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Damian Hinds's Speeches In Parliament Related to Climate

We've found 23 Parliamentary debates in which Damian Hinds has spoken about climate-related matters.

Here are the relevant sections of their speeches.

• 4 Feb 2025: Children's Wellbeing and Schools Bill (Tenth sitting)

  By the way, Ministers will still get a procession of people asking for this or that to be put on the curriculum. Spoiler alert: climate change and financial education are both already on the national curriculum, disguised in different subjects, but that will not stop people coming to lobby Ministers to do it for the first time. Ministers will get a lot more of those visits in future.

  [Source]

• 29 Jan 2025: Rural Housing Targets

  14:30

  I want to talk about housing targets for rural England in general and for my constituency of East Hampshire in particular, and I want to talk about three dimensions. The first is the balance of development between urban areas and rural areas. There is a general point about the balance in the whole country, but it has particular significance in my area. With the new formula, there is too much emphasis on building in the countryside, which will be bad for economic growth and our decarbonisation agenda, and injurious to the countryside. I will ask the Government to look again at the formula.

  [Source]

  14:35

  That shift from urban to rural is a problem for multiple reasons. One of them is a big theme today: economic growth. I am sure the Minister has a lot of time for the think-tank the Resolution Foundation. Its analysis is that tilting development towards cities, because of the agglomeration effect and other factors, makes a material improvement to growth prospects. It is also important for another theme of the day. We talk about airport expansion and the tension between economic growth and decarbonisation. When housing moves towards the countryside, that is bad for decarbonisation, because the numbers are so high that houses have to be put everywhere and it is not possible to focus on the relatively small number of places that have good strategic transport links. That hardwires reliance on the motor car, which in constituencies such as mine means two cars per couple in a household.

  [Source]

  15:57

  We also need to make sure that the balance is right between urban and rural areas. I hope the Minister will reflect further on some of what has been discussed today, which is not made as a nimby-type argument, but is about making sure we can maintain our countryside—that is important for town dwellers as well as for rural dwellers—and helping the Government to deliver on their correct objectives on economic growth and decarbonisation. Thank you, Ms Jardine, for presiding over the debate.

  [Source]

• 11 Nov 2024: Rural Affairs

  18:45

  Rural Britain is different. The rural economy is different, quality-of-life issues are different, the profile of crime is different—almost everything is different. In some ways it is better—we have somewhat better air quality, and we spend less time sitting in traffic—but there are also many challenges. The sheer distances involved affect so many things, from people’s ability to access regular specialist healthcare treatment to their ability to get the right T-levels placement for their career. That, in turn, has an impact on health inequalities and social mobility. The costs of provision mean that many of our constituents are off mains drainage, and many more again are off the grid. That has implications for their costs and, indeed, for decarbonisation.

  [Source]

  18:52

  The agricultural property relief and business property relief changes will cut right into this asset. I have a constituency example, a 50-acre farm with an estimated farm value of £5.5 million, but the profit from it is only £19,000 per year. In the event of the demise of the parents, the liability could be £900,000, and there is no way with a return on total capital of 0.35% that they can do anything other than sell it. That matters not just to that family but to all of us. First, there is the concern that larger businesses will come along and buy up these family farms, and they are not necessarily buying them to plant crops or rear livestock; they may use them for renewable energy projects or carbon credit use, and that will mean less food production. Secondly, being aware that a tax is coming upon death, the current generation farming the land will be disincentivised from investing in the farm, knowing the return effectively will be lower. For those two reasons, it does not just matter to those families; it matters to every single one of us in this Chamber and every single one of us in this country, and I ask the Minister to please think again.

  [Source]

• 29 Feb 2024: Colleges Week

  Particularly in areas of even lower unemployment, however, skills matching becomes vital for the local economy. I also join my hon. Friend the Member for Harrogate and Knaresborough in congratulating both Harrogate College and the Luminate Education Group on their work on the renewable energy skills hub. That is a great example of colleges being future-looking, forward-looking and innovative, making sure we are equipped with the skills for the future and creating facilities that contribute to that.

