Tim Farron is the Liberal Democrat MP for Westmorland and Lonsdale.
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I want to say a few words about how ROCs fit in with the nation’s energy security and about the extent to which they sometimes have perverse incentives. Drax power station in Yorkshire enjoyed just over 9 million renewables obligation certificates last year, at a value of £548 million. The material burned at that site includes biomass that has been imported into the UK, which is often wood pellets, mostly from America and Canada. Drax has previously admitted that some of the wood is from primary or old-growth forests—ancient forests of incalculable value in terms of biodiversity and beauty that would be vital in the fight against climate change if they were not felled. The new contract, I am pleased to say, states that 100% of those pellets must be sustainably sourced, which is something. But it is not organic waste, and there is still something not very sustainable about wood imported from across the oceans and then burned. We want to ensure that we invest in renewable power, so that 90% of the UK’s electricity is generated from renewables by the end of this decade. To do that, we will need to call in all our available resources; we do not want a situation where we are meeting our targets by having renewables in name only.
Members have talked about energy security and the importance of getting to net zero, which is vital. In the last few days—hopefully it is longer than that—we have been waking up to our need to protect our national security on a military footing. Yesterday, in Treasury questions, I raised the issue of our failure to step up to the mark when it comes to food security. Only 55% of Britain’s food is produced in Britain; that is a deep threat to the United Kingdom’s food security, and we need to take action quickly to tackle that by undoing the basic payments cut and scrapping the family farm tax.
We also need to look at energy security. It troubles me that some of those who claim to be very patriotic seem to pour cold water on and be sceptical about the environmental imperative. Even if I cannot convince people of the reality of climate change, and of the need to produce renewable energy for that reason, if we care about our energy security, we should surely care about net zero, which is a way of achieving it. To put it bluntly, Vladimir Putin cannot turn off the wind, the waves or the sunshine in this country.
Does my hon. Friend recognise the fact that we have major issues with environmental tariffs being placed on renewable energy but not on the carbon fuel of mains gas? That is really hitting the renewable energy industry and the cost for consumers.
I completely agree. We are talking about incentives that we give to renewable energy generators and providers, but we have an energy market that essentially advantages not just fossil fuels but ones that, to some degree, are in the hands of potentially hostile powers. That is ludicrous for both the environment and our security.
I was pleased to hear Members on all sides of the debate talk about the importance of farmers and farming to the battle against climate change and to clean energy generation. We would love to see a recognition that farmers are primarily food producers but that diversification of businesses and cross-subsidy within them is a good thing. It is right that farmers should be incentivised and encouraged to use their land—for example, by putting solar panels on buildings and land that is not good for food production—so long as that is not displacing good-quality agricultural land.
I also want to say a word about grid capacity. A huge barrier to progress with this scheme and those that follow is the fact that 75% of energy sector insiders find timely grid connections to be the biggest single obstacle to growing renewable energy in the UK. To give a sense of the size of the queue, there are £200 billion-worth of projects waiting to be connected to the national grid, and that delays all the benefit that would come with that. We would seek to expand the grid network and unlock those billions of pounds of renewable energy projects through a land and sea use framework that has statutory weight in the planning and infrastructure Bill. That would help us to balance the many competing demands on our land, and the competing priorities of security and self-sufficiency that I mentioned earlier.
Those priorities also include local communities’ experiences, which are important to understand when we are trying to tackle the climate imperative. It is no good building huge energy infrastructure near communities if there is no clear, tangible benefit to them. For example, customers in communities local to such projects should receive energy at a discounted rate. If we build renewable energy schemes on the River Kent or the River Crake, the people of Kendal, Staveley, Windermere and Coniston should benefit from them, at least to a degree. We also want to empower local authorities to develop local renewable electricity generation and storage strategies, because they are best placed to understand where the most and least appropriate sites to place them are.
I return to the issues raised by the hon. Member for South West Norfolk. It is important that ROCs have played a significant part in the transition from fossil fuels to new and renewable forms of energy. I recognise that they have had a big impact on his constituency by creating jobs and ensuring that farmers have additional sources of income. They are part of a range of actions—our arsenal—for tackling water pollution. We must not throw out the good things that ROCs have achieved when we move on to new schemes, which hopefully will make even more progress in our move towards a society run entirely on renewable energy.
Full debate: Renewables Obligation Certificate Scheme