The Secretary of State for Energy and Climate Change (Chris Huhne)

We are committed to achieving our 2020 renewable energy target, which is a European Union legislative goal. The coalition programme for government commits us to the establishment of a full feed-in-tariff, with the aim of securing a significant increase in investment in renewables while maintaining a banded renewables obligation and not changing the ground rules for existing investments. We are also strongly committed to action on renewable heat.

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Chris Huhne

I am glad that the right hon. Gentleman mentioned the last Chancellor because, of course, one of the legacies we are having to deal with in government is the fact that the last Government, of which the right hon. Gentleman was a member, identified £44 billion of expenditure cuts without a single expenditure cut specified in that total. The reality is that we have had to clear up the legacy of his Government. The reality is exactly as the former Chief Secretary to the Treasury, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), said: there is no money left. We are therefore having to make some extremely tough choices, but on carbon capture and storage I can assure the right hon. Member for Doncaster North (Edward Miliband) that the coalition agreement between the two Government parties says very clearly that there will be four CCS projects. That is an extremely important part of our low-carbon future and, of course, it is crucial in ensuring that we have a competitive advantage in these areas, because the UK has a lead in CCS technology, as we have seen from our university researchers.

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Charles Hendry

The 2050 document looked at a range of scenarios and energy mixes. However, let me reassure the hon. Lady that the Economic Secretary to the Treasury and I were in Aberdeen on Monday to talk to the industry—I think that that was the first such meeting involving both Treasury and Energy and Climate Change Ministers—to identify the long-term investment issues that are critical for the sector. It is absolutely in the national interest to develop the best possible resource return from our assets in the North sea.

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Duncan Hames (Chippenham) (LD)

3. What outcomes his Department is seeking to achieve at the Cancun conference on the UN framework convention on climate change in December 2010. ( 15495 )

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The Minister of State, Department of Energy and Climate Change (Gregory Barker)

The new coalition Government are absolutely committed to achieving an ambitious global deal to cut emissions sufficiently to keep the rise in global temperatures below 2°C and also to providing support to developing countries in adapting to the inevitable consequences of climate change. However, although we are not raising expectations of a legally binding treaty being achieved at Cancun, we want to see substantive progress at COP 16.

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Duncan Hames

I thank the Minister for that comprehensive response, on which I hope we have a debate in the House soon. Does he accept that climate finance is critical to reaching an effective agreement? We need the UN advisory group on climate finance, on which the Secretary of State sits, to provide not only a menu of options for the future, but concrete recommendations that can be agreed now.

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Mark Reckless (Rochester and Strood) (Con)

I welcome the review of the four clean coal demonstrator sites, particularly the focus on retro-fitting. Will the Government give proper and full consideration to the proposal for carbon capture and storage put forward by Kingsnorth, in my constituency? Will it be possible to allow that to go ahead with the fitting of CCS to only one of the four turbines, rather than the two previously suggested, to bring things down to the level of gas?

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Gregory Barker

I thank my hon. Friend for his interest in this vital technology. As my right hon. Friend the Secretary of State said, we are absolutely committed to driving forward CCS. I can inform him that it is one of the two schemes that are in that particular competition.

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Joan Ruddock (Lewisham, Deptford) (Lab)

The Secretary of State this morning said that he was strongly committed to renewable heat, but last week the independent Committee on Climate Change wrote to him to say that uncertainty about the renewable heat incentive means that “projects are not progressing”. Yesterday, in evidence to the Select Committee, he said that he had simply forgotten the renewable heat incentive when drawing up the coalition agreement. Does the Minister not realise that certainty about the renewable heat incentive is essential in meeting the need for the creation of jobs and investment in industry and, indeed, is crucial in reducing the deficit?

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The Secretary of State for Energy and Climate Change (Chris Huhne)

In the Budget, Her Majesty’s Treasury and Her Majesty’s Revenue and Customs announced that the Government will publish proposals this autumn to reform the climate change levy to provide more certainty and support to the carbon price. Subject to consultation, the Government will bring forward relevant legislation in the Finance Bill 2011.

