Alistair Carmichael is the Liberal Democrat MP for Orkney and Shetland.
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The fishing industry understands the need for change. Fishers are not blind to the realities of climate change; they see its effects day and daily in their own nets. The loss of cod in some parts of the North sea seems to be down to the changing temperature of the sea, which is having a real effect. The industry is also, ironically, part of the answer. The fish caught by our fishing industry are a good source of protein caught in a sustainable way in a low-carbon-emitting industry. In the rush to tackle climate change, there seems to be a determination to squeeze out some of the people who are most able to help us to move to that future.
Full debate: Fishing Industry
I have two problems with that approach. First, it will leave a lot of people in fuel poverty for another three years while they wait for the money to come. Secondly, if the money comes at all, we will be shovelling it into wheelbarrows to get it out over the two years, a situation that always brings the law of unintended consequences into play, as we have seen time and again with energy efficiency measures, renewable energy development and so on. There is money that must be spent within a target time, but there is neither the existing labour force nor the skills base to deliver the work, so a whole load of fly-by-night companies are set up that come into our communities from outside, do substandard work, go away and eventually go bankrupt while constituents are left to pick up the pieces.
The two existing vehicles for alleviating fuel poverty—the warm home discount, which reduces bills by £150 a year for those who qualify, and the energy company obligation, which assists people with energy efficiency adaptations, renewable energy adaptations and so on—are both means-tested, which takes us back to the question of cliff edges. Most concerningly of all, those measures are due to end in 2026 unless they are renewed by the Government. The Minister will have an easier conversation with the Treasury if he bears it in mind that the funding for the schemes comes not from the Treasury but from the energy companies.
Full debate: Fuel Poverty
There are already very low margins on every farm, including those in Mid Buckinghamshire. Will the addition of between £50 and £75 a tonne on the price of fertiliser, through the Government’s proposed carbon tax, increase food prices? Who will shoulder that burden? Will it be the farmer, or will it be the consumer?
Full debate: Budget: Implications for Farming Communities
The development of marine renewable energy is getting close to commercial deployment. If we are able to get it across the line, it will bring with it a supply chain that we can build and hold in this country, with a view to exports across the world. That would surely be a great result for any industrial strategy. What will the Government do to ensure that their industrial strategy helps marine renewables reach full commercial deployment?
Full debate: Industrial Strategy
Fifty years later, as we enter a period of decline in oil and gas as part of our economy, the just transition matters to us more than anywhere else. We see opportunities for our community in the development of, for example, marine renewables, tidal power and tidal stream generation, but if we push oil and gas off a cliff before the technologies are mature enough to come on stream, people will not hang around in places such as Orkney or Shetland, waiting for something else to happen. They have a history and a legitimate expectation of working in good, well-paid jobs, and they will take their skills elsewhere.
Full debate: Rural Depopulation
Q8. Last month, SSE, the operators of the new Viking energy wind farm in Shetland, was paid £2 million in order not to generate any electricity from it. Is there not something badly wrong with an energy market that pays big corporates not to produce electricity while the people living among the turbines endure some of the highest levels of fuel poverty in the country? Will the Prime Minister and the Government now look seriously at the idea of an islands tariff, so that islands communities such as those represented by me and his hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) may see some genuine benefit for the community from hosting such renewable energy developments? ( 900262 )
Full debate: Oral Answers to Questions
Q3. I know that you, Mr Speaker, want to join me in sending condolences to the friends, family and colleagues of our former colleague, Lord Andrew Stunell, who served with exceptional diligence and grace as MP for Hazel Grove in this House, and who passed away very suddenly on Monday. When the BBC ends longwave radio transmission next year, that will also end access to electricity tariffs such as Total Heating Total Control, which is relied on by almost 1 million households across the United Kingdom. Switching to smart meters will not fix that for most people, not least because the roll-out programme is so far behind. Will the Prime Minister, or possibly the Secretary of State for Energy Security and Net Zero, get energy companies, the regulator and customer groups together, so that we can stop passing the blame around, and find a solution that does not yet again leave people in the highlands and island behind and out in the cold? ( 902599 )
Full debate: Oral Answers to Questions
I apologise for not being here at the beginning, as I was chairing the Energy Security and Net Zero Committee. The other leg of justice that must be served is compensation, which I am sure the right hon. Gentleman was coming to anyway. Compensation is not just for those who were convicted, as a lot of people out there dipped into their own pockets and paid money to the Post Office to keep the heavies away and prevent prosecution. Those people also need to see justice. One of the big things is moving the legislation forward so that all that happens and the money gets to the people.
