Clean Growth Strategy

Rebecca Pow Excerpts

Thursday 12th October 2017 Commons Chamber

[Claire Perry]

I would be happy to meet the hon. Gentleman. He will be pleased to hear that in the automated and electric vehicles Bill, we will be bringing forward new powers to make sure that all these things he has talked about in terms of statutory powers are at our disposal, because we want to have the world’s best rapid charging network.

[Rebecca Pow (Taunton Deane) (Con)]

Unlike some Opposition Members, I wholeheartedly welcome this strategy, with its commitment to the low-carbon transformation. It will have enormous spin-offs not only for the environment but for business, as was so eloquently outlined by my right hon. Friend the Member for Newbury (Richard Benyon). Home energy efficiency is a key part of our drive towards our targets, so will the Minister update us on what is being done to encourage house builders to play their part in this eventual drive towards zero-carbon homes?

[Claire Perry]

As I have mentioned, we need to look closely at new building regulations and sequence those appropriately. My hon. Friend will see that we are keen to ensure that we phase out having houses off the gas grid, as many in my constituency are, where they currently rely on what can be high-cost fossil fuels; we will start with new homes. That is a process of working with the industry, as getting people to think about energy efficiency happens not just because someone is sitting at home, but often because a builder, architect or plumber recommends it. We therefore need to work much more closely with industry to deliver on these targets.

Retail Energy

Rebecca Pow Excerpts

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

No. I have been determined from the outset to eradicate the abuse that the CMA has identified. It seems to me that if £1.4 billion of abuse has been identified, it is essential that that is eradicated. This problem is specific to modern markets—without the smart meters that will provide some relief from that—which is why it is important to provide interim measures, as the minority report of the CMA said. It is right to act on that. Everyone agrees—no one thinks that the market is fully competitive. The CMA in its majority report identified that the market was not functioning in a fully competitive way, and Ofgem said as much yesterday. As far as switching goes, in the last year only 16% of consumers switched, so 84% of the population did not. Until competition is fully established, it seems to me that people in that category deserve the Government to be on their side to ensure that they cannot be ripped off.

[Rebecca Pow (Taunton Deane) (Con)]

I congratulate the Government on putting the consumer first. It is a shocking revelation that £1.4 billion is being overpaid by consumers on their bills, so I welcome the fact that the Government are taking this seriously. Many of those customers are in Taunton Deane and many are the most loyal customers. Does my right hon. Friend agree that the only way to deliver best value for those people is through a truly competitive market and that nationalisation would certainly not be the answer?

[Greg Clark]

I agree with my hon. Friend. Many consumers who are loyal to a supplier, often for many years, assume not that they will get the best deal, but that a trusted brand will respect their loyalty and not abuse it. However, as the CMA has pointed out, that is not the case, and I think it is important that the issue is addressed before competition is fully established. As Ofgem said yesterday, highly priced, poor-value standard variable tariffs have had their day, and the energy companies should act to move customers away from them.

Oral Answers to Questions

Rebecca Pow Excerpts

Tuesday 27th June 2017 Commons Chamber

[Mr Speaker]

I am sure the hon. Lady’s ministerial peers in other countries—to whom I think she referred earlier—must have felt keenly conscious of their great privilege in meeting her.

[Rebecca Pow (Taunton Deane) (Con)]

I would like to applaud this Government’s record on tackling carbon emissions. Our carbon reduction plan, alongside investment in new technologies and ratification of the Paris agreement, will make us world leaders in this field and create many more jobs—particularly, I hope, in Taunton Deane, with spin-offs from Hinkley Point, the lowest carbon energy development in Europe. Can the Minister give any further indications of how the Government are responding to the United States’ withdrawal from the Paris climate change agreement?

[Claire Perry]

Even those who do not think that this is a pressing international issue must surely welcome the fact that there are now more than 400,000 people employed in this industry—more than in the aerospace sector. Britain has shown, in the G7 and the Environment Council meetings, that we are absolutely prepared to stand shoulder to shoulder with our European and international partners to make up any deficit caused by Mr Trump’s withdrawal.

