11:39 Claire Coutinho (Conservative)

It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. Throughout history, economies have succeeded when they can source enough cheap and secure energy. Now, as we face a new challenge—the global challenge of climate change—it is important that we source enough clean energy too. We have been a coal superpower and an oil superpower; if the Opposition are looking for a clean energy superpower, they should look no further. Britain today is a clean energy superpower, and our plans will enable us to go much further.

While the Labour party never ceases to talk this country down, I am proud that we are leading the world in this great energy challenge. In the first quarter of this year, 48% of our power came from renewables, up from just 7% in 2010. We are a world leader in offshore wind. We have increased our country’s renewable energy capacity fivefold since 2010—more than any other comparable Government. We are building new nuclear for the first time since Margaret Thatcher’s Government, and this brilliant innovation nation is leading the world in new technologies like small modular nuclear reactors and fusion energy. As recently as 2012, coal was generating 40% of UK electricity, but we are now on course to be one of the first major economies with power that is coal-free.

This work led by the Conservatives is dramatically reducing our greenhouse gas emissions. We have had the fastest reduction in emissions of any major economy, down almost 50% since 1990. Meanwhile France is down 23%, the US has not changed at all, and China has increased its emissions by 300%. And we are not stopping here. Which is the major economy with the most ambitious target to cut emissions by 2030? Is it the US, at 40%? Is it the EU, at 55%? No, it is the United Kingdom at 68%.

I am very conscious that the net zero targets are set for the United Kingdom, but unfortunately Northern Ireland cannot participate nor can we add our physical support to achieving those targets, because the contracts for difference scheme is not in place in Northern Ireland. I have spoken to our Ministers about this. Will the Secretary of State also look at this on behalf of all the constituents in Northern Ireland who want to contribute to achieving the net zero targets and be part of the contracts for difference scheme?

The UK was the first major economy to set a legally binding date for net zero. Our ambitions for 2030 are ahead of those of our peers and we have the plans in place to meet them. In fact, we have met every single one of our stretching targets to reduce carbon emissions, thanks in no small part to our clean energy success. Labour seems to have conveniently forgotten about the shameful state of our renewables sector when it left office. Just 7% of our power came from renewables in 2010; today, thanks to the actions of the Conservatives, that figure stands at near 50%. Never forget that it was the right hon. Member for Doncaster North (Edward Miliband) who described the idea of the UK getting to 40% renewables as “pie in the sky”.

The Bill we are bringing forward will unlock billions of pounds in tax, which will go towards helping with the programmes I have just talked about—for example, the cost of living payments we are putting in place. It will also unlock billions of pounds of investment, which will go towards a greener transition, and I am sure the hon. Lady will agree that having more renewable energy in the future will contribute to lower bills for her constituents.

We are also funding eight groundbreaking projects through our £1 billion net zero innovation portfolio to help us harvest the power of the sun from space. Space-based solar could provide clean energy day and night in all weathers and send it wirelessly to the Earth. Madam Deputy Speaker, I think you would agree that that is a superpower in itself.

As the Government continue to consider our long-term energy security of the future, it is only right that we support our British oil and gas communities. Even the Climate Change Committee acknowledges that oil and gas will be part of our energy mix when we reach net zero in 2050. So if we will need it, it is common sense that we produce as much of our own of it here.

With our ambitions on net zero and for our energy security, it is critical that we make the most of our own home-grown advantages, but Labour and the SNP’s policy means jobs abroad, investment lost and energy security sabotaged. You do not have to take my word for it, Madam Deputy Speaker—the unions are sounding the alarm. It has been said that Labour “does not… understand energy”, is self-harming and “naive”, and that its policies would leave our oil and gas communities decimated, turning our oil and gas workers into the “coalminers of our generation”. Those are not my words but those of the GMB and Unite. We want to keep jobs and manufacturing here, but Labour has not understood that we needs natural gas supplies. Those are the words of industry. The important truth is that we know we need to transition to clean energy, but it is the same people, communities and expertise that will unlock the green transition. The skills of those working on oil and gas rigs today are the same skills that we will need for the offshore wind jobs of tomorrow.

My hon. Friend makes an important point. We are lucky to have the skills, expertise and equipment in this country, which are the same skills that we need for a future in renewable energy. It is vital that we protect them and keep those skills here. To unnecessarily cut off those workers’ livelihoods in this country would wreck our clean energy ambitions. We remain resolutely committed to our ambitious net zero targets. More renewable energy; a nuclear revival; exciting new technologies such as hydrogen, carbon capture and fusion; and, where we need oil and gas, jobs for British workers—that is our vision for the future.

A moment ago the Secretary of State quoted the Climate Change Committee, which also said that expanding fossil fuel production is not in line with net zero. By the Secretary of State’s own admission on Monday, not a single Bill in the King’s Speech will help families struggling with energy bills. How can the Government justify turbocharging new oil and gas, when that does nothing for the cost of living crisis and blows a hole in our climate ambitions?

I am afraid the hon. Lady is quite mistaken. The Climate Change Committee’s own data shows that when we reach net zero in 2050, oil and gas will account for about 25% of our energy mix. That is why it is important to ensure that if we need it, it comes from here.

Energy transitions do not happen very often and now we are on the brink of the most important one of all to reverse centuries of global warming and reach net zero and secure energy resilience by powering Britain from Britain. It is only the Conservatives who have the plans to protect this country’s energy security, to deliver the most ambitious 2030 emission cuts of any major economy, to promote jobs and investment in the UK, and to help this country stand tall on the global stage. We will do that all without forcing families to choose between protecting their family finances and protecting the planet.

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12:02 Ed Miliband (Labour)

Does the right hon. Gentleman acknowledge that I said it would also help fund renewable energy? Does he disagree with the view that a future with renewable energy would help to bring bills down?

The right hon. Gentleman made a very good point earlier about the difference between the percentage of renewables for electricity and the percentage of renewables for energy overall, including heat and transport. Does he acknowledge that the United Kingdom is currently 75% dependent on oil and gas, and does he agree with the members of the Climate Change Committee, who have stated that themselves, and who have predicted that by 2050, when we get to net zero, the proportion will still be about 20%?

