Rebecca Long-Bailey is the Labour MP for Salford.
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What was actually in the King’s Speech? Well, the big flagship policy seems to be the Offshore Petroleum Licensing Bill, which completely undermines the Government’s so-called commitment to net zero. Staggeringly, even the Government admit that the Bill will do nothing to bring down household bills.
Full debate: Building an NHS Fit for the Future
With all this in mind, why on earth would the Government pursue a strategy that poses such risks and flies in the face of efforts to tackle climate change? Well, the author and climate commentator Naomi Klein calls it
Full debate: Ban on Fracking for Shale Gas Bill
The bigger issue is the business model of the energy sector as a whole. For years since privatisation, the monopoly grid companies prioritised dividend extraction over upgrading the system for renewable energy. The generators did not really start investing in renewables until public money was put on the table, and the supply market is in complete disarray. Many smaller suppliers are now folding, creating even less competition and leaving huge market shares for the bigger players. In response to that collapse, we see the Government setting aside billions in public funds to prop up firms that are too big to fail, but with that public money comes no change in the broken energy market, no reduction in household bills and none of the benefits of public ownership.
Full debate: Household Energy Bills: VAT
“Climate change is a message, one that is telling us that many of our culture’s most cherished ideas are no longer viable.”
Full debate: Climate Goals: Wellbeing Economy
The good news, however, is that bringing water into public ownership would pay for itself within about seven years. After that, it would save the public purse £2.5 billion a year. That money could be invested in infrastructure to stop sewage pouring into our rivers, lakes and seas, as well to reduce leaks to save water and cut bills. The new public water companies could be democratically controlled, transparent and given a duty of care to take care of our environment, to clean up our rivers and seas, and to do everything they can to tackle the climate crisis. There is no excuse not to do this.
Full debate: Water Companies: Sewage Discharge
I am sure all hon. Members here today are aware that the Intergovernmental Panel on Climate Change report argues that we need a code red response to a code red emergency. That response should be reflected not only in our approach to decarbonising industry, energy use and developing a sustainable economy, but in our approach to climate change and sustainability, and the skills needed for the new future we deserve must be embedded in our education system. Sadly, however, the report card on climate education that Education International has just produced, based on its analysis of 73 updated nationally determined contributions presented for COP26, has found that no country is doing enough to meet the criteria, and the UK comes in 42nd out of 73.
As the country leading COP26—the most pivotal and important conference of the parties so far—that is not good enough, especially when the UK is still off track on meeting many of its carbon targets and the amount of investment pledged to decarbonise our economy so far is pitiful in comparison to many other industrial nations. Sadly, only last week the Government were mired in controversy after opposing an amendment to the Environment Bill that would have restricted the pumping of raw sewage into our water systems. That does not give the impression of a Government that is serious about tackling the climate and ecological emergency. However, we have cross-party consensus today, and the Minister can do his part in changing that perception.
As the Minister may know, education unions wrote to the Education Secretary last week and requested that he make four key announcements before the COP. First, they called for a comprehensive review of the entire curriculum, so that it is preparing and mobilising our whole system for a sustainable future. Secondly, as an interim measure, the Government should support the private Member’s Bill of Lord Knight of Weymouth, which would restore sustainability as a pillar of the curriculum. Thirdly, they called for a comprehensive plan to decarbonise the entire school estate by 2030 as part of an overdue refurbishment and repair programme. Finally, a detailed policy on green travel for students, staff and parents should be developed.
As the Minister knows, it is the next generation who will bear the brutal costs of inaction on climate change. We have a moral duty to secure their future and, as a nation, to lead the world at COP26. I am sure that the Minister agrees, and I hope he will implement the requests I have set out as a matter of urgency.
Full debate: Sustainability and Climate Change (National Curriculum)
Finally, on climate change, there was gross betrayal. I must admit that I was intrigued when the Government stole our green industrial revolution tagline, and I secretly hoped that they would adopt Labour’s programme too. It would have been to all of our benefits, with 1.9% invested each year on energy and homes alone, which would have provided over £800 billion across the UK by 2030, and 850,000 new jobs. That would have been a true green recovery, but so far in comparison we have seen pitiful levels of investment. Yesterday, we saw a paltry £12 billion for a new green infrastructure bank, the green recovery bonds, shiny retail savings products, and some distant report into carbon offsetting, all amounting to very little.
If the Government were serious about tackling climate change, they would grab the opportunity to reverse decades of de-industrialisation with a bold green regional investment strategy. Instead, they have betrayed us in the fight against climate change, betrayed our recovery and betrayed our financial security.
Full debate: Income Tax (Charge)
We live in precarious times. The three crises we face, coronavirus, the social emergency and the climate emergency, demanded a brave Budget—a bold Budget—to tackle them head-on. It was welcome to see action to help businesses encountering cash-flow problems, zero rates for businesses that qualify for the retail discount, the loans available for those affected by the virus and the 14-day statutory sick pay rebate for small firms. Those measures will help, but there remain gaping holes in the Government’s response to the virus. Statutory sick pay is £94 a week, which is not enough for many people to live on and pay the bills. People who fall ill will be forced to choose between hardship on the one hand and risking their health and those of their colleagues on the other. What of those not eligible to receive sick pay—the insecure workers created by a decade of Tory rule? For them, the choice is even starker. While extra funding for the NHS is welcome, we cannot overturn a decade of cuts and capacity shortages overnight with a quick cash injection.
Turning to the emergency that will define our generation and those to come, the climate emergency, I would like to list those things on which this Budget was silent. On solar power, wind power and tidal power, there was nothing. On the Tory manifesto pledge to support hydrogen production—nothing. On the Tory manifesto pledge to spend £9.2 billion on energy efficiency and cut household bills—nothing. On the Tory manifesto pledge to support a gigafactory for electric vehicle batteries—nothing. On reducing emissions from agriculture—nothing. On making public transport more affordable—nothing. And on measures to support workers and communities to transition away from carbon-intensive industries—nothing.
Then there is a commitment to consult on measures to support renewable heat. There is a commitment to consult on green gas. There is a commitment to publish a review—sorry, two reviews—on the cost and benefits of reaching net zero. I do not think I am alone in this House in saying that consultations and reviews are not quite what we had in mind when we declared a climate and environment emergency last year.
Public calls for a climate Budget have never been louder, but what does that mean in practice? There are three key tests. First, is the Budget adequate? Does it take its lead from science rather than political expediency, cutting emissions at the rate necessary to avoid dangerous heating? Secondly, is the Budget aspirational? Will it create hundreds of thousands of good green jobs, positioning the UK as a world leader in the green industrial revolution, bringing huge wealth to all regions and nations? Finally, is the Budget fair? Does it spread the costs of dealing with the climate emergency in a way that is progressive and just, at home and internationally?
Full debate: Budget Resolutions
I agree with much of what the Secretary of State said in her speech, but that ambition needs to be matched with sufficient action. I hope she takes the comments that I am about to make in the spirit in which they are intended, so we can work across the House and reach a solution to the climate emergency.
I pay tribute to my colleagues Danielle Rowley, Laura Pidcock and Sue Hayman, who were sadly unable to take their place after the general election. Each one of them has been a champion, fighting against the climate emergency, and their policy work will leave a mark on this House for years to come. I welcome my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) to his new role on the shadow DEFRA team. I am sure he will also leave his mark in the years to come.
Climate change and environmental breakdown present an existential threat to our society. I doubt that there is a single Member of this House who would disagree with me. Seeing off that threat by investing in new industries and technologies, and the restoration of our natural world, has the potential to bring jobs, new wealth and new pride to all the regions and nations of the UK. Again, I doubt there is a single Member of the House who does not want to see that.
So we start from a position of agreement on the green industrial revolution, which, in a nutshell, is about achieving just that. But to make it happen, rather than just talking about it, three qualities are required that are lacking in the Queen’s Speech: honesty, ambition and fairness. We need to be honest with ourselves and with the electorate about what the science says is necessary to avoid planetary catastrophe; we need to be ambitious, deploying our resources and testing our inventiveness at a pace and scale that is commensurate with the challenge; and we need to be fair, tackling climate change in a way that is socially just, that leaves nobody behind, and that meets and exceeds the expectations that people have for their lives and their communities.
I turn to the first quality—honesty. The Queen’s Speech references the Government’s commitment to achieving net zero greenhouse gas emissions by 2050, but the Intergovernmental Panel on Climate Change, which is the world’s leading scientific body on the subject, says that the entire world needs to reach net zero by 2050 to avoid more than 1.5° C of warming. Given the UK’s historical responsibility for climate change, and our wealth and resources to do something about it, we clearly need to be ahead of the curve on this, and we need to be honest that 2050 is not good enough—not if we are serious about keeping our people safe. I urge the Government to revisit this target.
My hon Friend is making an excellent speech. COP26 is coming to the UK this year. Is that not an additional responsibility for the Government, not just a historical one? Is it not true that we have a responsibility for the entire planet as the president and host of COP26?
My hon. Friend is spot on. We have an opportunity now to show on the world stage that we really mean business when it comes to tackling climate change. We need to lead the world, and not just in terms of the industries we support in the UK. We need to lead by example and encourage other countries across the world to take as robust action as I hope we will do over the coming years.
My hon. Friend is making an excellent speech. Does she agree that, despite the grand statements from the Government, they are missing all the targets that they are putting in place due to their own mediocre measures? Does she also agree that the cuts to renewable energy subsidies need to be reversed, and that we need to ensure that the Government work towards jobs in the green industries—unionised jobs? Rather than just talking a good game, the Government actually need to deliver.
We need to be honest that we are off track when it comes to meeting our targets, inadequate as they are. In fact, according to the Committee on Climate Change—the Government’s official advisers—the UK is even off track with regard to meeting its old target of an 80% reduction by 2050. The UK’s CO 2 emissions fell by only 2% between 2017 and 2018. Politics aside, that is nowhere near good enough. Let us be honest about what it means. It is not like failing an exam or a driving test. Failing on climate change means devastating fires sweeping across Australia and the Amazon. It means critical threats to food security, water security and the entire ecosystem, on which we all depend.
