15:39 Andrew Bowie (Conservative)

(Urgent Question) : To ask the Secretary of State for Energy Security and Net Zero if he will make a statement on the ruling on the Rosebank and Jackdaw oilfields as unlawful.

The Labour party seems to misunderstand this simple point: if we shut down our oil and gas industry, we will not use any less oil and gas—even the Climate Change Committee knows that. The Department seems to ignore the fact that we will simply rely on more imports instead. If those imports are liquified natural gas, they will come with four times the production emissions, and if we import from Norway, we will be shipping in gas from underneath the very same North sea. Sacrificing our domestic industry, only to rely on foreign imports and compound global carbon emissions, is utter madness for our economy and for the climate. It makes a mockery of our prospects for growth, and it will cost the Treasury £12 billion in lost revenue. To put that figure into perspective, it is equivalent to eight and a half years’ worth of winter fuel payments.

Contrary to what has been said by the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), approving these oilfields this will not protect UK workers. Despite promises of jobs, not a single UK design or construction role has been created. Instead, that work has been outsourced to Dubai. Business leaders agree that a fair transition away from oil and gas will boost our economy, create jobs and attract investment. The Liberal Democrats oppose the oilfields at Jackdaw and Rosebank. Instead of pouring money into an energy source that is not consistent with our climate commitments, we should be calling on the Government to invest in renewables and an ambitious green energy strategy that lowers costs, creates jobs and secures our future. What assessment will the Minister make of our climate commitments?

On the point at issue, there must be balance in the necessary transition from carbon to renewables. It is not an either/or. We have been in the North sea for two generations, and we will be there for two generations more as we wind down the basin. Politics is often about symbols, and the renewed consents for Rosebank and Jackdaw, if they come, offer an opportunity to reassure workers in this industry that they will not be left behind when we plan for a fair and just transition from the old to the new.

The Chancellor was very clear in her speech that there is no conflict between our net zero commitments and the industrialisation that we want to see. Economic growth projects such as the runway at Heathrow will be important but, as the Chancellor said, they will have to be in line with our climate obligations.

I urge the Minister and Labour colleagues to take no lessons from the Conservative party on a fair and just transition away from fossil fuels, because our coalfield communities in this country were destroyed by Tory Governments over decades. In contrast, we need to look at the growth we are now providing by lifting the onshore wind ban, investing in carbon capture and storage, and establishing GB Energy.

I am not sure whether the hon. Gentleman is one of the Scottish National party cohort seeking to move to our other Parliament, but the SNP’s position in Holyrood is the same as ours, which is that we must be cognisant of climate change obligations with regard to any new licences. Perhaps he has a different position from his colleagues in Holyrood—I am not sure—but the SNP recognises, rightly, as we do, that the future requires investment in oil and gas for many years to come, to which we are committed, and that investment must match our climate obligations. The transition that is now under way must have Government at its heart, supporting the jobs and industries that come in the future. If the hon. Gentleman supported some of the investment that we propose, such as at Great British Energy in Aberdeen, instead of deriding it at every single turn— [ Interruption. ] Mr Speaker, I have again united all the Members of Parliament from north-east Scotland who oppose investment in their own constituencies. If the hon. Gentleman supported that investment, maybe he would see the jobs of the future coming.

I thank the Minister for the thoughtful way in which he is proceeding. We all recognise that climate change is a threat to growth rather than a driver of it, whether that is through flooding, fires or the chaos that it causes. It is therefore shocking that the previous Government did not take account of emissions and the impact that they might have on our economy in making the decision to proceed with Rosebank, and it is right that we rethink that.

My hon. Friend is right to make the point that climate change is not a future threat but a present reality. This year alone there have been a number of examples around the world of that present reality already having a huge and devastating impact on people’s lives.

I welcome what my hon. Friend has said about the importance of the just transition and the need to move gradually to renewables. He quoted from our party’s manifesto that

“they will not take a penny off bills, cannot make us energy secure, and will only accelerate the worsening climate crisis.”

Can he confirm that the 3 million oil barrels that would come out of Rosebank would in fact not take a penny off bills, cannot make us energy secure and would only worsen the climate crisis?

The Minister talks of the threats of the climate crisis and the need for us to meet our climate commitments, which is encouraging to hear. What steps are the Government taking right now to improve the energy efficiency of homes across the UK to help us reduce our dependence on oil and gas?

I give credit to the hon. Lady for the ingenious way she got that important question into the urgent question. She makes the good point that, as well as ensuring we have built the clean power system for the needs of the future, we want to reduce as much as possible the need for households to heat their homes by making them much warmer in the first place. We are doing that by improving the standard of homes through the work being done by the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Peckham (Miatta Fahnbulleh) on the warm homes plan. We know that some of the poorest people in our country live in substandard homes that are cold and that take far too much of their monthly budgets to heat. We are determined to do something about that, as well as working across the piece on energy-efficiency measures that reduce demand in the years ahead.

