Carbon Budget Delivery Plan Debate
Full Debate: Read Full DebateDepartment: Department for Business and Trade
John Hayes
Main Page: John Hayes (Conservative - South Holland and The Deepings)Department Debates - View all John Hayes's debates with the Department for Business and Trade
(1 day, 8 hours ago)
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Several hon. Members rose—
Sir John Hayes (in the Chair)
Order. I see that quite a lot of people want to speak. I will not set a time limit, but if you can be disciplined in how long your contributions last, that would be very helpful.
Dr Ellie Chowns (North Herefordshire) (Green)
It is a real pleasure to speak in this debate, and I am very grateful to the hon. Member for Sheffield Central (Abtisam Mohamed) for securing it. To be honest, I am a bit disappointed that the Secretary of State did not come to the House to make a statement about the carbon budget delivery plan, especially given that the previous one was in breach of the Climate Change Act 2008, and given the urgency of the UK’s meeting not just its statutory domestic climate targets but its international obligations under the Paris climate agreement.
It is obvious that UK climate action has important domestic and international ramifications. We are holding this debate while COP30 takes place. The UN has warned that the goal of a 1.5°C limit is fragile. According to the UN Secretary-General, the current plans put forward by nation states to cut emissions will put the world on a pathway to 2.3°C of global warming if they are fully implemented, and yet the UK’s new carbon budget delivery plan will fall short of our own commitments under the COP process, via our nationally determined contributions. The delivery plan is looking to achieve 96% of the cuts for the 2030 NDC and 99% for the 2035 NDC. That does not even reflect the fact that the UK’s NDC commitments themselves fail to take account of the scale of ambition needed to tackle the burning reality of the climate crisis, in line with what the climate science demands, and to reflect the UK’s historic responsibilities—and therefore moral obligation—to take a fairer share of the global need to cut emissions.
The Government’s carbon budget delivery plan is absolutely better than previous versions—let’s face it, it was a low baseline—but it is still wanting, both in global terms and in terms of facing the climate reality. That needs to change; even more ambition is required.
The hon. Member for Sheffield Central talked about the warm homes plan and the wider need for investment, particularly in the housing sector. We must ensure all our homes are fully fit for the future. As she said, it must be recognised across Government that climate action is absolutely central. It is not just about tackling our carbon emissions; it is also a really important way to tackle inequality and generate a resilient, jobs-rich economy that will secure long-term prosperity for us all.
There are of course things to welcome in the carbon budget delivery plan, including tougher energy standards for the private rented and social rented sectors, welcome signals on heat pumps and so on, but to make our homes really fit for the future we need to think even bigger. We need to minimise embodied carbon in the housing sector, and maximise on-site energy generation, biodiversity in the construction of new homes and resilience in things such as flooding and overheating, which is crucial in tackling the impacts of the climate crisis, which is hitting harder and harder. Every new home—especially every new social home—must be built to the highest standards.
We urgently need the warm homes plan. It is deeply concerning that there are rumours that the Government are seeking to rob Peter to pay Paul by taking money away from the warm homes plan—that crucial long-term investment in insulating our homes and making them fit for the future so that people have cheaper bills. We must not put a short-term sticking plaster on bills. We need both, not one or the other—[Interruption.]
Sir John Hayes (in the Chair)
Order. There is a Division in the House. We will suspend for 15 minutes, and when we return Ellie will draw her speech to its conclusion reasonably speedily.
Several hon. Members rose—
Sir John Hayes (in the Chair)
About six people want to contribute, so they each have about four minutes. I will not make it formal, but I know I can rely on you not to let me down.
Several hon. Members rose—
Sir John Hayes (in the Chair)
Order. I said four minutes a speech. This is partly a debate about targets and figures, Barry, and the difference between four and nine is five.
Tom Hayes (Bournemouth East) (Lab)
It is a pleasure to see another Hayes serving in the Chair, Sir John. I thank my hon. Friend the Member for Sheffield Central (Abtisam Mohamed) for securing this debate. When we talk about the carbon budget delivery plan, we are talking about progress towards a cleaner, fairer and more secure Britain. With COP30 getting under way properly, we know the consequences of breaching the 1.5° limit: there will be more people exposed to extreme heat, higher sea levels, increased food security risks, the extinction of species, a loss of virtually all coral reefs, and the spread of climate-sensitive diseases on a greater scale. We cannot allow that to happen.
