22:15 Graham Stringer (Labour)

I was drawn to the opinion of the European Environment Agency scientific committee on greenhouse gas accounting that was published on 15 September 2011, a copy of which I have submitted to the Minister’s officials. It knocks on the head the assumption that biomass combustion is always inherently carbon neutral, and points to the “double counting” that causes that error. The report explains that the assumption

On that basis, it urges that European Union regulations and policy targets should be revised to allow bioenergy use only from additional biomass that reduces net greenhouse gas emissions without displacing other necessities such as the production of food and fibre. It advises that accounting standards should fully reflect all changes in the amount of carbon stored by ecosystem, and that energy production from biomass should be based on by-products, wastes and residues rather than on stem wood that would otherwise continue happily to grow as forest biomass.

I think that biomass deserves a place in the renewable energy mix of the future, but we need to get the rules of the game straight in advance, so that society is not left picking up the pieces of an impetuous policy.

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22:26 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

The coalition is building an economy that counts and cuts our carbon emissions. We are making our energy secure in a volatile world and helping to create more green jobs and a more sustainable economy. As my right hon. Friend the Prime Minister has said, we are determined to make this coalition the greenest Government ever. That pledge has many strands, but an increased use of sustainable biomass is clearly an important element of it. Sustainable biomass is extremely versatile; its efficient use will play a key role in helping to meet the many challenges of decarbonising our economy. This is true not just for energy, but right across the thriving bioeconomy we want to develop.

The hon. Gentleman referred to Peel Energy’s proposed new plant at Trafford, Greater Manchester. I am, of course, unable to comment specifically on that particular project, but the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), discussed similar issues in Westminster Hall in 2010.

I think that we can all agree that biomass, and its use for energy, raises complicated issues, and we have heard several such examples from the hon. Member for Blackley and Broughton. That is why the Department of Energy and Climate Change will publish a cross-government UK bioenergy strategy next month, which will recognise the complexity and importance of these issues. Key for the strategy has been understanding the value of the alternative uses of biomass in decarbonising the economy, in terms of both cost-effectiveness and carbon-effectiveness. There are very real questions as to what is the best of use of the world’s limited biomass feedstocks and, indeed, how far bioenergy saves carbon compared with fossil fuels.

We also want to understand how the growth of bioenergy has an impact on other uses, which relates to the point made by the hon. Member for Hyndburn (Graham Jones). We have considered the availability and price of feedstocks, including for traditional uses of wood, and we have also worked closely with the Committee on Climate Change, which published its own review in December. We are also working closely with stakeholders. I hope that hon. Members will see that this is an extensive piece of work, but the strategy is not yet finished. It is clear that the use of wood and energy crops for energy production can lead to positive carbon balances, and that is true even when accounting for life-cycle analysis. Our evidence shows that wood products are valuable as carbon stores, and they have an important role to play alongside bioenergy in decarbonising the economy. Clearly, we need to take a holistic view of biomass uses in setting bioenergy policy, and that is what we will do in taking policy decisions, for example on the renewables obligation banding review. We will also do that when looking at support for renewable heat technologies and renewable transport. We will also ensure that our carbon objectives marry up with our wider energy ones.

However, it is crucial that we take action on biomass sustainability. We will therefore ensure that bioenergy does not result in the loss of important habitat or release more carbon than it saves. Biomass can be a very low-carbon energy source, but that requires it to be grown, harvested, processed and transported sustainably. That is why we have introduced sustainability criteria into the renewables obligation, which means that only sustainable biomass will be supported in the future. Generators will report on their performance against a target of 60% greenhouse gas emissions savings compared with fossil fuel use and they will also have to report on land use criteria. We have set an ambitious but, we believe, achievable target that will ensure that investment in new bioenergy comes forward to deliver our energy and climate goals. From April 2013 we intend that the payment of renewable obligation certificates will be linked to these standards. Biomass that does not meet these standards will not qualify for financial support, and we expect to introduce similar standards into the renewable heat incentive.

Using wood and biomass feedstock for renewable energy is a necessary step towards our goals, but it is not the only use of this resource. Wood products and other non-energy uses of biomass are also important in decarbonising and strengthening our economy. The Government are committed to ensuring a strong future for the wood products industry. We recognise that the growth of bioenergy must not be at the expense of the other sectors that serve similar aims, and we are committed to a close and continuing dialogue with biomass-using industries to ensure we understand their needs appropriately.

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