Jesse Norman is the Conservative MP for Hereford and South Herefordshire.
We have identified 30 Parliamentary Votes Related to Climate since 2010 in which Jesse Norman could have voted.
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We've found 65 Parliamentary debates in which Jesse Norman has spoken about climate-related matters.
Here are the relevant sections of their speeches.
10:32
There is a Dunkelflaute across the UK and the whole of Europe, meaning there is no wind and therefore reduced power generation. That highlights the importance of alternative energy sources, such as nuclear. Will the Leader of the House ask the Secretary of State for Energy Security and Net Zero to update the House on the expansion programme for small modular reactors, to ensure we have alterative power sources?
I thank the hon. Member for that question. Obviously, this is a growing issue, as we see the effects of climate change in many of our communities. He will know that the Government’s floods resilience taskforce is at work trying to co-ordinate many of these issues. We have been forthcoming with statements and updates to the House on our flood resilience, and I will ensure that that remains the case.
Absolutely. I join my hon. Friend in noting the importance of indoor and outdoor pools, and of swimming generally, to a healthy society and to our agenda for preventive public health. It is vital that we keep local lidos such as his alive. He will have a strong ally in the Secretary of State for Energy Security and Net Zero, who is partial to an outdoor swim.
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10:30
and I agree. He said we inherited a “struggling” economy and “anaemic” growth; I agree with that, too. I also agreed with him when he was a champion of net zero, and when he was Financial Secretary to the Treasury, he was right to care about economic stability. I agreed with him; does he still agree with him? I am not quite sure.
The hon. Member asked about the Bill that will come before us early next year. I am not quite sure of its status, but I reassure her that the Government are absolutely committed to being a clean energy superpower by 2030. Many in the Conservative party now want to change the targets, but we are committed to them and to the benefits they will bring, not just to tackling climate change, but to creating the jobs of the future and making sure that we have lower bills and energy security for the long run.
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10:35
I know that the shadow Leader of the House is fairly new to opposition, like most of his colleagues, but I gently say to him that the idea of opposition is to oppose the Government, not his own record in government. Last week he attacked our plans to meet climate goals, yet when he was the Minister with responsibility for decarbonisation, he seemed to take a very different view, touring the studios to champion net zero. Here we are yet again: he is attacking our plans on national insurance contributions, but I checked the record and noticed that when his Government raised national insurance contributions—and not just on businesses but on workers —he was the Financial Secretary to the Treasury at the time, and said in defence of the measure, from this very Dispatch Box:
We have inherited a really difficult situation when it comes to energy supplies and energy prices. As the hon. Lady knows, the energy price cap is set by Ofgem, and reflects its consideration of how energy was bought a few months ago. We are taking this issue incredibly seriously, which is why we have a plan to get to net zero by 2030. It is only by switching our energy supplies to renewables that we will be able to bring prices down for longer and have the energy security we so desperately need.
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The Government are committed to accelerating the transition to zero-emission vehicles. Last year, 16% of new cars and around 6% of new vans sold were fully electric. To continue to support the uptake of zero-emission vehicles we are, as the House knows, introducing a world-leading zero-emission vehicle mandate. That will support the future supply of zero-emission vehicles by setting a minimum percentage of manufacturers’ new car and van sales to be zero-emission each year from 2024. I am delighted to say that this week we have laid the new public charge point regulations to facilitate charging for electric vehicles.
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The UK has one of the most ambitious decarbonisation programmes of any country in the G7. In March this year, the Government published a globally unprecedented level of detail on their plans to meet emission reduction commitments, including those from road transport. The carbon budget delivery plan sets out the policies and quantified carbon reductions needed to meet carbon budgets 4 and 5 and the vast majority of reductions needed to meet our commitments into the 2030s.
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I am grateful to the hon. Gentleman for raising the issue of HGVs. As he acknowledges, last week the Government announced the four winning projects of the £200 million zero-emission HGV and infrastructure competition, which will roll out 370 zero-emission HGVs and around 57 refuelling and electric charging sites. This is part of a much broader strategy, which is about developing different fuel alternatives. The technology continues to change very rapidly. We have already heard some fascinating news about the development of solid-state batteries, and the Government are tracking and following all these developments closely.
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As the House will know, Parliament has voted in principle to support a third runway at London Heathrow, but the Government have always been clear that that expansion remains a private sector project. To go ahead, it would be required to meet strict criteria on air quality, noise and climate change, as well as being privately financed. It is for any scheme promoter to decide when it submits a development consent order application as part of the statutory planning process.
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09:25
A successful transition to zero-emission vehicles will require a reliable, accessible and affordable charging network across the country. More than 49,000 public charge points have already been installed. The Government and industry are continuing to work together to drive up those numbers, and members of ChargeUK, an industry organisation, has committed to doubling the number of charge points over the next 12 months and anticipates some £6 billion of investment in charging infrastructure over the next few years. The draft regulations will help to ensure that electric vehicle drivers can travel confidently, knowing that they can find a fully operational charge point suitable to their needs, and can more easily pay at any charge point. To develop the regulations, my Department engaged with consumer groups, vehicle manufacturers, technical experts and the charge point industry to understand better the barriers and proposed mitigations.
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09:35
The hon. Member talked about a 10-year delay in achieving 300,000 charge points. It is important to be clear that there is no such delay. The goal is to reach 300,000 by 2030, and we are well advanced in relation to that goal even at this early stage. Of course, the level of investment that we anticipate, and that has been triggered by the laying of the zero-emission vehicle mandate, will provide an important private sector impetus.
In relation to the zero-emission vehicle mandate, the hon. Member suggested that it would somehow take longer to charge because of the removal of the ban from 2030. It is possible that there will be a very slight effect in that way, but it is also important to note that the substance of the mandate and its particular regulations for the provision of electric vehicles on the road have not changed. We would therefore expect that to drive the installation of electric vehicle chargers.
The hon. Member asked about confidence. He is absolutely right about the importance of confidence, and that is why the zero-emission vehicle mandate is such an important measure. It is not just a huge measure for decarbonisation; it is aimed at stimulating investment in the private infrastructure charge point industry, and that is what it is doing. He pointed to the multiplicity of apps, and he is right about that. There is always a point in the development of any market where it goes from being a series of attempted land grabs and moves for a particular position to one where there is interoperability and a level playing field. That is what these open data requirements are designed to do. I would expect there to be consolidation, as there has already been in the industry, as consumers increasingly focus on using the open data and the most effective apps for their needs.
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19:31
As we heard the determination to be gloomy from the other side of the House, we were noticing at the same time the £4 billion-worth of new gigafactory investment from Tata Group; Nissan and Envision’s announcement a couple of years ago of £1 billion to create an EV manufacturing hub in Sunderland; the £227 million invested in Halewood; Bentley committing £2.5 billion to make the transition to zero-emission vehicles at its Crewe plant; and JLR’s investment of £15 billion over five years into its industrial footprint towards electrification. If everything is as disastrous as the Opposition suggest, how can there be this constant succession of new private-sector investments? That is the question. The truth of the matter is that over the past two years, the UK’s automotive sector has been boosted by over £6 billion-worth of business investment that will drive the transition to zero-emission vehicles, with funding for manufacturing and crucial components as well. That investment reflects confidence.
We know that that transition is important. Cars and vans account for a huge proportion of domestic UK transport emissions, and it is therefore important to address that. Over £2 billion has been spent to support the transition, and the Government are continuing to invest. There are now more than 1.2 million plug-in vehicles in the UK—a 45% increase over the past year. Again, that does not speak to decline; it speaks to rapid growth and acceleration. Some 58% of those vehicles are battery electric vehicles; in August 2023, 20% of new cars in the UK were battery electric vehicles, so again, that is a sign of confidence and growth, and rightly so. That puts the UK’s automotive industry at the forefront of new low-carbon technology, creating thousands of new jobs and providing certainty among manufacturers and infrastructure investors. Some 65% of vehicle manufacturers in the UK car market have already committed to making the transition to zero-emission cars by 2030, and all major manufacturers have committed to selling 100% zero-emission vehicles by 2035.
We must not think just about cars, or even just about cars and vans, but about heavy goods vehicles as well. It is well understood that the UK is seeking to make a transition to zero emission in this area as well, as part of our wider ambition. To support that, there is an HGV and infrastructure demonstrators project that will showcase zero-emission hydrogen fuel cell and battery electric HGV technology at scale in UK fleets, and the Government have already tested such vehicles. Those demonstrators build on the £20 million investment made in 2021-22. In a slightly different context, I was absolutely delighted to welcome the first JCB hydrogen digger, a magnificent piece of kit that is emblematic of the innovation we have seen in the sector.
At the moment, if a new EV is added to the charging system, it will be a gas power station that has to fire it up, so it is not a net zero product. When will we be in a position to have enough renewable power so that, if an electric car is added, it will be recharged with renewable power?
Capacity-building projects for important areas of our connected and autonomous vehicle supply chain are already starting to take place. This country remains one of the first to explore the business case for connected and autonomous mobility as a mass-transit solution. Connected and autonomous mobility will be the future; it will be an electric future, a zero-emission future, and one that is powered by the investments and leadership being provided now, with the private sector, by this Government.
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All transport infrastructure projects delivered by the Department’s arm’s length bodies are required to undertake whole-life carbon assessments and set carbon reduction targets as part of their business cases. National Highways, HS2 Ltd and Network Rail have already set out ambitious plans for achieving net zero and we are supporting them in their delivery. Through the Live Labs 2 competition, we awarded £30 million of funding to seven new regional projects to boost innovation in decarbonising highways infrastructure.
