Graham Stuart (Conservative)

The creation of a new Department for Energy Security and Net Zero in February was a clear statement of intent by this Prime Minister and this Government. Energy security and net zero are two sides of the same coin. Cheaper, cleaner, domestic sources of energy can break our link with reliance on imported fossil fuels, meet our long term energy needs, bring our bills down and keep them down.

“Powering Up Britain” announces the Government plans to diversify, decarbonise and domesticate energy production. The plans launched today will set out a blueprint for the future of energy in this country—boosting the UK’s energy security and energy independence—and help to achieve wholesale UK electricity prices that rank amongst the cheapest in Europe by 2035. It will underpin the UK’s clean energy transition, create new jobs and investment, protect consumers and businesses from volatile international energy markets, and drive us towards net zero by 2050. To meet this ambition, the Department for Energy Security and Net Zero will deliver:

Making a world-leading commitment to Carbon Capture, Usage and Storage : We are announcing the eight projects to progress to negotiations to form the first two CCUS clusters, in Wales, the North West and the East Coast of England, and that we will launch a process to enable expansion of those Track-1 clusters later this year. We are also launching the process for confirming the next clusters for deployment in Track-2. Our initial view is that Acorn and Viking are the leading contenders for Track-2 transport and storage systems.

Delivering a Hydrogen economy : Our 2030 hydrogen production ambition could generate enough clean electricity to power all of London for a year. We are announcing a suite of developments that get that ambition under way: confirming the first winning projects from the £240 million net zero hydrogen fund, naming the two CCUS-enabled hydrogen projects moving forward on the Track-1 clusters, publishing a shortlist of 20 projects we intend to enter due diligence with for the first electrolytic hydrogen allocation round (HAR1); and announcing our intention to open two further hydrogen funding rounds in 2023.

Accelerating deployment of renewables : Our goal is to develop up to 50GW of offshore wind by 2030 and to quintuple our solar power by 2035. We are opening the latest allocation round of the UK’s world leading contracts for difference (CfD) scheme to incentivise investment in renewable energy. UK levy funded support for renewable power since 2010 has totalled around £80 billion. The UK is a world leader in offshore wind and floating turbines represent the next frontier. We are launching £160 million of funding for pilots of the floating offshore wind manufacturing investment scheme to build UK port infrastructure to further reduce the cost of offshore wind.

Reducing household bills by increasing energy efficiency : We are confirming plans for our new energy company obligation scheme the Great British insulation scheme, extending help to a wider group of households. This will mean that around 300,000 of the country’s least energy efficient homes could save £300 to £400 each year as part of a £1 billion energy efficiency programme by March 2026. This will form part of our work to meet our 15% demand reduction target by 2030 which will not only help lower bills, but also support our net zero objectives.

Decarbonising transport : We are signalling our long-term plans for decarbonising road and air travel, continuing to provide strong market signals and incentives to drive supply chain development. We are publishing a final consultation on the zero emission vehicle mandate: requiring that from 2024 an increasing percentage of manufacturers’ new car and van sales are zero emission. We are announcing more than £350 million investment in electric vehicle charging infrastructure. We are also consulting on a long-term trajectory for sustainable aviation fuel uptake in the UK through a mandate to be introduced from 2025.

Mobilising private investment : Our updated 2023 green finance strategy will strengthen the UK’s position at the forefront of the growing global green finance market while supporting the investment needed to meet our targets. This includes maximising the impact of the UK’s public financing institutions, for example through the UK Infrastructure Bank with its £22 billion of financial capital. It also sets out our pathway for the UK to become the world’s first net zero aligned financial centre, equipping the market with the information and tools necessary to meet this goal.

Supporting industry through the transition : The Government are exploring a package of potential carbon leakage measures to mitigate this risk at all stages of the UK’s net zero transition. Doing so will give industry confidence to invest in the UK in the knowledge their decarbonisation efforts will not be undermined. We are also announcing a new phase of the industrial energy transformation fund to support the development and deployment of technologies that enable businesses with high energy use transition.

Building on our COP26 Presidency : The UK will continue to lead internationally, building on our COP26 presidency. Two of the documents we are publishing today—the 2030 strategic framework for international climate and nature action and the HMG international climate finance strategy—show what this leadership will look like in practice. We are delivering on our commitments—including our £11.6 billion contribution from 2021-22 to 2025-26 to the $100 billion per year global climate finance goal for developing countries. Our international work delivers on the UK’s domestic agenda—improving energy security by accelerating the energy transition, bringing down costs of new technologies for our own net zero plans, and opening up huge economic opportunities for trade and investment.

Powering Up Britain—The Net Zero Growth Plan : which builds upon the plan laid out in the net zero strategy, strengthening delivery by focusing on the action we can take to ensure the UK remains a leader in the net zero transition, and meets our carbon budgets. We are also responding to the independent review of net zero, led by my right hon. Friend Chris Skidmore, and partly or fully acting on 23 of his 25 recommendations for 2025, demonstrating that the Government are committed to delivering our decarbonisation targets in a pro-growth way.

The importance of this Department is clear. The aims of this Department are clear. We will deliver for amongst the cheapest wholesale electricity prices in Europe, powered primarily by renewables, domestically sourced, ensuring the security of our energy supply. We will maintain our position as a global leader on the net zero transition, ensuring we bring the world with us to meet this global challenge. Making Britain an energy secure, net zero nation, is one of the greatest opportunities of our time. This Department, and the plans we have outlined today, lay the roadmap to get us there.

I will place copies of “Powering Up Britain—The Energy Security Plan”, “Powering Up Britain—the Net Zero Growth Plan”, the 2023 green finance strategy, 2030 strategic framework and international climate finance strategy in the Libraries of both Houses.

Powering Up Britain–The Net Zero Growth Plan.

NZGP annex–Government response to Net Zero Review.

UK International Climate Finance Strategy.

Consultation on addressing carbon leakage risk to support decarbonisation.

Net Zero Research & Innovation Delivery Plan.

Cluster sequencing for Carbon Capture Usage and Storage (CCUS): Track-2 guidance.

Notice on gov.uk announcing the Net Zero Hydrogen Fund (NZHF) strands 1&2 competition winners.

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