(4Â weeks, 1Â day ago)
Lords Chamber
Baroness Curran (Lab)
I thank the noble Earl for that question and for his welcome, and I pay tribute to his work on this issue in the House. Again, I have learned a great deal and will continue to do so from listening to his speeches. I recognise and appreciate the point being made about the Rosebank and Jackdaw decisions. I recognise the interest in them, but I cannot be drawn on that.
On his wider point, the noble Earl is right about the Onward report, the general disappointment people feel at the breaking of the consensus we have seen from the Conservative Party over recent months, and how significant that is. He will know that climate scientists and energy industry bodies have overwhelmingly challenged the report’s methodology and logic as applied to grid and infrastructure costs, and how it has costed the high volatility of gas along with its political and economic costs.
My Lords, I wonder whether my noble friend would confirm that under the Conservatives, production in the North Sea reduced by half between 2010 and 2024—which is no surprise because it is a super-mature basin—and that giving consent to these two oilfields, which I know my noble friend cannot comment on at the moment, would have a minimal effect either on achieving net zero targets or on prices. The reality is that what the Government need to do, whatever the decision on these oilfields, is stick to the policy of going as fast as possible towards clean energy.
Baroness Curran (Lab)
I thank my noble friend for that question. I pay tribute to the work he has done in this field and to the very significant contribution he made as a Minister, particularly within the nuclear field. I cannot be drawn on the points he raises but I can assure him that the North Sea and oil and gas will play a vital role in our energy mix for years to come. He noted that under the Conservatives, by the end of 2016 more than 120,000 UK oil and gas jobs had gone. It is a changing basin, but we see it as part of the mix. We understand that the North Sea not only has an oil and gas sector but can play a vital role in a clean energy economy. That will make an enormous contribution not only to the north-east of Scotland but to the wider UK economy.
(2Â months, 2Â weeks ago)
Lords ChamberAs far as whistleblowing is concerned, I can speak only to this particular episode, but I point to the Government’s response—or, rather, the response of NESO and other bodies—in developing very rapidly a forum in which whistleblowers can confidentially and without any concerns about their own future or safety participate in an inquiry into what has taken place. Indeed, the separation of that inquiry from senior management underlines how seriously the Government take this issue but also how they wish to make sure that whistleblowers are given the proper protection and status that their concerns merit.
My Lords, first, in welcoming my noble friend’s response, can he confirm that there was no loss of supply to customers on the occasion of the incidents referred to? Secondly, in response to the question from the noble Lord, Lord Moynihan, in which he attacked the Government’s investment in wind and solar, will the Minster reflect on the national security assessment published earlier this year? That report stated:
“Global ecosystem degradation and collapse threaten UK national security and prosperity”.
Does that not make it so much more important that we continue with the decarbonisation of our energy supply?
Yes, that does make it very important that we continue decarbonising our energy systems to make sure that they are very resilient in a different climate that we will have in the future, and that the consequences of, for example, continuing to provide energy via high-carbon fossil fuels are countered by the systems being thoroughly low-carbon in the future. This has a bearing on the recent episodes as far as energy margin notices are concerned. We have had a period of extreme heat in the UK that is very likely the consequence of climate change, and this has produced some system resilience issues. However, the system was easily resilient enough to cope with that particular issue: there were no blackouts, there was no loss of power for customers or industry, and the stability of the system was maintained at around the 50 hertz mark at all times.
(3Â months, 1Â week ago)
Lords ChamberMy Lords, it is a pleasure to follow the right reverend Prelate. Like the noble Lord, Lord Teverson, I very much welcome the regulations themselves; they have been a long time coming, but it is good that we are now including aviation and maritime within the sixth carbon budget. It is going to be challenging, and I certainly understand the need for flexibility in methodology. The Committee on Climate Change has set out some of the challenges we are going to face, but that we should do it I am absolutely convinced.
This debate follows last week’s rather dispiriting debate, when the Conservative Opposition essentially turned their back on net zero and on any concern about climate change. In criticising the Government last week, the noble Baroness and the noble Lord, Lord Moynihan, said nothing about the impact of climate change and nothing about what they would do in relation to net zero.
The Commons debated last week’s and this week’s SIs together, and I read the debate. The shadow Energy Secretary, Claire Coutinho, made not one mention of what the Conservatives would do to mitigate or adapt to climate change. Instead, her sole response was to get rid of carbon tax and repeal the Climate Change Act—as noble Lords here will know, we were the first country to establish a long-term, legally binding framework. Are the Conservatives really serious about wanting to axe this landmark piece of legislation? In 2019, they beefed it up with commitments on net zero under the noble Baroness, Lady May, and the last Conservative Prime Minister stated that energy transition and net zero were among the greatest opportunities facing this country.