My hon. Friend is quite right. It is devastating to see the impact of what has happened in her constituency. We need to tackle the climate emergency, and we need a robust industrial strategy to sit alongside it. This is the biggest economic opportunity that the country has had in a generation. By tackling a huge societal and environmental need, we can support our industries and create the new green jobs of the future. Unfortunately, although we talk about targets, and about providing help here and there, we are not backing it up with a comprehensive industrial strategy that supports our industries. What was lacking in the general election campaign—although certainly not from the Labour party—was support for the steel sector, with a robust strategy ensuring that the steel industry plays a key role in our infrastructure projects and the technologies of the future. That is what I would like to see from this Government.
On honesty and ambition, the hon. Lady said that net zero by 2050 is not good enough, so I am sure she will welcome the fact that the Scottish Government have legislated for net zero by 2045. During the general election campaign, Labour started talking about net zero by 2030. Currently, 27 million homes rely on fossil fuels, so getting to net zero by then would mean changing over 52,000 homes a week every week from 1 January 2020 until the end of the decade. What are Labour’s plans for doing that?
I thank the hon. Gentleman for his comment. Certainly, there is no point in having a target without having an ambitious plan to deliver it. We know from the work of leading scientists across the world that the majority of the work that needs to be done even to reach net zero by 2050 must be done by 2030. That is an inescapable fact and that is why we have to move so quickly.
The Government have started to work towards insulating social homes. That is welcome, but it is not enough. We need to look at how we can support the UK’s 27 million homes to take part in a home insulation programme that will not only tackle climate change but help to bring down bills. We had an ambitious package for that but unfortunately we did not deliver that message strongly enough in our election campaign.
My hon. Friend is quite right. We are expected to encourage our localities and our regional governments to take part in the climate emergency and to do their best to deliver plans on a local scale, but they are not being given sufficient resources to be able to do so. That is not acceptable, because this is a national crisis and a local crisis. That goes right to the heart of the point about public transport. We need to make sure that all the workers involved in transport are given the opportunity to deliver transport that is eco-friendly, but they are not, particularly taxi drivers. Taxi drivers, in many cases, cannot afford to transition to electric vehicles as rapidly as we need them to, and we must provide the support that is necessary for them to be able to achieve that.
A little earlier, the shadow Minister implied that climate change was causing the raging fires in the Amazon and Australia. The fires in the Amazon are caused by mankind trying to create agricultural land, not climate change, as I would expect it is very wet out there. In Australia—this goes back to a question I asked earlier—75% of fires are caused by arson.
I welcome the hon. Gentleman’s points, but we need to move beyond discussions regarding climate change denial and recognise the scale of the task ahead of ahead of us, because the science is clear. We are facing a climate emergency, and if we do not take robust action and lead the world, we will not have a world left—it is as simple as that.
I am very disappointed that the hon. Member for South Dorset (Richard Drax) has mentioned the 75% figure, which was also mentioned by the Foreign Office Minister who gave the statement on the bushfires last week. It is fake news that is being spread by climate change deniers in Australia. A letter to The Guardian from a number of well-renowned climate academics, including several from Bristol University, was published yesterday. I think the true figure for arson is less than 1%. I would like to make sure that that is absolutely on the record.
With reference to civil society groups like Extinction Rebellion who have been urging those in power to tell the truth about climate change, I was alarmed by reports that the Government’s response was to defend the recommendation to list them alongside neo-Nazi terrorists. That is an absolute disgrace. I urge the Secretary of State to speak to her colleagues about this. It is absolutely absurd that our school strikers and our climate activists who were trying to fight to be heard here in Westminster are being listed alongside terrorist organisations when they are simply trying to save the planet and deliver a world for their future and that of their children and grandchildren.
I have no doubt in my own mind that the landslips, the flooding and the collapse of roads is being caused by climate change: I come from the land of the mountain and the flood. Highland Council and all rural councils, not just in Scotland but all over the UK, are faced with the cost of the restoration works. Adding to the hon. Lady’s suggestion that the money is not there, does she agree that we need a dedicated income stream for the devolved institutions in the UK to pay for these repairs, because otherwise it is just going to get worse?
I thank the hon. Gentleman for his comments because he is quite right. As I said earlier, we cannot keep having discussions about whether climate change is real. It is real, and we cannot detach ourselves from the situation in thinking that it is something that happens to other countries across the world and it is not going to affect us. It is already affecting us, and even if it does affect other countries across the world we will need to help the people in those countries. We also need to recognise that for a country like ours that is so reliant on imported food, any disruption to any part of the world disrupts our quality of life here. That is why it is so important for us to protect the people here in the UK by making sure that we lead across the world on this. I am sure that we have collaborative agreement across the House on that point.
Let me move on to the second quality that is required—ambition. The purpose of the Queen’s Speech should be to look forward—to set out the Government’s future plans—but most of the climate section looks backwards, sadly, to the Government’s record over the past 12 months, and even this is confusing to many. There is reference to £400 million of funding for electric vehicle charging infrastructure, but this was first announced in the 2017 Budget. The Queen’s Speech also references an industrial energy transformation fund, but this was announced in the 2018 Budget. We were told that 53% of electricity now comes from low-carbon sources, and that sounds good, but is it really ambitious enough? As any energy expert will tell you, electricity is the easy part. Only 11% of the UK’s total end energy consumption, including heat and transport, comes from renewable sources. Only 7% of the UK’s heat demand is met by renewable sources. As Labour set out at the general election, to get on track to a net-zero energy system, we need low-carbon electricity at levels of above 90% within a decade.
The Government reference their doubling of international climate finance, and this sounds good until you realise that this money is not new or additional and that the Government are effectively raiding the aid budget to pay for it. The Government want to ensure that everybody is within 30 miles of an electric charging point, but that does not sound particularly ambitious to me, to be honest. Nor does the commitment to end the export of plastic waste to non-OECD countries when 60% of our plastic waste exports are actually shipped to OECD countries. Should not the Government be asking why we are producing all that pointless plastic in the first place and cut it off at source rather than dumping the problem overseas?
There are of course welcome features in the Queen’s Speech, such as the commitment to invest £800 million to develop the UK’s first carbon capture and storage cluster by the mid-2020s. But I remember the time in 2010 when the coalition made a £1 billion commitment to CCS before scrapping it again in 2015. Can the Secretary of State assure us that the UK’s carbon-intensive industries will not suffer the same fate as when the last promise was made? Why is it that as the climate crisis worsens the Government appear to be treading water and going backwards? Tackling the climate and environmental emergency and capturing the massive opportunities of the green economy require ambition. We needed to see an emergency plan for the first 100 days of Government—a plan for every year of this Parliament and a plan for the decade ahead. Sadly, the Queen’s Speech does not come close to this.
I now turn to the third and final quality—fairness. Rapid decarbonisation across our economy requires fundamental changes in the way we work and the way we live. Done badly, this presents big risks to people’s livelihoods. Only by socialising the costs and the benefits of decarbonisation will we be able to take the public with us through this change, but the Queen’s Speech does not set out a plan to do that.
To give an example, fossil fuel workers have powered the country for decades. We need a clear and properly funded plan for what will happen to those workers and their communities as we move to a renewable energy system. We tried to set out proposals at the election for a just transition fund. The absence of a plan for a just transition in the Queen’s Speech is a major omission, and I urge the Government to do better and start listening to and working with trade unions on this as quickly as possible.
It was more than 30 years ago that NASA scientist James Hansen presented his findings on climate change to the US Senate. Nobody could reasonably argue that we have done enough since then, and now we are running out of time. We cannot afford another lost five years. I urge the Government to work with us and Members across the House to correct the obvious shortcomings of the Queen’s Speech and their agenda, and to develop a package of measures that can secure the future all of us deserve. There is still time, but it is running out.
Full debate: A Green Industrial Revolution
All this is coming at a time when we face a climate crisis across the world, and it is simply unacceptable.
Full debate: European Union (Withdrawal) Acts
Does the Minister agree with the TUC that, while decarbonisation presents exciting economic opportunities, the lack of a comprehensive and just transition policy and a coherent industrial strategy means that many well-paid, highly skilled unionised jobs are under threat?
Full debate: Oral Answers to Questions
The truth is that the party that devastated the UK’s industrial heartlands in the 1980s does not have a just transition plan. Will the Minister put ideology and laissez-faire economics aside and work with us on this side to make a real green industrial revolution a reality?
Full debate: Oral Answers to Questions
I thank the Secretary of State for advance sight of his statement. I echo his thanks, not least to the Committee on Climate Change, and to my right hon. Friend the Member for Doncaster North (Edward Miliband), my hon. Friend the Member for Leeds West (Rachel Reeves) and the hon. Member for Cheltenham (Alex Chalk). I, too, would like to welcome the right hon. Member for Devizes (Claire Perry) back to her place.
I begin by welcoming the statement. The Chancellor of the Exchequer was just wrong, in my view, recently to exaggerate the costs of achieving net zero, and it is good to see the Government listening instead to the experts at the Committee on Climate Change. The Labour party committed to a target of net zero emissions before 2050 at its 2018 conference, and it is welcome to see the Government move in a similar direction.
in meeting those targets at all. It is, however, a matter of fact, confirmed by the Committee on Climate Change and official BEIS statistics, that the UK is off track to meet its fourth and fifth carbon budgets. It would be helpful if the Secretary of State took this opportunity to correct the record, and to tell the House—if the Government are off track to meet their existing carbon budgets—what immediate strategic decisions he will make to ensure that the public can have confidence in the Government’s ability to meet even more stringent targets. That confidence can certainly be restored, but the Secretary of State must recognise that urgent commitments to investment and new legislation will be needed
Today’s statement is a welcome first step, but the Secretary of State has already recognised the scale of the task that lies ahead. Since 2015, when the Conservative Government secured a majority, they have systematically dismantled the policy frameworks that were designed to tackle climate change. They have effectively banned onshore wind, reduced almost all support for solar power, scrapped the zero carbon homes standard, sold off the UK Green Investment Bank, removed support for tidal power, and relentlessly pushed fracking—fracking, of all things! Moreover, there has been a 98% fall in home insulation measures since 2010.
At this point the Secretary of State will mention offshore wind, so let us be clear about that. The Government have committed themselves to bringing 30 GW of offshore wind on stream by 2030—well done!—but that is significantly less than the 50 GW that the Labour party has pledged, and dramatically less than the 75 GW that the Committee on Climate Change says we could need by 2050. Greenpeace has described the slow pace at which the Government have made contracts for difference available as “bewildering”, and analysis by Green Alliance has found that the Government are pushing the sector into a boom-and-bust cycle.
