Kirsty Blackman is the SNP MP for Aberdeen North.
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We are, however, at a tipping point. There is a see-saw, where we need to see growth in jobs in renewable energy. I appreciate the comments and commitments that the Government are making, but if the change is to happen, we cannot lose the skills we have in oil and gas, because those people will go abroad to use their skills. We need to have that see-saw effect. We cannot pull oil and gas down in advance of putting renewables up. I have spoken incredibly passionately and regularly on climate change and the need to meet our targets, but the UK Government must consider the gap there will be in the middle if they choose to take action too quickly without ramping up jobs in renewables.
Full debate: Scotland’s Economy
The Chancellor has been clear that the biggest losers from the Budget are oil and gas. Let us say that that was on the basis of the Conservatives’ really strong commitment to reducing climate change. It is not, by the way, but let us say for a moment that what they are doing is about ensuring that climate change targets are met and that we are getting closer to net zero. In that case, there would be a see-saw and a balance. They would be increasing the tax on oil and gas and increasing the investment in renewables, which is incredibly important. If we are to have a tax raid on the North sea, which impacts on communities such as mine in Aberdeen that are heavily reliant on oil and gas jobs, we need green investment, such as long-term funding decisions on carbon capture, usage and storage, which would bring in £30 billion of private investment.
The UK Government, however, are for some reason—possibly because it will be a big pre-election gimmick—refusing to make those decisions right now. They are refusing to put in the £28 billion a year that we need to secure jobs in a green future and to get that bonanza. We have such huge potential in renewable technologies, and we are failing to get there because the UK Government fail over and over again to put their money where their mouth is and make commitments. In fact, their mouth is in the wrong place on this as well. Now they are talking about cutting the green crap; they seem to have reverted to type on that. Their investment is at the lowest levels in the G7. It is shocking that the UK Government are refusing, and failing, to tackle the biggest issue of our time, which is climate change.
In Scotland, we have a focus on wellbeing: our decision-making processes go through a wellbeing lens. We do not just say, “Right, in our budget we are going to focus on GDP growth because that is the most important thing.” The most important thing is the wellbeing of our population. We ensure that people are better off and mentally and physically happier as a result of our decision making. For example, we ensure that our climate change targets are met so that their children and their children’s children have a planet to grow up on. We ensure they can afford to live. That is why we have things such as the Scottish child payment, free school meals for P1 to P5, baby boxes and free bus travel for under-22s. I do not know how many Members remember being under 22 and being totally frustrated at how much transport costs. People are able to make their way around Scotland, or even just get to school or uni, more cheaply than they could before because under-22s, eligible disabled people and those aged 60 and above in Scotland have free bus travel. That makes a real difference to people’s lives day in, day out, especially given that the cost of buses in Aberdeen is something like £5.10 a day at the moment.
Full debate: Budget Resolutions
I will just mention a couple of other things. Regarding climate change and a just transition, energy prices are going up. The UK Government are putting through the Offshore Petroleum Licensing Bill to ensure that there is more licensing of oil and gas fields, which will make absolutely no difference to the prices that people pay for their energy. What it will make a difference to is the profits of those energy companies—that is where it will make a positive difference. Those companies will have higher profits if they are able to carry out more exploration and have more fields licensed as a result of those explorations. It takes something like 16 years for a field to come through, so licensing more today will not make any difference to the prices that my constituents are paying for their energy.
The Government are doing these things, making these decisions and making statements about climate change, for example about electric cars, in the face of ever-increasing extreme weather events and ever-increasing climate change. The world is not meeting its climate change targets, and if we ask young people what they are concerned about, we find that it is climate change. They are particularly concerned that our political leaders are refusing to concede that climate change is the most important issue and needs to be tackled. The UK Government need to lead from the front but they are absolutely failing to do so. They should be supporting renewable energy—energies of the future—rather than pouring more time and energy into increasing the amount of fossil fuels that we are getting out of the sea.
It is grim that we end up in this situation and the UK Government can just say, “No, we don’t want to let them have an independence referendum. It doesn’t matter how many people in Scotland want independence; it’s up to us. We are going to make those decisions on behalf of the people of Scotland,” just as they are making so many other decisions on behalf of the people of Scotland. But the decisions that they are making about immigration, human rights and climate change are not being made in the name of the people of Scotland. We need the chance to take that lifeboat to get out of here so that we can make our own decisions—the right decisions for the people who live and work in Scotland—rather having decisions made by the Westminster Government, whoever it is that they are making those decisions for, because they certainly are not making them for the benefit of the general population.
Full debate: Next General Election
Farmers and crofters absolutely deserve a fair return for the costs and risks involved in their work. They produce the highest quality food and drink. Also, the environmental benefits of their work are significant. The landscape management and climate change mitigation work that farmers do has been mentioned, as well as the economic benefits of farming. All those things are important. Contracts should reflect the real costs of farming and should allow for regular review as well, especially in the event of unexpected shocks.
Full debate: Groceries Supply Code of Practice
In the last 13 years, the six oil and gas licensing rounds by the Tories have produced 16 days-worth of oil and gas for the UK. Will the Prime Minister explain how doubling the number of licensing rounds will have any impact on the insanely high energy bills my constituents are facing? If he cared about energy security, jobs or the environment, he would surely be better matching the Scottish Government’s £500 million investment in a just transition and providing a £400 rebate to bill payers.
