Edward Morello is the Liberal Democrat MP for West Dorset.
We have identified 0 Parliamentary Votes Related to Climate since 2024 in which Edward Morello could have voted.
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We've found 31 Parliamentary debates in which Edward Morello has spoken about climate-related matters.
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The hon. Gentleman is being extremely generous with his time. The Brit Valley Project in West Dorset is bringing together 43 landowners and will improve biodiversity over 4,000 acres. Every time I speak to community groups—I am sure other Members have examples of this—they want to see faster action. Does he share my frustration that politicians nationally and internationally are using the climate crisis and ignoring the science for their own political ends?
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18:59
I am extremely grateful for the opportunity to bring this Adjournment debate to the House and to make the case for greater Government support for the greenhouse gas removals sector. First, I thank the sector for engaging so openly with me about its businesses and concerns, the Minister for his continued co-operation on this issue and Dr Alan Whitehead for publishing his extremely important review.
Before entering this place, I spent almost a decade working in renewable energy, and before that on climate impact projects. I would certainly not claim to be an expert on greenhouse gas removals, but, through my work in the renewable energy sector, and now as chair of the all-party parliamentary group on climate technology and the co-chair of the net zero APPG, I have at least become a passionate advocate for the sector.
Climate change is here. It is happening now. We see it through rising temperatures and increasingly frequent heatwaves, flooding, drought and wildfires. The changing climate is already affecting our communities, businesses and public services. Much of the conversation has rightly focused on reducing our emissions, and let me be clear: decarbonisation must remain our first priority. Every tonne of carbon dioxide we avoid emitting now is better than having to remove it later. However, even if we achieve every single one of our net zero targets—and we absolutely must—we will still have a problem.
Net zero does not remove the carbon dioxide that is already sitting in our atmosphere, which is why this debate is not about carbon capture and storage, but about carbon removal. The Intergovernmental Panel on Climate Change has been absolutely clear that without greenhouse gas removals, keeping global warming within internationally agreed limits becomes effectively impossible.
Today, humanity removes only about 2 billion tonnes annually, 99.9% of which is done by trees and plants. Meanwhile, we continue adding more greenhouse gases to the atmosphere every single year. The scale of the challenge is enormous. Whenever I speak about this issue, someone invariably asks, “Why do we not just plant more trees?” I agree: trees are wonderful, and we should absolutely plant more of them. However, to keep global temperature increases below the 1.5% or 2% target, we would need to remove 10 billion tonnes of carbon dioxide from the atmosphere every single year, which would require us to plant roughly 50 million hectares of new forest annually. That is equivalent to covering the entirety of the UK with trees, twice, every single year. Even the most committed of environmentalists would accept that that approach has practical limitations.
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19:04
My hon. Friend and neighbour is absolutely right. There are many exciting nature-based solutions for which I have high hopes. In my role as chair of the all-party parliamentary group on climate technology, my focus today is mainly on the engineered solutions, but we need to consider all solutions to meet the challenge ahead.
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19:05
Technology such as direct air capture and engineered removal methods will become an essential part of moving beyond net zero towards net negative emissions. Those technologies are nascent. The businesses that will develop them need to be founded today and to scale over the next decade. They need investment, certainty and confidence if they are to become globally competitive and properly supported.
The UK’s GGR sector already contributes about £1.2 billion to the UK economy. It has the potential to contribute between £7 billion and £9 billion to GDP by 2050 while supporting more than 100,000 skilled jobs. The countries that build those technologies first will not simply reduce emissions at home; they will be central to global emission reductions for decades to come. Britain should aspire to become the global centre of carbon removal innovation, the home of future climate tech unicorns and a leading exporter of GGR technologies.
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19:07
UK start-ups struggle to access patient capital at precisely the moment they need it most. Of all climate tech early start-ups that failed, 62% fail at series A, the start of the so-called valley of death. Britain has repeatedly invented world-leading technologies only to watch other countries commercialise them. We cannot allow that to happen again.
That brings me to what I believe is the single most important proposal that the Government should consider. The answer lies in creating a British carbon bank, a Government-seeded revolving fund that will crowd in private finance. A British carbon bank would provide long-term advanced market commitments for verified GGRs. That would de-risk the purchase for the offtaker as the credits are certified, provide the capital that the GGR project needs to start capturing greenhouse gases and generating carbon credit, and improve investor confidence because there is a guaranteed purchaser. Rather than the Government attempting to fund every project themselves, a British carbon bank would create guaranteed demand for high-quality removals over many years, allowing businesses to secure investment and scale their technologies with confidence.
One particularly interesting example is Terraset, a US charity. Rather than relying solely on traditional grant funding, Terraset uses philanthropic finance to early pre-purchase commitments to vetted projects, giving those projects the capital to actually remove greenhouse gases. Those advanced commitments provide early demand, giving companies confidence to develop technologies while demonstrating to investors that a future market exists. These projects deliver verified carbon credits to Terraset, which it then sells to buyers. Any revenue generated is then returned to the fund and gets deployed into new projects. For every $1 it deploys, it unlocks $5 in private finance and achieves a 15% mark-up for credits under this de-risk model. As a result of this profit margin, it is now attracting interest from institutional investors, including pension funds.
