Ed Miliband is the Labour MP for Doncaster North.
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On Tuesday 12 November at the 29th UNFCCC conference of the parties (COP29) in Baku, the Prime Minister will announce the UK’s 2035 nationally determined contribution (NDC) under the Paris agreement. This will commit the UK to reducing economy-wide greenhouse gas emissions by at least 81% by 2035, compared with 1990 levels, excluding emissions from international aviation and shipping.
The 2035 NDC is based on advice from the independent Climate Change Committee (CCC). It is a clear progression on the UK’s previous NDC pledging to reduce emissions by at least 68% by 2030. It was informed by the outcomes of the global stocktake from COP28 and is aligned with limiting global warming to 1.5 °C. It is aligned with the level of ambition in carbon budget 6 (2033-37) on the pathway to net zero by 2050.
The headline target will be followed by submission of the detail underpinning the NDC—known as information to facilitate clarity, transparency and understanding (ICTU)—to the United Nations framework convention on climate change ahead of the February 2025 deadline. A copy of the ICTU will be laid in the Houses of Parliament.
The UK’s early and ambitious NDC will help restore our global climate leadership and encourage greater ambition from other countries. It is one important part of the UK’s overall contribution to global emissions reductions, alongside our international climate finance and other support.
Globally, the world is way off track from meeting the Paris agreement temperature goal. Climate action must be accelerated drastically to reduce emissions and keep the annual average global temperature rise below 1.5°C. The ambition and delivery of the next round of NDCs, due to be submitted to the United Nations framework convention on climate change (UNFCCC) by February 2025 and implemented in the 2030s, will be critical in enabling this.
The UK’s domestic action is the first crucial step to restoring UK international leadership on climate change. The clean energy transition is also the economic opportunity of the 21st century and will support the creation of hundreds of thousands of good jobs across the UK and protect our economy from future price shocks while delivering a range of social and health benefits.
That is why making Britain a clean energy superpower is one of the five missions of this Government—delivering clean power by 2030 and accelerating to net zero across the economy.
Full debate: Paris Emissions Reduction Target: UK’s Nationally Determined Contribution
We are halfway through the critical decade for tackling climate change, but the world is off-track from limiting global warming to 1.5°C. We are facing a triple planetary crisis of climate, biodiversity loss and pollution posing critical threats to the UK’s national interests across security, resilience, health, the economy and partnerships with other countries.
With global temperatures continuing to rise, the impacts of the climate and nature crises—storms, floods, droughts, food and water insecurity, displaced communities—will be a profound source of global disorder. To engage only with the effects of climate change, war, poverty, pandemics or irregular migration when they arrive on our doorstep is to set ourselves up to fail. This is why the UK needs to re-establish itself as a climate leader on the global stage.
Taking on the challenge of climate change is also an incredible opportunity for jobs and growth all across the country. It will improve our health, our quality of life and our overall prosperity.
The Government have already begun work to deliver on this opportunity, through our mission to achieve clean power by 2030 and accelerating our transition to net zero. We have lifted the de facto ban on onshore wind in England, consented significant amounts of solar, introduced legislation to switch on Great British Energy, created the UK’s first carbon capture clusters, and held the most successful renewables auction to date.
We have put clean energy at the heart of our mission-driven Government, because we know that boosting home-grown, renewable energy is the best way to reduce our exposure to volatile fossil fuel markets, protect bill payers, and strengthen our energy independence. The UK will restore its position as a global leader on climate action, building on the power of example to encourage other nations to follow its lead, and working with international partners to support decarbonisation globally.
COP28 in Dubai saw the first global stocktake under the Paris agreement which illustrated the scale of the challenge—by 2030, emissions need to fall by 43% versus the 2% currently projected and climate finance must increase at least fivefold, drawing on all sources.
The UK will work with the COP29 presidency and other partners to push for progress in the following three key areas:
Scaling up finance from all sources to accelerate global transitions . We need to agree an ambitious new collective quantified goal on climate finance for the period after 2025. The UK is committed to working with countries to design a climate finance goal that is fit for purpose and supports those most vulnerable to climate impacts, crowding in private finance while recognising the constraints on the public finances in the UK. Outside the negotiations, we need to accelerate reform of the global financial system to address the transition and resilience finance gaps and barriers that countries face.
Scaling up ambition and action to keep 1. 5 Paris agreement goal within reach ahead of COP30 . As agreed at COP28, countries must come forward with ambitious, all-economy, 1.5°C-aligned nationally determined contributions for 2035 by next February to bridge the emissions gap. As the Prime Minister announced at the United Nations General Assembly in September, the UK will come forward with our own ambitious, 1.5-aligned NDC at COP29 and will support others to do the same. Globally, we need to accelerate the global transition in energy and other sectors and the UK will show progress on this through initiatives such as the breakthrough agenda and the global clean power alliance—a progressive alliance of developed and developing countries working together to accelerate the deployment of clean power globally and mobilise public and private finance to support clean energy. The alliance will help to bridge the financing gap with the global south and enable more countries to secure the benefits of clean, cheap power.
Across all these areas, we must recognise the crucial, often overlooked role of high-ambition action on nature including forests in mitigating and adapting to climate change. This means aligning UNFCCC outcomes with the targets of the global biodiversity framework and joining up approaches to tackling climate, biodiversity, and pollution across NDCs, national adaptation plans and national biodiversity strategies and action plans all in the broader context of achieving the sustainable development goals. It includes protecting the ocean through the ocean and climate change dialogue and restoring forests through the Forest and Climate Leaders’ Partnership.
We are determined to do everything in our power to accelerate global action to reduce emissions this decade and keep within reach the 1.5°C goal in the Paris agreement.
Full debate: COP29: Priorities
I want to thank everyone who has played a role in getting the Bill to this stage: the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has done an incredible job steering the Bill through Committee; Members across the House who have scrutinised the Bill in Committee; all the parliamentary staff who have worked on the Bill; and the fantastic officials in my Department who have moved at such speed over the last four months.
I also want to thank the witnesses who gave evidence to the Committee, all of whom were in support of establishing Great British Energy. I am sure that the House will be interested in the list. They include SSE, EDF, Energy UK, RenewableUK, Scottish Renewables, the Carbon Capture and Storage Association, Nesta, the Green Alliance, the Net Zero Technology Centre, the TUC, Prospect and the GMB. And they are not the only ones. I can inform the House that they join a growing list of supporters, including the CBI, the Aldersgate Group, Octopus Energy, E.ON, the Hydrogen Energy Association, the Scottish Chambers of Commerce, the Port of Aberdeen, the University of Aberdeen and, of course, the British people themselves, who overwhelmingly backed Great British Energy at the general election. Sadly, the only people you can find to oppose Great British Energy are the faction of a sect of a once-great party sitting on the Opposition Benches.
I am fully supportive of GB Energy, but what assurances can my right hon. Friend give to the House that it will be a just transition, that it will be adopted across Government, and that the broadest sector will buy into it?
Full debate: Great British Energy Bill
This statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Ltd for development consent for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 megawatts, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Planning Act 2008 to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the North Lincolnshire green energy park application is 18 October 2024.
Full debate: Energy Infrastructure Planning Application: North Lincolnshire
My hon. Friend is absolutely right about the importance of both rooftop solar and ground-mounted solar. I can tell him that, as part of Great British Energy’s plans, we want to work with local schools, local hospitals and, indeed, local leaders to have a solar panels programme, because this is a way to rapidly decarbonise and to save money off bills.
Full debate: Oral Answers to Questions
I congratulate my hon. Friend, but particularly the Fairwater community campus on the work it is doing. I think he highlights a very important issue. By helping to decarbonise public buildings, including schools, we help not only to cut our carbon emissions, but, crucially, to save money for those schools that they can then use for frontline services.
Full debate: Oral Answers to Questions
As well as our measures on onshore wind, solar and renewables, this Government have begun legislating for Great British Energy and setting out our plan for proper standards for private and social renters to take 1 million families out of fuel poverty, and on Friday we announced deals to kick-start Britain’s carbon capture industry. All of this will deliver our mission to make Britain a clean energy superpower. It is right for bills, right for energy security, right for jobs and right for climate leadership.
Full debate: Oral Answers to Questions
The hon. Gentleman raises a very important issue that I am afraid was not solved by the last Government. We are working at pace with National Grid, and I am sure the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), will be happy to talk to him further about the work we are doing.
Full debate: Oral Answers to Questions
My hon. Friend raises the important issue that what will define the future for North sea workers is whether there is a plan for future jobs in offshore wind, carbon capture and hydrogen. There was no plan from the previous Government; this Government are absolutely determined to ensure a just transition for those workers, using the power of Government and a proper industrial policy to make it happen.
Full debate: Oral Answers to Questions
Every planning application and development consent order is assessed on its merits. Importantly, the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Streatham and Croydon North (Steve Reed), is polishing a land use framework, which has long been needed in this country. It will set out the balance between food security, the use of renewable energy, the restoration of nature and the role of farming. I hope that will help with some of the issues that hon. Members are facing.
Full debate: Oral Answers to Questions
This Government believe that we can only ensure climate security for further generations in the UK if we lead globally. That was the message of the Prime Minister at the United Nations General Assembly with our world-leading 2030 clean power plan, no new oil and gas licences, and playing our part in reforming the global financial system. Next month I will be attending the COP29 talks in Azerbaijan to stand up for Britain’s interests.
Full debate: Climate Change: International Work
I will say one thing in particular to my hon. Friend. The Prime Minister said at the United Nations General Assembly that we will be unveiling our nationally determined contribution—our target for 2035—at COP29. We are doing that because the danger is that the world settles into a low-ambition equilibrium when it comes to tackling these issues. By having a 1.5º aligned target, we hope to set a good benchmark and a good example for the world.
Full debate: Climate Change: International Work
I take the hon. Gentleman seriously on these issues, and I undertake to write to him or to have one of the Ministers write to him. I make the general point that rewilding and nature-based solutions are an essential part of tackling the climate crisis.
Full debate: Climate Change: International Work
By contrast, just three months since we came to office, this Government have turned promise into reality. I can confirm to the House that we have agreed commercial terms, and £21.7 billion of funding over 25 years for five carbon capture, usage and storage projects across two clusters: HyNet in the north-west, and the East Coast Cluster in the north-east. This announcement will enable the construction of two transport and storage networks that will underpin this new industry. The highways for carbon capture and the deals we have agreed will also kick-start development of Net Zero Teesside, the world’s largest gas with CCUS plant, and—these are both in Ellesmere Port—Protos, a new CCUS energy from waste facility, and EET Hydrogen, the UK’s first large-scale blue hydrogen project, which is the cleanest in the world. They will crowd in £8 billion of private investment across the two clusters, creating 4,000 jobs in our industrial heartlands and building an initial capacity to remove over 8.5 million tonnes of carbon emissions each and every year. I pay tribute to the six new Labour MPs in Teesside and colleagues across the north-west who have been brilliant champions for those projects. This is just the start; we will have more to say in the coming months about carbon capture sites in Humberside, Scotland and elsewhere around the country.
This investment is the right thing to do for Britain. CCUS will unlock the decarbonisation of hard-to-abate sectors, from chemicals to cement; enable the production of low-carbon hydrogen; and, by capturing emissions from gas-fired power stations, play an important role, alongside renewables and nuclear, in delivering clean power by 2030 and beyond. That is why experts in bodies ranging from the Climate Change Committee to the International Energy Agency are clear that carbon capture is critical to our meeting our climate commitments. There are those who doubt that. To them I quote James Richardson, the acting chief executive of the Climate Change Committee, who said on Friday quite simply:
“Reaching net zero will be virtually impossible without CCUS”,
“account for almost 20% of global CO2 emissions today”.
That is all part of the action of a Government who, in the last three months, have shown that we are in a hurry to deliver our mission to make Britain a clean energy superpower. We have lifted the onshore wind ban, consented to record amounts of nationally significant solar, launched Great British Energy, delivered the most successful renewables auction in British history, and set out our plans to lift more than a million households out of fuel poverty. We are moving apace, both because of the urgency of the challenges that we face and because of this Government’s determination to win for Britain. Last week marked the end of one chapter in our country’s energy story and the start of a new one—a new era showing that we can decarbonise and reindustrialise, a new era of clean energy jobs and investment in our industrial heartlands, and a new era of climate leadership. I commend this statement to the House.
Full debate: Carbon Capture, Usage and Storage
Immediate career support for workers. The UK and Scottish Governments will provide tailored support that will help affected workers in finding new employment—and Grangemouth will be among the first areas that the new office for clean energy jobs will work with to help deliver a just transition.
Full debate: Grangemouth Oil Refinery: Jobs
I am grateful to the right hon. Gentleman for giving way. He is normally a fair man, but what he did not mention was the risible state of renewable energy when we took power in 2010. It accounted for less than 7% of electricity, and we increased the figure to nearly 50%. We are a country that has led the world in this area. It was the Conservatives who transformed our energy system to remove coal from the system. I am sure I am just setting up the Secretary of State, which I am happy to do, but what will state ownership do? Our system is arguably one of the most effective in the whole world at delivering green capacity, and has been the most successful in cutting emissions. What will state ownership do, other than simply put the state and its complicated mechanisms into programmes that need to be speeded up, not slowed down?
I am very grateful to my right hon. Friend. We heard the right hon. Member for Beverley and Holderness (Graham Stuart) suggest a few moments ago that things were going wonderfully under the Conservative Government, but does my right hon. Friend agree that the Climate Change Committee warned a few weeks ago that only a third of the emissions reductions that we need to achieve the 2030 target are currently backed by a credible plan? Is the reality not that we need a step change? Thank God we have a Labour Government to deliver it.
The Secretary of State knows I share his passion and ambition to get to net zero. One big concern about GB Energy is that it will crowd out, rather than crowd in investment. Will he enlarge on how he intends to crowd in investment into green energy?
Full debate: Great British Energy Bill
The lifting of the onshore wind ban, this very successful allocation round 6, and the creation of Great British Energy, all signal the ramping up of our efforts to deliver clean power by 2030 and net zero, moving towards energy independence and protecting families from volatile fossil fuel prices. Going forwards, we will continue to work with investors, developers, and the supply chain to accelerate our mission to become a clean energy superpower.
Full debate: Contracts for Difference: Allocation Round 6 Results
The success of this round does not just offer greater energy security for the British people; it also offers the possibility of good jobs throughout Britain. But that will not happen without action by Government, because we know that too often in the past renewable energy produced in Britain has not created enough good jobs in Britain. With Great British Energy and our national wealth fund, we will invest to make sure our clean power mission produces jobs in every corner of the United Kingdom.
This Government have been in office for less than two months. In that time, we have lifted the onshore wind ban, consented more nationally significant solar capacity in one week than the last Government did in 14 years, and now delivered the most successful renewables auction in the history of the country. And on Thursday we will debate the Second Reading of the Great British Energy Bill. This is a Government in a hurry to deliver our mission: energy security, lower bills, good jobs and tackling the climate crisis. I commend this statement to the House.
Full debate: Contracts for Difference
Written correction submitted by the Secretary of State for Energy Security and Net Zero, the right hon. Member for Doncaster North (Ed Miliband):
Full debate: Energy Security and Net Zero
Our country faces huge challenges. More than two years on from Russia’s invasion of Ukraine, families and businesses continue to pay the price for Britain’s energy insecurity. Bills remain hundreds of pounds higher than before the energy crisis began and are expected to rise again soon. At the same time, we are confronted by the climate crisis all around us, not a future threat but a present reality, and there is an unmet demand for good jobs and economic opportunities all across Britain.
Full debate: Great British Energy
We are moving at this pace for one overriding reason: the urgency of the challenges we face. We have the challenge of our energy insecurity, laid bare by Putin’s invasion of Ukraine and paid for by the British people in the worst cost of living crisis in generations. We have the challenge of an economy that does not work for working people, with too few good jobs at decent wages. We have the challenge of the climate crisis—not a future threat, but a present reality. This Government have a driving philosophy: homegrown clean energy can help us tackle all those challenges, including crucially energy security. Today the Climate Change Committee publishes its progress report to Parliament. I thank the interim chair Piers Forster and the interim chief executive James Richardson for their excellent work.
“British-based renewable energy is the cheapest and fastest way to reduce vulnerability to volatile global fossil fuel markets. The faster we get off fossil fuels, the more secure we become.”
It is right. That is why making Britain a clean energy superpower is one of the five missions of this Government, delivering clean power by 2030 and accelerating to net zero across the economy.
Today, I set out our next steps. First, onshore wind is one of the cheapest sources of power that we have. To those in the House who claimed they were protecting communities with the onshore wind ban, let us be clear: they have undermined our energy security and set back the fight against the climate crisis. That is why in the first 72 hours of this Government we lifted the ban, which today I confirm formally to the House. Under the onshore wind ban, the pipeline of projects in England shrank by 90%.
Over a year ago, the last Government’s net zero tsar Chris Skidmore, whom I pay tribute to, made a recommendation of an onshore wind taskforce to drive forward projects. The last Government ignored it; we will implement it. The taskforce will work with developers to rebuild the pipeline of projects.
Credible external estimates suggest that ground-mounted solar used just 0.1% of our land in 2022. The biggest threat to nature and food security and to our rural communities is not solar panels or onshore wind; it is the climate crisis, which threatens our best farmland, food production and the livelihoods of farmers. The Government will proceed not on the basis of myth and false information, but on evidence. Every time, the previous Government ducked, delayed and denied the difficult decisions needed for clean energy, that made us less secure, raised bills and undermined climate action. No more.
Great British Energy, headquartered in Scotland, will invest in home-grown clean energy to increase our energy independence, create good jobs with strong trade unions and tackle the climate crisis. It will invest in technologies such as nuclear, offshore wind, tidal, hydrogen and carbon capture, and ensure a just transition for our oil and gas communities. GB Energy will also oversee the biggest expansion of community energy in British history through our local power plan. The Government believe in the ownership of British assets by the British people, for the benefit of the British people. Following the people’s verdict at the general election, I hope that this is a patriotic mission that the whole House can get behind.
I have seen 19 years of debates on climate and energy in this House. The clean energy transition represents the biggest transformation of our economy for 200 years, and it is massively challenging. We have been at our best as a country, and as a House, when we have worked together for the sake of the national interest. I pay tribute to people of all parties who have been champions of this agenda over the past 14 years: Baroness May, who legislated for net zero; the right hon. Member for Kingston and Surbiton (Ed Davey), who oversaw the growth of offshore wind; Caroline Lucas; and on the Labour Benches, my friend Alan Whitehead.
One of my early decisions was to re-establish the role of the Secretary of State as the lead climate negotiator in my Department, because we can only protect future generations with strong action at home and leadership abroad. Next week in London I will host the President of this year’s COP29 in Azerbaijan. He will be joined by the Presidents of COP28 and COP30. I have invited the President of COP 26, Lord Sharma, who presided with such distinction, to join our discussions. This is a sign of how I intend to go on—working with people of all parties and none in this national endeavour. That is what the British people have a right to expect of us. As the Prime Minister rightly says, “Country first, party second.” That is more true on this issue than any other. This Government will act at pace and work with anyone who shares our mission. I commend this statement to the House.
Full debate: Clean Energy Superpower Mission
The North Lincolnshire green energy park development consent order for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 MWe, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe by North Lincolnshire Green Energy Park Ltd. The Secretary of State received the examining authority’s report on 15 August 2023, and the previous deadline for a decision was 18 July 2024.
The decisions for those cases extended to 22 July have now been taken. In the case of the North Lincolnshire green energy park, the new deadline is 18 October 2024 to allow for the Department for Environment, Food and Rural Affairs to consider the evidence gathered by its review into the role of waste incineration capacity in the management of residual wastes in England.
The decision to set the new deadline for the North Lincolnshire green energy park application is without prejudice to the decision on whether to grant or refuse development consent.
Full debate: Energy Infrastructure Planning Projects
Two weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:
Full debate: Net Zero Target
With a defence like that, I can see why the Government lost in court not just once but twice. Buried in the court documents is the confidential memo that reveals the real reason they lost the case—officials were telling Ministers that they had low or very low confidence that half their carbon reductions would be achieved. That is why they were found unlawful. The right hon. Lady comes to the House each month with her complacent nonsense, but the court judgment exposes the truth: the Government are way off track, abysmally failing to meet the climate emergency and pushing up bills for families as a result.
Full debate: Net Zero Target
That is simply not good enough. It is a year on. The right hon. Lady is the Energy Secretary; she should be delivering that compensation to people, and she is failing across the board. The onshore wind ban remains; the offshore wind market crashes; the insulation schemes are a disaster, while she spends her time appeasing the flat-earth, anti-net zero brigade in her own party. No wonder the former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart) resigned. Is it not the truth that the Secretary of State is failing in her job and the British people are paying the price?
Full debate: Oral Answers to Questions
“this House, while affirming the need for urgent action to tackle the UK’s energy insecurity, the cost of living crisis, and the climate crisis, and for a managed, fair and prosperous transition for workers and communities, declines to give a Second Reading to the Offshore Petroleum Licensing Bill because mandating annual oil and gas licensing rounds will not reduce energy costs for households and businesses as the Secretary of State for Energy Security and Net Zero has stated, will not enhance energy security, offers no plan for the future of the UK’s offshore energy communities, will ensure the UK remains at the mercy of petrostates and dictators who control fossil fuel markets, is entirely incompatible with the UK’s international climate change commitments and is a totally unnecessary piece of legislation which will do nothing to serve the UK’s national interest.”
The proposed legislation we are considering today will not cut bills or give us energy security, drives a coach and horses through our climate commitments and learns nothing from the worst cost of living crisis in memory, which the British people are still going through—a cost of living crisis caused by our dependence on fossil fuels. Since the launch of the Bill two months ago, the case for it has disintegrated on contact with reality. Let me remind the House of the series of unfortunate events that has befallen the Bill since its publication. On day one—launch day—the Energy Secretary went on TV with the big reveal, telling the public the Bill would not cut bills. Next we discovered from confidential minutes of the North Sea Transition Authority that it thought the Bill was unnecessary and compromised its independence. [Interruption.] The Minister for Energy Security and Net Zero, the right hon. Member for Beverley and Holderness (Graham Stuart) says from a sedentary position that that is not the case. He is wrong and I will read him the minutes:
to energy security. Then Britain’s most respected climate expert, Lord Stern, pilloried it as “a deeply damaging mistake”. Then on the eve of COP—the conference of the parties—the former Prime Minister the right hon. Member for Maidenhead (Mrs May), who signed net zero into law, said she disagreed with the Bill; to my knowledge, she does not support Just Stop Oil.
Then the former COP president— [Interruption.] Let’s be serious. Then the former COP president the right hon. Member for Reading West (Sir Alok Sharma), a man respected around the world who we were lucky to have playing that role at COP26, said the Bill was
Finally, their own net zero tsar—the man they trusted to guide them on questions of energy—is so disgusted by the Bill that he is not in the Chamber today. In fact, he is so ashamed that he has fled to the Chiltern Hundreds. That is certainly getting a long way away from the right hon. Lady the Secretary of State and her policies. It shows how far people will go. It is not so much the oil and gas extraction Bill but the Conservative MP extraction Bill that she is putting forward today. The former net zero tsar said:
We should take all these voices—Lord Browne, the former Prime Minister, the former net zero tsar and the former COP President— [ Interruption. ] I will come to all the arguments that the Secretary of State made, if she will give me a minute, as I develop my argument. The bigger point is that we face massive challenges as a country, but it is not the scale of our problems that is so apparent today, but the smallness of the Government’s response. We have a risible two-clause Bill that she knows will not make any difference to our energy security, because everyone who knows anything about this subject says so.
The fourth bad argument is that the Bill will somehow protect jobs. That is wrong. We owe it to oil and gas communities to protect them in the transition, but given the Conservatives’ record in constituencies such as mine, we will not take lectures from them on just transitions. We should admit a truth: the fossil fuel market is not just deeply unstable for consumers, as we have seen over the last two years, but deeply unstable for workers. It is a total illusion that new licences will somehow guarantee jobs for North sea workers. In the last 10 years, the number of people working in oil and gas has more than halved. The International Energy Agency predicts a peak in fossil fuel demand by 2030. That is why its head said:
The Government have not generated the jobs that British workers deserve, and their fossil fuel policy and net zero roll-back has sent a terrible message to investors around the world. This is what Amanda Blanc, the chief executive officer of Aviva and the head of its UK transition plan taskforce, says about oil and gas and the Government’s position:
The Government argue that the Bill can somehow be justified on climate grounds, which demands a level of absurdity that should make even them deeply embarrassed. Let us get this straight. We signed a global agreement at COP28 for a transition away from fossil fuels in line with the science. That science is unequivocal: we must leave the majority of fossil fuels in the ground. But at home, their domestic policy is what they call “maxing out” the North sea.
Let us get this clear: in the crucial coming two years, Ministers will travel around the world to try to turn that COP28 agreement into reality, but how will the conversation go? The UK Minister will say to other countries, “We want you to leave your fossil fuels in the ground, because that is the agreement from COP28.” The country we are trying to persuade will say to us, “Hang on a minute. You’re saying we should leave our fossil fuels in the ground, but you’re planning to extract all yours.” What will we say, other than, “Yes, the Government are practising total hypocrisy, but please do as we say, not as we do.” That is the truth. The science is unequivocal.
The right hon. Gentleman will know that 10% of our current oil consumption is used in the manufacturing industry—not to be burned but for things such as lubricants, solvents and electronic components. That does not contribute to greenhouse gas emissions. Is it acceptable to extract it from UK waters?
Eighty per cent. of what we get from UK waters is exported, not used here. We said clearly that we would continue with existing oil and gas fields. There must be a transition, and we cannot carry on regardless and max out the North sea. I know the right hon. Gentleman cares about the climate. It is important to listen to the respected authorities on climate. There must be a reason why the International Energy Agency, the Energy Transitions Commission, the Climate Change Committee, the former President of COP26 the right hon. Member for Reading West, and Lord Stern all say that the world is genuinely on a burning platform, and unless we address the issue of fossil fuels, we will head not to 1.5° but to 3° of warming.
That is the truth. It is incredibly hard, but the idea that we will say, “Look, there is a climate crisis; this will not make any difference to our energy security; the Energy Secretary says that it will not cut bills; it is not the answer for the jobs of the future; but we will carry on doing it anyway”, is climate vandalism. I genuinely say that to the right hon. Gentleman. He shadowed me 15 years ago, and I know that he cares about these issues, along with the right hon. Member for Reading West. People who really care about these issues have wrestled with this question. We have listened to the experts and we have thought to ourselves, “What does the science tell us on the one hand, and what difference will this make on the other?” Fair-minded people have reached the conclusion that I have reached, as has Lord Stern and all the other authorities.
I previously raised the progress report from the Climate Change Committee, which said that the Government were off track. The Secretary of State then assured the House that the Government remain extremely ambitious about climate change. Does my right hon. Friend agree that she must have meant that she supports causing climate change, given she is pressing ahead with new oil and gas licences?
I do not believe that it fulfils the kind of climate leadership that we pride ourselves on in this country. Here is another interesting fact for the House. UK Export Finance, I think with the guidance of the right hon. Member for Reading West, decided at COP26 that we would not finance oil and gas projects abroad. Now, there must be a reason why UKEF decided that. Presumably, the reason is that we want to make the transition away from fossil fuels. At the same time as UKEF decided not to do that, we will look like hypocrites if we do this by saying, “We’re just going to carry on maxing out at home.”
The truth is that there are two roads for Britain’s future: driving to clean energy by 2030 to cut bills and make us energy independent, and GB Energy to bring jobs in clean energy here at home and be a climate leader; or a Government who take the wrong path, cling to expensive and insecure fossil fuels, and make the British people pay the price, as they have for the past 14 years. The truth is that the Bill speaks volumes about a Government out of ideas and embarked on that second path. The Bill is one of the last desperate acts of a dying Government. I urge the House to support our reasoned amendment and vote against the Bill tonight.
Full debate: Offshore Petroleum Licensing Bill
In the past month, the former Prime Minister who legislated for net zero has condemned the Minister’s oil and gas policy. His colleague the former COP President has accused the Government of “not being serious” and the Government’s net zero tsar has resigned his seat in disgust. Why does the Minister think that that is?
Full debate: Oral Answers to Questions
It is not just us who oppose the Minister’s Bill, but those on his own side—he has lost an MP over it. I know he brought down the last Government over fracking; he is trying to do it again with his new Bill. That is the reason that people have lost confidence. They see the hottest year on record and a Government backsliding on net zero. Is it not the truth that the Conservatives who know and care most about climate change no longer support this Government?
Full debate: Oral Answers to Questions
I welcome some of the key outcomes from COP28, including in particular the commitments on renewables and, crucially, a transition away from fossil fuels. That shows that the COP process, however flawed and imperfect, can provide a forcing mechanism for action by Governments. I pay tribute to the civil servants in the Minister’s Department for their hard work. Indeed, by a remarkable coincidence, the breakthrough in the negotiations occurred in the 24 hours when the Minister came home and they were left in charge.
But, for all the advances made, the truth is that the world is still hurtling towards disaster, way off track for keeping 1.5° alive. While we need an over-40% reduction in emissions by 2030, we are currently on track for emissions not to fall but to rise, and a temperature rise of approaching 3°. Even after the agreement, that is the reality, so the question for the world in the run-up to COP29 in Azerbaijan and COP30 in Brazil is whether good words at COP28 are finally matched by actions equal to the scale of the emergency.
These will be the defining two years in this decisive decade, which will shape the lives of generations to come, so we need a Government in the UK who will stop congratulating themselves and using the UK’s record as an excuse for future inaction and instead lead at home in a way that is consistent with what we are demanding of others. The Minister complained about a lack of action on coal at the COP, but the Government are opening a new coalmine, watering down emissions targets, seeking to drill every last drop in the North sea and starting a culture war on net zero. That has sent a terrible message to business, investors and other Governments; one that was heard loud and clear by people at the COP.
Let me ask the Minister four questions about the Government’s approach. First, the COP decision says that we need to “transition away from fossil fuels” in line with the science. The science is unequivocal: for us to meet 1.5°, we must leave the vast majority of fossil fuels in the ground. He is right that many countries fear that some will seek to use loopholes in the COP agreement to avoid that reality. Our Government are doing precisely that: they say they want to drill every last drop in the North sea. The International Energy Agency, the Energy Transitions Commission, the Climate Change Committee and the former president of the COP, the right hon. Member for Reading West (Sir Alok Sharma), all say that that is incompatible with the science. Can the Minister explain how he expects to persuade other countries in the next two years that they must leave their fossil fuels in the ground when he wants to extract all of ours?
Secondly, on targets for 2030 and beyond, the COP decision makes it clear that we need not just ambition but policies that will meet those targets. However, the Climate Change Committee says that we are way off track for our 2030 nationally determined contribution. Can the Minister explain how he expects to persuade other countries to have policies to meet their targets when anyone can see that we are miles off meeting ours?
Thirdly, on finance, I welcome the contribution on loss and damage, but does the Minister recognise the lack of confidence that the Government will meet their promise to provide £11.6 billion of climate finance? Can he explain how he expects to persuade other Governments to keep their promises on finance when people suspect we will not keep ours?
Fourthly and finally, when the Prime Minister spends his time at home describing net zero as a massive burden—which is what he does—how does he remotely expect to persuade others, particularly those in the developing world, that it is a great opportunity? The Prime Minister claimed that nobody at COP raised with him his dither and delay; I suspect that was because he was not there long enough to hear the truth. His U-turns have been incredibly damaging for our country.
The positive outcomes at COP came despite this Government, not because of them. Britain needs a Government who will show climate leadership again—not climate hypocrisy—to cut bills, deliver energy independence, grow our economy and protect future generations. In the next two years more than ever, the world needs climate leadership from Britain. Is the truth not that people at home and abroad have seen enough to know this Government cannot provide the leadership that the world so urgently needs?
The right hon. Gentleman has focused on performance, and I am pleased to say that this Government have met every single carbon budget to date. The only major targets set on climate change in this country that have been failed were—let me think—the target of 10% renewables by 2010, set by the Government of which the right hon. Gentleman was a member. The target of a 20% reduction in emissions by 2010, again set by the Government in which the right hon. Gentleman served, was also failed. Every single carbon budget for which this Government have been responsible since my then party leader became the first leader to call for the Climate Change Act 2008 has been met. Our record is without parallel, and I will not have it trash-talked down by the right hon. Gentleman, whose record in government is so at odds with the words he uses.
On oil and gas, we are a net importer. We are transitioning; as I have set out, we are reducing our emissions faster than any other major economy on this planet. None the less, according to the Climate Change Committee, about 25% of our power will come from oil and gas even in 2050. We will be using mitigation technologies to offset that, but the idea that we should replace domestically produced gas with imported gas with four times the embedded emissions, when it will make no difference to our consumption, is environmental nonsense. That is why we are standing up for the 200,000 people who work in our oil and gas industry as it transitions; it is why we support the £50 billion in taxes that comes from that industry; and it is why we must retain the expertise of people in the sector going forward. The Labour party puts at risk our net zero transition—a transition that it did not set out on properly when it was in government, and that this Government are delivering on. As I said, we have met all our carbon budgets to date.
I welcome the right hon. Gentleman’s point about loss and damage. I assure him and the House that we will meet our target of £11.6 billion in climate finance on the original timetable set out by the Prime Minister. The Prime Minister came to COP, personally committed and passionate about ensuring that nature and forests—on which we have been a leader—were championed at that COP. Hopefully, I will be able to give more detail about that when answering other questions. As we move into the coming year ahead of the Baku COP, we will focus on a new, collective, quantified financial goal. The Prime Minister, with his focus and expertise, will ensure that the UK is an absolute leader in getting that right, amplifying the billions we have today into the trillions we need tomorrow.
I agree that we saw significant progress at COP28, particularly the agreement on transitioning away from fossil fuels in the energy system. However, that agreement and all previous agreements are literally just words on a page; they will come to fruition only if all countries follow through in their domestic policies.
I pay tribute to my right hon. Friend for his efforts at COP26 in Glasgow, including the significant measure on phasing down coal. [ Interruption. ] Could the right hon. Member for Doncaster North (Edward Miliband) be quiet for one second? He did so little in government, and he has so much to say now—it is quite a contrast, is it not?