  [Source]

• 7 Jul 2022: National Security Bill (Second sitting)

  14:19

  Carl Miller: No, there is not. In fact, I am sure it does, and that is one of the big trends we are seeing. We ran an effort over COP26, and we saw that there were certainly various kinds of organised attempts to manipulate big global thematic conversations about climate action, for instance. Given the barriers of entry into this world, I also do not think that it will be national elections; it might be quite small and local events that see some level of manipulation happening, too.

  [Source]

• 20 May 2021: Restoration and Renewal of the Palace of Westminster

  13:14

  The cost of the decant is one thing. A much bigger consideration is the cost of the project itself—the thing we are decanting for. Here, again, there are choices, trade-offs and compromises. As my right hon. Friend said, it is a question of priorities. This project is called restoration and renewal, and clearly there is a balance between those two things. We must restore, but how much renewal is right for taxpayer value in aspects such as visitor access or the education function? In the approach towards the full business case, the programme will be working up a bare minimum option—what is essential to arrest the decay of the buildings—but also conducting value analysis in 14 categories, from logistics operations to environmental and net zero aims to visitor facilities, to see where it may make sense from a value perspective to go beyond that minimum.

  [Source]

• 12 May 2021: Better Jobs and a Fair Deal at Work

  There is so much change going on in the world, with, for instance, robotics, artificial intelligence, machine learning and voice computing. Any one of these things on their own could constitute an industrial revolution, but right now they are all happening together, and on top of that we have the opportunities and changes that come from leaving the European Union, what we have to do around the net-zero ambition and then of course the new challenges that we face as a result of this pandemic.

  [Source]

• 11 Mar 2020: Budget Resolutions

  18:05

  It has also been a pleasure to hear what the Government are doing in this Budget, which directly hits some of our most important objectives around climate change, levelling up and spreading opportunity, and driving productivity. I particularly want to talk about the last of those. Productivity can be boosted by a Budget, but productivity also boosts a Budget. All Chancellors need to find more cash—first, because in any year there are always some taxes that are in, or are going to be in, terminal decline, such as taxes on tobacco, on fuel and on hydrocarbons. Some taxes turn out to be more successful in their aims than anticipated, such as the sugar tax or soft drinks industry levy, and therefore take in less than first anticipated. There are always new priorities—for my right hon. Friend, they are in delivering on the key levelling-up and investment agenda. Then, of course, there is the unexpected. Nothing could be more devastating and more unexpected than a global pandemic. We must be ready to tackle these things when they come.

  [Source]

• 5 Feb 2020: Transport

  17:40

  Climate change is the defining challenge of our age. Although there is still so much to be done, we can take some pride in the fact that this country has been decarbonising faster than comparable countries in the G20. Much the greatest part of that reduction so far has been our success on energy supply; transport is now the sector with the most emissions, and we must therefore prioritise it strongly.

  [Source]

• 4 Feb 2020: Net Zero Targets and Decarbonising Transport

  09:32

  That this House has considered net zero targets and decarbonising transport.

  It is a genuine pleasure to see you in the Chair, Ms Nokes, and to have an opportunity to serve under your chairmanship. Tackling climate change is the defining challenge of our age. In the developed world—the rich world, with our higher per capita emissions—our responsibility is all the greater. I was proud last year when the UK became the first advanced economy to set in legislation a date for net zero, and I am pleased today that we are taking a further practical step by bringing forward the phase-out of petrol and diesel vehicles to 2035.

  The UK has been decarbonising more quickly than any other G20 country, although one would not know that from hearing most commentary in this country. One would think that it is because of some accounting methodology, the cunning exclusion of some categories, or the financial crash of 2007-08. One would think that it all happened before 2010 and that nothing has improved since, or that it was because we have exported all our emissions to somewhere else in the world. But no, this country has made good and sustained progress on decarbonisation under Governments of both types. The greatest part of that progress has been made on energy decarbonisation, and the reality is that there is a limit on how much further we can go in that area with current technology, because of the intermittent nature of the sources—the sun and the wind. It will change as battery technology improves, but that is the situation today. We have made good progress, but it is not enough. To hit our net zero 2050 target, we need to increase the decrease, as it were, in our rate of emissions by about 30% compared with what we have managed per annum since 1990. Partly because of the success in energy, transport is now the biggest single source of emissions.

