Energy Efficiency and the Clean Growth Strategy

Luke Graham Excerpts

Thursday 8th March 2018 Westminster Hall

[Luke Graham (Ochil and South Perthshire) (Con)]

It is a pleasure to speak under your chairmanship, Mr Walker. I, too, commend my hon. Friend the Member for Eddisbury (Antoinette Sandbach) for securing the debate. Many contributions have focused on domestic energy efficiency, and I will touch on that, but I also want to broaden the debate and talk about energy efficiency in the commercial and industrial market, which is crucial if we are to meet our emissions targets.

The clean growth strategy was introduced last year by the Department for Business, Energy and Industrial Strategy with the express intention of accelerating the pace of clean growth, allowing the UK to meet its greenhouse gas emissions targets while ensuring that we maintain the strong economic growth that has been a key success of the Conservative Government during the past eight years. It is worth noting that the clean growth strategy has been introduced not to address an issue, but to improve, accelerate and maximise an already successful set of Government policies.

Since 1990, the UK’s GDP has increased by 67%, while emissions have gone down by 42%. In comparison, the G7’s GDP has increased by 61%, but its emissions have gone down by only 3%. That shows that the UK has led the way in growing the economy without jeopardising the environment. To put that another way, protecting our environment need not undermine our economy.

The argument that environmental protection is incompatible with a thriving economy holds little water. Our success in creating more jobs while reducing emissions shows that we need not choose between economic growth and environmental measures. The UK is therefore clearly right to seek to maximise the economic benefits of our transition to a low-carbon economy.

With regard to Scotland, energy efficiency was of course devolved in 2016, but energy policy is still a reserved matter. Particularly important for Scotland is the recognition of the importance of carbon capture and storage to decarbonising UK heat, industry and power. That has been mentioned by Opposition Members. For Scotland, CCS is a vital tool to reduce emissions, and the Minister should be commended for putting it firmly back on the Government’s agenda.

In the UK, we have world-leading oil and gas skills and infrastructure—predominantly based in the north-east of Scotland—which could be perfectly suited to CCS. However, the opportunity to repurpose many of those assets before decommissioning is diminishing. That is why putting the clean growth strategy into action now is vital for the UK as a whole. The economic benefits of CCS to Scotland and the east coast of England combined have recently been estimated at more than £163 billion during the next 60 years, making it imperative that we maximise this opportunity.

It is therefore worth considering the Caledonia Clean Energy Project, which could be well placed to kick-start the UK CCS industry. The Caledonia Clean Energy Project would see the development in Scotland of crucial low-carbon infrastructure that not only provided clean, reliable power to up to 1.3 million homes, but facilitated the decarbonisation of Scotland’s major industrial hub, Grangemouth. If that were not enough, the project could also produce enough clean hydrogen every day to power about 500 hydrogen-fuelled buses.

There is not a strict definition of energy efficiency at industrial level, but surely a helpful one would be the sort of energy efficiency that not only helped the UK to lower its emissions and meet emissions targets, but put the UK at the forefront of economic innovation in the energy market.

It is clear that Scotland specifically has the exciting potential to be a major part of the clean growth strategy, but if there is one criticism that can be levelled at the strategy, it is that it does not provide the sufficiently clear policy signal that investors in CCS need to justify what could be multiple billions of pounds of inward investment in the UK and Scotland. It is important to remember that although energy efficiency is devolved—we have heard here today examples of best practice in England and in Scotland—energy policy is still a reserved matter. That is why having a joined-up strategy that goes across the UK is so important—to ensure that we can pool our resources.

Where we have large energy assets such as nuclear, wind—we have world-leading wind farms in the North sea—and oil and gas, we can pool our resources, but we can also leverage some of the research and innovation that the UK is so famous for to promote micro energy efficiency and energy generation schemes and decentralised projects across the UK. The clean growth strategy seeks to promote that and it is a UK-wide strategy, which I very much welcome.

I would like the Minister to comment on how the clean growth strategy could deliver commercial-scale carbon capture to Scotland and other parts of the UK, before the oil and gas infrastructure is decommissioned and our best offshore engineers move abroad to work in other markets. Will she meet me and other Scottish Conservative colleagues to discuss the matter further?

