(1 week, 5 days ago)
Commons ChamberMy hon. Friend is absolutely right, representing, as he does, a beautiful part of Scotland and one with huge potential for such schemes. That is why Great British Energy announced £4 million of funding for community energy projects in Scotland, working with the Scottish Government to drive those forward. We see, as my hon. Friend rightly points out, the huge benefits not just of delivering clean power, but of the social and economic value for the communities that host it. We are clear that community-owned energy has huge untapped potential and huge benefits for communities. We want to see much more of it, and Great British Energy will help deliver it.
Happy birthday, Mr Speaker. I thank the Minister for his response on reducing the reliance on fossil fuels; no more backing for oil and gas is essential for protecting our children’s futures. However, that positive change requires a plan to future-proof British industries that works for everyone, particularly those who are currently working in those high-carbon sectors. Will the Minister and his colleagues commit to publishing an energy jobs plan for how those workers can be supported in that transition, particularly around being provided with retraining opportunities?
We consulted on a detailed plan around the future of energy in the North sea, which includes a detailed section on workforce planning. I am sure the hon. Lady was able to submit a response to that consultation, and we will look carefully at her views. We take the question of workforce incredibly seriously. Jobs will be created right across the clean power mission, including in the biggest upgrade to the transmission infrastructure that we have seen in this country for many years, much of which her party seems to oppose.
(1 month, 3 weeks ago)
Commons ChamberAs I understand it, the solar road map has not yet been published, so watch this space. I have been having conversations in the past couple of weeks with international counterparts who are interested in floating solar, and I would be happy to get the hon. Gentleman a more detailed response on our plans on that front.
As the Minister knows, global leadership is about adaptation and mitigation. Does she expect the Climate Change Committee’s report on adaptation, which is due out tomorrow, to say that the Government are doing enough in this regard? Furthermore, will she show real leadership by requiring local authorities and major infrastructure providers to carry out climate risk assessments, so that, statutorily, they will have to ensure that climate resilience and preparedness form a part of their plans?
(1 month, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I welcome the opportunity provided by the hon. Member for Aberdeen North (Kirsty Blackman) to debate transitional support for oil and gas workers, who are already bearing the brunt of the North sea’s disorderly decline as reserves have dwindled without a clear agreed plan. In my first ever job in the renewable energy sector in 2008—17 years ago now—I co-wrote a report on the huge potential of British North sea ports to move into the renewable energy industry as locations where offshore wind turbines and associated infrastructure are manufactured and then shipped. While some of that has been realised, a lot of opportunities were missed as jobs went overseas. The need for action is now urgent.
We already know that new oil and gas projects are incompatible with averting the worst impacts of climate catastrophe. If the goal is also to provide North sea workers and communities with the long-term security that they deserve—and it must be—new oil and gas fields are still not the answer. Even with hundreds of new licences issued and new field approvals granted in the past decade, jobs supported by the UK oil and gas industry have more than halved already, and multiple sources predict a continued decline. We must protect those workers and provide security for that workforce, but in a declining basin that will not come from desperate attempts to double down on new drilling.
Let us take the specific example of the Rosebank oil field. Setting aside the significant climate harm that Rosebank would cause, the claim that the project will create thousands of jobs is inflated. Equinor’s own estimate suggests that only 255 direct jobs would be created in the UK over its entire lifetime. Equinor has decided to construct the main offshore vessel for Rosebank in Dubai, and unions are rightly furious that the project has yet to create a single UK design or construction job.
Meanwhile, analysis shows that properly investing in British clean energy supply chains could create over 20,000 jobs for workers in key areas such as Scotland’s oil and gas communities, many of whom, as Members have pointed out, have a lot of the transferable skills we need. Rather than bowing to the industry’s last-ditch calls for new drilling, will the Government do what is needed to protect workers? For too long, oil and gas companies have been in the driving seat of the North sea transition. Time and again, they choose to prioritise their own short-term interests over the long-term needs of workers and their communities.
As the hon. Member for Brent West (Barry Gardiner) said, alarmingly, just seven of the 87 North sea operators plan to invest anything at all in UK renewables between now and 2030. Instead, these companies are on a sunset ride, maximising profits from oil and gas while they still can, regardless of what that means for the rest of us. That lack of investment has clear consequences for workers, who are demanding clear pathways out of high-carbon jobs and into the renewable energy industry, where they know they have a longer-term future.
Oil and gas companies like to blame the windfall tax for preventing them from investing, but they had been failing to invest long before that levy was introduced. We have also seen companies choosing to make workers redundant while simultaneously banking excessive profits and issuing their shareholders huge payouts—more proof that they continue to prioritise their own private interests over the workforce.
Does the Minister agree that it is time to stop betting on private oil and gas industry companies doing the right thing? How does he plan to ensure that the interests of workers and communities, rather than just those of oil and gas bosses, are served in the Government’s plan for the North sea? The need for the Government to step in and manage the transition in the public interest is now urgent, and the current approach, which is overwhelmingly focused on de-risking private investment, is wholly insufficient to achieve that aim. It risks recreating the inequalities and failures of our current energy system, where wealth and jobs flow overseas.