I could go on—these policy decisions have put the UK back by years—but, as climate change is still reversible, so is the Government’s track record. I am trusting the Secretary of State today to promise the House that, as one of his lasting legacies, he will turn that record around. I welcome his collegiate tone, because there are many—not least the Committee on Climate Change, the Labour party, other Members of Parliament, numerous industry groups, and energy and climate organisations—who have the ground-breaking ideas that are necessary. The Secretary of State need only reach out to those who are desperate to help him.
Achieving net zero before 2050 is necessary and affordable, and there is no need to rely on international offsets, which—let us be honest—does look like cheating. At this point, may I ask the Secretary of State whether aviation and shipping are excluded from the net zero targets, and if so, why? To achieve net zero, however, we will need huge levels of investment. We will need co-ordinated planning and new laws, and, as with any emergency, we will need significant Government intervention. I do not believe that that is ideological, or even party-political; it is just common sense, and that is why it is at the heart of Labour’s plans for ushering in a green industrial revolution.
“an inspiration for many countries who seek to design effective decarbonisation frameworks.”
The hon. Lady asked about carbon budgets, which were established by the Climate Change Act. As she will know, for the two carbon budgets that have been met—most recently in 2017—we have achieved surpluses of 1.2% in the first and 4.7% in the second, and we are on track for a surplus of 3.6% in the current one, which will end in 2022. As for the carbon budgets that follow, which run until 2032, at this stage—and we are talking about 15 years or more from now—we are already 90% of the way there.
An important feature of the report from the Committee on Climate Change is its recognition of the astonishing returns from investment in innovation. When the right hon. Member for Doncaster North (Edward Miliband) and I were debating the Climate Change Bill across the Dispatch Boxes—the right hon. Gentleman will remember this—the Opposition came close to defeating the then Government on the question of imposing an emissions performance standard on new coal-fired power stations: we were defeated by just a few votes. The need for such a performance standard is now cast into history, because we have no new coal-fired power stations and we are closing the existing ones. Such is the pace of change. So I am absolutely confident that we will meet the ambition that we have set today.
The hon. Lady mentioned solar power. The Committee on Climate Change has commended the action we have taken through the feed-in tariffs. They were always intended to kick-start the solar industry. The scheme cost £1.2 billion a year, and £30 billion has been spent on supporting the industry. It has been successful, as intended, in bringing prices down. Just as in every other advanced economy, as intended from the outset, it has now closed, but has been replaced by an export guarantee that allows those supplying surplus energy in the market to be paid for it.
My hon. Friend makes an excellent point. One of our requirements, which has been recognised by the Committee on Climate Change, is our need to invest in the energy-intensive industries in particular, to improve their energy efficiency so that they can compete effectively and also to enable us to capture, store and, in some cases, use the carbon they generate. The commitment to carbon capture, use and storage is one of the steps we must take to meet those ambitions.
I thank the Secretary of State for advance sight of his statement. I also welcome the Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), back to the Chamber—although she is no longer present—and echo others in thanking the Committee on Climate Change for its work.
Even before the actions contained in Scotland’s climate change plan, actual emissions were down 3.3% between 2016 and 2017 and down to nearly half of the emissions levels of 1990. The Secretary of State’s Government must be more ambitious. The Committee on Climate Change said that this is “feasible and deliverable”, as was mentioned in the Secretary of State’s statement. Will he also accept the committee’s recommendation which agrees with the CBI on the National Infrastructure Commission’s call that in the 2020s we really need to push ahead with renewables to meet the 2050 target?
yet the Committee on Climate Change, the National Infrastructure Commission and the CBI all say that investment in onshore wind and solar has stalled for political reasons. The CBI has said we should take the politics off the table for onshore wind, so will the Secretary of State drop the Tory ideological opposition to onshore wind?
On the points about carbon capture and storage, part of the opportunity and requirement for net zero is that it is possible to take carbon out of the atmosphere, especially from industrial processes, and of course Scotland and its industrial clusters will have an important part to play in that.
Yesterday, I was in Washington, where I was reminded that this is a fiercely partisan issue there that divides politics, perhaps more than any other. It is something to rejoice in that here there is a very bipartisan view on it. I am very proud that this Government have taken this decision today. They have listened to the scientific evidence and are acting on it, but does my right hon. Friend agree that this is the easy part? We have to carry our population with us as we decarbonise our economy further, change the way we travel, farm and move around, and be a beacon for other countries to do the same.
I warmly welcome the Secretary of State’s announcement and join those who have paid tribute to the Minister for Energy and Clean Growth, because this idea had been lying around for a couple of years in the long grass of government and it was she who took it out of that long grass and helped make it happen. I also welcome the five-year review mechanism because we might well need to bring forward the net zero date from 2050; that might not be the original intention of the review mechanism but it may be necessary. May I however ask the Secretary of State to recognise that in its advice the Climate Change Committee said very specifically that as well as setting the target itself, the Government must put in place the policies to meet the target? That means, as it said, a 2030, not 2040, cut-off date for new petrol and diesel vehicles; a proper decarbonisation plan for our 27 million homes, which we do not have; and an end to the moratorium on onshore wind—a moratorium I believe is now economically illiterate as it is now our cheapest fuel available? Can the Secretary of State assure us that henceforth there will be leadership not just on targets but on action?
I pay tribute to the right hon. Gentleman for his own leadership in this. I think he will recognise that we are not credited simply with leadership in terms of legislation and targets but with achievement. Of the major industrialised countries we are the world leader in decarbonising our economy at the same time as growing that economy. We should be proud of that.
The right hon. Gentleman is quite right: the inclusion of the review mechanism in the Climate Change Act was a prescient one because it has allowed me to write to the committee, which has resulted in the report to which we are responding today. I think five years is a good period in which to see how we and others are doing against that target and whether the pace of implementation is what is required.
I agree with my hon. Friend and I am grateful for her warm words. She is absolutely right to point out some of the possibilities for Cornwall, including the sources of lithium that will be in demand as we decarbonise and electrify cars and other forms of transportation. There are great opportunities for Cornwall and I know that companies there will be creating new jobs on the back of that prospect.
May I start by welcoming the statement and the commitment that the Secretary of State and the Minister for Energy and Clean Growth have given to this? May I also say how proud I am to be a Member of a Parliament that continues to lead the way globally in tackling climate change? I am pleasantly surprised that the Bill I presented to Parliament yesterday has been adopted so quickly by the Government. However, I would say to the Secretary of State that if we are going to will the ends, we also need to will the means, and I urge him to go back to the reports from the Business, Energy and Industrial Strategy Committee and look again at bringing forward the target date for phasing out petrol and diesel vehicles, getting on with the demonstration projects for carbon capture and storage, improving the energy efficiency of our homes by genuinely ensuring that all new homes are zero carbon, and asking more from our house builders. If we do that, we have a chance of meeting the targets that we are now signing up to.
My hon. Friend answers his own question in giving me some examples. It is important to acknowledge that each place has different challenges and different opportunities. My hon. Friend the Member for Truro and Falmouth (Sarah Newton) talked about the potential for the exploitation of lithium in Cornwall, for example. Every part of the country will have its role to play. One of the areas in which local authorities have a signal role to play is charging for electric vehicles. If people have the confidence to accelerate the take-up of electric vehicles, that will make a big contribution to decarbonising the economy.
I welcome this historic announcement by the Secretary of State and congratulate him and the Minister of State on this achievement. Does the right hon. Gentleman agree that any transition must be a just transition for the communities that are experiencing this if we are to avoid the social devastation that we saw in coalfield communities such as mine, where the mines were abruptly closed in the 1980s and 1990s with no plan? Given that there is no accompanying policy to today’s announcement, may I suggest that he follow the advice of the Environmental Audit Committee’s report, published on Monday, which is to phase out taxpayer subsidies for fossil fuel exports so that we are not exporting carbon dependency into low and middle-income countries while preaching about our own virtues here at home?
I very much welcome this announcement. In two weeks’ time, the EYE—eco, young and engaged—project that I founded in 2008 will hold its 11th eco-summit in Worthing, attended by 250 local schoolchildren, to share environmental best practice. Does my right hon. Friend agree that those who most enthusiastically embrace the need to take urgent action on climate change are our youngest citizens? If so, what more can we do to turbo-charge plans to do more in their schools and to lead by example on becoming more carbon neutral by doing more on renewable energy, energy monitoring, understanding food miles and environmentally friendly school transport plans?
I am grateful for the support of my hon. Friend, and, as I said in my statement, we have created a particular role for young people to advise on the policy framework in the knowledge that the consequences of climate change will be felt most particularly by the younger generations. There is a further opportunity. If we succeed, as I hope we will, in hosting the conference of the parties next year, that will provide a big opportunity for young people across the world, and especially in this country, to participate in the deliberations on some of the most important decisions that the world will take. I very much hope we will be able to give that opportunity to young people.
Thank you very much indeed, Mr Speaker. I warmly welcome this statement. It is a significant milestone, but does the Secretary of State agree that we now need to significantly increase the sense of urgency, particularly in decarbonising the heating of buildings and transport? We have no incentive at all to increase energy efficiency in the heating of homes other than for the most vulnerable households; we are still waiting for the consultation on building regulations to deliver zero carbon; and the plug-in grant for vehicles has been cut. This surely is not good enough, and we need to increase that sense of urgency.
I am grateful to the right hon. Gentleman and I congratulate him on his well-deserved knighthood. I think everyone will recognise the reasons for it— [ Interruption. ] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) will have to wait in line, I fear. The right hon. Gentleman is correct to say that we need to decarbonise all parts of the economy. That means reviewing our policies in every area, and it is important that we should do that. He mentioned the plug-in grant for electric vehicles, and one of the desirable features of policies is that a commitment can be made to kick-start the development of an industry to bring costs down, with the intention of withdrawing that commitment when the market has taken flight. We must not get into a position where we can never propose something without it needing to be there in perpetuity, because that would reduce our overall potential for innovation, which, as he knows from his work as Chair of the Select Committee on Science and Technology, would not be good for the UK or for science and innovation.