Full debate: Post Office (Horizon System) Offences Bill
At the moment, our farmers find themselves in a perfect storm. Leaving the European Union brought with it the repatriation of agricultural policy, as well as a number of trade deals with other countries in other parts of the world. The changes to agricultural support risk reducing the amount of food produced on the land; at the same time, we see land given over to other, non-food-producing purposes, such as the creation of renewable energy resources or the process of growing trees—rewilding. Those trade agreements open up our markets to imported food. If that food is not produced according to the same welfare and environmental standards that we expect our farmers to meet, it will inevitably lead to an imbalance in price, which makes it more difficult for our farmers to compete on price. At a time when we see huge pressure on family budgets as a consequence of a massive spike in the cost of living, consumers will increasingly buy on the basis of price. It seems to me that we are putting ourselves in a place where our own farmers are least able to compete on the basis that consumers are most likely to buy on.
Full debate: Groceries Code Adjudicator
I am grateful to the Minister for that answer. He may be aware that there are many in the shipping industry who are concerned that including lifeline ferry services, such as those that serve my constituency, in the emissions trading scheme could hinder rather than help the process of decarbonisation. The EU has already recognised that by giving its lifeline ferry services a derogation until 2030. Will the shipping Minister—I know it is not this Minister’s responsibility—engage with operators in Scotland and elsewhere to ensure that we are not hit by the law of unintended consequences?
Full debate: Oral Answers to Questions
I want to pick up where the hon. Member for Waveney (Peter Aldous) left off. While there are a lot of lessons to be learned from the conduct of AR5, it is worth a short pause to consider the successes of contracts for difference. As a mechanism for deployment and growth in renewable energy, they have been remarkably successful. Ultimately, however, they are a tool like any other, and the quality of the product that we have at the end of it is dependent on the use to which that tool is put.
I hope that AR5 is a warning shot—if I may put it that way without mixing too many metaphors—and that in future there will be a better dialogue between Government and industry, because the outcome that we got was pretty much the outcome that the various industries had been predicting. It is, I think, for the Government to keep engaging with industry to learn lessons and see the continued growth in our renewables. Quite apart from the need to meet our net zero targets, for which the growth of renewable energy will be absolutely critical and essential, the question of energy security will be dependent on this. Had we taken some of these decisions earlier, pushed them with more vigour and better resource and used the tools differently, we might be in a better place for energy security today, but we are where we are, and what is important now is that we are able to build the industries for the future.
Full debate: Contracts for Difference Scheme
The other threat to all built heritage, of whatever age, is climate change. We see that manifesting itself in so many different ways. Skara Brae on Orkney has been listed as a site that, because of its sheer location, is particularly vulnerable to the threat of climate change. It would be an absolute tragedy for our country if we were to lose such a site. I would like to see our Government in Scotland and the UK Government in Westminster come up with a more strategic and co-ordinated approach to ensure that these very important sites are maintained for future generations.
Full debate: Heritage Sites: Sustainability
T4. Directors at Ofgem are on the record as saying they are already doing everything that needs to be done to meet the country’s net zero targets. I do not know anyone outside Ofgem who sees that as anything other than dangerously complacent. Is it not now time for the Minister to give a direct mandate to Ofgem to include meeting net zero as part of its remit? ( 905097 )
Full debate: Topical Questions
The Greensand project in Denmark has proven the concept of carbon capture, usage and storage, but we know that the supply chain in this country is fragile. Indeed, if others go ahead and develop CCUS, that is where they will go. Companies such as EnQuest in Shetland, which operates the Sullom Voe oil terminal, are keen to do exactly what the Secretary of State is talking about. Would he or the Energy Minister agree to meet me and the operators of EnQuest to hear what it needs to get that exciting project across the line for a final investment decision?
Full debate: Carbon Capture and Storage
I congratulate the right hon. Member for South Northamptonshire (Dame Andrea Leadsom) on bringing this subject to the House. Her metaphor of the three-legged stool is a very good one. If we can move away from the immediacy of the problems, this debate allows us a few minutes to think about the issue in a more strategic manner. The point about the three-legged stool is that it works as a stool only if it has all three legs. If we take away any one of the three legs—affordability, security or decarbonisation—the other two will not achieve their purpose. The debate is often frustrating and ill served by false, binary choices. The point about a “trilemma” is that the choices that have to be made are about the balance of the progress we make on the three heads of the challenge, as well as the different means by which we seek to achieve them.
In many ways, Orkney and Shetland demonstrates the energy transition issues and the trilemma in microcosm: we have long, dark, cold winters, we have poor-quality housing stock and we are off the mains gas grid, so we do not have the same opportunities for access to cheaper heating as other parts of the country. The affordability element therefore very much matters to us. We generate more electricity from renewables than we can use for ourselves, but because of how the market was regulated until recently, when we finally got consent for a cable to the Scottish mainland, we have not been able to maximise the benefits. It is galling that although we are leading the way in decarbonised energy production, we end up paying more because we are part of a market that is regulated for the UK as a whole and that relies too heavily on the wholesale price of gas, as we are now seeing.