Oral Answers to Questions

Rebecca Pow Excerpts

Tuesday 14th March 2017 Commons Chamber

[Margot James]

Although support for businesses in Scotland is largely devolved, the British Business Bank funds a vast number of companies in Scotland. It has provided £415 million of finance for Scottish companies, including through start-up loans. In addition, more than 1,600 companies in Scotland benefit from the enterprise finance guarantee scheme.

[Rebecca Pow (Taunton Deane) (Con)]

Small and medium-sized enterprises are the backbone of the south-west, and much effort is being put into upping productivity in the region. We in Taunton Deane welcome recent Government investment in a lot of infrastructure and the work that is being done on skills. However, to give us a real fillip, will the Minister, or perhaps someone else from the Department, agree to come to Taunton’s annual business conference on 6 June to give a boost to the things that the Government can help us with?

[Margot James]

I thank my hon. Friend for such a wonderful invitation. Although I have already been to the south-west, I am sure I can find an occasion on 6 June to do so again.

Green Investment Bank

Rebecca Pow Excerpts

Wednesday 11th January 2017 Commons Chamber

[Mr Hurd]

I will pass over the bizarre claim that the GIB is a Labour success story by virtue of its simply being mentioned in a 2010 manifesto, with nothing done for 13 years in government prior to that. This meant that in 2010, we started with far too low levels of clean energy in this country—a situation transformed by the coalition Government.

Again, I caution Members against making assumptions on the basis of speculation in the media, and I am not going to comment on that or identify any bidders.

The hon. Gentleman reflects the different view across the House about the benefits and values of the private sector. He should be aware, holding the position that he does, that we need to mobilise a huge amount of private capital. It is private capital, not public capital, that is going to make the difference when it comes to the big shift in infrastructure. What he misses is the critical role that the state has played in setting up the GIB to correct a market failure.

The fact that we have run a competitive process and that private sector bidders have come up and said, “We want to buy this as a going concern because of its green specialism,” indicates that the market failure has, to a large extent, been corrected. The fact that this institution has mobilised billions of pounds of private capital into this critically important area of infrastructure is a success story. Our whole instinct now is that because we want it to do more, it will do more and be an even more successful institution in the private sector as a going concern.

[Rebecca Pow (Taunton Deane) (Con)]

The Government have always been clear that the GIB was designed with a view to a possible transfer to the private sector, so will the Minister assure the House that the purpose of the GIB is, and will remain, green investment? I know that the Minister is dedicated to environmental issues, so will he also assure us that we will stick to our laudable manifesto pledge of leaving the environment in a better situation than we found it?

[Mr Hurd]

I thank my hon. Friend for her positive observation, and I pay tribute to her record and her absolute integrity and authenticity on protection of the environment and climate change, which are well respected across the House. I can give her this assurance. We have put before Parliament the whole procedure for protecting the green purpose of the GIB through the special share arrangements. It will be held by an independent company and it will have the power to approve or reject any proposed changes to the GIB’s green purposes. This is going to be set in company law. The five trustees were announced on 31 October 2016, selected through a genuinely independent process. If my hon. Friend looks at the names, she will see that they are independent and extremely credible. That is the mechanism that we have set out. I return to the point about the objectives of the sale. We want this to go into the private sector, so that it can do more of what it is doing—unfettered by the inevitable restrictions that the state has to put on it at this stage.

Corporate Governance

Rebecca Pow Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

I will indeed. It is important that we maintain and extend our reputation for being the place in the world where business is done best. We have been able to make that proud boast over the years. The representation of women on boards is of great importance, and we are looking at how we can best encourage companies to move in that direction.

[Rebecca Pow (Taunton Deane) (Con)]

I welcome this report on corporate governance, but is not one way of improving corporate governance on boards to encourage more women to get on to those boards?

[Greg Clark]

Yes, it is, and I hope my hon. Friend will welcome the proposals we are making.

South-west Growth Charter

Rebecca Pow Excerpts

Tuesday 22nd November 2016 Westminster Hall

[Mr Streeter]

My hon. Friend is a powerful advocate for his region, and I know he speaks to the Government. I am sure he knows that, by sheer coincidence, the Peninsula Rail Task Force’s 20-year plan will be launched at 11 o’clock this morning. The plan will spell out the improvement we seek to our rail infrastructure, and it will include the measures he mentions to equip our region for the 21st century.

