us with distain. Judging by China’s actions, it is not wholly convinced by environmentalism. If people view the world from a totally materialist utilitarian perspective, as a communist Government do, why would they be as environmental as we claim to be? They would see all the leading developed and industrialised nations such as ours, which were totally reckless when we were industrialising, lecturing them. Now that we are on top, we tell developing countries to toe the line and not do what we did to get to the top—that is their view. They view our preaching as hypocritical on the one hand and patronising on the other.
Sir Edward Leigh
I am about to finish, but I will give way to the hon. Lady.
Wera Hobhouse
Is the right hon. Gentleman not making an excellent argument for why we should lead by example? We cannot tell others what to do unless we show leadership ourselves.
Sir Edward Leigh
Yes, of course we should lead by example. I accept everything that is in the report and we must lead by example, but I hope that my right hon. Friend the Member for Kingswood, who was an excellent Minister and has written a wonderful report, accepts that some of the points I have made about being realistic, particularly in terms of rural areas, should be taken into account. That is the point I wish to emphasise.
Wera Hobhouse (Bath) (LD)
It is a pleasure to follow the right hon. Member for Gainsborough (Sir Edward Leigh), because it is important to hear where people’s concerns are. The report sets out the fact that we must overcome our concerns because we have no option: we need to reach net zero. The House knows how passionate I am about making sure that this country reaches its net zero targets.
While recent news has overwhelmed us with the tragedies of war and natural disasters, the climate emergency continues to threaten our global future. We have to act together, in solidarity. I welcome the independent review of net zero. It is uncompromising in its demand that the Government get a grip and actually deliver on the targets they have set themselves. Last year, the Climate Change Committee made a similar point: tangible progress now lags badly behind the country’s net zero ambitions.
We are on course to overshoot our target level of greenhouse gas emissions twofold. The CCC had previously set the Government several targets for 2022 to stay on course for net zero by 2050; only a fifth of them have been achieved. This is an unforgivable underperformance and shows that the Conservative Government’s commitment to net zero is lukewarm at best. We need to do a lot more persuasion. It is about winning hearts and minds, not just in this House but in our local communities, to persuade people that we need to get to net zero. The commitment has to be more than lukewarm: it has to be hot and passionate. We want to get to net zero.
Too many people still treat our net zero targets like a bus that we can miss and then catch another. We must understand that there will be no next time if we do not reach net zero by 2050—and that means net zero globally. Climate change is already leading to chaotic consequences in our societies. Since 1950, the global number of floods has increased by a factor of 15 and wildfires have increased by a factor of seven. We have seen droughts and famine across east Africa, floods in Pakistan and a heatwave in the UK. The dangers of missing net zero are staring us right in the face. The difference in limiting global warming to 1.5°C instead of 2° would save around 420 million people from exposure to extreme heatwaves.
Our Government should be leading by example—I say that for the third time now. We are an advanced economy. We cannot tell economies that are less advanced that they have to get to net zero but our contribution is so tiny that it does not matter. It matters that we lead by example. I am so glad we have a report that says that net zero is not only good for the planet but makes sense economically. We will miss out hugely if we do not really get to grips with this and deliver on the targets. We must set ourselves ambitious targets and be very passionate and hot about them, not just lukewarm. What message does it send to the rest of the world when our advanced economy does not meet its obligations in the global fight to keep temperature rises below 1.5°?
The independent review recognises that the Government’s tepid approach to net zero means the UK is losing out on green investment. This concern is shared by the Confederation of British Industry and many renewable energy companies, such as Equinor, SSE and Vattenfall. The USA and the EU are developing huge financial packages to encourage green investment, and China is currently the biggest investor in renewable energy, while our Government are still playing to the tune of the oil and gas giants. The UK lags behind all but one of its G7 counterparts in investment in green infrastructure and jobs. It is a massive missed opportunity.
We are in a cost of living crisis because of our reliance on gas and oil. The Government fail to recognise that the fastest and cheapest way to guarantee energy security is to phase out oil and gas rather than invest in more exploration and extraction. I welcome the fact that we now have the new Department for Energy Security and Net Zero—that the two have been put together—because so much of energy security depends on our getting to net zero and phasing out our reliance on gas and oil.
I am pleased that the net zero review recommends that the Government support the Local Electricity Bill. The lack of growth in community energy in the past seven years is a significant missed opportunity. Its major strength is its connection to people and places. It engages people in energy systems and makes that important connection so that we win hearts and minds and people see the advantages of changing. I absolutely agree that change is difficult and we need to get people behind the net zero agenda.
In my Bath constituency, Bath and West Community Energy has installed enough renewable energy to power nearly 4,500 homes. Many of the projects are installed in local school and community buildings. The energy is net zero and far cheaper than gas and oil, but the huge potential for more community energy cannot be realised because current energy market and licensing rules mean that community energy schemes face high grid-access costs.
