Michael Shanks is the Labour MP for Rutherglen.
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We've found 25 Parliamentary debates in which Michael Shanks has spoken about climate-related matters.
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It is also important that the Government are clear that we want to see a long-term sustainable future for the refinery site. That is why we invested in Project Willow, which at the moment is coming up with credible investable propositions for the site. We want to protect the workers and do whatever we can to ensure a just transition at Grangemouth and for industry right across the country, but those options need to be long-term and sustainable so that we do not drive workers back into this process again a few years down the line. We are committed to ensuring that we invest in long-term sustainable propositions for the site, and of course we will meet anyone and discuss any propositions to help make that happen.
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Communities are, and will always be, able to speak about the plans for their local area, and to contribute to consultations and planning applications—we will not change anything about that. However, it is important to say that nationally important infrastructure will need to be built somewhere if we are to have the clean power future and energy security that everybody in this country needs. I gently say to the hon. Lady that, even in the most extreme statistics, less than 1% of land in this country would be used to build for solar. Either the Conservatives are in favour of keeping us on the rollercoaster of volatile fossil fuels, or they are in favour of building clean power. Her party used to be in favour of net zero, but now it seems to be running away from it at speed.
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This Government have committed to delivering clean power by 2030 and accelerating progress towards net zero, while ensuring the security of supply. Making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions. To deliver this mission, we will increasingly rely on renewable power. The Government have set targets to double onshore wind, treble solar and quadruple offshore wind by 2030.
The transition to clean power will see changes in the patterns of energy production and consumption, with flexibility playing an increasingly important role. In October, we published a consultation and call for evidence exploring proposals to maintain security of supply and to enable flexible generation capacity to decarbonise. Today, we build upon this work by publishing a consultation and call for evidence on proposals to modernise the capacity market rules and improve consumer-led flexibility within the capacity market.
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15:50
Let me first speak about the context of the debate and I will then answer some of the specific questions. I think the “why” of our being in this race and transition is important. Why are we pushing to deliver clean power by 2030? The truth is that it is an imperative if we are going to meet our long-term goal of a net zero economy and deliver economic growth and energy security. They are intrinsically linked.
The Government received the National Energy System Operator’s advice on achieving a clean power system by 2030. It shows that this is not only achievable, but can create a cheaper, more secure system. The advice will inform the Government’s clean power 2030 action plan, which will be published imminently and will set out our route to decarbonising the electricity grid with the aims of protecting billpayers from volatile gas prices, strengthening Britain’s energy security and accelerating us towards net zero.
The new technology unlocks deeper areas of the seabed that can benefit from stronger and more consistent winds, helping us to secure our energy supply and to deliver on our statutory decarbonisation obligations. Our floating offshore capacity is second only to Norway. At around 25 GW, we have the largest pipeline of floating offshore projects anywhere in the world. Of course, in the Celtic sea, there is enormous potential for floating offshore wind, and we are determined to take advantage of the opportunities that that represents. Earlier this year, the floating offshore wind taskforce estimated that floating offshore wind could contribute £47 billion in GVA to the UK economy by 2050 and support up to 97,000 jobs across the country, so we are hard at work, right across Government and in the private sector, to make sure that we realise the vast potential of this opportunity.
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10:50
It is a pleasure, Sir Christopher, to serve under your chairmanship. I thank the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) for introducing the debate, for his approach, and for the engagement we have had on the topic in the short time that I have been in this job. While I suspect we might disagree politically on a great many things, his repeated commitment to the need for net zero is important, and separates him from some hon. Members who might make the issue of grid updates part of an excuse to avoid dealing with the climate issue. I welcome that, and I was pleased to meet him and his colleagues recently to discuss the matter.
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It perhaps will not surprise the hon. Gentleman or the House that I am not going to agree with his final point. Net zero is incredibly important to deliver climate leadership, lower bills and the jobs of the future. But on biomass, we rightly expect full compliance with all regulatory obligations on biomass, and consumers rightly recognise the high standard of accountability from generators.
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My hon. Friend is right to raise the important potential of the Celtic sea in our green energy transition. I will be in Wales tomorrow to speak at a green energy conference on exactly that question. There is huge potential in floating offshore wind. We want to bring the manufacturing jobs in the supply chain to this country as well, which is why we launched today our clean industry bonus to bring that investment here to build the factories of the future and deliver the good, clean jobs of the future.