Road and air transport are critical too, but it is not only about traditional infrastructure; it is also about wider connectivity. Big strides have been taken as part of the Government’s push to increase digital connectivity, but more needs to be done. As Bill Martin, the editor of the Western Morning News, has said, the south-west is known as

“the region where every telephone conversation ends with the word ‘hello’.”

Digital connectivity is more important than ever in this 21st-century world, so making a success of the digitally enabled economy is critical, particularly for our region where peripherality is our challenge and connectivity is the solution. Now that people can do anything from anywhere and now that we have excellent universities in our region, connecting ourselves will continue to make us the most attractive and wonderful place to live, work and raise a family.

[Rebecca Pow (Taunton Deane) (Con)]

I thank my hon. Friend enormously for securing this important debate. Encompassing everything, does he agree that the south-west has been very much neglected and left out? The Government ignore us at their peril, because we could be a powerhouse not just for ourselves but for the country.

[Mr Streeter]

There is no question in my mind but that we have not seen the investment that we might have wanted from Governments of all colours over many years, particularly over the past 30 years. Now that we have come together to speak with a single powerful voice, I believe we will see that change. The Government are listening to us.

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[Rebecca Pow (Taunton Deane) (Con)]

I feel like I ought to go like a train, Sir Roger, in the time limit, but not like the trains that were running out of the south-west yesterday, which were not going at all. I sometimes feel like I am the Boadicea of the north of the south-west region, and that my hon. Friend the Member for South West Devon (Mr Streeter), who so gallantly brought this debate to the House, is like the Alan Sugar of the south of the region, but in between, we have a myriad of talent. We are a talented force and we are joining forces and working together for our region.

We should not be underestimated. As my right hon. Friend the Member for East Devon (Sir Hugo Swire) said, the south-west Conservative MPs won the election—to get political about it. There are 51 of us and we should not be underestimated. We came into this House on a manifesto promise to increase productivity in the south-west, and we are determined to do that but we cannot do it without the right framework behind us. We already have so much going in the south-west; we are achieving a lot. We have a lot of top-quality businesses and companies, but we could do more with the right framework, so I urge the Minister to listen and not to take us for granted.

One must always have a plan and a strategy, and we do. We have the south-west growth charter, and we also have our local enterprise partnerships working. We have a really solid framework from which to work. We are not working individually—although we all have our individual bids—but as a team, particularly on infrastructure and our particular asks.

In the time I have I will focus on just a couple of areas: skills and infrastructure. As I said, we already have some top-quality companies in my constituency. I must mention the Claims Consortium Group, with its Investors in People gold standard, the Ministry of Cake, Peter Brett Associates, Albert Goodman, Francis Clark, and Viridor, which is under the Pennon banner. There are so many of them, all doing great work, but they could all do more. So often, we find it difficult to attract the right talent and keep it in our region, and that is something we need to concentrate on. I applaud the Government’s apprenticeship scheme—I think it will work well—but we need to work more. I have the first nuclear apprenticeship degree in my constituency, being run through Bridgwater and Taunton College, and, as has been said, we need to build on the nuclear strength we have in the south-west.

We need to build on health, aerospace, textiles and marine —the things we are really good at and strong in already—but it is important that we work with the region as part of the Government’s industrial strategy. We must ensure that we do not miss out on any designations that are being handed out under the strategy outlined in the Green Paper. We need to be part of the bidding process but we need to win, and we must not be hampered if we do not happen to have signed a devolution deal yet. We are already doing good work and we must not be hampered, or even penalised.

I will just mention AgustaWestland, as many people who live in my constituency work there. I had a very good meeting with the company. It employs 17,500 people across the south-west. It particularly urges innovation and investment in science and technology, with which I think we would all agree.

[Marcus Fysh (Yeovil) (Con)]

Will my hon. Friend give way?

[Rebecca Pow]

I will give way to my hon. Friend, because the company is in his constituency.

[Marcus Fysh]

Yes, that is a wonderful industry and we need to focus on it and raise its skill levels. Investing in infrastructure is absolutely fundamental to what we are trying to achieve in the area.

[Rebecca Pow]

My hon. Friend is right. The company stressed to me that it is not just about wanting engineers to build helicopters but about attracting young people into the area to be those engineers. The industry is inspirational and is going somewhere. We need the seed-corn money from business, and grants for medium and small companies so that they can start to do research in that field. We can do that in the south-west; we can build on it and we can all take advantage of it.

