Nus Ghani is the Conservative MP for Sussex Weald.
We have identified 19 Parliamentary Votes Related to Climate since 2015 in which Nus Ghani could have voted.
Nus Ghani is rated Rating Methodology)
for votes supporting action on climate. (Why don't you Contact Nus Ghani MP now and tell them how much climate means to you?
We've found the following climate-related tweets, speeches & votes by Nus Ghani
To recap the measures in the Bill, clause 15 increases the rate of the energy profits levy from 35% to 38%, bringing the headline tax rate on the sector up to 78%. Clause 16 removes the 29% investment allowance and reduces the rate of the decarbonisation investment allowance to 66%, so that the cash value of that allowance remains the same. Clause 17 extends the energy profits levy to 2030, at which point the Government are committing to implementing a successor regime to respond to price shocks once the levy expires. Clause 18 and schedule 3 legislate for certain payments into decommissioning funds to be treated as decommissioning expenditure so that they can attract tax relief.
The Government have thankfully carried out a partial U-turn, retaining the decarbonisation allowance and the 100% first-year allowance introduced by the Conservative party, but if they were persuaded of the importance of those investment allowances and that removing them would do more harm than good, why persist with removing the main 29% investment allowance? What was it about that relief compared with the others that made them want to scrap it?
Full debate: Finance Bill
We agree that Lords amendment 2 could result in further loss to the public purse and the paying of excessive fees over an extended period. We want that money to come back to the public purse so that it can be reinvested in the railway and increase the usage of our trains. This is not the 1980s. There is a lot of talk about going back to how things were prior to privatisation, but governance and scrutiny are now in a very different place from 40 years ago, and we should acknowledge that. A railway that is publicly owned might bring about a real and sustained age of the train, which we might recall from our youth, with real infrastructure investment like that seen in Scotland. We want to continue to do more of that. That will drag people back on to the railways and move them off the roads, which will contribute to our efforts on climate change and gently improve people’s lives. That is why we support the Government’s position on the Lords amendments.
Full debate: Passenger Railway Services (Public Ownership) Bill
Tomorrow the Chancellor of the Exchequer will announce her intention to borrow to invest. We know that the borrowing will not just be for investment, but what investment there is will be dominated by energy schemes that will cost more to do less. We do have an underinvested economy, but net zero zealotry will make the problem worse, not better.
I hope the hon. Member for South Cambridgeshire will recognise that there is really no need to put an amendment such as this one on the face of the Bill. Turning to her amendment on the topic of community energy, she will know, however, that I am passionate about community energy, as are the Government. It will form an integral part of Great British Energy’s local power plan, which will put communities at the heart of the energy transition, giving them a stake in the shift to net zero. As a member of not just the Labour party but the Co-operative party, that is at the heart of my politics and that of many of my hon. Friends. We have been advocating for community energy for decades—this is not a new idea for us—and empowering communities is critical. The hon. Lady and I share that passion and a commitment to community energy.
This is a truly historic Bill, delivering on the Government’s promise to establish a new national, publicly owned energy champion for our country. It has been a privilege to take it through Committee, and I repeat my sincere thanks to everyone involved in that process. Great British Energy is the right idea for energy security, for bills, for jobs, and for delivering the climate leadership that the people of this country demand of their Government. It is the right idea for our time, hugely supported by the British public, and I urge all Members of the House to support it this evening.
(f) the expansion and development of renewable energy and technology.”— (Pippa Heylings.)
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.
Full debate: Great British Energy Bill
A review of the data underpinning the British industry supercharger will be carried out in 2026 to assess how the scheme continues to meet the needs of energy-intensive industries and whether it can go further in helping manufacturing remain competitive, while at the same time supporting this Government’s ambitions for decarbonisation. There have been some issues raised around subsidies and who fits in and who fits out. However, this is a good news story, which has been well costed, well documented and well evidenced.
Full debate: Draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2024 Draft Ene...
Before I give way to the hon. Member for Croydon Central, let me say that Opposition Members constantly want harder, greener net-zero policies, and this is what happens when we flow those through. Customers—end users—want cleaner, greener steel that is made in electric arc furnaces, and this is the outcome of that demand. The reality is that, without the support, there would have been a high risk of Port Talbot and Tata no longer producing steel in the constituency of the hon. Member for Aberavon (Stephen Kinnock).
We are, then, ensuring the resilience and prosperity of the UK steel industry in the face of increasingly competitive global markets. This work is preparing UK steelmaking for the coming years, but it is not the final word in future-proofing the industry. The SUSTAIN future manufacturing research hub, which is led by Swansea University, is the largest fundamental research activity centre working right now to decarbonise and improve the efficiency of steelmaking in the UK. I believe it is also looking at the quality of scrap steel and new technologies to ensure that we can make even more products using steel in the UK.
Full debate: Steel Industry: Wales
Is not the truth of the matter—I admired, by the way, the shadow Secretary of State’s rhetoric—that Port Talbot is a victim of climate militancy and extremism? Net zero zealots do not understand that unless we manufacture in this country, we will extend supply chains and our carbon footprint will grow. Is that not the truth of the matter?
Full debate: Protecting Steel in the UK
Ensuring the UK can adapt to long-term trends by developing the insights, policies and international partnerships needed to address long-term trends impacting supply chain resilience, including climate change, evolving geo-political dynamics and the growth of new industries and technologies; and
Full debate: Critical Imports and Supply Chains Strategy
Decisions have to be taken while responding to the consultations that take place. We have been absolutely determined to ensure that steelmaking will remain competitive in the UK, which is why we have been able to support the steel sector with high energy costs and put over £1 billion in place to deal with decarbonisation technology. When it comes to Tata, the support we have pledged involves an investment of over £1 billion to ensure that jobs remain secure in the future, and negotiations continue with British Steel as well. That is the support that we have provided and will continue to provide for steel in the UK.
Full debate: Oral Answers to Questions
It was good to hear my right hon. Friend the Member for Basingstoke acknowledge that we are world leaders in offshore wind and other renewables, especially small modular reactors and fusion energy, and to hear about her recent experience in Canada as our trade envoy. She reflected on battery plants and storage, and will be pleased to know that I will publish the battery strategy shortly. She reflected on critical minerals—she knows I published a critical minerals strategy recently—because we cannot have a net zero agenda without them. She also asked about the NPPF; we got a note back to say that it is on its way. Of course, that is not within my remit, but I do not doubt that her words have been acknowledged.
Let me reflect on the comments made by my right hon. Friend the Member for Kingswood (Chris Skidmore) and his tremendous work on the Skidmore review. I agree that we have earned a reputation in the UK as leaders in achieving net zero, and now that reputation needs to be preserved. It is indeed a race, and we started off fast so we need to ensure that we continue ahead of the game. He also reflected on the Inflation Reduction Act, which has changed the game plan—I know that, as the Industry Minister—and the challenges it poses for supply chains. It is unfortunate that this will be his last King’s Speech debate, but I do not doubt that we will hear his voice on this agenda.