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My hon. Friend is absolutely right. The report published by the independent National Energy System Operator laid out not only that reaching our clean power mission is entirely achievable, but that it will bring down bills. The importance of the report is that it set the course for how that is possible. The reality, which the Conservative party refuses to accept, is that the only way to get us off the rollercoaster of high bills is to deliver at pace the clean energy that we know will deliver energy security and climate leadership, and bring down bills for people right across the country.
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I would encourage the right hon. Gentleman to read the NESO report, because it sets out in great detail not only that clean power is achievable by 2030, but that it will lead to lower bills. What he says about investment misses the point: in the last few weeks, we have announced billions of pounds of private sector investment in these projects; indeed, Scottish Power has announced today that it will provide £1 billion. Companies are choosing to invest in this country, whereas they did not under the Conservative party. The reality is that once upon a time, the Conservatives recognised that the drive to net zero was important. They have abandoned that commitment now.
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Question after question from the Conservatives shows that they do not recognise the part they played for 14 years in why we are paying higher bills than ever before. We are the only party with an ambitious plan to get us off the volatile fossil fuel markets. The Conservatives used to believe that, in our drive to net zero, we should build this infrastructure for the long term. They are now opposing it, but they will have to tell their constituents why they want to leave them exposed to rising bills.
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The Minister for Energy Security and Net Zero, my noble Friend Lord Hunt of Kings Heath OBE, has today made the following statement:
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15:36
The warm homes plan, which we announced in our manifesto and on which we are moving forward, is about transforming homes right across the country by making them cheaper and making energy clean to run, rolling out upgrades from new insulation to solar and heat pumps. We will partner with local and combined authorities, and the devolved Governments where possible, to roll out the plan. That was in the Budget speech last week, in which an initial £3.4 billion was announced towards heat decarbonisation and household energy efficiency over the next three years. That includes £1.8 billion to support fuel poverty schemes, which, as I said, will help more than 225,000 homes.
While we are discussing the hon. Gentleman, he made a very good point about remembering the different types of fuel that households use, and the real issue for off-grid homes—particularly in the north of Scotland, but right across the UK. Again, fuel poverty is devolved, so some of those questions are for the Scottish Government to answer—I know that the questions will be put to them—but we are aware that in England, for which the Department for Energy Security and Net Zero is responsible, 12% of rural households are in fuel poverty, and those are the ones with the largest fuel poverty gap. Tackling those particular challenges in the rural context is therefore really important.
The hon. Gentleman spoke earlier about engaging with the Northern Irish Executive. I have met both Ministers with responsibility for different parts of the energy policy—most recently, in fact, in the inter-ministerial working group across all the devolved nations. One of the key topics that we discussed was decarbonisation, particularly of such households, so we absolutely are taking that issue forward.
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16:00
This is a complex issue with a number of layers to it. I thank the hon. Member for Moray West, Nairn and Strathspey for raising it again. The challenge of how we lower bills for all is part of the energy trilemma that we are facing around how we demonstrate climate leadership, improve our energy security and lower bills in the long term. It is one that we are tackling head on, and we are determined as a Government to ensure that we do what we can to lower bills for all households across the country—in the highlands and islands, and right across the UK.
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I would like to advise the House that today I am laying draft regulations to implement two amendments to the Contract for Difference (CfD) scheme in time for the next allocation round, supporting the Government’s clean energy superpower mission to deliver clean power by 2030 and accelerate to net zero.
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16:12
Internationally, fusion energy could be transformational, both as a long-term solution to energy security and, in this most decisive of decades, in tackling the climate crisis. This is a low-carbon, safe and abundant source of energy, which does not require huge amounts of land or natural resources for its production. That makes it the perfect power source for nations have relied on imported fossil fuels, or that do not have the capacity to deploy renewables at the scale many will need. Those are the same countries that are most likely to be affected by climate change. In other words, as global energy demand grows—and we know that it will considerably in the decades ahead—fusion energy could be critical to keeping net zero within reach, as well as ensuring that citizens everywhere have access to power.