We come back to the issue of economic growth. I thought that the noble Baroness, Lady Jones, was absolutely right: the real catastrophe to prosperity and economic growth is climate change, not the actions we are taking to try to mitigate and adapt to them. Noble Lords will have read the CBI report that came out a couple of weeks ago, looking at the green economy. It is massive. It is one of the only sectors which is really growing in this country, and we can add aviation and maritime to that. We now have a £105 billion net zero sector and 1.1 million full-time equivalent jobs—and they are good-quality jobs as well.
The issue of other countries taking advantage of the UK taking leadership is absolute nonsense. There is huge advantage to the UK in being a key player in a net-zero economy. We know from the work of the International Energy Agency that actually, despite what some leaders say, many countries are speeding on with a transition to net zero. We need to be part of that, and aviation and maritime need to be part of that. So I very much support the statutory instrument. Tonight, we are seeing that, around the House, there is a strong consensus in favour of dealing with climate change and moving to net zero as fast as we can.
(3Â months, 1Â week ago)
Lords ChamberMy Lords, this has been a very interesting debate so far. I thank my noble friend for his very detailed explanation of the order before us. I am not sure that we are spending much time on the detail of the order, as he requested, and we are clearly turning this into a debate about net zero and climate change. Although the noble Lord, Lord Moynihan, acknowledged climate change, I must say that, as the noble Lord, Lord Deben, said, it is very difficult to square what is being said tonight by Members of the party opposite—and, I suspect, by rather a few more of them as the debate ensues—with what the Conservative Government did. After all, it was the Conservative Government who legislated for net zero. I know that the noble Lord, Lord Redwood, did not vote for it, but it was their responsibility. They signed the Paris Agreement. The Sunak Government made a bold statement that
“energy transition and net zero are among the greatest opportunities facing this country”,
as indeed they are. We may hear a little bit about North Sea oil and gas, as the party opposite now seems obsessed with that. It is worth pointing out that, between 2010 and 2024, production in the North Sea halved under the Conservative Government’s stewardship.
I come back to the pertinent point made by the noble Lord, Lord Deben. Both the noble Lord, Lord Moynihan, and the noble Lord, Lord Redwood, have criticised carbon budgets and the whole net-zero approach by the Government, but what is the alternative? It is rare now for members of the Conservative Party to say that they do not believe in climate change, but it is almost, as St Augustine said, “Oh Lord, deliver us from sin, but not yet”—“We will tackle climate change at some point in the future, but let us carry on with our obsession with oil and gas”.
I turn to business. The noble Lord, Lord Deben, referred to the CBI report, but this is one of the most thriving sectors of our economy. In fact, looking at the last year of the Conservative Government, it was the one sector that actually gave us some growth in the economy, yet they want to snap it off, whereas our competitors have seen that the impact of the green/net-zero economy can be profoundly changing and progressive and give so many opportunities to people. The CBI report says that the net-zero economy now supports 1.1 million full-time equivalent jobs—and they are good jobs, jobs that our young people can go into.
On China and the international experience, we are lectured that, somehow, by going into a leadership role in relation to decarbonisation, we are letting other countries take great advantage. If noble Lords look at the reports of the International Energy Agency, particularly its 2025 report on renewables, they will see that there is a huge advance in the use of low-carbon energies globally. China currently accounts for 60% of global renewable capacity growth. It is going to meet its targets way ahead of schedule, in 2035. I agree with the noble Lord, Lord Deben: it tends to set conservative targets and then meet them much more quickly, so to talk about China as if it is simply carrying on with oil, gas and coal is misleading.
The North Sea, if I can just end on that, has been a tremendous asset to our country. If only we had set up a sovereign wealth fund to invest in our infrastructure, like Norway did, I think we would be in a much better condition. The people working there are brilliant people, but if noble Lords look at the North Sea Transition Authority’s estimates, it reckons that only around 10% of the basin’s historic output could be recovered in the future. Analysis by the University of Oxford’s Smith School, using pre-crisis price data, suggests that households powered fully by renewable energy could save up to £441 per year on energy bills. By comparison, maximising North Sea oil and gas extraction was estimated to reduce household costs by around £16 to £82 per year. As we know, increasing UK production—and it would be a marginal increase in UK production—would not directly reduce prices, because we do not influence global prices and we buy on the global market.
I also point out that the Conservative Government, over 14 years, issued many licences for expropriation and extraction in the North Sea. That actually led to only 20 developments, which, I understand, would produce the equivalent of just 36 days of extra gas. So the challenge for the party opposite, it seems to me, is to stop running down the approach and the consensus that we have on net zero, and if it is opposed to it, it should come up with some suggestions about how we might go forward.