Full debate: Engagements
In terms of science and technology and development of things, there is the Advanced Research and Invention Agency, and I was on the Bill Committee for the related Bill. I asked for ARIA to focus on renewable technology and on technology that would ensure we are moving towards meeting our climate change objectives, and towards net zero. The Government refused that. I do not imagine the Minister could tell me now, but at some point it would be useful to know whether ARIA has been directed in any sort of way to focus on green technology. It is important that with those cool, new inventions coming out as a result of that Government funding going to ARIA, we consider tackling the most important issue facing the planet today, and ensure that we meet our objectives in relation to that.
We previously called for tax relief or a subsidy scheme, like the US and the EU have, to encourage green energy companies to invest. It is pretty shocking that the Government of Malaysia own more of the UK’s offshore wind capacity than UK public bodies. I think UK public bodies should own it, but one of the issues is that pension funds have not had the flexibility to invest in a lot of renewable technology. Anything the Minister can do to push the Chancellor to ensure that pension funds have the extra flexibility to invest in green tech would be incredibly important. We know that these things will make money; they are technologies of the future.
On consistency and certainty for companies, I am concerned that the UK Government’s direction of travel on things such as AR5, and the Prime Minister’s statements about cutting back climate change targets, including on net zero, have affected investor confidence. Since I became an MP, all that the energy companies have asked of me is that they have certainty, particularly on things such as tax regimes. Companies are genuinely finding it difficult to convince investors to invest in the United Kingdom, because investors are concerned that the Government will stop backing these things. The more positive statements the Government can make about things such as floating offshore wind, the more confidence they will give the industry to make final investment decisions and ensure that as many of these projects as possible go ahead, whether in the North sea or the Celtic sea.
Full debate: Floating Offshore Wind
The Government have missed the opportunity of renewables, and not just in terms of capitalising economically on climate change and the move towards a just transition. In fact, they have missed the opportunity to invest in amazing innovations in renewable technologies and to export them around the world. During the oil and gas boom, Aberdeen in north-east Scotland became known for exports. My constituency was top for the number of patents per head of population. There is an amazing amount of research and development as a result of the oil and gas industry. We are seeing declining amounts of oil and gas and an increase in the number of countries looking to capitalise on and use renewable technologies. Because we are not seeing investment in things such as carbon capture, utilisation and storage, we are not able to stay ahead of the curve and use that tech to assist other countries around the world in the way that we were able to do with oil and gas.
The party’s policy is that every new oil and gas licence should go through a rigorous environmental assessment. As much as the Conservatives try to paint it as something else, that is the party’s policy. The vast majority of my constituents who contact me would like no new licences to be granted. Far more constituents contacted me to tell me that Cambo was a disaster and should not go ahead. I have a large university in my constituency, and a huge number of people from all around the world, who are massively concerned about the impacts of climate change. I urge the Minister to come and spend some time in my constituency, to see the passion on the ground for a just transition.
My constituents really like having jobs. Most people do. It is great to be able to take a salary home. My constituents, in the main, are not terribly fussed if the job that pays them lots of money is in oil and gas or in the renewables sector. When I talk to people, they tell me that they would like a good job. Those people in the oil and gas industry ask for their tickets to be transferable so that they can go to offshore wind just as easily as they can go to oil and gas platforms. The UK Government have failed to capitalise on that. They failed to invest in CCUS. In fact, back in 2015 the then Chancellor pulled the plug on CCUS without even telling the industry. He stood at that Dispatch Box during the Budget and did that.
Full debate: UK Export Performance
Obviously, we have a declining ability to access oil and gas. We are doing what we can to move towards a just transition. Scotland is doing what it can to meet its climate change targets and try to provide economic certainty for the regions. We have put additional moneys into the just transition, which the UK Government have failed to match. Although the UK Government are not doing as much as I would like on that just transition, there is still a significant amount to learn and a lot of positive knowledge to share to ensure that the transition away from hydrocarbon-based economies is as non-negative as possible.
Full debate: UK’s Relationship with Mexico
Before I get into much of what I am going to say, I just want to confirm an announcement that has been made in the Scottish Parliament today by our Minister for Net Zero and Just Transition, Mairi McAllan. She said: “I can confirm today that the proposal as consulted on will not be progressed. This means that we will no longer seek to implement HPMAs across 10% of Scotland’s seas by 2026.”
Full debate: Fishing Industry
On CCS, I am pleased to hear that something is happening, but the previous version of the Acorn Project was pulled by the Chancellor during a Budget speech 10 years ago. We need investment in the Acorn Project in Peterhead, Aberdeenshire.
Full debate: Budget Resolutions and Economic Situation
In spite of a decade of real-terms pay cuts and the lack of flexibility in the Scottish budget, we will keep on fighting for a better and fairer Scotland. On Thursday, the Minister of State, Department for Energy Security and Net Zero, the right hon. Member for Beverley and Holderness (Graham Stuart) accused me of using the need for a balanced budget in Scotland as a convenient scenario. It is not convenient! It is incredibly inconvenient that Scotland has to have a balanced budget and that we cannot therefore make the offers we would like to make and provide people with cost of living uplifts. We have been arguing for decades for independence for Scotland so that we do not have to work within this framework and so that we have the ability to make our own choices about spending and about the money that we have as a Government to spend. The UK Government’s continued cuts to the budget mean that our budget is less and we do not have the power or the flexibility to sort out that situation.