At COP26 in Glasgow, Scotland became the first developed nation in the world to commit funding to address loss and damage. Does the Minister agree that loss and damage funding should be prioritised to meet the needs of the communities that need it most, and distributed in a way that does not add to the debt burden of the global south? Scotland’s First Minister has welcomed the deal, especially the new pledge of $700 million for loss and damage, but of course, that still falls short of the funding that will ultimately be required. What is the UK doing to push for more funding down the line, and how much will it contribute now?
The former president of COP, the right hon. Member for Reading West (Sir Alok Sharma), made an excellent point. The new agreement reached at COP28 commits all countries to transition away from fossil fuels. We welcome that agreement, to which the UK is of course a signatory. Can the Minister outline how the UK Government’s plan to increase oil production in the UK aligns with the plans to transition away from fossil fuels, and how can we trust them?
I strongly welcome this statement. I congratulate the Minister and my noble Friend Lord Benyon on the negotiations, but also officials such as Alison Campbell and many of the officials in the Department for Environment, Food and Rural Affairs, who played a blinder in working towards and securing the agreement. I also want to pay tribute to the Minister for single-handedly making it possible for so many MPs to attend COP28. I pay tribute to him for doing that, recognising his previous presidency of GLOBE International UK.
I would like to say to my right hon. Friend that I was particularly proud of the mangrove breakthrough moment. I am conscious that the combination of nature and climate going together started very strongly in Glasgow and has accelerated. May I seek assurances from my right hon. Friend that we will commit to the £11.6 billion international climate finance funding? I know we have already started spending some of that. Will he also consider some of the approaches to things such as saltmarshes, the UK’s equivalent of mangroves, to make sure that continuing integration is part of our policy?
My right hon. Friend mentioned the presence of MPs. My first COP was in 2005 in Montreal, and I remember feeling then that the elected parliamentarians, who make the political weather, were not properly accounted for. When I look back to that historic Climate Change Act 2008, I am proud of the fact that my then party leader, the noble Lord Cameron, was the first party leader to support it— [ Interruption. ] If the hon. Member for Bristol East (Kerry McCarthy) could just be quiet for a moment, I was talking about parliamentarians. It was a combination of Friends of the Earth working with Back-Bench parliamentarians and a new green Conservative party, and an early-day motion—an instrument here that is often looked at askance—that triggered the Climate Change Act, which has been significant not only for the UK, but for the world.
One of the key themes at COP28 was food system transformation. Given the Climate Change Committee’s damning criticism of this Government’s failure to make progress on cutting emissions in the agricultural sector, could the Minister tell us what changes he expects to see in UK domestic policy as a result of the agreements reached in Dubai?
Again, the UAE can be very proud of the fact that, among so many other things, it really made sure that food was seen as an important part of this COP. He is right that land-use issues, agriculture and more sustainable agriculture are fundamental to delivering net zero. Under both my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and her successor, we are working very hard to do that at home, but we were also able to announce at COP support for more sustainable agriculture and land use abroad. He is absolutely right that this is an area on which we must keep complete focus. We must make sure that we deliver in that area, as in so many others, to pull together and maintain our net zero pathway.
In the very hot summer of 2022 almost 1,000 wildfires swept through Essex. We are not immune from the real dangers of global warming, so it was a huge honour to be one of the representatives, from this Parliament’s Energy Security and Net Zero Committee, at the COP recently. The rate of new solutions, the rate of innovation and the rate of investment, as well as this new agreement, do bring hope, but promises must be delivered, and there is a gap between the science and the promises. Does my right hon. Friend agree that we must continue to do all we can—locally, nationally and internationally—to close that gap?
I thank my right hon. Friend, and it was good to see her out in Dubai following up on so many of the issues, not least in recognising the needs of the most vulnerable and the poorest communities and countries around the world to ensure that they are not left behind and that we do have a just transition.
My right hon. Friend highlights the fact that she was a parliamentary delegate there, and we were proud to support GLOBE International UK, of which the hon. Member for Brent North (Barry Gardiner) and I were previous chairs, to provide the first ever parliamentary pavilion at COP28. I pay tribute to Malini Mehra, who has headed up GLOBE. She came in when it was in a troubled position for a promised maximum of six months, and she is still there. She is committed to ensuring that parliamentarians are armed with the information they need.
The answer to my right hon. Friend’s specific question is, yes, absolutely. When we consider that the country that has decarbonised most over the 31 years from 1990 to 2021 has reduced its emissions by 48%—namely, us—and that the world, on a 2019 basis, has to cut by 43% by 2030, with many large emitters pointing in the wrong direction, we can see that the challenge and the gap are not to be underestimated. COP28, with the UAE consensus, is significant, but there is so much more to do, and it has to convert into real change if we are to bend the curve further.
There is much in the Minister’s statement that I commend and agree with, and in particular I reinforce his praise to our officials who played such a significant part in the negotiations. I regret the tone of some of his responses to colleagues, because the cross-party consensus on this issue over the past 30 years has been fundamentally important to the progress that we have been able to make. The science is clear; the world’s Governments are not. Those who are ready to deliver the transformation required to win the war against climate change are now considering whether the United Nations framework convention on climate change process is capable of delivering it in time. How long does the Minister think it will be before we see coalitions of the willing, such as the Beyond Oil & Gas Alliance, imposing sanctions on those recidivist countries who are still driving our world towards disaster?
On the coalitions of the willing, the world is changing, and the EU has already legislated for a carbon border adjustment mechanism for selected parts of industry, which will put up a carbon tax or a carbon price at the border. There is a certain intellectual inevitability about that if costs of production in one country are not reflected in others, and ensuring that that is done in a just manner is important. I would hate to look back at COP28 and find that it was one of the last times that countries around the world were able, on the basis of mutual trust, to talk to each other and come to a common agreement. The hon. Gentleman, who is highly experienced in this area, knows just how tender—I am sure there is a better word. The hon. Gentleman knows just how fragile the process could be if we do not all step carefully and ensure that we carry people with us.
The commitment that 24 countries have made to triple nuclear energy capability by 2050 shows that the world has woken up to the most powerful, least land-taking, reliably proven net-zero energy provision that we have in the world. That is testament to my right hon. Friend, his Department and this UK Government, who committed first to 24 GW. Will he join me in recognising that without the world-class skills—I draw Members’ attention to my entry in the register, because I am happily married to a nuclear welder with 45 years’ experience—and the blue-collar workers and nuclear operators working every hour, every day on sites across the UK, we would not, and the world would not be in a position to back atomic energy? Will he join me in commending Britain’s energy coast, which recognise that for us to tool up, retrain, train and recruit, we must regenerate nuclear communities, which are often coastal communities? That is exactly what Britain’s energy coast, and the energy coast business cluster, is doing so well in west Cumbria.
I pay tribute to my hon. Friend and her energetic, continual and well-informed—not least by marriage—understanding of the nuclear industry and its importance. I remember being at Sharm El Sheikh and it seemed that the only people talking about nuclear were 95 youngsters from some tiny pavilion at the back, who were going around promoting its importance. The science says that we cannot get to net zero without nuclear, in the appropriate places and with all the caveats. I remember saying to the incoming UAE presidency that, given their success with their Barakah reactors, and given the need to deliver nuclear and the UK’s determination for a renaissance, surely all countries involved need to come together and send a signal to the world, so that we are not leaving teenagers alone to champion the importance of nuclear. We as a country should step up loud and proud, and face down those who oppose nuclear from an ideological perspective, because it is so important not only to delivering net zero, but to delivering so many jobs in constituencies such as that of my hon. Friend around this country.
I, too, was at COP28, and I congratulate the UAE on what we have all been achieving there. The Minister is right to underline what Britain has done in moving from 7% to half of our energy requirements coming from renewables. He is also right to say that we are still behind the curve. We punched through a 1.5°C increase from pre-industrial levels in July this year, and climate change will soon overtake human conflict as a cause of loss of life. We are familiar with the long-term targets of 2030 and 2050 that the Minister has mentioned, but they are a long way off. Would it be wise to start introducing annual targets —a yearly roadmap—so that we can see incrementally how we will meet those long-term objectives?
Interestingly, my right hon. Friend takes us back to the days before the Climate Change Act 2008 when, if I remember correctly, Friends of the Earth was arguing for annual targets, and that was the Conservative party position. Once the Labour Government agreed to take the legislation forward, they realised, as did the civil servants involved, that there needs to be a period over which these things can be balanced out. I think their thinking was right and that the five-year carbon budgets were right. We do provide an annual report on our performance to date, but overall we have to allow for things such as the pandemic and all sorts of crises that come along. I think the architecture was right—I pay tribute to the right hon. Member for Doncaster North and his Government at the time—and it has withstood the test of time.
As we have heard, the global stocktake decision text that was agreed in Dubai commits the parties to transitioning away from fossil fuels in energy systems. Can I press the Minister to clarify what the Government believe the implications of that aspect of the agreement are for the UK? Will it mean that the UK Government now have to accelerate action to reduce our dependence on fossil fuels in what remains of this decade? If so, what new measures will be needed? If not, are the Government really saying that the COP28 agreement changes nothing for the UK when it comes to fossil fuel usage?
I thank the hon. Gentleman for his question, which is a good one. Our nationally determined contribution and emissions promise for 2030 is for a 68% cut from the 1990 basis—far more than any of our peers. We can be proud of that. It was set precisely because it was, on the advice of the Climate Change Committee, aligned with a pathway to net zero 2050. None the less, the hon. Gentleman is right to say that we keep our policies under review, and as that committee pointed out this year, there are still gaps that need to be made up to ensure we deliver on that. We have always managed to do so before, and I am confident we will do so again. He is right to say that we should continually look at our policies to ensure that they keep us there, whether or not that deals specifically with fossil fuels. We are trying to move to zero-emission vehicles. Today we have made an announcement on hydrogen, with 11 projects being funded to produce green hydrogen around the country. We are, step by step, across the piece, putting in place the required policies. That means doing everything within the window to keep ourselves in our world-leading position, which is cutting emissions more than any other major economy.
May I build on the wise words of my hon. Friend the Member for Copeland (Trudy Harrison), and congratulate the UK Government on signing the statement on civil nuclear fuel co-operation with the United States, Canada, France and Japan? That statement to secure supply chains, particularly of uranium, is so important, and the Government-led $4.2 billion of external investment will go a long way to securing our energy side when we need an energy mix. Does the Minister agree that that is exactly what the UK needs, not only for its energy security, but to meet its net zero targets?
My hon. Friend, as always, is well informed and insightful. We were pleased, along with 21 other countries, to join NetZero Nuclear, because nuclear has such an important part to play. As I said in a previous answer, we need literally everything, and we are pushing the envelope across the piece. By doing so, we are developing technological solutions that will not only serve our needs, but can be exported around the world for many years to come.
The Minister is right that COP is about people and relationships. I was also at COP, and heard first hand what country representatives were saying about the recent actions and messages coming from this Government, in stark contrast to some of what he is saying today. The Prime Minister has spent recent months wrongly telling the country that net zero is a huge burden, rather than the economic opportunity of the 21st century. How can he as a Minister go to developing countries saying that they must seize these opportunities provided by net zero, given his Prime Minister’s message at home?
As delightful and pleasant as the hon. Lady is outside the Chamber, she is always challenging within it. The Prime Minister remains committed. He has insisted on our commitment to net zero and our 2030 nationally determined contribution, while ensuring that we carry people with us. He was delighted to announce £1.6 billion of UK funding for new climate projects while at COP, including £887.8 million of new and additional financing, with other announcements focused on driving forward climate action on forests, finance and net zero transitions. This Government are walking the walk while ensuring and making no apology for the fact that we seek to maintain the national consensus and carry people up and down the country with us as we continue to lead. [Interruption.] The right hon. Member for Doncaster North insists on giggling, but we are leading in the way his Government singly failed to do before 2010.
Following on from my hon. Friend the Member for Cardiff North (Anna McMorrin), the way that the Prime Minister recalibrated the Government’s policy in this area had the opposite effect to the one we all would like to have seen. We got the following headlines: “Sunak’s U-turns make net zero harder” in The Guardian ; “Could Rishi Sunak’s green review threaten UK net zero?” on the BBC; “Sunak’s net zero backsliding ‘deeply damaging’ for Britain” in The Daily Telegraph ; and “Climate tech backers slam Rishi Sunak net zero retreat” in the Evening Standard . Does the Minister not get that these messages are heard across the globe? Will he go back to No. 10 and ask the Prime Minister to be just a bit more careful in his language and how he says things so that we can get net zero over the line?
In maintaining the public commitment to net zero, it was important to say to people in my rural east Yorkshire constituency, for example, who are off the gas grid and fearful concerning heat pumps, that they would not see their boilers ripped out when they did not think there was an affordable and deliverable alternative. As the Prime Minister announced, we combined that with a 50% increase in the heat pump subsidy level to £7,500, and we saw a tripling of interest in the following week. Words do matter, but there are many constituencies to talk to. I look to the hon. Gentleman to help provide the proper balanced and nuanced view. This country has cut its emissions more than any other major economy on earth and we have more ambitious plans going forward. The Prime Minister is behind net zero. We must have a balanced discussion to show that we are not inflexible. We are prepared to work with people and ensure we do it in the right way.
The Minister said that we have to ensure we are not inflexible. The reality is that a number of the policies and issues we are discussing will have an impact on the next generation and the one after that. Whenever I go into schools in my constituency, the young people raise climate change with me. The reality is that climate change is harming children’s rights and access to food, water, healthcare and education. Does the Minister agree with UNICEF on the need to build towards a climate change action plan for children and young people by calling for an expert dialogue on children and climate change to be held mid-year at the session of the subsidiary bodies in 2024?
The hon. Lady is right to highlight children, who will inherit the planet we leave behind. In the meantime, they are peculiarly vulnerable to the negative impacts we are already seeing this year, let alone those we will see if we get to 1.5°C or beyond. She is right to highlight that. I cannot comment on the specific question she raises, but I will make sure that it is heard on the Treasury Bench and let her know as and when a decision is made by the Government. She is right to say that, just as we must ensure that the voices of the small Pacific island states and others are heard, because they are so much on the frontline, the voice of youth must be heard. I was pleased to meet youth representatives at COP28. We must ensure that we look to the people who will inherit the policies that we of a slightly greater age make in this Chamber.
I thank the hon. Gentleman for his as ever gracious question. One of our disappointments—there were things we were disappointed with in the UAE consensus—was the watering down of elements we would have liked to see on human rights. He is right to highlight that. We have always wanted loss and damage to focus on the most vulnerable. The least financeable of all are people in an already parlous economic position, often at low scale, who are under threat from climate change. We hope that the funding that has been created for loss and damage can complement adaptation funding as well as mitigation work, and have climate justice at its heart. We have to look after the weakest and poorest on the planet. However unsympathetic the science, we have to ensure that policy recognises the realities for people all over the world.
Full debate: COP28
The world sorely needs leadership at COP28, but the verdict of our most globally respected climate expert, Lord Stern, earlier this month was damning. He said that the Government’s backsliding on climate action is a “deeply damaging mistake”—damaging for the UK, the world and the future of us all. Will the Secretary of State take this opportunity to place on record her response to Lord Stern?
Full debate: Oral Answers to Questions
Does the right hon. Gentleman acknowledge that I said it would also help fund renewable energy? Does he disagree with the view that a future with renewable energy would help to bring bills down?
The right hon. Gentleman made a very good point earlier about the difference between the percentage of renewables for electricity and the percentage of renewables for energy overall, including heat and transport. Does he acknowledge that the United Kingdom is currently 75% dependent on oil and gas, and does he agree with the members of the Climate Change Committee, who have stated that themselves, and who have predicted that by 2050, when we get to net zero, the proportion will still be about 20%?
I think the Climate Change Committee is actually saying that its most ambitious scenario, which we should be aiming for, is for us to cut the use of gas by 90%. We are going to carry on using North sea oil and gas, but the question for the hon. Gentleman, and for the whole House, is this: do we choose, for the future, to carry on drilling every last drop? That is the Government’s policy, in contravention of all the scientific advice, which is that we will end up in a 3° world—needing billions of pounds of taxpayer subsidy to bring about that investment through persuasion, and diverting investment from the private sector. Personally, I do not think that that is the right choice.
Here is the thing, the Bill is not motivated by millions of people lying awake at night, worrying about the cost of living crisis; it is motivated by a Prime Minister lying awake at night, worrying about the Conservative party crisis. The interesting thing is that this Bill was planned well before the right hon. Member for East Surrey (Claire Coutinho) became Energy Secretary. It is the last desperate throw of the dice by what we might call the No. 10 galaxy brains, to use climate change as what they call a “wedge issue.” They say this to the newspapers all the time. Series 1 of this new strategy was aired in September, when the party of Churchill and Thatcher became the peddlers of wacky conspiracy theories they found on the internet: abolishing the mythical seven bins; ending the imaginary threat of compulsory car sharing; saying no to invented conspiracy theories on 15-minute cities; and fighting the fictional meat tax. And now we have a sequel. No longer a few throw-away conspiracy theories, this is now the central strategy of their legislative programme.
Members should not take my word for it. It is what the Prime Minister’s advisers brief to the papers day after day. One paper I read on Monday reported that the Prime Minister wants to “weaponise climate change” as a wedge issue. Where the British people see an energy crisis forcing up their bills, the Government see a wedge issue. Where the British people ask how they can have liveable towns and cities with good transport, the Government see a wedge issue. Where the British people worry about the effect of the climate crisis on their kids and grandkids, the Government see a wedge issue. The point is that the Government cannot really deny it, because they know this is what they are saying every day. “We think there is a big opportunity for the Conservative party to try to create division on climate change.” That is why the Prime Minister uses words like “eco-zealots.” It is all very transparent. They are locked in the boot of a strategy. Whether they agree with it or not, that is what is happening.
It is not just a retreat from the consensus; it is a retreat from reality. The reality is that there is a global race, with countries seeking to go further and faster to create the jobs of the future. No wonder business is horrified. Just last Monday, Amanda Blanc, the chief executive of Aviva, warned about the Government’s commitment to unlimited oil and gas drilling. She said that our climate goals as a country are “under threat”, which
The Government try to claim that this is somehow consistent with climate leadership. I mean, come off it!
Seven hundred British climate scientists oppose the changes, and so do the International Energy Agency and the Climate Change Committee, which my hon. Friend the Member for Warrington North (Charlotte Nichols) quoted:
“Expansion of fossil fuel production is not in line with Net Zero.”
The Government’s own net zero tsar, the right hon. Member for Kingswood (Chris Skidmore), who is in his place, also opposes them. They appointed him to advise them on climate and energy. They said how brilliant he is, and I agree—sorry to ruin his career even further. He is a very intelligent guy. [ Interruption. ] He is denying it. He has great ideas, and what did he say?
“There is no such thing as a new net zero oilfield.”
Those are not my words, and they are not the words of eco-zealots or Just Stop Oil; they are the words of the right hon. Gentleman, who sits on the Government Benches. He signed the net zero target into law, for goodness’ sake. We have to grow up.
In contrast to the right hon. Gentleman, we have the Minister for Energy Security and Net Zero, whom I like — [ Interruption. ] I do. We have worked together on climate, but I will now say something not so nice about him. This is what he said yesterday:
I can tell the Secretary of State and her colleagues that this strategy is doomed to fail. The British people do not want a Government who say, “We are going to weaponise the climate crisis.” They do not want a Government who say, “We are desperate. We are behind in the polls”—I remember that feeling—“and we therefore have to turn this into a wedge issue.” They want a Government who will cut bills and tackle the climate crisis. All the Government are doing day after day with all this nonsense is proving that they are not the answer.
A Labour King’s Speech would legislate to lift the ban on onshore wind, to speed up the planning process and to sort out the grid, so we can decarbonise our power system by 2030. Clean power is the foundation, and next comes energy efficiency. I am afraid that here the Government have utterly failed, and their complacency is extraordinary. This is what the Climate Change Committee said about the whole sector:
Full debate: Making Britain a Clean Energy Superpower
The definitive analysis of the recent announcements came last Thursday from the Government’s own watchdog, the Climate Change Committee. It said this:
“The cancellation of some Net Zero measures is likely to increase both energy bills and motoring costs for households”.
When the Secretary of State dumps other targets, I have to ask: who set these targets and then failed to take the action to meet them? The Government did. Laughably, they say that this is about long-term decisions. The biggest long-term cost that the British people face is failure to act at the scale required to tackle the climate crisis. The Secretary of State says again that the Government are on track to meet their 2030 target, but their own watchdog said in June that they were “significantly off track”. It says—this is from last Thursday—that the Government have not offered evidence to back their assurance
Finally, let me say to the Secretary of State that the consensus on net zero has been hard-won over two decades. We have a duty to debate it on the basis of facts, not falsehoods. I have to say to her that it is deeply regrettable that she used her first major public appearance—two weeks ago at her conference—literally to make up complete nonsense about meat taxes, which I notice she did not defend today, and for which frankly she was exposed on national television. I say to her that it demeans her, it demeans her office and it demeans public debate. The Government said that they were going to move on from the premiership of Boris Johnson, but people will be deeply disturbed to find that that appears to mean dumping commitments to net zero and keeping his peculiar relationship to the truth.
On the question of dietary changes, the right hon. Gentleman might like to speak to his shadow climate change Minister and shadow Chief Secretary to the Treasury, who both have pushed to treat meat like tobacco in the past. The substantial point that I would make is that we need to be practical about our net zero policy and to make sure that we are having honest debates. We on the Conservative Benches stand by our record. We are proud to be the party that has decarbonised faster than any G7 country, and it is regrettable that the Opposition cannot acknowledge that achievement. We are proud that we have secured almost £200 billion of investment in low-carbon energy projects since 2010 and that we have helped to secure this country’s energy independence by backing North sea oil and gas, protecting 200,000 jobs.
Can the right hon. Gentleman be proud of his record? He said that we should sacrifice our growth to cut emissions and that we should borrow £28 billion in his blind ambition for 2030. He supported coal, before he changed his mind and is now against it. He also said that growing our renewables sector to 40% was pie in the sky, but in the first quarter of 2023, 48% of our power came from renewable energy. He spent years at Gordon Brown’s side and as Energy Secretary but did nothing to boost British nuclear in his time in government, whereas we are forging a new path, with every operational nuclear power station in this country having started life under a Conservative Government. Members do not need to take my word for it that our energy security is safer with us, because just this weekend the owners of Grangemouth made it clear that the threat Labour’s plans pose to the future of the refinery, potentially putting thousands of jobs at risk, would be a danger for energy security. Furthermore, we cannot allow oil and gas workers to become the coalminers of our generation. It has been said that Labour
Furthermore, the right hon. Gentleman talks about uncertainty. If he would like to give the business and industry certainty, he and the shadow Chancellor need to sit down and agree how much money they will actually spend—is it £28 billion or £8 billion? Is it no new money, or is it what we heard over the weekend, which is as much as £100 billion of new borrowing for GB Energy? Conservatives will prioritise energy security. We are set on delivering the most ambitious net zero targets of any major economy, and we will do this all without forcing families to choose between protecting their family finances and protecting the planet.
I warmly welcome what my right hon. Friend has just said about the focus on the grid and accelerating grid access. I hope she will be able to pick up on the report that my Committee is undertaking on that subject and that we can contribute to her deliberations. As she will be aware, I wrote to the Prime Minister on behalf of the Committee in the week following his speech, offering him an opportunity to put some flesh on the bones of what his more pragmatic approach to achieving net zero ambitions actually means. Will she confirm when my Committee can expect to receive a reply to that letter? Will it include an analysis of the impact of the trajectory of delivering net zero on the five-yearly carbon budgets and, in particular, how the announcement we have just had confirmed by the Transport Secretary, who is sitting next to her, on maintaining the zero-emission vehicle mandate will impact on that trajectory?
I thank my right hon. Friend and commend his long-standing work on environmentalism; I have been privileged to work with him on this before. I will be responding to him and I look forward to coming to speak to his Committee in due course. We set out unprecedented levels of detail in the analysis of how we are going to meet the targets earlier this year. I also accept the Climate Change Committee’s analysis, which is that the changes we have made are not materially different in terms of achieving our targets—we are absolutely committed to making sure that we do so. As he rightly points out, the biggest announcement we have made on achieving those targets is the one relating to the grid, which will allow for much greater and quicker electrification of society when it comes to the impacts of other proposals.
What does the Prime Minister do when faced with difficulty? He scraps the energy efficiency taskforce after just six months—it is utterly embarrassing. If this Government were so worried about the affordability of climate measures, why were they offering less support than the Scottish Government for heat pump installation, and why do they keep cancelling successive home insulation schemes? Of course, all this follows the Tories permitting a new coal mine, along with the Cambo and Rosebank oilfields. Is the Secretary of State at all surprised that two thirds of UK voters say that the Tories cannot be trusted on climate change?
Scotland’s ambitions in this area are far greater and faster. Scotland’s Net Zero Secretary, Màiri McAllan, said that the Scottish Government had been
The Prime Minister’s reckless decision, combined with the United Kingdom Internal Market Act 2020, makes it extremely difficult for Scotland to hit our targets. Last week, Scotland transferred—it would be an export, post-independence—more than 400 GWh of renewable electricity to England. Many other wind power schemes are in development, including the world’s biggest at Berwick Bank, which will ensure that Scotland is one of the world’s biggest exporters of clean green energy. We also have two hydro schemes ready to go, if the Government were to put the contractual agreements in place.
Scots often ask about the costs and benefits of this unequal Union of ours. Many will now wonder if watering down our climate ambitions or the obligations we committed to at COP26 is too high a price to pay.
I thank the hon. Gentleman for his questions. Let me be clear: there has been no watering down of our targets. We have the most ambitious decarbonising targets of any major economy, and we have not changed those at all. We are resolutely committed to them. By 2030, we will have cut emissions by 68%; the US is planning to cut its emissions by 40% and the EU its emissions by 55%. The people of Scotland will be very proud that we are the most ambitious major economy in the world, and we will work towards that together.
We have worked with the devolved Administrations since the announcement, and I am due to speak to my counterpart in due course—I have been in correspondence with him. One of the biggest things that we will do that will be helpful for the Scottish people particularly, and that will bring benefits to the renewable energy sector, is to improve the grid. Having spoken to more than 100 investors, I know it is their biggest ask, and it will be very positive, not just for Scotland but for the whole of the UK.
I thank my right hon. Friend and he makes an excellent and correct point. While making sure that we grow our intermittent energy sources such as solar and wind, we must also have a stable baseload underneath that. He is right that hydrogen will play an interesting role, and I am speaking to the sector about how we can move forward. It is an exciting policy area and I will explore it in many ways. We also have a trial on heating homes. I pick him up on one point: we will be using gas for a long time. Even the independent Climate Change Committee acknowledges that we will still be using gas in 2050.
When the new Select Committee on Energy Security and Net Zero first met, the first thing we did was to have huge roundtable days with over 50 different stakeholders from the sector. Time and again, those stakeholders talked about the tardiness of getting planning approval and access to the grid, so I absolutely welcome action that will deliver cleaner, cheaper and more secure energy. I also get the point about needing carrots, not sticks, for electric vehicles. In my constituency, those with driveways pay only 5% tax on their electricity, but those who do not have a driveway have to pay 20% tax. That is true all across the country, so will the Secretary of State join me in pushing the Chancellor for those carrots to be fair carrots?
For example, we have heard from the Climate Change Committee that the changes when it comes to landlords and efficiency standards in homes will cost renters an extra £300 a year. The Office for Budget Responsibility is clear that, as a result of the changes that are going to be made, our dependence on gas will cost us more. If the Government really cared about hard-working families, they would not be handing Equinor £3 billion to develop the climate-wrecking Rosebank oilfield; they would be admitting that what the Secretary of State is doing is ripping up the climate consensus for short-term electoral calculation and populist right-wing propaganda.
Turning to Equinor, far from us paying that company money, that is something that will pay tax into the Exchequer, unlocking green investment and allowing people in the wider sector to continue in 200,000 jobs across the economy. Those are jobs, people and communities that we will need in the transition to renewable energy, because they are the same people with the same skills that will be used. It would be right for the hon. Lady to talk to the people of those communities about this issue.
“In Vauxhall these climate policies would help local parents like us to pay our energy bills this winter and keep our children safe and warm. Without these policies children in London face a bleak future as the climate crisis does irreparable damage to the world around them.”
The Secretary of State has suggested that many people have not bought into the concept of net zero. Instead of seeing that as an opportunity for leadership, the Government play into misinformation about made-up taxes and the seven deadly bins. She will be aware that Northern Ireland is already a laggard on climate issues because the Assembly was collapsed just after it had finally passed binding targets, and before it had taken any meaningful action on issues such as retrofitting, planning for renewables and transforming agrifood. Is she also aware that Northern Ireland relies largely on the all-island single energy market for our energy needs, and is she confident that her Government are keeping up with their responsibility to ensure that we match the standards of that market?
We care about climate change, which is why we have the most ambitious targets of any major economy. That is what we have delivered on to date, and that is what we will be delivering on when we get to 2030 as well. As for the single electricity market, I am familiar with that, and we talk to our Northern Ireland counterparts regularly to make sure that it is working in a way that benefits the Northern Irish people.
The Secretary of State is right: we must take people with us on this journey to net zero. When it comes to incentivising people in the take-up of electric vehicles, what more can the Government do to broaden—or turbocharge—the provision of public EV charging points by companies and councils?
It was clear from talking to industrialists about net zero and carbon capture last week that they were exasperated with the Government’s start-stop approach to business, the snail’s pace of decisions and, of course, the lack of clarity. The Chemical Industries Association has reported declining production and said that domestic demand remains low. It needs CCUS, its fellow industrialists need CCUS and net zero needs CCUS. When will we get some final decisions, or are those initiatives also under threat?
Further to the question from my right hon. Friend the Member for Wokingham (John Redwood), synthetic fuels—by that, I mean genuinely synthetic fuels made from green hydrogen and atmospheric carbon capture, rather than biofuels or fuels from waste—are net zero, because the amount of carbon at the tailpipe is the same volume recaptured to make the next lot of fuel, yet the myopic zero-emission vehicle mandate prevents the UK from benefiting from synthetic fuels for our road vehicles. Will my right hon. Friend show the same welcome pragmatism she has shown to the rest of the agenda and revisit the zero-emission vehicle mandate?
We have set out our position on the zero-emission mandate. However, we are also looking at synthetic fuels. As I said, we are consulting on them for aviation, and we can look at them more broadly. However, we have set out the position on the ZEV mandate, which has been widely welcomed.
Given that the rowing back on the commitments towards net zero came on the first day of the parliamentary recess, it looked an awful lot like there was an attempt to avoid democratic scrutiny. The Secretary of State has said that she wants to take people with her. May I put to her a group of people she could take with her by reversing some of these daft decisions: private renters. When I meet families who are renting from private landlords, particularly in the Marsh area of Lancaster, I hear that their energy bills are far higher because of their doors and windows and how their roofs are leaky and not insulated. That rowing back on the standard in the private rented sector is costing families more. Will she please look again at that?
What role does she see for the concept of 20-minute neighbourhoods in helping the United Kingdom to meet its net zero targets?
The point of our proposals is to make sure that people have choice, that we can bring people with us and that people can live their lives in the way they want to. We can enable them through decarbonising the power grid and giving them alternative options, so we can make sure that we can get to our net zero targets in a way that is practical and achievable for families.
At the Democratic Unionist party conference on Saturday past, the Ulster Farmers Union, of which I declare I am a member, had a leaflet on achieving net zero. Can the Secretary of State outline how we will meet our international obligations in terms of net zero with this rollback and how firms and farmers that have already invested in green policies and procedures will be able to compete with those who can go full steam ahead with older practices and no incentives whatsoever to change?
We are not rolling back from our targets at all; I agree with the Climate Change Committee’s assessment that there is no material difference between the projections in June and the recent assessments it made post the announcements. I welcome a lot of the work that many of our farmers are doing to pursue environmental goals. I have talked to many in my constituency who are doing quite phenomenal things at a local level. They will be supported by our agriculture policy, the landmark Agriculture Act 2020 and the Environment Act 2021 that we have brought forward in recent years.
I welcome the Government’s belated recognition that net zero policies are costing individuals in their pockets, costing jobs and of course producing huge profits for the eco industry. But is the Secretary of State not concerned that, by maintaining the legal target for 2050, she hands a weapon to those who want to use the judicial review mechanism either to delay or to stop important decisions on airport expansion, new roads and oil and gas licences—delaying even some of the policies that she says today she wants to delay to save people money?
The Secretary of State is explaining that she is only slowing the Government’s headlong dash to net zero because of waning public support. When did the Secretary of State think that she was ever going to maintain public support for policies that will make our constituents poorer, colder and less free, while at the same time allowing communist China to increase its emissions by more than our total emissions in every year of this decade?
Full debate: Net Zero by 2050
To ask the Secretary of State for Energy Security and Net Zero if she will make a statement on the implications for offshore wind of contracts for difference allocation round 5.
The Government also remain committed to our target of decarbonising the power system by 2035 and our ambitions for 50 GW of offshore wind, including up to 5 GW of floating offshore wind. Our trajectory for meeting these aims, as well as our legally binding carbon budget 6 targets, is not linear. The outcome for one technology in one auction does not prevent us from reaching those goals.
The critical need for massive investment in offshore is patently obvious for bills and for the climate, yet this ambition has been thwarted by an incompetent previous Secretary of State and by the Treasury, which knows the price of everything and the value of nothing. Can the Minister assure us that the Department will get round the table with industry as a matter of urgency to try to repair this damage? Industry needs a strike price that reflects the not-mutually-exclusive goals of lower bills, net zero, and jobs and investment in Scotland and elsewhere. Can he confirm whether a recovery group for auction round 5 will be convened by him or the Secretary of State to try to get this catastrophe resolved? And where is she?
I call the Chair of the Select Committee on Energy Security and Net Zero.
Offshore wind plays, and will continue to play, a key strategic role in enhancing energy security, achieving net zero and revitalising coastal communities such as Lowestoft. To get back on track, can my right hon. Friend confirm that the criteria applying to round 6 will take account of current economic realities, that appropriate fiscal measures are being considered ahead of the autumn statement and that specific focus will be given to enhancing local supply chains?