The hon. Member for Brighton, Pavilion (Caroline Lucas), gave a speech that was far more ideological than embedded in the reality of people’s lives, and did not reflect at all on our track record on getting to net zero and reducing emissions. I always find it curious that people talk about resilience but are prepared to let other markets boom at the cost of markets being invested in and jobs being grown here in the UK.
I am anxious about how much time I have left to speak. I am closing the debate as a Business and Trade Minister, and have many more opportunities coming up to help ensure that we deliver on growing the economy and achieving net zero. We have a couple of programmes of work that were reflected in the King’s Speech in the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill and the Digital Markets, Competition and Consumers Bill.
Turning to the subject of today’s debate, the Government are already turning the country into a clean energy superpower. “Already” is the important word there, because while the Opposition might try to claim otherwise, this work is well under way. Let me remind the House of the formidable record we are building on. The UK achieved the fastest rate of greenhouse gas emission reductions of all G7 countries, while renewables already generated over 48% of our electricity in the first quarter of this year—the highest ever level. Of course, we know we can and must go further, which is why the UK has one of the world’s most ambitious 2030 targets. However, the Government are also acutely aware that we cannot ask our citizens and businesses to pay undue burdens for achieving our net zero goals, particularly in these challenging economic times. Nor can we ignore the fact that Putin’s war of aggression means that we are living in a more dangerous world with far more complicated supply chains. As the Secretary of State for Energy Security and Net Zero has already explained, it is only right that we reduce our reliance on volatile international energy markets and hostile regimes. She will be doing so through legislation such as the Offshore Petroleum Licensing Bill.
However, the Government are not just focusing on words; they are taking action. Between 2020 and 2023, my Department alone supported more than £28 billion of net zero-related inward investment, creating 30,000 jobs. Thanks to our work, the country’s economic geography is also shifting—from clean technology development in the midlands, offshore wind in the north-east and Scotland and turbine manufacturers in Hull, to innovative hydrogen-powered buses in Northern Ireland. With the North sea transition deal, the Government are helping workers, businesses and the supply chain in fossil fuel-related industries to adapt to a net zero future, providing £20 billion of funding to encourage the early deployment of carbon capture, usage and storage, and to unlock private investment and jobs. Whether we are talking about our recently announced plans for carbon capture clusters in the north-west and north-east, the first 15 winning projects to receive investment from the Government’s £240 million net zero hydrogen fund, the port towns that stand to benefit from the £160 million-worth of floating offshore wind manufacturing schemes, or our freeports and investment zones, our policies are creating jobs, reinvigorating communities and opening horizons the length and breadth of the country.
It would be remiss of me not to talk about my own brief, which covers industries and, fundamentally, the automotive, aerospace and maritime sectors. Here again, my Department is playing an instrumental role. We recently announced a joint investment package with Tata Steel, worth £1.25 billion, to replace end-of-life blast furnaces with electric arc furnace steel production. That will preserve steelmaking for generations to come and enable green steel production to take place in the UK. While we are helping manufacturers, including steel producers, to access lower-cost hydrogen through the net zero hydrogen fund, we are also enabling our world-renowned automotive sector to seize the opportunities of the net zero transition. For instance, we have the automotive transformation fund from the Advanced Propulsion Centre, and the Faraday battery challenge. That has unlocked investment into the UK. Stellantis is producing electric vans at its Ellesmere Port plant, the first factory to be dedicated to the manufacture of electric vehicles, BMW Group is investing £600 million to bring two new all-electric Mini models to Oxford by 2026, and Tata has announced a £4 billion investment in Europe’s largest here in the UK. All that shows what our strategies are already providing.
I thank the Minister for making an important point about job creation. As I said in my speech, the net zero review pointed to the 480,000 additional jobs resulting from green industries. When it comes to green steel both in Port Talbot and in Ellesmere Port, and the future of electric arc furnaces, does the Minister agree that, as politicians on both sides of the House, we need to fight the corrosive disinformation that green steel is somehow costing jobs—there would otherwise have been 6,000 job losses in Port Talbot rather than 3,000 potential job transfers—and point out that it is green industries that are keeping jobs alive? If we stick with the status quo, we will simply lose every job.
Owing to the importance of this issue, I must add something to the record. As the Minister and the Secretary of State know, electric arc furnaces are not the only way to decarbonise the steel industry. There are examples around the world of the use of ammonia and hydrogen in what is known as the direct reduced iron process, and other technologies are under way. Are we to be the first developed country to lose the capacity to make virgin steel? That appears to be Government policy, but I am not sure that the Minister could deliver the necessary votes for that on her own side of the House. I think she should clarify whether it is indeed Government policy, because she would not say so during yesterday’s exchanges on the urgent question.
Full debate: Making Britain a Clean Energy Superpower
Through investment in a state-of-the-art Electric Arc Furnace at Port Talbot, this deal will support the UK’s efforts to meet increasing demand over the next decade and enable industry to take a significant step towards decarbonisation. It will strengthen our supply chain resilience, as well as protect thousands of skilled jobs across South Wales and the UK for the long term.
enable the industry to take a significant step towards decarbonising; and
Steel is a strategically significant industry which plays a vital role in the UK economy. The sector supports tens of thousands of UK jobs and remains a key driver for local economic growth in regions with proud steelmaking histories. It is also an industry in urgent need of modernisation. Decarbonising industry is a global challenge to meet the temperature goals of the 2015 Paris Agreement.
Full debate: Tata Steel: Port Talbot
I turn to gigafactories, the favourite topic of the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). In the summer, we also helped to secure more than £4 billion of investment from Tata for a new gigafactory. At 40 GW, it will be one of the largest battery plants in Europe, equivalent to the size of almost 65 football pitches. It will create up to 4,000 highly skilled jobs as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals. Most importantly, the investment helps to turbocharge our switch to zero-emission vehicles by providing almost half the battery production needed by 2030. It is not that we need 12, 15 or five; it is about the capacity we need. Tata takes us two thirds of the way there and Envision is on top of that.
The announcements are the most recent in a line of investment decisions over the last couple of years. In 2021, Nissan and Envision announced a £1 billion investment to create an EV manufacturing hub in Sunderland. Ford joined the line-up in 2021 with a £227 million investment in Halewood to make the company’s first EV components site in Europe, and increased its investment in the plant to £380 million in 2022. Last year, we saw Bentley commit more than £2.5 billion to transition its Crewe plant to zero emission vehicles, with the first EV model to roll off the production lines around 2025.
Full debate: UK Automotive Industry
I would love to. More importantly, I was recently at a site where we saw trucks that used hydrogen, ensuring that construction sites achieve their net zero ambitions. Leyland will not be forgotten, due to my hon. Friend’s hard work.
Full debate: UK Automotive Industry
My right hon. Friend’s views on electric vehicles and zero emissions are well documented. As I mentioned, a hydrogen strategy is also in place. I have been to a number of projects where vehicles are using hydrogen to ensure that that technology is exploited and that there is supply and demand in the chain, too. We are looking at sustainable alternative fuels not only in the automotive sector but in the aviation sector, so it is not just in that space. All alternative fuels will be investigated.
Full debate: UK Automotive Industry
One issue that has already been touched on is our relationship and tariffs with Europe. To support our industry through the transition, we must also address any and all barriers to trade with partners and markets all over the world. Our closest trading partner is the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. Over 50% of cars manufactured in the UK and exported are destined for EU consumers.