(6Â months, 3Â weeks ago)
Lords ChamberI may have to write to the noble Viscount on aspects of that question that I am not fully sighted on. If he is referring to the Fingleton review, for example, then a great deal of work is being undertaken on that. Part of the issue with that review is how it translates itself into legislation for the future, and that is being fully considered. However, I assure the noble Viscount that that is not a particular cause of delays; it is a question of getting it right and making sure that what is in the review can properly inform the debate for the future.
My Lords, can we come back to the North Sea and the Opposition’s obsession with it? Can my noble friend confirm that between 2010 and 2024, production in the North Sea halved? It is a super-mature basin that, even if new licences were to be granted, would have a marginal impact. On the issue of gas being used to substitute for renewables when the wind is not blowing, would we not be in a much better position if the Opposition, when in government over 14 years, had actually managed to open one single nuclear power station?
My noble friend is right that the North Sea is not just a mature field but a very mature one. Indeed, as we are seeing, one of the opportunities for the North Sea is not so much getting oil out of the ground but putting carbon back into it, in terms of exhausted fields that are presently near their demise or thereabouts.
There is no magic wand that we can wave to suddenly produce lots of new oil and gas in the North Sea; we are talking about small pools, small fields and so on, if at all. The emphasis clearly has to be on making sure that production continues, not on ensuring that exploration—chasing a bit of a will-o’-the-wisp in terms of the field—is under way.
My noble friend is also right that the previous Government did indeed fail to produce a single nuclear power station during the entire time of their regime, whereas now we are on the cusp of making sure that small nuclear modular reactors are a thing of the future and that we have the sort of nuclear economy that is fit for a low-carbon economy—generally dispatchable, smaller, nimble and part of the energy economy.
(7Â months ago)
Lords ChamberWe do not have the announcement of carbon budget 7 until the summer. The noble Baroness might care to think about what the process of looking again at carbon budget 6 was after those legal judgments. Indeed, the Government have taken a much more robust approach to developing the plan, which has allowed us to make a much clearer and more rational assessment of the savings that will enable carbon budgets to be met and to quantify them fully.
We have also quantified a number of real-world trends that are rather important today, and which are shaping our society and economy. That means our assessment reflects how we would expect the world to change as we accelerate towards net zero. None of these things were done when the previous Administration set out carbon budget 6—indeed, they were part of the legal challenge to those budgets. That is the reason why we consider that carbon budget 6 can be met, in addition to which a number of new policies and directions have come forward since this new Government took office.
My Lords, if we are going to meet our carbon budgets, clearly, the challenge of getting low-carbon electricity generation as quickly as possible is crucial. The latest figures I have for Q2 2025 suggest that nuclear power was about 15.1% of electricity generation. How do you square that with the Greens’ manifesto, which says that they want to get rid of nuclear power in this country?
The continued presence of nuclear power as a low-carbon power source is, and will be, an integral part of carbon budget 6 being met. It would be very difficult to catch up with those carbon budget 6 figures without nuclear power. It will come and go a little bit, in terms of retirements of nuclear power stations by the mid-2030s and new nuclear power stations coming online, but it will come back to at least that 15% figure. It is very difficult to see how carbon budget 6 might easily be met without that power in place.
(8Â months, 2Â weeks ago)
Lords Chamber
Lord Vallance of Balham (Lab)
My noble friend is right that there are many different technologies coming along, and one of the reasons why we put the advanced nuclear framework together is to make it possible for all those technologies to have a pathway through to production in the UK. This is an important moment, when private-sector leadership of nuclear is real and can happen because of the new designs. We welcome all the different technologies as part of that framework, which, as I say, will be published shortly.
My Lords, perhaps in contrast to my noble friend, I congratulate the Government on the final investment decision on Sizewell C and the SMR programme by Rolls-Royce at Wylfa. This is the foundation for a fantastic new nuclear industry in the UK. But does he agree that in welcoming private-sector investment, we need to look at siting policy and making it more flexible, as the recent taskforce recommended?
Lord Vallance of Balham (Lab)
On the first part of my noble friend’s question, he should partially congratulate himself, because he was very involved in making that happen, and I join him in congratulating him. We have a very significant nuclear programme with SMRs coming along; and the Fingleton review and a series of other processes, including EN-7, which was laid on 18 December, make planning and other aspects much easier. Siting is very important. A siting review, by GBN, is going on at the moment, looking at potential sites for future gigawatt production as well; it will report in the autumn.
