Climate Change

Amber Rudd Excerpts

Wednesday 10th June 2015 Commons Chamber

[The Secretary of State for Energy and Climate Change (Amber Rudd)]

It is a great pleasure to see you in the Chair, Madam Deputy Speaker. Let me start by thanking the right hon. Member for Don Valley (Caroline Flint) for giving the House an early opportunity to debate this issue. I wish her luck in her own election going forward.

Let me first set out the strength of the Government’s commitment on combating climate change. The Government are committed to taking robust, effective action to tackle climate change here at home and on the international stage. Climate change, as the right hon. Lady said, is not a party issue. It is not a Conservative, Labour, Liberal or even a Scottish National party issue. It is not exclusively left-wing or right-wing, if we can use those terms anymore. Climate change brings together all the parties in this House, and indeed countries across the globe. The G7 on Monday demonstrated just how far the major developed economies are aligned.

The pledge signed by the leaders of the main UK parties in February this year ahead of the election, which was brokered by the Green Alliance, underlines our domestic unity. We are pledged to work together to achieve a fair, legally binding global climate deal; to work together to agree domestic carbon targets; and to work together to accelerate the transition to a low-carbon economy. We are united here in this United Kingdom, because climate change represents a threat to our national prosperity, our national security and our way of life. The science of climate change is sound. While uncertainties remain, especially on scale and pace, there is a lot we do understand. The evidence continues to point in one direction: a world warming due to human activity.

As an island nation surrounded by the sea, with an open economy dependent on trade, we cannot bury our heads in the sand. We are exposed to the ramifications of a world 2° warmer or more. Margaret Thatcher, one of the first world leaders to put climate change firmly on the international stage, told the World Climate Conference 25 years ago that

“the threat to our world comes not only from tyrants and their tanks...The danger of global warming is real enough for us to make changes and sacrifices, so that we do not live at the expense of future generations.”

She was right on this, as on so much else.

Acting on climate change also represents an opportunity for us to build a stronger, more resilient, more efficient low-carbon economy that conserves resources and energy instead of wasting them; that preserves a healthy natural environment; and that puts Britain at the forefront of the green global transition that must happen if we are to protect this planet for future generations. Getting a global deal on climate change in Paris in December is one of my highest priorities this year. I want, therefore, to talk about the international picture and the prospects for agreement, but first I want to set out how we in the UK, through the actions of successive Governments and with cross-party support, have been living up to our responsibilities on climate change.

[Mr MacNeil]

In an earlier intervention, I was seeking clarity on the issue of onshore wind. What is happening to the support mechanism? It is affecting jobs, the economy and even farming businesses. Will the Secretary of State clear that up today or make a statement to the House in due course? People need to know, especially if we are to meet our 2020 targets. Are we using onshore wind, or is she going to go for more expensive renewables?

[Amber Rudd]

Onshore wind is, of course, an incredibly important area. The hon. Gentleman will be aware that our manifesto said we would remove subsidies for onshore wind, and we will act on that manifesto pledge. We also said in the manifesto that we would consult the devolved Administrations—a process, he might be aware, that I have begun—and I will continue to do that until we have arrived at a firm policy. He can rest assured, however, that I will make sure the House is the first to know on that matter.

[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

I congratulate the right hon. Lady on her welcome promotion. She talked about global leadership and the G7. Is she not disappointed that the targets coming out of the agreement this weekend only referred to 2100, and why did it take the German Chancellor to put this issue on the agenda? Where has Britain been on this when hosting similar events?

[Amber Rudd]

I do not agree at all with the hon. Gentleman’s interpretation of the G7 communiqué. I met with non-governmental organisations and businesses at an event hosted by the Green Alliance on the same day, and they were delighted by the strong signal being sent out by the G7 that getting an answer and following it was a priority this year. The House should be in no doubt that there has been strong leadership from this Government, as there was from the previous Government.

[David Mowat]

On the point about leadership and the German Chancellor, is my right hon. Friend aware that Germany has commissioned more coal-fired power stations in the past four years than in the previous two decades, that those coal-fired power stations will be totally unabated and that, partly as a consequence, its emissions are now 30% per capita higher than in the UK?

