(1 day, 5 hours ago)
Lords ChamberMy Lords, I congratulate the Minister on his recent appointment and welcome him to the Front Bench. The Secretary of State in the other place is fond of talking of the United Kingdom as a trailblazer. As the shadow Secretary of State in the other place outlined, we are—but for all the wrong reasons. We are the first country to voluntarily close down our own domestic energy supply and to voluntarily hike our own energy bills. We are not an example to the world: we are a warning.
Since the COP summit, it seems that the department has started to come to its senses. Monday’s termination of a liquified natural gas project in Mozambique is a welcome step. It was a typically green initiative with a well-meaning façade that was, in practice, damaging, as LNG gas emits four times more carbon than the North Sea off our very shores. These overseas initiatives are used to prop up a narrative of reduced emissions while simultaneously causing more harm to the natural world, and they encompass a whole one-third of our energy system.
Sadly, the Secretary of State’s Statement demonstrates that he has not returned from Brazil enlightened and that the department is still bound by his damaging ideology. He cites three achievements that he came back with from the summit. The first was the commitment to continue cutting global emissions towards net zero, which he said needed to be achieved by 2050. It should be noted that the Statement also acknowledged that the UK accounts for just under 1% of global emissions. That number has in fact halved in the past 20 years. Does the Minister not agree that this proves that the United Kingdom has already played its part in the net-zero drive?
Unfortunately, this COP 30 achievement will undoubtedly now be used to justify the continuation of his campaign to wreak utter havoc on the North Sea industry. The tired old clichés of a declining basin will be the response of the Government, and we have come to expect this narrative. But let us examine the human cost: 1,000 jobs per month, companies drawing back from investing and energy bills spiralling. I draw noble Lords’ attention to north of the border, where the Government are responsible for destroying what remains of Scotland’s industrial base. Alexander Dennis, Mossmorran, Grangemouth: going, going, gone. Is it time to accept that we need to face the root cause of this deindustrialisation, namely high energy costs and the effects of government green diktats?
The second achievement that the Secretary of State trumpets is a commission to reduce emissions through working with the finance industry. Again, this achievement will not benefit the British people. Investment will not be channelled into reducing bills. The Government’s team returned from Brazil with a pledge to scale up funding for developing countries to $1.3 trillion. It is internationalism at the expense of the British people.
The Statement mentioned nothing of the £60 billion investment required to build energy infrastructure in our own country to meet the Government’s artificially hastened 2030 net-zero target for the electricity grid, and nothing of the £3 billion annual government policy cost to turn off the wind farms.
There was nothing on the investment desperately needed in our nuclear sector. Cutting emissions is a noble aim, but the Government are undertaking it in a haphazard and ideologically blinkered manner, all to the detriment of the British people.
Thirdly, there is the announcement of not one but two road maps: one to cut fossil fuels and one to cut deforestation. The Government already have a road map to cut fossil fuels. In fact, John Fingleton’s nuclear report was published last Monday. The Government seemed to have accepted the recommendations on Monday, but let us see if that translates into a policy U-turn. Will the Minister outline to the House the timetable for the implementation of the Fingleton recommendations in legislative terms?
I offer the same argument for the deforestation road map. One of the primary drivers of nature depletion in the UK is a sprawl of solar and wind farms across our countryside. If the Government want to put a halt to deforestation, it could begin at home. This unfortunately means moving away from the endless expansion of solar. The Government cannot have it both ways. Once again, they need to build more nuclear.
This summit and the Secretary of State’s Statement will, unfortunately, do nothing to help British people with the exorbitant cost of energy, where our industrial energy prices are seven times those of China and four times those of the US. Even if wholesale energy prices halve in the next five years, electricity bills will still be £200 higher per household. That is the direct cost of government policy. No number of multilateral commitments will ease that burden. Only a radically different approach to energy and a comprehensive plan for cheap energy will take us forward.
My Lords, I start by welcoming the Minister, the noble Lord, Lord Whitehead. I pay tribute to his experience and look forward to working opposite him going forward.
COP is 30 years old and multilateralism, as frustrating as it can be, remains the only practical means of protecting our shared home, planet Earth, and progressing our joint efforts to ensure the survival of future human generations. Here in the UK, the Met Office’s State of the UK Climate in 2024 report confirmed that the UK is warming at approximately 0.25 degrees per decade, with the past three years ranking among the five warmest since records began in 1884. While some continue to deny the existence of climate change, last year in the UK we had the worst-ever wildfire season and the second-worst harvest on record.