I think the Climate Change Committee is actually saying that its most ambitious scenario, which we should be aiming for, is for us to cut the use of gas by 90%. We are going to carry on using North sea oil and gas, but the question for the hon. Gentleman, and for the whole House, is this: do we choose, for the future, to carry on drilling every last drop? That is the Government’s policy, in contravention of all the scientific advice, which is that we will end up in a 3° world—needing billions of pounds of taxpayer subsidy to bring about that investment through persuasion, and diverting investment from the private sector. Personally, I do not think that that is the right choice.

Here is the thing, the Bill is not motivated by millions of people lying awake at night, worrying about the cost of living crisis; it is motivated by a Prime Minister lying awake at night, worrying about the Conservative party crisis. The interesting thing is that this Bill was planned well before the right hon. Member for East Surrey (Claire Coutinho) became Energy Secretary. It is the last desperate throw of the dice by what we might call the No. 10 galaxy brains, to use climate change as what they call a “wedge issue.” They say this to the newspapers all the time. Series 1 of this new strategy was aired in September, when the party of Churchill and Thatcher became the peddlers of wacky conspiracy theories they found on the internet: abolishing the mythical seven bins; ending the imaginary threat of compulsory car sharing; saying no to invented conspiracy theories on 15-minute cities; and fighting the fictional meat tax. And now we have a sequel. No longer a few throw-away conspiracy theories, this is now the central strategy of their legislative programme.

Members should not take my word for it. It is what the Prime Minister’s advisers brief to the papers day after day. One paper I read on Monday reported that the Prime Minister wants to “weaponise climate change” as a wedge issue. Where the British people see an energy crisis forcing up their bills, the Government see a wedge issue. Where the British people ask how they can have liveable towns and cities with good transport, the Government see a wedge issue. Where the British people worry about the effect of the climate crisis on their kids and grandkids, the Government see a wedge issue. The point is that the Government cannot really deny it, because they know this is what they are saying every day. “We think there is a big opportunity for the Conservative party to try to create division on climate change.” That is why the Prime Minister uses words like “eco-zealots.” It is all very transparent. They are locked in the boot of a strategy. Whether they agree with it or not, that is what is happening.

It is not just a retreat from the consensus; it is a retreat from reality. The reality is that there is a global race, with countries seeking to go further and faster to create the jobs of the future. No wonder business is horrified. Just last Monday, Amanda Blanc, the chief executive of Aviva, warned about the Government’s commitment to unlimited oil and gas drilling. She said that our climate goals as a country are “under threat”, which

The Government try to claim that this is somehow consistent with climate leadership. I mean, come off it!

Seven hundred British climate scientists oppose the changes, and so do the International Energy Agency and the Climate Change Committee, which my hon. Friend the Member for Warrington North (Charlotte Nichols) quoted:

“Expansion of fossil fuel production is not in line with Net Zero.”

The Government’s own net zero tsar, the right hon. Member for Kingswood (Chris Skidmore), who is in his place, also opposes them. They appointed him to advise them on climate and energy. They said how brilliant he is, and I agree—sorry to ruin his career even further. He is a very intelligent guy. [ Interruption. ] He is denying it. He has great ideas, and what did he say?

“There is no such thing as a new net zero oilfield.”

Those are not my words, and they are not the words of eco-zealots or Just Stop Oil; they are the words of the right hon. Gentleman, who sits on the Government Benches. He signed the net zero target into law, for goodness’ sake. We have to grow up.

In contrast to the right hon. Gentleman, we have the Minister for Energy Security and Net Zero, whom I like — [ Interruption. ] I do. We have worked together on climate, but I will now say something not so nice about him. This is what he said yesterday:

I can tell the Secretary of State and her colleagues that this strategy is doomed to fail. The British people do not want a Government who say, “We are going to weaponise the climate crisis.” They do not want a Government who say, “We are desperate. We are behind in the polls”—I remember that feeling—“and we therefore have to turn this into a wedge issue.” They want a Government who will cut bills and tackle the climate crisis. All the Government are doing day after day with all this nonsense is proving that they are not the answer.

A Labour King’s Speech would legislate to lift the ban on onshore wind, to speed up the planning process and to sort out the grid, so we can decarbonise our power system by 2030. Clean power is the foundation, and next comes energy efficiency. I am afraid that here the Government have utterly failed, and their complacency is extraordinary. This is what the Climate Change Committee said about the whole sector:

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12:22 Dame Maria Miller (Basingstoke) (Con)

Before I go on to that, I wish to pick up on the comments of the right hon. Member for Doncaster North (Edward Miliband). I did agree with one thing he said: we should not play politics with climate change. I do not think the people we represent want that, but he just gave us a 20-minute masterclass in just that. I hope that he will reflect on his speech, because to be playing such petty politics with such an important issue was not worthy of the work that I know he has done over many years. It is just not credible for him to simply dismiss the past 10 years of achievements, as he did in one fell swoop. I am sure that on reflection he will wish that he had spent more time acknowledging what this Government have done.

When we consider clean energy, it is worth looking first at the track record of this Government. We were the first major economy to legislate for a net zero target, and since 1990 we have cut emissions by 48%. One could be forgiven for not understanding that, given the right hon. Gentleman’s initial contribution. We are aiming to reduce emissions by 68% by 2030. Until we start to agree that there is success we can talk about, the electorate will continue to be confused. When we look at the progress that is being made and applaud it, we can then start to plan properly for the future.

In the first quarter of this year, 48% of our energy came from renewables, which was an increase from just 7% when the Conservatives took power in 2010. Perhaps some of the questions the right hon. Gentleman should be answering are why we were in such a relatively poor situation in 2010 and why more had not been done by the previous Administration. We are now an acknowledged world leader in offshore wind. I will address that later in my speech, because we could be working more with our friends, particularly countries such as Canada, to see how we can make sure that our renewable energy goes from strength to strength.