[Amber Rudd]

My hon. Friend is right. I am aware that the German Chancellor has her own political issues to address, but because of that, it was particularly warming—encouraging rather than warming, perhaps—to see her taking such strong leadership on this and making sure it remained at the top of the agenda. Since my hon. Friend mentions coal, I take the opportunity to say how important carbon capture and storage remains to us. I spoke several times in debates in the last Parliament on this subject. The right hon. Member for Don Valley and her team should be in no doubt that we remain committed. We have spent, or put aside, more than £1 billion. We have two tests going ahead, one in Aberdeen and one in Yorkshire, and we are running a competition that we hope to take forward over the next six to nine months. There is a lot of activity going on. The whole purpose is to ensure that we can have a form of unabated coal going forward.

[Graham Stuart (Beverley and Holderness) (Con)]

My right hon. Friend is right to talk about carbon capture and storage and the two projects, and I hope that the White Rose project will get Government backing in due course. It is fair to point out that the Labour Government said in 2003 how urgent it was to bring CCS forward as it was critical to any hope of meeting our targets by 2050—and they failed completely and utterly to deliver anything by 2010. We should take no lessons on that particular subject from Opposition Members.

[Amber Rudd]

My hon. Friend is right to point that out. Opposition Members may carp at what we do, but they failed to take action themselves. I would ask for a little bit more support on the good changes that we are making.

[Mr MacNeil]

The right hon. Lady is kind in giving way, but I want to press her further on when the Conservative manifesto promises will kick in. There is much uncertainty in the onshore wind energy sector at the moment, and investors and developers are daily—sometimes almost hourly—beating a path to my door. They need to know.

[Amber Rudd]

I am aware of the pressing need to get a full answer on this question. I have put a lot of pressure on my Department to make sure that we establish exactly what is in the pipeline and what existing commitments are. The hon. Gentleman will have to bear with us a little longer, but I am aware that we need to give him a full answer as soon as possible.

I said I wanted to speak about the national picture. I stand here as one of a long line of Members who, over the past few decades, have helped to place Britain at the forefront of action on climate change. I want to pay particular tribute to my predecessors in the Department of Energy and Climate Change—Greg Barker and Ed Davey. The last Government achieved what they set out to do, making us the greenest Government ever. [Interruption.] I particularly want to pay tribute to former Secretary of State Ed Davey’s role in securing an ambitious EU 2030 framework deal.

The package requires all member states to make significant emissions reduction efforts, just as we are already legally committed to do under the Climate Change Act 2008. It substantially levels the playing field for UK business and industry to compete fairly across the EU, with UK leadership replicated across the world’s biggest trading bloc. That leadership is underpinned by the 2008 Act—an ambitious piece of legislation, the first of its kind in the world, supported by all parties.

In this Parliament, I know I can rely on sound advice and support from many colleagues, including my hon. Friends the Members for Beverley and Holderness (Graham Stuart), who has just spoken, for Richmond Park (Zac Goldsmith)and for Ruislip, Northwood and Pinner (Mr Hurd).

[Mr Nick Hurd (Ruislip, Northwood and Pinner) (Con)]

I join others in really welcoming my right hon. Friend and my hon. Friend the Member for South Northamptonshire (Andrea Leadsom), the Minister of State, to their incredibly important positions at this very important time. I know how concerned my right hon. Friend is about fuel poverty. Does she agree with the Committee on Climate Change that low-carbon heat can play a much bigger role in helping to reduce both carbon and fuel poverty? Is she minded to look again at how the incentives around low-carbon heat work, particularly for low-income households?

[Amber Rudd]

I thank my hon. Friend, who is entirely right. Low-carbon heat is an area that we urgently need to address. We are looking in the Department at different ways of doing that. We are looking around the rest of the world, trying to establish what works, and we are taking a hard look at how to achieve what my hon. Friend rightly said is such an important way of addressing both fuel poverty and our carbon targets.

There are, of course, many Opposition Members who have an equally admirable track record in raising climate change up the agenda and in helping to put in place the practical policies that mean we are living up to our commitments. Overall, I believe that the United Kingdom can be proud of the progress made in meeting the climate change obligations that we have collectively put in place.