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The hon. Gentleman will be aware that a very wide range of information about potential costs and budgets is already in the public domain from the Department across a very wide range of modes. On electric vehicles, we have just consulted on regulations on the zero-emission vehicle mandate, and £6 billion of new private investment is being scheduled on the basis of those projections. That will transform our charging infrastructure, and we should all welcome it.
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The hon. Gentleman may know that we have just had a very interesting and successful potential negotiation at the International Maritime Organisation. We take this issue extremely seriously, both as regards the decarbonisation of ports and the creation of green routes and other forms of maritime decarbonisation. We absolutely are working on this agenda, recognising that it is one of the most difficult areas of all to decarbonise over time.
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15:49
I thank the hon. Member for Llanelli (Dame Nia Griffith) for her comment. She asked for a renewable energy focus and was right to do so. I hope that I can reassure her by reminding her that National Grid reported that in 2010 less than 20% of our energy was renewable, while in 2022—last year—more than 50% was renewable in five months of the year. That is tremendous progress. She may also be pleased to know that coal, which was used for 43% of electricity generation in 2012, is now at 1.5%. That is tremendous progress on both those fronts.
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15:34
The Department recently announced regulations to implement an increase in weight limits for certain alternatively fuelled or zero-emission vehicles. The weight limit increase is up to a maximum of 1 tonne for an alternatively fuelled vehicle and a flat 2 tonnes for a zero-emission vehicle. In all cases, the maximum weight limit for individual axles—again, the key measure—remains unchanged. The vehicle types that are having their weight limits changed by this regulation include articulated lorries and road train combinations with five or six axles normally limited to 40 tonnes and four-axle combinations normally limited to 36 or 38 tonnes. No additional weight allowance will apply to the heaviest articulated lorry and road train combinations of 44 tonnes or four-axle rigid motor vehicles of 32 tonnes.
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I thank the hon. Gentleman for his question—I thought he was going to mention the £3.29 million of capital funding that Warwickshire County Council has received in this area, but I take the general point he raises. When EV purchases are growing rapidly, as they are in this country, there will be moments of disconnect between the amount of infrastructure and the number of vehicles. We have certainly seen a bit of that recently, and we will perhaps continue to see it for a number of months or more, but what is interesting is that the new zero-emission vehicle mandate allows us to trigger billions of pounds of potential private investment, as I have mentioned. That is a world-leading intervention by Government, and I think it will pay long-term dividends in supporting the expansion of the electric car fleet.
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The Government are committed to accelerating the transition to zero-emission vehicles. To support this transition, we will introduce a world-leading zero-emission vehicle mandate. That will support the future supply of zero emission vehicles by setting a minimum percentage of manufacturers’ new car and van sales to be zero emission each year from 2024.
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Of course, I was delighted to see JLR’s commitment to investing in UK manufacturing and confirming its plans to bring electric vehicle production to the west midlands. Through our policies and investments, the Government are accelerating electrification and unlocking industry investment to meet our net zero ambitions. The automotive industry is a vital part of that process. This is a vote of confidence from the UK’s largest carmaker.
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The third round of consultations on the zero-emission vehicle mandate has just closed. We work closely with all the relevant parties, in particular the car manufacturers. My hon. Friend should be aware that not deflecting from our path, as has been done elsewhere, will not just put the UK further ahead in this area but will trigger a substantial amount of private sector investment in charging infrastructure. ChargeUK has announced that some £6 billion will be invested by private means in the charging network over the next few years, which is to be welcomed.
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17:22
The jet zero strategy was published in July last year and sets out the Government’s approach to achieving net zero aviation by 2050. The idea that the Government have not thought at length and in depth about this, and set out a strategy for achieving it, as was raised earlier in the debate, is nonsense. The jet zero strategy and its accompanying documents set that out. The strategy focuses on the rapid development of technologies in a way that maintains the benefits of air travel while maximising the opportunities that decarbonisation can bring to the UK. It creates a strategic framework for aviation decarbonisation.
It is clear that the Government continue to support airport growth where it is justified, and that expansion of any airport in England must meet our strict climate change obligations to be able to proceed. The Government’s approach to sustainable aviation growth is supported by analysis that shows that the country can achieve net zero emissions by 2050 without the need to intervene directly to limit aviation growth. The jet zero strategy set out a range of measures to meet net zero. I will touch on three of those.
Secondly, this year the Government have conducted a call for evidence on implementation of a 2040 zero-emission airport operations target in England. My Department is currently considering responses and will publish a Government response shortly. Thirdly, the suggestion that this country is behind its international competitors on sustainable aviation fuels is entirely wrong. We have published a consultation on the SAF mandate, and that is currently available for discussion.
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17:10
Let me touch on a couple of other aspects that are useful to reflect on. One is the importance of using vehicles that are appropriately sized and designed for a specific task, thereby reducing the effects of collision from vehicles that are potentially overly large for what is required. These small autonomous vehicles are an example of that. It is right to focus on the safety case, but it is also right to look at the issue of emissions and net zero, where there is significant potential for autonomous last-mile delivery vehicles to make an impact. That could be through being modern vehicles that have zero tailpipe emissions by 2030, in line with the Government’s policy. It could come through the use of more efficient and better optimised routes between the starting point and the destination, as well as more efficient automated driving styles. It could come through the right sizing of vehicles, as I have touched on. The development of custom-made vehicles can help increase vehicle utilisation, and that should reduce the impact on carbon emissions overall because it creates greater productivity and use from an existing trip. Finally, we have the positive impact that comes from improving the access people have to receiving goods at their home or business. That, too, is an important further advantage of this technology.
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The Government are committed to supporting the introduction of 4,000 zero-emission buses and a zero-emission bus fleet. As the roads Minister, my hon. Friend the Member for North West Durham (Mr Holden), said, he has focused on sustainable public transport recently in a visit to Scotland, which included meetings with the traffic commissioner in Glasgow and Lothian Buses.
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The Government are on track to deliver the policy. As the hon. Gentleman will be aware, we are working with companies to build substantial supply chains that then have to scale up by several orders of magnitude in order to meet the scale of orders. If we look at the number that have been ordered alone: for zero emission bus regional areas, the ZEBRA scheme, 1,342; 275 for Coventry; 20 will be going to Cambridgeshire in the next few weeks, I am pleased to say; and 350 to other schemes in England outside London. The total so far is 3,429, which is well on track to meet our target.
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Good morning to you, Sir. The jet zero strategy was published in July 2022, and sets out the Government’s approach to decarbonising UK aviation. The strategy focuses on the rapid development of technologies in a way that maintains the benefits of air travel while also maximising the opportunities that decarbonisation brings for the UK.
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I am sure that the hon. Gentleman meant to begin his question by congratulating the Government on the zero-emission vehicle mandate and our new investments in the local electric vehicle infrastructure scheme. The effect of that, of course, is precisely to create the further investment that will itself drive private sector demand for apprenticeships. We are certainly working as hard as we can on our side, along with the transport employment and skills taskforce, to ensure that we meet this increased demand.
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10:30
What a delight it is to see you in the Chair, Mr Davies. I congratulate my hon. Friend the Member for North Devon (Selaine Saxby) on securing this debate on decarbonising rural transport. I am very aware of this issue as a constituency MP; in Hereford and South Herefordshire, we have many of the issues that have been described. I do not mean to disappoint my hon. Friend at the outset, but I am not going to make Treasury policy here and, least of all, as a former Financial Secretary to the Treasury, a few weeks before a Budget. Nevertheless, a wide range of issues have been raised and it is important to engage with them all.
As my hon. Friend rightly noted, buses are at the centre of the public transport network, but even more so in rural areas than in many urban areas. I and colleagues recognise their important role in providing sustainable transport options and independence to people who live in the countryside. They also have an essential role to play in achieving net zero by 2050 and in creating the cleaner and healthier places to live that we all aspire to have.
On decarbonisation, I am sure that my hon. Friend will join me in celebrating Devon’s recent success in joining the Government-funded ADEPT Live Labs 2 programme for decarbonising local roads in the UK. I am delighted that Devon will carry out a carbon-negative project on the A382, including the Jetty Marsh link road. That is part of a suite of corridor and place-based interventions, trialling, testing and showcasing applications in connection with the Wessex partnership, an exciting project that will be provided with more than £12 million for the three-year programme.
“how interventions across local transport modes will drive decarbonisation in their area.”
Some of the pilots use zero-emission vehicles. The scheme in Essex has been electrified since day one, providing a zero-emission demand-responsive service to rural areas around Braintree, and Surrey County Council has started to roll out its electric minibus route on its Mole Valley connect service.
On buses more broadly, colleagues will know that, in 2020, we committed to introducing 4,000 zero-emission buses and, ultimately, to achieving an all zero-emission bus fleet. It is nice to hear the hon. Member for Strangford (Jim Shannon) rightly supporting the superb achievements of Wrightbus in Northern Ireland with regard to not just electrification, but its work on the Hydroliner, using hydrogen technology.
The approach to zero-emission buses will support our climate ambitions, improve transport for local communities and support green jobs across the country. Since 2020, the Government have funded an estimated 3,452 zero-emission buses across the UK, some 1,400 of which have been supported by funding from the zero-emission bus regional areas, which has rightly been highlighted. Great progress has been made, with more than 500 buses ordered so far under the ZEBRA scheme, including 117 electric buses that have been ordered for four different local authorities, as announced in the House last week.
