14:45 Andrew Bowie (Conservative)

I know that uncertainty is beginning to build in the Scottish cluster. The firms that are investing are asking, “Well, what’s going on? Are the Government in favour of it or not? Are they supporting it or not? Should we put in our investment early, late or not at all? If we do put it in, how can we be certain that it will come to fruition in the timescale that we thought it would when we first committed to invest in that area?” It has very real consequences for investment in CCS, hydrogen and various other things.

With the leave of the Committee, I will not push the new clauses to Divisions, having—belatedly—read the room today. I am starting to catch on that they might be defeated. I want to make the point behind new clause 47: I want to see that certainty for the category 2 clusters and greater support going forward, because we only want to see the Acorn CCS cluster delivered. I beg to ask leave to withdraw the motion.

I hope I have reassured right hon. and hon. Members that the Department is already carefully considering all these factors before coming to a decision on the trial. Importantly, we will be closely examining the evidence and outcomes of the gas transporters’ engagement with local authorities and consumers. Undertaking a formal consultation, however, would duplicate the work that the Department and the gas transporters are already doing and could delay important milestones on the way to these trials and net zero. Given that detailed explanation, I hope the hon. Member for Kilmarnock and Loudoun might feel willing to withdraw the motion.

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15:15 Andrew Bowie (Conservative)

The “Powering Up Britain” plan set an ambitious pathway for the UK to move to clean, cheap power and lead the world in moving to net zero by 2050. The UK has decarbonised more than any other major economy since 1990, but oil and gas still supply about three quarters of the UK’s overall energy use today.

Our aim is to accelerate the reduction in oil and gas use. We recognise, however, that they remain essential to modern life, and will do so for many years to come, not just for energy, but to manufacture materials such as chemicals, plastics and steel. We want to avoid an increased reliance on foreign oil and gas imports as we move to net zero. Surely that is brought home by Putin’s illegal invasion of Ukraine, which reminded us all of the importance of a secure and resilient energy system. We are determined to power Britain from Britain.

We are a net importer of oil and gas and a rapidly declining producer, so new oil and gas development and licences will simply reduce the fall in the UK supply; they do not increase it above existing levels and will not increase emissions above legally binding carbon budgets. As someone who was born, brought up, schooled and went to university in, and now represents, the north-east of Scotland, I can tell the hon. Member for Southampton, Test that the North sea basin is in decline. Even with continued exploration and development, UK oil and gas production is expected to decline by 7% a year. Contrary to what the hon. Gentleman said, that decline is faster than the average global decline needed to align with the Intergovernmental Panel on Climate Change 1.5° pathways.

We already lead the world, therefore, and are already moving beyond what we need to do to reach our commitments regarding the climate goals that we have signed up to. By preventing the issuing of exploration and production licences, however, Labour’s policy—this new clause—would cause a faster decline in UK oil and gas production. That would lead to increased liquid natural gas imports, which are less secure and more carbon intensive, and provide no tax revenue or employment benefit to the United Kingdom.

New clause 56 relates to perhaps a rather more immediately clear position. If we are to move towards a sustainable low-carbon economy in this country—I am sure that the Minister is absolutely at one with me in wishing that that would come about—we must ensure that we have available to us all of the sources of renewable energy that we can get hold of to provide the amount of renewable generation necessary for clean energy provision for our country. There is a divergence between the Opposition and the Government on the dates by which this would be achieved. The Government would like to see our energy supply system effectively decarbonised by 2035; Labour thinks that should be 2030, and that the resources and arrangements should be put in place to allow that to happen.

One particular criticism that we have of the Government’s 2035 target is that, while they have some good ideas on how to make that happen in the abstract, they are very lacking in how to go about the process of quickly reaching a low-carbon energy economy in the not-too-distant future. Indeed, a Climate Change Committee report will come out very shortly that may reflect the Government’s lack of preparedness to do what they say they will about low carbon energy for the future.

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15:45 Andrew Bowie (Conservative)

There should be no doubt of the value that the Government place on a strong renewable power sector, which includes onshore wind. Over recent years, we have committed to delivering deep decarbonisation of the grid by implementing new legislation, stimulating growth through ambitious policy pledges, and bolstering growth through the provision of financial support. I very much doubt it, but I hope that the hon. Gentleman is reassured by the actions that we are taking, which will facilitate the growth of onshore wind while ensuring, importantly, that local communities continue to have a say on their area.

Barrier No. 2 is the community consent clause that the Government introduced in 2015, which creates an absurd position. I have said in the House that the planning system should be scrapped because it inhibits development in a way that is totally unnecessary, or prohibits it in a way that is damaging to our economy, and in this case to our future renewable energy security. The idea that one person can object to national infrastructure of that importance is frankly ridiculous.

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