I do welcome this report, but I would welcome it a lot more if the Government had followed all the recommendations of the Committee on Climate Change, not just the ones that do not cause ideological indigestion. In particular, the committee recommended that the emission reduction effort needs to be done here at home, not outsourced to poorer countries. Carbon offsetting basically slows decarbonisation, and it deprives poorer countries of the low-hanging fruit that they need to meet their own reduction targets. Will the Secretary of State therefore review the decision to rely on dodgy loopholes, and will he ensure that the domestic action is all done here at home?
I am grateful to the hon. Lady for welcoming the commitment, but she knows that the Climate Change Act 2008 includes the use of credits. The Committee on Climate Change has not recommended that we should repeal that part of the Act, just that we should not aim to make use of them. We support, accept and agree with that recommendation, so we will not be making use of credits.
The Crawley-headquartered Virgin Atlantic had its first biofuel flight last year, and the Gatwick-based easyJet is now flying the new A320neo, which has a much-reduced carbon output. In moving towards net zero emissions, what support can the Government give to the world-leading UK aviation industry, so that it can play its part in ensuring that we can be an island trading nation while leading the world on environmental protection?
The UK is making good progress on clean electricity thanks to policies introduced by successive Governments, but we are not yet making the progress we desperately need to reduce greenhouse gas emissions from transport. What does the Secretary of State think the key problems and challenges are, and what we are going to do about them?
If the hon. Lady reflects on the progress that is being made, she will see that the accelerating take-up of electric vehicles makes a major contribution. Through the industrial strategy, we have funded the research and development of new electric powertrains for commercial vehicles—vans, lorries and agricultural vehicles—which will be important. We need to double down on that commitment, but we made the right strategic judgment three years ago when we targeted the future of mobility, including electric vehicles, as being one of the principal contributors not just to tackling climate change, but to creating jobs in the economy.
I congratulate the Secretary of State on this important announcement. As he says, the challenge is now all about implementation. May I therefore encourage him to look closely at the Marine Energy Council’s proposals for how to stimulate the production of that side of green energy, which is still the Cinderella of the sector? In addition, may I ask him to work closely with the Secretary of State for Environment, Food and Rural Affairs to reduce the amount of illegal plastic waste currently being exported in a disgraceful way to Malaysia and elsewhere in south-east Asia, which will, if not stopped, damage our strong environmental commitments?
In wholeheartedly welcoming this statement, may I ask the Secretary of State to do two things? First, will he reverse the Government’s decisions to abolish the zero-carbon homes regulations, to ban onshore wind and to proceed with a third runway at Heathrow? Secondly, will he agree to meet me to discuss how we can decarbonise capitalism, particularly in the City of London? Given that the City funds 15% of global fossil fuel investment, if we can decarbonise the City, that can have a massive impact on the whole world.
I note that this statement marks 30 years of global British leadership on this issue, under both parties. Margaret Thatcher was the first P5 leader to devote the entirety of her speech to the United Nations General Assembly to this issue. Turning to the cost estimates, does the 2% envelope include the likely benefits that will come from the technology that will be generated from investment in this area? On the flipside of that, if British leadership fails to take the rest of the world with us, what kind of estimates have been made of the costs of protecting our country from the consequences of climate change?
My hon. Friend makes an excellent point. Mrs Thatcher was the first world leader to declare a climate emergency. I recently reread the speech that she made to the UN, and I would commend it to any Member of this House. Its prescience and rigour are remarkable, and it bears reading again today.
The 1% to 2% cost estimate of the Committee on Climate Change is exactly what the House voted for in 2008. It is a gross figure, not a net figure, and does not include the benefits. My hon. Friend is absolutely right that it also does not include the consequences and costs of a failure to tackle climate change, although the committee’s report sets out in great detail some of the negative consequences were we and the rest of the world to fail to act.
I, too, welcome today’s statement as an important step forward. I hope the Secretary of State will join me in congratulating Birmingham City Council, which last night declared a climate emergency and a much more ambitious date to achieve zero carbon status. I hope he will also congratulate Birmingham Youth Strike 4 Climate, which has helped to lead this campaign in our region.
It is open to local authorities and to companies to take decisions themselves on when they can be carbon neutral, and many have done so. I am interested to hear that the right hon. Gentleman’s council has followed suit. He knows that the west midlands industrial strategy, which was mentioned in Prime Minister’s questions, has a substantial recognition of the opportunities across the region not only for participating in solving climate change but in reaping the benefits of the technologies.
I warmly welcome this announcement. Will the Secretary of State join me in encouraging everyone inside and outside this House to see decarbonisation as an opportunity to be grasped, not a burden to be managed? Combining technology, particularly artificial intelligence, can lead to lower costs, economic benefits, efficiencies, cleaner energy and, of course, high-quality employment opportunities for our constituents.
It is a simple fact that we cannot reach net zero without a change in diet, a radical rethink of land use, at least a halving of food waste and embedding sustainability in the food chain from farm to fork. It is all well and good for Ministers to talk about carbon sequestration from soil and planting more trees, but that is very much the safe ground. We need to see a far more ambitious strategy both from the Department for Business, Energy and Industrial Strategy and from the Department for Environment, Food and Rural Affairs to achieve the reduction in emissions from food and farming that we need to see. Will the Secretary of State start by endorsing the National Farmers Union’s commitment to reach net zero by 2040?
This is hugely welcome. A legal commitment to net zero will help to preserve our planet while encouraging the kind of tech and innovation that we can export around the world. It is hugely welcome in Cheltenham, too.
I commend my hon. Friend for his well-supported Climate Change (Net Zero UK Carbon Account) Bill and for his fantastic speech in support of it, in which he urged us in this direction. It is a source of great pleasure to me that we can meet his ambitions.
I have referred to the hugely important contribution that young people have made in advocating the action we are taking, and they are joined by many other campaigners in this country and around the world. The substantial report of the Committee on Climate Change, which I hope the hon. Gentleman will have a chance to study in detail, makes a proposal that is not plucked out of the air but is evidenced and referenced. In adopting and legislating for this target, we are doing so on the best possible advice. That is the best way to proceed.
I enthusiastically welcome today’s net zero announcement, because this issue has an impact on us all, and especially on young people. I therefore particularly welcome the announcement of a youth steering group to advise the Government on this issue, and perhaps we could employ this model in other policy areas. When will we find out a little more about the role and purpose of this group?
The Secretary of State knows that the reason for our leadership on emissions is that we have relocated much of our manufacturing to China and elsewhere, and closed our coalmines. Is he aware of the predictions of Professor Yangyang Xu, published in Nature magazine, which simply show that because there is more methane production than originally projected and less sulphur, which has a cooling effect, we are expected now to reach the 1.5° threshold not by 2040 but by 2030? In the light of that, will the Secretary of State look again at the assumptions underlying the report on which he is predicating his 2050 target, with a view to bringing that forward? Will he listen to some of the pressure groups, such as Extinction Rebellion, which want firmer action, be it getting rid of fracking, or action on wave, solar or wind, and move forward more quickly, because there is a desperate emergency and this statement is simply too little, too late?
The hon. Gentleman is wrong in saying that the reduction in emissions comes simply from exporting our production; he does a disservice to the hundreds and thousands of men and women who work in our renewables industry and lead the world in the development of offshore wind. It is a source of great national pride and I hope he will join in that. The Committee on Climate Change is a serious and substantial body that has done an important piece of work. It was rightly established by his party when he was in government, and those on both sides of the House have respected its advice. The Committee references and is impelled by the latest climate science, which, as he says, requires a more urgent response than was previously committed to. That is exactly why it has provided this advice and exactly why we are legislating to implement it.
Cornwall was early in declaring a climate emergency, and it will be glad to hear today’s commitment, not least because of the opportunity to create well-paid, skilled jobs by doing the right thing. The Committee on Climate Change recommendations talk about a massive skilled jobs programme and we have seen the need for that today. We are talking about the roll-out of smart meters, which helps to address the climate change emergency; the need for storage, as we heard from my Cornish colleague; home efficiency improvements; and even the management of waste food. Those things all require new skills and existing skills that people do not have at the moment. Will the Secretary of State work with the Department for Education and, in particular, with the Treasury to make sure that further education colleges, which are well placed to deliver these skills, have the money and have it quickly?
I, too, welcome today’s announcement. However, the Liberal Democrats are setting out more ambitious targets to achieve net zero greenhouse gas emissions by 2045, together with clear interim targets to make sure that we do not kick the can down the road and avoid difficult decisions now. Does the Minister recognise that today’s announcement somewhat contradicts Government policies on, for example, fracking, which is a fossil fuel, and on withdrawal from the European Union, which undermines international co-operation?
No, I do not. I am disappointed that the hon. Lady seems to be speaking on behalf of the Liberal Democrats in withdrawing the support for the Climate Change Act 2008, which set up the committee to give advice to the Government. The committee has been clear in saying that the ambition of 2050 is the right one for the United Kingdom. If she reads the report, she will respect the evidence on which that is based. It is always possible—and in our exchanges we have said that the Act provides for this ability—to review that progress and for the committee to give further advice. I have said that in five years’ time we will go back to the committee to ask it for an assessment of how we are doing.
What are the Government doing to support bioenergy and carbon capture and storage technology to enable the energy estuary of the Humber to become the UK’s first net zero industrial cluster?
Last night, at the Renewable Energy Association dinner, its chair, Nina Skorupska, said that the Committee on Climate Change should be renamed the committee for climate emergency. With that in mind, this net carbon zero statement is going in the right direction. A practical step to help what the Secretary of State is talking about would be to build a 600 MW interconnector to the Hebrides, rather than a 450 MW one. That would give us 33% more capacity for only 5% extra cost, and the extra electricity it would produce would probably drop wholesale prices and even eradicate that. Given today’s statement, will he make sure that Ofgem sees the big picture and gives the 600 MW the green light? Ofgem is currently not fit for purpose in this regard, because if it keeps its blinkered formula, its policies will result not in 600 MW or 450 MW, but in net zero MW.
This morning, the all-party motor group, which I chair, met a wide range of senior representatives of UK automotive companies, and there was a real welcome for the announcement that the Government have committed to net zero by 2050. However, they also noted that there is so much more to do if we are going to get there. That has to include a step change in infrastructure investment, making sure that the rapid charging points are available in the quantities and places needed, and that they are interoperable, and ensuring that the grid can cope. They also noted that we have to manage the transition more effectively, which means ending the confusion in the Government’s signals about intermediate technologies, about the regulatory frameworks to be put in place and about the kinds of incentives that can help to change consumer behaviour. In that context, may I gently say to the Secretary of State that cutting back on the plug-in car grant does not necessarily help, in a market that is not yet mature?
