16:55 Ed Miliband (Labour)

I have been very enthusiastic about the Secretary of State’s comments on carbon capture and the development that is essential in that area, but so far—I may be anticipating him—he has not said anything about onshore wind farms. He knows that the Under-Secretary of State for Energy and Climate Change, the hon. Member for Stafford (Mr. Kidney), who is sitting next to him on the Front Bench, and I have a boundary issue regarding several onshore wind farms, and there is deep opposition to them. Will the Secretary of State therefore be good enough to explain why Severn Trent, for example, is encouraged to develop onshore wind farms simply because it happens to own land—irrespective of either the amount of wind or the location of those projects? Will he get that policy right and stop promoting those ridiculous onshore farms?

I agree with my hon. Friend. The European supergrid is an exciting prospect that will obviously require co-operation in Europe—as well as sitting in the European Parliament with people who tend to believe that climate change is real and happening, rather than those who do not.

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17:29 Simon Hughes (North Southwark and Bermondsey) (LD)

I have spoken to my hon. Friend and I disagree with his analysis. That is not the official position of our party, just as there are members of the hon. Gentleman’s party who do not always adopt his official position—not least on issues connected with climate change and the Copenhagen conference, which we debated recently.

Obviously, we are always going to be interdependent with other countries around us and throughout the rest of the world. Our energy security is dependent on what happens in the rest of the world, and, sadly, there have been some disastrous actions in recent years. The invasion of Iraq has been harmful in this regard, as it had a knock-on effect on energy supplies; oil production in Iraq is now up, but not up to pre-war levels. There is also a lack of support, certainly from the Conservative party, for a European energy policy co-ordinated in such a way as to bring us all together. From what I have heard from the hon. Member for Tunbridge Wells, his party’s ideas are entirely inappropriate to meet the challenges of the next decades. The Liberal Democrats believe we need not only to be firm in dealing with emissions and climate change, because we must have a zero-emissions policy and a carbon neutral, or zero-carbon, future, but to have an integrated European future. If we are really going to achieve energy security, we not only have to produce as much of our own energy as possible, but we have to be enthusiastic leaders in the campaign for a European supergrid so that the energy produced throughout Europe—whether from solar power in the Mediterranean, hydroelectric power in Norway, tidal power in Scotland, or renewables throughout our country—can be shared to give us all collective security. The UK should aim to be more energy independent, but the best security for all of us is for the whole of Europe to become energy self-sufficient. That is what will give us the security we need. If the Conservative party were a bit more enthusiastic about Europe in this context, that might give consumers and industry a little more hope of the prospect of a secure future if—although I do not think this will happen—it were to form the Government in the near future.

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17:48 Malcolm Wicks (Croydon, North) (Lab)

When the world comes out of economic recession, the global demand for energy will resume its previous trajectory and, depending on our success in respect of climate change, the International Energy Agency estimates that global energy demand could increase between 20 and 40 per cent. by 2030.

We need diversity, and we need to ensure that in future, despite the trend towards import dependency, we secure as much of our energy indigenously, from within the British isles and our seas, as possible. That is a recipe for the Secretary of State’s policy on renewables. The development towards 15 per cent. of our energy coming from renewables by 2020 is as much about energy security as it is about climate change. The two go together.

There is a role for coal. To ignore coal would be a national security disaster—hence colleagues talk perfectly properly about the importance of carbon capture and storage. Nuclear must play a key role. It is important for climate change and for the nation’s security. In my report to the Prime Minister, to which the Secretary of State kindly referred, I go as far as to say that if by 2030 some 35 to 40 per cent. of our electricity was coming from nuclear, that would be sensible for the nation’s security as well as for global warming. There is far more that we can do to reduce energy demand, not just in housing but across the industrial process and in transport.

