(12 years, 9 months ago)
Commons ChamberI entirely reject the idea that we did not act to deal with this issue as soon as we were advised. The problem with the design of the scheme was that it was unable to cope with the dramatic fall in the cost of solar panels. That dramatic fall, the reason for which I have already described, became apparent over the past year, and we acted as quickly as we could to deal with the situation. What is unforgivable is the fact that the present Leader of the Opposition failed to foresee, by looking at best practice internationally, how the scheme should have been designed in the first place.
2. What steps he is taking to help households to reduce their energy bills.
I agree with my hon. Friend about the importance of community schemes. That message has come clearly from the successful schemes, particularly those north of the border. He is absolutely right to point out that when the community has a clear stake in a proposal, it is much more likely to back it.
The United Nations Environment Programme has found that investment in large-scale renewables in China reached $49 billion last year, whereas in Europe it fell by 22% to $35 billion. Where will the Secretary of State find the capital to drive the expansion in the offshore wind sector, given that the green investment bank is having its borrowing and lending powers so badly restricted by the Treasury?
The hon. Gentleman should perhaps be aware that the intention of the feed-in tariff scheme was to encourage microgeneration. Any proposal that involves less than two tennis courts-worth of solar photovoltaic cells will be completely unchanged by the review that we have announced, so he is clearly referring to a scheme that is very much bigger than that. All I would say is that we have to look at value for money. I am surprised that Opposition Members think that that is a revolutionary concept but it is important to consider value for money. If we had not announced the review, we would have found that a very large part of some of our finest shire counties would, instead of disappearing under oil seed rape or some more conventional crop, have been disappearing under solar photovoltaics. That was not, I am sure, the intention of the Opposition. It certainly is not our intention and that is why we have acted.
Does the Secretary of State accept the commission’s finding about seeking a reduction of 44% in emissions from surface transport by 2030 in comparison with the figures for 2008? If he does, will he make representations to the Secretary of State for Transport to put right the cuts in the budgets for electric-powered and hybrid vehicles that were made in the spending review, which put the long-term viability of those industries at risk?
I do not think that the policies that my right hon. Friend the Secretary of State for Transport has introduced can be characterised in the way that the hon. Gentleman suggests. We recently did some calculations that suggested that, given the prices we have at the petrol pump today, it makes sense to buy an electric vehicle because of the subsidies that the Secretary of State for Transport has announced in co-operation with my right hon. Friend the Chancellor. I believe that the framework has been set for very rapid growth in this area and I am confident that that is what we will see.
(13 years, 10 months ago)
Commons ChamberThis is going to be a pretty difficult issue—we know that from the proceedings in the advisory group on climate change financing. There are a lot of options on the table, the technical work has largely been done and we have to hope that we can make further progress over the next year. Now that we have identified a clear political will to find that finance, we have to hope that the technical means to provide it will be there, but the technical options on bunker fuels, aviation and so on are set out in the group’s report.
I particularly welcome the progress on the REDD agreement that the Secretary of State has announced, especially given that deforestation accounts for up to a fifth of all annual global CO2 emissions. Will he be in a position, by the Durban summit, to update the House on the sources of funding for the programme, particularly on the contribution that will be made by businesses and Governments in the UK and the EU?
I hope that we can update the hon. Gentleman even before then because there was a commitment in Cancun to use fast-start finance to get this going. Sadly, I can answer only for the UK Government and not for the 192 or so other Governments who were represented at Cancun. However, I very much hope, and will keep my fingers crossed, that we will make even more progress on this.
I am grateful to my hon. Friend for his question. Loft insulation is key. It has a very short payback period—less than a year in many cases—and he is absolutely right that there must be a focus, particularly on the fuel-poor. One of the great difficulties in this area is that the energy use among the people in the bottom decile of income distribution is enormously varied—it varies by a factor of six—which makes it particularly difficult to reach them. Insulation and energy-efficiency measures are key to dealing with that problem.
T3. Does the Secretary of State accept one of the main recommendations of the independent Committee on Climate Change report this week, which is that the Government need to do more to support the development of electric-powered vehicles? If so, does he not agree that it would be a short-sighted cut were the subsidies for the purchase of such vehicles to be removed in the comprehensive spending review?
The Government are committed to bringing forward low-emission vehicles. As the hon. Gentleman knows, there is an Office for Low Emission Vehicles, which is run jointly by the Department for Transport, my Department and the Department for Business, Innovation and Skills, and we recently had a meeting on the subject to progress the agenda. He can be assured that we are completely committed to it.