The Secretary of State was correct to refer to the important role that the Clyde shipyards played in the first industrial revolution, but of course they will also have an important role to play in the next green industrial revolution if there is an appropriate industrial strategy. That is why I am dismayed that in respect of the offshore wind sector deal that the Government announced, they buckled to the lobbying by large energy companies and diluted the requirement for 60% of manufactured content to be made in the UK down to 60% of through-life content. As a result, EDF is sending the £2 billion contract for manufacturing a wind farm off the coast of Fife to Indonesia, instead of building it in the BiFab yards that lie 10 miles away on the coast of Fife and employ 1,000 people. Will the Secretary of State address this glaring inconsistency in the offshore wind sector strategy and ensure that we maximise British manufacturing of heavy engineered products in British renewable energy projects?
I warmly welcome the commitment to net zero emissions. Does the Secretary of State agree that to help to achieve that we need to do far more to encourage people out of their cars where possible and to make more journeys by cycling or walking? We know what works to achieve European levels of cycling; will the Secretary of State commit to looking into the evidence and meeting me and the all-party group on cycling to see what further can be done to achieve those targets?
My Lancashire constituents want to step up and play their role in meeting the climate emergency, including by choosing greener transport options. Will the Secretary of State look into opening disused rail lines, such as the one into Fleetwood, as part of the strategy? Does he recognise that fracking locks us into a reliance on fossil fuels for years to come? Will he review the Government’s support for fracking?
I will of course talk to my colleagues in the Department for Transport. As the hon. Lady said, we need to look into all the options to give people a choice of how to get about that is environmentally sustainable. On gas, whether derived onshore or offshore, the Committee on Climate Change has always been clear that in the transition to net zero there is a role for gas in all scenarios. In my view, if we have a domestic contribution to that, that helps with the resilience of our energy supplies.
The Secretary of State rightly referred in his statement to the historic opportunity before Parliament to make real progress in tackling climate change by achieving net zero carbon emissions. In order fully to realise that opportunity, will the Government reconsider existing policies—such as those relating to maximising the extraction of offshore oil and gas deposits—to ensure that they comply with the aspiration outlined this afternoon?
As I said to the hon. Member for Lancaster and Fleetwood (Cat Smith), the Committee on Climate Change, which advises not only the Government but the House and the country on this issue, recognises the need for a transition and that gas and oil will be required in that context. As we recognise the jobs and exports generated by gas and oil, it seems to me that we should do that as efficiently as we can and with the best deployment of technology that we possibly can.
As the Secretary of State knows, I am usually supportive of our bid to host COP 26, on which I led on a joint letter with the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) that was signed by more than 100 Members, but I am concerned that we are due to miss the fourth and fifth carbon budget targets. The explanatory notes that accompany the statutory instrument laid this morning say that the Government will leave headroom for emissions from international aviation and shipping. When will we adopt a Norwegian-style plan on aviation and shipping emissions that will eradicate those emissions and mean that we can meet our carbon budget targets?
We have followed the advice of the Committee on Climate Change and our plans for net zero cover the whole economy, including international aviation and shipping. We await the committee’s advice on how to legislate. One opportunity that our hosting the COP would bring forward is the ability to accelerate international agreements. I hope the hon. Gentleman would welcome that.
The hon. Gentleman is absolutely right that we should have the best arrangement. In fact, that inter-ministerial group does exist, and my hon. Friend the Minister for Energy and Clean Growth chaired its most recent meeting just last week. The hon. Gentleman should reflect on the creation of my Department, which brought together the responsibilities for business and industry with energy and climate change, because that is a recognition that if we want, as we must, to take action to achieve the targets, we must make sure that the economy is run and companies operate in a way that supports that action. It is a practical example of just the kind of thinking and acting that the hon. Gentleman advocates.
Full debate: Net Zero Emissions Target
Might I begin by expressing my support for the efforts of my hon. Friend the Member for Leeds West (Rachel Reeves) in bringing forward her Bill today to legislate for net zero emissions by 2050? To achieve that, supporting our automotive industry will be vital, but Ford had warned that leaving the EU would add hundreds of millions to its costs, and after the vote, it said that it was considering closing plants. This warning has come to pass. Ford is now saying that another 6,000 jobs could be at risk in the event of no deal, which is particularly concerning now that it looks likely that the next PM will actively pursue it. What direct support has the Secretary of State offered Ford to reverse its decision, and has he considered the impact of a no deal on manufacturing when deciding who to back as the next Prime Minister?
Full debate: Electric Vehicles
The President certainly seemed to think the NHS was on the table yesterday. So does the Trade Secretary, but who knows who speaks for the Government at the moment? The Prime Minister did nothing to allay concerns yesterday, so I hope she was more forceful in raising climate change with a President who initiated the US withdrawal from the Paris climate agreement, opened up record amounts of land for oil and gas drilling and called climate change a hoax. Can the right hon. Gentleman confirm whether yesterday the Prime Minister made any attempt to convince the President that climate change is in fact real?
Full debate: Engagements
The statistics that the right hon. Gentleman referred to relate to emissions cuts since 2010, when the UK benefited from policies put in place by the last Labour Government—policies that have since been dismantled. But how much authority do this Government actually have on this issue? Three current Cabinet Ministers have denied the scientific consensus on climate change, and several of those standing in the Tory leadership contest have close links with organisations and individuals promoting climate denial. It does not bode well. Figures released in April show that the UK is set to miss its own carbon budgets by an ever-widening margin. Would the right hon. Gentleman like to explain why the Government are off track in respect of meeting their own targets?
Full debate: Engagements
Let me be clear: the Labour party does not condone the reopening of any coal mine to be used for energy purposes. Once again, the right hon. Gentleman refers to climate emissions reductions that were implemented using Labour party policy—Labour policies that have since been dismantled. Not only are the Government failing to meet their targets, but last year actually saw the smallest drop in carbon emissions in the last six years: just 2%. At that rate it would take until the end of the century to reach net zero emissions. Just yesterday, the Financial Times reported that the Government are accused of trying to “fiddle its emissions figures”, ignoring their official advisers. So let me ask the right hon. Gentleman a simple policy question: the Labour party has committed to banning fracking. Will the Government ban fracking and allow new onshore wind in England—yes or no?
Full debate: Engagements
This is absolutely staggering. The Government promote fracking, which is backed by only 12% of the public, yet they effectively block onshore wind, which is backed by 79% of the public. New solar is down 94% and home insulation is down 98%. Parliament has declared a climate emergency, yet there is no evidence that this Government take it seriously. We need a green industrial revolution to tackle climate change. The Swansea tidal lagoon alone would have required 100,000 tonnes of steel, mainly from Port Talbot, but the Government refused to back it. Will the right hon. Gentleman tell us what the Government have actually done to support our steel industry since signing the steel charter?
Full debate: Engagements
The independent Committee on Climate Change has repeatedly criticised the Government’s approach to decarbonising our economy. I note that there was not a single word in the right hon. Gentleman’s response on what support the Government will provide for the steel industry, and people from Redcar to Scunthorpe know that his empty rhetoric will not solve their catastrophe. Climate change is an existential threat. To safeguard our future, we will need to mobilise all our resources, just like we did when we rebuilt Britain after the second world war. If we took the challenge seriously, we could create hundreds of thousands of jobs in low-carbon industries, reverse decades of decline in our de-industrialised areas and lead the world in renewable technologies, but the Government are letting us down. They have recklessly run the clock down on Brexit, and is it not the truth that their failure is now running down the clock on our planet?
Full debate: Engagements
On a point of order, Mr Speaker. Earlier today, the Minister for the Cabinet Office may have accidentally said, in response to a question about the UK’s carbon budgets, “We are not off track” to meeting those targets at all. The Government’s official adviser on climate change, the Committee on Climate Change, has reported that the UK is off track to meeting its fourth and fifth carbon budgets, and official statistics published by the Department for Business, Energy and Industrial Strategy have also shown that it is off track. It is therefore a matter of established fact that the UK is off track to meeting its targets. Can you advise me, Mr Speaker, on how we can correct the record?
Full debate: Points of Order
No doubt carbon credits are a useful way of managing carbon emissions, but Brexit or not we need to become carbon-zero in a very short period of time. I wonder whether the Government are actually taking that urgency seriously. What are the Government doing continuing to support the fracking industry, which is a fossil fuel industry? Surely all we do needs to go into renewable energy?
I agree with that. My hon. Friend gives me an opportunity to respond to what the SNP spokesman, the hon. Member for Kilmarnock and Loudoun (Alan Brown) referred to and I neglected to comment on. My hon. Friend is absolutely right that there is the opportunity for energy-intensive industries that are significant emitters to capture that carbon. We have a competition, which is being run at the moment, and sites such as Teesside have put in very impressive and attractive bids. I and my colleagues in Government want Britain not just to be one of the leading developers of the technology of CCUS, but to implement it to the advantage of our energy-intensive industries.
I welcome the Secretary of State’s statement. It will be particularly welcomed by my many constituents who work at the Scunthorpe works, which, as he highlighted, supplies most of the rail network with track, which of course would have to be imported were the Scunthorpe works to close. Does he agree that this highlights that there is a cost to tackling climate change? It is far better that we approach that in a realistic, well-balanced way, such as the Government propose, rather than giving way to unrealistic demands from other groups.
Full debate: British Steel: EU Emissions Trading Compliance
We also heard from my right hon. Friend the Member for Doncaster North (Edward Miliband), who was applauded right across the House for his groundbreaking work on climate change. He said that every political issue that we consider must deal with climate change. In that vein, I want to pay tribute to the many colleagues who have not had the opportunity to speak today but who have been leading the charge on climate change, not least my hon. Friends the Members for Workington (Sue Hayman), for Brent North (Barry Gardiner) and for Southampton, Test (Dr Whitehead), who are sitting behind me today.