Full debate: UK Automotive Industry
I can confirm that the Government have agreed on a proposed joint investment package to provide £500 million to Tata Steel as part of its proposed £1.25 billion project to move to low-carbon steelmaking in Port Talbot, subject to the necessary information and consultation processes that will be led by the company. For me it was always about certainty, continuity and security, and through investment in a state of the art electric arc furnace at Port Talbot the deal will support the UK’s efforts to meet increasing demand over the next decade and enable industry to take a significant step towards decarbonisation. It will strengthen our supply chain resilience as well as protect thousands of skilled jobs across south Wales and the UK for the long term.
This ambitious transformation is the culmination of several years of negotiations between the Government and Tata Steel and it has been backed by a majority investment by the company. The transition will secure continued production of steel at Port Talbot, enable the industry to take a significant step towards decarbonisation and provide a clear pathway towards a long-term financially and environmentally sustainable business model, removing the repeated need for Government intervention.
Steel is a strategically significant industry that plays a vital role in the UK economy. The sector supports tens of thousands of UK jobs and remains a key driver for local economic growth in regions with proud steelmaking histories, but it is also an industry in urgent need of modernisation. Decarbonising industry is a global challenge to meet the temperature goals of the 2015 Paris agreement. By replacing Port Talbot’s existing coal-powered blast furnaces and assets nearing the end of their effective life with an electric arc furnace, this proposed project is expected to reduce the UK’s entire business and industry carbon emissions by 7%, Wales’s overall emissions by 22% and the Port Talbot site’s emissions by 85%.
As such, decarbonising UK industry is central to the Government’s bold plans for tackling climate change and in doing so placing our country at the forefront of the growing global green economy. We are committed to seeing a low-emission production steel sector in the UK and are also working with global partners to support decarbonisation of steel production internationally.
Full debate: Tata Steel: Port Talbot
Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.
Full debate: Oral Answers to Questions
I fundamentally disagree with the question—well, it was more of a statement. I made it clear when I took on this role that we would assess the level of steel in procurement contracts, and we have put together the steel procurement policy note, which will address how much steel is being procured in our contracts in the UK. We are doing a huge amount to ensure that the different types of steel that are needed are produced. We know how valuable the sector is, which is why we provided support with high energy costs and why we have a decarbonisation budget that the industry can link into. I fundamentally disagree with the hon. Gentleman’s proposition.
Full debate: Oral Answers to Questions
I welcome the hon. Member to her post, but I suggest that leading on stories in the paper is not a good way forward. That is all speculation; we do not comment on commercial decisions. The reality is that there is £730 million in support with energy costs and more than £1 billion of support with decarbonisation. She talks about plans. Well, I am not sure if the Labour party’s plan stands for anything because it flip-flops so often. It is not just me who says that; let us reflect on a statement made by a union leader. They said that Labour was not only just an ’80s tribute act, but that it tends to sit on a “wobbly fence”. Who knows what Labour will say tomorrow after a statement made today?
Full debate: Oral Answers to Questions
We are proud of the UK’s reputation as a leader in the offshore wind sector. Together with industry, we have delivered the four largest operational wind farms in the world. The National Shipbuilding Office has done a huge amount of work in that area and will do even more with the new shipbuilding guarantee scheme. I think my hon. Friend’s other question relates to the Department for Energy Security and Net Zero. This is London International Shipping Week, and our offshore wind farms and all our vessels are being promoted heavily.
Full debate: Shipbuilding
Across Government, we have worked closely with Tata for the past two years to help secure this crucial investment for the UK, and its decision to invest here is a testament to our strong partnership with Tata. Tata’s announcement represents one of the largest investments we have ever seen in the automotive sector, and is part of a new wave of investments—as significant as those made in the 1980s—that are helping to turbocharge our transition to zero-emission vehicles. It will also be the group’s first gigafactory outside India, directly creating up to 4,000 highly skilled new jobs, alongside thousands of further jobs in the wider supply chain for battery materials and critical raw materials.
Tata says that the battery gigafactory will produce high-quality, high-performance, sustainable battery cells and packs for a variety of applications within the mobility and energy sectors. As the anchor customer, the new gigafactory will supply Jaguar Land Rover’s future battery electric models, including in the Range Rover, Defender, Discovery and Jaguar brands. That means we will soon see cars from JLR’s iconic British brands manufactured in the UK, powered by batteries produced in the UK and developed using technology from research and development centres in the UK, before being exported to markets all over the world. Battery production at the new facility will commence in 2026, and we look forward to confirmation of the site’s location once due diligence has been finalised. When operational, Tata expects it to be one of the largest buildings in the UK and plans to maximise its renewable energy mix, with an ambition for 100% clean power.
The Government are committed to supporting the automotive sector and the electric vehicle supply chain to take full advantage of the move to zero-emission vehicles, and we are putting this commitment into action through the automotive transformation fund, the British industry supercharger and our strong programme of support for research and development. We are working alongside industry to unlock further private investment in our EV supply chain, and we have long-standing and comprehensive programmes of support for the automotive sector, including the ATF, the Advanced Propulsion Centre and, of course, the Faraday battery challenge.
This investment is an important milestone in enabling a UK-made transition to net zero. However, it does not stand in isolation. It builds on other announcements that have been secured with the support of Government, including Nissan and Envision plans to secure £1 billion to create an EV manufacturing hub in Sunderland, Ford committing a total of £380 million to make Halewood the first EV components site in Europe and Stellantis investing £100 million to transition Ellesmere Port to electric van manufacturing.
The transition to zero-emission vehicles gives us a once-in-a-generation opportunity to shape the future of manufacturing. Over 166,000 people are directly employed in the automotive sector, and I am delighted that yesterday’s announcement means that thousands of new highly-skilled jobs will be created in the next few years just for this project alone. This fantastic news from Tata shows that the Government are getting behind business to unlock the barriers to growth and secure further investment, and it will be a real boost to the entire sector. I look forward to building on the momentum and continuing our strong relationship with the sector, so that we can move the UK forward in the race to net zero and support the delivery of the Prime Minister’s priority to grow the economy. I commend this statement to the House.
Full debate: Tata Group Gigafactory Investment
This is a positive news story, and any opportunity we have to speak about the automotive sector should be positive, not negative or all about political point scoring. This is a serious topic and a serious industry. I know the hon. Gentleman is keen to be very ideological within the Westminster bubble, but I would suggest he steps a little outside it. I know my hon. Friend the Member for South Derbyshire (Mrs Wheeler), who is a champion for Toyota, which has the largest manufacturing plant in her constituency, would welcome a visit by Labour Members so they can see how the sector is booming just in her constituency. There are over 2,000 people working at the plant in South Derbyshire and involved in the supply chains, and 80% of the cars manufactured are exported to Europe. Exports are up, by the way, which I will get on to. Toyota continues to innovate and it is at the forefront of producing hybrid cars. It has been cutting emissions for over a decade and takes net zero seriously, having energy from solar panels all around the plant. The point she would want to make is, “Get out of the Westminster bubble, visit South Derbyshire, see what is happening at Toyota”—and at many other firms, as I will go on to say—“and you will see the work is going well.” Our job is to protect, promote and praise, not to talk the sector down.