Our world is warming faster than we can change our carbon-based ways, and even more extreme weather is inevitable. I thank Brazil, the Secretary of State, the UK negotiating team and all those who worked tirelessly to keep the COP process alive. It is testimony to global co-operation that, despite the challenges, 194 parties united to adopt the text, confirming that the global transition towards low emissions and climate-resilient development is irreversible.
It is important to acknowledge that collective progress since the Paris Agreement has bent the emissions curve, moving projected warming from over 4 degrees Celsius to the 2.3 to 2.5 degrees Celsius range. However, we cannot celebrate incremental progress when the future of our planet remains in jeopardy.
The final text acknowledged that the collective progress is
“not sufficient to achieve the temperature goal”
and that the carbon budget consistent with limiting warming to 1.5 degrees Celsius is now small and being rapidly depleted. The COP text acknowledges that there is likely to be an “overshoot” of the 1.5 degrees Celsius, the extent and duration of which we must work collectively to limit. This is a stark warning and my concern is that Governments have failed to grasp the urgency of the climate emergency.
Any delay in action will push millions of vulnerable people further into poverty and lead to climate breakdown. Urgency must be met with decisive global leadership, yet the UK Government’s commitment to this leadership has been undermined by a lack of financial support. While the negotiations resulted in ambitious financial targets, such as the call to scale up financing to at least $1.3 trillion per year by 2025 and the reward target to scale up and at least triple adaptation finance by 2035, the UK’s financial contributions failed to materialise.
The UK was acknowledged for working with Brazil to help it develop the pioneering Tropical Forest Forever Facility. This vital fund aims to prevent deforestation, yet while that fund secured $9.5 billion in commitments and was endorsed by 53 countries, the UK Government did not contribute. I note that the Secretary of State said in the other place:
“We have not ruled out contributing to investing in the TFFF in future”.—[Official Report, Commons, 25/11/25; col. 247.]
We hope this is the case. Will the Minister say what non-financial contributions the Government are able to make?
We remain concerned about the UK’s official development assistance and the cuts to those programmes. They are vital programmes helping those on the front line of climate change to adapt. Global leadership could see the UK as part of the chair of the Climate and Clean Air Coalition, working alongside Brazil, and using remote monitoring to help detect methane leaks and using our world-leading oil and gas expertise to help fix them.
The Government rightly acknowledge that the transition away from fossil fuels is critical, and that it was
“the hardest sticking point in the talks”.—[Official Report, Commons, 25/11/25; col. 241.]
Despite a broad coalition of 83 countries backing a road map away from fossil fuels, the final text tragically contained no explicit reference to the phase-out. At home, we welcome the commitment to no new oil exploration in the North Sea. More must be done to bring about energy market reforms, reduce energy bills and insulate our homes urgently. Many parliamentarians, including me, attended the National Emergency Briefing on the climate and nature crisis last week, which called for an emergency-style Marshall plan. I call on the Government to engage with and take heed of these calls for urgent, sustained action.
My Lords, the climate crisis is the greatest long-term challenge we face, but, equally, the transition to clean energy is the greatest economic opportunity of our time. Emissions from energy being some 70% of emissions overall means that the path to clean energy is an essential part of tackling the climate crisis, not just in the UK but across the world. At home, our commitment to clean energy is about energy security, lower bills and good jobs. Globally, with the UK responsible for just 1% of emissions, working with other nations is the only way to protect our way of life and seize the opportunities of a green economy.
We are reflecting today on the outcomes of the COP 30 conference in Belém. More than 190 countries met in Belém, where the Brazilian-framed COP 30 focused on implementation. The UK worked with Brazil and partners to put forests at the heart of the agenda and supported global coalitions to cut methane, phase out coal and accelerate clean energy investment. The negotiations were tough, but progress was made on three critical fronts, and they will be reflected in some of the further questions that I think will follow from the Statement this evening.
The first goal is keeping 1.5 degrees Celsius within reach. Countries reaffirmed their commitment to 1.5 degrees Celsius global net zero by mid-century and encouraged countries to raise their targets where needed to support this. As the noble Earl, Lord Russell, underlined, we are quite a way from that, and some of the more faint-hearted among us may think that it is a target we cannot reach now. I accept that it is very difficult, but the signs are good that there are some possibilities to moving further towards making that target achievable, such as new commitments from China, for example, in its NDC coming into the COP at this stage. China has pledged to cut its emissions significantly for the first time. Indeed, 120 countries so far have come forward with 2035 NDC, with large numbers coming up in the next year, including India, which is an important actor in this realm.