I just want to throw in that we need a university. We are warm-hearted in Somerset, but we are a cold spot where academia is concerned. I would like to speak to the Minister about how we ease the numbers game so that we can apply to be a university.

I will sum up on the infrastructure note. We all agree that we have lots of ideas but the Minister needs to bring it on. We want to see the spades in the ground. I want to see the A358 come to fruition before the next election. We have to have junction 25 upgraded, we have to have the A303, and we have to have the road to Barnstaple done. They all work together. I ask the Minister to put some money back into growth deal 3. It was almost in the bag, but the bag seems to have been opened and the money has been let out. Please can we have that, devolution or no devolution?

We can do it in the south-west. Give us the tools and we will deliver, but do not destroy our beautiful environments at the same time. We are a spectacularly stunning region. We can make the economy work but we can also make it work in a glorious environment.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

Thank you, Sir Roger, for that incendiary opening remark. It is a pleasure to serve under your chairmanship and it is an absolute delight to take part in such a generally wise, good-natured, warm and constructive debate. It is a particular delight for me to look round Westminster Hall and see the serried ranks of Conservative MPs from the south-west, and even the conservative Member from the Opposition, the excellent right hon. Member for Exeter (Mr Bradshaw), who in so many ways shares so many of our inclinations.

I congratulate my hon. Friend the Member for South West Devon (Mr Streeter) for calling this debate on a very important area and set of issues. We have already heard reference to Boadicea and Sir Alan Sugar from my hon. Friend the Member for Taunton Deane (Rebecca Pow), but I like to think of my hon. Friend the Member for South West Devon as a kind of Abraham—a patriarch of the south-west, bringing his wisdom to bear and providing moral and spiritual, as well as parliamentary, leadership.

We have heard some excellent contributions. Not everyone is still in their place for reasons we perfectly understand. I have heard strong support for the area, the skills and the genius of the south-west; concern about infrastructure and connectivity; recognition of the Government’s achievements to date; and a desire for Government to step forward and do more. I will not run through all of the excellent contributions we have heard, Sir Roger. It is testimony to your brilliant chairmanship that the imposition of a self-denying ordinance, an interesting contradiction in terms, has had the excellent effect of enlisting so many outstanding and brief contributions.

Let me just point to one or two wider considerations in response to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) and pick out some aspects of the industrial strategy, before turning to where we are with the south-west. It is fair to say that there is not a Member of this House who does not believe in the importance of economic growth. If there are any, let us invite them to consider the alternative, which is not only painful but regressive. Economic growth is a very important part of our lives and is likely to always remain so. It is also important to attend to the kind of growth that that implies, which is not always the same. We have seen boom and bust over the last few years nationally and that is not attractive. What we are looking for, and what I know colleagues across the south-west are looking for, is a sustainable basis for long-term economic development—and rightly so. That must be development that enhances the genius of the people involved to create higher productivity and greater real wealth.

If we look at the industrial strategy, the hon. Member for Newcastle upon Tyne Central suggested that somehow it is some great failure. The Government have talked about industrial strategy almost continuously since they were appointed and are undertaking a very careful, considered process of framing a consultation document to be launched in the next few weeks, which will invite every section of our society, not just businesses and corporations, to contribute and reflect on what could be the source of that long-term economic growth.

[Rebecca Pow]

On my point about AgustaWestland and other businesses, will the Minister ensure that we are investing enough money in business-oriented innovation and science, so that we can build a solid future, not a one-off industrial strategy, for our young people in particular?

[Jesse Norman]

It would, I think, be injudicious of me to anticipate announcements to be made over the next few days and, in some cases, already trailed. There has certainly been widespread speculation in the press about great support for research and innovation, including the development and technology side of the equation. We have already seen that. The structure of the Government being focused on trying to concert better relationships between sources of research, be they industrial or commercial, and the development and commercialisation of those technologies, makes that very clear. We will see a lot more of that over the next few weeks.

Paris Agreement on Climate Change

Rebecca Pow Excerpts

Wednesday 7th September 2016 Commons Chamber

[Barry Gardiner]

My hon. Friend is absolutely right, but I really hope that we can make some progress this afternoon. The right hon. and hon. Members in the Government Front Bench team know that I have respect for them and that I do not seek to be partisan on this matter, but I will attack them if they do not keep to their commitments and I will continue to do so.