Full debate: Civil Service Pay
“The strategic priorities to be included in the statement must include, but are not limited to…achieving targets set under the Climate Change Act 2008 and the Environment Act 2021”.
The Government passed those Acts. Why do they not intend them to be a strategic priority? Were they just things they passed in order to tick a box? If tackling climate change is a priority, clearly it should be part of the national procurement priorities.
Full debate: Procurement Bill [ Lords ] (Second sitting)
Again, climate change issues are not embedded in the Procurement Bill. It does not take into account the climate change targets in Scotland, for example. Every Government should be focused on the impact that every single thing that they do will have on the climate, and on future generations as a result of the climate change it will cause. The UK Government should be leading by example by having that thread running through everything thing they do, but they refuse to. There is no point in just talking about climate change; we need to make sure that we are focusing on it in every single thing that we do. The UK Government are failing to put actions in place; they are only using words.
Full debate: Public Procurement Processes
We have further concerns about the Bill, and I hope the Minister will accept them in the constructive spirit in which they are meant. We believe that the UK Government must ensure that supporting environmental objectives is clearly and explicitly included in the Bill’s objectives. Those objectives should be compatible with the Scottish Government’s more ambitious climate change reduction targets. If the UK Government are to act in such a way on reserved matters, they need to take account of the fact that the devolved legislatures have different and more ambitious climate change targets.
The Bill includes a discretionary exclusion group for environmental misconduct, but I am not clear why that exclusion should be discretionary. The UK Government are failing time after time to embed environmental objectives in legislation. They refused to do so with the Subsidy Control Act 2022 or with the creation of the Advanced Research and Invention Agency, despite the Opposition pushing them to include it. It is as if they are keen to have big headlines on climate change targets, but not actually to embed them and do the actual work, and not to put those targets where it matters, which is explicitly in legislation that this place is putting forward, without exclusions and without discretionary rules. It should be embedded in every single thing we are doing, because it is the most important issue for this generation and for future generations. The Bill must explicitly commit to taking environmental considerations into account when awarding contracts, and that should be a core consideration, not a pointless box-ticking exercise.
Full debate: Procurement Bill [Lords]
The UK Government have also failed to tackle—in fact, they have gone out of their way to oppose—our climate change ambitions and targets in this Finance Bill. We are looking at issues in relation to electric cars, as was mentioned earlier, and allowances for oil and gas companies to extract more oil and gas, rather than the allowances that could be given to companies to develop renewable electricity. The electricity generator levy is also being levied on people who are producing renewable energy, which is the kind of energy that we need. We cannot talk about COP only once a year when it is COP26 or COP27—it should be threaded through every single decision that we make.
We have heard about R&D credits and tax reliefs, which I do not have a problem with in principle, although I am concerned that we need to see whether they work. I do have a problem, however, with how decisions are made to give people R&D tax credits. When the UK Government created the Advanced Research and Invention Agency, why did they refuse point blank any amendments that would have put tackling climate change at the heart of its decisions? We said that it should be climate neutral and that the Government could lead the way with a brand-new Government agency working on a net zero basis, but they refused. We said that they could convince or ask it to focus on innovations and inventions that tackle climate change, but they refused to do that, too.
We need to see an actual effort made—actual things done and decisions taken—to ensure that we tackle climate change and meet our net zero ambitions. If we could meet our net zero ambitions even earlier than we have proposed, that would be the best thing for the planet, rather than trying to push things until the last possible moment. We cannot just ignore climate change and pretend that it is not happening—it is!—so it should be in every Government statement, and the Government should talk about the effect on climate change of every spend that they decide to make. The decisions in the Finance Bill take us backwards rather than forwards.
The Scottish Government are supporting a just transition in Scotland with £500 million of funding to ensure that we move away from the reliance on fossil fuels that we absolutely have in the UK, particularly in Aberdeen, where there are a huge number of jobs in oil and gas. We need to support a transition that is just and fair for my constituents and for people across the UK. We need to ensure that people in oil and gas are given, or have the opportunity to move into, high-earning jobs in the new industries of the future that do not cause an increase in climate change.
Full debate: Finance Bill
We cannot afford to continue having our resources squandered by Westminster. We cannot afford to go without energy market reform. We cannot afford trickle-down economics. We cannot afford the UK’s xenophobic immigration policy. We cannot afford to keep people having no recourse to public funds, which is making some of the poorest people in the UK even poorer still. We cannot afford a UK Government who refuse to increase the minimum wage. We cannot afford to keep having our workers’ rights stripped. We cannot afford locally—the hon. Member for Banff and Buchan (David Duguid), who has just stepped out, mentioned this—to have a UK Government who refuse to match Scotland’s funding for our £500 million just transition fund.