Gas and oil will continue to be part of the mix of energy that we use into the future, as they will for most developed countries. Our Bill in this area safeguards those domestic supplies, which is really important, because we cannot leave our country open to not having that safeguard in place, particularly given recent events. The King’s Speech clearly demonstrates a commitment to remaining at the forefront of the world’s transition to net zero, but the Government have also made sure that they have that safeguard in place through gas and oil.

My right hon. Friend the Secretary of State also mentioned skilled personnel associated with oil and gas. I reiterate the point she made in response to an intervention, drawing on my experience of a recent visit to Alberta. In that province, I saw how the skills of oil and gas personnel are already being used to develop renewable energy, whether that is expertise in pipelines, hydrogen— as mentioned by the hon. Member for Strangford (Jim Shannon)—chemicals, engineering or other forms of innovation. There are transferable skills and the Government need to urgently ensure we are not losing those skills to other countries; we must keep that expertise at home. We have made huge progress in greening our energy supplies but there is more to do. I hope that my right hon. Friend the Secretary of State can ensure that we do not lose that expertise to other countries.

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12:39 Dave Doogan (SNP)

With the same forked tongue that the Government used when they claimed that revenues could go to supporting household energy bills, they also claimed that tax revenues could go towards supporting renewable energy investment. If they meant that, they would be setting out exactly how that would happen; but they have not, because it will not happen under this Treasury or this Tory Government.

The only way to achieve long-term energy security, which goes in some way to answering the hon. Gentleman’s question, is through renewable energy produced on and offshore in the North sea and all around these islands. Scotland’s future is at the heart of this green gold rush but we are, as usual in this so-called Union, held back by London doing to Scotland, never with, and talking at us but never for us.

Thankfully, the Scottish Government recognise the huge opportunity of community energy schemes to empower communities, solve those challenges, and reduce the need for vast infrastructure investment projects through the community and renewable energy scheme. In Scotland, the Government have provided more than £58 million. Contrast that with the £10 million from the English Government for England—it is not actually £10 million anyway, because £1 million is for administration; it is really only £9 million—and we can see which Administration are supporting community energy generation, and which are not.

This debacle has needlessly set back wind production in auction round 5, and we need to see something very substantial in auction round 6. I assume that we will have a realistic strike price for offshore in auction round 6. I hope that it will be around 50% to 60% inflated over what was in auction round 5, in cognisance of supply chain constraints, construction price inflation, and the challenges of capital expenditure and attracting investor confidence in the UK, which of course has taken a real battering after the Prime Minister’s announcements to row back on climate emergency legislation.

That would depend on what we want to grow. If we want to invest substantially in renewable energy and the technologies of the future, then yes, I do. If we want to invest in Chinese expertise, French reactors and nuclear power plants, then no, I do not. It is very much horses for courses with this Government, and I wish that my constituents, and everyone else in Scotland, did not have to rely on these misguided ambitions any longer than we absolutely must.

To maximise the efficiency of renewable energy generation while ensuring the lowest possible prices for consumers, we require a properly functioning energy grid, which will necessarily include long-duration energy storage. Industry has been super clear that future expansion of pumped hydro storage is achievable and affordable, and that crucially a number of projects already have planning permission, such as Cruachan in the west of Scotland. However, the UK Government’s current market mechanisms prevent the investment needed to ensure that those vital projects are delivered in a timely manner, consistent with the climate emergency and the ambition to lower consumers’ bills.

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12:59 Chris Skidmore (Kingswood) (Con)

I remember my first Gracious Speech debate. A loyal Back Bencher who knew no better, I was sitting in the Library, and a Whip came around and asked whether I might participate. I said, “Yes, sure, I’m happy to. Would five minutes be okay?” He said, “Yes, come in, but we actually need you to speak for 45 minutes, if that’s all right.” I am delighted that we have far more people in the Chamber now compared with that debate, when I was one of the few Members in the room. That demonstrates, I think, the interest and the enthusiasm on both sides of the House for focusing on the importance of the energy transition not just to tackling the climate crisis, but for the opportunity it presents the UK economy.

I was delighted to hear in the Secretary of State’s speech her enthusiasm for setting out in detail the UK’s progress internationally. We are a clean energy superpower. We can debate among ourselves the finer policy details, but the reality is that over the past 15 years we have decarbonised further than any other G20 nation. We have reduced our emissions by 50%, while at the same time growing our economy by 70% on 1990 levels.

That is a paragon and a model that all other nations look to, but it is important that once we have earned a reputation, we seek to preserve that reputation. Many countries now are following the UK, and we are now in a new global net zero race. We may have gone further and faster initially, which made us able to attract inward investment into this country as a result of our climate leadership, but other countries are following up further and faster in our tracks. I am reminded of the tale of the tortoise and the hare; the tortoises of the world are coming up, and we cannot just sit there pausing, thinking that this is good enough.

We have the United States Inflation Reduction Act, setting out £370 billion of investment in clean technologies, and the EU’s green deal, with the opportunity of up to €1 trillion of investment, but it is not just the investment that is important here—it is the certainty. I chaired the net zero review and published the “Mission Zero: Independent Review of Net Zero” report in January. We were very kindly granted a debate in both Chambers on the recommendations of those reports. Above all, the narrative that that mission zero report set out was that net zero is not a cost but an opportunity and an investment, and that there are two paths ahead of us.

The Secretary of State talked about two paths, and I will come on to that in a moment, but my own analysis is that the net zero path can potentially bring up to £1 trillion of inward investment and up to 480,000 new additional jobs by 2035, if we so wish. However, that path requires commitment from the Government to provide certainty, clarity, continuity and consistency—the four Cs that we identified—and a mission-based approach that provides long-term programmatic certainty. That certainty is almost more important than the money.

Let us be clear: of course there is a capital cost to energy transition and there is capital investment that needs to be made, but once the capital investment is made, the operational cost is far less than for fossil fuel technologies. However, that money will come above all not from the taxpayer, but overwhelmingly from private investors, who need certainty. Certainty does not come only from Government policy, legislation and regulation, although the net zero review was very clear in setting out 129 recommendations for how Government and Parliament can provide frameworks to ensure that investors have the opportunity to reduce delays and unblock the current problems whereby people cannot get grid connections until 2035. I welcome the progress that is being made on that, but certainty also comes from having cross-party consensus.