The Government are unashamedly pro-growth, pro-business and pro-innovation, and fusion is a great example of all three. It is such an important part of our plans because it covers all those points, and is a real opportunity for us to make progress and become the global lead in a genuinely transformative technology. That could ensure our energy security, drive huge growth and combat climate change here and far beyond our shores. STEP could, in short, be the UK’s Apollo moment, and I cannot wait to see where the fusion journey takes us.
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17:19
I thank hon. Members for the tone of today’s debate and for their contributions. Our starting point, which the Government have been very clear on from day one, is that we want to deliver clean power by 2030. We want to do that for a number of reasons: to protect people from the wild price spikes that they suffered because of the volatility of global fuel markets, to tackle climate change—a lot of the discussion today on the importance of agriculture misses the importance of tackling climate change, which is currently having an enormous impact on farms right across the country and, if we do not act faster now, will continue to have an even greater impact—and to deliver the energy security the country needs.That will involve a diverse range of projects and technologies
The Minister always engages in a collegiate manner, which I welcome. On rooftop solar, I am sure, despite the disagreements today, that we would all agree that more solar on rooftops is crucial for tackling the climate crisis energy bills. Could he therefore confirm that the future homes standard will require all new homes to include solar panels as standard?
I want to come back to the point about balance. It is key in a lot of the contributions made today, and indeed in other debates on this subject over the past few months. We have to find a way to balance the environment and our need to protect nature with supporting local communities to make sure that we can deliver cheaper, more secure energy in the future and tackle our climate change objectives. But new energy infrastructure is important in every single one of those points, so we have to build that infrastructure. The question is how to ensure we get that balance right. That is why we have announced that we will have a land use plan—something the previous Government failed to do. But it is also why we need to plan a lot of that infrastructure much more carefully.
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I am tabling this statement to inform Members of the publication of a policy update, a consultation response, a consultation and a call for evidence on 15 October 2024. This is in support of making Britain a clean energy superpower by 2030 and accelerating progress to net zero.
The Government are committed to delivering clean power by 2030 and accelerating progress towards net zero, while ensuring the security of supply. Making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions. To deliver this mission, we will rely even more on renewable power. The Government have set a target to double onshore wind, treble solar and quadruple offshore wind by 2030.
Since its introduction in 2014, the capacity market has acted to secure sufficient capacity to ensure consistent and reliable electricity generation. The policy update that I am publishing today sets out the remaining proposals to reform the capacity market from the 2023 phase 2 consultation, aimed at aligning with the Government’s 2030 clean power and net zero goals, and improving security of supply. This document sets out policies to remove barriers for low-carbon technology to participate in the capacity market, which should accelerate investment in these technologies. This includes supporting low-carbon projects with longer build times to access support from the capacity market, enabling low-carbon technology with lower capital investment requirements to access longer-term capacity market contracts and reducing admin barriers for low-carbon technologies.
We intend to ensure that gas plants can decarbonise once low-carbon flexible technologies are available. To support the decarbonisation of unabated gas, I am today publishing a Government response to the decarbonisation readiness consultation, which will soon be followed by an accompanying statutory instrument. This will require that new build and substantially refurbishing unabated gas and other combustion power plants in England be built in such a way that they can readily decarbonise through either conversion to hydrogen-firing or by retrofitting carbon capture technology within the plant’s lifetime.
Finally, I am also publishing a capacity market consultation and a call for evidence on proposals to maintain security of supply and enable flexible capacity to decarbonise. We are seeking views on changes to the capacity market to:
Provide assurance that all substantially refurbishing or new combustion power plants participating in the 2026 capacity market auction have a credible plan to decarbonise before they become operational, whether through converting to hydrogen firing or carbon capture; and
Introduce exit pathways for unabated gas generators with multi-year capacity market agreements to transfer from the capacity market to bespoke support, enabling the plants to decarbonise.
These reforms will give owners and investors in gas power stations the certainty they need about future operations and their pathway to decarbonise. They come after the Government recently reached commercial agreement on the UK’s first carbon capture and industrial-scale hydrogen plants—technologies that will be critical in helping gas developers decarbonise their assets in future.