  There are many different aspects of decarbonising transport, and we have only 90 minutes for this debate. Other colleagues might talk about active travel, such as walking and cycling, or about shipping, on-demand buses, the electrification of rail, heavy goods vehicles, the development of autonomous vehicles, alternative jet fuel technology or what could be the huge potential, eventually, of hydrogen—and it would be a turn-up for the books if nobody mentioned either HS2 or Heathrow airport. We could talk about many different aspects, but I will concentrate on roads, which is the biggest category, and specifically cars.

  [Source]

  09:46

  My hon. Friend is not only an advocate for walking and cycling but, in his high-vis jacket, a very visible advertisement for it. He is absolutely right, and that is another type of modal shift. Holland is in a slightly different position, in that it is a lot flatter than this country, which makes a huge difference. That should not take away from the fact that there are plenty of places in this country—London is one of them—that are pretty flat, and where there could be more cycling. Throughout our country, there is an opportunity for more walking and cycling. Those things have great benefits beyond decarbonisation, in terms of health, fitness and being outdoors.

  [Source]

  09:55

  This country has an important and special role to play in decarbonisation. As well as domestic action, we have a role through international development and climate finance. We showed great leadership in Paris for COP21, and we have in COP26 another great opportunity to convene and make global progress.

  So much can be done locally. Many councils are doing innovative things, including my own in East Hampshire, with walking and cycling initiatives, plans to plant a tree for every resident and local housing development, particularly in the town of Bordon. Like colleagues in the Chamber, I have local groups in my area that show remarkable leadership, starting with children. I am always impressed that schoolchildren are showing thought leadership on climate change. We have great local groups, such as the Alton climate action network and, soon, the Petersfield climate action network.

  The greening campaign began in my constituency back in 2008, and was all about helping individual families and households to know what simple and practical things they could do to help tackle climate change. The campaign eventually spread to 100 towns and villages far and wide. Colleagues may disagree, but in terms of civic society action on climate change, East Hampshire is perhaps the most active area in the country. Members of Parliament can play a really important role to make those things happen.

  We should recognise success in decarbonisation in the UK, while acknowledging that we need to step up our efforts. We must never underestimate the scale of what we need to do—I doubt that anybody here in Westminster Hall is likely to do so—but we should not suggest that nothing has been achieved, because if we do that, people begin to feel disheartened and we will lose public confidence and engagement.

  [Source]

  10:14

  People need to know that there is a big problem, but we are making progress and need to accelerate that progress. They need to know that we can and will do what is necessary. Ultimately, countries like ours need to do more than our fair share because people look to us for leadership. We had our industrial revolution first, so it makes sense to have our decarbonisation revolution first too. Transport must be at the heart of that.

  [Source]

• 28 Oct 2019: Environment Bill

  20:27

  I support this Bill. It is ambitious in its scope and its aims, and it starts, quite rightly, from the viewpoint of natural capital—the realisation that natural assets underpin all other types of productive capital, whether manufactured, financial, human or social. In a sense, the Bill builds on, and is analogous to, the successful Climate Change Act framework, with the environmental improvement plans and the Office for Environmental Protection.

  This Government are determined to have a green Brexit. Notwithstanding what the hon. Member for Wakefield (Mary Creagh) said, it is nonsense to suggest that the European Union is the only thing that will keep this country on a path to a better, greener future. [ Interruption. ] The evidence for that—as she knows, despite her shaking her head—can be seen in, for example, what has happened on climate change, with our leadership on offshore wind, with this country being the first major nation to set an end date for unabated coal and, of course, with our legislating for net zero. These are all things that happened over and above EU frameworks—and all things, by the way, that happened with a Conservative Prime Minister.

  [Source]

  20:29

  Trees stand at the intersection of what we are trying to do on climate change and on clean air, and the importance of the physical environment. I very much welcome the Bill’s provisions on street trees, but we can do so much more. My local council has committed, over time, to planting one tree for every resident in the district, and I wonder what incentives can be given to others.

  [Source]

• 8 Oct 2019: Government Plan for Net Zero Emissions

  09:56

  I congratulate my hon. Friend the Member for Truro and Falmouth (Sarah Newton) on securing this important debate. We all know the scale of the challenge and the imperative it entails. Declaring an emergency comes easy and “net zero” trips off the tongue, but in reality, these things are difficult. To achieve that requires a per annum reduction in our emissions 30% greater than we have achieved on average since 1990. That is why the Committee on Climate Change said that a 2050 target was the latest that our country could credibly maintain our status as a climate leader at the same time as being the earliest at which it would be credibly deliverable alongside other Government objectives.