(8Â months, 3Â weeks ago)
Lords ChamberMy Lords, on behalf of my noble friend—and, I assume, with his consent— I beg leave to ask the Question standing in his name on the Order Paper.
I thank the noble Lord for the Question. I was so eager to answer that I was up before he asked it.
The Government recognise the essential role that local places, including cities, play in accelerating to net zero and taking climate action. The Government regularly engage with C40 cities and other interested non-governmental and civil society organisations on the international climate negotiations. This engagement helps to inform our negotiating mandate each year for the COP—the Conference of the Parties. The UNFCCC and the governing bodies comprise more than 190 states and the European Union, which are signatories to the respective treaties. As a multinational treaty body process, negotiations are therefore primarily among parties’ government representatives. In giving this Answer, I pay tribute to the immense work that the noble Lord, Lord Rees, has done in this area, in terms of cities within the UK and on an international basis.
My Lords, I endorse the Minister’s tribute to my noble friend Lord Rees. Does he agree that when it comes to countries such as the US, where the Administration have set their face against policies in relation to both mitigation and adaptation, the role of states, local authorities and businesses in flying the flag for determined progress in relation to climate change is vital and that, as a country, we should therefore engage as much as we can with local authorities in those countries because of the contribution they can make?
I heartily endorse that sentiment, particularly given that there are 14 US cities in the C40 group and over half of US states already have climate change commitments and net-zero mandates within their areas. We can see that even if the United States has decided at the federal level to take its bat home as far as climate change is concerned, there will still be a lot of work done at state and city level. As a country, we should engage fully with all those actors at the various levels of the United States administration.
(9Â months, 3Â weeks ago)
Grand CommitteeMy Lords, these technical regulations were laid before the
As set out in the Energy Act 2023, carbon storage licensees are responsible for complying with various obligations, including the reporting of information and samples obtained through the conduct of licensee authorities to the NSTA. We believe that the wealth of data that carbon storage licensees gather during exploration or storage activities is a national resource and its publication will accelerate the deployment of CCS in the UK. That is why we introduced the Oil and Gas Authority (Carbon Storage) (Retention of Information and Samples) Regulations 2025, which came into force in May 2025. These regulations specify the types of information and samples that carbon storage licensees must retain and the periods for which they must retain them.
The regulations we debate today set out when the NSTA can publicly disclose carbon storage information and samples provided to it by carbon storage licensees, and which types of information and samples may be disclosed. They also amend when the NSTA can publicly disclose information on the drilling or operation of wells under offshore petroleum licences. The timeframe for this was set out in the Oil and Gas Authority (Offshore Petroleum) (Disclosure of Protected Material after Specified Periods) Regulations 2018—try saying that in one breath—and this amendment to the 2018 regulations will bring the NSTA disclosure powers across CCUS and offshore petroleum into alignment.
Information and samples play a very significant role in the UK carbon dioxide storage industry, and access to high-quality data for the NSTA, industry, academia and the public will enable efficient use of the UK’s storage potential. The carbon storage information and samples published will support sharing of knowledge and lessons learned, including best practices and innovation, ultimately leading to cost reductions and advancement of the sector. This includes accelerating the North Sea energy transition. The NSTA helps drive this transition by realising the significant potential of the UK continental shelf as a critical energy and carbon-abatement resource. These regulations will further provide opportunities for the industries based offshore, with the very significant potential that exists for storing carbon dioxide in depleted oil and gas fields and other geological formations in the UK continental shelf.
The NSTA has consulted on both the carbon storage and offshore petroleum aspects of these regulations. The consultation on the amendment of well data confidentiality closed in September 2022 and a response was published in February 2023. The consultation on the proposed regulations for the disclosure of carbon storage information and samples closed in April 2024. That consultation will ensure that the regulations are effectively introduced. A response was published in October 2025. This means that the feedback received from those consultations was positive and has been carefully considered in shaping these regulations to ensure that they reflect industry needs and best practice.
CCS is not optional; it is essential for Britain’s energy security and industrial competitiveness, and for our clean-power future. These regulations may be technical, but their impact is profound. They unlock a wealth of data that will accelerate deployment, drive innovation and maximise the UK’s carbon storage potential. This is about making Britain a clean energy superpower, safeguarding jobs, securing investment and delivering net zero in a way that strengthens our economy. I urge the Committee to approve these regulations without delay.
The regulations reflect extensive consultation and positive engagement with industry and stakeholders. They are practical, robust and future-focused, designed to ensure that the UK remains at the forefront of clean energy technology. This is about more than disclosure; it is about delivering on our net-zero commitments, safeguarding energy security and creating opportunities for growth and jobs in the industries of tomorrow. I beg to move.