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17:56 Mr. John Gummer (Suffolk, Coastal) (Con)

How do we organise ourselves so that there is the diversity that we need, not only in terms of supply but as between the various forms of generation? I worry that we have had too much emphasis on process and far too little on outcomes. I am a great believer in renewable energy; I do not think anybody could criticise me on that score. Ultimately, however, we should be aiming to have the most cost-effective way of getting energy security and lowering our emissions. It may be better to provide more support for low-carbon generation than to put all our eggs in the basket of renewables. I say that not because I want fewer renewables but because we have to get there quickly. I would like to see a greater emphasis on outcomes than on process. For example, people in the British wind energy industry often argue on the basis of how wonderful wind is. I want to have the lowest carbon production of energy that we can have—I do not mind how we do it. Tomorrow the mix will be different from what it is today, but let us ensure that we do not miss the important issue, which is how we get the energy we need.

I say to the Government that they should move faster and accept that they are behindhand because of what has happened so far. I say to members of my own party that we have to use every mechanism possible. I say to the Liberal Democrats that it is not acceptable to go on with a theological position that is intolerable, intolerant and unacceptable—but they are, after all, Liberal Democrats, so we expect that from them. They will pay a big price for it at the next election, when people realise that the real opponents of combating climate change are Liberal Democrats.

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18:04 Mr. Elliot Morley (Scunthorpe) (Lab)

It is acceptable if gas supplies are maintained. In fact, the hon. Gentleman’s colleague, the hon. Member for North Southwark and Bermondsey gave a good, detailed analysis of the capacity and reserves, which I encourage the hon. Member for Birmingham, Yardley (John Hemming) to look at. That demonstrates that diversifying our supply and moving towards a low-carbon supply is good not only in relation to climate change but in addressing the potential problems of security of supply, fuel poverty, jobs and investment. Moving towards a low-carbon economy has a range of advantages.

Incidentally, I welcome the improvement in cold weather payments: my constituency will be receiving two weeks’ payments. I know that this is not the responsibility of my hon. Friend the Under-Secretary of State for Energy and Climate Change, but there are some eligibility anomalies, because some people on disability living allowance do not receive the payments. Those anomalies need to be addressed in discussions with other Departments.

We need to encourage more renewables. I welcome what has been done, including the recent announcement of the enormous expansion of offshore. That is of particular local interest in my constituency. The Humber is very well placed to be a centre for the construction and maintenance of offshore wind farms, and for CCS and biomass development. Jobs in engineering and support go with those things, not least in the construction of the steel that will go into the towers that will be built. Those developments will mean jobs and investment, much to the benefit of local people.

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18:28 Mark Hendrick (Labour)

We know that energy production is a major contributor to climate change. It is therefore impossible to discuss energy without referring to the impact on our environment, and ultimately on human welfare. As it is such a huge part of the climate change problem, energy must be at the heart of any solution.

To address the twin challenges of energy security and climate change, the UK must implement various measures. Energy must be used more efficiently and we should have a diverse supply of low and zero-carbon energy sources. It is reported that International Energy Agency analysis suggests that serious action on climate change requires a

It is important that we should act as part of a united Europe. It is in the interests of all major consumers to have a predictable and rules-based approach to managing energy security and climate change. It is only through co-ordinated action with our European neighbours that we can achieve that. For example, Russia is dependant on Europe as a consumer market, with 80 per cent. of its oil exports and 60 per cent. of its gas exports coming into the EU. It is essential that Europe acts collectively to maximise that consumer influence. Similarly, Europe will have the weight to negotiate with China, India, Japan and the USA only if it is a united Europe. Indeed, we recently saw action of that kind at Copenhagen.

Energy has been at the heart of the European Union since its conception, and it remains there today. In 2007, EU leaders recognised the twin challenges of climate change and energy security, and agreed to some laudable goals on energy usage, renewable energy and reducing emissions. Europe also co-operates on investments, technology transfer, mutual access to markets and predictability in commercial relations, particularly with countries such as Russia and others in northern Africa, the Gulf region and central Asia. The UK has played a central role in shaping that European action and is at the heart of international agreements. I join other hon. Members in welcoming the plans to develop a European supergrid.