The Local Electricity Bill would reform the energy market to empower community-owned and run schemes to sell local renewable energy directly to households and businesses. It would make new community energy businesses viable, and those businesses would keep significant additional value within local economies by bypassing large utilities. It is incomprehensible to me why the Government are dragging their feet on enacting this vital change to help an industry that has so much potential not only in reaching net zero but in doing exactly as we are doing with this debate—aiming to win hearts and minds and make people and politicians aware of how important net zero is and how deliverable and advantageous for our society it will ultimately be.
The transition to net zero must be at the heart of every Government policy if we are to hit our targets. The Climate Change Committee has criticised the lack of joined-up thinking on net zero in the Government. Last year, I spoke to a group of sub-national transport bodies that noted the lack of synergy between the Department for Transport and the Department for Levelling Up, Housing and Communities in the development of sustainable land planning principles. That is just one example of siloed thinking in the Government.
I agree with the review that there needs to be a group with actual power that can work across Government to ensure that net zero is considered in every policy decision. A net zero delivery authority, as outlined in a recent Policy Connect paper, could do exactly that. Such a public body should be placed on a statutory footing and operate at arm’s length from the Government to provide assurance to business and people about its longevity and clout. It would be tasked with monitoring and accelerating the delivery of key net zero strategies.
The Government would set the authority’s objectives, rules and principles of operation and the authority would then be responsible for delivery within that framework. I am glad that we have already discussed that this afternoon. [Interruption.] I hope the Minister is listening, because he might be involved in setting up such an authority. I am looking forward to progress with that.
A net zero delivery authority would co-ordinate the delivery of Government strategies between local and national Government. That, too, is incredibly important and has already been mentioned. The delivery of many of our net zero targets should be devolved to local areas, because local people know best, and the delivery of net zero can be so much better achieved through local authorities. The authority would gather information and understanding about local delivery from local government and businesses to inform the national strategy. It would work with partner organisations and national bodies to inform both national and local delivery strategies for decarbonisation.
However, a net zero delivery authority is not enough, which is why we, as Liberal Democrats, are proposing a net zero action plan, backed by a £150 billion public investment programme to fire up progress to net zero and help the UK become a global leader in future technologies. What a net zero delivery authority could do is avoid policy inconsistency and ensure total focus within Government on the climate emergency.
The net zero transition will impact every aspect of our lives. The evidence is clear that the costs of combating the climate emergency are dwarfed by the consequences of inaction. We must all work together to deliver the net zero transition as efficiently and sustainably as possible. If we do not do so, we risk losing the battle to preserve our climate, the future of our country and the wellbeing of our people.
Peter Aldous (Waveney) (Con)
My right hon. Friend the Member for Kingswood (Chris Skidmore) and his team are to be congratulated on carrying out the herculean and timely task of reviewing the UK’s legal commitment to net zero greenhouse gas emissions by 2050. Generally, I agree with his findings and recommendations, and I urge the Government to consider them carefully and to respond to them proactively. This must not be a document that gathers dust on a bookshelf, or to which occasional reference is made in preparation for debates such as this. Instead, it must mark a sea change in how we set about ensuring that the UK realises the full potential of the growth opportunities that net zero presents.
My right hon. Friend’s review calls for action on the “key 25 for 2025 recommendations”. Each of these proposals warrants a debate of its own, but what I shall briefly do is home in on one subject that is not only very important to delivering net zero, but already bringing significant job opportunities to areas such as Waveney and Lowestoft and, with the right policy framework, can deliver even more. What I am talking about is the offshore wind industry.
Offshore wind has come a long way in the past decade. At the outset, 10 years ago, there were many Doubting Thomases questioning whether the industry had a future, saying that, as a technology, it was way too expensive. However, the industry, working with Government, has proved them wrong. It is now an undoubted British success story, with everyone wanting a slice of the action. As a result, the Government have set very ambitious targets for 2030 and 2050 for the amount of electricity that offshore wind will generate.
The industry has brought significant benefits to East Anglia, with half of the nation’s offshore wind fleet anchored off the Suffolk and Norfolk coast. Its construction is being project managed from ports such as Lowestoft, where ScottishPower Renewables and SSE Renewables also have their operations and maintenance bases, and where Associated British Ports has obtained planning permission and is designing its Lowestoft Eastern Energy facility.
This success can be attributed to a combination of the ingenuity of business and the foresight of Government, who, in the Energy Act 2013, set down a policy framework that has been an undoubted success. However, times change. In many respects, offshore wind is a victim of its own success. The scale of the Government’s vision for the future of the industry means that a more strategic approach to its future development is now required. The Russian invasion of Ukraine and the ensuing global gas crisis mean that other nations, in particular the US with its Inflation Reduction Act 2022, are upping their game in developing their own renewable energy strategies. All of a sudden, the UK, which is still the No. 1 world leader in offshore wind, is at risk of being an also-ran. Energy is a globally footloose industry, and it is vital that we respond to ensure that the UK retains its pole and premier position.