  I first came across that when I was a junior Minister at the Treasury and I would meet Finance Ministers from other countries, and we would talk about climate change. They would say, “Of course, you in the UK are leaders,” and I would say, “We are? That’s not what I keep reading.” Other countries do look to us, starting with our framework of the independent Committee on Climate Change, the periodic carbon budgets and the rest of it.

  In international studies we are ranked among the top 10 nations for our performance on tackling climate change. We have made huge progress on renewables, specifically offshore wind, where we are a world leader, if not the world leader. We have also set an end date for unabated coal. Our role at COP 21 was pivotal, as was our role in showing leadership in setting the net zero target. Our international work on climate finance through the Department for International Development is pivotal, too.

  We need a bipartisan approach. That has been a great strength of the approach to tackling climate change in this country. It is tempting to say we must always do more and we must do it sooner. As with international aid, there are two aspects to this: first, what we do ourselves; and secondly, how we can leverage our position internationally. However, leveraging our leadership is helpful only if what we say is credible—if we say not only that we are going to do something but that we absolutely will do it. If we are going to say we must do this bigger, better and faster, we must be honest with people about the implications of that. I sometimes hear people talking about change for them versus system change, as if system change has no effect on individual families and companies, but it does: it affects the rate of economic growth, which in turn affects jobs and wages, and of course it affects the taxes people pay.

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• 24 Jun 2019: Topical Questions

  I totally acknowledge and celebrate the fact that school children are among those showing leadership on this issue. We cover climate change in the national curriculum, and rightly so.

  [Source]

• 7 Jul 2016: Finance Bill (Sixth sitting)

  14:12

  It is a pleasure to serve under your chairmanship once again, Mr Howarth. As the hon. Lady said, clauses 130 and 131 increase both the standard and lower rates of landfill tax in England, Wales and Northern Ireland in line with RPI from April 2017 and again from April 2018. She asked how successful landfill tax has been in reducing the amount of waste sent to landfill. Although I do not have the year-on-year figures in front of me, since 1996, when landfill tax was introduced, the amount of waste disposed of at landfill sites has nearly halved, while recycling rates have increased threefold. Of course, reducing landfilling of waste benefits the economy, as we make better use of valuable resources rather than throwing them away. At the same time it helps us reduce greenhouse gas emissions from decomposing waste and meet our climate change targets.

  [Source]

  14:26

  Clause 138 makes changes to vehicle excise duty rates for cars, vans and motorcycles, with effect from 1 April 2016. For cars first registered prior to 1 March 2001, vehicle excise duty is based on the car’s engine size. The rates of duty for those cars and vans before 1 March 2001 increase by £5 only as a result of this clause. For cars first registered on or after 1 March 2001, vehicle excise duty is based on the car’s carbon dioxide emissions. There are currently 13 CO 2 bands. One rate is payable in the first year, and a separate, standard rate is payable in all subsequent years. For about 98% of those cars, the payment will be no more than £5 extra in 2016-17. That means that a motorist already owning a popular family Ford Focus will pay only £5 more.

  First-year rates influence the purchasing choices of drivers buying brand-new cars. They act as a signal at the point of purchase that people can save money by choosing a cleaner car. In response to what the hon. Lady said about the 2017 reforms, it is not true that we have removed the incentives on CO 2. First-year rates have an extra effect: the so-called “sticker price” effect. There is also the zero rate for zero-emission cars.

  [Source]

  14:39

  The Government are committed to improving air quality in the UK through the reduction of carbon dioxide and nitrogen dioxide emissions. Every year, around 50,000 people die prematurely due to poor air quality. Road vehicles account for around 92% of UK transport carbon dioxide emissions and 80% of nitrogen dioxide emissions in roadside locations.

  Successive Governments will need to de-carbonise the road transport sector in the UK if we are to deliver on our commitments to reduce greenhouse gas emissions —as I know both the hon. Lady and I are committed to doing. Indeed, the fourth carbon budget requires successive Governments to reduce greenhouse gas emissions by 51% relative to their 1990 levels by 2027. Any action to meet those targets will need to include the deployment of new greener alternative fuels, and aqua methanol is one of those. Incentivising its use has the potential to contribute to the UK meeting its air quality targets through reductions in the use of diesel, which is the largest source of nitrogen dioxide emissions.