Buses are not the only zero-emission vehicles on our roads. It is right to think about the question of zero-emission vehicles more widely, as well as the charging infrastructure network, mentioned by several colleagues, that needs to be as accessible, affordable and secure in rural areas as elsewhere. Last March, the Government published their electric vehicle infrastructure strategy, which set out plans to accelerate the roll-out of the network. We expect at least 300,000 public charge points to be installed across the UK by 2030. There are already over 37,000 open-access public chargers on UK roads, with more than 600 new chargers added to our road network each month on average, and public charging devices have more than tripled in the past four years. That is in addition to the hundreds of thousands of charge points in homes and workplaces. We believe that we are on track to meet local expectations.
I like the Minister’s comments on the ZEBRA scheme, even though it has been an utter shambles from start to finish. Scotland has more zero-emission buses on the road in a country that is a tenth of the size.
The benefits are not just economic, as has been rightly highlighted. There are also the benefits of air quality and improved health, and they play a vital role in decarbonisation. Funding is important, and we have talked about that, but it is only one part of the solution in rural areas. We also need to support increased capability in delivery, and that is why the Government are providing Devon County Council with capability funding to support the development of its county-wide rural trail—its cycling and walking infrastructure plan.
There is a mixed picture in terms of need, but not a mixed picture in terms of the commitment, energy and drive that we are trying to bring to the entire portfolio across the range of the different interventions and modes in the cause of decarbonising our country and our economy.
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16:16
It is interesting that this debate follows not just the debate that my hon. Friend mentioned, which took place a few weeks ago, but this morning’s 90-minute debate on rural decarbonisation, secured by my hon. Friend the Member for North Devon (Selaine Saxby). That is testament to the level of concern and interest among our colleagues in the House.
As my hon. Friend the Member for Wimbledon knows, the Government are committed to achieving their climate change obligations. Decarbonising transport is a key part of that. I hope we will make some important announcements fairly shortly about the zero emission vehicle mandate, which will be a massive driver of investment in new charge points and new electric vehicles. We are doing that not only to help to decarbonise the atmosphere but to improve air quality and the quality of life in our towns and cities, while supporting a sustainable path of economic growth. We are committed to phasing out the sale of all new petrol and diesel cars and vans by 2030, and to ensuring that all new cars and vans are zero emission by 2035. We have already put in something like £2 billion to support the transition process.
As part of that process, almost a year ago the Government published their landmark electric vehicle infrastructure strategy, which comprehensively set out their vision and commitments in this policy area. In particular, the strategy put in place an expectation of around 300,000 public charge points—not just charge points, as my hon. Friend said, but public charge points. That is important because sitting alongside that are hundreds of thousands of charge points being put into private premises through the normal process of investment that goes alongside the purchase of electric vehicles. That may happen under a previously funded scheme or come as part of the package of buying the vehicle or via a number of other methods. Even that 300,000 is just a part of the overall picture. My hon. Friend is right to flag the ambition inherent in the target. As technology changes, as the market becomes more competitive and as the zero emission vehicle mandate kicks in, we expect that target to come into view.
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A technical consultation on the zero-emission vehicle mandate design’s features was held between April and June of last year. Responses to that consultation are currently being analysed, and the Government will publish their response, alongside a final consultation on the full regulatory proposal, and an accompanying cost-benefit analysis, in the near future.
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As my right hon. Friend will be aware, the Government’s plan is for more than 300,000 charge points to be in place by then. That will be led largely by the private sector, and we meet regularly with all the charge point operators. Their plans are escalating and will be massively supported and benefited by the zero-emission vehicle mandate. With that, and technological advances, we anticipate that there will be ample opportunity for people in rural areas to use electric vehicles.
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The hon. Gentleman will be aware that I will not comment on the Budget; as a former Financial Secretary, I will certainly not attempt to trespass on the Treasury’s prerogative on tax issues. What he will know, of course, is that the vast majority of that investment is coming from the private sector. Of course, that will itself be massively boosted by the zero-emission vehicle mandate. I met one of the largest charge point operators only this week, and they were perfectly clear that the one thing that will do more than anything else, not just to reduce carbon but to support the development of that industry and that transition, is the mandate, which we will publish, as I say, in the near future.
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I thank my hon. Friend very much for her question. She is absolutely right that hydrogen is a key component of the full decarbonisation of transport—not just heavier transport, but aviation and maritime. I would be delighted to come and visit her.
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The figures that the hon. Lady has given are a result of the extremely rapid increase in the number of battery electric vehicles, which is welcome and is supported by Government policy. We have supported the provision of more than 400,000 chargers for homes and businesses in the last few years, and, as I have said, we take the issue very seriously. We have the LEVI fund and the rapid charging fund, which I am seeking to accelerate. However, I appreciate the hon. Lady’s point. It is right for us to continue to proceed in tandem with the growth in the sector, all the more so because this year our new zero-emission vehicle mandate will continue to propel the number rapidly upwards, which I think will benefit the public greatly.
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17:08
I am afraid that I do not accept that, no. The facts of the matter are that some other countries have decided to change their regulations because they had launched the wrong set. They have re-regulated in certain cities, and some countries have not even permitted any trials of e-scooters, so I do not accept that. Indeed, in general in this country, we have a remarkably flexible, open and innovative transport sector. One can see that in the use and trial of autonomous vehicle technologies, in the use of zero emission vehicles, in the ways that electric vehicles are being brought into the market in the UK, and in the speed and development of that market. Therefore, I do not accept that point.
The goal throughout is to ensure that we tackle anti- social behaviour, learn from the trials, encourage take-up and also support the active travel and decarbonisation agendas. If we are properly able to manage that, e-scooters may well be able to take their place alongside the other technologies that are in place, but it is not appropriate to pre-judge the results of the consultation that we will be launching in due course.
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11:12
Regional airports play an important role in levelling up. It is important to recognise that that is not just about the foundation of the wider UK aviation sector; it is also about the business opportunities that can be directly generated as a result of the supply chains and other enterprise engagement. Members will recall that the Government published a strategy on the future of aviation, “Flightpath to the future”, which sets out a vision for the sector over the next 10 years. It includes not just connectivity, which we have discussed, but workforce, skills, innovation and decarbonisation.
We expect a naturally low-carbon approach to the regeneration of any new airports for all the reasons my hon. Friend the Member for Fylde set out. That is a potential source of advantage if it is properly handled. It is our goal that UK domestic flights should be net zero by 2040, and airport operations, which are an important potential ancillary contributor to carbon emissions, should be zero emission by 2040. We are providing significant support for that, not just for sustainable aviation fuels but for the commercialisation of those plants and other research and development co-investment —in particular, through the Aerospace Technology Institute. Alongside that, the levelling-up agenda, jet zero and net zero provide the context within which there can be diversification, a deepening and broadening, and a very significant boost to the activity conducted in and around airports.
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22:15
Our view, which is backed up by evidence from HMI and elsewhere, is that the balance has swung too far away from the general public, who want to go about their lives, recognising the very many important issues that are raised by protest. While they acknowledge those problems, they want to get on with their lives, and they want protection from the state of their right to get to school, to hospital and to work. That is not a right to be taken lightly. One of the most frustrating things about some of these protests has been their self-defeating result. Notwithstanding the cause, important or otherwise, the protestors have turned off millions of their fellow citizens and caused a level of intolerance towards issues such as climate change, which is regrettable. We have a job to balance those rights, and that is what we are attempting to do.
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19:15
The hon. Gentleman asked questions about levelling up and multinationals’ tax avoidance. I think he is aware that the Government’s approach to levelling up is extremely manifest, most recently in the work that we have done with the UK Infrastructure Bank, which is specifically dedicated to net zero and levelling up and which has just recruited a world-class new chief executive. On the case of multinationals, he has obviously forgotten that the Government have been in the vanguard of the G20 and the G7 in arranging and leading on a new settlement on Pillar One and Pillar Two multinationals’ tax avoidance.
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The details of the sector visions will be set out by the relevant Departments in the coming months. In developing the visions, the Government will consider the role of the state in supporting high-growth sectors that have the potential to build a globally competitive advantage, as well as how the sectors can also be used to support wider objectives, for example levelling up or enabling a transition to net zero.
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I am very grateful to the hon. Gentleman for the comments he makes. I share his view that aerospace is a very important strategic industry for the country as a whole and, of course, particularly for Northern Ireland and his constituency. Let me reassure him that the sector visions we are discussing will be guided by considerations of comparative advantage—we have a considerable comparative advantage in many areas of aerospace—and future growth potential—I do not think anyone doubts that that is an area. He will know that we are investing very heavily in supporting that sector in the transition to net zero, with green fuels and electric flights, and also supporting levelling up. Those all play into a very positive story for Northern Ireland as well as the rest of the UK.
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09:45
The Government are committed to reducing carbon emissions, which is why this country was the first major economy to implement a legally binding net zero greenhouse gas emissions target by 2050. Of course, it remains open to the Scottish Government to impose higher standards if they wish, either on freeports or on other ports that exist in Scotland, since environmental policy is a devolved area. The hon. Gentleman may want to take up his concern with the Scottish Government if he wishes to see higher standards in ports in Scotland. From the Government’s standpoint, we are also committed to supporting those in employment, which is why we introduced the national living wage in 2016. This month, workers have seen a pay increase to £8.91 an hour, which is a 2.2% pay rise.
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21:45
The hon. Member for Brighton, Pavilion (Caroline Lucas) revisited some of her key themes as regards the climate and environmental policy. I think that there is a misunderstanding at some very deep level of what the Government are doing, which includes: the Environment Bill; the 10-point plan that the Prime Minister has laid out; the net zero work that the hon. Lady highlighted, which was commissioned within and by the Treasury from a very eminent independent economist; and our work through the new UK Infrastructure Bank, which focuses on green policies and levelling up and for which I was pleased to visit new potential office sites in Leeds only on Thursday. It all amounts to a tremendous emphasis, particularly in the net zero review, on the long-term future of creating a sustainable and productive green economy in this country. It is very important to focus on that.
