The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)

Our priorities are to decarbonise at the lowest price while always ensuring our energy security. That is why we have taken steps to end new subsidies for onshore wind. It was interesting, after my right hon. Friend’s announcement, to hear companies almost immediately seeking a subsidy-free contract for difference, which suggests that our analysis that this industry can stand on its own two feet was correct. We are calling it a market-stabilising CfD and we are listening carefully to industry on how it can be delivered.

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The Secretary of State for Energy and Climate Change (Amber Rudd)

As the Prime Minister made clear yesterday, the UK owes a great debt to the coal industry for all it has done to keep the lights on and keep our economy moving. Both I and officials in my Department regularly discuss a range of energy and climate change issues with our international counterparts, and it is clear from these conversations that the UK remains respected internationally for our ability to reduce emissions while at the same time growing our economy.

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Mike Wood (Conservative)

Will my right hon. Friend work with industry bodies such as the Sustainable Energy Association to bring forward ideas for a comprehensive strategy to increase uptake of energy efficiency measures?

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Amber Rudd

My hon. Friend is absolutely right to raise this. We will engage with the industry in order to reform these grants—the renewable heat incentive and ECO, the energy company obligation. The Sustainable Energy Association is one of the stakeholders we will work with to make sure that our reformed system delivers even better value for the people who are really in need.

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Cat Smith (Labour)

11. What discussions she has had with her Cabinet colleagues on limiting climate change to prevent greater future expenditure on adaptation. ( 903595 )

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The Secretary of State for Energy and Climate Change (Amber Rudd)

I am clear that the only way to address climate change effectively is through global action, building on the global agreement that the UK was instrumental in achieving in Paris in December. All countries need to act if we are to bring down emissions and minimise adaptation costs in the future. I want the UK to continue to set an example by addressing the 1.2% of global emissions that we are responsible for, while at the same time continuing to grow our economy.

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Amber Rudd

I am aware of the impact of flooding in the hon. Lady’s constituency, and I remember her speaking during the debate that we had on the subject with the Department for Environment, Food and Rural Affairs. The best way to address dangerous climate change and its potential impact on extreme weather events is to get a global deal, which is why we have been so focused on trying to do so. I reassure her that I will work closely with my colleagues in DEFRA to ensure that we have a national adaptation programme in place.

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Amber Rudd

I agree with the hon. Gentleman that addressing buildings is an incredibly important part of trying to meet the renewable energy targets that we have set for 2020 through the EU. I am working closely with the Department for Communities and Local Government to see what action we can take to address that, but buildings are an important part of the mix.

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Barry Gardiner (Labour)

Surely one of the most important things that the Secretary of State can do to limit climate change is publicly to state how she will meet the shortfall in our legally binding renewable targets for 2020. She knows that beyond 2017, her Department projects a 25% shortfall across the heating, electricity and transport sectors. The Eurostat data released yesterday show the UK to be missing its target by the widest margin of any European country. What assessment has she made of the potential fines the UK may face as a result of that failure?

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Oliver Colvile

I thank my right hon. Friend for that answer. Offshore wind is an important part of renewable energy policy but so, for that matter, is marine energy. What progress have the Government made on the marine energy park to be situated down in the south-west?

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Lisa Nandy (Labour)

A spokesman added that the Government were conducting a series of studies of utility companies to examine whether action was needed. The investigation was backed by the Prime Minister, the then Energy and Climate Change Secretary and the former Chief Secretary to the Treasury. It was reported that Ministers would be watching the energy companies “like a hawk”. What happened to that study, and what action was taken?

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Angela Rayner (Labour)

Following on from the question from the hon. Member for Cheltenham (Alex Chalk), the proposed hike in VAT would raise the typical cost of a 4 kW residential solar PV system by nearly £1,000, even though industry experts advise us to retain the lower tax rate for solar under the recent ECJ judgment. The Government are keeping the lower rate for heat pumps, biomass boilers and combined heat and power units. The same should surely apply to solar PV thermal; otherwise we will have the perverse situation in which electricity generated from fossil fuels is taxed at 5% VAT, while homeowners have to pay 20% VAT for their own renewable energy. Can the Minister not persuade the Chancellor to reverse this tax hike and, if she cannot, will she make commensurate increases?

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Patrick Grady (Glasgow North) (SNP)

T2. As Valentine’s day approaches, will the Secretary of State support the climate coalition “Show the love” campaign and encourage all Members to wear the green hearts that we have been sent, which symbolise how so much of what we love, wherever we are in the world, is affected by climate change? ( 903610 )

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Diana Johnson (Labour)

T9. The Select Committee has found that scrapping the Government’s support for carbon capture and storage technology puts at risk the UK’s international commitments on tackling climate change and makes it more expensive to do this. We have also lost out on about £250 million-worth of EU investment. Can the Minister just explain to me how this makes sense? ( 903617 )

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Andrea Leadsom

Our view is that CCS has a potentially important role to play in long-term decarbonisation. We continue to invest in the development of CCS; we are investing more than £130 million to develop the technology through innovation support. My Department is looking at what our new policy is to develop this important technology.

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Amber Rudd

The hon. Gentleman might be aware that the Paris agreement called for temperature increases to be limited to a maximum of 2°, yet the intended nationally determined contributions—the voluntary contributions from each country—only reached 2.7°, so that comes as no surprise. Everyone who signed up to the agreement—let us celebrate the fact that nearly 200 countries did so—knows that there is more work to do. It is not the end of the journey; it is just the start.

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