As was mentioned by my hon. Friend the Member for Wells (James Heappey), we should be looking at a number of different energy measures. As a strategy, it is right that we look at both the top level and the micro level. I will not repeat some of the points so articulately put by my hon. Friend when talking about decentralised energy schemes and micro energy schemes, but I will just add some of the geothermal schemes. Certainly in my constituency, in Clackmannanshire, we have been looking at former mines and whether it is possible to use them as sources of geothermal heat.

[Claire Perry]

As a matter of principle, it would be a pleasure to meet with anybody. As everyone knows, my door is open. Secondly, the hon. Member for Southampton, Test (Dr Whitehead) and I had that conversation only this week. I suspect that many people know about this whole geothermal mine water thing. I am really interested in this technology. If there are groups out there that are interested in promoting this and suggesting what can be done in a cost-effective way, bring it on. Let us look at what we have actually done—we have already dug the holes—and see whether we can get some more benefit for those communities.

[Luke Graham]

I thank the Minister for her intervention. Fortuitously, Clackmannanshire is up for a city deal, so there would never be a better time for her to come and get involved in these energy projects. I will definitely be following up with her on that as soon as we leave Westminster Hall.

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

As we are all getting on this afternoon, I should like to invite the hon. Gentleman to come and see me in Southampton, to look at its geothermal energy scheme, which has been going since 1984. Unfortunately, it is still the only one in the country, but I trust that, with the Minister’s good offices, the geothermal schemes that the hon. Gentleman has mentioned could shortly get under way to join Southampton in its geothermal pioneering position. I really do commend what he is thinking about for geothermal. I think a lot of development is possible in terms of both mines and aquifers. I hope he will continue on his path of supporting that.

[Luke Graham]

I thank the hon. Gentleman for his intervention and will gladly take up his invitation.

[Antoinette Sandbach]

Given the new Thornton campus in Cheshire, which is specialising in geothermal, may I suggest that on the way to Southampton from Scotland my hon. Friend call in to see some of the leading research that is being done at the University of Chester on the opportunities for geothermal and how we can roll that out much further across the country?

[Mr Charles Walker (in the Chair)]

Mr Graham is now going to make some progress.

[Luke Graham]

I thank my hon. Friend for her kind intervention and, again, invitation. I would certainly be keen to visit both places, as my constituency arrangements allow.

Scotland has been at the forefront of every major industrial development in the UK, from the industrial revolution in the 18th and 19th centuries, to oil and gas in the 20th and 21st, so it has undoubtedly contributed to the UK’s emissions over the years, but it has fantastic potential, through infrastructure and existing expertise, to be the leader on the clean growth strategy in the UK, and to drive the UK as a global leader in economic growth through emissions reductions. I urge the Minister to put the entire UK at the centre of the Government’s clean growth strategy in the months and years ahead.

--- Later in debate ---

[Drew Hendry]

That is something to be aware of. I thank the hon. Gentleman for raising that point and look forward to the Minister’s response.

The hon. Gentleman mentioned home insulation, which must be taken forward much more rapidly—I know I am using that word a lot today, but it is important because this is somewhere where we can make a real difference very quickly. In Scotland, as he pointed out, there is four times the progress on insulation. I make that point because it is important to thank the people, in particular in organisations such as Warmer Homes Scotland, who have been on the ground, working with consumers and making the breakthroughs by talking to people and persuading them to take on the new measures. If any hon. Member in the Chamber or anyone else wants to look at that, they will see the fantastic work being done.

[Luke Graham]

The Warmer Homes scheme was a fantastic initiative. I know that some of the terms changed in 2017 because a number of constituency cases were brought to me, with people sometimes being disadvantaged. Will the hon. Gentleman join me in working on addressing some of those issues to ensure we are still reaching as many people as we can?

[Drew Hendry]

I will come in a moment or two to what the Scottish Government are doing.

The hon. Member for Birmingham, Selly Oak (Steve McCabe) talked about energy efficiency schemes, and in Scotland some of those are changing the housing landscape. I want to point out one of the commercial companies, a private developer from the north of Scotland: Springfield Properties. It is not only looking at more energy efficiency measures in its buildings, but in Perthshire, where it has a new development of thousands of homes, it is putting in electric vehicle charging points for every single house. That is a very innovative thing for a private developer to be doing, adding to the fact that Scotland is leading the way in electric charging for vehicles.