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19:15
(b) assessing how the capital allowance super-deduction scheme is furthering efforts to mitigate climate change, and any differences in the benefit of this funding in respect of—
This amendment would require the Chancellor of the Exchequer to analyse the impact of changes proposed in Clause 9 in terms of impact on the economy and geographical reach and to assess the impact of the capital allowances super-deduction scheme on efforts to mitigate climate change.
(a) progress towards the Government’s climate emissions targets, and
This new clause seeks a report on the impact of the super deduction on (a) progress towards the Government’s climate emissions targets, and (b) capital investment in each of the next five years. A review under this section must include (a) the distribution of super-deduction claims by company size, and (b) estimated tax fraud.
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21:45
Opposition Members have tabled two new clauses relating to clauses 109 to 111. Among other things, they would place additional eligibility criteria in respect of employment rights, equalities and the environment on the claiming of capital allowances and stamp duty land tax relief in freeports. It is important to say that freeports will deliver tangible benefits that will help to level up areas. By imposing those additional criteria, the new clauses would potentially delay the implementation of these measures by making freeports more complicated for businesses to navigate, and therefore reducing their impact and effectiveness. In any case, the Government have a very strong commitment to reducing carbon emissions, which is why this country was the first major economy to implement a legally binding net zero greenhouse gas emissions target by 2050. The Government will continue to ensure that the role of tax is considered alongside other policy measures needed to meet environmental goals.
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15:41
The last 12 months have delivered a grave shock to this country and its economy, but the Government have met that shock with a determined and sustained response. That work is not done. With this Finance Bill, we are continuing to support the lives and livelihoods of families and businesses up and down the land, while simultaneously setting the terms for an investment-led recovery. The Bill puts in place the foundations for a fairer and more sustainable tax system. It further enshrines commitments on the environment and the work we are doing to tackle climate change, and it begins the work to rebuild the public finances. For those reasons and more, I commend it to the House.
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It is no secret that bus services are close to the Prime Minister’s heart. The Government have committed to improving bus services and since the start of the pandemic have supported operators with more than £1 billion of funding, as well as with £120 million at the spending review for the delivery of new zero emission buses. The national bus strategy is due to be published soon and will start to set out this wider ambition. I am also pleased to note that Budget 2020 allocated £166 million to the Sheffield city region from the transforming cities fund to support local transport investment, including bus infrastructure.
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15:03
The hon. Member for Richmond Park (Sarah Olney) was right to raise the point about the need for green jobs. The Government absolutely share that view, and that is one of the things that successive policies have focused on. I have no doubt that it will be an important part of the consideration in the net zero review and all the other measures that are presently in place.
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20:31
Lastly, the climate emergency has not gone away during covid, and we know that emissions from homes account for 30% of UK emissions. Decarbonising homes is therefore crucial to getting to net zero. Improving the energy efficiency of social housing is something that the Government could do straight away. They could also require landlords to achieve minimum levels of energy efficiency in order to be able to rent their homes. We need a Government with a vision to get the economy going, not a tax cut for only the few.
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15:39
As has been pointed out, covid-19 is not the only crisis that we face. The Government have committed to reducing the United Kingdom’s carbon emissions to net zero by 2050. The Bill is another step towards that target. Not only does it pave the way for the forthcoming plastic packaging tax, but it removes the vehicle excise duty expensive car supplement for zero-emissions vehicles and ensures that, now we have left the European Union, a carbon price will remain in place. Those measures will help to ensure that our post-covid-19 economy is greener than before.
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18:30
New clause 28 would require the Chancellor to assess the impact of the Bill on the environment, and new clause 34 would require the Chancellor to review its impact on human and ecological wellbeing, including that of future generations. New clause 13 would require the Chancellor to assess the impact of the Bill on the UK meeting the UN sustainable development goals. New clause 14 would require an assessment of the Bill’s impact on the UK meeting its Paris climate change commitments.
Let me merely speak to these amendments to the legislation. These amendments are not necessary and they should not stand part of the Bill. Tackling climate change is a top priority for the Government, with the UK becoming the first major economy to pass legislation committing to reach net zero emissions by 2050. The Government remain committed to meeting this milestone and have consistently demonstrated the UK’s world leadership in clean growth and development. For example, the 2019 spending round included additional funding for biodiversity measures to support the maintenance and restoration of vital habitats for wildlife and to deliver the 25-year environment plan. Following that, the spring Budget reinforced our track record in the area, announcing at least £800 million for carbon capture and storage—that should be of great interest to the hon. Member for Weaver Vale (Mike Amesbury), who is no longer in his seat—and more than £1 billion of further support for ultra low emission vehicles. That Budget also announced that we will at least double funding for energy innovation.
The Bill highlights the progress we are making towards our commitment to tackling climate change, as well as towards sustainable low-carbon development and meeting international agreements. The Bill provides significant incentives to support the continued decarbonisation of transport. Clause 83 establishes tax support for zero-emission vehicles, exempting them from the vehicle excise duty expensive car supplement.
The Bill also ensures that Her Majesty’s Revenue and Customs can prepare for the introduction of the plastic packaging tax. That was rightly highlighted by my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) and will incentivise businesses to use 30% recycled plastic instead of new material in plastic packaging. The Government are also reopening and extending the climate change agreement scheme to support energy-intensive businesses to operate in a more environmentally friendly and sustainable way.
New clause 28 would require the Chancellor to assess the impact of the Bill on the environment, specifically considering the impact on achieving net zero emissions by 2050, on meeting carbon budgets and on air quality standards and biodiversity. The Government are committed to meeting our net zero milestone. The net zero review continues to make progress, although, let us be clear, like everything else the capacity to consult a wider group of stakeholders has been affected by covid. Many resources have been devoted to covid-related matters given the position we are in, but the review continues to make progress and we will publish a call for evidence, which will allow businesses and stakeholders the chance to engage seriously ahead of publication.
Carbon pricing has already contributed to emissions reductions in the power sector, as the share of coal-based electricity fell from 40% in 2012 to 5% in 2018, which is something everyone should be proud about. Future climate strategies will be set out in due course, including as part of the national infrastructure strategy.
The Government have also created skills advisory panels to help local areas understand their current and future skills needs, including in low carbon industries, and to tailor provision accordingly. The Government will assess the impact of potential interventions against the contribution they make to our environmental goals, including on climate change and air quality targets.
New clause 14 would require a review of the Bill’s impact on the UK meeting its UN Paris climate change agreements. Under the Paris agreement, the Government must maintain and report on their emissions reduction commitments in the form of a nationally determined contribution. The UK’s legally binding commitment to reduce emissions to net zero by 2050 is among the most stringent in the world, and the system of governance that implements that commitment under the Climate Change Act 2008 is world-leading.
New clause 34 would require the Chancellor to review the impact of the Bill’s provisions on human and ecological wellbeing, including on future generations. The Environment Bill is designed to ensure that the environment is at the heart of all environmental policy making. This Government and future Governments are held to account if they fail to uphold their environmental duties through a newly established Office of Environmental Protection, including legally binding, long-term targets on biodiversity, air quality, water, resource efficiency and waste management on top of the net zero target.
The Government are committed to tackling climate change and to being the first generation to leave the environment in a better condition than we inherited it. These measures go towards making that happen.
We have had an excellent debate, particularly Opposition Members’ contributions. May I congratulate, on behalf of all of us, the hon. Member for Strangford (Jim Shannon) on the birth of his latest grandchild? He will be a proud grandfather. My proud father wrote to me during the debate to say two things: first, that my hon. Friend the Member for Hove (Peter Kyle) needs a haircut, and secondly, that it is good to see the Government Benches full, taking social distancing to the nth degree. However, what they lacked in quantity they made up for with quality, although I must take up a point with the right hon. Member for South Northamptonshire (Andrea Leadsom), who said that all I did was criticise the Government. That is not true. As the Minister acknowledged, I listed all of their achievements. It is not my fault that the Committee on Climate Change has said that those achievements do not go far enough to help the country achieve its net zero ambition. They are going to have to do better.
I must say that it was a shame for the Minister to end what has otherwise been a rather consensual debate on the importance of tackling climate change with his outburst on the Swansea Bay tidal lagoon. That is a great missed opportunity and another reason why so many campaigners are right to say that the Green Book ought to be reformed so that when the Treasury makes spending decisions on major projects, it properly takes into account the net zero benefits; otherwise, we end up being penny-wise but, ultimately, planet-foolish.
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On 16 April the Government published a consultation on the climate change agreement scheme extension and reforms for any future scheme. The timetable for this will continue as planned, to ensure the extension of the scheme will be in place by September as announced at Budget 2020, supporting energy intensive businesses to operate in a more environmentally sustainable way.
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17:02
The Bill will also encourage the uptake of zero-emission vehicles by removing them from the vehicle excise duty expensive car supplement, which will mean that employers and employees pay no tax on zero-emission company cars in 2020-21. The United Kingdom has led the world in introducing legally binding carbon emissions reduction targets; these measures underline once again how serious the Government are about meeting those targets.
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16:30
Under EU rules, the UK is obliged to comply with the decision of the EU Court of Justice. If it does not, the European Commission will be required to issue infraction fines against the UK. The Government have taken appropriate time to ensure that as much as possible of the existing VAT relief is maintained. The problem would have been faced by any Government committed to green energy, but we have managed to set up mitigations that others might not have done.