  The reduced duty rate was recalculated based on fuel duty changes and the energy content. The clause legislates for the reduced rate of excise duty for aqua methanol, which will incentivise the uptake of that alternative fuel and help us to deliver on the commitment to reduce greenhouse gas emissions and improve air quality in our towns and cities.

  [Source]

• 5 Jul 2016: Finance Bill (Third sitting)

  10:18

  Despite the extremely challenging conditions, this remains a sector of opportunity for Scotland and the UK; it is estimated that somewhere between 11 billion and 21 billion barrels of oil and oil equivalents are still to be had. More than £11 billion was invested in the sector last year. I am constantly encouraged by the positive attitude of the industry, and all the work that it is doing to get its cost base down and continue to look for new opportunities. I assure you, Mr Howarth, and all hon. Members, of the Government’s absolute commitment to the very positive tripartite approach between the industry, the Oil and Gas Authority, which is really more than a regulator, and the Government, who include the Scotland Office, the Department of Energy and Climate Change and the Treasury.

  [Source]

• 27 Jun 2016: Finance Bill

  19:49

  Clauses 132 to 136 set out changes to the climate change levy, or CCL, which is a tax levied on the supply of energy to businesses and the public sector. It was introduced in 2001 to incentivise industrial and commercial energy efficiency. The Finance Act 2015 removed the climate change levy exemption for renewable electricity generated on or after 1 August 2015. A consultation was then held to seek views from industry on the appropriate length of time for the transitional period.

  Clause 132 sets the length of the transitional period during which electricity suppliers can continue to exempt from the climate change levy renewably sourced energy generated before 1 August 2015. The clause provides for an end date for the transitional period of 31 March 2018. Setting a transitional period will minimise the administrative impact on electricity suppliers by giving them time to retain the benefit of renewably sourced electricity acquired before the date of the change.

  Clause 135 will increase the climate change levy rates above RPI from 1 April 2019, to recover the revenue that will be lost from abolishing the CRC. Increasing climate change levy rates will strengthen the incentive for businesses with the greatest potential to save energy. At the same time, rebalancing the rates for different taxable commodities from 1 April 2019 will update an outdated ratio and more closely reflect the carbon content of the energy used. That will help to deliver on our commitment to achieve greater carbon savings.

  Clause 136 will increase the levy discount for energy intensive sectors with climate change agreements. That will ensure that businesses in those sectors will pay no more in the climate change levy than the expected RPI increase in April 2019, thereby enabling them to maintain their international competitiveness. Those reforms will take place in 2019, providing a three-year lead-in time for businesses to adjust to the new business energy tax landscape.

  Several hon. Members have in the past voiced concern over the impact of the clause to remove the climate change levy exemption from renewably sourced electricity, so allow me, if you will, Sir Roger, to repeat the reasoning for the removal of that exemption. There is no doubt that the exemption was increasingly providing poor value for money for British taxpayers. Without action, the exemption would have cost almost £4 billion over the course of this Parliament, providing only indirect support to renewable generators.

  Other Government support for UK low-carbon generators demonstrates this Government’s commitment to renewable energy. Since 2010, nearly £52 billion has been invested in renewables, and that has led to a trebling of the UK’s renewable electricity capacity. There was another record year in 2015, with £13 billion invested in renewable electricity. Removing the exemption will provide better value for money for UK taxpayers, contribute to fiscal consolidation and maintain the climate change levy price signal necessary to incentivise business energy efficiency.

  Amendment 183 stands in the name of the hon. Member for Salford and Eccles (Rebecca Long Bailey) on behalf of the Opposition. If I may pause for a moment, I want to take this opportunity to congratulate her on her elevation today. It is an extremely well-deserved promotion and we wish her all the best in her new role. On this occasion, however, I am afraid that her amendment has slightly less merit. It would require the Chancellor to publish a report detailing the impact of the climate change levy in reducing carbon emissions within 12 months from the passing of the Finance Bill, but such a review is unnecessary.