For the past 40 years, my constituency has been home to the two largest oil terminals in western Europe: Flotta in Orkney and Sullom Voe in Shetland, which provide a visual demonstration of the just transition. EnQuest, the terminal operator at Sullom Voe, is now working on projects involving hydrogen, carbon capture, use and storage, and offshore electrification of production. It is a visual illustration of transition, but again it shows just how ill served we are by binary choices. All the time, we seem to be told, “You can have renewables or you can have hydrocarbons, but you can’t have both.” That is dangerous nonsense. We have allowed production of oil and gas on the UK continental shelf to decline in recent years, and it has been to our detriment. It was never put in these terms at the time, but I cannot think why anyone ever thought it would be a good idea to rely on Vladimir Putin for the purchase of our gas and Mohammed bin Salman for the production of our oil when we have a rich resource on our own doorstep. As we heard from the hon. Member for Banff and Buchan (David Duguid), the production of oil and gas in the North sea or to the west of Shetland is much less carbon-intensive than importing it from other parts of the world.
The point, surely, is this: it is not an either/or. There is no route to decarbonisation and achieving net zero other than one that goes through oil and gas production. I do not want to see the future generations of my constituents working in oil and gas. I do want to see them work in renewables, but I think that that will be much more likely if we take a long, hard, clear-eyed look at what happens in the future with oil and gas production on our own continental shelf.
Full debate: Energy Trilemma
It is worth reminding ourselves what is at stake. The United Kingdom has the potential to develop about 1 GW of tidal stream energy by 2035 and up to 11.5 GW by 2050. That is equivalent to over three times the generation capacity of Hinkley Point C. The costs of technology have fallen significantly in recent years. Analysis published by the Offshore Renewable Energy Catapult this autumn showed that that tidal stream can become not only a significant part of our future energy mix, but a cost-competitive one. If the sector is supported, by 2035 tidal stream could provide power at £78 per megawatt-hour; compare that to Hinkley Point C at £92.50 per megawatt-hour. By 2042 that figure could be £60 and by 2047 we could be looking at something in the region of £50. That is about £10 per megawatt-hour more than wind and solar today but, importantly, without the challenges of unpredictability.
Marine renewables is an industry that has the potential to support thousands of jobs across the United Kingdom—good-quality manufacturing jobs that bring with them the opportunities to grow an export industry, which would be an obvious route towards a just transition for many of those currently working in oil and gas. The oil and gas industry has been a critical part of the economy of the Northern Isles for the last 40 years, and I believe it will be a critical part of getting to net zero. Indeed, it is difficult to see how we could get there without having an industry on the UK continental shelf. The industry has a number of excellent apprenticeship programmes. When I talk to the young men and women who are undertaking those apprenticeships now, at the start of their career, I am struck by the fact that they tell me they believe that by the end of their working lives they will be working not in oil and gas, but in marine renewables.
If the hon. Member wants to send me his CV, I will keep it on file for when I next have a vacancy for a speech writer. I am at risk of being too consensual, but he knows my views on this and we have to find a way to recognise that in energy security there is no silver bullet. Contributions will be made by all sectors on the journey towards net zero.
The Offshore Renewable Energy Catapult estimates that the UK’s tidal stream industry could support 4,000 jobs by 2030 and 14,500 by 2040. Those high-wage, high-value jobs would be focused on coastal areas. UK tidal stream projects use an average 80% UK content in the world-leading arrays, creating supply chain with high rates of return on public investment. As with offshore wind, the supply chain is widely dispersed across the UK—for example, Leask Marine is a vessel charter, commercial diving and international marine construction service based in Kirkwall, but it operates around the world.
In its briefing for this debate, Nova Innovation called for the speeding up of CfD timescales and consent processing for tidal stream sites. Section 36 consent, which is required to qualify for a CfD, takes at least three years. That is driven by the requirement for two years of bird and mammal surveys and the nine-plus months it takes to receive a consent decision—it is often much longer in practice. In contrast, the EU target is three months for renewable energy project consent. Section 36 is required only for onshore projects greater than 50 MW, but the offshore limit is 1 MW.
Overall, it takes at least six years from conception to the commissioning of a UK tidal energy site. That timeline is similar across the nations of the UK. In contrast, developers in Canada can go from a greenfield site to first power in two to three years. That puts the UK at a competitive disadvantage for project investment and we risk losing our lead in tidal energy. We should also increase the pace and scale of investment in the UK’s electricity grid so it does not remain a constraint on renewable energy development.
EMEC is taking proactive steps to mitigate the lost funding from Interreg, but—let’s be serious—it will not make good all the lost funds. Direct revenue funding of £1.5 million a year for four years to replace the Interreg gap will enable EMEC to preserve the high-quality jobs and the growth sector, supporting levelling up, protecting that internationally accredited and strategically located facility, and providing recognition as a national asset in pursuit of the UK’s aspirations to be a global research and development superpower. It will allow EMEC to enable further growth and diversification in new technology areas, including wave and tidal array testing, green hydrogen integration, maritime and aviation decarbonisation, and floating offshore wind research and innovation, all with the aim of developing the domestic supply chain and the manufacturing capability of UK plc as a whole in the pursuit of economic growth and reaching net zero.