In 2015, a consultation on potential changes was published, which included proposals to remove entirely the VAT relief from the installation of solar panels. That could have affected 40,000 installations per year, and would have had a significant impact on those wishing to invest in sustainable energy solutions. Following a 2016 consultation on that proposed change, the Government recognised the concerns of industry, of colleagues across the House and of campaigners, and decided to go back to the European Commission to agree, if possible, scaled-back changes.
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17:01
I thank all colleagues who have spoken in the debate. Let me start in reverse order, with the issues raised by my right hon. Friend the Member for Newbury. He is absolutely right to highlight the extent to which this country has been in the vanguard of legislation and change to combat climate change and to improve our energy efficiency, often ahead of the EU—he is right to focus on that and I identify to a degree with his experiences. He is also right to suggest that it is quite wrong to imply that somehow our officials or lawyers are soft on these matters. When we send legal teams in to negotiate or fight battles, that is done at the highest level in the European Court of Justice and with the gloves off, as one might expect from any high-quality legal adviser or barrister. The same is true of policy officials. We have a rule-of-law society, possibly more developed than anywhere else in the EU. That is why, as a general matter, we take it upon ourselves to be compliant with EU law and in good time.
It is important to note—certainly, the comments of the hon. Member for Bootle show that it is easy to forget—that we are talking about a very small change in terms of impact. Some 95% of installations are projected to be unaffected by this change, and its overall effect on the Exchequer is negligible—less than £5 million. As we have spent £30 billion supporting renewable energy over the last few years, one can see the magnitude of the contrast.
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Cycling and walking are an important part of transport strategy for this Government, and of course they bring great benefits in terms of health, combating obesity and improving air quality, and, as the Committee on Climate Change has reminded us, with their effects on the environment more widely. We published the cycling and walking investment strategy in 2017. Since then, we have conducted a major cycling and walking safety review, as well as providing a lot more funding; about £2 billion is being invested over this Parliament. The Department is also supporting 46 local authorities with their local cycling and walking infrastructure plans, so they can deliver cycling and walking schemes according to a more phased and consistent long-term programme.
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14:30
It is a pleasure, as always, to serve under your chairmanship, Sir Roger. The draft instrument is extremely straightforward. It ensures that inoperabilities are corrected in EU regulation 2018/956, which concerns the monitoring and reporting of carbon dioxide emissions from and the fuel consumption of heavy-duty vehicles, or HDVs, so that there continues to be a functioning legislative and regulatory regime in the event of no deal.
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10:34
The hon. Member for York Central rightly drew attention to the importance of combating emissions. We have a very strong air quality strategy and have launched an enormous amount of work not just on emissions but on decarbonisation. We have a lot of work about to come out shortly on future mobility, electric vehicles and the like. It includes not just cars, but the full panoply of electric vehicles that are transforming our streets.
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15:48
I could not help noticing that the hon. Member for York Central (Rachael Maskell) was extremely rude about road building and called it catastrophic. Does that constitute a change of policy on the part of the whole Labour party? I encourage her not to think of it in that way, because road investment strategy 2 not only includes hundreds of millions of pounds for cycling and walking schemes and an enormous investment in skills, which she cares very much about, but paves the ways for autonomous and electric vehicles, which will be the vehicle—if I may use the pun—for the decarbonisation and greening of our economy in the longer term.
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As the hon. Gentleman will know, the Government’s mission is for all new cars and vans to be effectively zero emission by 2040. The Road to Zero strategy, which we published in July, sets out a wide range of actions that have been taken to achieve that goal, as well as steps to drive down emissions from conventional vehicles in the meantime. Those measures involve about £1.5 billion of investment.
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I will leave the Secretary of State to answer for himself in future questions and conversations, but there cannot be much doubt that the goal is to balance the effective use of all modes of transport with the important need to make a transition to low emissions as fast as possible. We are doing so at a great pace, and the hon. Gentleman will be aware of the many decisions that have been taken about improving air quality across the country, of the zero emission vehicle summit that we held in September, and of the Birmingham declaration that was world-leading in bringing other countries to the table.
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21:51
Labour has put four tests to the Government on this topic, covering growth across the UK, climate change, air quality and noise. We have responded to each one of those four tests.
Both the independent Airports Commission’s analysis and our own show that a new runway can be delivered in line with our obligations under the Climate Change Act 2008. That position has been strengthened by a recent communication with the chair of the Committee on Climate Change. The Government’s clean growth strategy published last year also sets out how the UK will reduce carbon emissions across all sectors, including transport, across the 2020s.
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17:38
The Government want to position the UK as the best place on the planet to develop, manufacture and use zero-emission vehicles. I think that that is perfectly clear from what we have said. It will clean up our air—
Let me proceed. I have said that we want almost every car and van to have zero emissions by 2050. We have said that we will end the sale of new conventional petrol and diesel cars and vans by 2040. My hon. Friend the Member for South West Bedfordshire asked whether that target was too far out. I say to him that it is not. If he reflects on the experience of the past 12 months, he will see that one of the results of the Volkswagen scandal has been that diesels—in many ways, diesel is a thoroughly excellent technology, which is rapidly improving and is useful especially for journeys of distance and between cities in particular—have taken the brunt of that. The result has been a worsening in performance on air quality or rather on emissions, and that is precisely the kind of counterintuitive response that would come from a failure to manage the process effectively. I draw his attention to that.
In the minute and a half that remains to me, let me just say this: we also believe that e-bikes can play a very important part in the decarbonisation of our transport system. As I have said, I am a great believer in e-bikes. Colleagues will be surprised to learn that we have been thinking about this issue for some time. It is important to draw a distinction between e-bikes, the price of which is falling, the diversity of which is increasing and the market for which is working quite satisfactorily in many ways—although I can understand that colleagues recently discovering them might like a subsidy from the Government —and e-cargo bikes, which have a very important potential public purpose in substituting for diesel-using small vans, especially in urban contexts. We will be looking very closely at that particular issue as part of the wider picture.
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We have very ambitious plans to reduce transport emissions, including by ending the sale of new conventional petrol and diesel cars and vans, and by ending the use of diesel-only trains by 2040. Clean growth strategy actions will reduce greenhouse gas emissions, and the UK plan for reducing nitrogen dioxide concentrations sets out action to tackle hotspots of air pollution. We will shortly be launching our new zero-emissions transport paper, and the House can review that, too.
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16:30
That the Committee has considered the draft Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018.
It is a delight to serve under your chairmanship, Ms McDonagh. The regulations contain important changes to two existing schemes that place requirements on suppliers of fuels. The schemes are provided for by the Renewable Transport Fuel Obligations Order 2007 and the Motor Fuel (Road Vehicle and Mobile Machinery) Greenhouse Gas Emissions Reporting Regulations 2012. Those require suppliers to reduce greenhouse gas emissions from fuels supplied in relation to transport, including through the supply of biofuels, and to report those reductions accurately.
The proposals before us today are the result of extensive consultation and input from industry, fuel experts and environmental organisations. In 2015 my Department and the low-carbon vehicle partnership’s transport energy taskforce, comprising more than 50 organisations, reported on how the UK might meet its EU 2020 greenhouse gas emissions reduction and renewable transport fuel targets. The taskforce’s report also considered how low-carbon fuels could help to reduce greenhouse gas emissions from UK transport in the period to 2030 and beyond. That work informed public consultations on the proposed amendments.
The greenhouse gas reporting regulations currently require designated fuel suppliers to report the amount and type of fuel that they supply, and its greenhouse gas intensity. The regulations operate in parallel with the RTFO scheme. As a consequence, information reported by suppliers under the RTFO order is for the most part sufficient to discharge a supplier’s obligation to report.
Since the RTFO was introduced in 2008, the greenhouse gas emissions savings of the renewable fuels supplied have improved year on year. Last year the average greenhouse gas saving of a litre of renewable fuel was 71% compared with petrol and diesel. That is in no small part due to the approach that the Government have taken to encourage the supply of renewable fuels from wastes and residues. The most recent statistics show that 66% of biofuels supplied in the UK were made from a waste or residue, and so they did not compete for land with food crops.
The draft regulations before us would build on that success. They would amend the RTFO order to increase the targets for renewable fuels to 9.75% of fuel supplied in 2020, with further incremental increases to 12.4% by 2032, providing long-term policy stability to industry and investors. They would also set sub-targets, starting in 2019, for the supply of renewable fuels classified as “development fuels”. That would increase incentives to supply new types of advanced fuels that are of strategic future importance to the UK. In line with that strategy, the draft regulations make certain renewable aviation fuels, renewable fuels from non-biological feedstocks, and renewable hydrogen eligible for reward under the RTFO order. They mitigate the risk that biofuels supplied will not deliver reductions in greenhouse gas emissions by placing a limit on the contribution that biofuels produced from food crops can make to meeting targets to supply renewable fuels. That limit is set at 4% in 2018, 3% in 2026, and 2% in 2032. Finally, they ensure that wastes that would be disposed of are eligible for greater incentives than those with other productive uses.
The draft regulations propose extensive changes to greenhouse gas reporting regulations in order to create a new GHG credit trading scheme. The new scheme will be familiar to suppliers as it copies many aspects of the RTFO scheme. The two schemes will be administered jointly, and the Department is aligning much of the reporting required so as to minimise burdens on suppliers.