Full debate: Scottish Independence and the Scottish Economy
I want to pass on a comment from my hon. Friend the Member for Glasgow Central (Alison Thewliss), who highlighted to me what happened to St Albert’s Primary School at the beginning of this month or the tail end of last month. The First Minister of Scotland went to visit the school on 30 September to celebrate the work that it was doing on tackling climate change. As a result, the school was subject to horrific racist abuse. Thousands of racist messages were sent to St Albert’s Primary. I want to highlight that, because it is one of the reasons that we need this legislation. That abuse was aimed specifically at children and was genuinely horrific. I urge the Minister to look at that case so that he is aware.
Full debate: Online Harms
There are other risks that have not been mentioned in the Chamber today. Bilateral work on tackling climate change and on tackling the Afghan refugee crisis is currently on ice because of the present situation. Regardless of escalation and nuclear uranium enrichment, the climate crisis and the Afghan refugee crisis are not going away. We must work to tackle them. As several hon. Members have said, we must ensure that we put people at the heart of our approach and that we work to improve human rights in the region, as well as ensuring that the people of Iran are decoupled from the action of their Government and given the opportunity to flourish.
Full debate: Iran’s Nuclear Programme
So many people on universal credit, whether or not they are in work, are actually living below poverty lines. It is a devastating situation. I get that the Government have had other priorities, such as Brexit and covid, but, as has been said, this is the most important issue. In Scotland, we are doing everything we can to put it first. We had a discussion with the Government about freeports. When freeports were being created in Scotland, the Scottish Government wanted two things: to prioritise green jobs and fair work. The UK Government disagreed and said, “No. You cannot prioritise those two things in freeports. You cannot prioritise tackling climate change and fair work.” As was said, those should be the most important things. This Government have got their priorities all wrong. There is a timing issue, but it is still possible to prioritise workers’ rights, when we have seen our constituents’ savings fall. There has been some increase in savings, but that has been for those people who were already earning plenty of money. There has been a massive hit on the finances of those earning the least.
Full debate: Taylor Review of Modern Working Practices
New clause 2— Annual report on climate change impacts —
‘(1) The Secretary of State must once every 12 months lay a report before Parliament setting out the impact of subsidies granted in the preceding 12 months on the environment and climate change.
(2) Any report under subsection (1) must include an assessment of the impact of subsidies granted in the preceding 12 months on the UK’s ability to achieve net-zero emissions by 2050.
This new clause would require the Secretary of State to lay an annual report before parliament detailing the climate change impacts of subsidies granted that year.
‘(c) consistency with the United Kingdom achieving its net-zero commitments established under the Climate Change Act 2008.’
This amendment adds consistency with the UK’s net-zero commitments as a particular consideration for public authorities before deciding whether to give a subsidy.
‘Net Zero
H Subsidies should not normally encourage behaviour which will have a negative effect on the achievement of the UK’s net-zero commitments.’
This amendment adds a subsidy control principle relating to the UK’s net zero commitments.
‘(c) delivering the UK’s net-zero commitments established under the Climate Change Act 2008.’
This amendment would ensure that subsidies related to energy and the environment incentivise the beneficiary to help deliver the UK’s net-zero commitments.
Full debate: Subsidy Control Bill
The last issue we have is about climate change, which should form part of the key principles. I know that the principles can be updated, including by future Governments, but, for the Bill to stand the test of time, reaching our net zero targets should have been put at its front and centre. I appreciate the Opposition tabling an amendment to that effect. The Liberal Democrats did the same, as did we. This is so important and we feel that the Minister and the Secretary of State are abdicating some responsibility on that.
Full debate: Subsidy Control Bill
I am delighted to be called to speak first after the hon. Member for Brighton, Pavilion (Caroline Lucas), who I thank for securing this debate on the most important issue. I genuinely cannot imagine two more important priorities for an independent Scotland than ensuring that we have action on climate change and that we put wellbeing at the front of everything we do.
Full debate: Climate Goals: Wellbeing Economy
When making any modifications to a licence, subsection (4) requires the Secretary of State to take into account both our commitment to decarbonising the power sector and the interests of existing and future consumers with respect to the cost and supply of electricity. Alongside that, and to ensure that any RAB project is financeable, the Secretary of State, when making modifications under the clause, must have regard to the costs incurred in delivering the project and the need for the company to finance that activity. Together, those obligations will ensure that the modification powers are used so that the project contributes to a transition to a low-carbon, low-cost energy system.
Full debate: Nuclear Energy (Financing) Bill (Fourth sitting)
The Scottish cluster is ready to go. We can make the track 1 timetable. The Government have accepted that we meet all the criteria. I do not understand why the Government have taken this decision in the face of the Climate Change Committee’s recommendations about how much carbon capture is needed to meet our climate change obligations, or even in order to meet the Government’s own climate change obligations.
I see absolutely no reason why the Government have chosen only two clusters. I am not criticising the fact that the Government are finally proceeding with CCS—I think that is great. However, it seems so arbitrary and deeply unfair that the Scottish one has been put in reserve, given that it is ready and given that we can progress it right now. I would love the Minister to answer why the Government have chosen to progress only two and, if they continue to progress only two and not move to three, how they will meet the storage obligations. How will they meet the carbon capture suggestions made by the Climate Change Committee, which the UK Government have said they will do? How will they meet those targets if they do not progress the Scottish cluster?