Full debate: Marine Renewables: Government Support
I have just come back from Lithuania. Hundreds of women have escaped to there, having lost their democracy as a result of Putin’s bombing and his oppressing his people at home. At the same time, we have a situation in Hong Kong where democracy is being taken away. Yet here we are taking away the right to peaceful protest, which has given us the suffragettes, climate change activists, peace campaigners and trade unions. This horrific bit of legislation will completely undermine the right of trade unionists to picket, at a difficult time in our economic evolution; it is purely terrible and it should not be brought forward. It is completely unnecessary, it will be very damaging to trade union relationships and it will drive protests underground, which, taken alongside the right for covert intelligence agents to act above the law, may lead to unintended consequences and will put the public at risk. Democracy and our public are at risk from this dreadful Bill, and it should be reversed as quickly as possible.
Full debate: Police, Crime, Sentencing and Courts Bill
Q5. Appeasing murderous despots will never be the route to security of energy supply. Would it not make more sense for the Prime Minister to be here talking to UK energy industries? Should he not be talking to renewable energy developers about what they can do to bring their product onstream quicker? Should he not also be speaking to our offshore oil and gas industry about what it can do in the here and now to improve security of supply and to assist in the journey towards net zero? ( 906097 )
Full debate: Oral Answers to Questions
“Incentivising developers to bring forward alternatives to market sooner than if these tax changes were not made as affected businesses look to alternatives. In the short-term, and as the market for alternatives develops, the Government’s view is that taxing pollution and dangerous greenhouse gas emissions the same, regardless of whether the fuel is burnt on or off road, is fairer than allowing wide distortions to continue.”
Full debate: Rebated Fuel Rules: Construction Industry
I thank the Secretary of State for the support that she has given in the past to the development of tidal stream renewable energy generation. Now that we have the very welcome ring-fenced pot for tidal stream energy, will she charge her Department with the development of a strategy to ensure that we can export that expertise as we move towards commercialisation?
Full debate: Oral Answers to Questions
T6. I thank the Secretary of State for International Trade for her visit earlier this year to the European Marine Energy Centre in Stromness, when she heard that it has a very compelling case for the next round of contract for difference auctions to have a pot within a pot for tidal stream generation. We are disappointed that the first draft does not include the pot within a pot, so will she and the President of COP26 renew their representations to the Treasury for its inclusion so that we can take advantage of the opportunities? ( 903727 )
Full debate: Oral Answers to Questions
“Crofting is good for food, and also has very impressive environmental and climate-change mitigation credentials. And crofting is about the people—crofting has maintained communities in remote rural places.”
Full debate: UK-Australia Tariff-free Trade in Agricultural Goods
This Bill has had an exceptionally long gestation, and it is a matter of great regret to me and to my party that, unfortunately, we have learned today that it is to be delayed even further. This should be an area where there is an easy consensus to be built. Surely, in the year when we are due to host COP26, this should be a matter that brings all parties together to achieve meaningful advance. It is a matter of infinite regret that we are not able to do so.
My first plea to the Minister and the Government is this. If we are to have further delay, can we please use the time a bit better than we have so far? Can we ensure that when we host COP26 later this year, we can point to a significant achievement as an instance where we are leading the world, rather than being pulled along in this area of vital importance to all future generations?
I worked regularly with the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Taunton Deane (Rebecca Pow), on the subject of plastic pollution when she was on the Back Benches. It pains me to say that in that respect, the Bill is a major disappointment. We realise that as a consequence of many of the short-term changes that were necessary to tackle the pandemic, the progress that we had been making on the use of single-use plastic has been put on the back burner. That is regrettable, and possibly necessary, but a concerted effort by the Government is required. The pandemic and the restrictions under which we are living will not last forever, but it feels as though the plastic pollution that we are generating now will do so. It will certainly be with us for decades. That is why we must look to the lessons of how we constructed the Climate Change Act 2008, for example, and get on with the business of setting meaningful targets and having meaningful ways of holding the Government to account for meeting them.
We are in a climate and ecological emergency. Considering the scale and urgency of the crisis we are facing, it is staggering that the Government have seen fit to postpone the Bill yet again. We have a responsibility to take rapid and radical action towards sustainability and environmental protection. Delaying this core piece of legislation is a major setback to that work. In the run-up to hosting COP26 later this year, the Bill should be an absolute priority, as should commitment to maintaining and enhancing environmental protection. That it is not, speaks volumes about the commitment of this Government to the environment, to our global responsibilities and to future generations.
The Bill, as it stands, has been called a missed opportunity by the Environmental Audit Committee, and has failed to enshrine action on climate change at the heart of Government policy. Environmental campaigners and organisations across the board have been clear that we need ambitious targets, enforced by a fully independent watchdog, with significant powers to actively dissuade the contravention of environmental legislation. However, if the watchdog is to be effective, it must be capable of holding the Government to account, and that means full independence and serious powers to prosecute and impose financial penalties. The Bill currently allows the OEP to be guided by the Secretary of State, threatening to turn it from a watchdog into a lapdog.