The unjust closure of the Grangemouth oil refinery without plans to support workers is a damning indictment of that failed industry. To ensure good, secure jobs for workers and build wealth that lasts in communities that are already experiencing the sharp edge of the transition, we need an entirely new approach—one that plans ahead before private companies decide to abandon their workers. Alongside a clear, worker-led plan for the North sea, unions and climate groups are calling for the Government to commit to an emergency ringfenced funding package in the spending review. Will the Minister meet the Chancellor to ensure that those ringfenced funds are secured, and will he ensure that past mistakes are not repeated in the North sea transition?
(4 months, 1 week ago)
Commons ChamberMy 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.
On the balance that we want to strike, yes, the oil and gas industry is important to our economy and to our energy mix, but the long-term future requires us to move towards clean power. Even if gas is extracted from the North sea, it does not help with consumer bills in this country, because it is traded on an open market to the highest bidder and sold by private companies. This is not a nationalised industry—it is owned by private companies, and gas is extracted by private companies and sold by private companies—and consumers in this country do not benefit from their gas coming from abroad or from the North sea.
If the Minister will not comment on Rosebank or Jackdaw because of the threat of legal appeals, will he at least confirm that his Government will put a stop to extraction from a reported 13 new oil and gas fields that received licences from the previous Government but are still awaiting their final consents? I believe that they are not subject to the restrictions that cause him not to want to comment on Rosebank and Jackdaw.
To be clear, I am not suggesting that I cannot comment because of particular legal action. My Department will have responsibility for making the decisions, and it would be wrong for me to prejudice that process by giving my view on those applications in Parliament or anywhere else. That is entirely how such applications end up back in court, and that is what I am determined to avoid.
We clearly outlined the question of licensing at the election: we will not issue new licences to explore new fields, existing licences will be honoured, and we will not remove licences from fields that already have a licence. However, consents—the point at which extraction takes place—must take into account climate tests, and not least the compatibility test laid down by the Supreme Court. Any applications now or in future must take account of that.
(4 months, 1 week ago)
Commons ChamberI can give my hon. Friend that assurance. We have significantly reduced the ability of Drax to make profits, but we have also ensured that if there are excess profits, they are clawed back on behalf of the British people. The additional rates of 30% and 60% in the mechanism that we have designed will ensure that any unexpected profits are clawed back. That was not the case under the eight previous Energy Ministers in the previous Government who signed off deals on Drax year after year. This is a new way of operating that protects our energy security, as well as protecting the hard-working people of this country.
Drax is a clean energy scam that has been handed £6 billion by successive Conservative Ministers since 2012, when that money should have been spent on getting energy bills down. The Minister rightly cites past excess profits and I believe he said specifically that the new contract will allow Government to claw them back. Will the contract allow clawback of previous excess profits and remedy the past misspending of public money? Or will the clawback apply only as we go forward into the future, in which case that is still throwing good money after bad, just slightly less of it?
We do not have a mechanism to claw back past profits from any company—that is not something that Governments are able to do. What we can do is move forward with a fair system that reduces the subsidy considerably, and has excess profit mechanisms and a windfall tax in place to ensure that if the company generates additional profits, we can claw that back for the British public, which is important. The level that we have agreed in the deal brings the subsidy down to a considerably lower level—half what it was under the previous Government.
(4 months, 2 weeks ago)
Commons ChamberMy hon. Friend makes a fantastically important point, which is that we often think about planning reform as being about the large-scale projects, but it is also about unblocking the smaller-scale projects. Having a national energy policy statement that includes 2030, working with local authorities and making sure there are enough planners to make the decisions—all those things can all make a difference. I congratulate my hon. Friend on her advocacy for this work, and I congratulate the local community on this project.
Experts are clear that the savings from the Government’s clean power action plan will be wiped out by 2050 if airport expansion at Heathrow, Gatwick and Luton goes ahead, and that relying on so-called sustainable aviation fuels would use up to half the UK’s agricultural land. Does the Secretary of State agree with the scientists that, while ambitious clean power plans are hugely welcome, if this Government also back airport expansion, they are not going to meet their climate obligations?
As the Chancellor said last week, any aviation expansion has to take place within carbon budgets and environmental limits. I would also point out that this Government have achieved more in six months than the last Government did in 14 years. We have lifted the onshore wind ban, consented nearly 3 GW of solar, set up GB Energy and the national wealth fund and held the most successful renewables auction in history. This Government are delivering on clean power.
(6 months ago)
Commons ChamberMy hon. Friend makes a very good point. We were talking about this issue in the Tea Room only this morning, and I will meet the ceramics sector and him first thing in the new year to talk about some of the challenges it faces. We are absolutely committed to supporting the sector.