We have to set the parameters based on the best information we have. As I say, one reason for moving to an annual round is to allow us quickly to learn the lessons of each round. We did not get the wind on this occasion, which I regret, and we will put the real-world prices and learnings from that into the next round. That is the system we have, because we are always trying to make sure that we get the parameters right so that we balance the need to generate additional green energy with the cost to the taxpayer. Understandably, given their carelessness with the public finances and with consumers, the Opposition do not seem to care about that. My job is to balance it, ensuring that we get the generation, and we have 77 GW in the pipeline. We are in position and on track to meet our ambitions, which lead Europe—not that we would know that to listen to the hon. Lady.
Delivering on the floating offshore wind project in the Celtic sea is vital for our energy security and decarbonisation. Does the Minister agree that we now need to bolster confidence in this emerging industry? There are two things he can do. Does he agree that a successful allocation of FLOWMIS money to the south Wales ports in order to get this industry moving is vital? Does he also agree that we need to ensure that the Crown Estate’s leasing round at the end of the year is done successfully, but with more than 4 GW of visibility, in order to send a strong market signal to the industry to invest?
The Government’s obsession with oil and gas has left us in this mess. The Department has prioritised new oil and gas licences over support for wind power, which flies in the face of our climate change commitments and our responsibilities to UK citizens—our constituents—to keep energy prices low. Oil and gas will always be more expensive than wind energy. When will the Minister fill the gap of 5 GW of offshore wind that we have now missed out on, which would have saved consumers £2 billion a year? I am not talking about the sixth auction round—I am talking about the fifth one, where we have missed out now.
I do not agree with the policy that the Minister pursues. His net zero policy is disastrous and has been costly in terms of electricity prices and future planning. However, I feel some sympathy for him today. He is being criticised by those who have highlighted high energy prices for not offering inflated prices to the wind industry, which claims that producing wind energy is getting cheaper but of course wants higher prices. As it was not offered that, it would not bid in the auction. Is the real reason for this not that for the first time he has refused to allow those who bid to walk away from their CfD agreements, to price electricity at whatever price they want and therefore to have inflated profits? Does that not indicate to him that the wind industry knows it cannot produce electricity cheaply and wants the system balanced in its favour?
The right hon. Gentleman and I do not see eye to eye on net zero or on the economic benefits of the wind industry. It does offer cost-effectiveness. It has been amazing to see how as it is scaled, it has been able to bring the price down. It was not obvious when we went out into the North sea that we would be able to bring the price crashing down, yet this country led the world in doing that. If he looks at the numbers, I hope he will find that the whole of this House can agree on one thing: offshore wind is an economic way of producing energy, and one that all of us should support.
It is abundantly clear that private capital cannot deliver what is urgently required to stem the climate crisis. In Wales, the Welsh Government know that, which is why, over the summer, they launched the community-owned renewable energy company, Ynni Cymru. Does the Minister agree that that is what is required, and what action is he taking to address this?
I thank the hon. Lady for pulling back the veil on Labour’s real policy, which is that it hates private capital, it hates private investment and it would destroy the phenomenal success of this country in generating that. [Interruption.] The Front Benchers can heckle all they like, but that is what their Back Benchers want. That is the policy that threatens the British people and threatens our path to net zero. We must make sure that people such as the hon. Lady never have power in this country.
In light of the disappointing results of the CfD AR5 auction and given that I am always trying to be constructive in my contributions in this House, will Government revisit the exclusion of Northern Ireland renewable projects from the scheme, especially in light of the significant increase in onshore wind and tidal stream projects supported by the AR5? Northern Ireland is perfectly positioned for onshore wind and tidal stream to make a major contribution to energy security and net zero from AR6 and beyond. Will the Minister commit to enable Northern Ireland to be part of AR6?
Full debate: Offshore Wind Contracts
Six days ago, the Climate Change Committee delivered its most scathing assessment in its history on the Government’s record, saying that they were off track on 41 out of 50 key targets. It said that we have gone “markedly” backwards in the past year, on the Secretary of State’s watch. Who does he blame for this failure?
Full debate: Topical Questions
That answer is total complacency from a Secretary of State who has just been proven to be failing on every major aspect of his agenda. That is why Lord Goldsmith resigned. Lord Deben has said he is failing, and the right hon. Member for Maidenhead (Mrs May) has said that we are losing the global race. Is not the truth now that even the Tories do not trust the Tories on the climate crisis?
Full debate: Topical Questions
For us, the central truth that frames this Bill is, as the Secretary of State said in his speech, the energy bills crisis, with bills still double what they were 18 months ago. This crisis demonstrates the urgency of getting off expensive fossil fuels and moving to clean power. Clean power is the route to cheaper bills, energy security, long-term sustainable jobs and tackling the climate emergency. The peril for Britain is the deep uncertainty about whether the Government are doing what is required to make the transition happen with the urgency needed. Let us look at the last couple of months alone. In March the Climate Change Committee stated that the Government are “asleep at the wheel” on their 2035 decarbonisation target. In the same month the National Infrastructure Commission said that
“At the current pace of change, the UK is set to fail to hit its target of decarbonising the power sector”.
The common theme is one we have heard many times about this Government: they act as if this was not the emergency it is. The Bill needs to put that right, so we apply three tests to it: does it represent an all-out sprint for zero-carbon power, the linchpin of a net-zero country; does it provide a proper plan to spread the benefits of cheap, clean power to working families across Britain; and does it provide an industrial policy that means we can win the global race for the jobs of the future? In that context, we will give our support to the Bill, because we welcome many of the measures in it and believe they are long overdue. We have long called for the independent system operator and planner—I will come on to that—as well as the CO 2 licensing regime, because, as the Secretary of State said, carbon capture and storage is important for the future. We welcome measures to support hydrogen, nuclear and action on the grid, and a number of other aspects of what we might call “green plumbing”, which is largely what the Bill is about. We also welcome the improvements made in the other place, for which I thank their lordships. I will come on to those in the course of my speech.
This ban has meant that in the eight years since 2015—the Minister for Energy Security and Net Zero was candid about this earlier this year—just three wind farms have been built in the whole of England. Since 2015, we have had five Prime Ministers and just three onshore wind farms. I make that to be three fifths of the wind farm per Prime Minister—that is my great maths. That is quite the record.
Members across the House will have different views on wind farms, but the cost of the ban— [ Interruption. ] The Minister for Energy Security and Net Zero is chuntering from a sedentary position, but these are his figures, which he said at Energy questions. According to Carbon Brief, the cost of the ban is more than £5 billion. That is £180 per household because of the expensive gas that we are importing when we could be using onshore wind. In future, failing to achieve the doubling of onshore wind deprives us of another 20 GW of power. Any self-respecting energy Bill would lift that ban. Even the right hon. Member for North East Somerset (Mr Rees-Mogg), who is sadly no longer in his place, called for the ban to be lifted when he was briefly Energy Secretary—that was not a glorious time, but he got it right when he argued for bringing that position into line with other infrastructure. In December, in a promise made by the Government, the Communities Secretary said that, by the end of April, the ban would be lifted. We have gone beyond the end of April.
If the regime is to work—I concur with the interventions on the Secretary of State—we need a price regulator in Ofgem that supports and never stands in the way of change. I hope that the Secretary of State’s failure to say that he would oppose such an amendment is a good sign, but obviously Ofgem should have a formal net zero duty. I think that was recommended by the net zero tsar, the right hon. Member for Kingswood (Chris Skidmore), and it was rightly inserted by the House of Lords. However—this is boring but very important—we also need to sort out the issues of planning.
The National Infrastructure Commission recently produced an important report about the delays to planning. It said that, in part, that was the fault of Government, who have not updated their energy national policy statements for a decade. It also said that there should be a statutory duty on the Government to review them every five years, and we agree. Here is the other thing that is important: all relevant regulators, including the Planning Inspectorate, should have a net zero duty, because otherwise we will find the system being slowed down and gummed up. Of course, the views of local people are important and must be taken into account, but we must also make progress.
We also believe—this is an important point—that the Bill should remove the 2015 duty to extract every last drop, the so-called maximum economic recovery, from the North sea. I can do no better than to quote the net zero tsar, the right hon. Member for Kingswood, praised by the Secretary of State, who did a very serious piece of work—Government Front Benchers are nodding. What he said could not be clearer:
“developing new oil and gas fields is incompatible with limiting warming to 1.5°… There is no such thing as a new net zero oilfield.”
Those are not my words, or those of the Liberal Democrats or any other party in this place. [Interruption.] The Secretary of State starts chuntering, but he should talk to his own net zero tsar, who did a brilliant report that he himself praised.
Here is the other thing, which is a new part of this. We now know how much the Government are having to shell out to the oil and gas industry to persuade it to make this investment, because it is in the detail of the Budget Red Book: over £11 billion. The current Prime Minister, the previous Chancellor, introduced a windfall tax, but then he introduced an absolutely massive super-deduction—not available now to any other industry, including renewables—of over £11 billion. Massive, massive cost to the taxpayer, no impact on bills, the oil from Rosebank exported, and driving a coach and horses through our climate commitments—no wonder the net zero tsar concluded that it is the wrong policy for Britain. It is. Government Members can carry on pretending that business as usual is consistent with the science and consistent with what we go around the world saying, but it is not and the net zero tsar has rightly said so. Labour will seek to improve the Bill so that it delivers on the zero-carbon sprint we need.
One great thing in this House, compared with other countries, is that we have established a cross-party consensus on following the science. But the science could not be clearer. That is why 700 scientists wrote to the newspapers a few weeks ago to say, “This is our view.” That is why the IEA says it. That is why the UN Secretary-General says it. That is why the net zero tsar, when he looked at the evidence, said it. It is not me making it up; it is what the clear evidence is. The hon. Gentleman is right that we will continue to use our existing fields, but to grant new licences and new exploration, defying what all the science tells us, would be a betrayal of future generations. I do not pretend it is easy—I do not—but it is absolutely crystal clear. [Interruption.] They say, “More imports.” No, the answer is to get off fossil fuels and drive towards low carbon.
It is Labour’s view that the Bill is necessary but not sufficient given the scale of challenge and opportunity that we face. We welcome many of its measures, which are long overdue reforms that will make the delivery of net zero easier. On the basis of the common ground that does exist, we will work constructively with the Government. The Bill will be useful to whoever is in government after the next election, but for all its length, the truth is that it is further proof that Britain will require a new Government to do what is truly needed to lower bills, give us energy security, create jobs and show the climate leadership that we need.
Full debate: Energy Bill [Lords]
I thank the Minister for his statement, but let me tell him that although there may have been thousands of pages published this morning, this is not the green day that the Government promised, but a groundhog day of reannouncements, reheated policy and no new investment. The documents are most notable for their glaring omissions: there is no removal of the onshore wind ban that is costing families hundreds of pounds on bills a year. There is no new money for energy efficiency to insulate homes and cut bills, just a reannouncement of a feeble offer made last year. There is no net zero mandate for Ofgem, as recommended by the right hon. Member for Kingswood (Chris Skidmore)—to whom I too pay tribute—and as demanded by industry. There is no proper response to the Inflation Reduction Act, even as the rest of the world speeds ahead.
The biggest indictment of all, buried in the fine print and not mentioned by the Minister, is the admission that the policies announced today do not deliver the promise, solemnly made in front of the world at COP26 in Glasgow barely a year ago, to meet the UK’s 2030 climate target. The Government waited until noon, five hours after all the other documents were published, to release the carbon budget delivery plan—which is more like the failure to deliver the carbon budget plan. This is what it says:
Secondly, there is no new investment in hydrogen. Germany is investing €9 billion in hydrogen, compared with £240 million from the UK. Does the Minister recognise the failure of ambition? Thirdly, it is good that the Government have finally allocated some resources to CCS, although I am old enough to remember the £1 billion CCS competition announced in 2008, 15 years ago, which they cancelled. However, they still appear to have no clue where the up to £20 billion of support is coming from, and it was not in the Budget documents. Can the Minister clear that up?
Fourthly, on the response to the Inflation Reduction Act, British businesses are crying out for action now, yet the Minister’s own documents published today show that the UK is investing less than France and less than Germany, and once the Inflation Reduction Act kicks in, we will be investing less than the USA. Is that not a clear admission that we are falling behind? Finally, can the Minister confirm from the Dispatch Box that as I said, the Government’s 2030 target announced at COP26 will not be met by these policies, and can he tell us how the UK can possibly claim the mantle of delivering on climate leadership when it is way off track to deliver the promise it made at the COP we hosted?
At the same time, the Government pursue their “every last drop” strategy on oil and gas. Let me tell the House what that means: it means funnelling £11.4 billion to the oil and gas companies making record profits, and ignoring what 700 leading scientists told the Government yesterday, which is that new exploration will not cut bills, will not deliver energy security and will severely undermine UK climate leadership. [ Interruption. ] I think the hon. Member for South Suffolk (James Cartlidge) should listen to the scientists.
In response to what the right hon. Gentleman said at the end of his words, three quarters of the power of this country today comes from fossil fuels, and we are the most decarbonised country in the G7. The right hon. Gentleman, the Labour party and the Scottish National party do not have a plan to stop using fossil fuels. What they have a plan for—this is unbelievable—is to make sure that we do not produce our own, that we import energy from abroad at the cost of billions and billions, that we make ourselves less energy secure, that we lose the 120,000 jobs, most of which are in Scotland, in the oil and gas industry and that we lose their capability to help deliver the hydrogen and carbon capture and storage industries upon which our decarbonisation path depends. The Labour party failed when it was in power. Its analysis of what it needs to do now is failing, too, and the British people will not be fooled.
May I thank the Minister for his kind words about the net zero review, and indeed the Government’s full response so soon after the review was submitted? I hope that the UK’s net zero pathway is now in a better place as a result of the recommendations. I should say that they are not my recommendations, but those of all the sectors I went to speak to and thousands of individuals, businesses and companies that want to get on with delivering decarbonisation, because they see the economic opportunity for the UK.
Does the Minister agree that we now need to slay this myth that somehow net zero will make us colder and poorer? Net zero will make us warmer and richer, and it is the economic opportunity of the decade, if not this century, to create a new economy, just as other countries such as the United States have recognised. Will he also accept that rather than talk down what the US has done, we need to work with our allies and democratic partners in creating a new special relationship around green energy?
Lastly, just to reflect on the comments made by the right hon. Member for Doncaster North (Edward Miliband), net zero is not just about 2050. We cannot keep kicking the can down the road. We do not have 28 years; we have seven years to deliver on the most ambitious nationally determined contribution of a 68% emissions reduction. If the UK achieves that, it is an economic prize that every single country across the world will look to us on how to achieve, and it will deliver further growth. There are economic consequences to not meeting that 2030 target, just as there will be severe economic consequences to not delivering net zero. I hope the Minister will urge both this party and any other climate delayers, who become the new deniers, that ultimately net zero is the future for the UK.
I thank my right hon. Friend and again pay tribute to him for all his work. This is the economic opportunity. If we look at a map of Europe, we can see the opportunity around the British Isles, and we will capture that energy. We are also blessed with around a third of all carbon storage in Europe. We can operationalise that to decarbonise the UK and provide a service to Europe, and we will do so. It will lead to the reindustrialisation of the north-west, north-east, Wales and Scotland. The opportunities are immense, and colleagues have been fighting hard.
On the NDC, we have set that ambitious world-leading 2030 target, and we are committed to delivering our commitments, including the 2030 NDC. [ Interruption. ] The right hon. Member for Doncaster North is a little out of touch. Countries are not due to start reporting to the United Nations framework convention on climate change on progress towards meeting NDCs until 2024, but we have quantified proposals and policies already to cover 92%, and we will go further. Just as we have done with our carbon budgets, we will exceed, not fall short. It was the Labour party that fell short on insulation and renewables; this party has a record of delivery, and our policies are supplemented by others that we have not quantified yet as we work hard to roll out these things. We will meet that 2030 target. We will continue our leadership role as arguably the only major economy in the world that is on that net zero pathway to 2050.
On CCS, Acorn was not even mentioned in the statement. It was promised to us in 2014, and now it is not even mentioned. Is there going to be a definitive funding allocation for Acorn and are there going to be timescales for that funding, or is it a further betrayal when the Government are taking in £60-odd billion in additional oil and gas revenues? The reality is clear: Scotland has the energy, but Westminster keeps the powers.
Mr Deputy Speaker, thank you for calling me. Could I start by saying that I welcome the announcements that have been made? I think this does move us forward on the road to decarbonising our economy. I want to thank the Minister and particularly his officials for all of the work that has gone into this and the thousands of pages that have now been published. He made a really important point when he talked about how
There is much to be welcomed in the Minister’s statement, but excluding Drax from the track 1 CCS projects will come as a surprise to many and a blow to the company’s employees in my constituency and the wider region. I do not think there are any projects in the Humber region that have got through on track 1. The management at Drax will now have to urgently consider what to do with their UK operations, especially when we consider the challenging economics of biomass operations post March 2027. Could the Minister clear something up for me? The Yorkshire Post reported last August that the Prime Minister backed Drax’s BECCS—bioenergy with carbon capture and storage—plans. Can my right hon. Friend confirm that The Yorkshire Post reporting was accurate, and if so, why has the Government’s position now changed?
I thank my right hon. Friend for his question, and for being such an active campaigner for Drax and probably the foremost champion of power BECCS in this place. He is absolutely right that power BECCS and Drax are critically important to this country and the future of our net zero strategy. There are no power BECCS projects going ahead in the first phase of the track 1 process due to infrastructure constraints. We remain committed to our ambitious CCUS targets, which include 5 million tonnes of greenhouse gas removals by 2030, and power BECCS has a key role to play in that. That is why we have put so much emphasis on track 1 expansion and track 2, both of which will get further CCUS projects operationalised by 2030. To respond to the specific point my right hon. Friend made, the Department totally understands that we need to work with Drax on a bridging option between 2027 and 2030, and the Secretary of State has charged our officials with working with Drax on what those options look like.
Just a week ago, the UN Secretary-General said we needed a “quantum leap” when it comes to climate action. This Government have laboured and, frankly, brought forth a mouse. There is no new funding, no street-by-street home insulation plan, no mandatory rooftop solar and no unblocking of onshore wind. Instead, Ministers are gambling with technologies that are slow and costly at best, and unproven at worst. While some CCS might have a role for carbon-intensive industry, will the Minister accept that—given its very high cost, high life-cycle emissions and appalling record of delivery, and since it cannot achieve energy security because fossil fuels will simply be sold on global markets at global prices—CCS cannot be used as an excuse for licensing new oil and gas in the middle of a climate emergency?
I thank the hon. Lady for her question. [ Interruption. ] I think I was disappearing like a mouse underneath the Dispatch Box there. We of course made major announcements in the Budget. What today is all about is giving the detail of how we are going to unlock that. She raises the question of carbon capture and storage. There is not a way for us to get to net zero without using carbon capture and storage. I remember that it was said by the Labour Government in 2003, if I recall correctly, that it was urgent. Here we are, 20 years later, but I am delighted to say— [ Interruption. ] I am delighted to say that, having had to come into government with nobody insulated and practically no renewables, and a note on a piece of paper saying there was no money left, we are coming forward with proposals to put that right.
I had the great pleasure of opening the Siemens wind turbine blade factory in Hull, very close to my right hon. Friend’s constituency, which is living proof that net zero, low-cost energy, energy security and jobs and prosperity can go hand in hand. Does my right hon. Friend recognise the export opportunities for the next generation of offshore wind—floating offshore wind—working with countries including Japan? On nuclear, will he consider accelerating the national planning statement so that developers of small modular reactors do not have to wait until 2025 to plan deployment? And on hydrogen, will the road map include a target date for phasing out polluting grey hydrogen, as recommended in a recent Science and Technology Committee report?
Who will pay for CCS as it does not generate any direct revenue from retail customers?
To decarbonise industry, we will need CCS and hydrogen. We are socialising the funding requirements across the piece to ensure that we deliver what is necessary to meet our carbon targets, at the lowest possible cost to consumers. This year we are also consulting on measures to prevent carbon leakage, ensure that we do not drive UK industry abroad, which I know my right hon. Friend is concerned about, and instead maintain our competitiveness as we move towards net zero.
I thank my right hon. Friend for his statement and strongly welcome the Government’s commitment to a new generation of nuclear power stations, which are going to play an essential part in delivering both energy security and net zero. Can he confirm that, while a new Chinese-designed reactor may no longer be in prospect, Bradwell-on-Sea in my constituency remains a designated site for new nuclear investment?
The Minister talks up energy security but fails to prioritise onshore wind, the best value renewable energy. By when will the Government remove the ban on onshore wind?
No policy decision has been made in this area. We have consulted and gone out and found ideas about the best way of doing this. My right hon. Friend is right to identify that any system needs to take account of the particularities of certain property types, and we will ensure we do that so that we both align with net zero and align with the reality of existing properties.
I am pleased the statement mentioned the importance of energy efficiency schemes, both for their contribution to our net zero ambitions and the help they can offer households. The New Economics Foundation estimates that had all homes across England and Wales been upgraded to EPC rating C over the past decade, energy bills would on average have been £530 cheaper per household. I take it that the £1 billion allocated for the great British insulation scheme is in addition to the £6 billion committed at the autumn statement for expenditure post-2025. Is the Minister considering ways of bringing forward some of this spending so that even greater progress can be made?
My hon. Friend will understand that I cannot make policy commitments to Wylfa on the hoof. What I can tell her is that it has already been assessed as one of the best nuclear sites in the UK and that if the energy focus, determination and sheer drive of the Member of Parliament has anything to do with it, Wylfa has a very positive and strong nuclear future ahead of it. I look forward to working with her. I am sure that if he has not visited already, the new Minister for Nuclear and Networks—the first time this country has ever had a Minister with “nuclear” in their title—the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), will visit her in her constituency.
The way to deliver energy security, tackle the climate crisis and lower bills as quickly as possible is through renewables, yet the Government are hooked on ever more oil and gas production, and on handing massive subsidies to polluting companies. Over 700 scientists have written to the Prime Minister to ask him to grant no new oil and gas licences, a call backed by the United Nations Secretary-General. Is it not time that the Minister used his powers to prevent the development of the Rosebank oilfield?
We are accelerating renewables as quickly as we possibly can. As I say, we have transformed the dire situation we inherited and we are moving as fast as we can on that, but we are going to need, and be dependent on, oil and gas for decades to come. Under net zero, we will still be using a quarter of the gas we use today. The hon. Gentleman is saying to his constituents, “Let’s pay billions to foreign, sometimes hostile, states, rather than producing our own.” That is economic madness. The gas we bring in on tankers has two and a half times the emissions of our domestically produced gas. On what planet would any rational and reasonable constituency MP want to propose that, unless they had some strange affinity with somewhere like Russia?
I thank my right hon. Friend who, like my hon. Friend the Member for Ynys Môn (Virginia Crosbie), is relentless in promoting and pursuing these interests. He can see that moving towards net zero and capitalising on the huge natural assets around Wales, can contribute to jobs, prosperity and industrial renaissance, as well as help us to deliver the transition. I would be delighted to visit him. In answer to his earlier question, we want to do that as soon as possible. We announced the opening of it today. We want to move forward. We have to accelerate everything we can do right across the piece.
I thank the offshore wind champion Tim Pick for all his work, as well as Nick Winser. I also take the opportunity to thank officials in the new Department for Energy Security and Net Zero, who have put a huge amount of work into producing all these policies and are working hard to ensure that implementation can follow as fast as possible. Officials in my new Department have absolutely shone and I look forward to taking forward our work with their help.
I welcome my right hon. Friend’s statement. This strategy rightly focuses on security of energy, its cost and decarbonisation. I would be grateful if he could confirm that the Government will also concentrate on the enormous opportunity to create jobs, and that they will come forward quickly with both a skills strategy and a plan for investment in infrastructure, which should include both the grid and ports such as Lowestoft?
Full debate: Powering Up Britain
Let us talk about the third part of the Budget, because it does not just have the wrong priorities for now, but for the future too. I want to come on to the energy transformation that the country needs. If we want to get energy bills down, there is a simple answer: going all in on a green energy sprint. We know that wind and solar are many times cheaper than fossil fuels, but the problem is that we have a Government who do not get it. The Levelling Up Secretary is a case in point. When he should be blocking coalmines he waves them through, as he has done in Cumbria. By the way, it will interest the House to know that he said it is carbon neutral, good for the climate and good for the environment. People may wonder. We have been going around the world lecturing people about getting off coal, so how have we suddenly got a coalmine that is good for the environment? Well, the answer is that in the calculations he made, he does not count the burning of the coal, just the mining of it. That is like saying tobacco does not damage your health if you do not take into account the smoking of it. He can correct me if I am wrong, but that is correct, isn’t it? Yes, it is correct.
Full debate: Budget Resolutions and Economic Situation
The right hon. Gentleman mentioned the windfall tax and loopholes. We are investing in our energy security. While we are importers of oil and gas, as we will be under net zero all the way to 2050, the absurd position set out by the Leader of the Opposition is that Labour will oppose any new oil and gas licences, meaning that we pay billions to other countries to import it. There is no magic bullet to stop us using fossil fuels immediately. This Government have accelerated the move to renewables as fast as possible and will continue to do so, but it is absurd to have a policy under which we pay billions to countries abroad to produce oil and gas that we could produce at home to ever higher carbon standards.
I thank the hon. Gentleman for his question. The cost of energy has gone up, and despite extraordinary interventions by the Government, families are none the less finding it harder as a function of the Ukraine war and of global energy prices. That is why this Government have gone so fast in moving ourselves to cheaper renewable energy and away from the—what was it?—just 7% of energy that came from renewables when the right hon. Member for Doncaster North left office. Now that figure is well over 40%. We are going to move to a cleaner, greener and cheaper system that will be better for consumers in Wales.
Full debate: Prepayment Meters: Ofgem Decision
I thank the Secretary of State for his statement, and can I take the opportunity to welcome him to his new role? We support new nuclear, and I welcome the announcement on Sizewell. The Climate Change Committee tells us that nuclear should play a role as part of the balanced pathway to net zero. In his reply, could he tell us the timetable for Sizewell’s final investment decision and when we expect it to be up and running? I also welcome the return of the delayed Energy Bill, which should never have been paused by the Government.
We have seen five Energy Secretaries since 2019. To overcome the bills crisis we face and to tackle the climate crisis, we need ambition, consistency and going all in on the green energy sprint. I am afraid we have not had these things from this Government. All we have had is inconsistency, dithering and a Government looking over their shoulder at their own Back Benchers. The Secretary of State has a lot of work to do to convince the country that that is going to change, and if he does not, it means that this Government will land us with higher bills and more energy insecurity, and will fail to take the leadership we need in tackling the climate crisis.
Since the right hon. Gentleman has mentioned onshore, I just want to note that the energy White Paper and the net zero strategy have both said exactly the same as we have been saying this week, which is that onshore can happen where it has local consent. I do not know why this local consent principle is so difficult for him to understand. There it is: we are delivering on the renewables, on the nuclear, on the energy independence and sovereignty that this country needs, and there is nothing from the Labour party.
On wider energy policy, the Scottish carbon capture and storage cluster was the most advanced project, but it was still only classed as a reserve. Will the Government urgently review this classification, and make the Scottish CCS cluster a track 1 cluster to allow that investment to be released and for that project to go ahead? Pump storage hydro, as I have raised several times, could deliver about 3 GW of power by 2030. All that is needed is an electricity pricing mechanism—a cap and floor mechanism—so will the Government urgently review that and start these discussions?
I welcome the Secretary of State to his place. Renewable energy is nine times cheaper than gas, and onshore wind is incredibly cheap and incredibly green, so we need to be clear: the Tory ban on onshore wind has kept bills unnecessarily high, and has also undermined energy security. Is it not time that the ban was fully scrapped and the interests of people struggling with their bills were put ahead of the political interests of nimby Tory Back Benchers?
Land-based wind is a good, quick and relatively cheap way for the Government to achieve more on alternative energy and security of supply. Does my right hon. Friend therefore agree that the current partial ban on onshore wind is stifling growth, our march towards net zero, and our quest for security of supply?
The role that community renewable energy production could play is currently hampered by an unwieldy regulatory process. Will the Secretary of State bring forward amendments to the Energy Bill to empower community energy schemes to sell their power directly to local companies and customers, thereby also neatly slashing bills?
The Secretary of State will be aware of analysis from the Climate Change Committee that states that we will not get to net zero in this country without carbon capture and storage. I therefore welcome his commitment to helping to liberate private investment in carbon capture and storage and other technologies. The Scottish cluster alone is poised to have billions of dollars-worth of investment. While he is pondering the acceleration of that project, will he consider joining me on a visit to the St Fergus gas terminal in my constituency? It has not only carbon capture and storage, but blue hydrogen, sustainable aviation fuel and net zero thermal power generation, and grid capacity and resilience improvements are being made in and around it.
Full debate: Energy Security
I pay tribute to the work of the COP26 President, and I am sorry he has been removed from the Government. Let me take this first opportunity at the Dispatch Box to congratulate the Minister on bringing down the last Government in the vote on fracking.
Full debate: Oral Answers to Questions
It is a mad world when the new Government make the right hon. Member for North East Somerset (Mr Rees-Mogg) look like an eco-warrior, and he was in favour of lifting the ban. This is just one example of their failure. We are way off track from meeting our climate targets, the net zero strategy was ruled unlawful, the PM sacks the COP President and all this when the UN is telling us we are heading for 2.8 °C of global warming. Is not the truth that this year began with a Prime Minister who made grand promises that have not been fulfilled, and it ends with one who has to be dragged kicking and screaming even to turn up?
Full debate: Oral Answers to Questions
I am going to end my remarks, because other Members want to speak, by appealing to the Minister—I know her from another life when she was the Parliamentary Private Secretary to the COP26 President, which she did very well and we had a good relationship—that courtesy and commitment demand that we get around the table with the South Yorkshire Mayor and with Members of Parliament to leave no stone unturned. Maybe we will not succeed, but let us try to work together on this. Time is incredibly short, and we owe it to all the workers and to the community to fight all the way until our options have run out. Responsibility lies with Peel, and I appeal to Peel to do the right thing, but I also appeal to the Government to get around the table with us and see whether there is a way forward.
Full debate: Doncaster Sheffield Airport
Now let me go through the substantive arguments against fracking. There are four key questions for the House and the country. Will fracking make a difference to the price of energy? The answer is no. Is there categorical evidence that it is safe? The answer is no. Is it consistent with any remotely serious response to the climate crisis? The answer is no. Crucially, do people want it? The answer is no.
The Climate Change Committee says the same. Even the founder of Cuadrilla, Chris Cornelius, says:
The hon. Lady makes her point well and anticipates the issues that I will come on to. Fracking will not make a difference to bills, we cannot be assured of its safety, and it is a disastrous response to the climate crisis.
The decision on fracking is potentially environmentally damaging, with emissions from fracking up to 50% higher than those from conventional gas. If every country follows the lead that the Business Secretary suggests by extracting every last drop of their fossil fuel reserves, global temperatures will rise by more than 3° C, which will spell catastrophe for our children and grandchildren. That should be patently obvious to anyone, not least the person in charge of fighting the climate crisis.
Full debate: Ban on Fracking for Shale Gas Bill
“I can assure Guardian readers that I am not a ‘green energy sceptic’.”
Let him prove it. He is for fracking, which will not lower bills and is dangerous. His colleague, the Secretary of State for Environment, Food and Rural Affairs, is seeking to block solar energy worth 34 GW—the equivalent of 10 nuclear power stations. That is not some whim of the DEFRA Secretary, but an instruction from the Prime Minister, who said that she does not like the look of solar panels. If the Business Secretary wants to convince people that he understands the stakes and what is necessary to get out of this crisis, he needs to make a proper sprint for green energy.
Full debate: Energy Prices Bill
Lifting the cap on bankers’ bonuses while making it harder for working people to access benefits, and now lifting safety limits on seismic events, or earthquakes to you and me, while protecting and subsidising oil companies’ excessive profits and accelerating climate change— does not this decision really show whose side this Tory Government are on?
Will the Secretary of State explain exactly how the UK Government deciding to get rid of the fracking ban aligns with their COP26 commitments?
The subsidies that are paid, when they are paid, have to be reasonable and proportionate and we are finding that, with some of the old contracts that we have based on the gas price for renewable energy, it has led to very high prices. North East Somerset was the site of the old Somerset coalfields, which were a very successful part of the economy historically. I think everyone in this country will have to do their bit to help with energy security.
My constituents will be extremely alarmed to hear the Minister’s remarks about the exploitation of dangerous fossil fuels. They have made it abundantly clear to me that they care about the environment, they care about the next generation, and they take climate change seriously, so I ask him, on behalf of my constituents: will he think again and ban fracking?
People in Glasgow North do not want to see fracking anywhere on these islands, so ending what was in effect a UK-wide moratorium on fracking does not exactly speak to strengthening the Union. My constituents would like to know whether the Business Secretary actually believes that we face an anthropogenic climate emergency and, if so, how on earth a rush to fracking-sourced fossil fuels helps to meet the climate and emission reduction targets we have committed to.
Full debate: Shale Gas Extraction
Thirdly, I want to say something about her sense of humour. I go back to a time in 2008, when I had recently been appointed as Secretary of State for Climate Change and I went to my first ever Privy Council meeting. Her Majesty was reading out laws that were being passed. As she did so, she paused for a moment, because she was having trouble reading, and she said, “Yes, it’s these new long-life lightbulbs that we have introduced.” She fixed me with a beady gaze and a twinkle in her eye, and I smiled. That was the sense of humour that she showed.
Her Majesty was an extraordinary monarch, but I also want to say a word about King Charles III. Again, I speak on behalf of my constituents. He has been an extraordinary warrior on the issue of the environment, long before it was fashionable. When I was Climate Change Secretary, I always thought of him as an extraordinary national asset on the issue, and he remains so. But he is not just a fighter for big causes; he is also someone—he has inherited this from his mother—of extraordinary kindness, generosity and compassion. We see it in his work to heal social divisions in our country, but I have also seen it in my constituency, which was hit by floods in 2007 and 2019. On both occasions, including on the first, when part of my constituency was still under water, he came to see my constituents, to talk to them and to be with them—including, on the second occasion, just before Christmas—because he knew that his presence, at that time of anguish, grief and anxiety, would make an enormous difference to my constituents, and indeed it did.