Secondly, there is finance for developing nations, building on the COP 29 pledge to mobilise $300 billion annually and scale towards $1.3 trillion from all sources. COP 30 agreed to pursue efforts to treble adaptation finance by 2035 within the climate finance goal agreed last year, ensuring that vulnerable nations have the resilience they need. The UK was active in that area.
Thirdly, and I do not think that the noble Lord, Lord Offord, is going to like this very much, there is the transition away from fossil fuels. While a universal road map could not be agreed, 83 countries and 140 organisations endorsed the concept that Brazil will launch road maps on fossil fuels and deforestation, showing that coalitions of the willing can drive progress even where unanimity is elusive. The UK very much welcomed that coalition of the willing and will work closely with the Brazilians to move that commitment forward, even though it was not the final communiqué as far as the COP itself was concerned.
The mutirão agreement advanced carbon markets, gender, technology, technology transfer and transparency. Importantly, more than 190 countries reaffirmed their commitment to the Paris Agreement and multilateral action. That is essential right now as far as the crisis we are in is concerned.
I shall now briefly answer some of the points raised by noble Lords this evening. Perhaps before I do that, I could just express, as a newcomer to this place, my extreme disappointment—almost distress—about the abrupt turn that the party opposite has taken on its commitments on climate change and all that is associated with it. I certainly recollect in my time in the other place working closely with many thoroughly dedicated Members on the Conservative side in bringing forward what Britain was going to do about climate change and how we would go forward together to achieve those goals. Indeed, I was a member of the committee that brought in the net-zero target as far as UK emissions are concerned. Noble Lords will recall that that was when the noble Baroness, Lady May, was Prime Minister. Indeed, she is one of the noble Lords who have, in effect, denounced this pivot away from action and support for net zero as a target for the UK and serious action on climate change. I am afraid that the contribution of the noble Lord, Lord Offord, thoroughly reflected that pivot and simply did not address the issues at COP and what we need to do together as far as those issues are concerned.
The Government’s commitment on North Sea gas and net zero is clear. Our commitment to clean energy is about delivering energy security, lower bills and good jobs—400,000 new clean energy jobs by 2030. So this is not a threat but an opportunity as far as a low-carbon future is concerned. Indeed, Putin’s invasion of Ukraine illustrates the cost of relying on fossil fuels. Globally, twice as much is now invested in clean energy as in fossil fuels. Globally, renewables have this year overtaken coal as the largest source of electricity. The economics have shifted and the direction of travel is clear, and it is distressing to hear the party opposite going in precisely the opposite direction. I hope that wisdom will prevail in the longer term and that we will be back together with a consensus on where we go on climate change in the future.
I also remind the noble Lord, Lord Offord, that on nuclear the Government have committed £63 billion in capital funding for clean energy, climate and nature, including nuclear, putting the UK on a path to clean power by 2030, bringing bills down in the long term, creating thousands of good jobs for our country and tackling the climate change crisis.
In relation to the comments made by the noble Earl, Lord Russell, on 1.5 degrees, as I have mentioned, we need great ambition—of course we do—but we should also recognise the progress that has been made since the Paris Agreement. The final text agreed on action to take in the form of the Belém Mission to 1.5 and the Global Implementation Accelerator, as well as countries’ commitments to net zero that can be built on. In respect of Brazil’s new fund for forests, the UK has played a big role in helping to support Brazil to design the TFFF. We have a difficult fiscal situation in this country. We have absolutely not ruled out—I stress that—contributing to it in the future. We are determined that the fund succeeds and will continue to work with Brazil to help ensure that it does.
The message from Belém is clear: clean energy and climate action are the foundations on which the global economy is being rebuilt. They are good for Britain because they deliver jobs, investment and energy security. They lower bills for families and businesses, and they are the only way to protect future generations from the threat of climate breakdown.
My Lords, I join other noble Lords in welcoming the new Minister to your Lordships’ House and to his role, and welcome particularly his response to the noble Lord, Lord Offord.
Central Hall Westminster on the morning of 27 November was very crowded. I did not see the Minister there and I appreciate that he had many other things to be doing at the time, but that of course was when the National Emergency Briefing to which the noble Earl, Lord Russell, referred was being held, when 10 of the UK’s leading scientific experts spoke to the packed hall, addressing our interrelated climate and nature emergency. Given the, I am afraid, limited outcome of COP, particularly in the failure unanimously to agree the road map on transitioning away from fossil fuels, those experts asked for a televised emergency briefing to the nation to explain to the country the urgency of the crisis that we face. Are the Government prepared to support that call and act on it? What else are the Government planning to do to highlight the reality of the emergency situation we are now in, as demonstrated by the dreadful floods in Asia—Sri Lanka, Indonesia and Thailand—where the death toll is already more than 1,400?