I thank all those right hon. and hon. Friends and Members who have tabled amendments and contributed to today’s debate, helping to scrutinise this Bill. They have highlighted the importance that so many people place on the issue of the environment, and how important it is that we tackle biodiversity loss, climate change, and environmental risks to public health. In particular, I thank those Members who are so positive about this Bill—which, of course, I am as well—including my hon. Friend the Member for Meriden (Saqib Bhatti), who has done so much work with his faith groups on the issue of the environment. I also thank my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) and my hon. Friends the Members for Milton Keynes North (Ben Everitt) and for Keighley (Robbie Moore) for their enthusiasm. This is a phenomenal ambition, as my hon. Friend the Member for Milton Keynes North said, and it is a good day at the office—in fact, it is very exciting to get out of the office.
Full debate: Environment Bill
I say timely because it follows hot on the heels of the speech by the Prime Minister last week, where he announced plans for a green industrial revolution creating 250,000 jobs. That has the potential to be a highly significant milestone on the road to net zero carbon emissions by 2050. The speech included many laudable goals, and it is my experience from many years in the House that where ambitious targets are made and married to genuine political commitment, that building cross-party consensus in the House for them is not a difficult process; I do hope that we will be able to do so.
We have representatives here from Wales. It is true to say that Bardsey will become the first island in the world to be entirely powered by tidal stream. The other projects in Morlais, Pembrokeshire and Perpetuus Tidal Energy Centre on the Isle of Wight, which is one of five centres funded through the Government’s TIGER project, give an idea, as the Minister is aware, of the potential. Does the right hon. Gentleman agree that, with COP26 in Glasgow next year, if the contracts for difference auction were to be just beforehand and marine energy to be given a fraction of the capacity there, that would be a fabulous project to highlight at COP26?
Full debate: Marine Renewables: Government Support for Commercial Roll-out
My constituency has been at the heart of this nation’s energy supply for the past 40 years. As we have relied on hydrocarbons, we have been home, very successfully, to two of the largest oil terminals that bring in hydrocarbons —oil and gas both—from the North sea and latterly from the area to the west of Shetland. We have a long history of being central to this country’s energy supply. We are now coming to a phase of our nation’s history in which we anticipate that our reliance on hydrocarbons will wind down. My constituency remains equally committed to playing a full part in energy provision for our future needs. It is therefore somewhat frustrating for us still to find that the opportunities that we have to contribute to green renewable energy in the future are somewhat frustrated by a lack of action and recognition on the part of the Government in respect of the opportunities that exist.
Full debate: Climate Change Assembly UK: The Path to Net Zero
I thank the Minister for the meeting last month. We are now engaging with the Treasury in respect of revenue support for the sector, and any support that she can give it will be very welcome. In the meantime, however, we have the prospect of the energy White Paper. Will she use her offices to ensure that the potential for marine renewable energy generation is fully recognised when that White Paper comes to publication?
Full debate: Oral Answers to Questions
T9. Renewable energy developers working on wave and tidal power have presented a proposal for what they call innovation power purchase agreements, a mechanism whereby they might finally get their devices over the line into commercial deployment. Will the Chancellor, or perhaps the Chief Secretary, work with the Secretary of State for Business, Energy and Industrial Strategy on a proposal that could allow them and the developers to see the fruition of what could be a very important part of the Government’s industrial strategy? ( 907499 )
Full debate: Oral Answers to Questions
The root cause of the issues we are considering have as much to do with the recent history of the management of the fishing industry as with the skills shortages with which we currently have to deal. Historically, fishing boats have recruited labour—the deck hands—from their own home ports, such as coastal and island communities, but rarely from much further beyond. In recent years, although that situation has changed, the labour market has become much more competitive. Young men considering a career in fishing these days may also consider and find a very well paid career in the oil and gas industry, for example, in Shetland or in the north-east of Scotland. Renewable energy is now a source of employment, and there is also of course the merchant navy.
The situation led to the creation earlier this year of the Fishermen’s Welfare Alliance, a coalition of industry bodies and other associated organisations, including the Fishermen’s Mission and the Apostleship of the Sea. I hope that the Minister has received and is considering the alliance’s submission about a new scheme. It is not in essence a new scheme: we seek the resurrection—or re-creation—of a limited concession that operated successfully between 2010 and 2012. Other such concessions exist, and the Minister will be aware of the recently renewed one for boats working in support of offshore renewable energy developments. Such schemes can be, and often are, drawn carefully for a specific purpose.
Full debate: Fishing Industry: Visas for Non-EEA Citizens
Some of the most exciting and innovative work in engineering at the moment is being done on the development of renewable energy from wave and tidal stream power. The sector itself has come up with a proposal for innovation in power purchase agreements. Will the Minister, or perhaps some of his colleagues, agree to meet me with a delegation from the sector to discuss how it can contribute to the Government’s industrial strategy?
