The Exchequer Secretary to the Treasury (Mr Simon Clarke)

The Government take our environmental responsibilities very seriously, and the Prime Minister established the new Cabinet Committee on Climate Change for that very reason. The UK is, of course, the G20 leader in reducing our greenhouse gas emissions while growing our economy. Later this year, the Government will set out further plans to reduce emissions in key sectors such as transport, energy and building while seizing the economic benefits of clean growth. We have launched a review into the transition to a net zero economy and how that will be funded, and the review will publish its findings this autumn.

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Mr Clarke

The electorate obviously gave their verdict on the relative credibility of our manifesto. This Chamber, on a cross-party basis, should welcome the real consensus that the UK has done the right thing by becoming the first major western economy to commit to a net zero policy. We have allocated £1 billion for the take-up of ultra low emission vehicles, £350 million for the industrial energy transition fund and £800 million in our manifesto for carbon capture and storage.

The hon. Lady says our ambitions in this area are inadequate, but the Committee on Climate Change report of May 2019 did not consider it credible to reach net zero emissions earlier than 2050. The report called it the “highest possible ambition” supported by the science for us to target 2050 rather than an earlier date.

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Helen Hayes (Labour)

The UK Government currently offer more financial support than any other European state for fossil fuel industries. The oil giant Shell paid no corporate income tax last year due to tax rebates, despite making a £557 million profit in the UK. This situation is unsustainable and unacceptable in the context of a climate emergency. Can the Minister explain how a Government who continue to subsidise fossil fuel extraction to such a degree can ever be trusted to deliver net zero?

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Mr Clarke

The most important thing to recognise is that last year was the first year on record in which renewable energy constituted more of our energy mix than fossil fuels. We also need to recognise that oil and gas support many thousands of jobs in the United Kingdom, and we must be careful not to jeopardise economic growth during the transition.

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Mr Clarke

I thank my right hon. Friend for that question. It is worth noting that between 1990 and 2016 the UK reduced its greenhouse gas emissions by 42% while growing its economy by more than two thirds. We should be proud of that record; it shows that we are on track to meet our targets.

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Clive Lewis (Labour)

For what have been described as a “post-truth” Government, here are two clear and simple facts: first, COP 26 is coming to the UK and, secondly, the eyes of the world will be on this Government’s climate crisis policies—or, rather, the appalling lack of them. As Australia burns, millions in African states face climate-driven famine and floods have swept the north of England, will this Government give a damn about this existential threat and act, not posture?

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Mr Clarke

It must be said that that was a rather ungracious recognition of the Government’s work in this area. We are clear that COP 26 is the centrepiece of the Government’s work on climate this year; the Prime Minister gave a presentation to Cabinet on it today. There is no question but that, led by our former Friend on these Benches Claire Perry, we have an excellent head of the COP, and we will have maximum ambition. The UK is clear that we are committed to the Paris agreement and delivering on it in full, and by committing to net zero we have led the world in this area.

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Mr Clarke

My hon. Friend is absolutely right to say that we must avoid shedding jobs as we change our energy mix. As I mentioned in an earlier answer, we got £350 million allocated to the industrial energy transformation fund. I am also a big supporter of new technologies such as carbon capture and storage, which can address the challenges of decarbonising energy-intensive industries.

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Ed Davey (Liberal Democrat)

Happy new year, Mr Speaker. May I associate myself and my colleagues with your remarks of support for the people of Australia? In that regard, may I ask the Treasury Front-Bench team whether this March’s Budget will be a Budget for the climate emergency? If it is, will Ministers look at the ideas of the outgoing Governor of the Bank of England to decarbonise finance and green the City and come forward with the rules and regulations that will catalyse private investment to beat climate change?

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Nickie Aiken (Cities of London and Westminster) (Con)

13. What fiscal steps he is taking to ensure that the Government meet their target of net zero emissions by 2050. ( 900050 )

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The Exchequer Secretary to the Treasury (Mr Simon Clarke)

It is a great pleasure to welcome my hon. Friend to her place. The clean growth strategy sets out our proposals to decarbonise our economy during the 2020s. This will build on existing Government spending, including £2.5 billion for low-carbon innovation between 2015 and 2021, £1 billion for ultra low emission vehicles and £4.5 billion for the renewable heat incentive.

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Alan Brown (Kilmarnock and Loudoun) (SNP)

As always, the Scottish Government are ahead of the UK Government when it comes to climate change and taking steps to tackle this. The Minister rightly acknowledged that the UK Government have to do a lot more. Does he agree that they need to take away the subsidies to nuclear and actually reinvest in onshore wind in Scotland, and allow greater offshore deployment as well?

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Mr Clarke

The whole United Kingdom needs to work together to make sure that we deliver on our climate goals. We clearly need a diverse energy mix to help to deliver on that, and nuclear has a clear role to play within that settlement. We are very clear that we obviously monitor all projects to make sure they deliver maximum value for money, but we do need some baseload power.

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