This Government have a strong mandate to reach net zero and the consultation has just taken place on said mandate. The right hon. Member will know that I have been spending a lot time with the automotive sector, including taking delegations to meet the Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who will be overseeing that. My job—I also chair the Automotive Council—is to champion business, and on occasion to try to remove all the barriers it needs removed for it to manufacture more and export more. I know that the Transport Minister will be speaking more about that later.
The sector is indeed a jewel in the crown of our economy. It is vital, because of where it is based across the country, to supporting the levelling-up agenda, net zero and advancing global Britain. Our automotive industry employs 166,000 people, adds over £70 billion to the UK economy and is our second largest exporter of goods. The UK is proud to be home to major global manufacturers such as JLR, Nissan, Stellantis, Toyota, BMW and Ford. But that is not the whole of the UK’s automotive eco-system: we have a lot more to be proud of, from our luxury and performance sector, including Rolls-Royce, Bentley, Aston Martin, McLaren and Lotus, to heavy goods vehicles and buses, such as Leyland Trucks, Wrightbus, Alexander Dennis and Switch, as well as the future of mobility, encompassing connected and autonomous vehicles. Those manufacturers are supported by a diverse, resilient and growing UK supply chain that spans a wide range of components and includes companies such as Bosch, NSK, Meritor and Swindon Pressings. These are valued partnerships, and the sector knows that my Department for Business and Trade is the Government’s first port of call to help businesses grow and flourish, and to create jobs, apprenticeships and opportunities around the country.
I put on record my thanks to Graham Hoare, the current co-chair, Mike Hawes, Neville Jackson, Ian Constance, Markus Grüneisl, Paul Willcox, Murray Paul, Adrian Hallmark, Michael Leiters, Tim Slatter, Alan Johnson, Richard Kenworthy and many other indispensable members of the Automotive Council. I thank them for all the work they do, considering how challenging times have been not just for us but for our counterparts in Europe. I recently spoke at the Society of Motor Manufacturers and Trader’s parliamentary reception, and I welcome its “Manifesto 2030” with its five key priorities: green automotive transformation strategy, net zero mobility, green skills, made in Britain, and powering UK clean tech. There is a lot that we agree on, and I look forward to working with the sector to try to protect and strengthen the whole automotive industry. Car companies want to innovate, and we want to support them to do so. That is why the Government have an overarching goal of making the UK a global hub for innovation, as alluded to by the my hon. Friend the Member for Bosworth.
In embracing that innovation—this is further to my intervention on the shadow Minister—the UK is a leader in the development of the synthetic fuel sector. By that, I do not mean fuels made from feedstocks; I mean green hydrogen merged with atmospheric carbon capture, whereby what comes out of the tailpipe is the same volume of carbon that is then recaptured to make the next load of fuel. With whole system analysis, that will be shown to be net zero, but the zero tailpipe mandate gets in the way of that. Does the Minister agree that, to embrace this innovation properly and to give an eclectic future to the automotive sector, we need to embrace those innovators as well?
Those headwinds have been felt across the globe, and where the UK sector has been impacted, it has not been uniquely impacted. The entire automotive sector is midway through a once-in-a-lifetime shift away from the internal combustion engine towards zero-emission vehicles. That is good not just for our net zero ambitions; it also has the potential to provide wider economic and social benefits. Of course, our competitors know that too, and the race to secure zero-emission manufacturing capacity across the world is fierce. Some countries seem willing to spend eye-watering amounts. We will be offering targeted investment in the future of the auto manufacturing sector. That means focusing on exactly where we know we are ahead of the game internationally, offering targeted and measured support that reflects the size and scale of our outstanding automotive sector.
Some mention was made of R&D support, and I will share all the work we have done. Our R&D and capital programmes delivered through the Advanced Propulsion Centre and the automotive transformation fund are positioning the UK as one of the best places in the world to design, develop and build zero-emission vehicles. They are working together to support the creation of an internationally competitive electric vehicle supply chain. In the coming months, after engagement with industry, the Government will build on those programmes to take decisive action and ensure future investment in the manufacture of zero-emission vehicles, as part of our commitment to building a cleaner, greener, more sustainable Britain fit for the world of the future, not the world of the past that the hon. Member for Stalybridge and Hyde is fixated on.
I have spoken previously about the Advanced Propulsion Centre, because it does fantastic work in driving technology forward. It was founded in 2013 as a £1 billion joint venture between the automotive industry and the Government to help the industry meet the challenges of innovation and decarbonisation. It facilitates funding to UK-based research and development projects developing zero-emission technologies. The programme helps accelerate the development, commercialising and manufacture of advanced propulsion technologies in the UK. So far, it has supported 199 projects involving 450 partners. It is estimated to have supported more than 55,000 highly skilled jobs and is projected to save more than 350 million tonnes of CO 2 —the equivalent of removing the lifetime emissions of 14.1 million cars.
The Minister of State at the Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire, will touch on a few issues about the zero-emission vehicle mandate, so I will quickly touch on rules of origin. To support the transition, we must not only champion innovation but address all barriers to trade with partners and markets all over the world. Our closest trading partner is of course the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. More than 50% of cars manufactured in the UK and exported are destined for EU consumers. For those reasons, I am working closely with the industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and EU.
We are home to more than 25 manufacturers that build more than 70 different vehicles in the UK, all of which are supported by 2,500 component providers and some of the world’s most skilled engineers. It is incredibly important to reflect how difficult it has been for the automotive sector globally, but of course we have huge success stories here in the UK. In 2022 we exported vehicles to more than 130 different countries and built more than three quarters of a million cars, with the onwards trajectory rising year on year. This is a healthy sector going above and beyond not only to reskill and upskill, but to meet net zero targets.
The Government are supporting the UK automotive industry, and the sector is a stalwart example of innovation and dynamism to the rest of the world. It is a great sector to get into, whether someone joins it as an apprentice or even by taking on a regular job. Of course, there is more to do. There are more opportunities to secure as we transition to zero-emission vehicles and we realise the potential of connected and autonomous mobility. We have already achieved a great deal in partnership with this fantastic sector, but we are determined to do more. We work with the sector—we do not sit in Westminster coming up with plans that we then U-turn on—and that has given the sector the confidence it needs to continue to invest in the UK. The job of those representing the sector is to praise, promote and protect, not to talk the sector down.
Full debate: Automotive Industry
We accept the scale of the challenge; it is a global challenge to decarbonise the sector and many countries are feeling it. However, a potential £1 billion in support is not a small measure—it is a large measure. Dealing with the procurement process to ensure that we have UK contractors securing UK steel in their programmes of work is not a small task, nor is dealing with energy prices. We have provided more than £730 million. When the sector needs support and we know it is a valid use of taxpayers’ money, we have stepped in, such as with the more than £30 million in Government loans to Celsa Steel in 2020. That secured 1,800 jobs, and the money has been returned to the taxpayer. We are more than happy to work with the hon. Lady and all Members who have steel firms in their constituencies, but we are going to provide steady support for the long term.