The noble Baroness is quite right that we are seeing in front of us right now all the things that the scientists said were going to happen. They have been proved absolutely right. So the first thing we need to do is stick to the science, make sure that whatever we do is in line with the science and explain that science to the country in a very clear way: if we do not do these various things, we can already see the results of inaction in front of us. While I cannot commit this evening to a national televised discussion on how we go forward, what I can commit to is the continuation of the attempt by this Government to explain very clearly what they are doing, for example, on clean energy and why that is absolutely essential to keeping our hopes of 1.5 degrees open and making sure that as a result of that—for the episodes that we are now seeing, a lot of this is baked in, obviously, to the climate warming we have already—there is the possibility of a better, safer, cleaner and more prosperous world in the future.
The Lord Bishop of Norwich
My Lords, I thank the Minister for his comments. I pay tribute to Secretary of State Miliband for his sheer commitment working towards COP 30—building, let us not forget, on the work that the previous Government achieved, led particularly by the noble Lords, Lord Sharma and Lord Goldsmith. Those were Conservative commitments.
However, I note that in the language around coal and fossil fuels at successive COPs, there has been a great weakening, from the “phasing out” of Glasgow through “phasing down” to “transitioning away” and now to a weak plan and pathway. It was St Basil the Great who spoke about us always having two different paths,
“one broad and easy, the other hard and narrow”,
and that within our minds we are always working out which path to take. Basil said:
“The soul is confused and dithers in its calculations. It prefers pleasure when it is looking at the present; it chooses virtue when its eye is on eternity”.
If we are serious about keeping global warming to 1.5 degrees—an immense task in itself—does the Minister agree that we need to use bold language in the UK to show global leadership and to press those who have walked away from the Paris Agreement to follow the path of virtue?
I thank the right reverend Prelate for that question, which I very substantially agree with and find very little to disagree with. It is essential that we use bold language in moving forward as far as this crisis is concerned, and it is essential that globally we stick to what we have said at successive COPs—and I accept that some of the wording has been weakened over successive COPs—on moving away from fossil fuels and bringing in clean low-carbon power. It is fair to say that the UK has used bold language on this and continues to pursue policies which indicate the practical aspects of that bold language as far as the UK’s commitment is concerned. We were disappointed and would like to have gone further as far as the language and commitments of COP 30 were concerned, but I remind noble Lords that there was this commitment by 80 nations to pursue moving away from fossil fuels, and a great deal of activity from the Brazilians following on from COP 30. All is not lost in this activity, and I look forward to that being considerably strengthened and taken forward as we move from this COP to the next COP.
Does the Minister agree that the way to increase energy bills is to go on with fossil fuels, which are the most expensive, and that the idea that we get cheaper energy by extracting more fossil fuels from the North Sea when we would be paying the international price for them is not sensible? Does he also agree that if Britain does not keep to this excellent policy, produced by Conservative Governments again and again, and supported by the Labour Party and the Liberal Democrats, we cannot ask anybody else to do it? Would it not be the very worst thing for the British people to make global warming worse so that we have a climate in which we cannot live properly? Is it not the shortest of views not to recognise that we have to move as rapidly as possible to protect our children and grandchildren? Is it not about time we grew up and learnt the realities of life?
As on so many other occasions, I cannot find myself disagreeing with a single word the noble Lord, Lord Deben, says on this subject. I have been, frankly, in awe of his commitment and clarity on this issue over many years as chair of the Climate Change Committee. Indeed, we have spoken on a number of joint platforms with precisely this view in mind. The only thing I would add is to remind noble Lords that the recent fuel price crisis was a fossil fuel crisis of the volatility of global gas prices and it exposed the extent we are in hock to fossil fuels in a way that we would not be if we had a much lower portion of fossil fuels in our economy—preferably none at all. We would have a much more stable energy economy and a great deal of new investment and jobs to go with it.
Lord Rees of Easton (Lab)
My Lords, I am often dismayed at opposition to taking action on climate change, not simply out of a point of principle but because I am one of a number of mayors—well, I am a former mayor—around the world who have been urging national Governments and multinational organisations to create the conditions in which we can take action on climate change. I have just come back from the C40 World Mayors Summit in Rio—250 to 300 mayors getting together before COP because they were concerned that COP would not deliver the impetus for the scale and pace of change that we need. Those mayors are saying that they want to take action on climate change, not simply out of abstract principle but because, first, they see the huge economic opportunity in it and, secondly, they see the opportunity to avoid huge future costs—the impact of climate change on our physical infrastructure and cities being on the receiving end of the consequences of climate change; for example, migration. They are doing it not because they think it is just a nice thing to do; in the UK, from Bristol to Glasgow to Brighton, cities across this country are taking action.