  Following a hearing on the 2015 summer Budget, the Chancellor wrote to the Treasury Committee on the impact of the removal of the CCL exemption. He made it clear that the exemption would not directly affect our commitment to reduce carbon emissions. In addition, the Department of Energy and Climate Change already intends to publish a consultation on a simplified energy and carbon reporting framework later this year. That will be accompanied by an impact assessment, which will examine the removal of the carbon reduction commitment and propose adjustments to reporting requirements.

  The impact of ending the exemption from the climate change levy for renewable electricity has been discussed at length over the course of debates. It has been confirmed to Parliament in writing by the Chancellor that removal of the exemption will not impact on the UK’s ability to meet its carbon budget targets. I therefore urge the hon. Lady to withdraw the amendment, but should she be minded not to do so, I urge the Committee to reject it.

  [Source]

  20:20

  The climate change levy makes a significant contribution to the Exchequer’s revenues. It had been on a declining path, but with the changes that have come in, its path has been stabilised. It had been providing increasingly poor value for money, partly because a third of its value was going to generators overseas: that generation does not contribute to UK targets, and quite often benefits from subsidies and other benefits at home.

  [Source]

  20:23

  I turn to the abolition of the carbon reduction commitment and changes to the climate change levy main rates. Those are major simplifying moves. We had extensive consultations—both written consultations and meetings, a number of which I sat in on—and businesses said loud and clear that they wanted to simplify how it all worked. They valued the discussions that had taken place and the elevation of the role and salience of energy efficiency within their companies. But the CCL as a single tax will be a straightforward price signal. We will also be removing some of the additional administrative burden.

  The Government will also consult on a simplified reporting framework this year, to encourage large businesses to identify energy efficiency savings. In addition to the tax changes, that will further enhance the UK’s ability to reduce its carbon emissions. The Department of Energy and Climate Change intends to publish an impact assessment of the changes later this year, alongside its consultation on a simplified reporting framework. That will include analysis of the impact on carbon emissions. Rebalancing CCL rates towards gas will better incentivise emissions reductions from that fossil fuel, as well.

  I will finish by restating, lest there be any doubt, the very firm commitment and strong track record of this Government on reducing emissions. Since 2010 we have reduced the UK’s greenhouse gases by 14% and outperformed our closest European counterparts with the largest cuts in greenhouse gas emissions since 1990. As the hon. Member for Aberdeen North mentioned, we secured the first truly global, legally binding agreement, the Paris agreement, COP21, with our Secretary of State playing a key role. Annual support for renewables will more than double, to more than £10 billion in 2020-21. We are the first major developed economy in the world to commit to phasing out unabated coal, the dirtiest fossil fuel, by 2025. We are the world’s leading player in offshore wind, with just over 5 GW installed, a figure that is forecast to double by the end of the Parliament.

  ‘(3) The Chancellor of the Exchequer shall conduct a review of the impact of the Climate Change Levy in reducing carbon emissions within 12 months of the passing of this Act.

  [Source]

• 19 Apr 2016: Solar Power

  12:04

  I look forward to reading the hon. Lady’s report. The Treasury takes a balanced approach to making sure that we stay on target to meet our commitments. We are on target to meet our commitment of 15% of renewable energy by 2020, but we must do so in a cost-effective way, recognising that the subsidies to early stage technologies can only be paid for by taxpayers.

  [Source]

  12:04

  Indeed. Were it only the case that the sun would always shine. Under Labour, we had the highest dependency on fossil fuels in the G8 and the lowest contribution from renewable energy of any major EU country. As I said earlier, the deployment of solar power has been a great success story since 2010.

  [Source]

• 19 Apr 2016: Topical Questions

  12:04

  As we covered earlier, the tariff system in place to encourage renewable energy has to deliver a balanced portfolio of energy, and it does so. Of course, we encourage energy firms always to pass price cuts that they benefit from on to their customers.

  [Source]

• 8 Sep 2015: Finance Bill

  18:12

  Clause 45 ends the exemption from the climate change levy for renewably sourced electricity. The CCL renewables exemption was misaligned with today’s energy policy and represented an inefficient way of supporting renewable electricity generation. In the past 15 years the UK’s renewable energy policy has fundamentally changed. When the renewable electricity exemption was introduced in 2001, renewable generation made up just 2.5% of the UK’s electricity supply; it now makes up around 20%. Since the exemption was introduced, more effective policies have been put in place which support renewable electricity generation directly.