Full debate: Tributes to Her Late Majesty The Queen
“if you want to deal with climate change and you want to deal with the cost of living crisis and oil and gas prices, you have to do the same things. Renewable energy and energy efficiency, they are the answers.”
This is where I come to the Business Secretary, whom I congratulate. He and I have known each other a long time and we have had a good personal relationship—perhaps we can form an unlikely alliance on the issues that we face. I want to make a serious point to him about some of what he has said in the past, because it relates to these issues. He has said a number of things about climate. I have been part of the work done on building a cross-party consensus on climate for getting on for 20 years in this House, and we have to look at some of what he has said about climate. He has questioned the modelling and whether there is anything we can do about the climate crisis. In 2017, he said:
He went on to say that the cost of climate action is “probably unaffordable”. I quote those words because this is flirtation with climate denial. Never in the past 20 years have we heard these words from someone in charge of tackling the climate crisis, and we should not normalise it. The bipartisan consensus on climate change has been hard won. We have worked across parties over two decades to secure it and there is a heavy responsibility on the Business Secretary to be part of maintaining that consensus, not destroying it.
The problem for the Business Secretary, and the reason he faces that challenge, is that this problem is not just about the climate crisis, because not taking action on green energy is a recipe for higher bills. The ban on onshore wind is driving bills higher and gas imports higher, and it is terrible for the climate. The blocking of solar, which the Prime Minister supports, is driving bills higher and gas imports higher, and it is terrible for the climate. The refusal to act on energy efficiency is driving bills higher and gas imports higher, and it is terrible for the climate. There is nothing more anti-business than scaring off investors in renewables with climate denial.
In conclusion, here is the truth about this new Government, only two days in. They have revealed their true colours. We face a social and economic emergency. In such an emergency, what matters is who you stand up for, who shoulders the burden and the choices you make. The Government have chosen to stand up for the oil and gas companies, not the British people, who will pay for this action in the long-term. The Government cannot answer the challenges of energy security. They cannot answer the challenges of energy bills. They cannot answer the challenges of the climate crisis. And they have the wrong priorities for Britain.
Full debate: UK Energy Costs
In the last two days, we have seen that the climate emergency is here and now, with wildfires raging across our country, tracks and runways melting, schools closing and the government under-prepared, and yet some people aspiring to the highest office in the land have suggested that tackling the climate crisis is a luxury that can be delayed—an indulgence, a niche project. Such people would put the safety of our citizens at risk. They are deeply irresponsible and they are economically illiterate. Does the President of COP26 agree that, given the demonstrable threat that we so obviously face, there is no place in serious political parties for such dangerous folly?
Full debate: Oral Answers to Questions
The President of COP26 was so appalled by his own party’s leadership contest that he threatened to resign, and it is no wonder. He says that all the candidates are committed to the net zero agenda, but only this morning the right hon. Member for Richmond (Yorks) (Rishi Sunak), the frontrunner in the leadership race, said that he would double down on the onshore wind ban because of the “distress and disruption” that onshore wind causes.
What is causing distress is the worst cost of living crisis in a generation. What is causing disruption is the most extreme weather in our country’s history. Onshore wind is a vital tool in tackling these crises, but the bizarre state of the Tory party means that the former Chancellor panders to the fanatics and sides with the sceptics. Will the President of COP26 now repudiate that position and condemn it for the dangerous nonsense that it is?
Full debate: Oral Answers to Questions
It has been reported that the COP26 President is in the running to become the executive secretary of climate at the UN. I wish him well, because he would do an excellent job in that post. Part of the reason he won respect at COP26 was for his commitment to phase out fossil fuel subsidies, yet here at home the Chancellor has created a massive loophole in the windfall tax to give away at least £4 billion of public money in new incentives for new oil and gas projects. Can the COP26 President tell us whether he was consulted on that plan? How much does he estimate that it will drive up emissions? Is it not totally at odds with the agreement on fossil fuels that he worked so hard to secure in Glasgow?
Full debate: Oral Answers to Questions
Maybe the COP26 President has one eye on the UN, because that did not sound like a wholehearted endorsement of the Chancellor’s policy, and he is right to think that the Chancellor’s policy does not make any sense. The money will either go to oil and gas projects that would have happened anyway, or incentivise new projects that will make no difference to consumer bills, take years to come to fruition and drive a coach and horses through our climate commitments. What is more, this policy excludes investments in renewables, which are the quickest, cheapest and cleanest form of power. Does that not reveal the truth that on climate, he says one thing on the world stage and the rest of the Government do another here at home? Is it not totally understandable that he wants to jump off the sinking ship?
Full debate: Oral Answers to Questions
The right hon. Gentleman is making a powerful speech. I wonder whether he shares my anger at the news this week that the Government have underspent their net zero budget by a staggering quarter of a billion pounds, at exactly the same time as our constituents are struggling to keep their homes warm and deal with accelerating fuel poverty.
Full debate: Tackling Short-term and Long-term Cost of Living Increases
The recent climate assessment by the Intergovernmental Panel on Climate Change was deeply worrying, saying that current global policies will lead to warming of more than 3°, but it also offered hope in the dramatic fall in the price of renewables, which means they are now the right choice for cheap energy and to tackle the climate crisis. Given that onshore wind is the cheapest, cleanest, quickest form of power to deliver and is also supported by a large majority of the public in the UK, will the COP26 President explain why the Government persist—including in their recent strategy—with planning policies that in effect block onshore wind in England?
Full debate: Tackling Climate Change
The COP26 President knows that the Prime Minister caved in to those who wanted to block onshore wind—and I think the Minister for Energy knows it too.
Let us try another. To tackle the cost of living crisis and the climate emergency, energy efficiency measures are a no-brainer, but the Chancellor steadfastly refused to offer a penny more for energy efficiency in the recent strategy, meaning higher bills for people and more people in fuel poverty. The COP26 President is responsible for holding Departments to account for net zero; is it not time for him to wield some presidential power, knock heads together and sort this problem out?
Full debate: Tackling Climate Change
I thank the Secretary of State for his statement, but I have to tell him that after all the hype and all the promises, his energy relaunch fails to live up remotely to the scale of the crisis that families are facing. The Government have already failed to deliver the immediate measures needed to help millions of families with their energy bills this year, and they now have an energy security strategy that has rejected the measures that could have made the most difference in the years ahead. It fails to seize the moment on the two most elementary tests of any decent green energy sprint—that is, going all-in on the cheapest forms of home-grown power, such as onshore wind, which remarkably, was not even mentioned in his statement, and finally delivering on the biggest no-brainer when it comes to an energy strategy: energy efficiency.
Why? Because the Secretary of State and the Prime Minister caved in to Back Benchers who dislike green energy and a Chancellor who refuses to make the green investments that the country needs. They cannot deliver a green energy sprint because they face both ways on green energy and simply will not make the public investment that we need.
Of course, the North sea has a role to play in the transition, but will the Secretary of State explain how maximising North sea oil and gas is consistent with all the advice from the International Energy Agency and the Intergovernmental Panel on Climate Change on limiting global warming to 1.5°?
In conclusion, the truth is that this cobbled-together energy relaunch does nothing on the cost of living and fails to deliver the green sprint that we needed. When it comes to the solutions to energy security, energy bills and the climate crisis, the Secretary of State has shown once again that the Government cannot deliver what the national interest demands.
I am very grateful to the hon. Gentleman for his barrage of questions; I will try to answer a few of them. His position on nuclear and mine could not be more different, and I am very glad that he is honest and frank about nuclear. I still do not understand what his answer is on decarbonised baseload, in terms of security of supply, but I am grateful for his honesty. He will know that the transmission charges are a matter for Ofgem, and I would be very happy to speak to him and Ofgem about how we can move forward on that.
My right hon. Friend is aware that the Back-Bench committee on business, energy and industrial strategy has done a very swift and urgent inquiry into how businesses and households can reduce their energy bills this winter. Will he and the Minister for Energy, Clean Growth and Climate Change meet me and my vice-chairs to discuss some of the very sensible and practical measures in the inquiry?
Absolutely. I always want to take the opportunity to commend the great work that my right hon. Friend did when she headed the Department, when I was Energy Minister. We are really continuing in that vein. The Minister for Energy, Clean Growth and Climate Change and I will be delighted to meet her and her committee to discuss ideas that will give us security, affordability and sustainability.
I engage with Front-Bench and Back-Bench colleagues all the time and they have lots of brilliant ideas. I do not recognise the hon. Lady’s characterisation of the strategy; I think it does deliver on security, it does deliver on longer-term affordability and it does deliver on the sustainable net zero targets that many in this House agree with.
One of the hurdles that families face when they look at putting in a heat pump or investing in home insulation is that they cannot afford the up-front costs to get the long-term gains. The enterprise investment scheme has been extremely successful in encouraging investment in entrepreneurship, which has a somewhat similar cash-flow profile, so will my right hon. Friend have a word with the Chancellor about whether we can implement a net zero enterprise investment scheme to marshal private capital to help with the social objective of achieving net zero?
We have a number of such schemes in existence and have trialled a number of others. We are always iterating the way in which we attract private capital to meet net zero; that is what we have been doing for the past three years, since net zero was passed into legislation.
May I build on the excellent question from my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes), with which I agree? The Secretary of State has included in his medium and long-term strategy the ambition to raise solar power from 14 GW to 70 GW, which would obviously make an enormous contribution to renewable energy generation. Will he follow up the excellent work that he undertook with the Treasury to remove VAT on solar panel installation and also press for VAT to be removed from electricity storage for battery walls and similar products in domestic homes?
I think it was Keith Anderson who spoke to the Committee this morning. I speak to Keith and others in the sector all the time, as does the Minister for Energy, Clean Growth and Climate Change, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands). We will definitely look into this issue, because it seems disproportionate and unfair that people with prepayment meters should be paying so much more than those with direct debits, and we shall be happy to take it up with the leaders in the sector.
My hon. Friend the shadow Secretary of State visited Bristol recently to look at the ambitious projects that are going on there, including new water source heat pumps and the City Leap partnership. Is the Secretary of State aware of what is going on in Bristol, and what can he do to help cities to decarbonise?
In 2019—it was during the general election campaign, but I am sure that was just a coincidence—the Government said that fracking in Lancashire would be off the table, that there would be a moratorium and that the wells would be filled with concrete. May I ask the Secretary of State what has changed between 2019 and today that has put fracking back on the table? What on earth did he get from COP26?
I should be very happy to go with my hon. Friend to see the nuclear reactors. The future is decarbonised baseload power. That is what we need, and it is something with which my hon. Friend and I are 100% aligned.
One of the greatest constraints on decarbonisation is the skill supply. Will the Secretary of State publish a workforce plan for the energy sector, so we can ensure that we are making the necessary investment in the skills that we need, both now and in the future?
Full debate: Energy Security Strategy
On this question, I have to confess that the hon. Lady and I have completely different views. We are diametrically opposed. I agree with her on the net zero commitment, but this idea that we can simply switch the lights off, so to speak, on oil and gas is absurd. [ Interruption. ] It is completely absurd and we need to have investment in the North sea.
“Transition” is the key word, as the Minister has just said. We need to pivot very quickly towards renewable energy, but this is a sharp reduction in oil and gas imports, as 8% come from Russia. We welcome that measure, but insofar as that will lead to a net reduction in the availability of oil and gas, it will also lead to a net reduction in emissions, which will not be maintained. We will need to supplement that demand in the short term. What discussions does he plan to have with the Scottish Government to ensure that we can meet that need with the maximum economic benefit to oil and gas services companies?
I thank my right hon. Friend for his statement and for the work done by Conservative Governments to increase our renewable energy capacity by 500%. As we move towards the new normal of a greener and more secure energy supply, will he commit to increase the capacity coming out of the Celtic sea and accelerate the roll-out of floating offshore wind and the target that it can deliver on?
The Secretary of State knows that I am a strong supporter of his policy to end reliance on Russian oil and of the need to intensify our investment in renewable energy. There are many rural communities in constituencies such as my own and, I suspect, across the country that rely on heating oil. What plans does he feel his oil taskforce will make for securing the availability of heating oil, ensuring the price of heating oil does not rise out of ordinary people’s reach and intensifying energy efficiency for homes, particularly for the older buildings that we find in many rural communities in areas such as my own?
The Secretary of State will know that his Department refused support for the Swansea bay tidal lagoon, but the new Blue Eden lagoon project is nevertheless going ahead. Instead of looking again at fracking, which generates 5% of fugitive emissions—that makes it worse than coal for climate change—will he look at supporting the Welsh Government and Wales overall in marine technologies and renewable technologies, alongside looking at organic batteries at scale, which can store such renewables without causing pollution?
I welcome my right hon. Friend’s statement about a ban on Russian oil imports. Does he agree that the increasing need for self-reliance on energy sources means that it is right that we invest in renewable energy schemes in this country, including the possibility of a large tidal range facility in north Wales?
I hear the clamour for a tidal range facility in the Vale of Clwyd, and I am sympathetic towards it. My hon. Friend will, I am sure, be good enough to acknowledge that for the first time ever in the fourth auction round we have a tidal stream auction pot. We are committed to doing all we can to further the development of marine renewable energy.
Full debate: Russian Oil Import Ban
An essential part of becoming less dependent on fossil fuels is reducing our demand for gas by making more progress on energy efficiency. On its own, insulating the 18 million draughty homes in our country would cut our imports of gas by 15%—double the amount we import from Russia. In his role holding Departments to account on net zero, will the COP26 President now persuade Treasury and other colleagues that it is time to finally get serious and invest at scale in the national programme to upgrade Britain’s homes, which Labour has long called for?
Full debate: Oral Answers to Questions
Fourthly, these events raise longer-term issues. Scientists tell us that we cannot necessarily attribute the ferocity of Storm Eunice to climate change, but we know that we face more intense and frequent extreme weather as a result of the climate crisis, so again it throws up the question of our resilience and security as a country.
After the storms in 2013, there was a clear sense of the vulnerabilities of the overhead power network and agreement that the energy networks would act. In its interim report on Storm Arwen this month, Ofgem said again that it will review the costs and benefits of the resilience of overhead lines, and the Climate Change Committee has highlighted climate risks to the power system. Does the Secretary of State agree that events this winter demonstrate the need to give greater priority to and, indeed, investment in the resilience of our power network?
More generally, the Climate Change Committee said in its five-year progress report last summer that adaptation is
Climate change has seen an increased frequency of storms, with Storm Franklin currently giving rise to flood warnings in parts of Scotland, England, Wales and Northern Ireland. Will the Secretary of State confirm that he will do all he can to ensure that his Government keep their climate pledges and the large spending commitments that go with them? Will he ignore his Back Benchers who seem to be obsessed with the UK reneging on its agreements? Following COP26, what are we doing to discuss future international responses to worldwide extreme weather?
The hon. Gentleman raises a number of fair points. On the net zero challenge, he will be pleased to know that the Chancellor’s latest comprehensive spending review at the end of last year had a considerable uplift in the capital spend dedicated to net zero. He will also appreciate that, for the first time ever, we had a ringfence for tidal stream. The Government are doing lots of things to pursue renewables and to decarbonise our power system.
I am pleased to tell my hon. Friend that we have engaged very actively with UKPN; I spoke to the chief executive officer only this morning, and I understand that the Minister for Energy, Clean Growth and Climate Change, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), was very near my hon. Friend’s constituency, if not in it, earlier this morning. This issue is something we are very focused on; we want to engage with her to build up local resilience and, crucially, to work with the distributors of power.
May I add my condolences about the people who died during these storms? Yesterday, hundreds of people in the north-west were forced to flee their homes as rivers burst their banks, and thousands more households remain without heating or electricity. Although Storms Eunice and Franklin may not be directly linked to global heating, there is absolutely no doubt that the impact of these kinds of extreme weather events will become all the more destructive as the climate crisis intensifies. Yet Tory Back Benchers are still plotting to deal a hammer blow to hard-won progress on climate, lining up the net zero agenda as the latest target in their never-ending culture war. Does the Secretary of State agree that recent days have demonstrated the importance of not only investing more in climate resilience measures, but going further and faster in decarbonising our economy?
The hon. Gentleman will know that I have nothing but good will to all my colleagues on the Government Benches, and we have a healthy debate about many matters of public policy. He will also know that we are 100% committed to the net zero strategy, which I was told by someone who is not even a resident of the UK was a world-beating document. I have announced that we have increased our financial commitment to net zero more than any other Government, and we want to work with everyone across the House to fight the challenge of climate change.
I am very saddened to hear about the fate of my hon. Friend’s all too young constituent. These tragic events remind us of the real human cost of climate change and extreme weather eventualities. I remember that in my own constituency eight years ago, in 2014, a little eight-year-old boy, Zane Gbangbola, died. This is really the first time I have been able to pay tribute to him. I fully understand the pain and anguish that Jack’s family are having to live with.
The hon. Gentleman will know that Northern Ireland gets its fair share of support through the Barnett formula. On the specifics of climate change and erosion, I would be happy to meet him with DEFRA colleagues. I visited Northern Ireland only two months ago to talk about the need for more resilient energy and to decarbonise and rely more on renewables. Northern Ireland has a great story to tell about our future battle against climate change and I am happy to talk to the hon. Gentleman about it.
Full debate: Storm Eunice
The right hon. Gentleman is setting out the problem, but the trouble is that his solutions do not add up. Does he acknowledge that last year Shell and BP, the two largest oil and gas producers, posted a £26.9 billion and £22.5 billion loss respectively? How much would his windfall tax get from those situations? Does he also acknowledge that the biggest investments in renewable energy—not least hydrogen, into which hundreds of billions are being invested—come from companies such as BP and Shell, which we need to continue investing in alternative non-fossil fuels?
Full debate: Oil and Gas Producers: Windfall Tax
Two months on from the COP, there is a worrying lack of momentum in this pivotal year, and it could get worse if we learn the wrong lessons from the energy crisis. Does the COP President agree that the lesson is not that, as some in his party would say, we are moving too fast on green energy, but the opposite: we are moving too slowly and our dependence on fossil fuels leaves us vulnerable? The only way, therefore, to keep 1.5 alive and provide energy security is to go further and faster on the climate transition.
Full debate: Oral Answers to Questions
Consumers looking at their energy bills will ask, “If it is going so well, why are our bills rocketing and why are we so vulnerable?” We can keep 1.5 alive only if we have an energy policy that is fair at home and abroad. Many of the fossil fuel companies have made billions as a result of soaring prices, yet the Government say we should not tax them further because they are struggling. Is not the truth that we are only ever going to meet the Paris agreement if we stand up to vested interests, including the oil and gas companies, and that the fair and right approach is a windfall tax to help with the real struggles faced by the British people?
Full debate: Oral Answers to Questions
“allowed unfit and unsustainable energy companies to trade with little penalty.”
Let me get to the heart of this debate, and I say this to the anti-net zero tendency in the Conservative party. We can reach two different views. Some Conservative Members say that it is because we have gone too fast on the green transition. I say that they are dead wrong; it is because we have gone too slowly. It is continued dependence on fossil fuels that makes us more vulnerable and less resilient. Let us take energy efficiency. A 2014 study showed that a comprehensive programme of energy efficiency could cut gas imports by a quarter, but what have we seen? We have seen the abolition of the zero carbon home standard, the fiasco of the green deal and the fiasco of the green homes grant. That is why emissions from buildings are now as high today as they were in 2015, and it is not just about energy efficiency. Before this debate, I looked up the number of onshore wind turbines being constructed each year in the past four years—it is because I am a nerd. I will not do a guessing game in the House as I do not have the time. The answer is that just four turbines a year were granted planning permission in the past four years. It makes no sense, because onshore wind is the cheapest power at our disposal—so much for being the Saudi Arabia of wind power; it is just hot air.
Short-term action is essential, but we need long-term action as well. There is a very big difference we could make to families, and that is a national mission to retrofit homes in this country. It is the closest thing there is to a no-brainer with regard to energy policy. We could cut bills by up to £400. We could make ourselves much less dependent on volatile fossil fuels. That is why we put forward a plan for a £6 billion a year retrofit and zero-carbon energy programme to insulate 19 million badly insulated homes. But the Government refuse to act. They offer piecemeal privatised programmes that do not work, and they are still short of their very inadequate manifesto promise on this. We can get a sense of where the Government stand. When they had the fiasco of the green homes grant—I do not blame them for thinking it was not going very well—they did not plough the money saved back into retrofit but simply cut £1.5 billion of investment. We need to go faster on energy efficiency. We need to invest in our ports and grid so that we can meet and exceed 40 GW of offshore wind. We need to end the effective moratorium on onshore wind, embrace tidal power and other forms of renewable energy, drive forward our nuclear programme and invest in clean energy storage.
Full debate: Household Energy Bills: VAT
Faced with the climate crisis, extreme weather events will sadly become all the more common in future. We cannot be this vulnerable in future. There is real concern that some lessons have not been learned, and on this occasion we must face up to those lessons and learn them.
On the situation with regard to the climate change emergency, the right hon. Gentleman and I have very similar views. Clearly Storm Arwen was an event the likes of which we have not seen for, certainly, 16 years, since the records of the DNOs started. We have to be prepared for similarly extreme difficult weather conditions in future and make sure that our system is resilient in that eventuality.
Storm Arwen was an extreme weather event, but we are having more extreme weather events as the climate changes. Already, every winter in this House we have urgent questions and statements on power outages caused by electricity distribution lines coming down, and train disruption caused by electrical lines failing. The long-term fix is to increase the resilience standards of the poles, pylons, wires and connectors on the system. It is not to do with local resilience forums, which are more about responding to crisis; this is about raising the technical standards of the equipment that is deployed. An example is undergrounding electricity lines, which could be as much as 20 to 30 times more expensive than an overhead line, but, especially near more populous areas, that may well be part of the solution. Will the Secretary of State be kind enough to look at the technical standards of the electricity distribution network, because we need to raise those in the face of climate change?
My hon. Friend is absolutely right to raise the infrastructure challenges that we are experiencing in extreme weather conditions, which will probably be more frequent given the climate change to which he alluded. He will appreciate that, essentially, a whole new infrastructure not only takes time, but means paying considerable amounts of money, and in the meantime we have to deal with those extreme weather events, so the local resilience forums are very important. He is quite right to say that they do not solve the infrastructure problem long-term, but it is really important that they can act nimbly, because we can improve our infrastructure standards, but we are not simply going to abolish the threat of extreme weather conditions.
The immense disruption caused by Storm Arwen over the weekend demonstrated how vulnerable much of the country is to extreme weather events. Recently, businesses and residents in my constituency were devastated by extensive flooding following torrential rainfall in the space of just a couple of hours. With climate breakdown set to make such events a more frequent occurrence, can the Secretary of State inform the House what steps his Department will be taking in conjunction with his colleagues at the Department for Environment, Food and Rural Affairs to improve the resilience of communities such as Birkenhead to extreme weather?
The hon. Member raises an important point, and he also alludes to the nature of the problem. BEIS is responsible for electricity and DEFRA has been particularly effective in responding to flooding, and he is quite right to suggest that both our Departments are working together, as we do with other colleagues across Government, and are more and more focused on the effects of climate change—and that is what it is—on our infrastructure and our people. We are working together to try to solve that general problem.
Full debate: Storm Arwen
Let me take two other issues where he can show leadership: the Cumbria coalmine, and the Cambo oilfield, which are the equivalent of 18 coal-fired power stations running for a year. He knows that we need to get others to phase out coal, and that we need to phase out fossil fuels. Surely the right way to send a proper signal to the rest of the world ahead of COP27, is for the whole Government to start practising what he is effectively preaching, and put a stop to Cambo and Cumbria.
Full debate: Oral Answers to Questions
In terms of gas, I am pleased to announce that I and the Minister of State, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), are driving the North sea transition deal. The key to that is transition—about trying to transition to net zero while securing jobs and security of supply from gas in the UK Continental Shelf. These are things of which we are apprised.
The Secretary of State says that the energy cap is here to stay, but what will be the effect on consumers in fuel poverty when the cap invariably goes up by £400 to £600 in April? It is a disgrace. The Government have allocated £1.7 billion of taxpayers’ money to develop Sizewell C to final investment stage. Why not invest that money in energy efficiency and renewable energy and do stuff that actually brings down energy bills, rather than committing consumers to a 10 to 15-year contract for nuclear and six years on top of that? When will they get a grip on energy policy as a whole?
I have been on something of an energy nomadic experience over the last few months. I started with Avro Energy a few months ago, but that went bankrupt and I was converted domestically to Bulb, and I am now in the support scheme within the space of three months. There was a 12% energy price rise at the last round, in August. Who knows what it will be in April next year? The policy of trying to sell ten pences for sixpence does not last very long. What we are going to see over this winter is the Treasury—that is, the taxpayer—making up the difference for these spot prices versus the reality of what energy is being sold for to domestic users. Will my right hon. Friend please see the vision that the only bridging energy supply, of which we have a lot domestically, is gas? We all want net zero sometimes, but it is not going to happen tomorrow; it is going to take a generation to get there. We have a domestic supply that can bring us the two key planks of energy: security of supply and affordability. Domestic users and the industry need that immediately.
The Kettering parliamentary constituency generates enough renewable energy from wind and solar to power all 45,000 local homes, and is one of the greenest constituencies in the whole country. If we are to reduce our exposure to volatile international gas prices, is it not crucial that we do more to diversify our source of supply?
The Government’s headlong rush to net zero is already showing through in people’s fuel bills and levels of fuel poverty in the United Kingdom. Despite what the Secretary of State has said about licences to help through the transition period, we will still be reliant for 50% of our gas on outside sources, which does not give us energy security. At the same time, we have enough gas under the ground in the UK to keep us totally supplied for the whole country for 150 years, which could help the levelling-up agenda in the north-west of England, and help my constituents who currently find themselves at the end of a very expensive pipeline and are very vulnerable. Why are the Government not prepared to exploit the resources that we have to deal with fuel poverty and fuel security and to help the levelling-up agenda in poorer parts of England?
I do not apologise for the net zero agenda. We saw big strides at COP26. We could have gone further. That is an area in which we are showing leadership and that is something we should be proud of. On, as the right hon. Gentleman put it, exploiting gas resources, we looked at fracking. There were issues with regard to the Richter scale, earthquakes and that sort of thing. People objected to that and we imposed a moratorium. But I am very happy to discuss this issue with him if he wishes.
Full debate: Bulb Energy: Administration
I join the Secretary of State in commending the COP26 President on the progress made at COP26, but we know much greater action is required, and it is the Secretary of State’s job to ensure that every part of our Government acts. There is an immediate test with the UK-Australia trade deal: yesterday, the Australian Government reaffirmed their 2030 target, which is consistent only with 4° of warming, and there are reports that our Government have allowed the watering down of temperature targets in that deal. Surely, if we are serious after Glasgow about not letting big emitters off the hook, the deal must be rewritten to enshrine in it a proper plan for Australia as well as the UK, including for 2030, to keep 1.5° alive.
Full debate: Oral Answers to Questions
It is time for the Government not only to talk tough, but to act tough, because we must put pressure on countries such as Australia. There is a clear pattern of behaviour here on climate. Too often, this Government face both ways: the Cumbria coal mine, the Cambo oil field, cutting overseas aid for the most vulnerable countries, cutting air passenger duty for domestic flights and failing to invest in green recovery at home. He is the man supposed to be in charge of ensuring the Government speak with one voice. Why does he think he is failing to do so? Is that the reason why people are calling for the COP26 President to take back control of energy and climate change?
Full debate: Oral Answers to Questions
The hon. Lady is completely right about that. She anticipates my next point brilliantly; it is a useful segue. If we want to understand why growth is so anaemic, she is right that we need look no further than the Chancellor’s failure to seize the opportunities for green growth. This is an important point: the prudent and responsible economic call—I suspect the Business Secretary agrees—for economic growth is to invest at scale in the transition to a zero-carbon economy. Let us be honest, it is now a completely open secret that the problem is that the Chancellor is not a believer, and it showed yesterday. As we prepare to host the most important international summit ever on climate change, as delegates gather from all around the world, and as the eyes are on Britain, what did he unveil as his flagship measure yesterday? To cut air passenger duty for domestic flights. You literally could not make it up. People want good and affordable rail services, but the plan for rail seems to have been postponed again, and instead there will be 400,000 more domestic flights as a result of that decision. Once again, that shows that the Treasury is not signed up to the agenda.
to net zero—
“remain significant and their apportionment between businesses, households, and government…remains largely unclear. This leaves the costs associated with the transition to net zero as a major source of longer-term fiscal risk.”
As I was saying, not acting increases the cost, so the prudent responsible choice is to invest. I will mention some key sectors, because again, there has been a deafening silence. I come back to the steel industry, which is such a litmus test. It needs about £6 billion of investment to get to net zero by 2035. The view is shared on both sides of the House that it needs to get to net zero and that it is a foundational industry that we need and that is incredibly important to communities across the country. There are 20 demonstration projects around Europe but none here at the moment. It requires a partnership of the public and private sectors and needs both sides to invest. There is a crucial role for the Government in that.
My apologies, Madam Deputy Speaker. Does the right hon. Gentleman agree that he would have more credibility on the issue if he had not backed Labour’s 2030 net zero target, which even his own unions did not support? He has no credibility on that point.
On green investment, a philosophical difference is emerging. I worry that the Government will increasingly leave individuals and industries on their own to face the costs. I do not think that is true of the whole of Government, but the Treasury remains a fundamental block to the green investment that we need. There was a whole saga about its net zero review and the fact that it emphasises short-term costs rather than long-term gains. Frankly, that is a big problem for our country.
Labour would deliver a climate investment pledge of £28 billion extra every year for the rest of the decade. That is an investment in bringing down energy bills; delivering affordable public transport and cleaner air; and backing British industries with a real plan for jobs and wages. That is what real action on the climate emergency and industrial strategy looks like.
Full debate: Income Tax (Charge)
We all need the vital COP26 summit in Glasgow to deliver next week, because failing to limit global warming to 1.5° will have devastating consequences for our planet. That goal is shared across the House. Does the Prime Minister agree that, to keep the goal of 1.5° alive, we need to roughly halve global emissions in this decisive decade?
Full debate: Oral Answers to Questions
I applaud the efforts of the UK presidency under the COP26 President-designate, the right hon. Member for Reading West (Alok Sharma). However, I want to direct the Prime Minister’s attention to the issue of this decade. I will come to net zero targets for the middle of the century in a moment, but yesterday he will know that a very important report came out from the United Nations, the United Nations Environment Programme “Emissions Gap” report. On the eve of COP, it warned that far from halving global emissions this decade, we are on course to reduce them by only about 7.5%. Does the Prime Minister acknowledge, because this is crucial for what happens at Glasgow and after Glasgow, how far away we are from the action required in this 10-year period?
Full debate: Oral Answers to Questions
I will just correct the Prime Minister on one point: it was the second half of the century that was set out in Paris, not 2100 for net zero. Here is the problem on the question of net zero targets for the middle of the century: it is easy to make promises for 30 years’ time; it is much more difficult to act now. Australia recently announced a 2050 net zero target, but its 2030 target would head the world towards approximately 4° of global warming. Can I urge him not to shift the goalposts when it comes to Glasgow? It is about the emergency we face this decade. It is about the nationally determined contributions this decade. Please keep the focus on 2030, not 2050 and beyond.
Full debate: Oral Answers to Questions
Let me tell the Prime Minister that what this summit needs is statesmanship, not partisanship, which is what we have just heard from him. He should not be trying to score party political points on such an important issue facing our country and our world. That is never the way I did PMQs. [ Laughter. ] Let me ask him about the crucial issue of climate finance for developing countries. The reason the Paris summit succeeded was that there was a coalition of vulnerable countries and developed countries that put pressure on all the big emitters, including China and India. The problem is that the world has not delivered on the $100 billion of finance promised more than a decade ago in Copenhagen. The plan is to deliver it maybe in 2023. But I want to ask him about his actions. Has it not made it much harder to deliver on that promise that we are the only G7 country to cut the aid budget in the run-up to this crucial summit?
Full debate: Oral Answers to Questions
It is one thing for the Prime Minister not to know what is in the Paris agreement, but another for him not to know what is in his own Budget. He has cut the aid budget; of course he has cut the aid budget. He has abandoned the bipartisan belief in the aid budget across both these Houses, but it is not just on aid where the Government face both ways. They have a trade deal with Australia where they have allowed the Australians to drop their temperature commitments. They are telling others to power past coal while flirting with a new coal mine, and they are saying that we have to move beyond fossil fuels but open the new Cambo oilfield. Is not the truth that the Prime Minister has undermined his own COP presidency by saying one thing and doing another?
Full debate: Oral Answers to Questions
The thing the Prime Minister has underestimated throughout these last two years is the fact that COP26 is not a glorified photo opportunity; it is a fragile and complex negotiation. The problem is that the Prime Minister’s boosterism will not cut carbon emissions in half. Photo opportunities will not cut carbon emissions in half. I say to the Prime Minister that in these final days before COP26, we need more than warm words. Above all, Glasgow has to be a summit of climate delivery, not climate delay.
Full debate: Oral Answers to Questions
With 10 days to go before COP, much is riding on the shoulders of the COP26 President and we wish him well, but to deliver the 1.5° target we have to cut emissions by 28 billion tonnes by 2030—a halving of global emissions. So far, the pledges made for Glasgow amount to 4 billion tonnes at most, so we are not yet where we want to be. Does the COP26 President agree that we need to be honest about the maths? If he does, what is his assessment of how much of the gap we can close at Glasgow to keep 1.5° alive?
Full debate: Oral Answers to Questions
May I suggest to the COP26 President that the rest of the UK Government could make a difference, even in these final days, by not undermining his work? The Secretary of State for International Trade should not be giving big emitters a free pass by doing a deal with Australia that allows them to drop their temperature commitments; the Prime Minister should deliver on the promise made at the G7 to vaccinate the developing world by the end of 2022; and the Treasury should stop undermining the green transition at home and help to build the international coalition that we need by reversing the cut to overseas aid in the Budget. Does the COP26 President agree that acting on those suggestions would help him to deliver on his historic responsibility at the COP?