Secondly, climate change and the environment are not luxury concerns. It is working people who benefit the most when our public spaces flourish—urban or rural—and it is the poorest, both at home and internationally, who will be hit first and worst by the climate emergency. As we have heard today, it is working people who have the most to gain from a green industrial revolution that could transform our economy, creating hundreds of thousands of good jobs. We on this side of the House estimate that retrofitting the UK’s housing stock could create 160,000 jobs right across the UK, and that offshore wind could create 120,000 jobs by 2030, largely in coastal towns and regions that have struggled for decades.
Thirdly, our climate and our environment are in deep trouble. We do not have to look far to see that climate change is already a disaster for many across the world, from the cyclone that recently struck Mozambique to the protracted droughts in east Africa. If we continue on our current path, we face unimaginable losses for every Member’s constituency and for people and communities across the world. But here’s the thing: it does not have to be that way. We are running out of time, but there is still time, so let us use it well and start today by declaring a climate emergency.
What does it mean to declare an emergency? The motion sets out some guidance. It means reducing our greenhouse gas emissions as rapidly as possible and down to net zero before 2050, with short-term targets for the green energy transition and sustainable modes of transport. It means properly funding environmental protection domestically and legislating to reduce waste, moving towards a zero-waste economy. It means capturing the green jobs of the future and mitigating the impact of transitioning to a low-carbon economy on workers and regions. It means bringing wildlife and biodiversity back to levels that I am too young to remember but by which, as we know from David Attenborough, nobody is too young or too old to be captivated. Perhaps more than anything, declaring an emergency means that we will devote the time and resources to the problem that are commensurate with its scale. We can start that today by declaring a climate and environment emergency. The motion gives us a basis on which to act, and that is why I commend it to the House.
Full debate: Environment and Climate Change
In 2016, the UK’s carbon emissions fell at 6% a year, and in 2017, emissions fell at 3% a year, but in 2018, the figure was 2%—just a 2% fall—so at a time when action should be ramping up to tackle the climate emergency, can the Minister explain why the UK’s progress is slowing down?
Full debate: Oral Answers to Questions
I ask this in good faith and in all seriousness: does the Minister accept that the UK’s stalling progress is related to banning—in effect—onshore wind, reducing almost all support for solar power, scrapping the zero-carbon homes standard and selling off the Green Investment Bank? Will he be honest about the challenge, and work with Labour and Members right across this House on turning this around, so that we can truly tackle climate change and properly seize the economic opportunities within the green economy?
Full debate: Oral Answers to Questions
My hon. Friend is quite right. Again, the provisions adopted by the Climate Change Act 2008 were not required by the European Union. They were a set of decisions that were taken by this House, and that has been our record. The proposals that I have set out allow us to continue to do that, while making sure that the House is not only properly informed but required to make an explicit determination that, if there are new policies that are adopted and directives that are proposed, they are debated and considered in this House. That seems to me to be a good mechanism to ensure that we are always aware of what is being done in the European Union after we have left it.
Full debate: Leaving the EU: Protection for Workers
The UK has a world-class automotive sector and could be a world leader in electric vehicles, at the cutting edge of electric vehicle technology and research, but the Government have failed to invest to support the transition. I will give just one example. The Treasury pledged last year to support the switch to zero-emission vehicles with a £400 million fund for charging infrastructure, giving manufacturers the certainty to invest in production. Half of the money was to come from the taxpayer, with the rest matched by the private sector. However, one year on, the money that it was promised would be raised from the private sector has not been secured and no money from the fund has been invested.
Full debate: Honda in Swindon
That was straight and very to the point. The Secretary of State may have pointed to the falling cost of renewable energy, but he cannot disown his Government’s policies, unfortunately, which are plunging that industry from crisis to crisis. New deployment of solar has fallen 90% since 2016. New onshore wind deployment has fallen 80%, so that certainly does not sound like the end of the energy trilemma. With people getting nervous about how we are going to keep the lights on, will he describe in detail where exactly he expects the UK to source low-carbon electricity from by the end of the 2020s?
Full debate: Oral Answers to Questions
On clean diesel, I have said to Members from all parties that the country will undergo a transition to fully electric and zero-emission vehicles, and a new-generation clean diesel is a perfectly reasonable choice for people to make, especially those who, for example, use it regularly for long journeys. People should be clear about that.
My hon. Friend is absolutely right; as the House knows, there has been a slowdown in the market for new diesels. People are hanging on to their existing ones and values have fallen in the second-hand market. It is something that is reflected across the whole of Europe, and indeed in many other parts of the world. We need to make sure that we are clear that the next generation of diesel is a perfectly reasonable choice for people, and that we accelerate the deployment and the uptake of electric and zero-emission vehicles. That has been our determination in the past two and a half years, and that is recognised by the industry right across the world.
Full debate: Nissan in Sunderland
I want to talk briefly about environmental and climate protections. We know that non-regression clauses in relation to environmental protections would not be subject to the arbitration procedures set out in articles 170 to 181. Instead, standards would be enforced at the domestic level and through far weaker state-to-state procedures that are rarely effective in international treaties. The political declaration, meanwhile, contains only hortatory statements regarding climate, energy and the environment that have no legal effect. How can we trust this Government to maintain domestic standards when they have taken quite an active role, shall we say, in opposing EU progress on energy and climate change?
I thank my hon. Friend for his intervention; he makes an important point. The Government’s track record has been rather deficient, to say the least. For example, in 2017 this Government lobbied for EU renewable energy and energy efficiency targets to be reduced, made non-binding or even scrapped. Is it now this Government’s position after Brexit to adopt and maintain to 2030 at least the same ambition as that in the revised renewable energy directive and energy efficiency directive? If so, how can we trust the Government to honour that position?
Full debate: European Union (Withdrawal) Act
I turn to energy efficiency. A well-insulated home saves households money, makes homes naturally warmer and more pleasant places to live, and cuts energy use, helping to tackle climate change. At least £1 for every £4 spent heating UK homes is wasted due to poor insulation. Improving the energy efficiency of the UK’s housing stock, which is among the oldest and least efficient in Europe, really should be a no-brainer, so how are we currently faring?
According to the Committee on Climate Change, insulation rates have fallen by 90% since 2012. The energy company obligation—known as ECO—which is funded by a levy on bills, is the only remaining domestic energy efficiency delivery mechanism in England. It has also been cut from £1.2 billion a year when it was first introduced in 2013 to £720 million per annum in its second phase, and has been reduced still further to £640 million—effectively a 50% cut. It is therefore no surprise that the Government are off track to meet their targets.
Full debate: Fuel Poverty
I thank the Minister for advance sight of her statement today. I am pleased to be responding to the news that she has written to the Committee on Climate Change asking for advice on setting a date for achieving net zero greenhouse gas emissions. However, despite any good intentions she may have had in writing that letter, she must understand that Government policy is demonstrably incompatible with that goal.
First, investment in renewable energy has undergone what the Environmental Audit Committee refers to as a “dramatic and worrying collapse”—falling 56% in 2017. Changes in planning rules and Government funding since 2015 have seen the rate of deployment of new solar fall 95%, and planning applications for new onshore wind fall 94%. The Government now plan to remove support to small-scale renewables, which according to the Solar Trade Association, risks the almost total collapse of the industry. How is this compatible with net zero emissions?
Secondly, this Government and the last have sadly overseen a collapse in investment in energy efficiency, with Energy UK pointing to a 53% drop in investment between 2012 and 2015, an 80% reduction in improvement measures, and further declines projected to 2020. Again, how is this compatible with net zero emissions?
Thirdly, this Government have pursued a policy of fracking at any cost, overruling local planning decisions and reportedly even considering relaxing earthquake regulations. Shale gas can only be described as low carbon if it replaces coal in the energy mix, but coal is already on its way out of the UK’s energy mix, before fracking has even started. If shale gas were to come online now, it would be displacing genuinely low carbon energy, not coal. James Hansen, the former NASA scientist known as the father of climate science last week slammed this Government’s decision to pursue fracking as “aping” Donald Trump. What a terrible irony it is that the first day of Green Great Britain Week is the day that fracking is due to commence in Preston. How is this compatible with net zero emissions?
Fourthly, last week the Government announced that they are cutting the electric vehicle plug-in grant by £1,000—a move described by industry as “astounding”. Fifthly, according to the Committee on Climate Change, the Government are off course to meet existing carbon budgets, which are set with a view to achieving an 80% reduction in emissions by 2050. So I ask again: how is this compatible with meeting the more ambitious target of net zero emissions?
I believe that the answer to that question is contained within today’s letter to the Committee on Climate Change, in which the Minister describes carbon budgets 3 to 5, which run up to 2032, as “out of scope” of the referral. By effectively ruling out any additional action on climate change in the next 14 years, the Government seem to be asking the committee for advice but only in so far as they do not actually have to act on it. Unlike Labour’s plan to dramatically decarbonise energy supply and insulate 4 million homes as part of a green jobs revolution, the Government do not expect actually to implement any of the real measures needed to avert dangerous climate change. Sadly, without more robust and radical action from the Minister, she must realise that her Government’s vision for a green Great Britain is just a great green washout.
I think the fundamental mistake that the hon. Lady and many other Labour Members make is that they confuse Government spending with results. We have seen a dramatic fall in the price of renewable energy, of solar panels and of energy efficiency measures, so thankfully we no longer need to make enormous subsidies with other people’s money in order to deploy the energy. In terms of the results, as I mentioned, we are now at 32% of renewables, and we had our first coal-free day. I know that the leader of her party, as long ago as 2015, was calling for reopening all the deep-cast coalmines in the north-east and has said that he will rule out nuclear.
The hon. Lady talked about shale gas. I find it amazing that so many Labour Front Benchers will take the shilling of the GMB union but will not take its advice on shale gas extraction. They are claiming that this does not create jobs; the union fundamentally disagrees with them. They claim that it is not consistent with a low carbon future. The Committee on Climate Change has said that it is entirely consistent with our measures. When they go home tonight to cook their tea, I ask them to think about what fuel they are going to use, because we know that 70% of the country relies on gas for cooking and heating. We have a choice. On current projections, we are going to move from importing about half our gas to importing almost 75% of it, even with usage falling, as it needs to going forward. I know that some Labour Members would love us to be spending more hard currency with Russia, but I am quite keen to soberly— [ Interruption. ] Perhaps if Labour Front Benchers would all like to stop mansplaining, I could actually make some progress. I would like to answer the hon. Lady’s questions without a whole load of chuntering as if I am the referee at Chelsea.