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15:47
I thank all right hon. and hon. Members for their contributions. I will try to respond to as many as I can, but I will briefly start with the context. This Government have come to power facing three interlinked challenges—ensuring energy security, displaying climate leadership and bringing down bills for people across the country—to which our response is our clean power by 2030 mission. Clean power is the only way to protect our constituents from the rollercoaster of price spikes that we have faced over the past few years, and to deliver the climate leadership that we need. That is why we introduced the Great British Energy Bill within our first 100 days, and why it is progressing through Parliament as quickly as possible. Great British Energy, which will have its headquarters in Aberdeen, is an important part of our plan to increase the delivery speed of renewables projects and, crucially—I will come back to this point—to ensure that the British people have a stake in that energy future. The Conservative party has for many years accepted the premise of publicly owned energy companies, but it does not support the premise of the British people being part of a publicly owned energy company—just ownership by companies from beyond our shores. Of course, we welcome their investment in this country, but with Great British Energy, we are saying that we would also like the British public to have a part to play.
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Our national mission to achieve clean power by 2030 and accelerate to net zero will require the capability to store energy when it is abundant to be used when supply is scarce. LDES technologies, which include pumped storage hydropower as well as new, innovative solutions like liquid air energy storage, are designed to store large quantities of excess electricity, such as that generated by solar and wind during periods of high output, and then supply it back to the grid over periods of several hours or days when it is most needed.
Low carbon long-duration flexibility technologies such as LDES will be pivotal in meeting and maintaining our clean power needs as electricity demand grows. LDES will also diversify our technology mix, giving us greater resilience. And by using renewable energy that can be stored, LDES can help the UK move towards energy independence. Analysis commissioned by Government found that in the central scenario, 20 GW of LDES resulted in electricity system savings of £24 billion by 2050. This represents a saving to consumers of 3.5% of the total system costs.
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00:00
That is a really helpful point. The community energy hubs that already exist are certainly something that we want to build on. The £10 million commitment is welcome. We have committed more than £1 billion to the local power plan over this Parliament, but we are building on what is already there, such as the local hubs. In Scotland, there is the community and renewable energy scheme, where we are already working with the Scottish Government to look at how we can jointly fund the project. It is really important that we work to build on what is already there.
Amendment 9 would require the Secretary of State to specifically set, as a strategic priority, measures to ensure that local communities benefit from low and renewable energy projects operating in their area. As we will discuss later, the Secretary of State will outline Great British Energy’s strategic priorities to ensure that it remains aligned with Government policy on energy more generally. The first statement, which we will make as soon as possible after Royal Assent—before Christmas, as was said earlier—will focus on driving clean energy deployment, creating jobs, boosting our energy independence and, crucially, generating benefits for UK taxpayers.
(f) the expansion and development of renewable energy and technology.”
This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology .
The need for Great British Energy and the demand for the energy that is being created is also generated by the amount of energy that leaks from cold, draughty homes. We are approaching winter now. In my constituency of South Cambridgeshire and, I am sure, in constituencies across the country, including those represented by Members of this Committee, a large number of people, many of them vulnerable, are in cold, damp homes. Although those people may be able, through their local authority, to have some renewable energy features and insulation added to their home, a proper emergency home insulation programme—not just for this winter but for the long term—is not being considered.
As we know from the Climate Change Committee, the calculation of the demand for energy generation changes when we look at the amount of energy lost through heating homes. We would need to generate less energy if we managed our home insulation programme. I therefore think that it is within scope to show not only the price of people’s bills but the standards under which they are living in their homes, and the amount of energy being lost without a home insulation programme. I know that the Government have their warm homes plan, which we will see in the spring, but we should consider home insulation within energy efficiency, given the importance of GB Energy to the consumer.
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12:30
In summary, clause 3 is about restricting Great British Energy’s activities to those specifically listed in the Bill, around “facilitating, encouraging and participating” in clean energy projects, reducing greenhouse gas emissions, improving energy efficiency, and ensuring energy security in the long term. Clause 3 thus provides the framework for Great British Energy to carry out the five functions outlined in its founding statement.
Clause 3(2)(b) will enable Great British Energy to facilitate, encourage or participate in projects that would contribute to the reduction of greenhouse gases from energy produced from fossil fuels. Building on some of the evidence we heard on Tuesday, I want to be very clear that that includes, for example, projects relating to carbon capture and storage, or blue hydrogen.