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18:34 Mr. Mike Weir (Angus) (SNP)

Several speakers have talked about the oil and gas industry in the North sea, but I would caution Members about writing it off. The Energy and Climate Change Committee report shows that this industry still has a future, not only because there is a large amount of oil and gas in the North sea, but because there is an opportunity to use the skills developed in the North sea to move forward into renewables industries, particularly offshore wind and tidal and wave power, which could be the key to much of our energy for the future.

In Committee, I proposed an amendment to the Energy Bill to try to get the Government to look at gas combined capture and storage. The Government opposed and defeated it. I entirely understand the Government’s wish to concentrate on coal in the first instance, and I understand, as do all members of the Committee, the need to get CCS for coal, but I do not understand the refusal even to consider gas for the near future. Given the amount of gas that we still use in generation, it seems to me that it is going to be part of our energy mix for the foreseeable future, so we are going to have to decarbonise gas as well. Even at this late stage, I ask the Government to think again.

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18:39 Charles Hendry (Wealden) (Con)

My hon. Friend the Member for Croydon, South (Richard Ottaway) rightly focused on the investment that has been made and the vital contribution that liquefied natural gas terminals have made to our energy security. We heard a very thoughtful speech from the hon. Member for Preston (Mr. Hendrick), and the hon. Member for Angus (Mr. Weir) brought us back to gas when he talked about carbon capture and storage. We supported him in a Division on the issue in the Energy Bill Committee yesterday, and I am sorry that we could not persuade the Government to take a broader view on CCS and help Britain take a big step forward in that area.

The Secretary of State also referred to the recently published national policy statement, as if that will put right gas storage. We have done a quick check, and of the 675 pages of policy statement that the Energy and Climate Change Committee is going through, seven—1 per cent. of them—relate to gas storage. That is not quite the commitment that we are looking for.

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18:50 The Parliamentary Under-Secretary of State for Energy and Climate Change (Mr. David Kidney)

Our plans commit us to tackling climate change, ensuring security of energy supplies and keeping energy costs affordable. We want to ensure that all consumers have a fair deal. As everyone in the debate has said, the key to security of energy supply is diversity of energy supplies and sources. Last July’s transition plan outlines how nuclear power, alongside a sevenfold increase in renewables and investment in clean fossil fuels, will help us to achieve a low-carbon future and secure the UK’s energy supply.

Let us not forget the contribution that commercial businesses need to make to avert costs in energy and reduce their carbon emissions. We help with expert advice, interest-free loans and mechanisms such as climate change agreements and the emissions trading scheme. The right hon. Member for Suffolk, Coastal (Mr. Gummer), who is no longer in the Chamber—

Many hon. Members referred to the contribution of renewables, including my right hon. Friend the Member for Scunthorpe (Mr. Morley) and my hon. Friend the Member for Nottingham, South. Most of those who spoke in the debate gave a warm welcome to last week’s announcement of the round 3 offshore wind licences. This country was already the world leader in connected energy from offshore wind, and our performance in that area is now putting a considerable distance between ourselves and the rest of the world. But we do not rely solely on wind as a source of renewable energy, important though it is. There is also biomass, hydro, solar, heat pumps and many other sources that we promote. I noted the considerable enthusiasm around the Chamber for microgeneration, and a general welcome for feed-in tariffs, which at long last will begin in this country this April.

Many hon. Members mentioned the importance of carbon capture and storage. What is so crucial about CCS is that, as we invest more and more in renewables, which produce electricity for the national grid intermittently, we will need the back-up that reliable sources such as coal and gas can offer. The consequences of their carbon emissions are too great to contemplate, however, without a means of abating those emissions. That is where CCS will be so important, which is why it is good that our Government are now committed to four CCS demonstration projects on a commercial scale.

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