Full debate: Steel Industry
The Paris agreement made clear that the steel industry needs to cut emissions by 93% by 2050, and the Government recognise the vital role that the steel sector plays in our economy. The 2021 net zero strategy sets out our aim to make the transition to a low-carbon economy, and reaffirms our commitment to continuing to work with the steel industry on decarbonisation.
Full debate: Oral Answers to Questions
We have been supporting the steel industry, with more than £1 billion available in grants to help decarbonise the sector and the provision of more than £730 million to cover energy costs since 2013. The CBAM is clearly an issue for many countries, not just ours. We have just finished one consultation, and will produce a response in due course. A transitional reporting phase is due to start in October, with full introduction in 2026. The EU is still developing details about CBAM implementation, and has a consultation open on proposed reporting requirements until 11 July. I know that the hon. Member chairs the all-party parliamentary group for steel and metal related industries, and I urge him to ensure that all businesses express their views as strongly as possible. I think we are meeting on Monday to make sure that we can provide a substantial response.
Full debate: Oral Answers to Questions
I am not sure where Labour Members will get the money to fund that programme of work. I have not even got to the end of reading this paper but they will probably U-turn by the time I do, so I am not sure how sensible it is going to be. We have provided more than £1 billion for decarbonisation, unprecedented support to help with energy costs, and just recently, there was fantastic news from Celsa, when it was able to repay a Government loan of £30 million that we provided to them, sensibly spending taxpayers’ money. There is and always has been support available. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.
Full debate: Oral Answers to Questions
I hope that my hon. Friend will allow me to use my brain to help unlock this with the Department for Transport. We have the automotive transformation fund and the Advanced Propulsion Centre, so we are doing a huge amount of work in this space to ensure that we are not only on the cutting edge of electric zero-emission vehicles, but looking at what the opportunities are for hydrogen. We do not want to be left behind anywhere in this space, but we do need to align ourselves with the rest of our Departments, and I will do so.
Full debate: Oral Answers to Questions
I do not think the hon. Gentleman has ever had a positive story to tell about his region, let alone his constituency. We have a positive story on steel, and we have the same challenges as most countries in trying to deal with decarbonisation. We have issues around energy costs that we have been providing all our advanced manufacturing sectors with, and we want to ensure that we diversify our access to different forms of energy.
Full debate: Oral Answers to Questions
The energy charter treaty, which is under review, falls under the responsibilities of the Department for Energy Security and Net Zero, which has been formed from half of my previous Department. In their negotiations to modernise the ECT, the former Departments for International Trade and for Business, Energy and Industrial Strategy worked in close collaboration and DIT led on the investment provisions, so there is no doubt that the hon. Lady’s question would be better focused at the other Department.
Full debate: Safeguarding Democracy, Rights and the Environment
Only trade can create jobs, drive growth and deliver the long-term prosperity that communities across the UK and around the world need to flourish. Only trade has the power to lift millions more people out of poverty in developing nations, helping to build a more secure and prosperous future for us all. Only trade can drive forward co-operation in the battle against climate change, by building networks of green innovation worldwide.
As we move towards cleaner, more affordable sources for power, Britain is once again leading the charge and we have a head-start on our global competitors. More than 40% of our energy came from renewable sources last year, and we are ramping up our investment in the sector, directing record sums into new projects, research and innovation. We know that the US Inflation Reduction Act is a significant intervention in the global race for green energy, and we are not attempting to enter any kind of distortive subsidy race with our greatest ally—as my hon. Friend the Member for North East Bedfordshire said, we need to make sure that we always get good value for taxpayers’ money—but although that drive to net zero in the United States should be welcomed, it is, of course, incredibly disruptive. One cannot throw a stone into the water and not expect any ripples, and IRA is a massive stone that has caused ripples worldwide, particularly in Europe. It is incredibly important that we stick to our net zero ambitions and ensure that we have resilience in our supply chains.
We are trying to do everything that we can to ensure that businesses in the UK have a competitive advantage while leveraging billions more in private capital to drive growth—and not just in green energy. We want to grow our nuclear energy capacity, too, through the development of small modular reactors, while investing in our key growth industries—from advanced manufacturing to life sciences and artificial intelligence—forging a British economy that is fit to face the challenges of a fast-changing world. [ Interruption. ] I am being rushed along, so I will briefly respond to some of the points raised by hon. Members.
Full debate: International Trade and Geopolitics
Unfortunately, I have to come to the Dispatch Box—that is just the way it works—so I disappoint the hon. Member by not being the Secretary of State. However, he knows that steel is absolutely key to our sovereignty and security and for the resilience of all our sectors. The Secretary of State has mentioned repeatedly that the quotes that are being repeated in the Chamber are a misrepresentation. The commitment to the sector continues. It was in place for years: it is why we had £800 million of support for the energy sector, and it is why we have a £1.5 billion competitive fund to help the sector decarbonise.
Full debate: Energy-intensive Industries
I am sorry to dampen the hon. Gentleman’s ambitions about winning the next general election, but we do indeed have a strategy to deal with decarbonising our economy. We are supporting research and development to help decrease our reliance on gas and electricity and deal with long-term energy security: we have £380 million for the offshore wind sector, £385 million for nuclear R&D, and £120 million for future nuclear enabling. We have a green industrial strategy and we are keen to ensure that we deliver it right across the country, for all of our communities.
Full debate: Oral Answers to Questions
I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.
Full debate: Oral Answers to Questions
The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.
Full debate: Automotive Exports
I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.
Full debate: Automotive Exports
My hon. Friend proudly represents Teconnex as a firm in his constituency. The Department is keen to support all businesses that seek to invest or expand in the UK, particularly those that can help to spread jobs and opportunities across the UK and help us to deliver net zero. The Department is working across Government; we have previous Business Ministers here, and we are very close to the automotive sector and the supply chain. The new Department will ensure that there is a single, coherent voice for business inside Government to help my hon. Friend to represent business in his constituency.
Full debate: Inward Investment
This builds on Blyth’s energy success story, as it draws on its maritime history to develop the offshore industries of the future—my hon. Friend the Member for Blyth Valley beat me to it. Today, Blyth is home to the Offshore Renewable Energy Catapult’s National Renewable Energy Centre, which provides open access and independent tests and research facilities to drive the development of transformative clean technologies. The clean energy industry will be a critical part of Britain’s green transition, but if we are to deliver a green transition that works for everyone, delivering growth and jobs for all in energy is only part of the picture.
The automotive industry is vital to the UK’s economy, and it is at the core of communities across the country. We must ensure it succeeds in the transition to net zero if we are to deliver not only on our climate goals but on our ambition to level up our country and advance its global standing. If we get it right, we can build an industry fit for the future that delivers security, prosperity and opportunity for places such as Blyth and Wansbeck in the century to come. We will continue to champion the UK as the best place in the world to build automotives as we transition to electric vehicles.
Full debate: Britishvolt
As we know, steel contributed £3.8 billion to the UK economy in 2021. It is crucial to many downstream sectors, such as construction, automotive and our green energy revolution, all of which sit in BEIS. I take care of automotive, aviation, maritime and construction, so it is critical to the rest of my brief. The industry provides a critical foundation that underpins our manufacturing, energy and infrastructure sectors, with a proud history forged in our United Kingdom.