What is cross-party consensus? It does not necessarily mean that we will agree on everything. It is right in this democratic nation that we discuss the details of policies and hold each other to account, but let us understand that the consensus we need on climate was fought for by working closely together. The Climate Change Act 2008 was passed by the then Labour Government. The right hon. Member for Doncaster North (Edward Miliband) was the Secretary of State at the time, but he had the political courage to accept an amendment from the Conservative party, then in opposition, to raise our ambition from 60% emissions reduction on 1990 levels to 80%.

The legal framework that we had in place, with the carbon budgets process, and on top of that the Climate Change Committee acting as an independent advisory body—it does not make any policy recommendations, and to suggest that it does is deeply flawed, because all it does is to report back and advise on policy decisions, whoever makes them, whether it is the UK, Scottish or Welsh Government or even the Opposition—has been admired across the world as a paradigm of stability. Not only that, but it allowed me, as the Energy Minister back in 2019, to bring net zero into law.

Why was net zero so important for developing a clean energy superpower? Because it meant that there was nowhere to hide. No one could claim to be in that 20% that was too difficult to tackle. Net zero was everyone’s business, and with that came a moment when net zero went viral. If someone had told me back in 2019, I simply would not have believed that 93% of global GDP would have now signed up to a net zero target in some form.

When it comes to those emissions reductions, it is not about 2050; we cannot keep on kicking the can down the road. As COP28 will show, the globe will commit to a trebling of renewables and a doubling of energy efficiency measures in order to meet a halving of emissions by 2030. The UK needs to lead on the 68% emissions reduction target that it set in its own nationally determined contributions. The decisions we make today count not just for 27 years’ time, but for seven years’ time. That is what is at stake here.

That brings me, in conclusion, to the question of the future use of fossil fuels in this country. I understand that it is a closely fought debate, and unfortunately it has become politicised. I regret the decision that has been taken, but let us focus again on the evidence at hand. To start with, everyone in this Chamber, as far as I know, understands that we will need to continue using oil and gas. The Committee on Climate Change has set out the so-called balanced pathway, working alongside the North Sea Transition Authority, to recognise that we will still need to use oil and gas into the 2050s, but that we should do it with our existing wells and fields.

In reality, when it comes to looking at the future of oil and gas in this country, I do not belong to Just Stop Oil—I am not some eco-extremist just because I signed net zero into law, which was the bare minimum we could do. I saw net zero as a conservative mission, recognising that one of the priorities of the Conservative party, if anything at all, is to conserve. At the same time, it allowed us to generate economic growth and to ensure that all jobs, no matter the industry, were protected.

I am glad that we have raised the issue of jobs and people in oil and gas communities, because we must think about the individual communities and the people who work in those industries. They are highly talented and highly skilled, and we absolutely need their support to ensure that we can have a successful transition. The net zero review set out that we need an offshore industries passport; we need to make it far easier for individuals to move across into the industries of the future.

I know that the debate on oil and gas is emotive, and, to be honest, it is not helped by the performative protest of Just Stop Oil, which does not get anyone anywhere. No one in this Chamber supports Just Stop Oil. If we are honest, as democratically elected representatives, it is beneath us to suggest that any of us is in the same camp as Just Stop Oil. We are diametrically opposed, because we come to this Chamber to have democratic debate, across parties, about what is needed for the future, not to oppose for opposition’s sake. In understanding what needs to happen with the net zero transition, we need to ensure that we work together using the existing legislative apparatus—the CCC, the carbon budget process—and that we continue to lead, but that requires political certainty and political stability.

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13:15 Barry Gardiner (Labour)

What we have in this King’s Speech is not the Bill to tackle fuel poverty that we need, but a Bill to shovel yet more public money to the oil and gas sector through the Offshore Petroleum Licensing Bill. The Government seek to justify the Bill by saying it will “enhance” this country’s energy security. It will not, because companies such as Shell and Siccar Point Energy sell their gas on the international markets and refine their oil abroad. The International Energy Agency has made it clear that we have already identified five times the amount of oil and gas that the world could possibly use if it is to keep within the 1.5° threshold of dangerous climate change.

The Secretary of State tries to persuade the House and the public that these licences are justified because of the tax revenue they will bring. That might be an argument if the facts did not tell us that any tax revenues will not flow from these licences for the five to eight years that it will take to develop them. That might be an argument if the facts did not tell us that it will divert investment away from the real, cheaper, cleaner renewable energy that will actually reduce bills. It might be an argument if it were not the case that, even with the windfall tax, the tax take from oil and gas producers is less than the global average.

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13:28 David Duguid (Banff and Buchan) (Con)

The topic of today’s debate is making Britain a clean energy superpower, and it is on growing the economy and particularly the subject of energy security that I would like to focus. That will come as no surprise to most people in this House, as I have spoken at length in this place on the combined subjects of energy security and net zero even before that became the name of the Department headed by my right hon. Friend the Member for East Surrey (Claire Coutinho). The main thrust of my contributions has been, I believe, to reinforce the critical role played by oil and gas companies; their workers with their skills and expertise; the technology, supply chains and service companies; and, yes, the capital that those companies bring in making this country’s energy transition a success. I recognise that this appears counterintuitive to some across the House, but delivering on our energy security objectives and on our energy transition objectives are not mutually exclusive goals.

I therefore welcome the Offshore Petroleum Licensing Bill that was introduced this week. While this country continues to scale up our domestic, renewable and low-carbon sources of energy, data from the Climate Change Committee tells us that we are currently 75% dependent on oil and gas for our energy needs. As the right hon. Member for Doncaster North (Edward Miliband)—who is no longer in his place—mentioned earlier, that figure is not just for electricity generation, but includes transportation and heat. It was the Climate Change Committee that pushed for the very ambitious target of the UK getting to net zero emissions by 2050. That target was put into law by this Conservative Government—in fact, by my right hon. Friend the Member for Kingswood (Chris Skidmore)—making the UK the first major economy anywhere in the world to do so.