  [Source]

  18:13

  I can absolutely say how we justify this measure. As I have stated, there are now more effective and efficient direct methods of encouraging renewable generation than the CCL exemption. We have also seen a sharp decline in CCL revenue over the last Parliament. The forecasts from the independent Office for Budget Responsibility show that, without change, by 2020 virtually no CCL would have been paid on electricity at all. Removing the exemption helps maintain a price signal through the CCL for all business to use energy more efficiently. In addition, last year a third of its value went to renewable projects based overseas—projects which of course do not contribute to our climate change or international development commitments, making this a poor use of taxpayers’ money.

  Clause 45 ends the existing exemption for renewable energy from the CCL. It applies to any renewable electricity generated after 31 July 2015, when it is supplied to businesses or the public sector under a renewable source contract. From 1 August we entered into a transitional period in which suppliers may claim a CCL exemption on any renewable electricity generated before that date. The Government are discussing the details of this transitional period with the affected suppliers, to determine an appropriate length for it. We intend to put the final transitional arrangements in place through legislation in the Finance Bill 2016.

  [Source]

  18:15

  Several hon. Members have voiced their concern about the impact of the clause, and I want to take a moment to address those concerns. The change will not increase household energy bills, because the climate change levy is not charged on households. Business customers should not lose out from the change either. The business energy market is competitive and wholesale electricity prices will not be increased as a result. Energy-intensive businesses are already exempt from 90% of the costs of the climate change levy for electricity by being in climate change agreements. The change will also not affect renewable generators’ long-term investment plans. Most generators were expecting to receive a negligible value from the exemption by the 2020s.

  Of course, the renewables sector will also benefit from Government’s recent cuts to corporation tax, which will save businesses over £10 billion a year, giving the UK the lowest rate of corporation tax in the G20. Lastly, the change will not affect the UK’s ability to meet its climate change goals, as emissions from electricity generation are capped through the EU emissions trading system. Nor will it affect our ability to source at least 30% of electricity demand from renewables by 2020. The Government remain committed to meeting their climate change objectives but we believe we must do so in a cost-effective way.

  [Source]

  18:17

  It is a bigger rug than that. The climate change levy is only a relatively minor part of the support that was given to the industry, compared with the support given through the renewables obligation and through contracts for difference.

  It is essential that we show that our measures to achieve climate change and renewables objectives provide good value for money, in order to retain long-term public support for them. I look forward to hearing hon. Members’ views and I urge them to give their support to the clause.

  [Source]

  19:39

  The exemption from the climate change levy has been one part of the support the taxpayer provides to renewable energy; the total package of that support amounts to some £5.1 billon this financial year. The climate change levy exemption was an indirect incentive for renewable energy. There is no denying it has had some success in the past, but by the early 2020s the total amount of renewable energy supplied will be greater than the total demand for electricity from all climate change levy-eligible businesses. The value of the exemption for generators would therefore be negligible by the early 2020s. For that reason, it would not have been a major factor in the long-term decision making of generators.

  [Source]

  19:41

  There were four important reasons for ending the climate change levy exemption. The first was that it represented poor value for money, with one third of the benefit going to overseas operators—bringing no benefit to UK climate or renewables targets—and of course much of that generation will also have been receiving subsidy and incentive at home. The hon. Member for Wirral South (Alison McGovern) asked where these estimates come from, and I can tell her that they come from evidence provided to the Government by Ofgem—I am sure she will understand that the detail is commercially sensitive. The hon. Member for Brighton, Pavilion (Caroline Lucas) and my hon. Friend the Member for Brigg and Goole (Andrew Percy) pointed out that if one third of the value goes abroad, by definition two thirds stays at home. I cannot deny that that is mathematically correct, but of course that still represents a heavy leakage rate and it is the one third leakage that makes this exemption poor value for money. Just to be clear, EU law would not allow us to restrict the exemption or preferential treatment to the UK only. [Interruption.] I am sorry—I thought the hon. Member for Wirral South was trying to get in, but she wants me to move on to explain the second reason.