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I completely agree. The only way to permanently protect hard-working families and businesses from the high energy bills from which many are still suffering is to get ourselves off our reliance on the volatile fossil fuel markets. That is why we are rolling out at pace and at scale the clean power necessary to do so, which not only gives us energy security but creates good jobs, brings down bills and helps us to tackle the climate crisis.
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My noble Friend the Minister of State for Energy Security and Net Zero (Lord Hunt of Kings Heath OBE), made the following statement today:
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16:50
May I begin by thanking right hon. and hon. Members who have participated in this extremely wide-ranging debate this afternoon? I particularly pay tribute to all Members across the House who made their maiden speech in this debate. Thankfully, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) has already run through all the constituency names, so I do not need to do that again. However, I do want to highlight specifically some of the really emotional contributions that we heard from hon. Members, particularly my hon. Friends the Members for North East Hertfordshire (Chris Hinchliff) and for Stratford and Bow (Uma Kumaran) and the hon. Member for Eastleigh (Liz Jarvis), who spoke so passionately, as many did, about their pride in their communities and the importance of this moment and this decisive decade in tackling irreversible climate change. There will come a point in this Parliament when we will not have debates that are dominated by maiden speeches, and I will really regret that, because every time I sit here I learn a lot more about the country in which we live. I thank all those Members for sharing their communities with us this afternoon.
This has been a thorough and interesting discussion about the principles behind this Bill and the establishment of Great British Energy. The UK faces immense challenges, from energy insecurity and our over-reliance on volatile fossil fuel markets to the cost of living crisis and climate crisis. This Government are determined to address those challenges with clean energy being a key part of the solution.
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The Minister of State for Energy Security and Net Zero, my noble Friend Lord Hunt of Kings Heath OBE, made the following statement today:
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Our nation stands at a pivotal moment in our energy and net zero journey. As we navigate the challenges of energy security and the urgent need for a sustainable future, I am proud to announce the publication of the joint Government-Ofgem response to the statutory consultation on national energy system operator licences and other impacted licences.
As we move forward, NESO’s role will be instrumental in achieving our net zero and energy security goals. By fostering innovation, enhancing system resilience, and promoting transparency, NESO will help navigate the complexities of our evolving energy system. We are enormously grateful for the valuable input from industry stakeholders, whose insights have been integral to shaping the future of NESO.
NESO will be regulated by Ofgem through two new licences, and this consultation response marks a significant milestone in establishing NESO’s regulatory regime. The final step will be for the Secretary of State to grant NESO these licences under the powers conferred by the Energy Act 2023. The Department for Energy Security and Net Zero and Ofgem are aiming to establish NESO this year.
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10:27
Fourthly, there is the challenge posed by the climate crisis, which grows more and more urgent every day. We are now halfway through the most decisive decade in preventing irreversible damage to our planet. This is our last chance to limit global warming to 1.5° and, frankly, we are way off track.
This Government are determined to address these challenges, but, unlike our predecessors, we do not see them as separate issues pulling us in different directions —a case of either green or growth. Each of these challenges points to the same solution, a green energy future, because investing in clean energy at speed and scale is the only way to deliver energy security and to save families from future energy shocks. It will also create tens of thousands of good, skilled jobs.
The hon. Gentleman mentions families and energy prices. During the general election campaign, the Labour party and Labour candidates across the country claimed that GB Energy will save the average British household £300 a year. However, the Secretary of State refused to repeat this claim when given the chance last week. There has been quite a lot of confusion in the national media over the past couple of days, with Downing Street saying one thing and the Department for Energy Security and Net Zero saying another. Can the Minister now confirm, on the parliamentary record, how much GB Energy will save or cost British bill payers by the time of the next election? He is absolutely right that all these things are part of Labour’s energy plan for the country, so we need to know how much it will cost or save British taxpayers.
We will create thousands of skilled jobs, which, crucially, will also tackle the climate crisis that we have not done enough to tackle in recent years. It is for these reasons that the Prime Minister has made making Britain a clean energy superpower one of his five missions. The Government have a clear long-term plan to deliver that mission by increasing our energy independence, protecting consumers, and delivering good jobs and climate leadership. The outcome of that plan will be the decarbonisation of our power supply by 2030 and an acceleration to net zero across our economy.