However, as we have heard today, we have to recognise that there are global pressures. The sector is under stress everywhere. This is not just a UK issue; there are global challenges exacerbated by global overcapacity and the need to decarbonise. The hon. Member for Cardiff South and Penarth asked about the oversupply issue. Through the global forum on steel excess capacity, the G20 and other interested nations agreed important policy principles and recommendations to tackle the unfair subsidies that we believe are the cause of overcapacity, and we continue to work together to find solutions to this challenge.
We are disappointed that not all major steelmaking economies are taking part in these discussions, and I call on all players to come back to the table—in particular China, which represents more than half of all steelmaking capacity in the world. There are also great opportunities in how we can use steel as we transition to a zero-emission economy and help our other great industries to transition as well.
The hon. Lady mentioned the CCUS infrastructure fund. Each site is at a different stage when it comes to decarbonising, but that is £1 billion. There is funding of £240 million through the net zero hydrogen fund, which I know is important to many Members present; £55 million through the industrial fuel switching fund; £20 million through the Industrial Decarbonisation Research and Innovation Centre, which provides capital funding to projects that support fuel switching to hydrogen on industrial sites; £289 million through the industrial energy transformation fund to help businesses with high energy use, including steel; and £66 million as part of the industrial strategy challenge fund. Those budgets are in place to help the steel sector in the long term. They are not short-term sticking plasters, but substantial amounts of money.
Full debate: Steel Industry: Contribution to the UK Economy
My right hon. Friend the Prime Minister has set out our objective, which is to grow the economy with better-paid jobs and improved opportunities throughout the country. If we are to meet that objective, energy-intensive industries such as ceramics, glass and steel will be crucial. As we continue our transition to net zero, about which my hon. Friend spoke so passionately, they will also be crucial to the manufacture of everything from electric cars to wind turbines, and we will do all we can to support them. In my role as Minister for Industry, I have engaged with business and trade associations, and have witnessed at first hand their drive and passion to work with the Government to find a sustainable solution to those challenges that works for us all.
We can all agree that the last few years have been exceptionally difficult for everyone, and energy-intensive industries were no exception. Looking forward, however, I am confident that we can deliver a better future, unlocking the opportunities that net zero offers to build resilient industries bringing growth and jobs to communities across the country and providing security, opportunity and prosperity in the years to come. We have already made enormous progress: between 1990 and 2019 we grew our economy by 76% and cut our emissions by 44%, decarbonising faster than any other G7 country.
Full debate: Cost of Energy: Ceramics Sector
The Government have a clear long-term plan to accelerate our transition away from expensive fossil fuels and to meet our net zero targets. The electricity network is fundamental to this transition, and it needs to be transformed at an unprecedented scale and pace to allow the system to accommodate new renewable and low-carbon generation. The network also needs to accommodate an expected doubling in overall electricity demand by 2050, as we electrify sectors including transport, heat and industry. My right hon. Friend the Member for North Somerset identifies a clear problem that needs to be addressed.
However, it currently takes between 11 and 13 years to build or reinforce new onshore transmission network infrastructure, from initial planning to final completion and commissioning. Consequently, the system operator estimates that constraint costs funding via consumer bills could increase by £1 billion per year in 2022 to £4 billion per year in 2030. That explains why the electricity network is such a critical enabler of our net zero, affordability and energy security objectives and why the Government aim to dramatically accelerate these build timelines.
Full debate: Electricity and Gas Transmission (Compensation) Bill
I will try my best to respond to all the points raised, but I will just run through what we are doing within the sector to help bus manufacturers. As my right hon. Friend mentioned, this sector is incredibly important for the Government’s green growth, making sure that we are levelling up across our country and driving emissions to net zero by 2050. In a previous life, I was the bus Minister, making sure that we were indeed supporting zero-emission buses.
As I am also joined by the Secretary of State for Northern Ireland, my right hon. Friend the Member for Daventry (Chris Heaton-Harris), it would be remiss of me not to mention his visit to Ballymena factory to pay tribute to the company’s net zero emission products and to affirm the Government’s support for hydrogen. I believe that he also declared the innovative technology fund, which provided £11.2 million for Wrightbus. It is incredibly important that we are doing everything we can to support UK manufacturers.
That is why the DFT has asked for local transport authorities to submit proposals that have the support of bus operators, to ensure that they work together. Once funding has been awarded to local transport authorities, they will work with bus operators to implement the proposals, but ultimately decisions about the procurement of zero-emission buses will be made locally by local transport authorities or bus operators. DFT is not able to require bidders to design their procurement process in a way that would explicitly favour UK bus manufacturers.
A lot of work has been taking place on localised supply of key components to meet the growing demand for electric vehicles, but we need to make sure that local companies have the opportunity to bid for tenders. I should mention the net zero strategy produced in October 2021, and the Government’s promise of £350 million over the next three years to deliver the automotive transformation fund.
I assure hon. Members that this is not the end but the start of a conversation. We need far more transparency, especially regarding those councils that seem to be giving the majority of their contracts to one particular country or place overseas; that is not good news for us here. We recognise the challenges that we face. We need to help our local authorities to procure buses from the UK. Of course, the supply chain for zero-emission buses will always be global, but we want to make sure that UK bus manufacturing remains strong, and this obviously involves the key components. I will end there. I am keen to meet my right hon. Friend as soon as possible to make sure that everything discussed today is put in writing.
Full debate: Bus Manufacture in the UK
I note that the hon. Member has raised the issue a number of times with BEIS. I am grateful that he has done so again. We are encouraged to hear about the development of new hydrogen technologies in Swansea. I know that the previous Secretary of State visited Swansea University. A range of Government support is already available for hydrogen production. The net zero hydrogen fund, the net zero innovation portfolio and the UK shared prosperity fund would help very much in Swansea.
Full debate: Oral Answers to Questions
As I was saying, many non-dairy or meat-free alternatives are shipped across the world to reach us, and are nowhere near as good for the environment as British meat and dairy. Products such as almond milk require 20 times more blue water—from normal water supply—than British dairy milk, which is more reliant on green water, from natural rainfall. When choosing what to put in our shopping basket, we should look for the Red Tractor—the symbol of British farming. Buying locally and seasonally not only might give people a much better diet but will do significantly more to reduce emissions compared with the alternatives. We can all do our bit to work towards net zero, by buying local British produce to support our great British farmers.
Full debate: British Meat and Dairy Products
What will help most Members in the Chamber is a national bus strategy. It is key that the bus strategy both adopts new technology and promotes cleaner air quality, fitting into our decarbonisation strategy. Since 2010, we have set aside more than £250 million to replace and upgrade buses, meaning that we now have more than 7,000 cleaner and better buses on our roads. Most recently, the electric bus launched at Birmingham airport is incredibly quiet and has USB portals. However, that is not as good as the No. 18 bus, which even has wood-effect flooring—I hope to be able to take a journey on that bus in future.