Full debate: Oral Answers to Questions
The biggest opportunity for islands to contribute to our future wealth and prosperity in this country comes from the development of renewable energy. The first generation of wind turbines was tested in a prototype on Burgar Hill in Evie, in Orkney. Ever since then, those of us within the isles have been enthusiastic in our promotion of the next generation of electricity and energy development.
Full debate: Economies of the UK Islands
That this House has considered support for renewable energy generation in island communities.
I think it will be helpful for those who might be watching our proceedings from elsewhere to be quite clear not only what the debate is about but what it is not about. It is not about individual projects that may be under consideration; there are a number in my constituency, including in Orkney and with Viking Energy in Shetland. To say that we need a strategy to unlock the potential of renewable energy generation is not to say that any individual project in itself is right or should go ahead, nor is it to be confused with the consultation currently being undertaken by Ofgem on replacing Shetland’s power station with a 278 km, 600 MW high-voltage direct current cable. That is exciting some comment at the moment, but it is a proposal of which I remain to be convinced; having been around this course for many years, I do not regard it as quite so difficult or challenging for that particular project to get a cable on the seabed.
The debate is about how Government and the forces of government can unlock the potential for renewable energy generation that we all know is there within our island communities. A study commissioned jointly by the then Department for Energy and Climate Change and the Scottish Government in 2013—the “Scottish Islands Renewable Project”—estimated that the Western Isles, Orkney and Shetland could between them supply up to 5% of Britain’s total electricity demand by 2030. That is a quite significant prize and it is within our grasp. However, it is something that we already know will only happen if we can get everybody working together.
Full debate: Renewable Energy Generation: Island Communities
It was also disappointing for Opposition Members that the Chancellor seemed to have nothing to say about the need to tackle climate change. There are so many possible measures, many of which are not particularly expensive. There could have been more measures to encourage energy efficiency, and only a small amount of money would be necessary to develop renewable energy—most notably, in my constituency, through wave and tidal power generation—but there was absolutely no mention of those things. At a time when there are so many other pressures calling for the Government’s attention, it is more important than ever that the long-term issues—of which climate change is probably the most clamant—should not be forgotten.
I am not, however, one of those who think that a determination to tackle climate change means that we should turn our back on hydrocarbons. They remain an important part of our economy, particularly in my constituency in the Northern Isles. I was a little underwhelmed by the Chancellor’s offer of a discussion document, especially since it was the second such offer, but on reflection, and having heard a few other emerging details, I believe that this at least shows an understanding of the need to take continued, serious action to help the North sea oil and gas industry.
Full debate: Budget Resolutions
Before the Select Committee on Energy and Climate Change was dissolved, I had the pleasure of serving on it. Our last report on the energy revolution looked at what is being done in other parts of the world and, in particular, on the west coast of America in California and Seattle. It is apparent that many technologies that will assist consumers in the demand-side management of their energy use are not that far over the horizon. The foundations that we could lay through the smart meter roll-out could be built on in a significant way, both from the point of view of consumer flexibility and choice and in contributing to some of the wider issues about fuel poverty and climate change.
Essentially, as I said at the start, the roll-out is a good thing, which the Government should be doing. We should not, however, pursue a timetable that will be counter-productive to achieving what we all know and agree is a good thing. To take a step back, I suspect that, since May 2015, there has been a lot of churn in Government energy policy, with a lot of changes, particularly in relation to subsidies for renewables and other areas. A lot of high-level political decisions have had to be taken, and the Department of Energy and Climate Change has been folded into its current home. The programme looks as though it might have slipped through the cracks of Government. It needs somebody to take it up, to give it direction and to ensure that, at the end of the day, we have something that merits and is deserving of the original vision we had when we embarked on the programme. It needs a political hero, and I can think of no finer a political hero than the Minister.
Full debate: Smart Meter Roll-out
I will not detain the House much longer because I do not have the time, but in evidence to the Energy and Climate Change Committee I challenged the chair and chief executive of the newly created Oil and Gas Authority to bring the operation of the maritime sector in the North sea within its remit, but they flatly refused. It seems to me as though they knew that there was something nasty underneath the stone and for that reason they were not prepared to lift it.
Full debate: Living Wage
I am grateful to the Minister for that answer, but she will know that the application for state aid clearance for the island strike price has been ready and sitting in the Department since the new year. The continuing failure to submit it is causing enormous uncertainty and a massive loss of confidence among renewable energy generators in the Northern and Western Isles. Will she agree to meet me and the hon. Member for Na h-Eileanan an Iar (Mr MacNeil), along with a delegation of local renewable energy developers, to discuss this so that she can hear from the horse’s mouth and understand just how serious it is for our industry and our islands?
Full debate: Oral Answers to Questions
The right hon. Gentleman makes an important point. Indeed, a carbon capture strategy that sets out a longer-term route for our carbon capture and storage would play an important part in ensuring that investment for CCS was available. He also makes the point that the cancellation of those pilot projects has cast quite a pall over the future investability of carbon capture and storage projects, despite the fact that many such projects are now getting under way across the world.