[Rebecca Pow (Taunton Deane) (Con)]

I have great respect for the hon. Gentleman, and this has been very much a cross-party debate on climate change, but the heart of the commitment on climate change is the Climate Change Act 2008, which was voted on in this House and is now part of British law. We have committed in the Act to achieve an 80% reduction in our emissions by 2050. I echo the comment made by my hon. Friend the Member for Wells (James Heappey) that the hon. Gentleman is creating an argument where there is none. The Government have not said that they will not ratify the treaty, and I fully believe that we will do so. We must think about this very sensibly, and I hope that we will continue to lead the way, just as we have done all along the line.

[Barry Gardiner]

I am delighted that the hon. Lady has referred to the Climate Change Act 2008 and to the fact that the commitments made under the Act are legally binding on us. Later in my speech, I shall examine exactly what the legislation stated and try to show precisely where the Government have deviated from it over the past couple of years. This is why we have been on a pathway of divergence rather than convergence in this House for the past two years. The bipartisan—indeed, cross-party—approach that used to obtain in the House on these matters has been severely tested by what has been seen as the Government’s backsliding on those legally binding commitments. I shall adumbrate that a little later.

Until this morning, it was not clear to me why the olive branch I had extended to the Government had been quite so haughtily ignored. Then I found out what the Minister had said to the Aldersgate Group and what the Secretary of State had quietly revealed to journalists at his departmental cocktail reception for the ladies and gentlemen of the press yesterday evening—[Interruption.] They laugh. They said candidly that they would not be publishing the carbon plan by the end of the year. Carbon plan? What is that?

This is not the kind of thing that any normal member of the public would think sounds terribly important. If I were to explain that it is really important because it is supposed to set out precisely how the Government are going to meet their carbon budget, that same hypothetical member of the public might look blank, because people do not talk in these terms. They do not talk in terms of carbon plans and carbon budgets; they talk in terms of effects, not budgets. They know that climate change is causing disruption across the world, with more flooding in some places and more drought in others, with stronger hurricanes and typhoons and with the loss of crops and arable land. They know that that is related to the emissions polluting our air and our children’s lungs, and these things are important to them.

That is precisely why we politicians agreed, back in 2008—under a Labour Government but very much on a cross-party basis—to limit the ways in which we were causing those problems. We agreed to reduce and limit those emissions that were changing the world with such devastating effect. That is why we created the Committee on Climate Change to set legally binding carbon budgets that would precisely limit the damage that we were doing, but we tasked it to ensure that we always adopted the most cost-efficient pathway, so that we could move towards the long-term target of at least an 80% reduction in admissions by 2050 at the lowest possible cost to the public, to industry and to business.

That is why this carbon plan is so important. How dare the Secretary of State let slip to a few journalists at a cocktail party that of course he will not be publishing the carbon plan by the end of this year? How dare the Minister reveal to the Aldersgate Group that he “may” find space in the timetable to publish it in 2017? May? May? I ask the Minister to read the primary legislation, which states that after the publication of a carbon budget, the Government must publish a plan to put it into effect

“as soon as is reasonably practicable”

thereafter. The fourth carbon budget was published in 2011. Five and a half years later, we still have no carbon plan. My grasp of the English language is not so weak that I would think that five and a half years, during which we have had a change of Government and a new Prime Minister, constitutes “as soon as is reasonably practicable”. And now the Minister says that he “may” get around to doing this in 2017.

Earlier this year, the Government promised that the reason for the delay was simply that they now wanted to include their measures for achieving the fifth carbon budget in the plan, which they set almost three weeks later than the legislation required. This is another area in which the Government have lost the people’s confidence. The primary legislation is very clear. It states that a carbon budget must be deposited on 30 June 12 years before it comes into effect. The Government published it before then, but they did not set it in legislation, as was required by law, until 19 July—almost three weeks late.

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[Barry Gardiner]

I was of course referring to the hon. Gentleman being a denier of anthropogenic climate change, and he knows that.

However, there are sane heads who understand that when the world’s largest superpowers ratify a climate change treaty that commits the world to a net carbon future by the second half of this century, it is time to do what President Obama said last week and

“put your money where your mouth is.”