Although we are tackling this issue for global reasons, it is clear that there will be benefits at home. Clean energy is the route to faster and more resilient growth. Analysis by Oxford Economics for Energy UK shows that we can add up to £240 billion in value to our economy by 2050 if we increase our ambition. The faster we move now, the more our economy will work for working people and the more good, secure jobs we will create.
I am particularly pleased that the Government are setting up Great British Energy with £8.3 billion of funding going into large-scale solar, offshore wind and grid-scale battery projects. I am also pleased to see today’s announcement by SSE of £33 billion of investment to unlock secure and affordable clean energy, and to support our economic growth. That is proof that when we invest in the green economy, we see investors returning that.
Sprinting to net zero does not just boost growth; it also protects growth. We saw what happened when the last Government failed to plan for resilience. Volatile international fossil fuel markets sent our bills soaring and made our growth sputter. Typical household energy costs nearly doubled in a single year and all our constituents are still living with the cost of that. Millions of people were pushed into fuel poverty and energy bill debt remains at record levels. Indeed, when the last Government finally acted, they did so at huge cost, spending £94 billion of taxpayers’ money. That crisis could have been prevented with sustained investment in energy independence and efficiency.
We should be going as fast as we can on net zero because another such crisis could be prevented with clean home-grown energy. The Office for Budget Responsibility has warned that a fossil fuel price shock could cost us between 2% and 3% of GDP in the 2030s. We cannot afford such a shock to be inflicted on our constituents all over again.
The delivery plan faces several other challenges. We know that there are opponents who have chosen an anti-jobs, anti-science path that would spell disaster for our economy, our security and our planet. Too often, net zero has been treated as a political football. Deadlines have been delayed, targets have been softened and certain voices have claimed that our targets are “impossible” to meet. Indeed, there have even been threats to rip up green contracts, undermining investor confidence when our constituencies need investment in jobs in the green economy so that we can lead from the front. To all those who resist home-grown renewables or reject British-built nuclear, let me be clear: they are undermining our security, driving up our bills and holding back growth. That is bad for Britain and bad for our planet.
Our national security is our energy security, so I do have to speculate about some of the opposition to net zero. When I see that 92% of Reform UK’s post-2019 funding is linked to or comes directly from donors tied to fossil fuel interests, polluting industries or climate science denial groups, it makes me wonder. Similarly, we know that the leadership of Reform UK’s pick for First Minister of Wales was a paid Putin propagandist. Why is Reform UK so keen for Britain to be addicted to Russian-dominated fossil fuel markets? Our energy security comes in many forms.
We also know that despite all the political noise, the markets and the public remain firmly committed to clean energy. Among Fortune Global 500 companies, net zero commitments have risen from 8% in 2020 to 45% last year. Some 70% of the UK public support the net zero target, compared with just 18% who do not, and 65% of the UK public want more renewable generation, while only 7% disagree with increasing renewables. Polling by the UK Sustainable Investment and Finance Association found that 68% of people are uncomfortable with their pensions or savings being invested in companies that harm the environment.
Let me be clear: the Conservatives and Reform UK will lock Britain out of the race for green economic leadership. People up and down our country will lose out. However, Britain can no longer be held back, because the race for the jobs and industries of the future is speeding up, so we must go all-in on clean energy.
This is a critical moment. Global insecurity is driving insecurity at home, and many people feel ignored and left behind. While the world moves at speed, our politics remains stuck. People are hungry for change, but if this Government do not deliver it, others will—and that worries me.
Our task as a country is to lead in this era. It is not to defend the broken ways of doing things, but to create new methods to give people the stability and pride that they crave, and a country that is on the up once again as it leads the global race for green investment. We cannot afford to leave our country to those who will cosy up to Putin by indulging the fossil fuel markets and volatile prices that come with them. That means taking on vested interests, and restoring control of our energy and our economy. The dividing line in politics must be between the disruptors and those who defend a status quo that is working in nobody’s interest.
We know that net zero is the economic opportunity of a generation. Our net zero economy grew 10.1% in 2024. Net zero foreign direct investment was up 46% last year, reaching £20 billion, and 95% of major financial firms—representing over £1 trillion in turnover and £200 billion in green investments—say that they would increase UK investment with greater policy certainty, unlocking up to £100 billion. Is there policy certainty in scrapping the Climate Change Act or threatening to rip up the green contracts that the Government are delivering?
Sir John Hayes (in the Chair)
Order. Can you bring your remarks to a close, otherwise no one else will be able to get in?