The Minister has referred continually to the role of GB Energy, but how will it deliver lower gas prices? Only yesterday one of his colleagues, the Secretary of State for Energy Security and Net Zero, admitted that the price of gas was determined on the international market.
Does the Minister agree that the energy crisis is a matter not just of supply but of demand, and that the cheapest bill is the one that does not have to be paid because the energy is not being used? Does he intend to announce today ways of tackling the demand side? We could, for example, ensure that all new buildings are built to net zero standards, and announce a timeline for getting to that point as soon as possible. We could also announce a nationwide, street-by-street insulation programme to tackle the need for energy efficiency; that is the cheapest and quickest way to address the energy crisis. If he is not going to make those announcements today, when will they be made?
Finally on GB Energy, as a Scottish MP it would be wrong of me not to say that I am incredibly proud that Great British Energy will be headquartered in Scotland. It is a signal of our commitment to delivering the good jobs that communities need, and to bringing the expertise and skills of Scotland’s growing renewables sector to the table as we drive forward towards even more ambitious plans across the whole country. In the driving seat of these ambitions is our new mission control centre, led by the former chief executive of the Climate Change Committee, Chris Stark. Mission control is about bringing together the best minds across Whitehall, but also, crucially, outside of Whitehall, so that we can set the direction, monitor progress and remove all the barriers in the way, whether they relate to the planning grid, supply chains or skills, so that the Government can work with one voice to deliver this plan.
On barriers, one of the key challenges is the capacity of our construction industry. Is my hon. Friend having conversations across Government about how we resolve that issue, so that we can deliver on this crucial agenda of moving towards net zero?
My hon. Friend makes an incredibly important point. This transition has to be hand in hand with the industrial strategy that the Government are driving forward. That is why the Minister of State, Department for Energy Security and Net Zero, my hon. Friend the Member for Croydon West (Sarah Jones) is also a Business and Trade Minister; that will bring together work right across Government on the industrial strategy. We also have to look at the skills for the future, and developing the next generation of apprentices and skilled workers, who will be in jobs that will be with us long into the future.
There has been much debate about the role the North sea will play and what a just transition will look like. The reality, as I mentioned earlier, is that the North sea is a mature basin with declining reserves. Figures from the Office for National Statistics suggest that the number of direct jobs supported by the oil and gas industry has already fallen by more than a third since 2014.
Regarding the potential closure of the Grangemouth refinery, the Just Transition Commission recently said that the UK Government have taken positive steps in working collaboratively with the Scottish Government. There is no doubt that we are behind schedule because of the previous Government’s inaction. Will my hon. Friend provide an update on when the Grangemouth future industry board leadership forum will next meet?
The future of the North sea more generally depends on having a plan for the industries of the future, whether that is carbon capture and storage, hydrogen or, indeed, renewables. The just transition is critical and it is something I take incredibly seriously, so we will work with North sea communities to develop a credible long-term plan. That work will be supported by a British jobs bonus to incentivise developers to build their supply chains here in the UK and to create good jobs in our industrial heartlands and coastal communities. We will make sure that our offshore workers are the people who decarbonise our country and deliver our energy independence, and that there is a strong, resilient workforce in the North sea for decades to come.
My hon. Friend, very importantly, mentioned the role that carbon capture, usage and storage has to play in the decarbonisation of our economy. I am sure he will have seen the latest National Audit Office report on CCUS and will therefore be aware that the Department has increased its reliance on CCUS substantially since this was first mooted. The NAO is clear in its report that uncertainty remains about the funding available for future stages of the CCUS project proposals; that the previous Government were behind in agreeing support for track 1; and that future progress on the programme is dependent on reaching financial investment decisions for at least some of the track 1 projects very swiftly. Will he give us an update—if not now, at some point later—on how this essential part of the programme will be handled?
I very much welcome much of what the Minister has said in this announcement, including on the need for a just transition for those working in the oil and gas sector. However, before the election, the Government made a commitment to end new oil and gas licences, although they are still planning to allow the new Rosebank oil field to open, despite it being connected to a level of carbon emissions that we simply cannot allow in this country. I have two questions about the future of oil and gas. First, will the Minister confirm how and when the ending of new oil and gas licences will happen? Secondly, will the Government reconsider the opening of the disastrous Rosebank oil and gas field?