  As I say, the exemption was an indirect incentive, and more efficient and effective policies have been put in place through the renewables obligation and contracts for difference schemes. They are worth more, they are direct and they are explicitly grandfathered, carrying more investor worth than a tax break. The third reason was the need to protect climate change levy revenue. The independent OBR forecasts show that without a change, climate change levy revenue would fall from £800 million to £200 million by 2020, and removing the exemption is worth some £3.9 billion over the course of this Parliament.

  The fourth reason was to retain the incentive for energy efficiency across all energy use, while, as a side effect, simplifying the administration of the climate change levy, which will continue to add about 5% to 7% to business energy bills. Thus, we are encouraging energy efficiency.

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  19:44

  In the first part of what the hon. Lady said she was pretty close to the mark. When I say that there is wider support available, I mean that the climate change levy exemption was worth up to £5.54 per megawatt hour, whereas the renewables obligation is worth £40 per megawatt hour, so relatively it is a much more significant financial effect.

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  19:45

  Importantly, the value provided by the climate change levy exemption was relatively minor when compared with the other elements of Government support that are available for renewable energy. Most generators were expecting the exemption to have a negligible value for them by 2020, so it would not typically be a large factor in their long-term investment decisions.

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  19:48

  The hon. Member for Brighton, Pavilion asked about the Government’s green credentials, a point that came up again in an intervention. I repeat that the Government take our environmental responsibilities extremely seriously and we are absolutely committed to meeting our climate change commitments, but as cost-effectively as possible. We are making good progress, with emissions down 30% since 1990, and we are on track for 30% of electricity supply to be from renewables by 2020. At the same time, we want to help consumers, keep energy bills down and keep British business competitive. It is vital that we take careful account of the costs of our policies so that we are not imposing unnecessary burdens on households and businesses, making household bills unaffordable or putting the UK at a competitive disadvantage.

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  19:50

  I wish we were living in a world where money that was saved was suddenly free and available to be used to do things. As the hon. Lady knows, the Government have a whole range of programmes to support our objectives to tackle climate change and we will continue to do that.

  I stress again that new clause 2 is not necessary. The impact of ending the exemption from the climate change levy for renewable electricity has been published by the Government. Clause 45 will not impact the UK’s ability to meet its climate change goals, will not affect renewable generators’ long-term investment plans and will not increase household energy bills, but it will provide better value for money for UK taxpayers. I commend the clause to the House and urge the Opposition not to press new clause 2.

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• 24 May 2012: Feed-in Tariffs Scheme

  12:52

  For PV businesses in East Hampshire, what message does today’s announcement give in terms of investment predictability and the sustainability of the sector? What are its growth prospects compared with what was envisaged by the former Energy and Climate Change Secretary, who now leads the Opposition?

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• 24 Mar 2011: Carbon Budget Report

  13. When he plans to respond to the Committee on Climate Change’s fourth carbon budget report.

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• 1 Mar 2011: Forestry Commission

  It is a little unhelpful to introduce things into the debate that are not directly relevant, such as climate change and the development of the countryside. As was pointed out, in this country, we cannot just fell large numbers of trees, raze them to the ground and build things. That is just not allowed, whoever owns the land, as I think the right hon. Lady knows. There are, however, a number of reasonable, legitimate and important questions, and people have some deep, understandable concerns about aspects of the proposals. One key point, with the distinction between heritage forests and other forests, is that the protections for the heritage forest are clear. However, people want additional comfort about forests that are not classified as heritage forests and, indeed, how they can appeal for a forest to be classed as a heritage forest. That is the case with some of the forests in my patch of East Hampshire.

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• 1 Jul 2010: Global Poverty

  The line “charity begins at home” holds a certain attraction, but, as we see again and again from the generosity of the British people when called upon, charity here certainly does not end at home. The moral and altruistic argument for aid is strong, but as politicians we can, and must, do better than hitherto in explaining to, and convincing, people why aid can also be in our own interests when properly targeted and as long as we know that other wealthy nations are also making their proper contribution alongside ours. A larger world gross domestic product benefits not just newly developing countries, but the entire world economy, through bigger markets, specialisation and trade. It ensures that the world’s scarce resources, including human resources, are put to better use, and through the promotion of stability in otherwise volatile parts of the world, it contributes to our security. Furthermore, there are benefits in terms of climate change, economic migration and so on, and often direct benefit can be had from strategic bilateral relationships, which of course are competitive exercises between countries.

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See all Parliamentary Speeches Mentioning Climate