Last year, global investment in low-carbon technology was $286 billion. The problem is that investment in developing countries outpaced that in richer nations. We are locked in a low-carbon race and we are losing. The reason I want us to get on and ratify is not because Paris is some sort of totemic environmental symbol, but because political leadership sends a strong signal to attract investment. Countries with a clear policy framework are the ones that attract investment. Countries with a stable policy framework attract investment. The UK has had neither over the past few years.

On solar, the Government plan this month to hike the tax on businesses with rooftop solar installations through a six to eight times increase in business rates. In 2015, they cut all solar subsidy for commercial installations of over 5 MW and reduced the subsidy for the rest by 65%. The Government’s own figures show that that has resulted in a 93% fall in UK solar deployment and the loss of more than 12,000 jobs in the industry.

On wind power, the Government decided to end all subsidy for onshore wind farms despite them being the cheapest source of renewable power. For offshore wind, they took away all investment certainty by announcing that they would extend the levy control framework only to 2021.

On biomass, I wrote to the Secretary of State only a few days ago to ask why regulatory changes to the tariff structure of combined heat and power biomass plants were rushed through this summer, using secondary legislation to amend the renewable heat incentive without proper consultation. No impact assessment was made of the risk to business, and trade associations estimate that £140 million of investment is now at risk.

On carbon capture and storage technology, the Government broke their manifesto promise, cancelling £4 billion of promised finance—the latest £1 billion was cancelled last year just six months before it was due to be awarded, sinking the White Rose and Peterhead projects.

On energy efficiency, the Government ditched the zero-carbon homes policy and finally scrapped their green deal policy despite having no idea about how to replace it with other household efficiency measures.

On transport, the Government reduced the vehicle excise duty incentives for low-emissions vehicles. Is it any wonder that in just four years we have sunk from fourth to 13th in the Ernst and Young index of the best places for investment in low-carbon industries?

Just to make the investment picture complete, they took the quite monstrous decision to sell off the green investment bank. A bank that was precisely set up because there was a market failure that the private sector simply could not address. By abolishing the GIB, they are now prepared to starve low-carbon industries in the UK of the investment that they need at a critical phase of development.

However, not all parts of the energy nexus are being hit by this Government. In 2013, they announced that fracking companies would pay half the tax paid by conventional oil and gas producers. The then Chancellor called the tax regime the

“most generous for shale in the world”.

CCS, commercial solar, business rates on rooftop solar, onshore wind, offshore wind, biomass, the levy control framework, the green deal—is there any part of our energy sector that I have not mentioned? Oh yes, nuclear. Hinkley—oh dear. Dithering, delay, incompetence and an overpriced contract have led to a contract for difference that will now cost the bill payer, not the Government, not the £6.1 billion originally calculated by the Government but the £30 billion as determined by the National Audit Office.

The Hinkley project has already been delayed for eight years, and the Prime Minister has now thrown in into chaos. Two and half years ago, the Government should have reviewed the project on grounds of cost. To do so after the EDF board had taken a final knife-edge investment decision is to show a level of contempt for investors in our energy infrastructure and a lack of understanding of how company boards actually take decisions, sending out the most damaging message and turning investors away from the UK as a market of preference for low-carbon investment.

[Rebecca Pow]

The hon. Gentleman is making a powerful point, but I suggest that it is all about the way one uses statistics. In this country, 16% of our energy comes from renewables, and this year 25% of our electricity is from renewable sources. He laughs, but in 2014, 30% of all of Europe’s renewable energy investment took place here. Does he not agree that that is an excellent track record, and that one of the best ways we can indicate we are combating climate change is by phasing out fossil fuel power stations, which is exactly what this Government are doing?

[Barry Gardiner]

The hon. Lady is right to say that we have had an enviable track record on the amount of our renewables and way in which they have been built up. But of course the statistics she referred to were created by the policies that previously allowed the subsidy into the renewable industry. The points that I have just been making show clearly how the Government, in the past 18 months to two years, have withdrawn those subsidies. As I said, the effect on the solar industry was a 93% cut in the projects that are now going ahead—in the panels and the capacity now being installed.