That data from the Climate Change Committee also tells us that by 2050, when we reach net zero, this country is predicted to still be at least 20% dependent on oil and gas. As has already been established, we have decarbonised faster than any other G7 country compared with 1990 levels: we have reduced emissions by almost 50%, with a target to reach a 68% reduction by 2030. We have almost completely transitioned away from coal, which provided 70% of our power generation in 1990 but provides less than 2% today, and the deadline for zero unabated coal power has been brought forward to 2024—just next year.

However, we have some way to go if we are to get to net zero. I make no apologies for saying this: we absolutely must continue to develop and install more and more renewable, low-carbon and sustainable sources of energy to generate the electricity and provide the heat and transport that our economy needs. We will continue to deliver more wind, solar, carbon capture and storage, hydrogen and other technologies to actively reduce the demand for oil and gas. We have come a long way, but we are not there yet. We need to get from where we are today to where we need to be in the future through the energy transition that we have already embarked upon—an transition that the oil and gas industry has been embarked upon for decades.

To give an example, we need look no further than Peterhead power station in my constituency. That power station came onstream in 1980, and is today the only dispatchable thermal power station north of Leeds. Originally designed to run on fuel oil, which already made it cleaner than coal-powered stations elsewhere in the country, it was operating fully on natural gas by the 1990s. In the 2000s, combined cycle gas turbine technology was installed, which made the station even more efficient. It is now towards the end of its life, and a new power station is planned to be built at the same site. With roughly two thirds of the capacity of the current power station, but linked to the Acorn carbon capture project at the nearby St Fergus terminal just up the coast, that new facility will generate power that is at least 95% emission-free. As many in the House will know, Acorn forms part of the Scottish CCS cluster, which will help decarbonise industrial processes at the Mossmorran liquefied natural gas plant in Fife and the petrochemical complex at Grangemouth in the central belt, among others.

OEUK has warned that without fresh investment, by 2030 the UK will be reliant on oil and gas imports not for 50% of its needs, as it is today, but for 80%. As I have said, more than 200,000 jobs depend on the continuity of North sea energy companies. That workforce has developed world-leading specialist skills since oil and gas production from the UKCS began in the 1970s. About 90% of those workers have skills that can be readily transferred to renewable energy production, and in the growing carbon capture, utilisation and storage sector that figure is probably closer to 100%.

Norway is the two. Actually, it is broadly equivalent, but apart from Norway, any gas coming in from overseas has between two and five times the carbon footprint. New oil and gas capacity will reduce exposure to global instability—the kind of instability that we saw when Russia invaded Ukraine. This Bill means that we can reach net zero without unduly burdening families and businesses. Data from the North Sea Transition Authority and the Climate Change Committee tells us that if we produce as much oil and gas from the new wells as we can, that will still merely slow the decline in production. Even with an optimistic 7% year-on-year decline—I mean optimistic from a producer’s point of view—that decline is faster than the average global decline needed to align with the Intergovernmental Panel on Climate Change’s 1.5°C pathway.

I thank the hon. Member for giving way. In his haste to castigate the SNP for presumptions against oil and gas, will he not at least have the intellectual honesty to recognise that in the climate change compatibility checkpoints, his own Government are introducing a presumption against further development, no matter how weak and feeble that presumption might seem to anyone with a care for the subject?

I have heard the hon. Gentleman make that remark before, and I am sorry to say that I completely disagree. A presumption against new oil and gas development is a presumption against new oil and gas development; a climate change compatibility checkpoint is part of an assumption of new oil and gas, so it is not a presumption against new oil and gas. [ Interruption. ] I have just explained it.

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13:52 Geoffrey Clifton-Brown (Conservative)

As the Secretary of State mentioned, we should use the revenue from licensing to help to fund the transition to clean energy and jobs and to support the Government’s pragmatic approach to reaching the goal of net zero by 2050, which I know is an important commitment to my constituents. The UK is one of the first countries to commit to ending unabated coal-fuelled generation and has cut emissions by more than 40% since the turn of the century. At the same time, our economy has grown by two thirds.

Our ambition to nurture some of the most highly educated pupils in the world is rooted in our desire to harness the full potential of new technologies. From groundbreaking medical advancements to the integration of AI, which we heard about in the statement to the House earlier, we are committed to modernising regulation to facilitate the growth and competitiveness of major tech firms in the UK. That has the potential to revolutionise this country, particularly in respect of some of its deep-seated problems, such as how to decarbonise and meet our 2050 targets. A series of Bills, including the Automated Vehicles Bill, the Digital Markets, Competition and Consumers Bill and the Data Protection and Digital Information Bill will be introduced to govern the actions of those global tech giants, ensuring a level playing field for established and emerging technologies.

The Government must continue to build on their commendable environmental record; to lead the charge in combating climate change and particularly biodiversity loss, which has not been mentioned so far in the debate; to support developing nations in their transition to sustainable energy sources; and to hold other nations accountable for their own environmental commitment, as my right hon. Friend the Secretary of State has so ably set out today.

The Government must continue to build on their commendable environmental record; to lead the charge in combating climate change and particularly biodiversity loss, which has not been mentioned so far in the debate; to support developing nations in their transition to sustainable energy sources; and to hold other nations accountable for their own environmental commitment, as my right hon. Friend the Secretary of State has so ably set out today.

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14:02 Sharon Hodgson (Labour)

In 2024, automotive companies such as Nissan in my constituency will experience new financial and regulatory pressures, including the zero-emission vehicles mandate, which requires 22% of new cars sold in 2024 to be zero emission, and that will increase to 80% by 2030. Nissan, of course, is confident that it will meet all these new measures, but instead of helping manufacturers cope with the increased pressures, the Government have pulled the rug from under them by changing strategy and delaying their electric vehicles net zero 2030 commitment. That has inflicted uncertainty on investors, which will only delay the critical infrastructure that must be built for electric vehicle use. It also gives consumers less incentive to buy electric vehicles, which will simply leave manufacturers footing the bill as a result of decreased demand. That is the opposite of what should be happening: the Government are in the way of progress, not supporting it. We need them to move out of the way, get out of the seat of power and make way for a Government who have a plan, and indeed a mission, to reach net zero in a timely manner.