Full debate: Oral Answers to Questions
Let me start by saying that it is good that tackling the climate crisis is a shared national objective across the House, and that we want the Government to succeed at COP26 in just ten days’ time. However, there are two central questions about the strategy that has been published today: does it finally close the yawning gap between Government promises and delivery, and will it make the public investment which is essential to ensure that the green transition is fair and creates jobs? I am afraid that the answer to both questions, despite what the Minister said, is no. The plan falls short on delivery, and while there is modest short-term investment, there is nothing like the commitment that we believe is required—and we know why. When asked at the weekend about the Treasury’s approach to these issues, a source from the Department for Business, Energy and Industrial Strategy said:
“They are not climate change deniers but they are emphasising the short-term risks, rather than long-term needs”.
According to the Government’s own target, we need 600,000 homes a year to be installing heat pumps by 2028, but the Government are funding just 30,000 a year, helping just one in 250 households on the gas grid. Why does the Minister’s plan on heat pumps fall so far short of what is required? As for transport, we agree with the transition to electric cars—and I support and welcome the zero emissions mandate—but we need to make it fair to consumers. We should at the very least have had long-term zero-interest loans to cut the costs of purchasing electric cars. What is the plan to make them accessible to all, and not just the richest? Will the Minister tell us that in his reply? On nuclear, I was surprised, given the advance publicity, that the word did not even cross the Minister’s lips. We have seen a decade of inaction and delay on this issue, so can he tell us why there is still no decision on new nuclear?
The failure to invest affects not just whether this transition is fair for consumers but workers in existing industries. Take steel: it will cost £6 billion for the steel industry to get to net zero over the next 15 years. If we want a steel industry—as we do across the House—we will need to share the costs with the private sector. However, there is nothing for steel in this document, and a £250 million clean steel fund some way down the road will not cut it. Can he give us his estimates of the needs of the steel industry and how he thinks they can be met?
Finally, it was noticeable that the Minister did not say that the plan would meet the target for the 2035 sixth carbon budget, but surely that is a basic prerequisite of the strategy to 2050. At less than halfway to net zero, do the policies in this document meet the target, or fall short of it? Despite hundreds of pages of plans, strategies and hot air, there is still a chasm between the Government’s rhetoric and the reality? My fear is that the plan will not deliver the fair, prosperous transition that we need and that is equal to the scale of the emergency we face.
I thank the right hon. Gentleman for his warm words of congratulation to the Secretary of State and for his intention to join us in showing real leadership. I agree with him that this should not be a particularly partisan matter. The UK as a whole country expects to see our politicians working together, particularly in the run-up to our hosting the vital COP26. I will deal with his various points in turn.
On power, it is worth pointing out the success that we have had on renewables. The right hon. Gentleman was Secretary of State for Energy and Climate Change up to 2010. When he left office, renewables were only about 10% of our power mix; now the figure is around 43%. Offshore wind costs have come down by two thirds. He mentioned nuclear, but I am just about old enough to remember the 1997 new Labour manifesto, which stated that there would be no new nuclear projects. It took Labour 10 years to do anything at all on nuclear.
On the right hon. Gentleman’s final comment about 2030, our commitment is unchanged, but let us look at his commitment for a moment. [Hon. Members: “It was 2035.”] His leader, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), backed a 2019 manifesto commitment to go to net zero by 2030. Such a commitment would cripple the hard-won economic growth that we have achieved over the past 30 years through our steady approach of growing the economy and reducing emissions at the same time. Even the GMB has said:
The CBI has said that there is no credible plan to achieving net zero by 2030. This Government have the right ambition. This is a transition, and it is full of opportunities for jobs and low and zero carbon growth across the UK. The right hon. Gentleman should be backing it in full in the lead-up to Glasgow.
The Minister keeps going on about nuclear, but the reality is that, at £23 billion, Hinkley is the most expensive power station in the world. Its strike rate is £92.50 per megawatt-hour, compared with offshore wind at less than £40 per megawatt-hour. What is the capital cost in billions of pounds that the Government are willing to commit to, given that it could be better spent elsewhere? What funding is coming to Scotland on the back of the announcement of the social housing decarbonisation fund and the home upgrade grant schemes?
If we look at Scotland in the round, we see that it has contributed £350 billion in oil and gas revenues over the years. Where is the UK Government’s match funding for the £500 million just transition fund that the Scottish Government have committed to the north-east of Scotland? The Minister talks about levelling up, but his levelling up does not include Scotland. We have the highest electricity grid charges in Europe, which puts renewable energy in Scotland at risk, as it is 20% more expensive than in the south-east of England. That also affects the UK’s net zero trajectory. Scottish energy consumers are now made to pay for their nuclear, which we do not want, and Peterhead has been sacrificed for the red wall constituencies. When it comes to Scotland, the UK Government are not helping us tackle climate change but are instead adopting a scorched earth policy as we head towards independence.
Finally, on the North sea transition, energy in Scotland and the move to net zero, I urge the hon. Gentleman for once to take a more positive approach and get with us, particularly as we prepare to host the world in Glasgow in just two weeks’ time.
Levelling up is very important, and it means all parts of the country, including rural areas, having the ability to become net zero. In constituencies like mine, many homes are not capable of being brought up to very high levels of energy efficiency and are not on the gas grid. What is the solution to make sure owners of those homes, who are perhaps not on the highest of incomes, can decarbonise their heat at an affordable price?
There are two problems with the Government’s net zero strategy: “net” and “zero”. The latter because it is not zero—we know there are sectors, such as aviation, that will be pumping out millions of tonnes of emissions into the atmosphere beyond 2050—and the former because we know the Government are relying on negative emissions technologies that, frankly, are based on science fiction and for which there is no prospect of mass roll-out. We are banking on this to rescue us from the climate crisis, but it is a “burn now, pay later” strategy that is not fit for purpose.
That is sort of a question, for which I thank the hon. Gentleman. He might be a proponent of the Labour party’s net zero by 2030 policy. I am not sure whether the shadow Secretary of State supports that policy, which I think was ratified at the Labour party conference.
We have already talked about carbon capture, utilisation and storage, which is a sound technology in which the UK will look to be a world leader. The Climate Change Committee itself has said that it will not be possible for every single part of the UK economy to be net zero. That is the importance of the word “net” in all of this. It is about making sure that we get to net zero by 2050, so it does not have to apply across all sectors. Of course we want it to apply across all sectors, and the North Sea transition deal for the oil and gas sector has a commitment to go to net zero, but overall it is about making sure the country gets to net zero by 2050.
My hon. Friend and I spent many happy, productive years working together in the Department for International Trade to market our technological breakthroughs in clean energy, particularly in offshore wind. He makes an extremely strong point about CCUS. When I talk to people in the sector, one of the points they make most frequently is about the UK’s ability to be an early mover, to get in quickly and to take advantage of export capabilities. I completely agree and commend my hon. Friend for the work he did over quite some time as our exports Minister.
The steel industry’s transition to net zero requires £6 billion of investment, yet the clean steel fund provides only 4% of that. Does the Minister really think that is enough?
I welcome the steps set out by my right hon. Friend to unleash the potential of our whole country. Can he reassure my Ynys Môn constituents that they will benefit from the 440,000 net zero jobs being created by 2030 and the £90 billion of private investment? Will he accept my invitation to visit Wylfa Newydd and see at first hand why the Prime Minister is such a fervent supporter?
I thank my hon. Friend, who is a tireless advocate for Ynys Môn, particularly on the economy and jobs. Of course, Ynys Môn, the whole of Wales and north Wales will benefit from the new green jobs that this net zero strategy will help to foster. The new money announced today for the future nuclear enabling fund is for optionality for the future, so that we can make future decisions based on good information on nuclear. Obviously, that includes potential for sites such as Wylfa.
The Minister talks, in effect, of crumbs for Scotland, the renewable energy capital of Europe, with a few jobs as technicians offshore, whereas my constituency is the fourth most impacted by the cuts to working tax credit and universal credit. We can couple that with the escalation of fuel prices, so I want to know: why do the UK Government insist on levying connection charges not to France or the Nordic countries, but uniquely to Scotland, driving away investment, jobs and ambitions for our green future and for an end to fuel poverty in Scotland?
I did not quite understand the hon. Gentleman’s point about connectivity, but what I will say to him is this: Scotland is vital for the UK’s energy needs, both currently and in the future. On oil and gas, 50% of the gas currently consumed in this country comes from the UK continental shelf, and Scotland is vital for that. It is also vital for our future offshore wind capabilities, and other low-carbon and renewable energies. That is exactly the technology, capability and capacity that I saw last week in Aberdeen. Perhaps he might get a little more optimistic about Scotland’s future when it comes to energy, because I certainly am.
I welcome my right hon. Friend’s statement and the Government’s commitment to helping all industrial clusters to decarbonise as we transition to net zero by 2050. As an energy-intensive sector, the decarbonisation of the ceramics industry will play a crucial role in this transition, which is why I am delighted to back the British Ceramic Confederation’s plans for a virtual ceramics sustainability hub, based in Stoke-on-Trent, to develop new decarbonisation technology, including carbon capture and storage. Does the Minister agree that Government support is vital to help the ceramic industry decarbonise by 2050? Will he meet me and other Stoke colleagues to discuss these ambitious plans for the creation of a virtual ceramics sustainability hub?
My hon. Friend is tireless in his ability and desire to get to the bottom of what lies behind Government figures. Perhaps I might commit to meet him, as, having taken on this brief four weeks ago, I know he takes a strong interest in all aspects of energy and climate change. Perhaps I might agree to meet him to discuss his concerns first, before committing to a new, huge audit of anything.
I welcome the Government’s setting an end date for the use of gas boilers, but of course switching to electricity for heating our homes makes sense only if the electricity used is not derived from fossil fuels. Because of the Lib Dems in government, the renewables sector has made big strides, but it is by no means accelerating in the way it should be. So will the Government take the opportunity before COP26 to announce an end date for using fossil fuels in the production of electricity?
We already have, as I mentioned in the statement, our commitment to a decarbonisation of our electricity system by 2035. However, may I take issue with her about renewables because we have had a massive amount of success, particularly since 2015? The cost of offshore wind, for example, has been reduced by two thirds since 2015, when there was a sole Conservative Government. We also have the commitment to have a really big increase in renewables. We currently have the world’s largest installed offshore wind capacity, at about 10 GW. We are committed to not resting on our laurels and to quadrupling that capacity in the next 10 years, to 40 GW.
The UK Government should be roundly applauded: we continue to be one of the nations in the world that decarbonises at one of the fastest rates, as my right hon. Friend has said. Operational carbon is just one of the pieces of the jigsaw, as is embodied carbon. What assessment has he made of regulating embodied carbon in the construction sector?
My hon. Friend makes a good point on the importance of the construction sector. Obviously, there has to be a read-across between Government policies, our commitment to infrastructure, our commitment to new homes and so on. So I will happily meet him to discuss the construction sector and its carbon footprint. On decarbonising the fastest in the G7, I thank him for his words of support. This has been a huge UK success story, particularly over the past 30 years. In the first half of my adult life, we have done really well as a country overall. I recall that in 1989 the Green party ran on a manifesto that said we could take action on global warming only if we either froze or reduced the size of the economy. This country, with its 78% increase in the size of the economy, while reducing emissions by 44% in the first half of my adult life, has shown the world the way forward to reaching net zero at the end of—well, I hope not at the end of the second half of my adult life, but in the second half of my adult life to come.
My hon. Friend makes a good point. Of course, gas has a substantial future in our energy supply, certainly in the short term. Currently, 50% of our gas comes from the UK continental shelf, so it is very important for us, notwithstanding high international wholesale gas prices. The Climate Change Committee has itself said that it is not inconsistent with net zero for there to be a contribution from the oil and gas sector, even in 2050. It is now a question of working with the sector, which is why we have done the North sea transition deal. We are working with the industry, in partnership with the Oil and Gas Authority, to make sure that we make the necessary transformation. A lot of the skills in the oil and gas sector are transferable to, for example, offshore wind.
As chair of the all-party parliamentary group on CCUS, I am delighted by today’s announcement that the Tees, along with our Humber colleagues, will lead the way on CCUS and hydrogen production. In the past, we have had several false starts, with the Government withdrawing funding, so I hope we get it over the line this time. How will the Minister ensure that Teesside workers will get the jobs and skills to develop the new industries and that the people of Teesside get a real dividend?
The north-east of Scotland is the home of the offshore industry and the obvious location for a carbon-capture project. Years ago, the Tories pulled the plug on the carbon capture and storage competitions before Peterhead won through, and it is now clear that the UK Government have put the holding of seats in the red wall of northern England ahead of saving jobs in Aberdeen and the north-east. How can the Government say they are delivering a just transition if the Tories put pork barrel politics ahead of supporting the ideal location for CCUS at St Fergus?
On behalf of Cornwall—no, I rise to speak on behalf of my constituency of Banff and Buchan, to which I shall turn in a moment. First, I thank my right hon. Friend the Minister for his visit last week to Aberdeen, where he expressed the Government’s ongoing and continuous support for the oil and gas sector and its valuable role in the energy transition to net zero. The North sea transition deal includes carbon capture and storage; far be it from me to correct the hon. Member for Kilmarnock and Loudoun (Alan Brown), but the hon. Member for Edinburgh North and Leith (Deidre Brock) got it right: it is St Fergus, not Peterhead. Is it not entirely predictable from SNP Members? They have been practising their script since before the bids even came in—they gleefully declare betrayal.
Many of us on the Labour Benches, including my right hon. Friend the Member for Doncaster North (Edward Miliband) and my hon. Friend the Member for Stockton North (Alex Cunningham), have been articulating the case for carbon capture, usage and storage for many years. Despite the shortcomings of the statement, including any clarity on whether the net zero strategy will meet the 2035 sixth carbon budget, the east coast cluster announcement is most welcome. Will the Minister ensure that the collective voice of working people, through their trade unions, is heard, and that all stakeholders, including Ben Houchen, the mayor, part company with the anti-trade union rhetoric and work in an inclusive and co-operative manner to ensure that the economic and employment opportunities are fully delivered for working people in my Middlesbrough constituency and across Teesside?
I absolutely agree with the hon. Gentleman on working with workforces. The commitment to net zero is a huge, country-wide endeavour and we must carry everybody with us. May I perhaps suggest that he has a word with the trade unions, because they have been extremely critical of Labour’s official policy, which is to get to net zero by 2030? As I have mentioned, the GMB has said that nobody thinks that 2030 is a “remotely achievable deadline”. Another said that it would be a huge upheaval, leading to job losses in the industry. I agree with what he has to say, but perhaps he might have a word with those on his Front Bench as well.
The transition to net zero emboldens politicians to use ambitious rhetoric, but they cross their fingers that the reality of implementation will be as planned. That is because, as my right hon. Friend knows, he is dealing with tremendous amounts of uncertainty over the fact that chosen technologies may not work or may be superseded, that anticipated unit cost reductions may not be achieved and that the first-mover advantage may result in heavy costs but illusory or temporary sources of competitive advantage. Can he advise me on what his Department is doing to calibrate correctly the extent of the use of taxpayers’ money, the extent of additional levies on business and the extent of additional burdens on householders in the achievement of his strategy?
Obviously, £450 million for heat pumps across England and Wales is a good thing, but it is set to benefit only 0.3% of Welsh households, while the future generations commissioner calculates that the cost of decarbonising Wales’s housing stock stands at £14.75 billion. The Treasury has resisted every step on the road to COP26. Our economy, our environment and our communities need Treasury funding to step up to the mark to lead the transformational investment. That will give the private sector confidence. How confident is the Minister that this news will reach us within the next 10 days?
The Minister talks about ending the sale of petrol and diesel cars by 2030. To do so, we will need drivers to switch to zero-emission vehicles over the next decade. Despite the upfront costs of electric cars still being significantly higher, the financial incentives to switch continue to be diluted. I welcome the shadow Secretary of State’s support for the SNP Scottish Government’s interest-free loan scheme for new and used zero-emission cars, but the Government’s zero-emission vehicle mandate will not even be legislated on until 2024. Nearly half the decade will be behind us when the mandate comes in. Why are the Government moving this policy forward in first gear?
I disagree with the hon. Gentleman. The transport section in the net zero strategy is very comprehensive on this and very extensive on how we get more people to switch to electric vehicles. In terms of some of the details, I invite him to ask my right hon. Friend the Secretary of State for Transport who leads on this at the next Transport questions.
The other week, Lord Deben, the chair of the Climate Change Committee, speaking at the Housing, Communities and Local Government Committee, indicated that, if we are to hit the Committee’s targets, local government has an incredibly important role to play in the retrofitting of existing homes, the building of new homes, local planning policies and local transport policies. Is it therefore not disappointing that there is not one single mention of the role of local government in the Minister’s announcement today? What has the Minister to say about that?
I refer the hon. Gentleman to the annex of the net zero strategy, which sets out in some detail our response to Lord Deben’s annual report earlier this year. I think he will find in the annex a lot of the good mentions of local government for which he has been looking.
The zero-emissions vehicle mandate is welcome, although, as the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said, the Government do need to get a move on. They have been cutting plug-in grants year on year, and there are now reports that the Chancellor wants to axe them all together. What in this strategy will actually help to make the purchase of electric vehicles more affordable for the average consumer?
Like the overall commitment, this commitment is very much on an ongoing basis. I refer the hon. Lady to the transport section of the net zero strategy and to the annex regarding the Climate Change Committee’s report.
The Minister says that he wants to work collaboratively, yet he did not reach out to the Welsh Labour Government or share plans, despite saying that he was going to. Of course, plans on net zero are welcome, but this is greenwash wrapped up with a great big green bow. Only the most well off will benefit from the heat pumps, and the Government have not made clear the new measures that householders will also need, including insulation, water storage and new radiators. The Government are also still building truly awful, inefficient homes. When are they going to step up and really take the action needed to meet the zero carbon commitment?
I expected to hear more in the Minister’s statement about partnership with local government. Local authorities up and down the country are trying to innovate and to pilot schemes to decarbonise homes. My own local authority is investigating the possibility of using green open space to have a district ground source heat pump scheme that would engage with private homes in the area; that is engaging with the private sector as well. Without local government, the Minister’s strategy is not going to work, so what is he going to do further to engage local government?
I welcome the hon. Gentleman’s approach. As I said earlier, this strategy is going to need all of us—central Government, our key city and regional Mayors, the devolved Administrations, businesses, local government and others—to work together to get to net zero. I would be delighted to work with the local government sector. My right hon. Friend the Secretary of State for local government—the Secretary of State for Levelling Up, Housing and Communities—takes a keen interest in this agenda. I am sure that we will work together to ensure that local government plays an important and crucial role in getting to net zero by 2050.
The Minister knows that steel made in Wales and the rest of the UK is half as carbon-intensive as undercutting steel from China. Moreover, our carbon footprint, although low on production at 4.8 tonnes per person is a much bigger 8 tonnes on consumption, because we now subcontract a lot of our manufacturing. Will he look carefully at pursuing a carbon border tax, so that we can play on an even playing field, support local jobs in manufacturing and steel, and help to tackle climate change? Will he announce and suggest that at COP26?
The chair designate of COP26 says that carbon border adjustment mechanisms will not be part of the discussions at COP26, but the UK is closely watching that debate. We are looking at the European Union proposals. Of course, we need to ensure that they are World Trade Organisation-compatible and that they do not discriminate against the developing world, particularly much less developed countries. The CBAMs debate is very much alive and we continue to study it very closely indeed.
In 2015, the UK Government pulled the plug on £1 billion of carbon capture and storage investment in Peterhead. Today, they have repeated that same mistake—a betrayal of the north-east of Scotland—by pulling the rug out from underneath the Acorn Project. The Minister knows that Scotland cannot meet its net zero ambitions without carbon capture and underground storage, so why is he shafting Scotland?
Full debate: Net Zero Strategy and Heat and Buildings Strategy
With respect to universal credit and wider budgetary considerations, I have repeatedly said that they are matters for my right hon. Friend the Chancellor. We will have ample opportunity to discuss these things in the House. With respect to the move away from fossil fuels, the hon. Gentleman and I are in agreement: I think that we need a diverse supply of decarbonised sources of energy.
I do not think that it is relevant, because there is no way that any storage in the world will mitigate the effect of a quadrupling of the gas price in four months, as we have seen. The answer is actually getting more diverse sources of supply and electricity through non-carbon sources—through nuclear, on which I am still very unclear as to the Opposition’s view, and through other sources of decarbonised energy.
The right hon. Member will know that, in 2020, 48% of our natural gas came from the UK continental shelf, so that is clearly a strong, sustainable source of gas to this country. However, I suggest to him that gas is a transition fuel: in our pursuit of net zero by 2050, we want to transition away from it. That is why we are developing carbon capture and hydrogen, as he knows very well.
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I own shares in companies that invest in renewable energy. As the House will know, consumer energy bills are enhanced by climate change levy charges, which are used to support renewable energy producers. Is my right hon. Friend aware, however, that a large number of those renewable energy producers use special purpose vehicle companies to receive those subsidies, and that many of those SPVs are based offshore for tax purposes? Will he meet me to discuss how the Government are going to close that very clear tax loophole?
As I have said a number of times, in this role and in my previous one, the green homes grant attempted to do three things. The first was to decarbonise public sector buildings, and that worked very effectively through Salix, the bank that disbursed those funds. The second element, which was disbursed by local authorities, has also worked very well. The third element is the one that we closed, and we want to get a renewed version of it.
In the final days of the last Labour Government, the UK was near the bottom of the G20 league tables for green investment and renewable energy. I therefore congratulate my right hon. Friend on his Department’s achievements on offshore and floating wind energy. Can he confirm that his Department will continue to invest in this area, particularly close to my North Devon constituency and the Celtic sea?
Full debate: Gas Prices and Energy Suppliers
Our new nuclear programme is stalled, and while the Secretary of State is right that we have made progress on renewables, the truth is that we need to go further and faster, with a more diverse supply. Above all, there is not yet enough of a clear plan from Government for how we meet net zero with affordability and security. People have read what the Climate Change Committee said in its most recent progress report this summer:
I therefore urge the Secretary of State in the midst of this crisis to use this autumn’s net zero strategy—delayed—the net zero review, also delayed, and the comprehensive spending review to finally put in place a proper plan. Households, businesses and energy suppliers are looking to the Government for support and direction as we face this crisis; it requires not words but action and delivery. It is long past time for Government to get a grip.
The right hon. Gentleman talks about a plan, but we have plans and strategies galore. We have the energy White Paper, which was widely well received and which I was very happy to present as Energy Minister, and we also have the Prime Minister’s 10-point plan. I was struck by the fact that when former US Secretary of State John Kerry came to the UK he publicly said that the UK’s plans for decarbonisation were more advanced than those of any other country.
The Secretary of State is entirely right that the UK is far better placed than most other European countries when it comes to the sources and diversity of its gas supplies, not least thanks to the two major liquefied natural gas terminals in my constituency at Milford Haven. Will he join me in paying tribute to the teams working at the South Hook and Dragon LNG terminals and also make a commitment today to work with me, the port authority and the industry on the Haven to make the transition to the next stage of our energy development and see a new generation of floating offshore wind and other renewable energy sources there?
I am fully conscious of the outstanding contribution of hydroelectric power. In fact, I was just speaking to the Norwegian Minister, and that country has 96% of its electricity derived from hydropower. The geography of our country means that we cannot reach that level, but I have absolutely asked officials to look into it, and the hon. Gentleman will know, given my record both as Energy Minister and as Secretary of State, that I am a very keen supporter of renewable energy. As I have always said, and as I said to the right hon. Member for Doncaster North (Edward Miliband), the Government’s focus on safety, consideration and protecting vulnerable customers is absolute.
CF Fertilisers, based in my constituency, is one of the plants that has had to close down in the light of cost pressures. There are obviously many impacts on consumers as a result of this decision, but the employment prospects of my constituents are at the forefront of my mind at the moment. I am pleased to hear that the Secretary of State met the company yesterday. I wrote to the Department over a month ago pointing out the need for urgent action on the cost pressures the company was facing, not just in terms of global gas prices but a number of other factors. I hope that discussions prove fruitful, and not just for my constituents’ jobs. We do not want to get into a situation where we are relying on importing carbon dioxide from other sources, because that will not help us to reach net zero and will put us risk of other fluctuations in world prices.
I thank the Secretary of State for his interest in renewables, hydrogen, new nuclear and CCS. He has already referenced the incredibly difficult situation facing CF Fertilisers in Stockton, which has been forced to suspend production because of gas prices. Is he aware of the knock-on effect that that can have on businesses that CF Fertilisers supplies, such as Huntsman in Wilton, and the further knock-on impact to the rest of Teesside’s chemical industry? Can I impress on him just how interconnected our industry is and how losing one player could lead to a domino effect?
It is absolutely right that we continue on our energy transition to net zero. I welcome the Government’s ongoing commitment to increasing renewable and low-carbon capacity across the UK, not least in the form of carbon capture and storage, for example, as proposed by the Acorn Project at St Fergus in my constituency, where, at the moment at least, about 30% of the UK’s gas comes ashore. Does my right hon. Friend agree that while we still have a demand, albeit a declining demand, for natural gas, we must ensure that that demand is satisfied by domestic sources as far as reasonably possible?
The hon. Lady will know that to answer that question we would have to have a much clearer view, in terms of the safety and applicability of hydrogen, for example, in the national gas grid. That is clearly a big part of our ability and the speed with which we can decarbonise the gas grid. She also knows that I am committed to decarbonisation; I am committed to the hydrogen strategy that was published six weeks ago, and there are ongoing trials to see whether we can use hydrogen to decarbonise the gas grid.
I welcome the Secretary of State’s hard work over the weekend to secure our gas supplies and protect consumers. Does he agree that the long-term solution to energy price spikes is to reduce our dependence on fossil fuels and accelerate the transition to a more cost-efficient and resilient energy system based on renewable energy and nuclear power, through projects such as Wylfa Newydd in my constituency?
Interconnectors are vital for our energy security and for reaching net zero, for both gas and electricity. In a White Paper last year, the Government aimed to get 80 GW of interconnectors in by 2030, which is three times what we have now. However, Ofgem, which is leading on this, seems to be dragging its feet. What can this Government do to get these interconnectors going and increase our energy security?
The hon. Gentleman is right that I welcome local initiatives. Only a month ago, I spoke at a forum at which representatives of local government were enthusiastic about getting behind net zero. I welcome all initiatives where local leaders are driving the push to net zero.
We have consistently, in our discussions on net zero and in our attempt to decarbonise the economy, sought to protect the most vulnerable of our constituents. He will know that I am seeking to protect the schemes he mentioned and, if possible, to enhance them.
Full debate: UK Gas Market
The Copenhagen summit of 2009 was undone by deep mistrust of the developed world by developing countries. Rather than learning from that, rich countries are still failing to deliver on the promised $100 billion of climate finance and the billions of vaccine doses still required by poorer countries. Yesterday, shamefully, the Prime Minister decided to press ahead with the cut in our aid spending. When the COP26 President went to see the PM yesterday, did he explain that COP26 is not some international photo opportunity, but a complex and fragile negotiation, and that the aid cut simply deepens mistrust, damages our moral standing and undermines our COP presidency?
Full debate: Topical Questions
The COP26 President knows that world leaders and others are asking him why the UK is the only G7 country cutting aid spending in the year that we are hosting the COP. He knows that delivering support to developing countries is not just morally right, but essential to building a coalition to pressure the world’s largest emitters.
The most significant of those emitters is China. To have a chance of keeping global warming to 1.5°, we need China to ensure that its emissions peak and start to decline by 2025 at the latest. Does the COP26 President agree? If so, can he tell us what the Prime Minister is doing to engage directly with China on the issue and persuade it to step up?
Full debate: Topical Questions
For a successful COP26, we have a particular responsibility as hosts to build trust with developing countries. The Government’s decision to cut aid spending—the only G7 country to do so—is therefore an appalling one, not just because it is wrong in principle, but because it is staggeringly self-defeating. The COP26 President knows that that decision makes a successful outcome at the conference of the parties harder, not easier, so may I invite him to add his voice to the powerful calls we heard yesterday, including from the former Prime Minister, the right hon. Member for Maidenhead (Mrs May), to immediately restore Government aid spending to 0.7% of GDP?
Full debate: Oral Answers to Questions
The problem is that cutting aid spending severely undermines the ability of developing countries to tackle the challenges of climate poverty and public health. The COP26 President knows that: it is what developing countries are telling him in the negotiations. We need vulnerable countries to be calling for more ambition from big emitters such as China, but they will be much more reticent in doing so when they do not feel that we can be trusted.
Totemic on the issue of trust is the promise made at Copenhagen for $100 billion of public and private finance for developing countries. More than a decade on, it still has not been delivered. It is our job as hosts to deliver on that promise. Can the COP26 President therefore tell us whether the $100 billion will finally be delivered this weekend at the G7 meeting?
Full debate: Oral Answers to Questions
These are our issues with the Bill, but we cannot ignore in this Third Reading debate the Bill’s wider context, about which I want to speak briefly. ARIA is an important innovation, but it cannot be detached from the wider landscape of Government policy. Today’s amendment on overseas development aid—new clause 4—may not have been selected, but the argument is not going away. We should not be slashing overseas aid to the world’s poorest people. It is not right morally, and it is not right on grounds of self-interest either. With coronavirus and the climate crisis, our fates are bound together.
All this is in the year of COP26, when we are the hosts trying to persuade other countries to accept our moral authority on the climate crisis and development.
As someone who was at the ill-fated Copenhagen climate summit of 2009, I want to tell the House that mistrust between developing and developed countries was the biggest reason it failed and is one of the biggest risks at COP26. The cut in aid spending undermines our efforts and undermines trust; the Government are wrong to be doing it, and it is self-defeating for our country. There is a very strong feeling about this across the House—quite possibly a majority—and the Government should reverse this cut in funding forthwith. My general experience is that when there is a majority in this House for something, it will find a way to express itself one way or the other. I suggest that the Secretary of State and the Government take heed.
Full debate: Advanced Research and Invention Agency Bill
I thank the Secretary of State for his statement. The climate crisis is the single greatest long-term challenge we face. As Secretary of State, I was proud to pass the world-leading Climate Change Act 2008 with cross-party support. In that spirit, although we believe that the UK should be going further and faster, we also recognise that our targets for 2030 and 2035 are ambitious by international standards. But the Secretary of State’s central challenge is whether targets are matched by the scale of action required in this decisive decade, and once again, his statement showed that the Government are very good at self-congratulation but perhaps less good at self-awareness. The evidence is that there is a wide gap between rhetoric and reality. Crucial areas are not being dealt with, and the scale of finance is not being delivered, leading us to be off track on our targets.
Let us take a few key issues. The first is buildings, a crucial part of decarbonisation. Last year, the green homes grant—remember that?—was the flagship measure, which the Secretary of State said would
Next, let us turn to electric vehicles. Again, we were supposed to see the transport decarbonisation strategy last year. Today, the Secretary of State did not even give a date for publication, so perhaps he can tell us in his reply when we will see it. We support the 2030 phase-out date, but the Climate Change Committee says—this is really important—that we will need 48% of the cars sold in the UK to be EVs by 2025, in just four years’ time. Despite the recent progress that he talked about, we are way off that, at less than 15%. We are not financing gigafactories, on which there is a global race. Our charging infrastructure remains inadequate, and the Government have actually cut the plug-in grant. Does the Secretary of State acknowledge that the Government are not investing enough to make the EV revolution happen in the way that is necessary for our car industry’s future and consumers?
Here is the worry I have about the scale of investment. The Secretary of State talks about investment over the decade of tens of billions, public and private, but everyone from PwC to the CCC says that we need that investment not over a decade but each and every year to get on track for our targets. In that context, the Treasury’s crucial net zero review was due in autumn 2020, and now it has been promised for spring 2021. Well, we are in spring 2021. Can he tell us when it will finally see the light of day? It is a crucial piece of work.
The climate emergency is a massive challenge for our country—the biggest long-term challenge we face. There is also a massive opportunity for our country, with our amazing scientists, our brilliant workforce and our world-leading businesses. But to make that future happen, we need a Government with the aspiration and commitment that matches the ingenuity and aspiration of the British people. Instead of a piecemeal 10-point plan, we need a comprehensive green new deal with the scale of investment and commitment that meets the moment and the emergency. I am afraid that I do not believe the Government’s record measures up to the scale of the challenge we face. We will hold them to account on behalf of the country.
The right hon. Gentleman mentioned offshore wind and the UK content of the supply chain. We are absolutely focused on that; we potentially have an auction round 4 at the end of this year, and I am committed to increasing—in fact, we have policies to increase—the level of UK content in offshore wind. The GE Renewable Energy announcement in Teesside only a couple of months ago, in which it committed £142 million, is exactly the kind of investment and commitment to the UK supply chain that we want to see.
I thank the Secretary of State for his statement, and I too particularly look forward to the publication of the transport decarbonisation plan. In west Cornwall, we are working up a plan to bring the towns of St Ives, Penzance and Hayle together in a low-carbon transport plan, bringing together the railway, the roads and multi-use off-road tracks. Will the Secretary of State look at how he can help us to achieve that? Also, if it so happens that he is down in my neck of the woods in a month’s time for the summit, maybe he could meet us to hear about our ambitious plans to provide low-carbon transport for all people living in west Cornwall.
I am pleased to say to my hon. Friend that I would be happy to meet him in Cornwall at any time of his choosing, provided, of course, that it fits in with my diary commitments. I am fully aware of the transport decarbonisation plan being absolutely crucial to his constituents—
The Secretary of State knows that how we heat our homes and insulate our buildings is an urgent issue that will affect every house across the entire country. He told the Select Committee a few weeks ago that the heat and building strategy would arrive at the end of Q2. Unless I have misunderstood, that is not before COP26; it is around now. Can he update the House as to why it has been delayed once again?