Full debate: Carbon Capture and Storage
We hope to have green ports in Scotland, and the failure of the UK Government to agree that we can pay the real living wage and focus on net zero within those green ports means that the freeport system, as it stands, is not nearly as advantageous as it could or should be. Even though the freeport system is set up to encourage such things, I have not seen evidence that it will actually do so, particularly given the rejection of the key principles we want to put in place.
(a) delivering a secure, affordable and sustainable energy system and a well-functioning and competitive energy market, or
“a secure, affordable and sustainable energy system and a well-functioning and competitive energy market”.
Full debate: Subsidy Control Bill
It is really unfortunate that we have not had much co-operation between the UK and Scottish Governments on green ports, in particular when we have been clear about the key things that we want: a focus on net zero and a focus on the real living wage. It is completely reasonable to say that people working in and around green ports, cruise ports or any other kind of port should be paid the real living wage. One of the biggest concerns that I hear, in particular on—slightly off topic—oil and gas supply vessels, is that people are not paid appropriately because they are on tickets from other countries and therefore they are paid less.
Full debate: Cruise Industry
And what we are doing is just what the hon. Gentleman suggests: pointing scientists in a direction, saying, “Please could you do something about climate change? Please could you do something about our commitment and our journey to net zero?” and then letting them go. It is not about restricting them.
One of the things that has bothered me throughout is that most people seem to think that all this agency will do is invent widgets. Science is not all about making things. One of the biggest things that we need to do to tackle climate change is to convince every single person to change the way they live so that we can reach our targets. We will not be able to do that without scientific research into how people work and what changes they will make. That is not about creating widgets; it is about ensuring that we are on the right track and making the right changes for people to be able to do things in their lives in order that we can move towards net zero. I think that restricting ARIA to dealing with the most important challenge in our lifetimes is not too much of a restriction. It is a huge, wide thing.
One thing that really concerns me about progress to net zero is that an awful lot of folk are going to be left behind. An awful lot of these things that are made will be sold. Yes, great; that is going to make a lot of difference to the lives of people who already have money, but people who currently have nothing will find it even more difficult if we approach climate change with the stick method and require them to make changes or pay more for their energy when they already have very little money. Those are the challenges that I would like to see ARIA tackle, so that none of our constituents are left behind when we are moving to net zero.
I wrote to the Chancellor last week after a meeting with Aberdeen Climate Action about net zero organisations. Lib Dem new clause 3 suggests that ARIA should be net zero in every year. ARIA absolutely should be net zero in every year—that was one of the amendments we moved in Committee—because we should be saying that anything new should not add to our carbon emissions but reduce them or, at the very least, leave them neutral. The Government were not willing to accept that amendment in Committee. I am glad that the Lib Dems have put it forward again, because it is so important. If we are saying that we are going to be leaders and we are going to make a difference, new organisations such as ARIA should be net zero from the very beginning, and we should commit to that. If we are going to be net zero by 2050, everyone will have to make a contribution to that, and that includes ARIA.
Full debate: Advanced Research and Invention Agency Bill
Other than the money and accessibility, the other hugely important thing that needs to be taken into account is the need to be environmentally friendly. We cannot just say, “Well, we don’t have very much money for this so we are going to put carbon neutrality down the agenda for refurbishing the House of Commons.” This place talks so often about wanting to be a leader and to model good behaviour; if we cannot ensure that the building is as carbon-neutral as possible, we will fail to meet our climate change obligations and to ensure that future generations are not further harmed by climate change.
Full debate: Restoration and Renewal of the Palace of Westminster
Even if the Government are unwilling to accept the amendments that we have tabled—they should accept them, because, as I have explained, £200 million a year on solving climate change is not a bad thing, even though I think we should be spending significantly more than that—they should be clear about the point of ARIA. How are we are measuring performance? How do we know whether it has succeeded? Do we know that it has succeeded if it has spent lots of money? Do we know that it has succeeded if it has funded lots of projects? Do we know that it has succeeded if it has made a difference to the level of productivity within science, research and development in the UK, or to productivity in the UK in general? Is it succeeding if it is coming up with technologies that will improve lives?
Full debate: Advanced Research and Invention Agency Bill (Fourth sitting)
In the last debate on this issue, I mentioned Vision 2035, which has been followed by Roadmap 2035, both of which are about ensuring we move towards net zero while continuing to have a successful oil and gas sector in the UK for many years. We spoke about the importing of oil and gas to the UK to meet our energy needs, and that is a concern for a number of reasons. There is a carbon cost to importing oil and gas, because of the ships or however it gets here. There is also an additional carbon cost in its extraction. If we are moving to net zero extraction under Vision 2035 in the UK, we will ensure that as little carbon as possible is expended in the extraction process, but other countries that extract oil and gas may not be so far along that route, so there may be a differential in the carbon costs of extraction. If the Government intend to import more oil and gas in the future, I ask that they look closely at where we are getting it from and at the related carbon cost. We cannot say it is not our problem because it is being extracted somewhere else, so it is somebody else’s problem; that is not how this works. If we are using that oil and gas, we need to own up to the carbon created in its extraction. That is incredibly important.
We can also export our capability to move towards net zero extraction to ensure that we level up places around the world that extract oil and gas, and reduce the amount of carbon they create during the extraction process. We can be real world leaders not only, as I mentioned last time, in working in a super-mature basin, which we already are, but in exporting our safety culture and net zero culture in the extraction process.