I shall briefly outline how I believe this can be done. First, there is a need to streamline the planning process. A more co-ordinated and efficient planning system is required if we are to achieve the 50 GW 2030 target. The establishment of the offshore wind acceleration taskforce will help achieve that, but its reforming work does need to take place at a greater pace.
Secondly, and in the same vein, we need to speed up the development of the grid system, so that offshore wind projects can be delivered more rapidly. We require a new model of grid development where critical investments are accelerated by Ofgem and the transmission owners. To deliver this step change in grid development, the Government should reform the remit of Ofgem through an amendment to the Energy Bill, as recommended by my right hon. Friend the Member for Kingswood and his team.
Thirdly, there is a need for a stable and attractive fiscal framework that enables businesses to make what are enormous investment decisions with confidence. It would be wrong to get into a bidding war with the US, the EU and other nations, but we do need a taxation regime that encourages investment through a compelling range of capital allowances. I urge my right hon. Friend the Chancellor to introduce these in the forthcoming spring statement.
Fourthly, although the framework set down in the Energy Act 2013 has served us very well, it does need considered reform to take account of the harsh new global economic reality. Due to inflation and supply chain constraints, it is necessary for Government to adjust the parameters for future contracts for difference auctions, both with regard to their overall budget and the strike prices that are set. In the longer term, it is necessary to reform the contracts for difference allocation process so as to better balance price and supply chain considerations. In doing so, we will be able to maximise the opportunities that offshore wind presents for economic regeneration and job creation in places such as Lowestoft.
Wera Hobhouse
Does the hon. Member agree that one of the biggest problems that we encounter is not so much the CfDs, but the delay that is caused by grid access? The National Grid cannot develop new grid infra- structure until projects have come on board.
Peter Aldous
I agree with the hon. Lady. The industry faces a whole range of challenges. The contracts for difference one is very important at the moment, with developers putting forward their bids, but the grid is an important issue. As I have said, the industry has been a victim of its own success. The point-to-point approach to making connections into the grid, which we have had up until now, is, I fear, no longer sustainable and we need to move on to that more strategic approach.
My fifth and final point is that it is important that the Government act as a catalyst for investment in key infrastructure, particularly in ports. That is vital in order not to deflect investment overseas. Such leveraging could include revenue guarantee support for investors for a limited period, to overcome the risk gap at the time of final investment decisions, and looking to see what the UK Infrastructure Bank can do to crowd in private investment.
In conclusion, as I mentioned at the outset, offshore wind has come a long way over the past decade. In many respects it is now the UK’s star player in mission zero. It provides hope and opportunity for communities all around the UK. The existing partnership between business and Government, which culminated in the sector deal signed in Lowestoft nearly four years ago, has served us well. However, the regulatory and policy frameworks now urgently need reviewing if the UK industry is to retain its premier position. If we do not do that—my apologies for this metaphor, Madam Deputy Speaker—there is a risk that we will have blown it.
Andrew Bowie
This Government are committed to incentivising investment in renewables across the piece, working with the energy sector and others. In the full response to this report, which I assure Members will come later in the year, we will set out more plans in that regard. The hon. Gentleman is right; that is something we need to do.
New technology will be critical to the transition, and this comes back to the point made by the hon. Member for Bath (Wera Hobhouse) about phasing out fossil fuels. Of course we need to move away from a reliance on fossil fuels as our energy baseload. That is why we are transitioning. That is why Offshore Energies UK has its “Vision 2035” to make the North sea the first net zero basin in the world. We continue to work with the oil and gas sector as it produces the energy we require and will need for many years to come, and as it invests in the new technologies of the future, including carbon capture and storage—a technology in which there are many projects across the country.
Wera Hobhouse
Is the Minister not aware that the biggest investment is still in oil and gas exploration and extraction? How does that fit with what he just said?
Andrew Bowie
Exploration and drilling will continue. We will be reliant in some way on oil and gas for years to come. At the same time, we are working to increase our investment in renewables, as well as new technologies, including the developments in hydrogen and e-fuels that I have seen myself. This is a transition. It is not a case of simply turning off one form of energy and turning on another. We need to transition away from fossil fuels. That is why it is really important that we work with the oil and gas companies operating in the North sea to achieve that, as well as increasing our investment in new technologies being developed in this country.
We are a world leader in green and clean tech, as I saw just last week. We are delivering green and clean tech to countries across the world, but we must also work with our existing industry. The net zero research and innovation delivery plan will set out the Government’s current portfolio of research and innovation programmes that are backing Britain’s most innovative businesses to develop the next generation of technologies needed to deliver net zero. We expect to set out the next steps in a range of other critical areas, from energy efficiency to carbon capture and storage, very soon.