Thirteen oil and gas fields have been licensed for new drilling of dangerous fossil fuels but are still awaiting final approval. The Government paused those decisions while doing a consultation, but the consultation will not change the science: if we are to meet our climate targets, those fossil fuels must stay in the ground. Will the Secretary of State do the right thing by the poorest in our country, who are always at the sharpest end of climate action, and ensure that those licences will not be granted?
This is a Government with a world-leading position when it comes to oil and gas, and we will do the right thing for the environment and climate change and the right thing to ensure that there is a just transition in the North sea.
(6 months, 3 weeks ago)
Commons ChamberMy hon. Friend is right: although we have party political disagreements on some issues, this country has avoided a fraying and splitting of this consensus, as has happened in other countries. The consensus on climate action is so important precisely because of what he has set out: the fate of his grandchildren and all future generations, and the impact on them. I want to work with people across parties on this issue, because the more of a consensus we have, the better it is for the country.
Low-income countries were extremely disappointed by the finance agreements at COP—$300 billion does not come anywhere near the level of need. Critically, there was no clarity on how much of it would be grants, as opposed to loans, which would plunge global south countries further into debt. Does the Secretary of State share my concern about the potential dominance of loans and an overreliance on the private sector, and does he agree that considerable public finance could and should be raised through taxes on the most polluting companies?
I understand why the hon. Lady expresses that disappointment—indeed, a number of developing countries expressed that disappointment. However, I think that this is a considerable scaling-up of resources. That is to state the obvious, because $100 billion was the previous commitment. It is the provision and mobilisation of resources. She is right about the balance between grants and loans, and about the funds that are required for adaptation, but the truth is that public finance on its own will never meet the need. That is why the agreement on carbon markets that was part of this COP is important, and why the mobilisation of private finance, and working on a road map to that mobilisation, which is also part of the agreement, is so important.
(7 months, 1 week ago)
Commons ChamberI completely agree with my hon. Friend. There is a direct link between taking action to protect the British people at home and leading on climate action abroad. If we want to protect our country from future energy shocks and the runaway cost of climate chaos, we must work with other countries to protect our planet. We now have the credibility to do that because of the action we have taken since entering government, as was apparent when I attended pre-COP meetings in Baku last month and as the Prime Minister will demonstrate in Baku today.
I warmly welcome the new Government target to cut carbon emissions, and I know the Secretary of State and the Minister thoroughly understand the importance of joined-up action on climate justice. Can she tell us whether every single Government policy across every Government Department will now be assessed to check whether it is compatible with 1.5°? What steps are the Government taking to ensure the global south is properly compensated for climate loss and damage?
On the second point first, at this COP we want to ensure that we fully operationalise the loss and damage fund, so we then start getting money into it and channelling money to developing countries. We also want to do that through the new collective quantified goal, which we hope will be ambitious and multi-layered.
On the question of looking at our policies across the piece, that is very much my job. We will be responding soon to the Committee on Climate Change’s report, which the hon. Lady will know was quite critical of the previous Government’s action. We will be setting out our plan to implement the NDC and looking at the next carbon budget. All those things require effort share across Departments to ensure we actually meet them. It is about not just setting ambitious targets, but making sure that, unlike the previous Government, we have a strategy to get us there.
(8 months, 2 weeks ago)
Commons ChamberWe are really clear that as we develop our plans we absolutely need to get on with the job of upgrading homes. We have announced our warm homes local grant and our warm homes social housing fund, which are targeted at low-income families, because we know there is a job of work to do. We are committed to an additional £6.6 billion to invest in our warm homes plan over the course of this Parliament.
We are committed to accelerating the just transition for workers in Britain to boost our energy security and ensure good, long-term jobs, especially in North sea communities. We will work with them and other industrial regions to develop a plan, ensuring those workers are the people who decarbonise our country.
I thank the Minister for her response. Unfortunately, the unjust transitions we are seeing in Grangemouth and Port Talbot are a damning indictment of the lack of a proactive approach to a just transition over the last few years. Tomorrow at the Treasury, over 50 major unions and climate groups will be calling for a new approach to the energy transition where, instead of just de-risking private profit, there is a governmental ringfenced funding package for North sea oil and gas workers, including help with skills and job creation. Will the Secretary of State or Ministers please meet the Chancellor of the Exchequer to ensure that those ringfenced funds are secure, so that we can stop betting on the industry to do the right thing?
Last week was the historic week when 142 years of coal-fired electricity generation came to an end, and this week we have announced the new era of carbon capture and storage. We will work in a different way from the last Government, adopting a proactive approach to ensure that the transition works for people and that we create new jobs as well. At Grangemouth we provided a package of support for workers, and at Port Talbot we managed to negotiate a better deal than the last Government. We will use all the levers that we have—Great British Energy, the national wealth fund, the British jobs bonus and the office of green energy jobs that we have set up—to ensure that we get the transition right.