If we have surplus capacity in, for example, the Acorn system, once it is up and running, we should store carbon from countries around the world and charge them to do so. That is a great way for us to make additional revenue. I hope that we will do what we can, and the Government will do what they can, to ensure that CCS gets off the ground and gets working as quickly as possible, and that the Government make it unequivocally clear that they support CCS and will not pull the rug out from under it again. We cannot afford to do that; we cannot afford to look at a net zero future without carbon capture and storage. We must make those moves.
Lastly, on a just transition and net zero, my hon. Friend the Member for Aberdeen South (Stephen Flynn) mentioned that we want to ring-fence oil and gas revenues to ensure that we are moving towards net zero. That is not about changing the tax regime, but about hypothecating that tax. During the Budget process, we do not have the opportunity to make amendments to say that that is what we want. During the estimates process, there is not the opportunity to make amendments to ask for hypothecation to happen. However, we can press strongly and say that that is what we want to happen. We want the money to be ring-fenced so that we can move towards net zero. We ask that 12% of the revenue is ring-fenced for places such as Aberdeen, Falkirk and Shetland, which rely heavily on oil and gas and will need assistance to make a just transition.
I want the entire city to be assisted in the transition process, and all the people in Aberdeen and Aberdeenshire, not just those who work in oil and gas, to be helped to access the services they need and housing they can afford. That goes for Moray, Banffshire and other places. The just transition needs to happen for people working in oil and gas, but also for our city and region as a whole.
Full debate: UK Oil and Gas Industry
I wish to look at the economic impact of failing to support technologies that help to meet our climate change targets. In Scotland, we have the skills, ability, capacity and geography to become world leaders in these technologies, but we need the UK Government to stop messing around and to take their responsibilities seriously. We must have immediate action to support and invest in carbon capture and storage technologies. We are uniquely placed, with our geology, to capitalise on this and to become world leaders in this space, and we cannot have the situation that happened when George Osborne was in the Treasury: he pulled funding at the last moment for these vital future technologies for our country.
This is a hugely concerning direction of travel and it comes despite climate change and things potentially warming up. We need to have energy-efficiency measures. For example, if we want to decarbonise our gas networks, we need to do things such as adding hydrogen and biomethane into the mix. We also need to do things such as ensuring that we have incredibly energy-efficient homes, be that in new homes or through retrofitting older homes. Aberdeen has a campaign to put insulation in granite tenements, which are particularly difficult to insulate and particularly common in Aberdeen. That has made a massive improvement not just in terms of energy efficiency and climate change targets, but in terms of the wealth of those people, who no longer have to pay those immensely high heating bills.
I am shocked that the UK Government would try to convince us to vote for anything that they refused to do an impact assessment on. I take this opportunity to throw down the gauntlet to all MPs who represent Scottish or Welsh constituencies: they should all walk through the Lobby with us to support amendment (h). If they do not support the rights and desires of the people of Scotland and of Wales, they will be doing a disservice to their constituents, their constituencies and their countries. The amendment must be agreed tonight, because we must recognise the importance of freedom of movement and the negative impacts in respect of inequality that the Government are having, and we must do everything we can to recognise that there is a climate emergency and to ensure that solid action is taken to step up to the plate and become world leaders.
Full debate: The Economy
The Conservative Government have not supported the solar and battery industries. There is a climate emergency, so we need much more support for renewables. The UK Government are not supporting onshore wind. We would love there to be more onshore wind in Scotland, but we cannot make that happen because of the lack of support from the Government. If we are to be more reliant on renewables—I think we all want that—and less reliant on fossil fuels for our electricity needs, we need better battery storage. If this order has a negative impact on the development, creation and installation of battery storage, we will be much less likely to meet our climate change obligations and reduce the amount of carbon we are producing throughout the countries of the UK.
Full debate: The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019
I associate myself and my Scottish National party colleagues with the comments of others. Our thoughts are with the veterans gathered in Portsmouth today to commemorate the anniversary of D-day. Today is also World Environment Day—an important reminder that climate change remains the biggest challenge facing the world. I also wish a very happy Eid Mubarak to all those celebrating across the UK today.
Yesterday, Donald Trump said that the NHS was “on the table” in the trade talks with the UK. Today, he says he is not so sure. This is someone who does not even believe in climate change—a President who simply cannot be trusted. Why, then, are the UK Government so obsessed with pursuing a trade deal that puts Scotland’s NHS at risk?
Full debate: Engagements
Climate change is the biggest crisis facing the world today. Even the Environment Secretary has admitted that this Government have failed to do enough. Yesterday, he promised that the UK Government would take action. This Government have spent millions on nuclear power, cut support for renewable energy projects and continued to pursue fracking. Does taking action include reversing those damaging policies?
Full debate: Engagements
I do not think that that answer recognises the scale of the challenge that we face. The Scottish Government have already brought forward a Climate Change Bill with some of the most ambitious statutory targets of any country in the world, with the aim of Scotland being carbon neutral by 2050. If we need to go further, we will. The UK Government commissioned new advice from the UK Committee on Climate Change on what the UK’s targets should be, and that advice is due next week. Can the right hon. Gentleman confirm that when the advice is published next week, the UK Government will adopt the recommended targets immediately and in full?