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[Mr Hurd]

Let me be absolutely clear: this Government welcome the shift in dynamic in terms of the ratification process. It is fantastically good news. As the hon. Gentleman has rightly pointed out, the important change—it has been the most important change since I was immersed in this matter in my first Parliament—is the shift in the attitude of the two biggest economies—the United States and China, This is the big game changer. Frankly, that is much, much more important than the exact timing of when we lay a command order in this place. No one is in any doubt about the commitment of the UK to this process. We have demonstrated that commitment under the leadership of successive Secretaries of State—I am delighted to see the right hon. Member for Doncaster North (Edward Miliband) in his place today—over many Governments.

[Rebecca Pow]

I am heartened by the positivity from the Minister on this subject. The fact that the United States has come forward first with the ratification is largely because Britain was leading the way on this matter. Many of these countries, China in particular, are among the biggest offenders on climate change, so to see them taking part is great. I urge the Minister to continue to lead the way, and I am heartened by his assurance that we will ratify this treaty and that we will be playing our part.

[Mr Hurd]

I thank my hon. Friend for that constructive and positive intervention. I am delighted that we are doing our bit to shift the tone of this debate, which is much needed. I will go on to address her point about how we intend to maintain our leadership and this international influence.

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[Mr Hurd]

I am about to finish. The hon. Gentleman had plenty of time to speak. He knows that I am very laid back, but he stirred me with the approach that he took. The conversations that we are having about the emissions reduction plan—the carbon plan—are driven by the conviction that we must get this right. The hon. Gentleman knows the subject well and he knows the challenge that faces us. We have to take people with us, including a set of new Ministers with critical briefs, who need some time to get on top of the issues at stake because they are so important. We need to engage with the private sector and non-governmental organisations. This has to be a shared challenge. We have to make sure that the process is properly connected with the extremely important substantive and long-term work and thinking being done about the industrial strategy, because Paris, as he rightly said, changes so much—not least because the two largest economies in the world are saying, “We are now set out on a path towards decarbonisation of our power systems and our transport systems.” If we turn that into an estimate of the investment required, it runs into trillions of dollars.

We need to get this right, and all I was saying is that that is the priority. If we can meet all those criteria—if we can do all those things—by the end of 2016, great, but the overriding priority is to get this right, and that is what drives us. I hope that that is supported by Members on both sides of the House who can see that this commitment is important for our UK national interest, as it is for our identity as a responsible global citizen.

I am going to conclude. Our primary task is to manage a risk, but all this investment and innovation, as I have suggested, is creating one of the most important economic opportunities the UK has seen—arguably since the industrial revolution. The global low-carbon market is estimated to be worth more than $5 trillion, and it is now forecast to expand rapidly in the wake of the Paris agreement. Over the next 15 years, it is estimated that around $90 trillion will be invested in the world’s energy systems, land use and urban infrastructure, and an increasing proportion of that needs to be low-carbon if our globally agreed climate goals are to be met. The UK’s leadership and experience will put UK industry in a prime position to benefit.

The UK low-carbon sector is worth over £46 billion across more than 90,000 businesses. It employs more than 240,000 people and indirectly supports many more. There is great potential for it to continue to create high-value jobs in construction, manufacturing and services. That is why—here there is a genuine point of difference with the Opposition—the creation of the new Department for Business, Energy and Industrial Strategy is such an exciting opportunity. As we contemplate the importance and the consequences of Paris, and as we go through substantive processes in the industrial strategy, we think deeply about the future of our places, industries and sectors, and about what we can do to make them more competitive and more resilient, to broaden opportunity in this country and to make the economy work for everyone. It must be right to look at how our energy decarbonisation and industrial challenges can be brought together and thought through much more effectively than in the past. I regret that the Opposition continue to shadow the Government as they would like them to be, rather than as they actually are.

[Rebecca Pow]

I thank the Minister for so generously giving way to me again. Are not the Government showing that they really have thought deeply about the situation by linking business with energy and with this new low-carbon era in tackling climate change? This shows a whole new move in the direction of this Government. Does not the Minister agree that this is absolutely the way to go if we are really serious about climate change and linking it with business?

[Mr Hurd]

I could not agree more with my hon. Friend. More importantly, the feedback we are getting from the business community on this is extremely positive, because they want the Government to join things up, and to think intelligently and for the long term. However, I have to finish my speech because Back Benchers must get in.