As I was saying, the challenge on shale is that we do use gas. We want to rapidly decarbonise gas as we will continue to do. This is entirely consistent with all our low carbon pathways. It is even consistent with the hon. Lady’s proposals for the renewable economy, because she will need 40% of that to come from some sort of thermal generation. It seems crazy to me not to soberly explore the science of exploiting a resource beneath our feet that could create thousands of jobs rather than importing it from an extremely unstable nation. [ Interruption. ] Well, do not listen to me—go and listen to your union paymasters.
as the right hon. Member for Islington North (Jeremy Corbyn) made such a virtue of doing in his leadership campaign. We will get on with delivering policies that are realistic and fully costed and deliver the most ambitious decarbonisation of the economy, and we will leave the Labour party to play fantasy economics with its energy policies.
I pay tribute to my right hon. Friend’s long-standing work in campaigning and his ministerial work on the whole question of environmental sustainability. He is quite right that we are well ahead of our EU counterparts in decarbonising our economy. I was at the European Council on Monday, where we debated our emissions reduction targets. The Road to Zero is a very ambitious programme of emissions reductions, and we were among a handful of nations pushing for maximum ambition on reducing CO 2 emissions from cars and vans. We should continue to do that regardless of the technical rearrangements of our relationship with the EU, because when it comes to carbon, we are so much stronger working together.
It is surely obvious to all that we need to rebalance the economy urgently towards sustainable energy, sustainable business and sustainable manufacturing. However, what is the point in the UK Government launching a Green GB and NI Week at the same time as they are prioritising nuclear over renewables and dragging their heels on climate emissions reductions? Actions speak louder than words. I think the Minister recognises that we are at a privileged moment in time, with most of the world crying out for change.
Will the Minister match the Scottish Government’s world-leading statutory climate targets of reductions of 56%, 66% and 78% by 2020, 2030 and 2040, as well as 90% by 2050? Will she tell the Government to stop dragging their feet and to use reserved powers, including subsidies and technology support, that would allow Scotland to achieve net zero emissions sooner? Will she tell the Government to deliver their green obligations by scrapping plans for new and expensive nuclear power plants and instead bring back renewable subsidies, support the oil and gas sector by aiding the low carbon transition, give Peterhead the £1 billion for a new carbon capture facility that it had expected and restore long-term certainty of policy to the whole sector?
The hon. Gentleman makes some very good points. I am pleased to pay tribute to the work of his Committee, and indeed to the work of the Scottish Government and the other devolved Administrations in contributing to our world-leading climate targets. We do of course score our CO 2 emissions on a UK-wide basis.
The Minister’s green words are great, but back on planet Earth the reality is somewhat different. What happened to the huge leap forward that Britain had with green power until recently? Does she think the present huge decline in renewables investment is anything to do with the Government? There is the ban on onshore wind, for example. How does she square that mad policy with the climate change challenge?
As an electric car driver myself, I would point out to the Minister that the growth of electric cars means it is more imperative to invest in charging infrastructure, because it is pretty difficult at the moment to find a charging point that is not already being used. However, on the broader point, we are now talking about trying to move from a target of 80% in 2050 to net zero. Can she name one new thing she is doing, rather than going backwards, that will help us to meet that goal?
The hon. Lady is right, however. One of the key things that came out of the IPCC report, and will come forward, is that we may overshoot. What are we going to do about that? What are the technologies that will help us get back under 2°? We are one of the first Governments in the world to invest substantially in greenhouse gas removal technologies. I am not saying that that is the answer—I would not want to go there, and I would rather change—but if we have to pull CO 2 out of the air or somehow get it out of the ecosystem, we will be one of the first Governments who are able to do that. That is something— [ Interruption. ] Well, I am afraid we need to consider it, and that is what the IPCC and the CCC have advised us to do.
First, I commend my right hon. Friend on the advances she is making in asking when and how we might reach a net zero carbon economy, because that laudable endeavour fits entirely with the Government’s moves to leave the environment in a better place than we found it in. However, does she agree that reducing our greenhouse emissions need not come at the expense of growing the economy, because we can invest in new technologies to achieve that? That would cut our energy bills, reduce emissions and increase efficiency. All those things were covered by my recent ten-minute rule Bill, and my right hon. Friend was extremely supportive of it.
Does my right hon. Friend agree that reducing greenhouse gases need not come at the expense of growing the economy? Will she continue to make available funds for innovative energy sources such as geothermal energy from the projects currently being explored in Clackmannanshire in my constituency?
When we talk about climate change, it can seem like an incredibly powerful threat that we are all completely powerless to deal with, but that is simply not true. We have already cut our emissions by 30-odd per cent. since 1990. In fact, the last time emissions were as low as this in the UK, Queen Victoria was on the throne. We can do it and we can lead the world in doing it, but there is no complacency. We are not doing this to give ourselves a birthday cake and a pat on the back. We are doing this because we think there is much more opportunity, and we can push the world to go further by showing that it is possible.
It is great to see a Kettering green GB champion on our Benches. My hon. Friend is right: so many of our communities are living this process. It is not some scary existential threat. People are living it. They experience renewable energy—or not—and do not see it as a huge imposition. So many of our towns and communities are committing to these sorts of sustainable initiatives. That is part of Green GB Week, so that people can come together, learn from one another and, frankly, get a pat on the back for some of the things that they have done.
The Minister rightly mentioned the need to use innovation and new technology in rising to this challenge, yet her statement had not one mention of carbon capture and storage, which is considered vital to reach the Paris treaty targets. Norway is pushing ahead. Germany is planning this along the Rhine. Does she regret the £1 billion betrayal of Peterhead and will she commit to restoring CCS funding levels to 2015 levels?
The hon. Gentleman and I have had exchanges on this. He knows that we have committed £100 million from our current budget to invest in carbon capture, usage and storage technology. That money is being spent. We are working with several industrial clusters to work out how we decarbonise the power and get industry to put its emissions in there. Frankly, I was not the Minister at the time of the project’s cancellation, but we were going to spend £1 billion on decarbonising coal, which we no longer want in our mix at all, and we had not thought at all about how we would get industries in this area to put their emissions in. Since the pause of that competition, we have spent more than £300 million investigating our aquifers. They are the best in the world—offshore—and we will continue to explore how to do this in the most cost-effective way.
I applaud my right hon. Friend’s initiative. First, with her announcement today, the Government are one of the first around the world to respond to the IPCC report, and secondly, she has taken the initiative of Green GB Week to provide more focus on this country’s achievements—it is leading the world—in developing clean growth. I encourage her to get her officials to come up with a rather more snappy means of demonstrating the metrics used to show that we can grow the economy and renewable energy at the same time. If I might give her a pointer in that regard, will she please work more closely with Ofgem to encourage pre-accreditation for anaerobic digestion plants, which will shortly run out of time to get installed to take advantage of the feed-in tariffs?
We benefit from a lot of experience in this House and the hon. Lady has more than many in this area. Even though I could not get her to congratulate us, I am always very willing to listen to her thoughts on this issue. Two things are important. The clean growth strategy was the first cross-Government document we have ever published that set out in detail how we plan to decarbonise all sections of the economy. And, it was very lovely that the Prime Minister asked me to attend Cabinet, albeit at what I call “the kids’ end of the table”—it demonstrated that this is fundamentally part of the Government’s plan going forward. So yes, we are up for the challenge. We do not underestimate it and it will be a cross-Government initiative, as the hon. Lady can see and as we are delivering.
Whether solar, some other form of renewable energy or just improving energy efficiency, all were set out in the clean growth strategy. One of our aims is to get new homes built off the gas grid—there are 42,000 homes off the grid in my constituency—not to have fossil fuel heating from 2025. We intend to do that not only because we want to reduce emissions but because it will boost routes to market for some of our world-leading renewable heat technology.
I thank the Minister for her statement. She is a great champion of growing our economy while also protecting our environment. Last week, I was proud to go to Downing Street with the hon. Member for Wakefield (Mary Creagh) to present a letter from 130 colleagues from across the House setting out our shared commitment to supporting the Government in the event that they decided to pursue net zero. Does the Minister recognise the strength of feeling across the Chamber that we must do everything in our power to limit the rise in global warming to 1.5° C and that net zero is the key to this?
The Minister has written to the UK Committee on Climate Change, but that committee has written to her twice saying she is failing to meet our Paris commitments, which it is important that we meet. When I was on Leeds City Council, we put 1,000 solar roofs on council housing. We cannot do that now without the subsidies. On cars, again she has cut the subsidies. Why not consider changes to subsidies for new hydrogen technologies for both heating and transport?
The hon. Gentleman, in his former role as a councillor—and, indeed, Leeds City Council—did amazing work on one of the really big challenges, which is decarbonising heat. As he will know, some of those heat projects are proceeding thanks to Government investment. In fact, a project up in the north-west involving Keele University is going live, blending hydrogen into the heat network. We are innovating, and are doing so in a way that could completely change the methods through which we heat our homes over the next 20 years. However, this is not just about subsidy. The Government cannot do this all on their own, while putting the burden on taxpayers. We must leverage in private industry, and we must work out the most cost-effective way to deliver our aim so that we can keep bills down.
As my right hon. Friend will know, along with the Minister for Disabled People, Health and Work, my hon. Friend the Member for Truro and Falmouth (Sarah Newton), I have been a champion of the potential of geothermal energy in Cornwall. Although progress has been frustrating, we are very excited to be on the verge of seeing test drilling. Does my right hon. Friend agree that geothermal energy has the potential to play a significant role in the delivery of clean renewable energy in this country, and will she back its development in Cornwall?
I think that that is an incredibly important challenge. How amazing it is that the economic opportunity created so many years ago by the removal of all the various minerals there can now give us the potential to decarbonise our heat and to generate more jobs in my hon. Friend’s beautiful constituency.
Full debate: Green GB Week and Clean Growth
The Government’s shambolic policy on the solar and onshore wind sectors in recent years has meant that significant economic growth and decarbonisation opportunities have been lost. For example, we have seen dramatic feed-in tariff subsidy cuts; business and VAT rate hikes; and obstruction to clean power auctions. Sadly, as we have heard today, there are reports that the Swansea Bay tidal lagoon, the world’s first tidal lagoon, which would create thousands of jobs and local supply chains and use 100,000 tonnes of majority British steel, is potentially on the Secretary of State’s hit list. Will the Minister buck that trend today and confirm when the decision will be made, and outline what support she will give to solar and onshore wind?