We can go even further. Decarbonisation and tackling congestion were mentioned by both my right hon. Friend the Member for Staffordshire Moorlands and my hon. Friend the Member for Newcastle-under-Lyme. We must drive down congestion to bring greater economic benefits to the villages, towns and cities that they represent. We hope to lead the world, in particular in driving down emissions and by having the first ever all-electric bus town or city, to which we have already made a financial commitment. When we host the 2020 United Nations climate change conference in Glasgow, we can use that prime opportunity to talk about how public transport drives our decarbonisation agenda.
I must reflect on the comments made by my hon. Friend the Member for Stafford, who spoke passionately about the environment. I hope she can relay back to her constituents our commitment to decarbonisation. She mentioned access to Sunday services, the Cannock Road service and loneliness. The bus strategy is embedded into the Government’s loneliness strategy, which I have previously represented across Whitehall Departments. I hope that demand-responsive transport will provide some succour for her constituents.
Full debate: Public Transport: North Staffordshire
I am today announcing the publication of the clean maritime plan, the UK’s route map to clean growth for the maritime sector and pathway to zero-emission shipping. The UK has one of the world’s proudest and most innovative maritime heritages. In January 2019, the Government launched Maritime 2050, a landmark strategy setting out our vision for the future of the British maritime sector. The clean maritime plan is the environment route map of Maritime 2050. It identifies ways to tackle air pollutants and greenhouse gas emissions in parallel, while securing clean growth opportunities for the UK. A cleaner shipping industry will help make the air we breathe cleaner and safer, and create a healthy environment for the future.
It builds on the role the UK played as a leading voice in advocating for an ambitious global target to reduce greenhouse gases from shipping. The initial greenhouse strategy agreed by the International Maritime Organisation in 2018, set a target to reduce GHGs from international shipping by at least 50% by 2050 and to phase them out completely as soon as possible in this century. By publishing the clean maritime plan, the UK becomes one of the first countries since the agreement of this initial strategy to publish a national action plan. The plan is also the first cohesive national strategy to reduce domestic shipping emissions, as part of our journey to meeting net zero.
To capitalise on this economic opportunity and achieve zero-emission shipping, the clean maritime plan makes the following core commitments:
A call for evidence in 2020 on non-tax incentives to support the transition to zero-emission shipping, as well as a consultation on how the renewable transport fuel obligation could be used to encourage the uptake of low carbon fuels in maritime, and a green finance initiative for maritime, which will be launched at London international shipping week in September.
A working group and study to identify and support potential UK zero-emission shipping clusters.
A maritime emissions regulation advisory service (MERAS), in place by 2020, to provide dedicated support to innovators using zero-emission propulsion technologies.
The plan also contains a number of zero-emission shipping ambitions, outlining the Government’s vision for the future of zero-emission shipping and the milestones that will need to be achieved to reach it.
Full debate: Clean Maritime Plan
I turn to the environmental impact, which is of great concern. As a result of Labour’s motion, Parliament has declared a climate emergency. These are not just words; this is a call to action to ensure immediately that no part of Government adds to the loss of biodiversity, adds to the amount of carbon in the atmosphere, or makes sustained changes to the environment. Labour is pleased with the mitigation proposals under HS2, but when our planet is under such intense threat, and when transport emissions account for 29% of all UK emissions, there is an obligation on the Government—not least the Department for Transport—to respond proactively by reducing the impact on the environment.
Full debate: High Speed Rail (West Midlands - Crewe) Bill (Second sitting)
Before I address some of the issues raised about climate change, I remind the hon. Member for Reading East that travelling by rail is the most efficient way to travel. It is a good form of transport because it means that passengers do not fill up lots of cars on the motorway or take flight. The hon. Gentleman threw down the gauntlet on a number of issues relating to carbon impacts; he gave me the right to reply in writing, but I may have the answers in front of me, so I will do my best to respond.
Compared with most other transport modes, high-speed rail offers some of the lowest carbon emissions per passenger kilometre, significantly less than cars and planes. As an annual average, the scheme’s carbon footprint over the course of the construction period will represent less than 1% of the UK’s annual construction carbon footprint. The scheme is expected to save 419,000 tonnes of carbon dioxide emissions through modal shift in transport—that was a very good term that the hon. Gentleman used—with approximately 364,000 tonnes saved as a result of road, rail and domestic air passengers switching to high-speed rail, and 55,000 tonnes saved as a result of road freight moving on to existing rail lines due to released capacity from the scheme. Over the 120-year design life of the scheme, the net carbon emission reduction from modal shift is estimated at minus 307,000 tonnes.
Full debate: High Speed Rail (West Midlands - Crewe) Bill (Second sitting)
When it comes to maritime emissions, we can look at the work of the International Maritime Organisation, which is opposite us on the Thames. A huge amount of work was done earlier this year to look at driving down greenhouse gas emissions by 50% by 2050. It is interesting to note that this Government led the high-ambition coalition to get that agreement made, so we are not only leading nationally, but driving down greenhouse gas emissions internationally as well.
Full debate: Oral Answers to Questions
As the global maritime sector adapts to challenges such as climate change, rapid technological advances and security concerns, Maritime 2050 sets a series of strategic ambitions around which Government and the sector will focus their efforts, and core values which we will be guided by.
Full debate: Maritime Strategy
Since its inception, the policy on biofuels in the UK has been complex and not without controversy. Immediately after the renewable transport fuel obligation scheme—RTFO—was set in law in 2007, the Gallagher review into the indirect effects of biofuel production was published. It became clear that to maintain faith in the emissions reductions achieved and to retain consumer buy-in, we would have to address the negative indirect effects of certain biofuels. To reward fuels that may perform worse than the fossil fuels they replace would have undermined the rationale of a scheme designed to reduce greenhouse gas emissions.
It was with those challenges in mind that the Department jointly established a transport energy taskforce with the Low Carbon Vehicle Partnership, to consider how biofuels can contribute to meeting our climate change commitments in the context of measures introduced to address the negative indirect impacts of some biofuels.
The taskforce report to Government noted not only the potential benefits of E10 in helping the UK to meet our renewable energy targets, but the barriers and risks associated with its introduction, not least in respect of ensuring consumer acceptance. It is clear that UK suppliers, including of bioethanol, have made great progress in ensuring that renewable fuel delivers reductions in greenhouse gas emissions.
Since the RTFO was introduced in 2008, savings in greenhouse gas emissions have increased significantly from 46% to 70% in 2014-15. Latest data suggest that current biofuels provide an average 71% reduction in greenhouse gas emissions even when land use change impacts are included, but it has always been essential to evolve the policy on biofuel. That way, we maintain the integrity of the schemes that promote its use, such as the RTFO.
The Government agree that the aim must be to reduce emissions and that low carbon fuels must play a part. The regulations made last year introduced a greenhouse gas reduction obligation on suppliers and incentives for the development of fuels capable of delivering higher greenhouse gas emissions reductions. These allow us to reward low carbon fuels because of the emissions reductions they deliver. We have also made £20 million of match capital funding available under the future fuels for freight and flight competition. In the wider context, the Government have recently published two major strategies focused on combating climate change and improving the UK’s air quality. Our Road to Zero strategy sets out a clear pathway to zero emissions vehicles by 2050, and this week we have published our clean air strategy. The pathway is not just about driver behaviour and electrification. Low-carbon fuels will continue to play a vital role in reducing greenhouse gas emissions from the vehicle fleet.