My hon. Friend outlines again the importance of tackling the climate crisis that is with us now. That is why the Government have been determined to move faster, through our clean power action plan and through the Department’s wider work to decarbonise across our economy. That is incredibly important and we do not have a moment to waste.

The Rosebank and Jackdaw oil and gas fields could supply 8% of the UK’s gas needs. The Minister has talked about the court cases, but will he clarify why the Prime Minister let the Secretary of State for Energy Security and Net Zero take Government lawyers off the defence of this case? If their push for growth is to mean anything, will the Government look again at changing judicial review processes?

Conservative Members are speaking up now, but I was present at the United Nations General Assembly when they risked investor confidence in the UK. The then Prime Minister rowed back on net zero commitments, risking investor confidence in the UK and risking our global reputation on climate leadership. This Government are putting us back on the world stage when it comes to climate leadership, and we have a goal: to deliver clean power by 2030. Does the Minister agree that the UK’s key growth sectors of the future include renewable energy, and that there will be jobs for the future in renewable energy and our own Great British Energy?

It matters that this country takes a leadership role on climate, because the transition that we want to deliver here is also being delivered right across the world. The country with the fastest transition to clean power last year was China. In some cases, Members of this Parliament are trying to row back on our net zero commitments. We are determined to double down on those commitments, because that is the best way to deliver stability and energy security, bring down bills and create the industrial future and jobs that this country needs.

However, the right hon. Gentleman and I will always disagree on the fundamental point that tackling climate change is in all our interests. Right around the world, we see the impact of not tackling climate change. It is a clear and present danger to our country and our national security, and we will tackle it.

Another day, another Labour Minister cleaning up the mess of the Conservatives who came before them. The only reason why we are having this discussion today, and why there is any lack of clarity for workers in the north-east, is that the Conservatives messed up in government. However, does the Minister agree that supporting projects such as Rosebank and Jackdaw is entirely compatible with our drive towards a net zero economy? We will continue to need domestic oil and gas to 2050 and likely beyond, and therefore we should maximise UK production, since we can do so with the highest possible labour and environmental standards, and should secure and create jobs in Scotland and the rest of the UK.

My hon. Friend mentions environmental standards. In my past few months in this job, I have been pleased to hear about the huge amount of work that oil and gas companies have undertaken to decarbonise their work through electrification and other means. This question is about the scope 3 emissions, however, that the Supreme Court ruled must be taken into account; that is about the end use of the hydrocarbons as well. We will put in place a process to deal with that.

Last week, in excess of 400 redundancy letters were issued to workers at Grangemouth, Scotland’s only oil refinery, so perhaps the Minister will start matching his warm words about the just transition with action. On the North sea, what the industry, the investors, the workforce and our journey to net zero require is certainty. He obviously cannot comment on Rosebank and Jackdaw, and so cannot provide the answer that I think we all know is ultimately coming, but can he give us some certainty on when he expects the Government to issue the updated environmental guidance?

I will not be drawn on the applications in this case, but I agree with my hon. Friend’s broader point about the important leadership role for the UK in building the green industries of the future, and on climate change. At COP29, my right hon. Friend the Secretary of State for Energy Security and Net Zero communicated the importance of leadership on this most pressing issue, and of seeing it not as a future threat, but as a present reality. The UK has an important leadership role to play and, critically, can help deliver the industrial future that we need and the clean power of the future.

The Minister will be aware that fuel in Northern Ireland is exceptionally costly, and the rise of all other costs of living is leading to businesses finding it difficult to keep their head above water, let alone turn a profit. The cost of energy is sewn into every facet of business and home life. How will the Minister ensure that the vast resources that we have at our fingertips are utilised? Does he acknowledge that while renewable energy is something to work on, we need energy now? Consent must be considered quickly, and the correct decision must be made on behalf of every home and business in the United Kingdom of Great Britian and Northern Ireland.

In terms of the tone of the debate, the Government and the Opposition will of course disagree on many things—by the sounds of it, we increasingly disagree on the importance of tackling climate change and net zero—but generally we all want to see a transition in the North sea that is fair and prosperous, particularly for the workers in that industry, to ensure that they have confidence that they will have well-paid jobs to go into. I spend every day in this job taking that incredibly seriously, and whatever disagreements we might have across the Dispatch Box, I hope that is understood. We want to build a transition that recognises that it is already under way, that thousands of jobs have been lost and that it is our duty and responsibility as a Government to ensure that we put in place the industry and jobs that come next. That is what I will spend every day doing while I am privileged to have this job.

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