Tom Hayes
I apologise.
The capital is waiting, public support is strong and technology is ready. What is needed is yet more policy certainty, clarity and courage. We have seen so much already, but there is more to do. Net zero should not be a political football. It is a strategic national mission, the UK’s growth story and a foundation for jobs, competitiveness and resilience.
Susan Murray (Mid Dunbartonshire) (LD)
I will do my best. It is a pleasure to serve under your chairship, Sir John. I thank the hon. Member for Sheffield Central (Abtisam Mohamed) for securing the debate and bringing attention to this matter.
Although some may deny its impact or severity, climate change represents the greatest modern threat to our planet. The data is clear. If we continue down our current path, millions of lives will be lost and our way of life will be changed forever. We have an opportunity to show the world that there is an alternative path to save lives and avoid catastrophe.
Steps have been taken to create a Britain at the forefront of climate action, but there are still gaping holes. Although we have enormous capacity for green energy production through wind, tidal and solar, we do not yet take full advantage of it. My constituents in Mid Dunbartonshire demand that we act faster. We must take the opportunity to produce wind turbines domestically; less than half of the wind turbines operating in the UK contain any British component. Instead, we ship turbines in from countries such as China, undermining their green credentials and costing British jobs.
We are not moving fast enough to upgrade our grid, meaning that we are restricting the energy output at some sites for as much as 71% of the time. At the same time, we seem to be ignoring the potential of community energy and local projects to take pressure off the wider grid and to provide cheaper bills to British people. It is clear that although we have incredible potential, we need to move faster to exploit it.
The Government must place decarbonisation at the heart of the UK’s industrial strategy. The net zero sector is growing three times faster than the overall UK economy and jobs in the sector pay almost 15% more than the national average. If we want good, long-term jobs for British people, we must look seriously at green energy. We can create manufacturing jobs producing the technology, jobs working on the grid, jobs working on offshore sites and many more, but only if we take climate change seriously. That means ensuring that workers and communities in sectors such as North sea oil and gas are not left behind as the industry declines, but supported to move into new, clean industries. Even if all our energy came from renewables we would need oil and gas for the foreseeable future, but it makes no sense to import gas, which is four times as polluting as local production.
The Liberal Democrats would introduce a carbon tariff to level the playing field and minimise carbon emissions. The skills already built up in Scotland’s energy sector are the skills that we need for offshore wind, grid upgrades and new green technologies, but there is an urgent need to invest in more skill training and housing if we want the sector to thrive, grow and build new sustainable jobs and communities.
The Government have listened to the Liberal Democrats before on green energy. I urge them to do so again to help create a cleaner, fairer future for our children, and across the world.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
It is a pleasure to serve under your chairship, Sir John. I thank my hon. Friend the Member for Sheffield Central (Abtisam Mohamed) for securing this important debate. I will take this opportunity to link the national Government ambition of the carbon budget delivery plan with the local government ambition of Wolverhampton’s green innovation corridor.
The benefits of the clean energy economy are well reported and evidenced: creating energy security, lowering household bills, protecting our environment and building good local jobs. For too long, global price shocks driven by conflict and market volatility have hit my residents’ pockets. By investing in home-grown clean energy—from offshore wind to solar and local generation —we are keeping more of our energy and money right here in the UK. That means greater control over prices, and a fairer, more stable energy system for households across the country.
In the west midlands, Wolverhampton’s green innovation corridor has every potential to build our industrial past into a green industrial future. By connecting the University of Wolverhampton with a local manufacturing base and skills training for the industries of tomorrow, it can create local opportunities for great jobs of the future.
What does that mean for my constituents? First, it means jobs. The green innovation corridor is set to deliver over 1,000 skilled roles including apprenticeships for young people, retraining for experienced workers, and graduate opportunities. Secondly, it means investment and regeneration. The corridor will breathe new life into old brownfield sites, creating new workspaces and better connectivity, so that investment flows into local businesses, communities and shops. By linking our local ambition with the national carbon budget delivery plan and by backing the green innovation corridor, we are supporting jobs and households in Wolverhampton and Willenhall.
Sir John Hayes (in the Chair)
Well done for keeping to time. I am calling the Front Benchers at 5.28 pm. I call Jim Shannon—you have a minute and a half.
Sir John Hayes (in the Chair)
Thank you, Minister; that leaves a moment or two for Abtisam Mohamed to complete our discussion.