The 50,000 jobs related to the green homes grant. The hon. Lady will know that there were three elements to the green homes grant. One related to the decarbonisation of public sector buildings. That was £1 billion deployed through Salix. That has gone extremely well. Of the remaining £2 billion, £500 million was to be disbursed by local authorities for council housing, social housing and people who are vulnerable. That programme is going very well. What has been rejigged has been the half that related to owner-occupied buildings. It was a short-term stimulus plan that was due to run out in March this year, and we are looking at a replacement scheme.
I welcome the ambitious plans that my right hon. Friend has set out to clean up our energy system and support green British jobs as we work to end the UK’s contribution to climate change by 2050. However, can he confirm that he will prioritise keeping bills affordable, particularly for lower-income households in Stoke-on-Trent, as we transition towards net zero?
My hon. Friend will know that this is a critical point. There is always a balance between trying to decarbonise and making sure that energy bills are low to protect people. That is why we have a warm homes discount, which has worked very effectively. We have deployed money, and committed to that in the manifesto, with a home upgrade grant of about £2.5 billion. We are always looking at schemes not only to decarbonise, but to keep the costs low for those who are most vulnerable.
One could be forgiven for thinking that COP26 is approaching and the Government need to make some headline announcements. What is missing in the Secretary of State’s statement today is a clear set of metrics against which this House, this country and the world can measure the Government. Will he take on board the thoughtful recommendations of the Public Accounts Committee, which said that he should report properly to this House with clear targets and metrics which we can hold him to? I know that he is a man of intelligence, and a man who is committed to this; if he is that committed, will he open up that scrutiny so that we can really hold the Government properly to account?
Let me declare an interest: I served under the hon. Lady’s chairmanship on the Public Accounts Committee and I am very grateful for the time that I spent on the Committee. Of course, I will treat the Committee with the respect and courtesy that are due it. I look forward, as do my officials, to being asked about any of the Government’s programmes in respect of the net zero agenda.
I welcome the commitment in the 10-point plan to achieve net zero carbon emissions by 2050, but we have very few electric vehicle charging points in Southend and many parking restrictions. We would very much like to see them on new builds and in people’s driveways. With petrol and diesel cars being banned by 2030, will my right hon. Friend please help us to get more of these charging points in Southend before we become a city?
I thank and welcome everything that the Secretary of State has said today. May I join the hon. Member for Aberdeen South (Stephen Flynn) in extolling the virtues and benefits of the Acorn project in the north-east of Scotland—of course headquartered in Banchory in my constituency—as being essential to our drive towards net zero? Does my right hon. Friend not agree that, if his Department were to choose this project, it, along with the energy transition deal, would demonstrate again to the people in the north-east of Scotland the value of remaining a part of our United Kingdom?
The Government talk of a green industrial revolution, but surely they should be working through the concept of a green new deal bringing together attacking climate change and addressing social justice and job creation. On job creation specifically, how do the Government come to the figure of a quarter of a million new jobs by 2030, as many non-governmental organisations and think-tanks believe that the Government could be creating closer to 1 million jobs over the decade with the right policies of investment, with areas such as Northern Ireland achieving 50,000 more new jobs?
Thousands of my constituents work in the nuclear sector, which only this week has seen students from Warrington University Technical College beginning prestigious degree apprenticeships at Sellafield in Warrington—proof that the sector is a vital partner in the skills and levelling-up agendas, meeting our decarbonisation goals and creating high-quality green jobs. The Government have rightly concluded that we need much more nuclear power in the mix to reach net zero. However, under their watch, three large-scale nuclear projects have been abandoned due to the lack of a financing mechanism, which the Government claim to have been working on for four years. Why is nuclear financing more complicated than nuclear science?
The 10-point plan recognises the immense value of local jobs in offshore wind production—something that my constituents are anticipating as Barrow and Furness is the home of the second-largest wind farm in the world. However, wind is not the only crucial renewable energy source in Cumbria: nuclear is hugely important and, as the hon. Member for Warrington North (Charlotte Nichols) said, we are reliant on it. With that in mind, will my right hon. Friend update the House on the financing policy that sits behind this to enable these jobs to be created?
As I have mentioned, the green homes grant was composed of three elements. One was the decarbonisation of public sector buildings through Salix, the public finance body, and another relied on local authorities to distribute funds to enhance social housing and decarbonise those buildings. Both those elements were successful. The other element related to owner-occupiers. It was a short-term scheme that was always designed to end at the end of March, which it did, and we are looking to develop a replacement.
I am delighted that the hon. Gentleman has brought that question up. He will know that I speak regularly to my right hon. Friend the Secretary of State for Northern Ireland and the Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker), about investment in Northern Ireland, particularly in relation to net zero. The hon. Gentleman will know about the offshore wind opportunities in Northern Ireland, I am particularly excited about the opportunities for hydrogen, and he will also know about the operation of Wrightbus and its efforts to bring hydrogen into the transportation system. There are exciting opportunities for Northern Ireland in relation to the net zero 10-point plan and I would be happy to discuss them with the hon. Gentleman.
My right hon. Friend will know that in the United Kingdom we have an extremely diverse range of buildings and dwellings, which means that a one-size-fits-all policy just does not work for energy in the UK. There are lots of ways in which we can decarbonise buildings, which is exactly what will be spelled out in the heat and building strategy and—to a lesser degree, but more focused on hydrogen—in the hydrogen strategy. I would be happy to discuss with my right hon. Friend what we are doing to ensure that his constituents who are off the grid can get cheap, affordable green energy.
Full debate: 10-point Plan: Six Months On
The central question facing this Gracious Speech is whether it can rise to the moment in which we find ourselves because, while life is starting to return to a semblance of normality, and we are all thankful that that is happening, we cannot just go back to business as usual. Exposed in this pandemic we see millions of workers in deeply insecure jobs, the key workers in our country underpaid and undervalued, public services under deep strain, and an economy not working for too many people in our country and characterised by deep inequalities of wealth, income, power and place. And on top of that we face the challenge of economic recovery from covid and the climate emergency.
What would that mean as a start? It would mean five things: tackling insecurity at work with a new deal for workers; responding to the climate emergency with a genuine green industrial revolution; supporting our businesses to recover from the pandemic; rewriting the rules of our economy to shift wealth and power towards ordinary people and their communities; and rebuilding our public services. On those five issues, the British public deserved a Queen’s Speech that met the moment, but on each of those tests the Gracious Speech failed to deliver.
Let us consider the climate emergency. There has been lots of talk about jobs and skills in this debate—lots of good rhetoric. What do we see in the United States? President Biden has a $1 trillion green stimulus over the next decade. We have called for a £30 billion stimulus over the next 18 months to create 400,000 green jobs. What do this Government offer? Investment that, even on their own dodgy analysis, is one 60th the level of Biden’s stimulus.
Full debate: Better Jobs and a Fair Deal at Work
Last month, the COP President wrote that the world is doing nowhere near enough to limit global warming to 1.5° C, and he is right. A green economic stimulus could make a huge difference to meeting the target, but while we have put it as the top item of the G7 agenda, the sum total of the Chancellor’s measures here in the UK promised just £12 billion of green spending over a decade, and he has already cut £1 billion from that. Our investment is 60 times smaller than President Biden’s green infrastructure plan. Is it not a very significant challenge for COP26 that when it comes to a green stimulus we are telling others to act but not doing so ourselves?
Full debate: Topical Questions
As the right hon. Gentleman will know, as COP26 host, our actions face particular scrutiny, and I think he will know that the international community is increasingly concerned, and not just on green recovery. The Government call on others to power past coal but flirt with a new coalmine; say to others, “Adopt a net zero target”, but are off track on ours; and tell countries to support the world’s poorest but slash aid spending. Rachel Kyte, former special representative of the UN Secretary-General, said this week of our record on climate:
Full debate: Topical Questions
Quite. We support the intent of the Advanced Research and Invention Agency, but hon. and right hon. Members across the House should be aware that while the ARIA budget is £800 million over this Parliament, UK Research and Innovation’s annual budget is £9 billion. Last week, UKRI published a letter confirming that the BEIS official development assistance allocation will lead to a £120 million gap between its allocation and the commitments that it has already made. It warned of cuts coming on that scale, and the House should be aware of where those cuts are going to be. Potential areas include climate change, antimicrobial resistance, pandemics, renewable energy and water sanitation. Those are the kinds of things that that funding addresses. Mr Cummings was also at the Select Committee meeting—I will return to him shortly—saying that ARIA would solve the problems of civilisation. That is all very well, but I fear that these cuts seem to be coming right here, right now; and we cannot launch a successful moonshot if we cut off the power supply to the space station.
Take the net zero challenge. I believe it is a challenge of political will and imagination, but it is also a technological challenge. If it is the No. 1 international challenge, as the PM said last week, and if it is the No. 1 domestic challenge, as I think it is, why would it not be the right mandate for ARIA for at least its first five years? Indeed, Professor Richard Jones and Professor Mariana Mazzucato, who perhaps have even greater claims than Dom to being godfather and godmother of this idea, said that climate change would be an ideal challenge on which an agency such as ARIA would focus. To be clear, providing a mandate does not mean micro-managing decisions, and it would be grossly simplistic to suggest otherwise.
I am conscious of time, so let me say in conclusion that we face enormous challenges as a society, including new threats from disease, as tragically illustrated by the pandemic, the advent of artificial intelligence and, as I have said, the climate emergency. So the challenges we face are huge, but I believe—I know this is shared across the House—that the ingenuity, know-how and potential of our scientists, researchers and others is as great as, if not greater than, the challenges. If we support them, they can succeed. ARIA can support our scientific research. We support this Bill as a way to add capacity and flexibility to our research and innovation systems. It needs to be done in the right way. On the Bill and what is happening to British science, we will support the Government when they do the right thing but we will also call them out on cuts to science funding, and during the passage of the Bill we will seek to improve it so that it can strengthen our science base and do what is required to help us meet the massive challenges we face as a society.
Full debate: Advanced Research and Invention Agency Bill
While I would praise some of the measures taken by the Chancellor, I do not believe that a fair-minded observer would say that the Budget passes the Bevin test. On jobs, according to the OBR, even by 2025 unemployment never even gets back to pre-crisis levels. On welfare, the Budget tells people on universal credit that they need to go back to living on £74 a week from September, just as unemployment starts to peak. On the next crisis—the climate emergency—the Budget rejects a green stimulus and cuts green spending, as I will explain.
Beneath the rhetoric, the Government cannot be the answer to the problems of the country. They may have produced a document charting 10 years of failure on productivity, but they have not changed their view. The answer to 10 years of failure cannot be more of the same. This should have been a Budget with a plan to respond to the climate emergency by creating the jobs of the future; and a Budget with a plan to help business through the crisis and beyond with debt restructuring, providing a decent pay rise for our key workers and dignity in the social security system, rather than plunging the most vulnerable into deeper poverty. This is a Budget of low ambition for Britain. The post-war generation would never have accepted such a meagre vision as that presented by the Chancellor and the Government. They never would have, and neither should we, and that is why we will vote against the Budget tonight.
Full debate: Budget Resolutions and Economic Situation
I warmly welcome the President of COP26 to his full- time role. It is in all our interests that he should succeed, and we want to do everything that we can to help. The central judgment of COP26’s success is whether it keeps alive the Paris target of limiting global warming to 1.5°. To make that happen, the UN says that we need to more than halve global greenhouse gas emissions from 52 gigatonnes today to 25 gigatonnes by 2030. Will he assure us that he recognises the scale of this challenge and the need for maximum ambition, and tell the House how close to that target he thinks we can get at COP26?
Full debate: Topical Questions
A crucial issue for the success of the COP is international finance for developing countries, as the right hon. Gentleman knows, and they are facing poverty, the pandemic and climate change. Yet the Government have shamefully chosen this moment to cut £25 billion to £30 billion from overseas aid over the course of this Parliament. They say that they are protecting climate aid, but they have not set out what that means year on year, so will he guarantee today that, in the coming financial year when the COP takes place, there will be no cut to the level of the UK’s climate finance budget or to the climate programmes that we fund?
Full debate: Topical Questions
May I begin by adding my congratulations to the new Secretary of State? Promotion to the Cabinet with such an important role as Secretary of State for Business, Energy and Industrial Strategy must be a proud moment for him, and it is in the interests of the country that he succeeds, so I offer him my warmest congratulations. I also take the opportunity to pay tribute to his predecessor, the right hon. Member for Reading West (Alok Sharma). We all wish him incredibly well in his important job as the full-time president of COP26. He and I approached our exchanges in a constructive spirit, meeting, I hope, the mood of the times, and I hope that I can have the same relationship with the Secretary of State.
It is clearer than ever that when it comes to the big challenges facing this country, from national security to the climate emergency and our future prosperity, an active industrial policy will be one of the most important tools in our arsenal. The challenge for the Secretary of State is to match his words on industrial policy with deeds, and we will judge him on that. We certainly need to drop the tired, failed cliché that all the state can do to support the economy is get out of the way, deregulate, and cut workers’ rights. If that is the Secretary of State’s view of how best to support our economy, let me tell him that we will fight him every step of the way.
Full debate: National Security and Investment Bill
Can I thank the Secretary of State for his statement? This White Paper has been promised year after year, so there have been high expectations for it, and I know I should say that the Secretary of State and his Minister are deeply committed to the fight against the climate crisis, but the test of this White Paper is not just good intentions, but whether it is a plan at the scale of ambition we need to create the jobs we need and deliver the fairness we need. While there are certainly elements in the White Paper we welcome, I fear that too often the sound we hear when we read its pages is of the can being kicked down the road.
First, on ambition, we would like to go further and faster than Government targets, but the very least they must be doing is meeting, with policies, the target for 2030 they have set and the recent proposal by the Committee on Climate Change for a 78% reduction in emissions by 2035. The CCC is clear that, as part of its plan, we need to deliver zero-carbon electricity by that date—2035—but my understanding from the White Paper is that it appears simply to have an ambition of 2050 for zero-emissions electricity. Can the Secretary of State explain what appears to be lesser ambition?
Crucial to jobs is also a just transition for any workers in industries that will lose out. Does the Secretary of State recognise that there needs to be a proper plan for those in fossil fuel industries, including through using their skills in renewable sectors? Can he explain why there is not such a plan already, and will he work with trade unions and others to develop such a vital plan with urgency?
That brings me to my final point: markets have a role in this transition, but the Government must have a guiding hand. Whether it is a plan to decarbonise our homes, the future of the network infrastructure or the planned energy mix, the Government must match their intentions by playing their proper role to deliver in a way that is fair, creates jobs and shows the requisite ambition. If the Government do that, we will support them; but, on the basis of today’s effort, they still have a long way to go.
“The Energy White Paper is an important next step in our plans to reach our net-zero emissions target…Business stands ready to deliver the investment and innovation needed to turn ambition into reality”.
“Today’s white paper provides greater clarity to the companies investing across the UK to deliver our net zero emissions target.”
Let me address some of the points that the right hon. Gentleman has raised. First, he talked about the CCC, which has made a recommendation regarding the NDC of a reduction of at least 68%. We have adopted that recommendation, and that puts us on the pathway to net zero by 2050. The right hon. Gentleman also talked about tidal. He will know that we have had a call for evidence on that subject. There will be an opportunity through the contracts for difference auction process next year to bring forward projects in that area. On offshore wind, let me be clear that we are talking about the 60% UK supply chain. He will know that in the last few days we have launched the ports infrastructure competition, which will be an opportunity for ports to bid for Government funding. This will ultimately allow us to build products relating to offshore wind in the UK and to create jobs in our country.
I thank the Secretary of State for advance sight of his statement. Clearly, we welcome any sensible proposals for the transition to net zero and value for consumers, and we will support policies accordingly. The White Paper is a year and a half late. Much of it is wishlists and it still has the same outdated nuclear obsession. For existing nuclear waste, there is a £132 billion bill. For Hinkley Point, it is £20 billion. To add to that £150 billion, we have Sizewell C, which is £20 billion, and Bradwell to follow, which is £20 billion. Despite market failure, the Government have not given up on Wylfa, Oldbury and Moorside, so that is potentially another £50 billion. Small modular reactors, advanced reactors and nuclear fission mean further blank cheques. We cannot be serious about energy bills and value for money when it all comes to 35-year nuclear contracts. Compare that with the commitment in the White Paper of just £50 million to upgrade properties to EPC band C.
How will the Secretary of State ensure transparency for CCS site selections? Surely Peterhead, with its hydrogen proposals and existing carbon dioxide storage licence, has to be first in the batch. Can he confirm that it is under consideration, because it is not showing in the map in the White Paper? Sadly today, BiFab went into administration, with its yard in Tayside closing, which is proof of the failure to date of the CfD procurement process. Will the Secretary of State apologise for that and make sure that, following the consultation on procurement, this is remedied for the next auction process and that we get these jobs delivered in the UK?
There is so much in the White Paper—the future homes standard, the hydrogen strategy, heating buildings, decarbonisation, heat pump delivery—that is going to be consulted on from next year onwards. How can the Secretary of State make sure that these all come together and are delivered in time for the interim target of 2030? Finally, I welcome confirmation of the emissions trading system agreed with the devolved nations, and will he confirm that the carbon emissions tax alternative is now dead in the water?
Finally, the hon. Gentleman talked about CCUS. What I can tell him is that at this point we have not made any decisions about the sites of CCUS plants, but we will provide much more detail on this in early 2021. Those who are interested, including folks from his constituency, will then be able to take a look at what we set out.
I thank the Secretary of State for advance sight of the statement, and congratulate him and his team on the publication of this long-awaited but comprehensive White Paper. He will know that the Business, Energy and Industrial Strategy Committee will be looking at it in the round in the new year, including in our inquiry on decarbonising heat, but may I ask him one question today about gaps between the sixth carbon budget and the energy White Paper? To give one example, the sixth carbon budget from the Committee on Climate Change requested that all new boilers should be hydrogen-ready by 2025 at the latest, and that to meet all our hydrogen requirements we would need to generate 90 TWh by 2035. In the energy White Paper, however, the commitment to boilers is for the mid-2030s and only 42 TWh of power from hydrogen by 2030, a gap of some 48 TWh. Will he acknowledge that gap between the energy White Paper and the sixth carbon budget, and perhaps tell the House whether there will be further announcements in the new year to bridge that gap?
I thank the hon. Gentleman for that question. Seeing what the CCC has said, we will of course be responding on CB6 next year. That and the 10-point plan take us forward towards fulfilling CB4 and CB5, but we will set out more details in due course on how we get to those budgets. We will also be setting out, between now and COP26, a net-zero strategy for the country.
The European Commission is mobilising €1 trillion, and President-elect Biden will mobilise $2 trillion, but the UK saw only £12 billion for its green industrial revolution. Issuing yet more consultations, scant detail, repackaged announcements and bluster today about unleashing competition is simply not enough to tackle the climate emergency and fuel poverty. With the energy White Paper still leaving a huge gap of 101 million tonnes between meeting our 2032 carbon target, what is the Secretary of State going to do to close that gap?
I am sure my right hon. Friend’s constituents will agree with him that he is an outstanding Member of Parliament for Gainsborough. I agree with him—we are not trying to get people to stop using cars. We are saying that we want to move to zero-emission vehicles. That is why, in the 10-point plan that was published, we have put forward many hundreds of millions of pounds to support electric vehicle manufacturing and £1.3 billion for charging points across the country. We need to continue to work to ensure that we have EV manufacturing in the UK, and of course, the costs of that will come down as we have economies of scale.
It is absolutely crucial that we achieve transition to net zero, and that that transition is just. There can be no just transition to net zero without the skills and expertise in human capital in the North sea oil and gas industry. An essential component of that will be securing a sector deal between Government and the industry. Can the Secretary of State tell us when he expects to be able to announce the successful conclusion of sector deal negotiations with the industry?
Given that the typical training period to become qualified in heat pump installation is 48 months, will the Secretary of State clarify what steps are being taken to ensure that we have enough qualified people to meet the demand for heat pumps following the extension of the green homes grant outlined in the White Paper and, in the longer term, to meet our net zero targets?
With nuclear power both eye-wateringly expensive and painfully slow in the face of the climate emergency, it is disappointing that there is not more ambition on renewables and efficiency instead. Will the Secretary of State confirm that, far from saving consumers money, the regulated asset base funding model essentially means that consumers pay twice: first to reduce the cost of borrowing by increasing bills before the plant is operating, forcing liability for construction delays on to customers, and secondly for extremely costly power once the plant starts operating? Will he immediately publish the modelling that allows him to mysteriously claim that this will drive down costs for consumers?
Firms such as Westfield in my constituency of Dudley South stand ready to drive green growth in the transport sector, but to really unlock that they need charging points with grid-to-vehicle technologies and type approval for new clean electric passenger pods. Will my right hon. Friend work with his colleague the Transport Secretary to ensure that the infrastructure and type approvals are available so that those businesses can drive the green energy revolution?
My hon. Friend is a champion of the green energy revolution, and he mentioned Westfield. After the publication of the 10-point plan, the Transport Secretary and I did a roundtable with auto manufacturers, which were extremely enthusiastic about the support that we are providing for electric vehicle manufacturing. I mentioned previously the £1.3 billion to support the continued roll-out of charge points at UK homes and businesses and on streets over the next few years. That will be absolutely vital in ensuring that we are delivering a change and see more zero-emission vehicles on the road.
I welcome the transition to net zero. The Secretary of State may be aware that the Zero Carbon Humber project offers a world-first opportunity to decarbonise our region, promote local industry, attract investment and create jobs. When the Secretary of State is making decisions about which projects are successful for the Department’s industrial strategy challenge fund, will he take into account not just our green credentials but the impact of covid on our local economy and the need for job creation?
I commend the hon. Lady for speaking up on behalf of her constituency and for potential CCUS projects there. As I said in response to a previous question, we will provide more details on all that in early 2021, and at that point I will of course be very happy to have a further discussion.
My hon. Friend is so right. We have established the Jet Zero Council, whose aim is to accelerate the development and adoption of new technologies so that we can develop our strategy to reach net zero in aviation. Ultimately, we want to ensure that we are doing our bit to ensure that we have low-carbon flight, because there is huge potential in that as well.
County Durham has a proud and long history of coalmining. Ironically, it has left the county with a new valuable resource of green energy: the thermal heat from former coalmines. Durham County Council and Newcastle University are working together to develop the Seaham garden village project, which will tap into this new heat source for 1,500 homes. May I ask the Secretary of State to look at that and see how similar products could be spread out across County Durham and other former coalfield areas?
As chair of the all-party parliamentary group on the Celtic sea, I am working with colleagues to try to facilitate floating wind turbines in the Celtic sea, which will help us to move towards net zero. Those involved in their construction are facing issues with the Crown Estate, so will my right hon. Friend do what he can to support this project and the clean energy it could generate?
This energy White Paper is bristling with good things. Let me highlight two of them. The Secretary of State alluded to the negotiations with Sizewell C. May I highlight for him the importance of this project not just to the nuclear energy sector or to that part of the country, but to my constituents in Gloucester, where the operational headquarters of EDF Energy at Barnwood are extremely important? Can he confirm that access to Government financing will be the key to reducing the risk and costs of this project? The second great bit of news is his commitment to considering the role of wave and tidal energy. As chair of the all-party marine energy group, I thoroughly support this initiative, which I hope will end with some pots for marine energy and the contract for difference in November, before COP26.
Full debate: Energy White Paper
Let us myth-bust some of the lies that have been circulated this morning. Scotland is not getting 70 new powers. The UK Government say that new powers are coming on animal welfare, energy efficiency and land use. Has the Secretary of State not heard? The Scottish Parliament already has those powers. Just last month it passed a Bill on animal welfare; last year it passed a Bill on forestry; and energy efficiency was part of the Climate Change (Scotland Bill) in 2009, more than a decade ago. We have these powers.
Full debate: UK Internal Market: White Paper
We know how behind the Government are on building retrofits. The Committee on Climate Change recently said that there has been “negligible progress since 2015” and that the challenge of retrofit and renovation has gone “largely unaddressed.” We know that investing in retrofit is the ultimate win-win. This is the ideal opportunity —it would help the construction sector, not just in relation to operational hours, and could create tens of thousands of jobs—but today there are reports that it is being blocked by none other than Dominic Cummings. Apparently, he is uninterested and thinks it is “boring old housing insulation”. The Secretary of State and I have a good relationship, and I am happy to give way to him so that he can say that the £9 billion is going to happen. We need the £9 billion, so I am happy to give way. He has overruled Dominic Cummings on Sunday trading; now is the time to overrule him on this.
Full debate: Business and Planning Bill
Fourthly, crucial to helping businesses through this crisis is an economic stimulus that matches the moment. In particular, I hope that plans for a green recovery, which the Government have been talking about, will be at the centre of what they do. This is the way to get our economy moving, help to save businesses and meet our climate goals.
Full debate: Corporate Insolvency and Governance Bill
It is a pleasure to serve under your chairmanship, Mr Davies, particularly as your mother resides in my constituency, so this debate has particular relevance to your family. I congratulate my hon. Friend the Member for Barnsley East (Stephanie Peacock) on securing this important debate, and it is good to see the Minister in her place. I know she takes the issues around climate change and the climate emergency very seriously and is a sympathetic listener, as I hope she will be today.
Full debate: Flooding: South Yorkshire
I shall make three substantive points. The first is about the target itself. It is based on the recommendations of the Committee on Climate Change, and I welcome it, but I believe that it should be regarded as—I hesitate to use this word—a backstop. [Laughter.] I could not think of a better word, although I asked my hon. Friend the Member for Leeds West (Rachel Reeves) for one.
The reality is that the science is heading in one direction, towards more urgent action. Let me draw the House’s attention to a document that was produced for the Committee on Climate Change by its international advisory group, chaired by Peter Betts, an excellent former civil servant who was responsible for the international negotiations. In that document, the group said that we should set a net zero date no later than 2050, and that there was a case for 2045. As the Minister said, it is good that there is a review clause, and I think that we may well have to bring that point forward.
My second point is this: if you will the end, you have to will the means. I am glad to hear that the energy White Paper is coming, and the Minister has built up my expectations about what it will contain. My hon. Friend the Member for Leeds West talked about cars. By the mid-2020s, the lifetime costs of electric vehicles will be lower than the lifetime costs of petrol and diesel vehicles. As the Committee on Climate Change says, the economically sensible choice is to make an earlier rather than a later transition. That is not to say that no issues are involved, but that makes a profound point about the benefits of m oving forward.
Thirdly, if we will the means as well as the end, we should think not just about the 1% to 2% of GDP that this will cost—on top of what we already spend—but about the 98% of other economic activity. I raise the issue of the Heathrow third runway gingerly, but if we are so serious about this climate emergency, I do not see how we cannot look at all the things that the Government and the private sector are doing and ask whether they make sense in a net zero world. I hope that the comprehensive spending review will have a net zero carbon budgeting process attached to it.
My final point concerns the international negotiations. It is excellent that we shall be hosting the conference of the parties next year, but let me say to the Minister and to the House that this is a massive challenge. It is an incredibly important moment for the world, when every country has to update its Paris targets. In a way, this is the last chance for us to get on track for what the Intergovernmental Panel on Climate Change has described to us as a really dangerous and urgent situation. Let me say this to the Minister. Of course Brexit will be ongoing, at least for a bit, but will he please ensure that all the political and diplomatic muscle of Government will be put into this process? It is a massive thing for the world, and it will require a huge focus from the Government. This is an important moment, and I welcome it, but, in a sense, the hard work is only just beginning for all of us.
Full debate: Climate Change
It is a pleasure to follow the hon. Member for Truro and Falmouth (Sarah Newton). Her eloquent words on climate change show that the Front Bench’s loss is the Back Benches’ gain and this House’s gain.
The tone of this debate has been largely good-natured and about shared objectives, and that is important. This debate matters, and the emergency matters, because, contrary to what the Secretary of State implied, we are not doing nearly enough as a country. It is true that we have made a lot of progress in relation to the power sector, but 75% of the gains we have made overall since 2012 have been in that sector alone. The latest report of the Committee on Climate Change in 2018 says that emissions in the building sector, the agriculture sector, the waste sector and the fluorinated gases sector have been flat for a decade.
The emergency matters because it says to not only the Department for Environment, Food and Rural Affairs or other Departments—the Secretary of State for Business, Energy and Industrial Strategy is also on the Front Bench—but the whole Government that this matters to everyone and that this is not just another issue we have to deal with, alongside all the other issues we face. Every issue has to go through climate change and what we do about it. It is the whole basis of our politics for generations to come. I hope that the Secretary of State will support the emergency, because it will focus minds in the Government.
It is bad thing that in the 2015 TV debate, which I do not like to recall too much, not one question was asked about climate change, and that tells us something about the fact that Brexit—it is bad enough, given how it sucks the political oxygen out of all the other issues—is not the only reason why this issue has not been more salient, or rather that it goes through peaks and troughs. I think that the reason is that this is the ultimate challenge for politics, because the decisions we make now will have impacts in generations’ time, but less so today. The electoral cycle, if we are honest about it—and we respond to our voters—is five years, or perhaps less, not 20, 30 or 40 years.
I want to talk about how we persuade people, and I think there are four things we need to do. First, I enjoyed the speech by the hon. Member for Edinburgh North and Leith (Deidre Brock), who speaks from the Front Bench for the SNP, but I slightly disagreed with one thing. She said a couple of times that we need to tell people their lives are going to be less comfortable. I slightly feel that that is saying, “I’m here from Planet Politics to say you’re going to have a less comfortable life.” I do not mean this in a trite way—I think it true that sacrifices must be made—but we should promise people something else, which is that they will have better lives if we act on climate change. I do not think that is a false promise; I think that is a genuine promise.
My experience at the not-very-successful Copenhagen summit was that China and India would listen to us because, unlike the US, we were actually acting. I cannot emphasise enough to the House the authority that our ability to act gives us. By the way, the Chinese recognise the opportunity. They are installing so much solar and wind power because they know that there is an economic advantage. The issue is particularly crucial in the next 15 to 18 months because of our hope to host COP—the conference of the parties—in 2020. That is the moment when we have to update the Paris targets. We are overshooting, even on the basis of the Paris targets. Unless that conference of the parties takes decisive action, it may well be too late.
The right hon. Gentleman is absolutely right on China; it is vital that people understand this. The Chinese are moving ahead very fast. He and his colleagues, and the former Foreign Secretary Lord Hague, were crucial in making sure that the Foreign Office was engaged in climate change diplomacy, persuading the Chinese that the fall in the cost of renewables, particularly solar, made them affordable and that the health benefits of reducing air pollution made them really attractive to their population. The change in the mood in China could be the change in the mood across the world. We need to learn from China, support it and make those points.
Full debate: Environment and Climate Change
Enlargement of the EU following the fall of the Berlin wall—as a nation, we advocated for that enlargement; leadership on climate change under the last Government and, I freely say, under this Government; a commitment to the rule of law and human rights; a belief in the importance of multilateral institutions—all of these have been bound up in our relationship with the European Union, and we should not be under any illusion about the real risk that, following our departure, our influence in the world will be weaker, not stronger.
I negotiated on climate change for the last Labour Government, and our strength, our power, our standing on that issue came from our membership of the European Union because we accounted for 10% of global emissions, not just 1%. The House should therefore recognise that the question of what strategic relationships come after Brexit is fundamental to the issue of real sovereignty and our ability to have an effect on the big issues that will affect us.
Full debate: European Union (Notification of Withdrawal) Bill
As the first foreign leader to meet President Trump, the Prime Minister carries a huge responsibility on behalf not just of this country but of the whole international community in the tone that she sets. Can I ask her to reassure us that she will say to the President that he must abide by, and not withdraw from, the Paris climate change treaty? In case it is helpful, can she offer the services of UK scientists to convince the President that climate change is not a hoax invented by the Chinese?
Full debate: Oral Answers to Questions
It is a pleasure to follow the hon. Member for Wells (James Heappey), who spoke eloquently, particularly about the role that renewable heat can play. I commend my hon. Friend the Member for Brent North (Barry Gardiner) for securing this important debate. He brings huge knowledge and depth to his role and I wish him well in it. I should also take this opportunity to congratulate the new the Secretary of State for Business, Energy and Industrial Strategy. Mention was made earlier of the fact that he was my shadow when I was Secretary of State for Energy and Climate Change. I always respected his ability and commitment on climate change. I was deeply disappointed by the abolition of the Department of Energy and Climate Change but the one saving grace was his appointment and that of his extremely able Minister for Climate Change and Industry. I have spoken to the latter since the election about climate change. I do not want to damn his career too much, but I can say that he is a class act, as we will hear when he speaks.
In the main, I want to talk about the impact of Brexit on climate change, but I should mention in passing that I could not help hearing in the Minister’s remarks the wheels of government grinding on the issue of domestic ratification. As his speech wore on, we got more of a sense that it would come more quickly than slowly. I encourage him in that, because my hon. Friend the Member for Brent North is right about the signal it would send.
The central issue for UK climate policy is Brexit. That is the unavoidable context for discussions about climate change. I have been nice about the Minister of State. I am not going take it back, don’t worry—maybe he’d like me to. He talked about British diplomacy. There is a big elephant in the room for British diplomacy on climate change: Brexit. We have to address it. I understand that the Prime Minister says she does not want a running commentary—fair enough—but there is a difference between a running commentary and a Trappist vow. There cannot be a Trappist vow. We have to engage with the many, many hard questions raised by Brexit for UK climate policy. Saying “Brexit means Brexit” does not really solve the problem.
The case I want to make is this: first, our membership of the EU has helped us to be a persuader for global action on climate change. Secondly, the ability to persuade is needed more than ever after the Paris agreement. We all know the issue in the Paris agreement: an aspiration to keep global warming below 1.5° with pledges that add up to about 3°. Thirdly, Britain’s ability to be that persuader for greater ambition is gravely endangered by Brexit. We cannot shy away from that. The real issue I want to focus on is this: the kind of Brexit we opt for—whether it is hard Brexit, which leaves Britain on its own, or whether we forge a new close relationship with the European Union—will be absolutely crucial to the issue of UK influence and the world’s ability to tackle the problem of climate change. That is why, having paid them nice compliments, I want to say to the Secretary of State and the Minister of State that they have a big responsibility in this process—I am sure they are aware of it—to ensure we have the right outcome in these negotiations on climate and energy.