It is important to reflect on how we will import the relevant technology under a new CCS strategy and how we might keep as much as possible of the rest of the supply chain and other CCS arrangements in the UK, particularly the substantial developments and intellectual property gained from the White Rose and Peterhead projects, which must be retained in the UK for use in future CCS developments. All of that should be part of a strategy, but we simply do not have one at the moment. Having a strategy in place would enable us at least to recover substantially from the immense setback caused by the cancellation of those pilot projects. The new clause calls for such a strategy to be articulated at an early stage and for us to be clear about exactly how and why we will keep CCS on track for the future.
We have heard about targets today, but new clause 8 does not set a new target. It relates to the undertakings in part 1 of the Energy Act 2013 relating to setting a target for the decarbonisation of the energy sector by 2030. Part 1 makes it clear that the Secretary of State has a duty to ensure that the carbon intensity of electricity generation in the United Kingdom is no greater than the maximum permitted level of the decarbonisation target range. There is a clear undertaking in the Act to set a decarbonisation target range and a requirement for the Secretary of State to take related actions.
As I have mentioned, that target already exists. It has done so since the Energy Act 2013 was passed. The outstanding issue at the time was not whether there should be a target but what the target range should be. Under the legislation, it is up to Ministers to clear up that matter through secondary legislation. It is not a particularly small matter: it is in the gift of Ministers to decide whether the target for decarbonisation is strong or not. During the passage of that legislation, it became clear that Members across the Committee envisaged the target being strong and in line with the aim that carbon reductions should make a proper contribution.
“a power was taken within the Energy Act 2013 which gives the Secretary of State the ability to set a ‘decarbonisation target range’ for the electricity sector, for a year ‘not before’ 2030. This allows a target to be set on the same date or after setting the Fifth Carbon Budget which must be set before end of June 2016 (measured in emissions intensity in grams of CO 2 per kWh)…it is the intention of this Government not to exercise this power. This position is consistent with our manifesto pledge not to support additional distorting and expensive power sector targets.” –– [ Official Report, Energy Public Bill Committee, 4 February 2016; c. 206.]
Clause 8 does not propose an additional distorting target. It is a target that was included in the Energy Act 2013, and it is incumbent on the Government to take action on the decarbonisation target range through secondary legislation. It is extremely disappointing that the Minister in the other place indicated that the Government were not going to exercise this power. The new clause would require the Secretary of State to set a decarbonisation target and discharge section 1 of the Energy Act 2013. I am sure that, in the light of our discussions this afternoon, Members would agree that it is extremely important that such targets should be placed as waystations on our way to 2050. That is what the new clause seeks to achieve.
New clause 9 addresses an aspect of that decarbonised structure for energy in looking at the perverse results of the first two capacity auctions in not procuring any long-term new large generating plant; instead, almost the only long-term outcome was the procurement of diesel sets as generators. More than 1 GW of generators was procured, and they are more polluting than coal, which the Secretary of State has pledged to take off the system by 2025. The new clause adds to the 2013 Act’s requirements relating to fossil fuel-generating plant that is granted a 15-year capacity contract. That plant must adhere to certain conditions if the contract is to be granted. One of those conditions is the emissions performance standard. Section 57 of the Act contains a target or formula that, under subsequent secondary legislation, has led to a performance standard of 450 grams per kWh being established.
Hon. Members will recall that when the Bill arrived in the House from another place, clause 80 sought to simplify the accounting of the UK’s carbon budgets under the Climate Change Act 2008. That clause was removed during the passage of the Bill in Committee. This new clause seeks a slightly different route to the goal of more effective carbon accounting in the fifth carbon budget and beyond. It seeks to make the Government directly accountable for emissions in the sectors covered by the EU emission trading system when determining whether the UK is staying within its national carbon budgets. The EU ETS covers emissions in the electricity sector and heavy industry, and the carbon accounting regulations currently allow the Government to ignore emissions from those sectors when determining whether the carbon budgets have been met. For that reason, the UK’s carbon budgets, as currently designed, fail to provide a framework that offers investor confidence in the UK power sector. In particular, it provides no assurance that the Government will put in place the necessary measures to ensure that the power sector is largely decarbonised by 2030 despite the fact that the Committee on Climate Change has repeatedly indicated that the power sector must reduce emissions to below 100 grams per kWh by 2030 in order to maintain a cost-effective trajectory to our 2050 climate target.
If the accounting rules are changed, the Committee on Climate Change has indicated that it will provide new advice on the appropriate level for the fifth carbon budget, and the committee will for the first time be able to recommend a budget that reflects a cost-effective pathway for UK emissions across the economy. The new clause differs from the original clause 80 in a key respect: while clause 80 prevents any carbon units in the EU ETS from affecting the UK carbon account, the new clause specifically prevents the carbon trading behaviour of private firms from affecting the national accounts, which is what allows the Government to ignore emissions from the ETS sectors. Under the new clause, the Government would retain the option of purchasing and cancelling ETS carbon allowances to offset UK emissions at state level, an environmentally preferable form of carbon-offsetting compared with the many types of international offset credits available to the Government. If exercised, the offsetting option would also strengthen the EU ETS.