My Lords, I very much welcome the regulations and totally agree with my noble friend about the importance of CCUS to meeting our net-zero targets. Only a few weeks ago, the Whitehead review made the same point about GGRs: you cannot achieve net zero without this. I look forward to my noble friend responding to the Whitehead review and no doubt accepting all its recommendations.
These regulations seem to fall within what the review said about regulation. Certainly, I very much agree that this is an important element for market investment and certainty. Paragraph 5.4 of the Explanatory Memorandum says that the UK continental shelf holds
“an estimated 78 billion tonnes of theoretical CO2 storage capacity”.
Clearly, there is huge potential for the UK. The Explanatory Memorandum mentions that, potentially, there are many countries that we could reach agreement with for storage in the UK continental shelf. So, can my noble friend tell the Committee the extent to which we are now in discussion with some of our European neighbours about the huge potential of storage in the North Sea?
My Lords, we welcome these regulations, which seek to establish a necessary legal framework for the public disclosure of protected carbon storage information and samples. These are crucial steps towards fostering a transparent culture in the UK’s nascent carbon capture, usage and storage—CCUS—industry. As has been said by others, CCUS is essential for the UK to meet its net-zero carbon targets and budgets—particularly as set out by the Climate Change Committee—and the sector is projected to support up to 50,000 jobs and significant future economic growth. As has also been pointed out, the UK’s continental shelf is estimated to hold up to 78 billion tonnes of theoretical CO2 storage capacity, so this is essential in helping us meet these targets and creating the green jobs and growth of the future.
We support the principles of transparency set out in Parts 2 to 4 of the regulations, which govern the storage data obtained by the OGA, operating as the North Sea Transition Authority—the NSTA. We welcome the approach, as set out, of clarifying data based on levels of commercial sensitivity; this is sensible and pragmatic. We also welcome the decision that non-commercially sensitive items will be published straightaway. For more sensitive material, the NSTA has established clear and time-limited protection periods before disclosure. For example, detailed well information, protected carbon storage samples and computerised model information may generally be disclosed, but only after a period of two years. These two years are designed to protect licensees with sufficient exclusivity for the data they have paid to acquire.
On the regulations that relate specifically to the two-year period for the disclosure of computerised model information—relating specifically to the creation of CO2 storage models that stimulate flows of fluids in storage complexes—the NSTA has acknowledged the need for further detailed consultation. Does the Minister know when those further consultations might be completed?
Other data is classified as highly sensitive, particularly in relation to storage resource information, quality of CO2 that could be stored and substrate geology—that kind of thing. I note that the NSTA provides the ability, but not the obligation, to disclose protected material, so licensees will have an opportunity to make representations concerning the delay or withholding of disclosure. That protective mechanism is important, and I recognise the need for it in the regulations, but I simply ask the Minister: what is the minimum timeframe for representations that the NSTA will guarantee to licensees before commercially sensitive protected material is disclosed?
We generally welcome these regulations and think that they are crucial for the development of this sector. This instrument is crucial for safety and for ensuring that there is a balance between the sharing of information and protecting what is commercially sensitive. We feel that, in general, the balance is in the right place here. We support these regulations as they will help underpin the successful, transparent and efficient development of the UK’s potential CCUS industry. But we urge the Government to address these essential questions of implementation, technical definition and scope, in order to ensure that the regulations achieve their full potential.
(9Â months, 3Â weeks ago)
Lords ChamberNo, I do not agree that the various connections relating to Drax could be better used for an SMR programme, because of the particular location of Drax within the cluster in the north-east of the country, which is particularly important for carbon capture and storage, and, indeed, hydrogen. Drax plays a part in that process in that area. The noble Baroness perhaps ought to read the report that is before us very carefully, because it does not actually say that Drax has sourced old-forest timber. Timber is sourced from third parties, goes into the Drax pellet facility, and may or may not to Drax’s knowledge include old-forest material—which, by the way, is outlawed by the Government of British Columbia. There are a number of questions to answer, but not necessarily for Drax. There are a number of people who perhaps have questions to answer as well.
My Lords, on the subject of questions to be answered, does my noble friend not think it surprising that the noble Baroness, Lady Bloomfield, intervened, given that it was the party opposite—the Conservatives—that, in government, signed contracts with Drax? The scale of the subsidies as a result was very large indeed.
My noble friend makes a very sound point, in that the new contract that has been signed costs taxpayers half as much as the old contract did. It is on more sustainable terms and, as I have said, makes Drax move towards being a dispatchable plant, which is much more in line with the power grid generally, than any of the things that were done under the previous Administration.