The new GHG credit trading scheme will replicate the protections afforded under the RTFO scheme, both to smaller suppliers through equivalent deductions in obligation, and to motorists through a buy-out mechanism. Key features of the new GHG credit trader scheme include a greenhouse gas emissions reduction obligation on suppliers of fuel and energy for use in road transport and non-road mobile machinery, and suppliers will be required to reduce the overall greenhouse gas emissions of the fuel they supply, compared with 2010 levels. They must achieve a 4% reduction in 2019, and a 6% reduction in 2020. The scheme also provides incentives to suppliers by rewarding GHG credits for the supply of renewable and fossil fuels that have lower greenhouse gas emissions than ordinary petrol and diesel, for electricity use and electric road vehicles, and for reductions in upstream emissions from the extraction of crude oils. The GHG trading scheme aligns with the strategic objectives of the RTFO by offering rewards for the supply of renewable fuels used in aviation.
The draft regulations do not mandate E10, in the sense of requiring that 10% bioethanol must be blended in petrol. Instead, they allow fuel suppliers to determine how best to meet their obligations. Moving to E10 fuel could make achieving our renewable energy targets easier and provide an economic boost to domestic producers of bioethanol and UK farmers in the supply chain. The Department therefore remains committed to working with industry to ensure that any future introduction of E10 is managed carefully, and that E5 remains available for vehicles that are not compatible with E10.
To round up, the draft regulations will begin the implementation of the ambitious strategy for renewable fuels that the Government set out last September. That strategy seeks to accelerate the delivery of sustainable alternative fuels for aviation and other sectors that are hard to decarbonise, thus enabling the UK to lead in developing and deploying those fuels. The draft regulations also take into account the wider economic importance of existing UK biofuel production and seek to maintain that market. I therefore commend them to the Committee.
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16:52
So far, UK suppliers have responded to the challenge by supplying renewable fuels that have increasingly higher greenhouse gas reduction benefits and are sustainable. My Department is confident that suppliers will also respond to the opportunities presented by these regulations.
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09:33
There are two points to make on that. First, the way to think about all these things is as part of a wider energy mix that is designed to solve the trilemma of security, affordability and decarbonisation. On the contribution of offshore wind, for example, it is true that there is some question as to its total cost when including intermittency. It is also true that, had it not been for the substantial Government investment in this area, we would not have the situation in which costs for this technology are falling faster and further than anyone would have anticipated.
As for the fourth carbon budget, the hon. Gentleman was talking about totals—and the challenge for the Government is to meet the fourth carbon budget in total. The support and advice that the Committee on Climate Change offers is always welcome and of interest to us, but the focus is on the total. The hon. Gentleman painted a beguiling picture of towels being tightened and retightened in the bowels of the Department; but I think it is fair to describe the process of aligning all the different carbon saving measures required to meet the budgets as complex and difficult. That is what the clean growth plan, which will be published in due course, will do.
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15:28
I thank colleagues on both sides of the House for their contributions to this debate. I will respond to some of their many points but, first, I will recap the situation. The most recent statistics, as highlighted by my hon. Friend the Minister for Climate Change and Industry in his opening remarks, show that there were approximately 780,000 fewer homes in the lowest energy efficiency rating bands—E, F and G—in 2014 compared with 2010, which demonstrates real, sustainable progress towards the 2020 and 2025 milestones. It is clear from the statistics that the fuel poverty milestones and target are backloaded and that the scale of improvements required to reach each of the target dates increases over time.
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16:30
It is a pleasure to serve under your chairmanship, Sir Alan. This statutory instrument amends regulations concerning the contracts for difference scheme and the capacity market. Those schemes are designed to incentivise the significant investment required in our electricity infrastructure, keep costs affordable for consumers and help to meet our decarbonisation targets, while ensuring security of energy supply.
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Nearly £56 billion has been invested in renewable energy since 2012. In the Budget last year, my right hon. Friend the former Chancellor of the Exchequer announced £730 million of annual support for less established renewable energy projects, including offshore wind. In the previous autumn statement, the renewable heat incentive was announced, at £1.15 billion by 2021.
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The Council began with a presentation by Vice-President Šefcovic on the Commission’s second state of the energy union report, emphasising that 2017 should be the “year of implementation”. He emphasised the importance of co-operation between Council, the Commission and the European Parliament, and the need to adopt the clean energy package swiftly. The Commission stated that the EU was largely on track to meet its 2020 energy and climate change targets, but that some member states were still reliant on third countries for their energy supply and there was a continuing need for diversification.
On the renewable energy proposals, a number of member states stressed the role that bio-energy can play and wanted the associated proposals for sustainability criteria to apply to bio-energy. Others stressed the need for the proposals to take account of national specificities and that member states should determine their own energy mix.
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09:16
I start by restating the Government’s commitment to ensuring that the UK has secure energy supplies that remain reliable, affordable and clean. Shale gas has the potential to be a domestic energy source that can contribute to our security of supply, help to achieve climate change objectives, and create jobs and economic growth.
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15:57
I will make some general statements before responding specifically to the concerns raised. We have not got much time, so I will have to move relatively quickly. As I am sure the House understands, the Government remain very committed to tackling climate change, and remain very committed to the Climate Change Act 2008 and the implications it has and will have for the coming decades. Climate change remains one of the most serious long-term risks to our economic and national security.
As a country, we have made great progress towards our goal. Indications are that UK emissions in 2015 were 38% lower than in 1990, and 4% below those in the year before. It is appropriate to recognise that, as well as to look ahead to the future to the emissions reduction plan, which we will publish in due course. I am happy to respond to the question from the hon. Member for Southampton, Test (Dr Whitehead). My colleague the Minister for Climate Change and Industry mentioned to the Business, Energy and Industrial Strategy Committee that that would be in the first quarter. I can do no better than echo his words.
As a Government, we remain committed to exploring all technologies that can support the process of decarbonisation, including carbon capture and storage. As has been recognised today, CCS has a wide range of potential applications in which it could contribute to the reduction of carbon in our environment. Those include not merely decarbonising heating and transport, but providing a pathway for low-carbon hydrogen and producing negative emissions when biomass is combined with CCS in power generation. CCS offers a wide array of potential strategic benefits. It has been rightly noted that it has the potential to help energy-intensive industries in this country to remain competitive.
I understand some of the concerns that were raised about the cancellation of the project last year. The project was absolutely not without benefits and, as the Committee recognised, there had been investments in front-end engineering and design. It was an ambitious scheme. Everyone in the Chamber believes that the Government should be ambitious in their expectations for climate change improvement and carbon reduction, so I think it is odd to criticise the Government’s ambition, when they have sought to be precisely that.
The Government absolutely believe that CCS has a potential role in long-term decarbonisation, but it must be affordable. It is worth noting that we are not by any means the only country seeking to crack CCS from a cost perspective. Projects have been deployed, particularly in north America. However, the United States, Canada and Norway have all cancelled projects, so we are taking the time to look hard at CCS to see whether we can find a cost-effective pathway.
That does not mean we have not been investing in the meantime. As colleagues know, we have made a range of investments across the piece, including in Carbon Clean Solutions, which the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) mentioned—I would be delighted to meet him when officials can set it up—and in storage appraisal projects in the Northern Irish seas and the Summit Power CCS project at Grangemouth.
The Government continue to be very active. We commission research and provide support for innovation, and we remain engaged and seek to continue working with and learning from others, such as the United States, Canada and Norway. The hon. Member for Coatbridge, Chryston and Bellshill mentioned the Toshiba CCS plant in Texas. Officials have already met the promoters of that scheme and are contemplating visiting it when it is up and running to learn more as part of our overall picture. We remain part of a series of international initiatives designed to understand CCS better, and to learn from and deploy it as effectively as possible.
Therefore, we have not closed the door, by any means. Indeed, Lord Oxburgh was asked to set up and lead his parliamentary advisory group—I very much recognise the contributions made by Members in the Chamber towards it—precisely because we have not closed the door to CCS but are looking to use it, if possible, affordably and effectively. I put on record my thanks to Lord Oxburgh and the group’s members for their work.
On the specific issues raised by colleagues in the debate, I was invited by the hon. Member for Coatbridge, Chryston and Bellshill, who opened in the debate, to consider CCS as part of the industrial strategy. As I hope has been understood, we absolutely are doing that and will continue to do so.
My hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter), who is no longer in his place, asked whether we, as a country, would be affected by Brexit in this regard. I point out that, as a country, we are a signatory to the Paris agreement independently of the EU as well as through it, and it is therefore far from clear that Brexit will make a difference.
The hon. Member for Stockton North (Alex Cunningham) is right that we need to get the EU emissions trading system correct. My hon. Friend the Member for Waveney (Peter Aldous), in a very eloquent speech about the offshore potential for the UK continental shelf, said that we must be pioneers in CCS, but I slightly disagree with him on that point. There is an honourable place for us as an early mover, but not necessarily a first mover, in CCS. Such people often reap the benefits in technology and cost without taking a lot of the additional risks. That is a perfectly honourable position for this country to be in.
Let us be clear: the Committee on Climate Change seems to be contemplating a contribution on CCS from this country until 2030. No one can predict the future, so it is not clear that we are behind schedule from its point of view. However, it is very important to recognise that even the Oxburgh report is not just about a CfD, but about a potentially substantial capital cost, which would fall on taxpayers.
Let me quickly wind up my remarks in the time that remains. The Government are actively interested in and engaged with the question of CCS. I very much thank hon. Friends and hon. Members for their wide-ranging contributions to a fascinating debate. This is not an easy issue to crack, but we are focused. The Government will set out our approach in due course and use the opportunity offered by the debate to further inform our thinking.