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14:12 Bob Blackman (Conservative)

It is equally important that we ensure that we are not reliant on hostile regimes from abroad for the supply of our energy. The important point made by, I think, my hon. Friend the Member for Banff and Buchan, was that the new licences for drilling in the North sea that we are talking about are only replacing those going out of commission, so we continue to be in a position whereby we enable our net zero transition to take place. It is also important that, when we face hostile regimes such as those in Russia and Iran, we maintain our domestic supply as appropriate and, as has been said, safeguard 200,000 jobs in the UK as a result.

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14:27 Colleen Fletcher (Coventry North East) (Lab)

This is certainly an underwhelming King’s Speech and Government programme. Not surprisingly, it is more notable for what is missing than what is included. Where is the coherent, long-term plan to fix the economy, tackle the cost of living crisis, make our streets safer, achieve net zero and rebuild our NHS? While the country is crying out for change, the Tories are simply offering more of the same: more empty words, broken promises, repackaged policies and sticking plaster politics.

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14:32 Duncan Baker (North Norfolk) (Con)

About 200,000 jobs are clearly linked to the oil and gas industry. Opposition Members seem sometimes not to recognise the stark reality that we need taxation going into the Exchequer to pay our way and fund the public services that help this country. Money does not grow on trees. Statistically, I think £50 billion is what is raised for the Exchequer from oil and gas companies. If we were to turn that off tomorrow, where on earth would we get the money to continue to run this country? We are in a transition and that is the whole point. We have made a far greater stab at decarbonisation than virtually every other nation on earth and we will continue to do that, but we have to do it in a way that does not risk the economy and the hundreds of thousands of jobs that are still dependent on that transition happening at a just rate.

Bacton epitomises all of that in miniature form. Not only does it process an enormous amount of gas through its pipelines; it is already making the transition. The site has a licence, which was given just a few months ago, to carry out carbon capture and storage. Eni was granted a licence for the depleted Hewett gas field, which is expected to be in operation in the next few years. That alone will have the capacity to store millions of tonnes of carbon dioxide. But that is just the start. Monday’s visit was all about getting the Prime Minister to recognise that Bacton can also be a green energy hub for the future. For heavy machinery and industry, it is the perfect site in the east of England to be a hydrogen hub. It is the only site in the east, I believe, with an interconnector into Europe—it goes to Belgium. If we start off small with blended hydrogen, it is quite feasible that over time the operation has the capacity to be a major hydrogen hub in the east of England.

I welcome what was said in the King’s Speech about securing our energy mix and security. With gas, CCS and hydrogen production all possibly happening in my constituency, it propels a small village on the north Norfolk coast into quite possibly being a major player in energy production in the east of England. It could be an energy hub for the future and it is on a journey to securing more green jobs for an area that typically just does not have them. Agriculture and tourism are the mainstays of the economy, but the site has the ability to secure the high-quality jobs of the future.

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14:48 Anthony Mangnall (Totnes) (Con)

I am also surprised that, in this debate, we have not spoken more about the Treasury’s position on incentivising businesses to do more to invest in green technologies in this country, whether through tax credits, encouraging research and development, innovation funds, the UK Infrastructure Bank—I can see the Exchequer Secretary to the Treasury nodding; he knows a great deal about this—or the £22 billion of capital that has been made available for businesses to invest in this sector in the United Kingdom. We forget that at our peril, because it will create the certainty to help us transition to a cleaner, greener economy that addresses climate change.

My hon. Friend knows more about trade than many people in this place. In addition to all the different renewable and sustainable energy technologies we could be exporting that we develop here, does he agree that an opportunity is provided by the mere act of having a successful transition from 75% oil and gas dependency today to 20% oil and gas in the future? Being seen to be able to do that and our showing how to do that can, in itself, be an exportable commodity?

It is a pleasure to be able to support the King’s Speech and to speak up about the proud record this country has in addressing climate change, reducing emissions and creating new technologies and industries. We should be proud of that, talk it up and never let the fearmongers win.

It is a pleasure to be able to support the King’s Speech and to speak up about the proud record this country has in addressing climate change, reducing emissions and creating new technologies and industries. We should be proud of that, talk it up and never let the fearmongers win.

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15:01 Nadia Whittome (Labour)

Not only are the Government failing to tackle the biggest challenge of our future, but they are intent on escalating it. Already catastrophic flooding turns millions of lives upside down every year, including thousands in the UK, while droughts are affecting food production, causing prices to soar. The climate crisis will only make that worse. The science is clear: without decisive action, our future is under threat. But as we have seen throughout the course of today’s debate, this Conservative Government are in thrall to fossil fuel companies and are attempting to turn the race to net zero into a culture war. There is no other explanation for their decision to water down climate policies and turbocharge new oil and gas, announcing legislation for a new annual system for awarding drilling licenses.

We must not be fooled: it is working-class people who will suffer the greatest consequences if we fail to lower our emissions. The climate crisis and cost of living crisis are two sides of the same coin, and there are solutions that can tackle both at the same time. A just transition is possible if the super-rich and polluters are made to pay their fair share. We should see the sprint to net zero as an opportunity to redistribute wealth and power in our communities.

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15:05 Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)

In 2019, oil and gas production in Scotland accounted for 82% of the total UK production. By 2030, Scotland will be sending south 124 billion kWh of energy—all for nothing. That is 12.5 times the amount of energy that Scotland requires. With 8.1% of the UK population, Scotland is responsible for almost a quarter of the UK’s green energy production, 85% of its hydro production, 82% of its oil and gas, 90% of its surface fresh water and 50% of the world’s tidal stream capacity. Despite that, we have fuel-poor Scots.

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15:23 Simon Lightwood (Labour)

The Tories have yet again doubled down on oil and gas licences as their solution, but that does nothing to fight the climate crisis, and even the Energy Secretary cannot say that it will bring bills down. Our communities have been hit harder than anywhere else in western Europe, and last summer the price of gas was nine times higher than that of renewables. To add to this, their ban on onshore wind, as well as their scrapping of the energy efficiency programme, has added hundreds of pounds to every family’s bills. The King’s Speech also made no mention of the community energy sector, which would build renewable energy capacity and put communities in control.