The carbon budget system ensures that each successive Government undertake the long-term planning necessary to meet long-term targets, rather than defaulting to short-term thinking. I pay tribute to the work of the Committee on Climate Change in providing independent advice to the Government and the devolved Administrations and in monitoring our progress. It was confirmed in September 2014 that the UK met its first carbon budget and that we were on course to meet the second and third budgets through to 2022. In the last Parliament, the Government also maintained the ambition of the fourth carbon budget. Thanks to the actions of successive Governments and the structures we have put in place, UK greenhouse gas emissions are 30% lower than the baseline set in 1990.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

If we look at the detail of the fourth carbon budget and the assumptions it makes about residential building insulation and wind insulation necessary to get even to the beginning of this fourth budget, does the Secretary of State agree that we are nowhere near being able to meet those terms at the moment, and that on the basis of present policies we shall not remotely be able to do so?

[Amber Rudd]

The hon. Gentleman is well known for working in this field. I respect him, and have debated with him on other occasions. He has made a good point: there is definitely an issue with the fourth carbon budget. However, it is too early to give up on it yet. We will be looking at policies, and it is my firm hope that we will be able to come back and reassure the hon. Gentleman in due course.

Provisional figures show that under the last Parliament greenhouse gas emissions fell by a mammoth 15%, and that, even as the economy grew, they continued to fall. The carbon intensity of the economy as a whole fell by 6% between 2013 and 2014. Britain is demonstrating that economic growth and emissions reduction can go hand in hand.

[Patrick Grady (Glasgow North) (SNP)]

Is the Secretary of State aware of a letter that is published in today’s Financial Times? It is signed by 80 of the country’s biggest businesses, who call for ambitious action by the Government. That shows that there is a consensus throughout society, both in business and in the wider third sector. The letter says:

“Failure to tackle climate change could put economic prosperity at risk.”

What is the Secretary of State’s response?

[Amber Rudd]

The hon. Gentleman is absolutely right. The great thing about the battle against climate change is that it is cross-party and also cross-business. Businesses support us because they understand that it makes good business sense, and they also understand that their customers want it, just as our constituents do.

Britain is demonstrating that economic growth and emissions reduction can go hand in hand. That is of immeasurable worth as we enter a key period in our international negotiations.

[Stephen Doughty]

We all want to see emissions falling. Celsa Steel in my constituency uses one of the most efficient steel-making processes in the European Union—it is in the top 10%—and has invested massively in a carbon-efficient steel workshop. However, it is competing against increasingly carbon-inefficient steels that are coming from, for instance, China and Turkey. Will the Secretary of State agree to meet me and representatives of Celsa, to discuss how we can drive down emissions while at the same time not offshoring them to countries such as China and Turkey?

[Amber Rudd]

That is a very good point, and I, or my hon. Friend the Minister, will certainly meet the hon. Gentleman to discuss it. He is right: we must make certain that none of our carbon reduction programmes leads to carbon leakage. We must ensure that we keep business and industry here, and that we keep growing employment while also maintaining those commitments. Let me add—slightly controversially, given that I have spoken so much about consensus—that the way to deliver that is to have a strong economy, and some might draw attention to the difference between the parties in that respect. If we have a strong economy, we can lead the way.

Through our actions, we are providing a guiding light for others. We are demonstrating that climate-friendly economies can be successful economies, and that the low-carbon sector provides opportunities for jobs and investment. Britain’s low-carbon sector grew at 7% last year, outstripping the growth levels in other parts of the economy. It is now valued at around £122 billion, and supports nearly half a million jobs. It is larger than the aerospace, pharmaceuticals and chemicals sectors, and equivalent to the gross value added by the food and drinks sector.

Clean power is booming. Over £42 billion has been invested in renewables, nuclear and carbon capture and storage since 2010, and that investment is spread across all regions and countries in the UK. Last year the UK attracted a massive 30% share of renewable power investment in the EU.

[Mr James Gray (North Wiltshire) (Con)]

I warmly welcome my right hon. Friend to her new job, and very well deserved it is too. While I support everything that we can do with regard to renewable energy, does she not agree that we have a particular problem in the south-west, namely the vast solar farms that are springing up across the land? Hundreds of acres of good agricultural land in my constituency are being wasted, and replaced by the vanity mirrors that are solar farms. Is there any way of limiting them to industrial sites, schools and so on?

[Amber Rudd]

My hon. Friend is right. We have introduced limitations for large solar farms, and we will consider what else we can do in this regard. I also agree with him that solar energy is best dealt with by community energy projects. It should not be on people’s houses; it should be on public buildings and factories. That is an excellent way of generating solar energy, and it has become much more affordable and possible since the price has fallen so much under this Government and the previous one.[Official Report, 11 June 2015, Vol. 596, c. 1MC.]