Full debate: Engagements
Such a beneficial undertaking would help both businesses and households to reduce drastically their waste streams and so cut their work-related and living costs. It would also go a very long way to helping the UK to meet its energy and greenhouse gas emission targets on the way to becoming a zero-waste, zero-carbon economy. As well as securing existing jobs and helping to create many new ones in the reuse, repair and recycling sectors, adopting the amendments that we are calling for would undoubtedly help to protect urban, suburban and natural environments where illegal waste dumping continues.
Clause 64 increases the standard and lower rates of landfill tax in line with inflation from April 2019, as announced in Budget 2017. Landfill tax has been immensely successful. Since its introduction, the amount of waste disposed of at landfill sites has fallen by more than 70%—of course, we would like to go further—and the benefits of that reduction are twofold. The first is to the economy: we have made better use of scarce resources rather than simply tipping them into holes in the ground across the country. Secondly, greenhouse gas emissions from decomposing waste are reduced. When waste is diverted from landfill, we promote more sustainable waste treatment, such as recycling. We are committed to moving towards a more circular economy, and we are working together with business, industry, civil society and the public to achieve that valuable aim. Landfill tax is an important fiscal lever that we can use to achieve it.
Full debate: Finance (No. 3) Bill (Eighth sitting)
VED: taxis capable of zero emissions
Full debate: Finance (No. 3) Bill (Seventh sitting)
When the deliberations were taking place with the Government, was any consideration given to climate change, the Paris agreement and the sustainable level of oil extraction? Was the fact that we will need to leave a substantial amount of oil in the ground— 80% by some estimates—to ensure we play our part in tackling climate change and remaining within the Intergovernmental Panel on Climate Change targets taken into account?
The Government have taken steps on electric vehicles and the Scottish Government are doing incredible things to promote them. They are increasing insulation in houses, because domestic heating is a significant contributor to climate change. A lot is being done in this space, and it has been recognised that Scotland has the most ambitious climate change targets in the world.
Full debate: Finance (No. 3) Bill (Fifth sitting)
The other part of the jigsaw that is missing is a commitment to reducing the harmful climate change effects of the use of fossil fuels. In 2015, the UK Government cancelled their £1 billion carbon capture and storage competition, just six months before it was due to be awarded, after spending £100 million on it. That left Peterhead—a key candidate for support—behind. After three years of research and development, we have missed out on this vital industry of the future. The UK Government need to make an unequivocal commitment to supporting the development of CCS.
My hon. Friend makes a powerful point about carbon capture, and about the betrayal of the £1 billion project at Peterhead. Does she agree that, if the UK Government are serious about meeting the climate change targets under the Paris agreement, spending £100 million now, when we are behind the pace after abandoning a three-year £1 billion project, is just not good enough?
Absolutely. The potential benefits of CCS are unquestionable and, as my hon. Friend says, we need to get ahead of the curve again. We need the UK Government to commit to putting the money in now. That is especially important because their pulling the plug means there is now a lack of trust among the companies that are developing CCS. The UK Government need to make a clear and unequivocal commitment.
Lastly, in order to reduce climate change and to increase the use of healthier methods of transport, this Budget was an opportunity to reduce VAT on bikes. Just as we would like to see VAT removed from digital books, reducing VAT on bikes would make them cheaper for all and would be a real statement of intent from the Government on reducing climate change.
Full debate: Budget Resolutions
The hon. Member for Moray (Douglas Ross) was very clear about how important it is that his constituents are protected, which I completely agree with, but I was concerned about his disregard for the flora and fauna that we also need to protect. A huge number of people have raised concerns about the effect of plastics in our oceans, for example, and I think many of our constituents would be hugely concerned about the impact on marine wildlife of any changes that are sought. That is why it is important that any decisions on protecting areas from coastal erosion are made with the best information, and why the Scottish Government have funded the national coastal change assessment. Phase 1 is completed and they are on to phase 2. Given the dramatic effects of climate change, and that coastal erosion is speeding up, it is incredibly important that any decisions are taken while looking at the current effects of climate change. It is an ever-moving feast and we need to have the best possible information before taking any decisions.
Full debate: Coastal Erosion
The industry is in a good place, which is surprising after everything it has been through. There is a positive future. One of the amazing things it is doing is focusing on decarbonisation. That seems a bizarre thing for the oil and gas industry to do, but it has more of a need to do it, and more of a responsibility to do it, because it is the oil and gas industry. I am pleased that that has been written into what the Oil and Gas Technology Centre is doing, and that all the oil and gas companies, working together in ways they never have before, are positive about looking toward decarbonisation.
Full debate: UK Oil and Gas Industry
I need to flag up the issue of carbon capture and storage. I have already said that the way in which this Finance Bill has been produced has been a complete guddle. The issue of carbon capture and storage highlights the very worst of the UK Government’s Treasury and how it has behaved in the past. Because the Treasury and the previous Government went, in effect, above the head of the Department of Energy and Climate Change, the £1 billion ring-fenced budget that was in place was pooled with no warning, and carbon capture and storage was left dead in the water. The Scottish Government have recognised the importance of carbon capture and storage to our future energy strategy, and they are providing money to explore the possibility of reviving the project. It is really important that Scotland prioritises projects such as this and that they proceed. This is one of the clearest examples I can remember of the Treasury completely ignoring advice from officials and, indeed, from Ministers. I hope that this Treasury makes different decisions from those of the previous Treasury and moves forward in a more collegiate manner. Particularly because this is now a minority Government, the Treasury can no longer behave how it likes and get away with it. It needs to talk to people and listen to their answers.