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Dr Alan Whitehead (Southampton, Test) (Lab)

When the right hon. Gentleman has discussed the matter of a carbon floor with the Treasury, has he raised the possible intervention contingency that might be necessary for a UK carbon floor? If he has, have they directed him to talk to the EU about common border-based carbon taxes?

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Mr Wayne David (Caerphilly) (Lab)

How much onshore wind generation does the Minister calculate is needed for the United Kingdom to meet its 2020 renewable energy target?

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Barry Gardiner (Labour)

8. What representations he plans to make at the October 2010 Tianjin climate change conference for amendment of the UN proposals governing emissions from land use, land use change and forestry to ensure that the managed forest emissions of developed countries are properly accounted for. ( 15501 )

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The Minister of State, Department of Energy and Climate Change (Gregory Barker)

At the United Nations framework convention on climate change intersessional in Tianjin in October, although I will not be present, my officials will continue to push for accounting rules for robust forest management that maximise incentives for action while ensuring strong environmental integrity.

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The Minister of State, Department of Energy and Climate Change (Gregory Barker)

The coalition Government are committed to providing the transparency, longevity and certainty needed for business to invest in the transition to a low-carbon economy. Specific programmes to support these objectives include the green deal for businesses, our proposals to establish a green investment bank, and a commitment to provide more certainty in the carbon price through reform of the climate change levy.

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Peter Aldous (Waveney) (Con)

14. What steps he is taking to increase the level of private sector investment in offshore renewable energy. ( 15508 )

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Mr Iain Wright (Hartlepool) (Lab)

In the summer, companies from Hartlepool and Teesside joined to form Chain Reaction, a renewable energy supply chain cluster. This is a marvellous opportunity to win business, promote new technologies and ensure that the engineering and industrial base of our heartlands in the north-east have a brilliant future.

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The Minister of State, Department of Energy and Climate Change (Charles Hendry)

Many local authorities are keen to take forward renewable energy projects. New regulations introduced on 18 August mean that local authorities can now sell electricity and can also benefit from renewable incentives such as feed-in tariffs and the renewables obligation. This new provision gives them the freedom to do that, enabling them to play their part in reducing emissions and meeting national renewable energy targets while saving money on their energy bills.

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The Secretary of State for Energy and Climate Change (Chris Huhne)

My Department has responsibility for managing our energy liabilities, securing our energy supply, improving our energy efficiency, leading UK action on climate change, and moving to a low-carbon economy.

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Chris Huhne

I was with my ministerial colleague with responsibility for climate change policy, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), at a meeting only yesterday, along with colleagues from other Departments that are directly interested in the green investment bank, to establish the scope for it, identify possible sources of funding for the capital base and ensure that we are making real progress, which I think we are.

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Chris Huhne

My hon. Friend is absolutely right to point to the increasing dangers of flash flooding in areas where, in some cases, there can actually be floods at the top of hills. Around the world over the past year there have been mudslides in China, floods in Pakistan and forest fires in Russia, and there is no doubt among the hard-nosed businesses that insure against risks that they have been attributable to climate change, which is a wake-up call. I am afraid that floods are a departmental matter for my colleague the Secretary of State for Environment, Food and Rural Affairs, but I am sure that she will take my hon. Friend’s points into account. I know that she is very aware of the dangers of flooding and the importance of flood defence.

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Duncan Hames (Chippenham) (LD)

T9. I am sure that, like me, the Secretary of State will have welcomed the introduction of green energy certification, but he will also know the central role of utility broker websites in consumer decisions. Will he join me in urging those broker sites to incorporate green energy certification in the information that they provide to consumers? ( 15527 )

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Chris Huhne

I am very happy to deal with any specific cases that my hon. Friend raises. I ask him to write to me, please, and I shall ensure that officials advise and that we come back to him. As a ministerial team, one of the things that we are determined to do is try to ensure that we have a framework, so that when we make an offer to provide an incentive for renewable energy, investors can rely on it. We are determined to avoid some of the criticism that has been made of our EU partners, who have changed the arrangements with retrospective effect.

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