Last year was our best year ever for new build renewable energy finance according to Bloomberg New Energy Finance, with the UK ranked 4th in the world behind only China, the US and Japan. Renewable generation now provides almost a fifth of our electricity needs and often exceeds that. Last Saturday afternoon, for instance, renewables provided as much as 42% of Great Britain’s electricity. Not only are we increasingly using clean energy, but we are increasingly saving energy as well. Thanks in part to the Government’s energy efficiency drive, energy consumption fell by 7% between 2013 and 2014.

[Bob Stewart (Beckenham) (Con)]

I was astonished by that figure of 42%. Will my right hon. Friend kindly say how it came about, because it is fantastic if that is the case?

[Amber Rudd]

It was windy and sunny. A good combination of renewable energies is required to reach such high achievements.

[Luciana Berger]

I welcome the Secretary of State to her post. She is reading out some very positive statistics, but has she reflected on our fuel poverty statistics? She will know that in the previous Parliament her Government scrapped the target to eradicate fuel poverty by 2016 and I wonder whether she can update the House on progress in eliminating what is a scourge across our country.

[Amber Rudd]

Fuel poverty is an incredibly important issue, which must be addressed. I share the hon. Lady’s concerns. I was pleased that fuel poverty fell under the last Government and we will shortly announce policies to make sure we do that again. We did meet our targets on creating over 1 million houses with home efficiencies, and of course creating a more competitive market is also the way to achieve that. So there is a suite of policies to be addressed.

[Robert Neill (Bromley and Chislehurst) (Con)]

I, too, welcome my right hon. Friend to her post. Does she recognise that advances in technology—such as much more sophisticated filters—can make gasification technology to burn waste particularly appropriate in urban areas, and they can be readily linked into district heating schemes and well targeted towards areas of fuel poverty? Can we do more to encourage and incentivise that?

[Amber Rudd]

My hon. Friend is right. District heating schemes are an excellent way of addressing reducing heat and making sure that we have a more efficient way of delivering it. The great thing about this sector is that there is so much technological innovation. So much is being done and we do not really know which innovation will be the big winner, but we must make sure that we continue to support them through our Innovate UK programme with the Department for Business, Innovation and Skills and other initiatives.

I shall quickly make some comments about the international picture before finishing, so that colleagues have time to speak. We agree with the sentiment behind this motion. Only a global response on the scale required can hope to keep a 2° pathway within reach. A global deal can help ensure that the transition to a low-carbon world happens as cost-effectively as possible with a more level playing field for business, because business plays a very important part in making sure that we can deliver on these targets and make this transition.

A global deal will protect the most vulnerable countries and share the burden. Paris will be a seminal moment in this process. It will not be the last word. Indeed, holding 195 countries to their commitments will be as challenging as bringing them to agreement in the first place, but that should not curtail our ambitions. In Paris we need to ensure that all countries come forward with emissions reduction contributions that keep that target within reach. The agreement needs to be legally binding, so we can all have certainty in what each country is doing.

[Stewart McDonald (Glasgow South) (SNP)]

rose—

[Amber Rudd]

I will not give way again. I want to allow other colleagues time to make their speeches.

This agreement needs to be based on a set of rules that define commitments and how they can be met, so that each country’s progress can be tracked and there is no room for backsliding. Indeed, we want the opposite to be the case. We need to build in a process for regular reviews, so that ambition can be further increased.

Both the US and the EU have already made public their so-called intended nationally determined contributions. Those publicly declared cover 31% of global emissions, and we are still waiting for others to come forward, including China, which is expected to declare in the next month or so. As we speak, officials are gathered in Bonn at the United Nations framework convention on climate change inter-sessional, focusing on improving the text to be agreed in Paris and seeking to make progress on key elements such as effective rules and mitigation ambition.

The last Government set out their strategy for Paris in September last year. Although I agree with the sentiment of this motion—which I note was lifted verbatim from Labour’s green manifesto—I am afraid that we will not be able to support it in the Lobby this evening. In setting this Government’s detailed approach and to ensure that we maximise our negotiating position, I need to take stock of the results of the Bonn inter-sessional. In the signals we send to our negotiating partners, we will need to be precise in our language and united in our text. I am sure that the right hon. Member for Don Valley will understand that. Tackling climate change is not just a noble aim. It is not just the right thing to do. It is an economic and social imperative.

[Several hon. Members]

rose—