Full debate: Finance Bill
The other thing about this, which the great repeal Bill will show, is that it is a Government power grab. We have been protected from the worst excesses of these right-wing Governments by the European Union. For example, it has protected our workers’ rights, our equality rights and our climate change laws. Now, however, the Tory Government and the unelected Lords are going to be able to dictate to this country all of the law, and we are not even going to get the benefits they said we would. They said we would suddenly be exempt from state aid rules, but we will not. That is not what happens, as the WTO has rules on state aid, and so do any links with European trading partners.
Full debate: European Union (Notification of Withdrawal) Bill
Does the hon. Gentleman agree that this would be a relatively cheap way of incentivising householders and energy-saving products in addressing some of the damage that the Government and the previous coalition Government did by, in effect, dismantling the green energy policy they claimed to support at the outset?
From cuts to solar subsidies, to the scrapping of onshore wind, to the scrapping of the green deal for energy for energy-efficient homes that the hon. Gentleman mentioned, to the selling of the UK Green Investment Bank—there are numerous other examples—this austerity-obsessed Government are taking the UK backwards with regard to renewable energy. I fear that with Brexit looming on the horizon this trajectory is set to continue. Given this environment of cuts, it seems logical for the installation of energy-saving materials to be exempt from a hike in VAT, as a bare minimum.
Full debate: Finance Bill
I rise to support amendment 183 on the changes to the climate change levy. The UK Government’s idea to have a climate change levy was admirable. It was introduced in 2001, and it has been a positive step. It is completely reasonable that companies should be made to think about their energy usage, and the best way to do that is to tax them on it. The hon. Member for Salford and Eccles (Rebecca Long Bailey) made a wide-ranging speech on a series of matters, some of which I was going to speak about, so I will curtail my speech somewhat.
Although reducing companies’ energy consumption and usage is a great idea, it fails to take into account the fact that some methods of generating electricity are better than others, particularly in terms of climate change. We cannot tax energy usage across the board given that energy generated from, say, onshore wind is much cleaner and better than energy generated from, say, a coal-fired power station. Those two things are very different, and it is completely reasonable to have variable tax rates for those two things.
It was announced in June that the Scottish Government had managed to meet their target for reducing greenhouse gas emissions by 2014. The target was a reduction of 42%, and it happened six years early. That was an excellent achievement for the Scottish Government and for Scotland as a whole, with everyone working together to reach it. However, it will be very difficult for us to keep up that level of achievement with the UK Government’s current energy policy. For example, there is no clarity about when there will be a new pot 1 for contracts for difference. That pot is for onshore wind, which is very important. It is very clear that onshore wind is an established technology for generating electricity cleanly, and the UK Government need to provide greater clarity about when the next CFD round for it will be.
Full debate: Finance Bill
I want to make it clear that we are not against spending additional money on flood defences. Given the climate change issues that we face and the devastating impact of floods on communities, we think that is a good idea and we completely understand why the UK Government are choosing to spend money on it. My issue is that raising insurance premium tax might be the wrong way of doing so—I do not want people to be discouraged from taking out insurance. The Minister said that the clause might mean only a minor change in people’s bills, but I am concerned less about the 0.5% increase than about the precedent that has been set by what is happening this year and what happened last year. My main fear is that the UK Government will decide on a further increase.
This morning the Chancellor said that the UK economy was affected by the fact that the markets were currently volatile, and that that volatility would continue. In such circumstances, we do not want people to worry about their future finances, and not to take out insurance because the economy is uncertain and they do not know how the financial situation will develop. It is necessary to have home insurance, just as it is necessary to have motor insurance, but premiums have increased significantly, mostly because of problems caused by climate change. Although the average increase will be £1, people who have been hit by flooding are having to pay massive premiums, and the 0.5% increase is likely to have a disproportionate impact on them.
I will come to the issue of flood defences later, but the Chancellor stated in his Budget speech that this measure was also intended to help to fund the cost of flood defences. I want to raise the issue of flood insurance, including that provided through the Flood Re scheme, which is already increasing costs for customers. Of course we on these Benches support the introduction of Flood Re, but insurers are having to pay a total of £180 million to Flood Re, and that is being passed on. In a survey by the Financial Times , seven out of the 10 largest home insurers said they would pass all or some of the levy directly to customers. I understand that 350,000 properties are currently expected to benefit. We believe it is vital that those in flood-prone areas can access the insurance they need, particularly as the instances of flooding as a result of climate change appear to be on the increase.
Full debate: Finance Bill
I want to talk briefly about carbon capture and storage, which is very important for reducing carbon emissions; that is not just about moving from coal to gas. I have mentioned already the issue in relation to methane emissions. I understand that there is some evidence that methane emissions are relatively low, but I would like to see the body of evidence brought together in a report on unconventional oil and gas.
Full debate: Onshore Oil and Gas