In terms of bringing a question and a challenge, something missing from the Statement was cities. We have been making the case that, on the sheer math, 55% of the world’s population now lives in cities—it will be two-thirds by 2050—and we need to move to delivery, not just statements and, dare I say, not just language. What can we do to elevate the voice of cities and make them a formal part of climate negotiation processes?
My noble friend Lord Rees has a tremendous record of taking action on global warming and low-carbon economies in his own city of Bristol. The question of how cities bring to bear the enormous potential of their action alongside Governments nationally and internationally has long been recognised in terms of the Curitiba commitment and other things, where cities across the world have banded together to take local and sub-national action alongside national and international action. My recipe for this continuing is to encourage UK cities to take part in those international joint city arrangements and become partners in global green gas carbon emissions reductions, which can take place at all levels. COPs have increasingly recognised that and have enabled cities to play a much greater role in discussions as those COPs progress.
If the noble Lord, Lord Rees, my noble friend Lord Deben and the Secretary of State are right that the cost of renewables is on a declining curve and already cheaper than fossil fuel alternatives, that will be a wonderful thing, but can the Minister explain why, if they are cheaper, we need to guarantee for 20 years a price in real terms for renewables backed up by subsidies in the shape of state-financed back-up power for when renewables are not producing and therefore cannot compete with fossil fuels?
It is because the model of how renewables develop is precisely the opposite of how fossil fuels develop. They are very capital-intensive and, after that, the power that comes from them is, in essence, free. Therefore, we need to establish, through capital support in particular, those renewable arrangements which can give us in perpetuity that cheap power for the future. These things in essence are not subsidies; they are investments in how that power reaches us for the future. I am sure, as the noble Lord, Lord Lilley, and I have had debates in the other place, that this discussion will continue, but I very much stand by my view—and accept he stands by his view—that non-fossil fuel power is inevitably going to be cheaper, more secure and more reliable than the fossil fuel economy we have at the moment.
My Lords, since there is time, I very much appreciated the tone and the energy of the Minister’s response to my initial question, but that, and all our discussion, very much focused on the energy side of tackling the climate emergency. I hope the Minister will agree that, as was stressed at the National Emergency Briefing, the climate emergency and nature crisis are intimately interlinked. At that briefing, Professor Nathalie Seddon, professor of biodiversity at the University of Oxford and founder of the Nature-based Solutions Initiative there, spoke about the incredibly parlous state of nature in the UK and the impact that is having on human health as well as on the climate. Can the Minister reassure me that the Government really are focused on and understand that interlinkage between nature and climate?
Indeed. At COP 30, the essential integration of nature and climate change was emphasised both in the communique at the end and during discussions. I can assure the noble Baroness that the UK Government are absolutely alive to this. In terms of investment in nature funds, we have shown practically that we are willing to, as it were, put our money where our mouth is and make sure that we are full players in the international integration of nature and climate change action.
I still did not understand the answer from the Minister. If renewables are cheaper, why do they need a subsidy and a guaranteed price, just because they need a lot of capital up front? The same is true of most industries and it is simply not a convincing reply.
As the noble Lord will know, these underwritings are not permanent.
They are usually for 15 years, which means that a renewable development that is subject to that underwriting has, at the end of 15 years, a fully amortised and free energy solution for the future. Therefore, it is tremendously good long-term value, as far as that energy supply is concerned, to have that initial undertaking, which reduces and goes down to zero after that 15-year period.
Would the Minister remind my noble friend that this was precisely the reason why the Conservatives invented this system at the time? It was done because we have a present system of very large companies, with a great deal of money, pushing fossil fuels all the time. If you are going to replace that, you have to provide an alternative. That is what was done, it is what the Conservative Governments continued to do, and what the present Government absolutely properly have continued.
Indeed, and the noble Lord will recall that the previous system of renewable obligations was a continued underwriting, whereas the CfDs we now have are an investment reducing over time, leading to the implementation of secure long-term supplies of renewable energy. I am happy to pay tribute to the then Conservative Government for effectively inventing CfDs, which were a tremendous step forward from the previous arrangements. Among other things, they have certainly secured the enormous increase in wind and other forms of renewables that have come forward as a result. If only the Conservative Government had not banned onshore wind last time, we would be even further forward.