The new clause would insert the commitment to zero emissions in the Paris climate change agreement into our domestic law, with the Committee on Climate Change advising on when it should be achieved. It is the right thing to do and the science is clear: the world needs to get to zero emissions early in the second half of this century, and it is worth reminding the House of the debate’s context.
My proposal makes economic, moral and political sense. It makes economic sense because we have to get to zero emissions eventually. It will be tough, so we need to start planning now. We are already aware of some of the tools we will need, but not all of them. We need clean energy supplies, a revolution in the household sector and reforestation. As the hon. Member for Aberdeen South (Callum McCaig), who speaks for the SNP, said, we need carbon capture and storage to trap emissions. We will also need other technologies that are in the early stages of development. Crucially, we need to start the work now so that we can get to zero emissions at least cost. The economic case is proven by the support from the business community, and I thank Aviva, GSK, Unilever, Kingspan, Kingfisher and the broader “We Mean Business” coalition for their backing. The proposal also makes moral sense. Achieving zero emissions is necessary, so it would be irresponsible to pretend otherwise. Future generations will look badly on a generation that stuck its head in the sand and refused to plan ahead.
Full debate: Energy Bill [Lords]
“bad for jobs, bad for investment and can only hinder Scotland and the UK’s efforts to meet binding climate change targets”.
Full debate: Oral Answers to Questions
In Clause 41, the Secretary of State has retained the power to set the consideration payable for licences. This could restrict Scottish Ministers’ ability to set other charges that form integral aspects of the licensing regime: for example, the Department of Energy and Climate Change (DECC) charge a ‘land rental’. This would enable Scottish Ministers to introduce a similar scheme in Scotland.
It remains the case that the operation of the Crown Estate remains unsatisfactory for island and coastal communities—especially those throughout Scotland that seek to establish a future for themselves in the development of marine technologies and renewable energy generation, which continue to rely on the good will and co-operation of the Crown Estate in relation to the construction and maintenance of piers and harbours, and for which the aquaculture industry remains an important source of livelihoods for many people. We need to see that operation devolved, in particular as it relates to the function of the seabed and territorial waters.
Full debate: Scotland Bill
I am sure that if the hon. Gentleman seeks that information from my right hon. Friend the Secretary of State for Energy and Climate Change, it will be forthcoming.
Full debate: Oral Answers to Questions
Transfer from the Department for Culture Media and Sport Energy and Climate Change of £70,830,000 in respect of Urban Broadband (Capital DEL);
Transfer from the Department of Energy and Climate Change of £15,101,000 in respect of the Energy agreement (Capital DEL);
Transfer from the Department of Energy and Climate Change of £2,495,000 in respect of Energy efficiency (Capital DEL);
Full debate: Supplementary Estimate 2014-15
The benefits and opportunities that come to generators of renewable energy in Scotland from being part of that single integrated market speak for themselves. The fact that we are being asked to leave that should be of concern to them.
Full debate: Oral Answers to Questions
Transfer from the Department for Culture Media and Sport Energy and Climate Change of £300,000 in respect of the Edinburgh Pilot Project (Capital);
Transfer from the Department for Culture Media and Sport Energy and Climate Change of £7,350,000 in respect of Urban Broadband (Capital);
Transfer from the Department of Energy and Climate Change of £13,961,000 in respect of the Green Deal (Capital);
Full debate: Supplementary Estimate 2013-14
That is absolutely the case. Scotland has a tremendous opportunity to contribute to the growth of renewable energy as part of the United Kingdom, but that will take subsidies that come from consumers’ bills, the cost of which is spread across the whole nation, not simply the households of an independent Scotland. It would be madness for the renewable energy industry to support Scottish independence.
Full debate: Oral Answers to Questions
I am grateful to the hon. Gentleman for allowing me the opportunity to remind the House of this Government’s great achievement in establishing, and putting out for consultation, a strike price for island communities, which will make the development of renewable energy in communities such as his and mine a viable proposition at long last. That may have a contribution to make to tackling fuel poverty. I have already worked closely with the leader of his local council in this matter, and I urge him to do the same.
Full debate: Oral Answers to Questions
To ask the Secretary of State for Work and Pensions what estimate her Department has made of the number of people seeking employment in the (a) engineering industry, (b) life sciences sector, (c) renewable energy industry and (d) construction industry in Scotland. ( 317737 )
Full debate: Employment: Scotland
To ask the Secretary of State for Energy and Climate Change what discussions his Department has had with the Scottish Executive on the possible extension to Scotland of the boiler scrappage scheme. ( 310377 )
Full debate: Boilers: Scotland