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15:28 Richard Thomson (Gordon) (SNP)

It is a pleasure to speak in a debate about energy, because it feeds into the most pressing crisis that all our constituents face at this point in time: the cost of living crisis. We know that higher interest rates are not the answer to the inflation they face. Brexit has certainly made things a great deal worse by increasing the cost of imports, but the cost of living crisis has at its core the massive increase that we have seen in the cost of energy. That taps into our energy security and, as we have heard, it taps into the climate crisis, but it also taps into the opportunities for economic transformation as we industrialise—at least, we have the opportunity to industrialise —through the green revolution.

There are proposals to double the capacity at Cruachan power station, and to develop a very large pumped storage facility at Coire Glas. It is the regulatory role of the UK Government in those projects, or the oversight they have, that will decide whether or not they go ahead. I encourage the Minister—it might be worth her listening to this—to make progress on those projects, because that is one of the ways in which we will deal with the fluctuations of renewable energy to meet the baseload requirement.

That takes me to my second point, which is on how to be a clean energy superpower. We need a genuine energy transition, and that starts with a bit of basic honesty about the role that oil and gas need to play. The unlimited extraction of oil and gas is simply not compatible with our climate obligations. However, we also need to recognise that, even if there was not a pressing climate change catastrophe looming, our domestic capacity is in long-term decline. Any new licences that are issued and actually come to fruition are only going to slow the rate of overall decline, and we need to be making an impact where we really can, which is in licensing new renewables.

The Secretary of State, who is now back in her place, was good enough to take an intervention from me, just as she was reaching a rhetorical zenith about floating offshore wind. The answer to my question, which she quite understandably chose not to give, is that the last round of floating offshore wind options would increase capacity by absolutely nothing because not a single bid came in. The reason for that is embarrassing. It yielded absolutely no bids because the price was wrong. The industry told the Government that, and the UK Government persisted in thinking that they knew best. The auction, rather predictably, fell flat on its face, and the result of that auction round was that the increase in offshore wind capacity was net zero.

The final point I wish to make is on the need to invest in making this happen. We need to learn the lesson that future oil and gas can only slow the rate of decline, and that we need to be doing much better in incentivising the technologies of the future. When Prime Minister Boris Johnson paid a visit to the Moray East offshore wind farm, he made a predictably vacuous and facetious remark, saying that Margaret Thatcher was a green pioneer through her virtual destruction of the coal industry. Just as we know there was no just transition for the miners, it looks unlikely that there is a just transition planned for steelworkers who may be affected by recent announcements. We need to make absolutely sure that there is a just transition for the oil and gas sector, but it does not look as though there is anything in prospect from anything the Government are planning, other than that it will be everybody for themselves.

I shall wrap up. What was needed was a King’s Speech that delivered on the means by which we would achieve energy security, that tackled the climate crisis and that delivered the potential for economic transformation, as well as giving relief to hard-pressed energy users. The evidence is that this is not going to happen in Westminster, and it should be devolved. We should be independent, which would be a better place for Scotland to be, so that we can get on with taking the right decisions for the right reasons, off the back of our own decisions mandated by the electorate of Scotland.

I shall wrap up. What was needed was a King’s Speech that delivered on the means by which we would achieve energy security, that tackled the climate crisis and that delivered the potential for economic transformation, as well as giving relief to hard-pressed energy users. The evidence is that this is not going to happen in Westminster, and it should be devolved. We should be independent, which would be a better place for Scotland to be, so that we can get on with taking the right decisions for the right reasons, off the back of our own decisions mandated by the electorate of Scotland.

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15:39 Jonathan Reynolds (Labour)

As we heard the Gracious Speech, we realised that the Government’s programme is not only incredibly thin, but completely incoherent. It was a speech that promised record investment in renewable energy, just weeks after the Prime Minister abandoned climate leadership and dropped key targets for the transition. It was a speech that promised a more competitive Britain, without acknowledging the huge increase in red tape facing so many of our exporters, for which this Government are responsible. It was a speech that promised long-term decisions, just days after the country’s flagship long-term infrastructure project was cancelled. Most of all, it was a speech that offered no change, despite the Prime Minister himself saying that after 13 years of Conservative Government, change is essential. On that score, he is surely right. This Conservative Government over the last 13 years have been one of the least successful in British history, and now we know that this latest Prime Minister will fail on his own terms, because he is only offering more of the same.

I admire the Prime Minister’s candour about his own party’s record over the past 13 years. Our public realm is literally crumbling, we have the lowest business investment in the G7, we have had over a decade of poor economic growth, people are struggling to pay their bills, we are not getting the basics right—we are short of houses and infrastructure—and we face big and complex challenges like net zero and charting a course to a prosperous post-Brexit future. All those things require the very best of Government. We need a Government who come to this House with urgency and passion, courage and ambition; a Government who want to work with industry and workers to get the transition right; a Government who will put the interests of working people ahead of the hobby-horses of their own Back Benchers; and Ministers with vision, drive and determination. But that is not this Government, and it never will be.

The subject of today’s debate is making Britain a clean energy superpower, and Britain could and should be that clean energy superpower. We are entering an age that will be dominated by offshore wind, solar, nuclear and carbon capture, and we have several competitive advantages that should make us the envy of the world. We genuinely have the potential to do things that no other country could do, but that is not going to happen by accident. We need to deploy political and economic capital to make it happen. The Climate Change Committee says that there is a policy gap that amounts to a fifth of the emissions that need to be reduced to meet the 2030 target, yet I think only one Conservative MP even mentioned that in the debate.

Many of my Opposition colleagues made excellent speeches, which I want to reference. My hon. Friend the Member for Brent North (Barry Gardiner) lamented that the UK is no longer showing leadership on this issue. He talked about the need to decarbonise buildings and pointed out correctly that the Government’s retreat on energy efficiency standards for domestic properties, particularly in the private rented sector, will cost people money. That was one of the most glaring points where the Prime Minister got it wrong in his speech.