The starting point for addressing this question is to understand that, in this area and in many others, the debate about our co-operation with the EU has not somehow ended with the referendum. It is only just beginning. I was on the remain side, but we all know the reality: the British people did not vote for a particular model of Brexit. They voted to leave the European Union, but the model we decide now has to be a matter of detailed debate and negotiation. As the House knows, in the international negotiations on climate change we currently negotiate as part of the European Union. As part of the EU, we are on a par with players such as China and the United States. The EU is responsible for about 10% of global emissions and Britain is responsible for about 1%. In the EU, we have been a successful advocate of strong European ambition on climate change. We have been—mention was made of this earlier in the debate—at the forefront of landmark international agreements, punching above our weight as a country. To be fair, we have seen that under Governments of both parties: at Kyoto in 1997, with the role played by John, now Lord, Prescott; and just last December, to give her rightful credit, with the role played by the last Secretary of State for Energy and Climate Change, now the Home Secretary, in the negotiations around the Paris agreement.
We in this House should be proud of what Britain has been able to achieve, but we should be under no illusions. The influence and role that Britain has played in the past two decades on climate change, which has been hard won, is now gravely at risk. The danger, in this area and in many others, is that we are outside the room when the big decisions are made, or are in the room as bit-part players. A recent paper from Chatham House, the respected international think-tank based in London, said that the danger of Brexit is that we would
All those countries have played varying roles on the issue of climate change, some of them important and honourable, but we have had greater influence. I want to preserve that influence.
There is another danger. We have been persuaders for ambition in the European Union and the real danger is that our absence from the EU waters down and dilutes the commitment of the EU. The danger is that our absence tips the centre of gravity away from the high-ambition countries to those countries that have more anxiety about the issue. That is why the implications of Brexit are not just self-serving ones about Britain’s influence in the world and on climate change; they are also about the world’s ability to make the right things happen in the fight against global warming.
The risk that I have described about Britain’s influence comes with other associated dangers, including for the role of British science and research, which I am sure the Secretary of State and the Minister are concerned about and which draws huge benefit from EU resources, and of the European Investment Bank, which in the past few years has either loaned or given the UK a quarter of the money for energy and climate change projects. There is also a massive issue relating to the repeal of environmental legislation from the European Union.
I want to be clear: we would not continue to be members of the European Union—our status would change—but we would be crucial partners, and in my view that is completely consistent with the referendum. We should do that because it is in our national interest. Whether Members think we have gone too far on climate change or not far enough, nobody in this House, on whichever side they sit, has an interest in diminishing our influence. I think it is just objectively the case that we are in real danger of diminishing our influence as a country on this vital issue for the future of our people.
Finally, I believe in the principle of co-operation with our closest neighbours in Europe, and I believe that we are strengthened, not diminished, as a country when we do that. Climate change is just one example of where that is the case. That was true before the referendum, and it is true after the referendum as well. I think that both the Secretary of State and the Minister of State know that, too. The stakes could not be higher on this issue and on what unfolds in the coming months and years. We will hold them to account, because Members of all parties care about not just tackling climate change, but making sure that we can continue to punch above our weight as we do so and get the right outcome for humankind. A lot rests on those Ministers’ shoulders; if they make the right decision, we will support them on it.
Full debate: Paris Agreement on Climate Change
I beg his pardon. He was one of the five Members who voted against the Climate Change Act 2008, which was supported right across the House. It will not surprise hon. Members to hear that I approach this subject from a slightly different perspective, and I want to focus on how the Bill can be improved. Given the scale of the challenge we face, the right question to ask about any energy or climate Bill before the House is this: will it do everything necessary to meet our obligations and the requirements placed on us to take a leading role in tackling climate change? I believe that things can be done to the Bill to ensure that it does so.
This Bill is unlike many other Bills that have come before the House, in that a very important event has happened in between its being introduced in the other place and its Second Reading today. That event was the historic Paris climate change agreement. I paid tribute to the Secretary of State when she made her statement on the Paris agreement, and I do so again today for the incredible job that she has done.
My case to the House is that we need to reflect the high ambition of Paris in the Bill. In particular, I want to set out why the Government, in the light of the Paris commitment to a long-term global goal of zero emissions, should use this Bill to legislate for the same objective here in the UK. We need to legislate for zero emissions in law, with the date to be advised by the independent Climate Change Committee. I want to thank Members across the House whom I have talked to about these questions. They include Members on my Front Bench, the hon. Member for Brighton, Pavilion (Caroline Lucas), Liberal Democrat Members, Scottish National party Members and, indeed, the hon. Member for Beverley and Holderness (Graham Stuart), who plays an important role as the chair of GLOBE International, the international parliamentarians’ committee. If other hon. Members want to know more about this subject, a paper has been published today by the organisation Sandbag, setting out the case. My case is threefold. It is about consistency between international agreements and domestic action; it is about the economic case; and it is about the effect we can have on other countries.
Given what I said earlier about the effect of our having commitments that are higher than those of the other countries in Europe, which simply reduces the amount to which they are committed under the Paris agreement, if the right hon. Gentleman wants to raise our target even higher, would he not be reducing to an even lower level the amounts by which those countries would have to reduce their emissions in order to reach the EU global total?
My first case for acting relates to consistency between international agreements and domestic action. When I set a target of 80% by 2050 in the Climate Change Act, that was agreed on a cross-party basis and we were at the most radical end of the spectrum. That target was formulated to give us a fighting chance of keeping global warming below 2°C. However, Paris has crucially moved the world on from that. Paris sets a twofold objective: to try to keep global warming below 1.5°C, given that we are already at 1°, and, crucially, to achieve the long-term goal of zero emissions.
As someone who did not vote for the right hon. Gentleman’s climate change legislation, may I ask him what role he thinks the Act has played in the tragic job losses in the steel and other high-energy-burning industries in Britain?
It is totally simplistic to say that the Climate Change Act has led to that. It is a result of a whole series of decisions that the Government have had to make. As the right hon. Gentleman and the right hon. Member for Hitchin and Harpenden will remember, Lord Stern’s report made the crucial point that the cost of not acting on climate change will be greater than the cost of acting. Just look at the floods that we have seen in the last couple of months! We are going to have a lot more of that—coming soon to a constituency near you! I am sorry to accuse the right hon. Member for Wokingham (John Redwood) of sticking his head in the sand, but that is exactly what we are doing if we say that we do not need to act, that everything will be okay and that we should just carry on with business as usual. To be fair to the Secretary of State, who might not thank me for saying this, I do not think she believes that that is what we should do. She is on the right side of this argument. Of course we have to do it at the lowest cost we can, but let us not pretend that somehow this problem does not exist—we are seeing its effects all around the world, and if we do not act, we are going to have a lot more of them.
Although I agree with much of what my neighbour said about climate change, the perception, which seems also to be partly the truth, is that in trying to act in this country we have simply exported a lot of our emissions overseas and we are now importing steel which is dirtier than that which would be produced here. That is what steelworkers in my constituency, who are facing job losses, are saying.
I now wish to carry on making my case. If we support zero emissions globally—that is what the Secretary of State has done—the logical position is that we must also support it domestically. We set a target of an 80% reduction, but it does not make sense to have 80% as the target when we know from the science and from the global agreement that we will eventually have to get to zero emissions.
The second part of my case is based on economics, and I wish to make the following comments to Conservative Members in particular. They will worry that my proposal sounds as though it is going to raise costs, but quite the opposite is true. I ask them to listen to some of the business voices who are saying that they want us to set a clear target for zero emissions. Why are they saying this? It is because certainty is the friend of business in this area and uncertainty its enemy. Richard Branson has said that a net zero emissions goal simply makes “good business” as it
Thirdly, and finally, my case goes beyond our borders. The Paris agreement is a great one, but its biggest weakness is that if we look at the aggregate of the different commitments made by different countries, we see that although the aspiration may be to limit warming to less than 1.5°, when we add them up they seem to be more like 3°-worth of commitments. Some might ask what difference the UK can make, as it represents only 1% of global emissions. They might ask why our acting has an impact. I say to the House that it does have an impact. The Climate Change Act—I give credit to the Conservative party because it supported this and actually pushed the then Government to do this—had an impact, not only in Britain but around the world. When the Secretary of State went to the Paris negotiations and urged others to take action, they were not able to say to her, “You are pretending you care about these things and want to legislate for them, but actually you are not taking action in your own domestic legislation.” We did do that.
I say to the House, and to those who are sceptical about action having been taken, that the 2015 global climate legislation study looks at climate change legislation in 99 countries and talks about the speed of response following the UK’s Climate Change Act. My threefold case is that we need to have consistency between domestic and international action; that there is an economic case for doing this; and that we have an impact on other countries if we act.
I wish to deal with two other points that might be made to me about why my approach is a bad idea. The first is that we should stick to our existing targets and not worry about having more ambition. People might say, “Why do we need more ambition when we have this framework already in place?” By doing so, they are sticking their heads in the sand, because if we have to get to zero emissions, we should start that process now. It is a hard task, but it is a feasible one and we need to know that we should get there. My case is a pragmatic one. I am not saying, “Pluck out of the air a date on which to get to zero emissions.” I am not simply saying we should get there in 2050, as some business leaders have urged. I am saying that we should get the independent experts—the Committee on Climate Change—to look at these issues and advise government on when we should put this into UK domestic law.
The second point, which I think has been made in interventions, is that somehow we are going far too far ahead of other countries—that this is us being far too far out in front. The simple point to make about that is that more than 190 countries have now signed up to this zero emissions goal in the Paris agreement. Every country is theoretically signed up to this goal, so the question is: are we actually going to do it? Is this goal just warm words? Is this just us pretending that we are going to act but not really following it through?
In conclusion, I hope the Government will come forward with an amendment such as I have been outlining. If they do not, I want to work with people across this House to seek to make it happen. The Government can support this measure, so I hope they will table an amendment, either in Committee or on Report. It would build on the momentum of the Paris agreement, it is in the best cross-party traditions of the Climate Change Act, and it would send a powerful signal around the world and in Britain about our determination to act. Above all, it would increase our ability to tackle dangerous climate change. Notwithstanding the contribution from the right hon. Member for Hitchin and Harpenden, this is something that unites the vast majority of Members across this House. I therefore hope the Government will give this suggestion the consideration it deserves.
Full debate: Energy Bill [Lords]
It is a pleasure to follow the hon. Member for Beverley and Holderness (Graham Stuart), who plays a very important role in the GLOBE organisation of parliamentarians. This debate comes at a timely moment after the Paris agreement, and after the tragedy of the floods that we have seen. I know that many hon. Friends want to talk about the effects on their constituencies, so I will try to keep my remarks reasonably brief.
I want to focus on the question of what the Paris agreement means for UK domestic policy. In doing so, I praise the Secretary of State for Energy and Climate Change, who played an important role in the talks. She was the host of the high ambition coalition between developed and vulnerable countries, and her office was its headquarters. She deserves credit for the very constructive role that she played. Having said that, when I listened to her statement yesterday, I felt, while I do not want to be unfair to her, that her position was somewhat to say, “Everything has changed and nothing has changed.” In other words, internationally everything has changed, with high ambitions, zero emissions and all that stuff, but for the UK things are the same as before. I want to make the case that that cannot be right, for four reasons, three of which are to do with the agreement itself.
The Committee on Climate Change picked up on this point in its release yesterday, saying that it would make it even more important—I am paraphrasing somewhat but I do not think I am misrepresenting it—that we met its recommendations on carbon budgets, and that it might be the case that further steps should be taken. It said that it would come back to the Secretary of State on that in early 2016. I would be interested to hear what she thinks are the implications of this more exacting target—because it definitely is more exacting.
The right hon. Gentleman is making a very strong case, which I appreciate. Surely the difference that 1.5° makes means that we need to think again about aviation expansion. In yesterday’s aviation statement, which came right after the climate statement, nobody even mentioned climate, and yet aviation is one of the fastest-growing sources of greenhouse gas emissions.
Secondly, the agreement contains not just the 1.5° aim but a long-term goal of zero emissions. When I asked the Secretary of State about this yesterday, she said that she was happy pursuing the existing targets in the Climate Change Act. I think that those targets are very important, because I helped legislate for them, and I am very happy that she wants to make sure that we meet them. However, when I was Climate Change Secretary we had not had a global agreement for net zero emissions. We cannot possibly say, “We’ve got this global commitment to zero emissions in the second half of the century but it has no implications for UK domestic policy.” Of course we have to look at what it means for the UK.
My case to the Secretary of State, which I hope she will consider—I am not asking for an answer today—is that when the Energy Bill comes back to this House in the new year she amends it to ask the Committee on Climate Change to do something very simple, which is to look at this issue and make a recommendation to Government about when we should achieve zero emissions. That would do a number of things. It would send a cross-party message that Britain is determined to be a climate leader; the Secretary of State has talked eloquently about the impact that the Climate Change Act had, with cross-party support. It would also reduce, not increase, the costs of transition, because it would provide a clear trajectory to business and, indeed, to future Governments.
I say to Conservative Members, who have understandable concerns, that it would be supported by business. I am not the most radical person on this issue. The most radical people are, believe it or not, Richard Branson, Paul Polman of Unilever and Ratan Tata. They want not just what I am suggesting, but something much more radical—they want zero emissions by 2050. Perhaps that is what the Committee on Climate Change will concede, but my approach is much more pragmatic, as is that of the hon. Member for Beverley and Holderness (Graham Stuart). Let us not pluck a figure out of the air—such as 2050—without having the experts look at it; let us look at what the implications of the global goal of zero emissions are for the UK. That is a very reasonable suggestion.
I do not want to say to the Secretary of State that this is easy, because it is a long way off, but it is an easy win for her. She would go down in history as the person who helped legislate for zero emissions, which is the ultimate backstop. When I was Secretary of State, the ultimate backstop was 80% reductions. Now we know from the global agreement that the ultimate backstop must be zero emissions at some point.
I am interested in the right hon. Gentleman’s specific policies to tackle CO 2 emissions. In the US, fracking is credited by the Intergovernmental Panel on Climate Change as being the principal reason for the reduction in greenhouse gases. Does he support shale gas exploration in the UK?
Does the right hon. Gentleman accept that if we are going to use wind power or solar, we have to have CCS, as National Grid has said; otherwise, we will not be able to match grid demand?
Certainly. While we are on the subject of sorry sagas, I am afraid that one of the other sorry sagas is the CCS competition, which is a recipe for how not to make policy. It was started, believe it or not, nearly 10 years ago by the Labour Government. I think it was started under Alistair Darling. I then pushed it forward before this Government cancelled the competition, then restarted it and then cancelled it again.
It has been an incredibly sorry saga, but I do not think that the previous Labour Government can have anything positive to say about CCS, given how badly they treated it when it was going to be introduced at Longannet.
A fourth and final thing has changed since Paris, and it relates to the Secretary of State and her role in Government. I want to say something personal to her about that. I think that the thing that has changed after Paris is her negotiating power. Anyone who has been a Secretary of State knows that not all the decisions go their way—that was certainly true when I was Secretary of State. I am sure there have been a number of times over the past few months—obviously, the Secretary of State is not going to say this at the Dispatch Box—when she wanted a decision to go one way but it went another way. Successful Secretaries of State, however, recognise their power, and I say to her that she is empowered by the Paris agreement. She is empowered by it to tell the Prime Minister that he cannot just use warm words abroad and then not follow them through with deeds at home. She is empowered to tell the Chancellor that British business is, frankly, furious at the neglect of a crucial and growing sector of the economy. Above all, she is empowered to be the Cabinet champion for tackling climate change. If the Secretary of State does that—if she is that champion—she will get support from those Members on both sides of the House who believe in this cause, as I know that she does, too. They will support her in her endeavours.
In conclusion, whatever the Secretary of State does, we need to match the high ambition coalition in Paris with a high ambition coalition at home. That high ambition coalition has to combine trade unions, business and civil society. I do not see Paris as the end in any sense; it is merely the beginning—it gives us a new beginning on climate change. In the interests of future generations, we have to seize that moment.
Full debate: Climate Change and Flooding
Let me return to the process of the Paris summit. We need an agreement that is as close as possible to what the science tells us is necessary. We should all be worried about what the science is telling us, because compared with six years ago it is even clearer. A good assessment produced by the Met Office earlier this month stated that 2015 is set to be the hottest year on record—yet another record. Some of that may be related to El Niño, but all the experts tell us that the underlying warming is a result of human-induced climate change. We are now at 1 °C of warming, which is half way to 2 °C. Importantly, global warming is not some theoretical idea—sometimes we speak as though it is—because it is happening now and the changes are already being witnessed.
Another study produced by the US Government’s National Oceanic and Atmospheric Administration this month found, among other things, that devastating floods in Indonesia in 2014, the 2013 Argentine heatwave, and tropical cyclones in Hawaii were all linked to human-induced climate change. The science is clear, dangerous, and should make us deeply concerned: climate change is real and it is happening now.
If the world ends up in 2100 with 3 °C warming, that would be catastrophic. It would mean temperatures that are higher than at any time in the last 3 million years, with dramatic effects of intense heatwaves, flooding, and millions—or hundreds of millions—of climate refugees. Does that mean that we should dismiss the likely Paris agreement? In my view, we should not. If the Secretary of State, her colleagues, and world leaders pull off an agreement in Paris, new ground will have been broken. It will be the first agreement to get anywhere even in the vague neighbourhood of 2°, the first to oblige all major emitters to take action to reduce emissions, and the first—we hope—comprehensively to stand up $100 billion of climate finance for mitigation and adaptation for the developing world. Those would be signal achievements—behind the science but ahead of where we have been.
Since the ambition will be insufficient at Paris, our focus should be on raising that ambition afterwards. I think of that in two parts: ambition before 2030, and ambition after. Before 2030—my hon. Friend the Member for Bishop Auckland mentioned this—we need a ratchet mechanism to ensure that the Paris agreement is the beginning of what is required. That must mean a tough, five-year review mechanism, so that countries renew and improve their pledges. My colleague in another place, Baroness Worthington, said that the agreement might ultimately come to be seen as a global equivalent of our five-year carbon budgets, and that is the right way to think about it. The hope—I think it is not a forlorn hope—must be that as technology develops and as confidence is built, countries will move further and faster.
In response to the point from the hon. Member for Beverley and Holderness (Graham Stuart), ensuring progress means that we must keep on track here at home. Next Thursday there is an important moment when the Energy and Climate Change Committee publishes its recommendations for the fifth carbon budget, and I hope the Government will support that.
Let me move on to the period after 2030. Every excess tonne of carbon that we emit between now and 2030 means that we will have to do more later—we must be clear about that. The easiest way to think about it is that we have a finite carbon budget, which has been helpfully estimated by the UN to be about 1,000 gigatonnes—a round number. Once that is used up, we can emit no more if we are to avoid dangerous warming. Frighteningly, the UN tells us that on current pledges to 2030, 75% of that total carbon budget will be used up by 2030. That suggests the scale of the task facing us, particularly if we do not improve the pledges between now and 2030. The crucial point, whether we do that or not, is that the world will at some point have to reach zero emissions. I commend the Government and the Secretary of State for signing up to the G7 pledge, made recently, that the world will have to get to zero emissions sometime in the second half of this century.
It is striking that increasing numbers of business leaders—this again relates to the point made by the hon. Member for Beverley and Holderness—are putting their energies and thinking into the so-called net zero commitment. Ratan Tata, Paul Polman of Unilever, Richard Branson of Virgin and many others from the so-called B-team of business leaders, recently sent a letter to all those attending Paris calling for the adoption of the long-term goal of zero emissions. They are right: the long-term goal is an essential part of a successful Paris agreement.
What does zero emissions mean? It means a 100% clean energy system. It means the right decisions about infrastructure. It also means—this is where the inventers and engineers will be incredibly important—technological advance on how to capture carbon, reforestation and a whole range of other matters. Increasingly, the question of when and how we get to zero emissions will become our focus and energy after Paris. It will need to become the benchmark for the decisions we make in the years ahead.
Finally, we will also have to continue to work on the all-important question of a fair and equitable approach. The reality that all of us in the House have to face is that industrialised countries have grown in a high carbon way and we are now saying to poorer countries that they have to grow in a low carbon way. That is an unprecedented challenge of equity. It makes it all the more important that rich countries cut their emissions to allow space for poorer countries to develop. It also means, and I commend the Government for this, that it is right to be leading on development aid around climate change. That will enable countries to leapfrog the high carbon path and go to a low carbon path.
Let me take the opportunity to congratulate the hon. Gentleman on the role he plays in GLOBE International, which is an incredibly important organisation. My hon. Friend the Member for Brent North (Barry Gardiner) has also played a very important role in that organisation. By bringing legislators together, it plays a crucial role in building support for tackling climate change.
I want to end by making two observations. My first observation is about the process of what we might call summitry. Many people thought Copenhagen was a failure—I referred to it at the beginning of my speech—and that it did not achieve what we wanted. It certainly did not meet people’s expectations. The reality, however, is that it laid the groundwork for some of what we are seeing in Paris: a 2° commitment, the $100 billion of climate finance and the whole notion of bottom-up pledges.
Does my right hon. Friend accept that many people will look to Paris as a first test of whether the very worthy spirit of the sustainable development goals are truly the working ethic of international action? As this is the first generation that can eradicate extreme poverty and possibly the last generation that can address climate change, people want to see that ethic at Paris and to see it proven afterwards.
My second and final observation—we have already had a bit of to and fro on policy questions—is on cross-party consensus. It is worth making the point that we came together, as political parties, to pass the Climate Change Act in 2008. It is hard to remember this—I checked back and even I was surprised—but the Act passed by 463 votes to three. That is an extraordinary achievement. The Prime Minister and I have had our differences over the years, but I have to say that, as Leader of the Opposition, he did indeed break new ground by putting this front and centre. The extraordinary consensus that was built sent a message about the commitment of the parties across this House. That was important in Britain. It was also—I do not think this is British arrogance—important around the world, too, as it sent an international message. Since 2008, we have seen the Climate Change Act emulated in many countries. Parties across this House should be proud of what we achieved together.
The point, to which I referred earlier, that I would perhaps mostly direct towards the Secretary of State is that it is hard being the biggest fighter for tackling climate change in government. There are many competing pressures, but I know she is totally a believer on these issues. I think that part of her role, if I may suggest this, is to find ways of maintaining and strengthening that consensus. This is not just in relation to the policies, but for the idea that somehow a good economy and a good environment are not in contradiction, but that the two go together. The CBI has made huge advances on this issue.
There will, of course, be disagreements. There is, however, a basic set of assumptions: the science on climate change is real; we know that, as human beings, we are responsible for it; and we are conscious—this is crucial—that we have in our hands the ingenuity to tackle the problem and deal with it. Whatever party we are from, we care about our responsibilities to hold the planet in trust for future generations. Whatever party we are from, we know we will be held to account for the actions we take or do not take now. Whatever party we are from—this relates to what the hon. Member for Foyle (Mark Durkan) said in his intervention—our children will either see us as the last generation not to get climate change or the first generation to get it. That is why I believe we cannot afford to fail. I will be supporting the Secretary of State in getting the best possible agreement out of Paris.
Full debate: Paris Climate Change Conference
At the heart of the debate is the following question: how do we shape a just transition to a low-carbon economy? I believe that this transition is right and necessary, and I support the Government in their endeavours to make it happen, but a just transition means fairness to workers in affected industries. Hatfield’s early closure is not, in my view, just, fair or right.
I also want to use the debate to raise specific issues on which I hope the Minister can be of help. As I do so, I hope she will consider the context. Historically, we have asked the miners throughout our country to put themselves at some risk, in dangerous conditions, to help the rest of us to power our country. We therefore owe them a special duty of care. The miners at Hatfield were led to believe that they would have another 12 months of work and could therefore plan their futures. However, that situation changed in large part due to a Government decision. Inevitably, this chain of events leads to a deep sense of grievance against the Government. That grievance is compounded by the fact that the Treasury has benefited to the tune of £300 million from the high carbon tax. Our ask, therefore, is that the Government accept their share of responsibility and use a small part of the Treasury’s windfall gain to help the miners and their families. One option is to extend the life of the mine, but there are other things the Minister could do and I want to raise them with her.
Those are some specific asks about Hatfield that I put to the Minister, but I want to make a broader argument about Hatfield and the low-carbon transition and what we should learn from this episode. Coal is definitely a polluting fuel, and it is right that environmental standards are applied to it as part of the battle against climate change. That means that there is no viable future for unabated coal, but there is a future for clean coal technology through carbon capture and storage as part of our potential armoury in the transition to a low-carbon economy. [Interruption.] As my hon. Friend the Member for Easington (Grahame M. Morris) says, there are tens of thousands of jobs along with it.
However, the Government’s energy policy does not add up. There is a plan for a CCS plant at Drax by 2020. It will be burning coal, and it could be coal from Hatfield colliery, which is less than 20 miles from Drax. Yet it will not be: it will be coal imported from thousands of miles away, from Colombia or Russia, with all the associated environmental costs.
Projections from the Department for Energy and Climate Change say that by 2029 we are set to burn 26 million tonnes of coal or natural gas through CCS, but none of that will be from deep mines in the UK. I think people will look back on this and wonder how we got to this position. I would like the Minister to reflect in her reply on whether she believes that is a rational or sensible state of affairs and on what it says about the Government’s energy policy. I would like her to reflect, too, on how we got here.
The first CCS plant was due to be up and running by 2014. The last Labour Government committed to two to four CCS projects, and agreed a small levy to fund them. At the time, when I was the Secretary of State, I remember the Conservative Opposition criticised me—Oppositions tend to do this—for not being nearly bold enough. They said there should be four projects—never mind two to four—and asked why I was not getting on with it. What then happened is that the coalition Government came to power, dithered for two years and decided to scrap the previous Government’s plan and start all over again. As a result, as the Climate Change Committee noted in its report earlier this week, CCS will be up and running not by 2014 as projected, but by 2020.
That delay has been fatal for Hatfield and the other deep mines in our country. I say that not to score points, but because I hope the Minister will learn lessons for the future. My constituency has an interest in a gas-fired CCS project at Hatfield—the Don Valley project, which has secured European resources. Yesterday I met the director of Sargas Power, which owns the site and is now overseeing the project, and he emphasised above all the need for timely decision making by Ministers, so we cannot afford more dither and delay.
If we look at the history, we find that until 2007 there was no Government Department that even had “energy” in the title—and there had not been since 1992. Why was that? It was because the prevailing assumption had been that energy could be treated more or less like most other markets. Of course, that is all changed by climate change, because without serious intervention by the Government we will not make the low-carbon transition. Part of the incoherence of energy policy at the moment is that we are stuck in a halfway house where at times the Government pretend that this is a market-oriented system, when the truth is that in large part it is not any more.
There is another tension that the Government need to resolve. The Chancellor of the Exchequer, who drives so much of what the Government do, famously said, referring to climate change,
He has presented environmental progress and a strong economy as being in conflict, but in my opinion he is dead wrong. It is that view that has led to uncertainty, dither and ambiguity in the Government’s approach to the environment. We have seen that in the delays on CCS, and in the recent decision on onshore wind.
Full debate: Hatfield Colliery
Earlier this month, I met a group of talented young people at John Fisher and Thomas More Roman Catholic high school in Colne, who, through CAFOD, are helping to raise the profile of climate change. They have all made their own climate change pledges, which they presented to me. Will the Prime Minister say more about his discussions on energy policy and the prospects of our reaching a long-term agreement in Paris this December?
Full debate: European Council
On climate change, I agree with the Prime Minister on the welcome steps made by President Obama and President Xi last week on carbon emissions. I also welcome the agreement to support the climate fund that is designed to help with the effects of climate change. When will the UK announce our contribution to the climate fund, and will the Prime Minister explain why there has been a delay in doing so? What is being done to bring more sceptical countries with us for the ambitious agreement that we need at the vital talks in Paris next year?
On climate change, the right hon. Gentleman asks what is being done to persuade the sceptical countries. There is pressure on every country to bring forward its plans for the meeting in Paris, and that should include every country in the world. In terms of the climate fund, Britain has money available for climate funds—we were one of the first to put money to one side and make it available—but it is important this time to make sure that other countries are bringing in their donations. That has not always happened in the past, and I am glad that it is happening. The biggest breakthrough in recent days is the fact that China and America came to an agreement at the Asia-Pacific Economic Co-operation summit to put more on the table in terms of carbon emissions.
May I welcome what the Prime Minister said about additional funding for Ebola and the global attack on taxes? On climate change—on which Britain has been in the lead globally—can he indicate what Tony Abbott said Australia’s contribution would be?
We made some very clear promises in our manifesto that we would lift our aid budget to reach the long-term target of 0.7% of gross national income. We made that promise, and I think that breaking our promise to the poorest people in the world would not be the right thing to do. When I think about some of the problems we face here in our country—whether it be the pressure of asylum seekers or the pressure of immigration —I realise that our aid budget is, if not the answer, part of the answer. If we can solve some of the underlying problems of instability in some of these countries—sometimes instability can be caused by the effects of climate change, making it harder for some countries to feed their people—I think we are doing the right thing.
The Inter-governmental Panel on Climate Change has warned of the terrifying prospect of global warming nearly 5° above pre-industrial levels, which would spell not just catastrophic but irreversible climate change. Will the Prime Minister play his part in ensuring that the third great economic bloc in the world, the European Union, is as committed as the United States and China to sealing a global climate change deal in Paris next year?
Which Prime Minister showed up for the UK in the negotiations at the G20 on climate change—was it the Prime Minister who told the public that he wanted to hug a husky or the Prime Minister who tells his own right-wing Back Benchers that we ought to cut the “green crap”?
In implementing the summit’s call, which said that developments in green energy will support economic growth, will the Prime Minister concentrate not so much on nuclear, which is always billions over budget and years late, but on the vast resources that this country has in wind, wave and tide. All are green, clean and eternal.
I think we should do both. We need a balanced energy policy that draws our energy from many different sources. I am proud of the fact that we have in Britain the largest offshore wind market of any country anywhere in the world. The rate of investment in green technology and green energy has increased under this Government. It is worth while looking at the proposals for Swansea, in which the hon. Gentleman takes an interest. There are opportunities in these green technologies, and if they can be made to pay, we should use them.
G20 countries have agreed to set out their post-2020 policies on climate change ahead of next year’s Paris conference on climate change. Does the Prime Minister agree that the UK’s position in leading that conference would be stronger if he adopted a 2030 energy decarbonisation target now?
I do not think that is necessary. We, along with the rest of the European Union, have adopted robust measures to cut carbon, but I believe that the right policy is to cut carbon at the lowest cost. Signing up to a complete decarbonisation target before we know that measures such as carbon capture and storage will work would be the height of irresponsibility, and politicians who propose this, like the hon. Gentleman, need to be honest with the public. If we cannot answer the question about where the cheap energy will come from, total decarbonisation will put money on people’s bills.
Full debate: G20
The agreement of a new international framework for tackling climate change is very important, and the talks in Paris will be key to that, as will making good on the promise made in Copenhagen on climate finance for developing countries. Can the Prime Minister inform the House how the UK’s preparations for playing a part in that are going and assure us that he is working to secure timely contributions from the other G7 members, because we have tended to be at the front of the pack on this, while others have been less so.
On climate change, the right hon. Gentleman is right that Britain and the EU can play a leading role in helping to achieve a deal. We need to make sure that the EU has the political will to get to the right position on this. That should happen in September, and there will be important discussions between now and then to make sure that it happens.
I welcome the Prime Minister’s words on climate change, but he will know that there was considerable disappointment that not one G7 member managed to send a Minister to the Bonn United Nations framework convention on climate change meeting last week. Will the Prime Minister confirm that he intends to attend the Ban Ki-moon summit later in the year?
Full debate: G7
We welcome the steps that were agreed in efforts to complete the internal energy market, to improve the energy flow across the continent, to strengthen EU tax rules on the exchange of information, and on nuclear proliferation. On climate change, I agree with the Prime Minister on the importance of the EU reaching agreement, if possible in advance of the UN climate leaders summit in September. The EU has shown leadership on this issue before. Some countries in the EU have doubts about the strength of the 40% target, but it is a target that we support and I know he supports, and he will have our support in pushing for maximum ambition on this issue.
On climate change, we agree that we need an agreement for the 40% reduction in carbon emissions. I think it will be achieved later in the year. We have to engage with the Polish Government and others. They do have an understandable concern, which is that if we are trying to control carbon and restrict supplies of Russian gas, that could lead to some countries burning coal. That does not help on the climate change front, and we need to work with them to find a solution.
I do not believe that would be the case. I made sure that somewhere in the EU Council conclusions it says very clearly that the energy mix that a country pursues is a matter for the country concerned. Obviously, we did not spend as much time on energy and climate change policy as we might have expected to, but I am very clear that, while it is one thing to have an EU goal for another renewable target, that should not be translated into national goals. These are important matters of domestic sovereignty and it is in our national interest to work with other European countries to make the whole of the European continent less reliant on Russian gas and have a more flexible energy market.
I very much welcome the Prime Minister’s expression of full support for the 40% emissions reduction target, but notwithstanding the important issue of sovereignty, the UK should really lead by example. Why will he not endorse the target of decarbonising our UK energy sector by 2030, given that a commitment to that target would give industry the certainty that it needs to invest?
The reason why I do not support total decarbonisation of our energy sector— [ Interruption. ] —our electricity sector is that until we can prove that carbon capture and storage is a workable and deliverable technology, setting such a target could mean the closure of every gas-fired power station in the country, which is not a sensible approach. I know the green movement pushes this, but, frankly, until we have worked out carbon capture and storage properly, it would not be a sensible thing to do.
I welcome the Prime Minister’s statement and the answer that he gave earlier that related to my constituency. Away from diplomatic processes and soft power, our efforts on nuclear security must be underpinned by an effective plutonium disposition strategy. We have the potential to lead the world in that regard. To that end, will the Prime Minister commit to funding fully and commissioning the National Nuclear Laboratory, and will he commit to a timeline so that the plutonium that is stored in my constituency, which I believe is the biggest stockpile in the world, can be utilised as nuclear fuel, thereby helping us to meet our non-proliferation objectives, secure our energy supplies and fight climate change?