On the question of Rosebank and some of those other fields, we have said that we will not bring to an end any of the licences that are currently in place. I cannot speak on some of the particular issues, because there are, of course, cases before the courts, but we will come back to the House in due course to set out the detail. What is important is that we have said that we do not want any new licences in the North sea and we stand by that commitment. We now want to work out a detailed plan, so that that just transition, to which the hon. Lady rightly referred, can come into effect.
Finally, the next 18 months in the run-up to COP30 are critical to ramping up and delivering on our global climate commitments. Britain must and will regain its influence on the international stage, so we will work with international partners to raise ambitions, including by leading a clean power alliance that brings together a coalition of countries to accelerate the clean energy transition.
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14:17
With the leave of the House, Madam Deputy Speaker, I will respond to what has been a very wide-ranging and—until that last speech—a mostly positive debate. I thank all those who have contributed and have brought us their ideas and their huge experience, not just in relation to the green energy transition but in relation to everything from the care system and child poverty to vital matters of public discourse such as what we should put on our chips. That was raised by my hon. Friend the Member for Bathgate and Linlithgow (Kirsteen Sullivan), and, for the record, what she said was absolutely right.
The reason that we are on this journey is not because of some sort of ideological commitment to net zero, but because we know that it is the only way to deliver the energy security that we need to reduce our dependence on volatile gas prices and to deliver the cheaper energy that we know will bring down bills. The commitment that we made throughout the election has not changed in the slightest. We will bring down people’s bills in the long term to avoid those shocks that have cost people so much in their household bills.
On the oil and gas transition, the hon. Members for Gordon and Buchan (Harriet Cross) and for Aberdeenshire North and Moray East (Seamus Logan), who are perhaps not surprisingly on the same side in criticising this Government, made a number of points about the North Sea, which are important and which I take on board very seriously. None the less, the suggestion that the North sea is going to close overnight is nonsense and it has to stop being peddled by Members across the House, because it creates unnecessary uncertainty. There will be decades of work in the oil and gas industry in the North sea, whether or not we issue new licences. And, as has been mentioned, the skills, the experience and the infrastructure that is vital for a net zero transition are important. That is why we need to start the just transition now. It is why we should have started it years ago, frankly. We cannot simply bury our heads in the sand and hope that the economic reality of the future will be the same as the past. The North sea is declining as an oil and gas basin. We need to tackle what the future of that looks like now.
The hon. Member for Mid Buckinghamshire (Greg Smith) raised a concern about solar threatening our ability to grow our own food in this country. I respectfully suggest that he checks out the recent research by Exeter University, which shows that we could increase the amount of renewable energy we generate in this country 13 times over using, I believe, less than 3% of the UK’s land, and none of the highest-grade agricultural land—
A number of other points were made in this debate that underline how complex some of these decisions are going to be, but also the huge opportunities we have. A number of Members spoke about the industrial opportunity that will come from this green transition, and a number offered up examples from their own constituencies relating to the role of skills, which is going to be so important. The sense that this is the mission that we need to be on together as a country is also important, because it will take all of us—with all of our expertise, and the challenge that comes from the Opposition—to make the right decisions so that we can have a long-term plan that delivers the net zero future that we need.
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16:13
Minutes after the Chancellor sat down, we had the spectacle of the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) refusing to say whether he would back his own Government’s plan to expand the windfall tax on the oil and gas industry. I am not sure if he is still on resignation watch or whether his chat with the Chancellor has moved him back to a stronger position, but yesterday, the Tories in the Scottish Parliament had a debate denouncing expanding the windfall tax, and the leader of the Scottish Conservatives, the hon. Member for Moray (Douglas Ross) has said he will vote against it. This morning, the Chancellor said it would present a little local difficulty. This is utter chaos, less than a day after he delivered the Budget. With any other Government, at any other time, they would be the laughing stock of the country, but so low have our expectations fallen that it is not even getting the attention it should.
The only way out of this doom loop of economic chaos, higher taxes and stagnant living standards is real change, with a Government focused on growing the economy, making work pay and turning the UK into a green energy superpower. That is the change that Scotland needs. That is the change that the UK needs. That is the change that Labour will deliver. We need a general election so that we can get on and do it.
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