My hon. Friend the Member for Nottingham East (Nadia Whittome) talked about how the King’s Speech was completely incongruous with the reality of the problems that the UK faces, and about how the energy and net zero agenda is fundamentally an opportunity—on that she is surely right.

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15:53 Nus Ghani (Conservative)

It was good to hear my right hon. Friend the Member for Basingstoke acknowledge that we are world leaders in offshore wind and other renewables, especially small modular reactors and fusion energy, and to hear about her recent experience in Canada as our trade envoy. She reflected on battery plants and storage, and will be pleased to know that I will publish the battery strategy shortly. She reflected on critical minerals—she knows I published a critical minerals strategy recently—because we cannot have a net zero agenda without them. She also asked about the NPPF; we got a note back to say that it is on its way. Of course, that is not within my remit, but I do not doubt that her words have been acknowledged.

Let me reflect on the comments made by my right hon. Friend the Member for Kingswood (Chris Skidmore) and his tremendous work on the Skidmore review. I agree that we have earned a reputation in the UK as leaders in achieving net zero, and now that reputation needs to be preserved. It is indeed a race, and we started off fast so we need to ensure that we continue ahead of the game. He also reflected on the Inflation Reduction Act, which has changed the game plan—I know that, as the Industry Minister—and the challenges it poses for supply chains. It is unfortunate that this will be his last King’s Speech debate, but I do not doubt that we will hear his voice on this agenda.

The hon. Member for Brighton, Pavilion (Caroline Lucas), gave a speech that was far more ideological than embedded in the reality of people’s lives, and did not reflect at all on our track record on getting to net zero and reducing emissions. I always find it curious that people talk about resilience but are prepared to let other markets boom at the cost of markets being invested in and jobs being grown here in the UK.

I am anxious about how much time I have left to speak. I am closing the debate as a Business and Trade Minister, and have many more opportunities coming up to help ensure that we deliver on growing the economy and achieving net zero. We have a couple of programmes of work that were reflected in the King’s Speech in the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill and the Digital Markets, Competition and Consumers Bill.

Turning to the subject of today’s debate, the Government are already turning the country into a clean energy superpower. “Already” is the important word there, because while the Opposition might try to claim otherwise, this work is well under way. Let me remind the House of the formidable record we are building on. The UK achieved the fastest rate of greenhouse gas emission reductions of all G7 countries, while renewables already generated over 48% of our electricity in the first quarter of this year—the highest ever level. Of course, we know we can and must go further, which is why the UK has one of the world’s most ambitious 2030 targets. However, the Government are also acutely aware that we cannot ask our citizens and businesses to pay undue burdens for achieving our net zero goals, particularly in these challenging economic times. Nor can we ignore the fact that Putin’s war of aggression means that we are living in a more dangerous world with far more complicated supply chains. As the Secretary of State for Energy Security and Net Zero has already explained, it is only right that we reduce our reliance on volatile international energy markets and hostile regimes. She will be doing so through legislation such as the Offshore Petroleum Licensing Bill.

However, the Government are not just focusing on words; they are taking action. Between 2020 and 2023, my Department alone supported more than £28 billion of net zero-related inward investment, creating 30,000 jobs. Thanks to our work, the country’s economic geography is also shifting—from clean technology development in the midlands, offshore wind in the north-east and Scotland and turbine manufacturers in Hull, to innovative hydrogen-powered buses in Northern Ireland. With the North sea transition deal, the Government are helping workers, businesses and the supply chain in fossil fuel-related industries to adapt to a net zero future, providing £20 billion of funding to encourage the early deployment of carbon capture, usage and storage, and to unlock private investment and jobs. Whether we are talking about our recently announced plans for carbon capture clusters in the north-west and north-east, the first 15 winning projects to receive investment from the Government’s £240 million net zero hydrogen fund, the port towns that stand to benefit from the £160 million-worth of floating offshore wind manufacturing schemes, or our freeports and investment zones, our policies are creating jobs, reinvigorating communities and opening horizons the length and breadth of the country.

It would be remiss of me not to talk about my own brief, which covers industries and, fundamentally, the automotive, aerospace and maritime sectors. Here again, my Department is playing an instrumental role. We recently announced a joint investment package with Tata Steel, worth £1.25 billion, to replace end-of-life blast furnaces with electric arc furnace steel production. That will preserve steelmaking for generations to come and enable green steel production to take place in the UK. While we are helping manufacturers, including steel producers, to access lower-cost hydrogen through the net zero hydrogen fund, we are also enabling our world-renowned automotive sector to seize the opportunities of the net zero transition. For instance, we have the automotive transformation fund from the Advanced Propulsion Centre, and the Faraday battery challenge. That has unlocked investment into the UK. Stellantis is producing electric vans at its Ellesmere Port plant, the first factory to be dedicated to the manufacture of electric vehicles, BMW Group is investing £600 million to bring two new all-electric Mini models to Oxford by 2026, and Tata has announced a £4 billion investment in Europe’s largest here in the UK. All that shows what our strategies are already providing.

I thank the Minister for making an important point about job creation. As I said in my speech, the net zero review pointed to the 480,000 additional jobs resulting from green industries. When it comes to green steel both in Port Talbot and in Ellesmere Port, and the future of electric arc furnaces, does the Minister agree that, as politicians on both sides of the House, we need to fight the corrosive disinformation that green steel is somehow costing jobs—there would otherwise have been 6,000 job losses in Port Talbot rather than 3,000 potential job transfers—and point out that it is green industries that are keeping jobs alive? If we stick with the status quo, we will simply lose every job.

Owing to the importance of this issue, I must add something to the record. As the Minister and the Secretary of State know, electric arc furnaces are not the only way to decarbonise the steel industry. There are examples around the world of the use of ammonia and hydrogen in what is known as the direct reduced iron process, and other technologies are under way. Are we to be the first developed country to lose the capacity to make virgin steel? That appears to be Government policy, but I am not sure that the Minister could deliver the necessary votes for that on her own side of the House. I think she should clarify whether it is indeed Government policy, because she would not say so during yesterday’s exchanges on the urgent question.

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