The Prime Minister is right that getting the EU to speak with one voice on decarbonisation going into next year’s Paris meeting is hugely important. Does he accept that it will be deeply problematic if we fail to get a deal at this point, before the make-up of the European Parliament changes and before the trade and other Commissioners change?
Well, it was a lot more generous than anything my predecessor ever said about anything done by any previous Government. For once, silence. Yesterday I worked very hard with Hull city council, and local MPs. We do not have to talk too much about renewable energy today because Britain has the biggest offshore wind market anywhere in the world, and we should be proud of that. We do not have the largest shale gas market anywhere in the world; indeed, we have barely started. I give so much emphasis to shale gas because I think it can be an important part of our future, and I am sure that that will have all-party support.
Full debate: European Council and Nuclear Security Summit
As the immediate threat of floods passes, there are still thousands out of their homes; parts of the Somerset levels are still under water; and hundreds of businesses and farms are still struggling to recover. The Committee on Climate Change, the House of Commons Library and the UK Statistics Authority have all now said that Government investment in flood defences has fallen. In the light of this and of the events we have seen, does the Prime Minister think it is right to revisit the plans for investment in flood defences?
Full debate: Oral Answers to Questions
First, let me say to the Prime Minister that if it is a simple choice between the UK Statistics Authority and him, people will believe the UK Statistics Authority on what has happened. The assessment of how much to invest in flood defence depends significantly on an assessment of the risks posed by man-made climate change. In opposition, he said this about climate change:
“but it’s only clear you mean it when you do the tough things as well. Like telling the truth about climate change.”
So what is the truth about climate change?
Full debate: Oral Answers to Questions
What total nonsense, and the Prime Minister knows it. It is very interesting, because someone who in opposition wanted to talk as much as he could about climate change is now desperate to get off the subject. I asked him a question: will he just set out for his party and for the country his views on man-made climate change?
Full debate: Oral Answers to Questions
Excellent; we are getting somewhere. I agree with what the Prime Minister said about the importance of climate change. The reason this matters is that people in the most important positions in his Government are going around questioning climate change. The Secretary of State for Environment, Food and Rural Affairs has said:
and he refuses to be briefed on climate change. The Minister of State, Department of Energy and Climate Change, the right hon. Member for Sevenoaks (Michael Fallon), when asked about climate change, said:
“You are not going to draw me on that. I’ve not had time to get into the…climate change debate.”
That is the Energy Minister! Will the Prime Minister clarify his position? Is he happy to have climate change deniers in his Government?
Full debate: Oral Answers to Questions
The whole country will have heard that the Prime Minister cannot answer the question about whether people need to believe in man-made climate change to be part of his Government. He has gone from thinking that it was a basic part of his credo to thinking that it is a matter of individual conscience. He used to claim that it was his passion above all else. Here’s the thing: if we are properly to protect— [ Interruption. ]
Full debate: Oral Answers to Questions
Here’s the thing: if we are properly to protect the British people against the threats that they face, we cannot have doubt and confusion in the Government on the issue of climate change. The Prime Minister needs to rediscover the courage of his past convictions and tell his party to get real on climate change.
Full debate: Oral Answers to Questions
Similarly, on the issue of spending on flood defence, the Committee on Climate Change says that we are spending significantly less on flood defence than we should. My question is a simple one: given yesterday’s promise to make sure that we have a
Full debate: Oral Answers to Questions
The simple point that I am making to him is that there are real doubts about that when it comes to making members of the Environment Agency who deal with flooding redundant and the Committee on Climate Change—the expert body that is charged with this—says that the investment in flood defences is not happening. He needs to reconsider those things.
Full debate: Oral Answers to Questions
I have to say to the Prime Minister that the figures actually show that investment by the Government has fallen not risen over the period, but the reality is that the scale of the challenge we face from climate change and floods demands that we have that comprehensive look at the investment that is required. I am glad that the Prime Minister has said the Environment Secretary will come to the House tomorrow.
Full debate: Oral Answers to Questions
Given the scale of risk exposed by these floods and the expected impact of climate change, will the Prime Minister also commit to the Department for Environment, Food and Rural Affairs providing a report by the end of this month, providing a full assessment of the future capability of our flood defences and flood response agencies and of whether the investment plans in place are equal to the need for events of this kind?
Full debate: Oral Answers to Questions
In the wake of the disaster in the Philippines, our leading aid agencies have said that the increased frequency and intensity of extreme weather events should act as a wake-up call for the international community to do a lot more on climate change. Does the Prime Minister agree, and what does he intend to do?
I do agree that climate change presents huge dangers for our planet. There is a strong case for saying that there are connections between unusual weather events and the climate change that is taking place. That is why it is important to keep the issue high up the international agenda. At the Commonwealth conference I was able to raise the fact of the international climate fund, to which Britain has made a significant contribution, and how it should be helping these countries. The Commonwealth is a good place to make the point because many members are very vulnerable small island states for whom climate change is literally an existential challenge.
It is obviously quite difficult to take a lead at a conference if one does not attend, which of course is what Members on the hon. Gentleman’s Front Bench were suggesting. In my contribution I talked about the importance of integrating our goals on climate change into our general approach to tackling poverty. I made the point that, with so many small island states in the Commonwealth that are so vulnerable, this is an existential issue for them and we should support them, including through the international climate fund, which is exactly what we are doing.
Full debate: Commonwealth Meeting and the Philippines
If the right hon. Gentleman wants to talk about what people are saying, his own former Tory Environment Secretary, the man he put in charge of the Climate Change Committee, says his figures are false. That is what he says. Instead of having a review, the right hon. Gentleman has an opportunity to do something for the public next week. He has an Energy Bill going through Parliament. Instead of sitting on his hands, he could amend that Bill to institute a price freeze now. We will support a price freeze: why does he not act?
Full debate: Oral Answers to Questions
Those issues are addressed in the summit communiqué, which points to some progress on important areas such as climate change. Also, the high-level panel that I chaired has at its heart the idea of sustainable development being the way that we increase the world’s resources. As I say, the focus of the meeting was largely around the rules of the global economy, but if the hon. Lady looks at the communiqué, she will see that there is further progress on the issues she raises.
Full debate: G20
She was right. In foreign policy, she was right to defend the Falklands and bravely reach out to new leadership in the Soviet Union, and something often forgotten is that she was the first political leader in any major country to warn of the dangers of climate change, long before anyone thought of hugging a husky.
Full debate: Tributes to Baroness Thatcher
I will give way to the right hon. Gentleman. Perhaps he will say that because he wants to do good things at the Department of Energy and Climate Change—I do not doubt his good intentions—it was worth paying the price of supporting a Budget that he would have opposed before the election. That is the reality of the situation.
The grant to Sheffield Forgemasters would have given us the ability to make key components for the nuclear industry that currently have to be sourced from outside Britain, but the Government have turned their back on it. The Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), who is in the Chamber, is an honourable guy whom I respect, because he supports nuclear power—that is slightly complicated given his Secretary of State—but during a debate on Tuesday, he said about Sheffield Forgemasters:
That is not a very good start, but I want to reassure the Secretary of State by telling him that there is praise for the Budget from an unlikely quarter. Roger Helmer, a Conservative MEP and a well known climate change denier, quite likes the Budget and says:
The doublespeak just gets worse. The Conservatives spend the election attacking the Labour Government for putting up national insurance contributions on employees, then they produce their own Budget which is regressive and unfair, then they realise that that will be pretty damaging for them, so they take credit for a measure that they used to attack. That cannot possibly make sense. The truth is that the Chancellor made a claim in his Budget speech that the Budget was progressive. The Institute for Fiscal Studies, to which the Chancellor referred in his Budget speech, has said clearly that if one looks at the measures announced in the Budget one sees that it is a regressive Budget—and not just regressive, but deeply regressive, because the poorest 10% pay three and a half times more than the richest 10%. However much they may twist and turn with the help of their new friend, the Secretary of State for Energy and Climate Change, who is auditioning to be a member of the Conservative party, it will not help them. People can smell it. People can see through the doublespeak.
I am coming to them in a minute. That has been the case historically, but the difference this time is that the Liberal Democrats are faced with a choice. The hon. Member for Bermondsey and Old Southwark—someone I respect; a person of good conscience who came into politics to make our country fairer—has a big decision to make. He is not going to fall for the stuff we have heard from the Secretary of State for Energy and Climate Change, trying to explain away the Budget.
Full debate: Budget Resolutions and Economic Situation
Yes, I can give that assurance. I thank my hon. Friend for his championing of these issues. Over the past 18 months or two years, we have seen an increasing understanding of the reality of the connection between tackling climate change and green jobs in this country. We have seen that with announcements on the offshore wind industry, electric cars and a whole host of other matters. He is right that Government support for private sector business is essential in this area.
Full debate: Oral Answers to Questions
I thank the hon. Gentleman for the first part of his question, but I profoundly disagree with the second part of his question. When we look at the scale of the task in terms of low-carbon energy, we have very ambitious targets on renewables—approximately a sixfold increase in renewable energy by 2020—and nuclear must be part of the energy mix. We need to move on all fronts—nuclear, renewables and clean coal—because the scale of the challenge of cutting carbon emissions by 80 per cent. by 2050 is so enormous that we need every form of low-carbon energy.
Full debate: Oral Answers to Questions
Let me start by saying that I have also enjoyed our exchanges. The hon. Gentleman shadowed me when I was the Minister for the Third Sector and since then when I have been Secretary of State for Energy and Climate change. I look forward to him continuing to shadow me in his present post after the general election.
Full debate: Oral Answers to Questions
The hon. Gentleman raises an important point. We do want to move to the 30 per cent. target for Europe as part of an ambitious global deal. I also agree with his remarks about the UN, and there is an opportunity to upgrade the UN post in charge of the UN framework convention on climate change. As for the hon. Gentleman’s other point, I was shocked to read in the Financial Times that only a handful of the 206 Conservative candidates who were contacted accepted the unequivocal reality of man-made climate change. That shows the stakes in respect of climate change at this election.
Full debate: Oral Answers to Questions
My right hon. Friend is completely right about these issues, and about the importance of showing that we here at home are moving forward as part of getting the ambitious global deal that we need. That commitment to the 15 per cent. renewable energy target is very important. It is also important that we transmit the learning here to other countries so that they can move forward. This is therefore about UK and European commitment as part of an ambitious global deal.
Full debate: Oral Answers to Questions
I will not say, “Thank you.” The reality of the Conservative party’s record in this Parliament on climate change is that it began with the stunt with the huskies, initiated by the hon. Member for Bexhill and Battle (Gregory Barker), and it ends with the Leader of the Opposition saying, “Here are 10 reasons to vote Conservative,” and not one of them is about climate change. We find out that Conservative candidates have not changed; they do not believe in man-made climate change. So the truth is that we have a whole range of stunts but an unchanged Conservative party, on this issue and every other issue at this general election.
Full debate: Oral Answers to Questions
The hon. Gentleman has clearly learned nothing during his time as shadow Secretary of State. A list of policies does not make a strategy, and image does not make substance. That is the truth about the Conservative party. Why would the Conservatives put the green transition in this country at risk? For example, they oppose renewables the length and breadth of this country. They oppose the progress that is being made. The difference between the Labour party, and the Labour Government, and the Conservative party is that we have conviction about tackling climate change while it is all about image and detoxifying the brand.
Full debate: Oral Answers to Questions
Over the past 18 months, my Department has set a new plan to cut greenhouse gas emissions by 80 per cent. by 2050; published low carbon transition plan sector by sector for our country; produced a comprehensive plan to help households go green; introduced feed-in tariffs; as well as passing through this House a levy for clean coal. We look forward to continuing our work into the next Parliament.
Full debate: Oral Answers to Questions
I think that perhaps people were being over-protective; if I had known, I would have been happy to answer the question, and I am glad that the hon. Gentleman has had the opportunity to ask it now. He raises the important issue of the impact that climate change can have on our natural environment and biodiversity. Conservative Members complain about wind turbines, but the bigger threat to the countryside is climate change—that is what could have a real impact on our countryside. I am glad that the hon. Gentleman got to ask his question and I agree with the intention behind it.
Full debate: Oral Answers to Questions
The right hon. Gentleman makes an important point. As I recall, there were only five votes against the Climate Change Bill when it went through the House. If those Conservative candidates are successful, there will be less of a consensus on the issue in the House than we had at that time. That is why we need to maintain the consensus and convince everyone around the country that climate change is real, happening and man made.
Full debate: Oral Answers to Questions
We will miss my hon. Friend, who raises an important issue. Last week, my right hon. Friend the Prime Minister held the first meeting of the high-level panel set up under the Copenhagen accord and set out how we can find $100 billion a year by 2020 to help people in the developing world not just with adaptation to climate change but with mitigation. That speaks to the issues of justice that my hon. Friend asked about and has fought for in the House.
Full debate: Oral Answers to Questions
On 31 March I published “Beyond Copenhagen: The UK Government’s International Climate Change Plan” (Cm 7850), setting out the key elements of UK strategy leading up to COP16 in Mexico and beyond.
The strategy reflects the fact there is much unfinished business following the outcome of the Copenhagen climate talks in December 2009. The conference made significant progress in some areas, but did not live up to our expectations, or those of many countries round the world.
The main achievement at Copenhagen was agreement of the accord. The accord includes commitments to limit global temperature increases to no more than 2° Celsius, to climate finance approaching $30 billion fast-start finance to 2012 with a long-term goal of $100 billion a year by 2020 and for the first time provides a common international framework that includes all the world’s major economies. Since the summit more than 70 countries (accounting for around 80 per cent. of global emissions) have put forward mitigation targets and actions which, if they deliver at the high end of their ambitions, would be consistent with global emissions peaking before 2020, an important step towards achieving an emissions trajectory consistent with 2°.
The document affirms the importance of delivering against the commitments made in the accord. This includes commitments on emissions reductions, forestry, measurement, reporting and verification and on finance. It highlights the importance both of getting fast-start finance flowing and also of the work of the UN Secretary-General’s high-level advisory group on climate finance, co-chaired by the Prime Minister and Prime Minister Meles of Ethiopia.
The Government continue to believe that this action has to be backed by a comprehensive legally binding agreement. The UK wants to see progress in the United Nations framework convention on climate change (UNFCCC) negotiations towards a legally binding agreement, with progress under the Copenhagen accord built on in the formal negotiations. To ease that process we signal that we would agree to an appropriately designed second Kyoto commitment period provided others enter into a comparable legally binding arrangements.
Full debate: Beyond Copenhagen (International Climate Change Plan)
Improving domestic energy efficiency helps people to make their homes more comfortable, to save money on their energy bills and to reduce greenhouse gas emissions. This strategy sets out a comprehensive approach to helping people do that across all tenure types.
The strategy will deliver greenhouse gas emissions savings of at least 4 million tonnes of CO 2 per annum by 2020, ensuring the UK hits its target of cutting emissions from households by 29 per cent. by 2020.
The strategy sets out our commitment to support people to install cavity wall and loft insulation in every home where practical to do so by 2015, while increasing the volumes of more significant insulation measures. We will help people to install eco-upgrades to their homes—which go beyond basic measures to include solid wall insulation and/or micro-renewable energy generation—in up to 7 million homes by 2020, on the way to ensuring that all homes have benefited from energy efficiency measures by 2030. There will be particular support for vulnerable groups.
Full debate: Household Energy Management
I congratulate the hon. Gentleman on his just-in-time questioning. He raises an important issue. Clearly, mistakes have been made, and it is important that those are looked at and that the Intergovernmental Panel on Climate Change looks at its procedures. I have written to Dr. Pachauri to emphasise our support for the organisation, but also our wish that it looks at its procedures to try to eliminate such errors. The overall picture is very clear: climate change is happening, it is real, and it is man-made. It is very important to say that.
Full debate: Oral Answers to Questions
The hon. Gentleman makes a point that is central to this debate. We need to be open about the fact that there are costs to acting on climate change, but we know that the costs of not acting would be greater. That central conclusion of the Stern report is important in shaping the climate change debate, and he is right that we should emphasise it.
Full debate: Oral Answers to Questions
No, we will not. Here we see what people worry about in relation to the Conservative party: an unchanged party, with people saying that climate change does not exist and that we should not go ahead with onshore wind. So no, Labour will not follow the hon. Lady’s advice.
Full debate: Oral Answers to Questions
I expect to announce shortly which consortia will be selected following detailed scrutiny to undertake the tens of millions of pounds-worth of work for the front-end engineering and design for the first CCS demonstration project, the necessary work prior to construction. Later this year, we will also open the competition for the three other projects, to be funded under the CCS Incentive. The latter is, of course, dependent on the successful passage of the Energy Bill.
Full debate: Carbon Capture and Storage
I thank Members for their contributions since Second Reading. I particularly thank the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Lewisham, Deptford (Joan Ruddock)—who has done such a fantastic job in leading our work on the Bill—and the Under-Secretary of State for Energy and Climate Change, my hon. Friend the Member for Stafford (Mr. Kidney), for their able steering of the legislation. I also thank my hon. Friends, and Opposition spokespeople and Back Benchers, for their contributions.
The work that has been done has helped to strengthen the Bill in a number of respects. It has helped in relation to the scope of the CCS incentive, the reporting of progress towards decarbonising our electricity supply, and consumer protection. The relatively speedy passage of the Bill has been due partly to the able work done in Committee, and partly because it was designed as a short Bill that could make swift progress before a general election. Our task now is to send the Bill to the other place so that it can make further progress.
The first and most important part of the Bill from Labour’s point of view relates to the CCS incentive. However, we are aware that the low-carbon transition involves costs, and it is important for us to take all the action we can to protect consumers from those costs. There have been significant advances recently, such as those for people on prepayment meters; a number of Members have raised that matter in the House. A year ago, people on prepayment meters paid £41 more for their energy than standard credit customers; today that differential has, effectively, been eliminated.
It is a short Bill, but it puts in place important measures in respect of the transition to low carbon. The CCS levy delivers an unprecedented amount of investment, not just in Britain but around the world, into CCS, which is a crucial technology for the future. The strengthening of the powers of the regulator is essential moving forward, as we face upward pressures on prices. There is also specific support for the most vulnerable.
Full debate: Energy Bill
I have been very enthusiastic about the Secretary of State’s comments on carbon capture and the development that is essential in that area, but so far—I may be anticipating him—he has not said anything about onshore wind farms. He knows that the Under-Secretary of State for Energy and Climate Change, the hon. Member for Stafford (Mr. Kidney), who is sitting next to him on the Front Bench, and I have a boundary issue regarding several onshore wind farms, and there is deep opposition to them. Will the Secretary of State therefore be good enough to explain why Severn Trent, for example, is encouraged to develop onshore wind farms simply because it happens to own land—irrespective of either the amount of wind or the location of those projects? Will he get that policy right and stop promoting those ridiculous onshore farms?
I agree with my hon. Friend. The European supergrid is an exciting prospect that will obviously require co-operation in Europe—as well as sitting in the European Parliament with people who tend to believe that climate change is real and happening, rather than those who do not.
Full debate: Energy Security
We are currently evaluating two bids to select, which will receive funding from the £90 million set aside for the front-end engineering and design stage, with the result to be announced shortly. This is one of the four demonstration projects to which we are committed, funded by the levy for carbon capture and storage under the Energy Bill, which will ensure the largest investment in CCS of any country in the world.
Full debate: Oral Answers to Questions
This is a line that the Opposition like to peddle, but it is absolutely untrue. One need only look at what has happened since 2007. We have had the pre-qualification phase and the application phase for these projects. Hundreds of pages of applications have come into our Department and are being scrutinised, as one would expect in any procurement project. We have a CCS levy before this House; we have agreement in Europe for up to 12 demonstration projects, pushed by the United Kingdom; we have a commitment in this country to four demonstration projects, which we have not had before; and we have legislation in the Energy Bill for the storage of carbon dioxide from CCS projects. We are making progress. Indeed, there is as yet no post-combustion project in the world on the scale that we are talking about in this country.
Full debate: Oral Answers to Questions
We now see the Conservative party trying to play politics with international climate change—exactly what happened on Tuesday, in response to my statement—which is deeply regrettable. We are working in the European Union to deal with the problem of illegal logging, but we will also look at any other proposal that is put forward.
Full debate: Oral Answers to Questions
My hon. Friend draws attention to an important issue. Over the coming months we will need to work to use the EU’s commitment to move from 20 to 30 per cent., to lever in higher ambition from others. The commitment that the EU has made is an important one. I will be working intensively in the coming weeks, before the 31 January deadline for commitments to be lodged in the Copenhagen accord, to see how far we can get in Europe on that commitment. We have existing advice from the Climate Change Committee on the costs and benefits of moving to a higher figure—and in fact, as a result of the recession, the costs of doing so have fallen.
Full debate: Oral Answers to Questions
The International Energy Agency estimates that carbon capture and storage could contribute up to 20 per cent. of the cuts needed in greenhouse gases by 2050. Without CCS, the cost of emission reduction needed to meet climate change targets globally would increase by more than 70 per cent. The four demonstration projects we are planning and those around the world will provide more information on the effectiveness of the technology.
Full debate: Oral Answers to Questions
My hon. Friend is absolutely right to say that the private sector can play a role in this, but the risks relating to this new technology—and, indeed, the gains—do not justify one company making the kind of investment required. That is why we are introducing the carbon capture and storage levy, which will provide a stream of funding for CCS over the next two decades. It is the largest such investment in the world.
Full debate: Oral Answers to Questions
I am always enthusiastic, as one of my hon. Friends has just helpfully pointed out. We should look at all the technologies that exist. I pay tribute to the hon. Gentleman, because he, among others in the House, is a great advocate of carbon capture and storage and the role that it can play. Britain is uniquely placed in relation to CCS because of the North sea.
Full debate: Oral Answers to Questions
We are planning four demonstration projects funded by the CCS levy. We have also successfully argued for money to be set aside for up to 10 demonstration projects across Europe, and we are working with countries across the world on moving forward CCS technology.
Full debate: Oral Answers to Questions
My hon. Friend is absolutely right—across all regions there are opportunities relating to low carbon and, in a number of regions, relating to carbon capture and storage. We shall shortly look at where the CCS clusters can be, and how we can take proper industrial advantage of CCS. Estimates suggest that tens of thousands of jobs could be created in this area.
Full debate: Oral Answers to Questions
On the question of the third runway, I hope that the hon. Gentleman has seen the report from the Committee on Climate Change, which shows that we have a clear target for carbon emissions from aviation and explains how it can be accommodated within constrained demand from aviation. Our policy is not one of unconstrained demand, but nor does it assume that we will somehow freeze the amount of flying that people do. That is not realistic, and it would not be good for our economy. It would not be good for our society either, because many more people are emigrating to this country and will want to travel for business and other purposes.
Full debate: Oral Answers to Questions
My right hon. Friend, who has been a great fighter for the co-operative movement, is entirely right. Community ownership plays a very important role. The feed-in tariff will also help to encourage communities to come forward with their own proposals for renewable energy.
Full debate: Oral Answers to Questions
I pay tribute to the community my hon. Friend represents and to the people of St. Margaret’s for what they are doing. The low-carbon communities challenge has been a great success in terms of the number of applications received, and we want to help as many communities as possible to be trailblazers for low carbon, showing how the transition to it can make a difference to people’s lives through the introduction of smart meters, insulation, renewable energy and a whole range of other measures. All this is part of the positive vision that we must offer for tackling climate change.
Full debate: Oral Answers to Questions
From memory, I think we have said that by 2020 the climate change policies will add about 8 per cent. as a whole to energy bills. I say to the hon. Gentleman, however, that there is no high-carbon, low-cost future out there, because the truth is that if we want to have secure energy, we also need low-carbon energy—renewable and nuclear energy. So, yes, there are upward pressures on energy bills, and that makes life difficult for people, including those in fuel poverty, but it is right that we go down the low-carbon energy route. However, it is also right that we take measures to protect the most vulnerable.
Full debate: Oral Answers to Questions
The hon. Gentleman raises an important issue. One of the things we are doing is a mapping exercise across the country to see which are the most appropriate areas for wind farms; that will help local authorities. I applaud local authorities that embrace renewable energy—those that say no to it everywhere are doing the wrong thing—but of course, local authorities need to be able to take decisions about the most appropriate places for wind energy facilities, and indeed they do.
Full debate: Oral Answers to Questions
With permission, Mr. Speaker, I would like to make a statement about December’s Copenhagen climate change conference, at which I represented the United Kingdom alongside my right hon. Friend the Prime Minister. Today I want to report back to the House and set out where we go next in the global battle against climate change.
The Copenhagen accord, which is available in the Library, was agreed by a group representing 49 developed and developing countries that together account for more than 80 per cent. of global emissions. The key points of the accord are as follows. It endorses the limit of 2° C in warming as the benchmark for global progress on climate change. Unlike with every previous agreement, not just developed, but all leading developing countries have agreed to make specific commitments to tackling emissions, to be lodged in the agreement by 31 January.
We also welcome the decision by Chancellor Merkel to host a conference as part of the mid-year negotiations in Bonn, and we will work with the incoming Mexican presidency, which will be hosting the next conference in November. But dialogue and negotiations need to restart before June—something I made clear to Yvo de Boer, the executive secretary of the convention on climate change when I met him in London just before Christmas.
I want to pay tribute in particular to the enormous effort of those in the UK, from the scientific community, civil society, British business and the general public, who have mobilised on climate change. Their ideas and energy helped to drive us forward over the past 12 months and during the Copenhagen conference itself. Let me assure them and the House that we are determined to strengthen and sustain the momentum behind the low-carbon transition in the UK. Building on our low-carbon transition plan, our world-leading policy on coal and our plans for nuclear, we will be making further announcements in the coming weeks and months on energy generation, household energy efficiency and transport. Following Copenhagen, as part of the work already ongoing on the road map to 2050, we are looking at whether further action is necessary to meet our low-carbon obligations, and we will report back by the time of the Budget. This will include looking at the advice of the Committee on Climate Change published last autumn.
Internationally, thanks in large part to the deadline of Copenhagen and the mobilisation behind it, every major economy of the world now has domestic policy goals and commitments to limit its greenhouse gas emissions, including the United States, China, Japan, Russia, Brazil, India, Indonesia, South Korea, Mexico, South Africa and, of course, the EU. Throughout the world, policy is now set to improve energy efficiency, to increase investment in low-carbon power, to develop hybrid and electric vehicles and smart grids, and to reduce deforestation.
So although Copenhagen did not meet our expectations, 2009 did see the start of a new chapter in tackling climate change across the world. This global shift might not yet have found international legal form, but scientific evidence, public opinion and business opportunity have made it irreversible. In 2010 and in the years ahead, this Government—and, I am sure, the vast majority in this House—are determined to ensure that we redouble our efforts to complete the unfinished business of Copenhagen.
Climate change remains the biggest global challenge to humankind, and it requires a global solution. We owe it to our children, their children and the generations to come to find it. The work has started, it will continue this year, and I believe that it will succeed. The fight against climate change will be won. I commend this statement to the House.
I thank the Secretary of State for giving me advance sight of his statement, and for the briefing that he kindly gave me in advance of the Copenhagen summit. It is disappointing that the Prime Minister is not making this statement, however. He missed questions in the House in order to go to Copenhagen early, and it is surprising that he has chosen not to report to the House on what he accomplished there. The Secretary of State and I share the view that we need to see global action on climate change. If Copenhagen showed one thing, it was that the discussions should not end there, and that they must continue.
Before Copenhagen, we said that a rigorous deal should achieve three things. The first was a commitment to limiting warming to 2° C. The second was a clear focus on adapting to climate change and on finding a dependable mechanism to finance that. The third was urgent action to preserve the rain forests. On the first, the 2° C proposal was noted, as the Secretary of State said, but the accord is completely unclear about when emissions should be cut, and by how much. On the second, it is welcome that adaptation was so prominent in the discussions, but there is no clarity on the sources of finance. On the rain forests, there was once again discussion of the issue, but nothing that could be meaningfully described as a political deal, let alone a legal framework. By any objective assessment, therefore, Copenhagen was a flop.
In other words, the implication is that attacking climate change ranks, for them, below these priorities.
This revealed preference on the part of India, China and other parts of the developing world cannot simply be overlooked or assumed away. The People’s Daily reported that the Chinese Government would treat talks in 2010 on a binding global deal as a struggle over “the right to develop”. Does the right hon. Gentleman agree with me that the central issue is now how cutting current and future emissions can be shown to be compatible with development? Does he agree that for developed and developing countries alike, becoming less dependent on fossil fuels, using energy more productively and damaging the environment less is a pathway that can enhance the prospects for economic development, for prosperity through trade and for the reduction of poverty? If he does, will he accept that we now urgently need a new politics of climate change—one that can convince both around the negotiating table, as it failed to do in Copenhagen, and in the court of public opinion that the action we must take to guarantee the stability of the climate in the long term is also in the interests of both rich and poor in the short term?
I am all for slogans about the need for a new politics of climate change and all that, although I will have to talk to the hon. Gentleman at some point about what that means. I think it best to build on the progress made at Copenhagen—although it was disappointing—and, more important, the progress made over the last year, and to use the opportunities that we shall have in the coming year to secure the agreement that we did not secure at Copenhagen.
I attended the Copenhagen conference in my capacity as the Council of Europe’s rapporteur on climate change. May I offer my congratulations to my right hon. Friend and the Prime Minister—as did many people at Copenhagen—on the leading role that they played in bringing about the Copenhagen accord? The Opposition clearly do not understand that, as at Kyoto, an agreement was reached in principle and the details will come later during years of negotiations. That is called the process of the United Nations. We did not secure a legal UN agreement because—as the House knows, and as I have constantly said—it was never possible to secure a legally binding agreement at Copenhagen. The matter will be decided in the negotiations.
Lastly, rather than what has been suggested in some of the post-Copenhagen comments in the British press—that measures on climate change response and emissions targets will make us uncompetitive in a competitive world—will the Government make it clear, as I know that the Secretary of State is committed to doing, that unless we get an agreement that binds everybody, we will miss the chance to have a sustainable future for all countries, not just ours? We will also miss the chance to have the sustainable jobs and sustainable, safe and secure energy on which the security of the world depends.
I, too, was in Copenhagen, and it seemed to me that one issue behind the problems that emerged from the conference was the concern about where the relevant finance should come from and go to. The Government have rightly said that not more than 10 per cent. of our official development assistance budgets would be spent on climate change finance, but may I press my right hon. Friend to go further? Will he make a commitment that that 10 per cent. will not make up the whole of our climate change finance? Perhaps it should not, at any point, make up more than 10 per cent. of our total climate change finance. The people of Bangladesh want to know that we are not simply robbing Peter to pay Paul.
The Secretary of State was right to say that the meeting was disappointing, and that is fundamentally because we do not have the confident arrangements in the world that would enable business, countries and companies to make decisions to promote mechanisms to reduce emissions. Britain’s leadership in the industrial revolution means that we are responsible for a good deal of the climate change that is happening at the moment, so does the right hon. Gentleman accept that this is the moment for us to firm up on the commitments that we have made to green technology and a green future? Europe is also very responsible for today’s problems, so should not Britain take the lead in ensuring that Europe firms up on its 30 per cent. pledge? More than that, should we not seek to create, as far as possible, the most encouraging atmosphere for business to do what it has to do? The leadership of business is crucial in this matter.
Let me take this opportunity to say that I know that the right hon. Gentleman has announced that he is leaving this House. We will miss his expertise and passion on these issues of climate change, and we wish him well in what he does next.
I can hardly believe that question, Mr. Deputy Speaker. The weather fluctuates, as anyone knows, and the notion that a cold spell in Britain disproves the science of climate change is something that I believe not even the right hon. Gentleman believes.
The hon. Gentleman speaks with authority on these issues. China has moved some distance in the past two years on climate change. The very notion of a target—it set out a target of 40 to 45 per cent. reductions in carbon intensity—is important. We look forward to seeing what it lodges as part of the agreement on 31 January. We face a continuing effort, and we are determined to continue with it, to persuade China that a legal undertaking should give it confidence about others meeting their commitments, and that it will not face the constraints on growth and development that it fears. That is part of the persuasion that we need.
The new coalition that was evident at Copenhagen between the developing countries that are particularly vulnerable to climate change—I mentioned Ethiopia and the Maldives, but there were others including other small island states and African countries—is important. That coalition wants a legal agreement. We need to find ways in which that voice can be heard and to persuade others who are more reluctant that it is the right way to go.
My right hon. Friend will be aware that we are trying to establish what will probably be the largest carbon capture and storage project in Hatfield colliery in Doncaster in his constituency by 2015. How important is the achievement of that goal to the future economy of Yorkshire and to meeting our obligations under the climate change agenda?
I thank my hon. Friend for that question. It is very important that we make progress on carbon capture and storage, including in Yorkshire, where there are exciting plans to move forward on that process. It is also worth saying that internationally many countries are moving towards carbon capture and storage. Again, that is a change we have seen over the past couple of years; countries understand the importance CCS will play and the importance of making coal a clean fuel of the future.
Like my right hon. Friend, I believe that the challenge that faces mankind is climate change, and I commend him for his work in Copenhagen. There is an enormous distance in moving from an accord to a legally binding agreement. How does my right hon. Friend see the development of steps towards that legally binding agreement? Although the UN is involved in a very positive way, there is still a need to keep that momentum. What steps does he see being taken to keep up the momentum towards a legally binding agreement?
Despite the Secretary of State’s best efforts, the failure of Copenhagen surely increases the risk that an international legally binding agreement to prevent climate change may never happen. Given that risk, at what point do the Government reprioritise efforts to adapt to climate change, rather than trying to prevent it?
No, I do not think that I should give the impression that it was a problem of process. At a meeting early on in the negotiations, I said that every country faced compelling constraints that inhibited action on climate change. If there is a reason why we did not reach the agreement that we wanted, it is that every country faced those compelling constraints and we could not overcome them sufficiently. It was not an accident and there was no question, simply, of a badly organised meeting. There are difficult issues, but I come back to this point: the past year has shown that such compelling constraints can be overcome, and we need to spend the months and years ahead overcoming the other constraints that countries faced at Copenhagen.
Full debate: Copenhagen Climate Change Conference