Full debate: Economic Growth and Emissions
The Secretary of State’s statement on Wylfa Newydd is good news for my constituency, good news for north Wales, and good news for the UK nuclear industry and wider industry. If we are serious about tackling climate change, we need to be serious about new nuclear and get on with it as quickly as possible. My constituents will welcome this announcement, but they will want assurances that the skills agenda is going ahead and that local people can have the quality jobs that previous generations in my constituency have had for over 40 years. I invite the Secretary of State to come to talk to training providers, local government and the Welsh Government so we can get this agenda up and running.
I am surprised the hon. Gentleman mentions that, because one of the problems Germany has faced is that the return to coal has increased the pressure on its greenhouse gas emissions. I checked before I came into the Chamber, and coal was contributing just 1% of our current electricity generation, compared with 20.5% from nuclear. If we are serious about meeting our climate change ambitions, we have to take decisions that are consistent with that.
Full debate: Nuclear Power
That review had two main findings: first, that the cost of energy is significantly higher than it needs to be to meet the Government’s objectives and, in particular, to be consistent with the Climate Change Act 2008 and to ensure security of supply; and, secondly, that energy policy, regulation and market design are not fit for the purposes of the emerging low-carbon energy market as it undergoes profound technical change. Dieter published his report in late October. It echoed our calls for a change in ownership of the electricity network; unsurprisingly, we heard little from the Government.
Full debate: Domestic Gas and Electricity (Tariff Cap) Bill
That is simply laughable in the context of their track record on supporting green energy, and especially so given that last week’s Budget essentially closed down support for much low-carbon development in the UK. There will be no new low-carbon electricity levies until 2025, with no alternative funding outlined. Nor was there any support for, or indeed any mention of, specific renewable projects such as the Swansea tidal lagoon. There is a huge contradiction between the Government’s rhetoric on clean growth and the reality of their policies.
Full debate: Budget Resolutions
I strongly welcome the industrial strategy. Does my right hon. Friend not agree that a key part of it is supporting further education and skills, including through institutes of technology? An important example is the multimillion pound investment in the new Harlow College skills academy at Stansted airport, which was visited today by my wonderful hon. Friend the Minister for Climate Change and Industry.
I will indeed. The Minister for Climate Change and Industry—there is no more energetic person than the Minister of State—met the steel sector today to pursue those discussions. The sector features in the White Paper published today and the hon. Gentleman knows that I agree with him on its importance. I am full of enthusiasm for that being brought to a conclusion.
Full debate: Industrial Strategy
I hope that the hon. Gentleman will be able to stay for the statement by my hon. Friend the Minister for Climate Change and Industry.
Full debate: Retail Energy
This should be a wake-up call. The UK Government’s nuclear obsession will do nothing to lower energy bills and will only burden the next generation with unprecedented economic, environmental and security instability and risk. The Tories should do the responsible thing and scrap their nuclear obsession in favour of investment and renewable energy in carbon-capture technology. Scottish Renewables recently reported that one in six renewable energy jobs in Scotland will be under threat in the next year. Will the Government acknowledge that their energy policies need to be reviewed to allow the Scottish Government to continue with their competent and ambitious vision of a prosperous green future? Finally, when can we expect full details of the timetable of the investigation into this matter?
Full debate: Magnox: Early Contract Terminations
I will gently move the hon. Lady back to energy efficiency. She is making a very compelling public health case for the need to tackle energy efficiency and fuel poverty. Does she share my frustration that the national infrastructure assessment is a golden opportunity with respect to putting energy efficiency front and centre in the Government’s low carbon green strategy and industrial strategy? They should do that, because it could help to sort out not only the health crisis, but the climate crisis.
Economic analysis by the well-regarded Frontier Economics suggests that the net present value of investing in insulating homes could be as valuable as the HS2 project. Cambridge Econometrics found that for each pound spent on insulating homes £1.12 is generated for the Treasury and £3 for the economy in GDP, and 42 pence is saved by the NHS. It is clear that investing in insulation has a positive effect not just for those in fuel poverty or for climate change, but for the wider economy. Unfortunately, however, the fact is that if we compare major insulation measures being installed today to 10 years ago under the previous Labour Government, there has been a huge 88% fall. Put another way, the long-term solution to fuel poverty gets 12% of the support that it originally received.
Full debate: Fuel Poverty
This morning I had a further conversation with my French counterpart the industry Minister, and my hon. Friend the Minister for Climate Change and Industry spoke again to his German counterpart to agree a consistent approach. I speak frequently with Len McCluskey, the general secretary of the largest trade union at Vauxhall, and I have kept, and will keep, colleagues with particular constituency interests up to date at all times.
Full debate: Opel/Vauxhall: Sale to PSA Group
The Bill fails to address the long-term pressures facing the UK’s energy supply industry and fails to deliver on our climate change targets, as agreed just a few months ago by the right hon. Member for Hastings and Rye (Amber Rudd), now the Home Secretary. The renewable energy sector, as we heard in the previous debate, has been consistently undermined by this Government, and the Bill before us today does nothing to provide the stability or support that this industry craves.
Earlier today, we debated a specific amendment on the VAT treatment of energy-saving materials in the hope that the Government would make it clear in statute that the proposed solar tax hike would not go ahead. Unfortunately, the Government would not agree to our new clause and as such the insecurity for this industry continues. Furthermore, the Bill still makes sweeping changes to the climate change levy, which could seriously undermine its efficacy. In Committee of the whole House, we tabled an amendment calling for a review of the impact of the climate change levy on carbon emissions, but we were unfortunately defeated in the Lobbies. The change will go ahead with no assessment of whether the somewhat altered levy will do its job. That, too, is just not good enough from the British Government.
Over the weekend, we saw China and the United States ratify the Paris climate deal. Together they are responsible for 40% of the world’s carbon emissions, so that marks a huge step forward in climate change responsibility. Our Government, however, have not ratified the treaty, and have rowed back on almost all their green commitments since the election. I will not list them again, as it is an extensive list, but the Bill does nothing to tackle the issue of climate change head on, and, we believe, weakens measures that are already in place.
Full debate: Finance Bill
I hope the Minister is listening, because we should be more ambitious about what can be achieved through policy. We want to see resilient, high-productivity businesses in an economy that is fairer for everyone. My hon. Friend the shadow Chancellor has previously expressed his ambition to at least double the size of the co-operative economy, which would be a £40 billion boost to the economy, but too much existing Government policy works against that. Cuts to renewable energy, and community generation in particular, make little economic sense. The damage done to genuine community-owned energy schemes through the withdrawals of incentives to investment, such as the seed enterprise investment scheme, has been significant.
Full debate: Co-operatives
I want to repeat on the record how opposed we were to the last raft of changes to VED made in the previous Finance Bill. These changes put a stop to the link between the level of carbon dioxide emissions and the rate of vehicle excise duty. There is now simply a flat rate after the first year, with a surcharge on cars that cost more than £40,000. We simply do not see the Government’s justification for removing incentives for lower-polluting cars. I would be grateful if the Minister clarified that. Aside from that issue, I am happy for this clause to stand part of the Bill.
Clause 138 makes changes to vehicle excise duty rates for cars, vans and motorcycles, with effect from 1 April 2016. For cars first registered prior to 1 March 2001, vehicle excise duty is based on the car’s engine size. The rates of duty for those cars and vans before 1 March 2001 increase by £5 only as a result of this clause. For cars first registered on or after 1 March 2001, vehicle excise duty is based on the car’s carbon dioxide emissions. There are currently 13 CO 2 bands. One rate is payable in the first year, and a separate, standard rate is payable in all subsequent years. For about 98% of those cars, the payment will be no more than £5 extra in 2016-17. That means that a motorist already owning a popular family Ford Focus will pay only £5 more.
First-year rates influence the purchasing choices of drivers buying brand-new cars. They act as a signal at the point of purchase that people can save money by choosing a cleaner car. In response to what the hon. Lady said about the 2017 reforms, it is not true that we have removed the incentives on CO 2. First-year rates have an extra effect: the so-called “sticker price” effect. There is also the zero rate for zero-emission cars.
Full debate: Finance Bill (Sixth sitting)
The Government announced some concessions, which included finally starting negotiations on the issue at European level. Nevertheless, the matter was largely ignored during the Prime Minister’s EU renegotiation, as the Government focused on issues such as defending the interests of the City of London. The issue was finally addressed only when Ministers were staring into the face of defeat over the ultra-shambles Budget. I know that the Minister will appreciate my saying that the Chancellor became the first in history to accept not one but two amendments to his own Budget resolution: one was in my name, on green energy VAT, and the other was, of course, in the name of my hon. Friend the Member for Dewsbury. Do not worry, I have more to say on green energy VAT later in Committee.
Full debate: Finance Bill (Fifth sitting)
As we have heard, the proposed Swansea bay tidal lagoon has clear environmental benefits, as it harnesses a sustainable source of energy to generate a significant amount of carbon-free electricity over a long lifespan. Tidal Lagoon Power, the company that will construct, own and operate the plant, has suggested that it will generate enough electricity to power 90% of homes in Swansea bay over a 120-year lifespan. Indeed, as the generation of power relies only on the tide, it is an entirely predictable source of renewable energy.
Tidal power is an easily replicable new industry. The UK could be a world leader in exporting the technology and manufacturing across the globe. I am sure that the Minister will agree that at a time when the balance of payments leaves much to be desired, the development of a new exportable industry would be highly beneficial to the country. In short, investment in renewable energy technologies is a long-term win for everyone, saving jobs, money and the environment.
Full debate: Swansea Tidal Lagoon
Finally, it would be helpful if the Minister touched on the environmental implications of air passenger duty generally. I have had a number of queries regarding that, particularly from my own constituents. Aviation is, of course, covered by the EU emissions trading scheme, and we anticipate that the fifth carbon budget will address the sector later this year, but it would be helpful if he were to outline how the proposals under consideration will interact with our obligation to decarbonise, especially if we are moving towards little or no APD, and how a devolved settlement will work alongside nationally set targets.
Full debate: Air Passenger Duty: Regional Airports