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Vice-President Šefcovic (energy union) introduced the Commission’s clean energy package, which was published on 30 November. He highlighted the energy union governance framework, and a need for reliable, transparent and long-term monitoring that streamlined reporting as well as the need to support the 2014 and 2015 European Council conclusions. Commissioner Cañete (climate action and energy) then provided a high-level overview of each of the main elements of the package, which together were intended to ensure that the EU stayed ahead in the clean energy transition and in mobilising the Paris agreement. An informal exchange of views on the package took place over lunch. We are considering how best to work with the Commission and other member states during the forthcoming negotiations to improve the proposals in the package.
The Commission presented recent developments in the field of external energy relations, which included the Paris agreement entering into force and the recent signature of the memorandum of understanding with Ukraine.
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The Minister for Climate Change and Industry, the Secretary of State for Business, Energy and Industrial Strategy and other ministerial colleagues have had a series of meetings with steel companies across the production and supply chains, and have been able to give them the support and structure needed in that context.
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The Commission introduced the “winter package” on 30 November. As expected this is comprised of legislative proposals for the update of the energy efficiency, energy performance of buildings and renewable energy directives together with new legislative proposals on electricity market design and governance of the energy union.
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16:30
As the Committee will be aware, last Wednesday, the Department for Business, Energy and Industrial Strategy announced the details of the second contracts for difference allocation round. The announcement reconfirmed our commitment to provide £730 million of support per year to new renewables projects and that we would be open for applications for the first auction, worth £290 million a year, in April next year. That should deliver enough new renewable energy to power around 1 million homes.
By making those announcements, the Government have given developers and the supply chain the certainty they need to move forward with bids. Continued investment in renewables drives forward our commitment to move to a low-carbon energy mix, help tackle climate change and meet our carbon budget requirements. It also shows that Britain is open for business, driving investment in green technology for decades ahead and bringing jobs and investment into communities up and down the country.
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16:30
The contracts for difference scheme is designed to incentivise the significant investment required in our energy infrastructure—electricity infrastructure, in particular —to keep energy supplies secure, keep costs affordable for consumers and help meet our climate change targets, so that we can play our part in working towards the 2050 targets on climate change agreed in Paris and reinforced at the G20. We plan to run the next allocation round soon. Details have not yet been published, so I am unable to provide hon. Members with those today.
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14:51
I will address all the issues that have been raised today and talk a little further about the regulations, as the Committee properly demands. Where there is a demand for both heat and electricity, combined heat and power offers the most energy-efficient use of fuel, with the potential to deliver savings of up to 30%. The renewable heat incentive offers support for the deployment of CHP plant, including that using solid biomass fuel, recognising the role that that technology can play in decarbonising heating and power production. The Government introduced a dedicated biomass combined heat and power tariff into the non-domestic RHI scheme in May 2014. That tariff is approximately double the tariff for large biomass heat-only plants. The biomass combined heat and power tariff is 4.22p per kilowatt-hour, compared with the large biomass heat-only tariff of 2.05p per kilowatt-hour.
I agree very much that the Government have a responsibility to ensure that subsidy is in the taxpayers’ interest, and they are right to insist on a certain level of efficiency. I welcome the change that the Minister has just announced, but the Energy and Climate Change Committee’s report on investor confidence, already mentioned once, emphasised that it is important that we move away from any sort of retrospective changes. Now that energy policy is within business policy, can the Minister reassure us that this is a new beginning for energy policy?
The second point to my right hon. Friend is that although in some cases industrial strategy has been done badly, in others it has been done rather effectively. Parts of Scandinavia have seen effective industrial policy, although I am not suggesting for a second that the industrial strategy that this country develops will necessarily model that. I am sure it will take the best of all thinking on this topic. It is perfectly proper for Government to seek to decarbonise industry, given that industry has an intrinsic market-driven tendency to burden the environment with costs that it need not meet itself through what economists call “externalities”.
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18:12
We have heard many passionate speeches about climate change from Members on both sides of the House. We have gone from the Oracle of Delphi, to the Philippines, to Swansea, to Malawi. We have gone from “Star Trek” to logarithms, and from bogs to lagoons. It has been a fascinating debate. There has been great expertise, some humour and some real wisdom displayed across the House. However, one very odd thing is that this has been an Opposition debate with remarkably little true opposition. We heard very eloquent words from the right hon. Member for Doncaster North (Edward Miliband), who was very kind about the new ministerial team. We have had the hon. Member for Southampton, Test (Dr Whitehead) welcoming the fifth carbon budget. We have had the hon. Members for Wakefield (Mary Creagh) and for Wirral West (Margaret Greenwood) praising the Home Secretary. Their tone has been absolutely admirable—constructive, bipartisan, intelligent and right— and it has been echoed by other colleagues across the House, particularly the hon. Member for Aberdeen South (Callum McCaig).
I am enjoying the sedentary contributions from the Opposition spokesman, but he has had his moment. Let us focus on the two themes that came through, loud and clear, across all the speeches and interventions today. The first is that the issue of climate change is now in the absolute mainstream of our political debate. Whatever people’s specific views, climate change is recognised across all parties, in all the nations and regions of this country, as a central issue of public concern. The second point follows from that, and it is that we cannot and we must not view this country’s commitments in relation to climate change in a narrowly partisan or party political way. The Paris agreement has been welcomed by Members from across the House, as has the concerted action taken this week by China and the USA.
We can all agree that climate change is one of the most serious threats facing the world, and that has been brought home to us again today by the excellent examples highlighted in the contributions of the hon. Member for Glasgow North (Patrick Grady), my hon. Friend the Member for South Ribble (Seema Kennedy) and the hon. Members for Wirral West, for Llanelli (Nia Griffith) and for Wakefield, as well as by my brilliant colleague the Minister of State. We agree that climate change is one of the most serious threats facing the world. We agree that the UK has played, and will continue to play, a unique and important role in global action to tackle the changing climate. We agree that that action is an opportunity for growth, for new jobs and for improvements to health, to cities and to our daily lives.
That consensus is the prerequisite. It is the essential long-term basis for concerted action in this area by all Governments, at any time. It will be especially helpful to us as we look forward to the COP22 meeting in Marrakesh in November, which will help to set many of the rules relating to the Paris agreement and so will mark a shift from aspiration to implementation. That consensus, and the need to maintain it, is fundamentally why I still hope that the hon. Member for Brent North will not press this needlessly divisive motion to a vote.
The Government have made it very clear that they welcome the push by the US, by China and by other countries towards the early ratification of the Paris agreement. We remain firmly committed to that agreement and to ratifying it as soon as possible. The convention, however, is that all European Union member states ratify the agreement together, collectively. We hope that that will happen, as has been said, as soon as possible.
I appreciate that we have heard some perfectly proper concerns about the Paris agreement coming into force before the EU has ratified it. However, there is widespread international understanding that in the event that the agreement enters into force early, countries that have not yet completed their domestic processes to allow ratification to take place—very important processes of consensual ratification—should not and will not be prejudiced. Not to do so would mean that as many as 140 countries, including some of the very poorest and most climate-afflicted nations in the world, would be denied a full seat at the table. COP22 in Marrakesh in November will, I hope, take a formal decision to that effect.
Turning to recent history, few countries have been more active in decarbonisation than this one. We were the first country to set, through the Climate Change Act, a legally binding 2050 target to drop our emissions by at least 80% on 1990 levels. Far from not having a strategy, we have just signed off our fifth carbon budget, which sets the terms for the overall picture. The UK has made great progress in reducing its emissions, which had fallen by 36% by 2014 on 1990 levels. During the past five years, between 2010 and 2015, our domestic greenhouse gas emissions have fallen by 17%, which is the biggest reduction in a single Parliament. We already have domestic obligations that keep the UK well below the 2° rise in temperature goal mandated by the Paris agreement.
It has always been understood that, as has been stated, the Government would announce measures during this Parliament that will address the concerns—the perfectly proper concerns—the hon. Gentleman raises. I do not demur from the point that the framework exists, with the independent check of the Committee on Climate Change, whose suggestions the Government have, broadly speaking, in every case accepted. I do not think there can be much doubt about the structure and credibility of the long-term framework that the Government are following.
Through the Climate Change Act and the carbon budgets, Britain has an advanced model for the requirements set out in the Paris agreement, with a national plan to curb emissions and the aim to improve the plan every five years, setting progressively tighter targets. That model has been widely admired abroad, and it has proven extremely helpful and influential to other countries facing the same challenges, including Denmark, Finland and France. With the confirmation of our fifth carbon budget in July, we are in a strong position to continue on this steady path of improvement. That is the goal of this new Department. Its creation shows that climate change has become an absolutely mainstream part of our political life.
I do not know whether the Minister has seen the conclusions of the Environmental Audit Committee report, but the transport sector is set to miss one of the Committee on Climate Change’s interim decarbonisation targets by over 50%. Will he comment on some of the specific challenges facing the transport sector and on the fact that we are set to miss our fourth carbon budget for 2027, which is in nine years’ time?
I turn briefly to the issue raised by the right hon. Member for Doncaster North, namely our relationship with the EU in the context of Brexit. His words were wise, well chosen and constructive. Although we will ratify the agreement as part of the EU, leaving the EU does not mean that the UK will step back from this agenda. Indeed, let us all be quite clear that the UK will not step back from international leadership as such, and remains as committed as ever to tackling climate change. We will continue to be an outward-looking country. We have an unrivalled set of relationships around the world and membership of key international groupings through which to make the case for action and to build bridges between different views and interests, as he said.
Even after Brexit, we expect to work closely with the EU and with individual EU member states with whom we will have a continuing shared interest in pressing the case for action on climate change. We will continue to use the authority from our track record to support domestic and international climate action and shape the wider international agenda.