I thank everyone for contributing to the debate. The use of biofuels is and will remain a challenging policy area. However, this must never stop us from finding the right balance between maximising the contribution that low-carbon fuels can make to reducing greenhouse gas emissions and taking into account the interests of consumers.
Full debate: British Bioethanol Industry
The Government recognise the significant harm that air pollution can cause to human health. When the hon. Gentleman raised the subject in a previous debate, we wrote to him about it; I would be pleased if he allowed me to respond in writing again. We have now published our clean air strategy, which includes further measures on ports and shipping. Shipping must play its part, and I was pleased that last year my Department established the Clean Maritime Council. One of the council’s first tasks was to develop a clean maritime plan by spring this year, setting out domestic policies to reduce greenhouse gas and pollutant emissions from shipping. Our clean air strategy makes further commitments, including the development of air quality strategies by ports. It will supplement the good progress made through international action, such as the North sea emission control area and the tougher global controls on sulphur emissions from 2020, which have led to major reductions in emissions.
Full debate: Draft Merchant Shipping and Other Transport (Environmental Protection) (Amendment) (EU Exit) Regulat...
The regulations are essential to ensure that legislation on ROs, which are a crucial part of the regulatory framework for shipping, continues to work effectively in the UK from day one after our EU exit. I am grateful that the hon. Gentleman will allow me to respond in writing to some of the issues that he raised. However, I remind him that we are part of the high ambition coalition driving the IMO’s standards not only on greenhouse gas emissions but on other emissions into our waters.
Full debate: Draft Merchant Shipping (Recognised Organisations) (Amendment) (EU Exit) Regulations 2019
That the Committee has considered the draft Merchant Shipping (Monitoring, Reporting and Verification of Carbon Dioxide Emissions) (Amendment) (EU Exit) Regulations 2018.
It is a pleasure to serve under your chairmanship, Mr Betts. We are debating regulations that will amend EU regulation 2015/757 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport. The effective monitoring and reporting of carbon dioxide is an important step on the road to achieving a more environmentally sustainable shipping sector. We expect that the emissions data gathered will help the international community to develop more effective measures to reduce greenhouse gas emissions from ships. The EU regulation established rules for monitoring, reporting and verifying CO 2 emissions from ships above 5,000 tonnes that make voyages that start or finish in a port in an EU member state. The EU regulation has direct effect in UK law.
Shipping companies have already prepared monitoring plans and have been collecting data since 1 January 2018. Ships within scope are required to carry a valid document of compliance from 30 June 2019. The EU regulation applies only to ships visiting ports that are under the jurisdiction of an EU member state. It would therefore cease to have effect when the UK leaves the European Union. The changes made in the regulations are therefore necessary to ensure that the monitoring, reporting and verification requirements of the EU regulation continue to apply to ships serving UK ports. If the UK failed to correct the EU regulation, ships that call at EU ports would still need to report under the EU system. However, those trading between the UK and non-EU ports would not need to report. That would create an uneven playing field between companies, and the evidence on greenhouse gas emissions would be weakened.
The UK is a strong supporter of global action to tackle climate change. In April this year, we helped lead the high ambition coalition to secure agreement at the International Maritime Organisation on an initial strategy on greenhouse gas emissions. That includes an historic first emission reduction target for ships of at least 50% by 2050, which is an important step forward in tackling emissions from international shipping—the last major sector not to have an emissions reduction plan. The International Maritime Organisation has also produced its own system for monitoring CO 2 emissions from ships. Its data collection system has a similar objective to the EU MRV regime, but will be effective from 1 January 2019, a year later than the European system. Robust information on emissions from ships is important when taking action to reduce such emissions, and that is what the EU regulation aims to provide. If we did not ensure that the regulation continues to have effect, we would be weakening the evidence base on which the development of effective and appropriate measures depends.
As well as amending the EU regulation, the instrument makes a number of other changes, mainly technical and operational in nature, to ensure that the system continues to work. Those changes are to Commission implementing regulation 2016/1927 on templates for monitoring plans, emissions reports and documents of compliance, and the Merchant Shipping (Monitoring, Reporting and Verification of Carbon Dioxide Emissions) and the Port State Control (Amendment) Regulations 2017. The latter regulations provide an enforcement mechanism for the EU regulation in the United Kingdom.
The regulations before the Committee are intended to ensure that all ships visiting UK ports are subject to the same reporting requirements and that the UK continues to play its part in international action on greenhouse gas emissions from shipping. They are fully supported by the Government, and I commend them to the Committee.
Full debate: Draft Merchant Shipping (Monitoring, Reporting and Verification of Carbon Dioxide Emissions) (Amendm...
I can give my hon. Friend the fullest assurance. Shipping is an international industry, and the UK strongly believes it should be regulated at an international level by the IMO. My officials and I recently played a leading role at the marine environment protection committee, where we secured the landmark agreement on phasing out greenhouse gas emissions. The UK takes great pride in being the host Government of the IMO, which is based just across the Thames, and we will continue to maintain our active role within the organisation’s work for the foreseeable future.
Full debate: Fishing Vessel Safety
On 13 April the International Maritime Organisation (IMO) agreed a comprehensive strategy to reduce greenhouse gas emissions (GHGs) from international shipping. The United Kingdom, led by the Department for Transport, played a leading role in the negotiations, pushing for an ambitious and credible outcome that would enable shipping to play its part in meeting the Paris agreement temperature goals.
A target of at least 50% reduction, and an aim for 100% reduction, in total GHG emissions from shipping by 2050;
Full debate: Greenhouse Gases: International Shipping
Those international controls are having a major positive impact on air quality, but I agree with the hon. Gentleman that we need to go as far as we can on this. The controls have been successful in achieving major emissions reductions, and in stimulating the development and uptake of alternative fuels, innovative green technologies and new ship designs. That said, we are not complacent and we know that much more needs to be done and can be done. At the international level, the UK is strongly pushing for an ambitious and credible strategy to reduce greenhouse gases from shipping, and I invite the hon. Gentleman to support the UK’s efforts to get a strong and forward-thinking agreement at the International Maritime Organisation as we enter the final weeks of negotiations after Easter. Furthermore, we will continue to press for international action that will enable the uptake of low and zero-emission technologies. However, we also want to ensure that we are doing all we can to reduce emissions in UK waters.
I mentioned before that my Department was developing a maritime air quality strategy to feed into the Department for Environment, Food and Rural Affairs’ clean air strategy. My officials are engaging with stakeholders to understand the best approach to reduce emissions, and we are working with industry, academia, trade bodies, ports and other Departments to ensure that any strategy is credible and time-proof. As part of that, we are clear that we need a strong evidence base about the impact of shipping on the environment to inform decisions about the best solutions to reduce pollutant emissions from ships, and we need to ensure that any solutions to reduce pollutant emissions are not dealt with in isolation, but support the need to reduce greenhouse gas emissions. We consider that a holistic strategy is the best way to enable the long-term goal of zero-emission shipping in the UK.
Full debate: Air Quality and Shore-to-Ship Charging