As I have made clear, our history of domestic climate action puts us in a very good position to build on what was agreed in Paris. The COP22 conference in Marrakesh marks an important further stage in the implementation of that global agreement. The negotiations are very complex and will take time, and we should not necessarily expect headline-grabbing outcomes. But it is important to focus on the positive side, from an innovation standpoint; some very important contributions, including that of the hon. Member for Glasgow North, stressed the importance of innovation.
Ambitious action on climate change should also lead to real opportunities for this country. As a result of the UK’s historical leadership we can build our progress towards a low-carbon economy both domestically and abroad. Low-carbon sectors are already an important and growing part of our economy. In 2014, more than 95,000 businesses were directly engaged in low-carbon and renewable energy activity, generating £46.2 billion in turnover and resulting in 238,500 full-time equivalent jobs. I particularly enjoyed and benefited from the remarks of my hon. Friend the Member for Wells (James Heappey) in that context, with his call for common sense and his emphasis on social justice and the importance of taking advantage of the economic opportunities.
I conclude by congratulating and thanking every Member who has contributed to the debate. It has been a very absorbing debate indeed. The number and quality of the speeches testify to the importance of the issues involved. The UK remains firmly committed to the Paris agreement and to its ratification as soon as possible. This country has not and will not step back from international leadership in combating climate change. We also remain committed to ambitious domestic action. The fifth carbon budget was set in line with the recommendation of our independent advisers, the Committee on Climate Change, as I have stressed. It is equivalent to a 57% reduction on 1990 levels.
We know that there will be complex challenges to decarbonising in the years ahead. That is to be expected. But our aim is to meet those challenges in a way that is fair and affordable, and maximises the economic benefit to the UK. That requires a whole-economy approach to delivering our climate change goals, one that effectively balances the priorities of economic growth and carbon reduction. Through the creation of the Department for Business, Energy and Industrial Strategy we will do just that.
That this House notes that the USA and China have both ratified the Paris Agreement on climate change; regrets that the Government has not accepted the Opposition’s offer of support for immediate commencement of domestic procedures to ratify the Paris Agreement; further notes that if the UK lags behind its G20 partners in ratifying the Paris Agreement it risks losing diplomatic influence on this crucial future security issue; recognises, in light of the EU referendum vote, the need to maintain a strong international standing and the risk of rising investment costs in UK energy infrastructure; and calls on the Government to publish by the end of next week a Command Paper on domestic ratification and to set out in a statement to this House the timetable to complete the ratification process by the end of 2016.
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18:07
I am very grateful to the shadow Minister for his comments. He and I are rapidly turning into the Mutt and Jeff of the climate change world, but it is a pleasure to address the concerns he raises.
Let me remind the Committee that this is not a matter of buying credits; it is a matter of setting a credit limit. The Government have never bought credits and do not contemplate doing so as part of either the second or third carbon budgets. It is also true to say that the Government have not ignored the Committee on Climate Change. On the contrary, we have engaged closely with it and adopted its main recommendations consistently. Here, however, there is some licence to deviate. The Government have done so in this case for the reasons I set out in my opening remarks. The first is following the precedent set by the previous budget. The Government understood that that was potentially problematic from the Committee on Climate Change’s standpoint, but we did that because we sought a degree of flexibility, and that degree of flexibility is again sought today.
I thank the hon. Gentleman for his contribution and reiterate that the Government remain committed to combating climate change. Climate change has not been downgraded as a threat, and is widely recognised across Government as one of the most serious long-term risks to our economic and national security. At the heart of the Government’s commitment is the Climate Change Act 2008 and its target to reduce emissions by 80% by 2050, as against 1990 levels. The interim carbon budgets have been set against that framework, and under the Act, we need to set a limit on the number of international carbon credits that the Government can count towards that budget.
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16:30
Having said that, I am very pleased to open the debate on the draft Carbon Budget Order 2016. The order fulfils the requirement under the Climate Change Act 2008 for the Government to set five-year carbon budgets on the path to the 2050 target of an 80% reduction in emissions. It sets the level for the fifth carbon budget, covering the period 2028 to 2032.
Before discussing the order, I will reflect briefly on the Climate Change Act and what it means at the present time. Leaving the EU will bring challenges and opportunities to the United Kingdom. However, it does not change the fact that climate change remains one of the most serious long-term risks to our economic and national security. The Act was a groundbreaking piece of domestic legislation, passed with nearly unanimous cross-party support. Its success has inspired countries across the world including Denmark, Finland and France and, at its heart, the system of five-year cycles inspired a core part of the historic Paris climate agreement.
The certainty given by the Act underpins the remarkable investment, totalling about £40 billion, that we have seen in the low-carbon economy since 2010. The fifth carbon budget level set by this order continues the certainty into the 2030s. The order will set the fifth carbon budget at a 57% emission reduction on the levels of 1990, meaning that UK emissions will be capped at the equivalent of 1,725 million tonnes of carbon dioxide. That budget level is in line with the recommendations of our independent advisers, the Committee on Climate Change, as well as the views of the devolved Administrations.
As required by the Act, the Government considered a wide range of factors in proposing that level. Key to those considerations was proposing a carbon budget that balances how to keep on track to the 2050 goal with how to cut emissions as cheaply as possible. The Committee on Climate Change and the Government agree that that budget level will put us on a cost-effective path to that legally binding 2050 target.
One should be perfectly clear that the Government do not expect the budget level to jeopardise their commitment to keeping our energy supplies secure and bills as low as possible. It is not simply Governments and experts who agree; it is clearly in line with the views of business. The Confederation of British Industry, EEF and others have all welcomed the certainty that the budget level gives in the country’s journey to a low-carbon economy. I am also pleased to see that, in line with the Act, the budget level has been welcomed across the political spectrum. The shadow Secretary of State for Energy and Climate Change, the cross-party Select Committee on Energy and Climate Change and the Scottish National party have all expressed their support.
The Paris agreement sends a strong signal to business and investors that the world is committed to long-term decarbonisation. The proposed budget level will ensure that the UK economy is best placed to realise the opportunities that that transition presents. Of course, the target is of value only if we accept the challenge of meeting it. Our emission reductions to date put us in a good starting position to do that. The UK met the first carbon budget and is on track to meet the second and third budgets. Provisional figures show that UK emissions in 2015 could be 38% lower than in 1990, and more than 3% below those in 2014. The last two years have seen the greatest annual emission reductions, against a backdrop of a growing economy, but it is clear that we need to do more to address the gap of approximately 10% currently faced in the fourth carbon budget.
The Climate Change Act requires the Government to set out their policies and proposals
In conclusion, the draft order sets the right budget level. It is in line with the views of the Government’s independent advisers, continues the UK’s leadership on climate change and has the support of politicians and businesses alike. It will provide the certainty needed for future investment in our continued transition to a stronger, low-carbon economy. I therefore commend the order to the Committee.
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16:50
The hon. Member for Brent North asked why “Climate Change” was removed from the name of the Department. There is a very positive way of seeing that, which is that it is recognised that tackling climate change is a vital part of government: it is understood that it is a central challenge for the next 50, if not 100 or more years, and in a sense it has become part of the furniture of the discussion. The point of this consolidation of Ministries is in part to allow that understanding to spread across our whole industrial strategy. That seems to me a thoroughly important thing.
The seriousness of the Government’s position can be easily gauged by the fact that we have not demurred from the testing targets set by the Committee on Climate Change. That is the overall framework that sets the context for investor decisions, so that is a clear indication of the deep seriousness with which the Government take this.
The Minister may be aware of the Ernst & Young report on the index of the best countries in the world for renewable energy investment. We never used to be out of the top 10, but in the past two years we have fallen from eighth to 11th to 13th, so there is an independent scale showing that we are going in the wrong direction. He may also be aware that Vattenfall said that in the light of Brexit it was reviewing all its renewable energy investments in the UK, including its £5.5 billion array off the east coast of England. I am not accusing the Minister of complacency, but he must take this seriously.
I was confining myself to issues specifically relating to climate change, but there are reasons to be confident about the overall position. We have seen enormous further investment in the Nissan Leaf plant in Sunderland and there are other examples of recognition of the progress that this country continues to make.
The question was raised of the impact of Brexit on the EU emissions trading system. Of course, it is far too early to say whether the UK will remain part of the ETS, but the Government take the matter extremely seriously. Even were we to end up leaving the institutions around the ETS, the effect of that would be our having increased flexibility to set our climate change targets as we saw fit. Those targets could be more testing, less testing or exactly at the level required by the ETS itself, so there need not necessarily be anything particularly problematic about it.
Finally, on the 10% gap, I would simply say that we are some way away from the policy development stage. One naturally expects—in particular in an area such as climate change and emissions control—there to be a dynamic response from the economy as these budget constraints start to get set and embed themselves. We are already seeing some of that economic behaviour and one might easily expect to see more of that to come.
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23:49
On 6 June 2013, in response to a question from the hon. Member for Wells (Tessa Munt), the Secretary of State for Energy and Climate Change said that he hoped that his Department would look into the matter. On 6 September 2013, however, a written question from me received a reply from the Department stating that it was not investigating the matter and that it was for Ofgem, which administers the scheme, and its licensed suppliers to determine eligibility for feed-in tariffs based on the legislation.
On 3 October I received a letter from Ofgem that disavowed responsibility, stating that it did not set the policy underpinning the feed-in tariffs scheme, which was the responsibility of the Department of Energy and Climate Change. The letters also said that the Big Lottery Fund grants were classified as “grants from public funds”, as the national lottery and the apparatus through which it distributes funding were established by statute. As a result, Big Lottery Fund grants were subject to the rules on state aid and it was not possible to combine a grant with the receipt of feed-in tariffs.
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