A British carbon bank would take that principle and apply it at a national scale. It would provide a clear signal that Britain intends to become the best place in the world to develop, deploy and commercialise greenhouse gas removal. One strength of a British carbon bank model is that it addresses the greatest barrier currently facing the sector: risk. The bank would purchase future carbon removals in advance, holding those credits until they have been independently verified and certified. There is, of course, a risk for the Government that some projects may ultimately fail to deliver the promised removals or not achieve certification. However, that risk can be significantly reduced through robust due diligence and careful product selection, as organisations such as Terraset have already demonstrated successfully.
I believe that a British carbon bank could replicate this revolving model at scale, helping promising British companies bridge the gap between innovation and commercial success. Net zero is today’s problem, and net negative is tomorrow’s, but if we do not start thinking about it now, we will not be ready to meet that challenge. We should be ambitious. We should not settle for participating in the market—we should aim to lead it.
Will the Minister confirm precisely when the Government intend to publish their full response to the Whitehead review, and whether that will be before the House rises for the summer recess? Will he confirm whether the Government are giving serious consideration to the proposal for a British carbon bank or revolving fund to provide the long-term market certainty the sector has consistently called for? If the Government are not yet in a position to introduce longer-term reforms, what interim measures will they take to ensure that promising new UK GGR businesses are supported and not lost overseas while policies are being developed? Finally, will the Minister commit to continuing to work closely with the sector over the coming months, listening to businesses, investors and researchers, so that the UK can seize the opportunity to become a global leader in greenhouse gas removals rather than watching others move ahead?
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The Liberal Democrats support reforms that strengthen and improve the operation of the CfD scheme and accelerate the transition to cleaner and cheaper renewable energy. We will continue to support the expansion of fixed-price renewable contracts to break the link between electricity prices and gas prices, but although we support the draft regulations, we believe that further reforms of the CfD framework should be considered, including extending the lifetime of CfD contracts from 15 to 25 years, and moving all older renewables obligation contracts on to the CfD scheme.
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The UK is home to fantastic and innovative clean technology start-ups in the energy space. However, these businesses tell me that funding for start-up and, importantly, scale-up phases in this space is falling off a cliff. The net zero innovation portfolio, which awarded more than £1.3 billion in grants and crowded in £3 for every £1 in public spend, was abolished at the last spending review, and the clean tech innovation challenge has yet to get off the ground. Will the Minister explain what his Department is doing to support clean tech start-ups in this space?
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The UK should be the world leader in greenhouse gas removals, but the sector is struggling to attract funding and off-takers because of uncertainty about Government support for GGRs. Will the Government please confirm when they plan to publish their response to the independent GGRs review, and whether the Department is considering the launch of a UK buyers’ club, running along similar lines to the EU system?
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That is all a long-winded way of saying, that prior to getting elected, I spent 10 years working in the renewable energy sector, so I have a particular passion for this subject. I am also the chair of the ClimateTech all-party parliamentary group and co-chair of the net zero all-party parliamentary group. I hope that the hon. and gallant Member for Spelthorne will forgive me if I expand a little on the technological options available outside floating solar.
We face a worsening climate crisis, with more frequent extreme weather events affecting communities in West Dorset and across the UK, as well as being in the middle of a cost of living crisis, with families facing high food, fuel and energy bills, compounded by the illegal conflict started by the President of the United States. About 15% of households in West Dorset rely on heating oil, and many do not qualify for the support that has been announced. Petrol and diesel prices are rising. Red diesel for farmers has doubled in price. Fertiliser prices are rising, too, which will feed through to food prices.
Let us be clear that the answer to energy insecurity is not more dependence on oil and gas; it is more cheap British renewable energy. Under the clean power 2030 action plan, the Government want 95% of Britain’s electricity to come from clean sources by 2030—a noble endeavour. To get there, the Government plan to increase solar capacity to between 45 GW and 47 GW by 2030. That will require doubling our capacity.
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We are asking more and more of our countryside. We want it to produce food, support biodiversity, generate renewable energy, capture carbon, provide housing, and support tourism and recreation. We need guidance to identify where solar is most appropriate, steer it away from the best agricultural land wherever possible, and encourage dual-use schemes that allow land to generate energy while still supporting farmers and nature—
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15:06
One area where the UK has a huge opportunity is climate technology. As the chair of the all-party parliamentary group on ClimateTech, and having spent nearly a decade working in renewable energy finance before entering Parliament, I have seen how much potential this sector has. Between now and 2050, the world will need to remove 165 billion tonnes of carbon dioxide from the atmosphere, with annual removals reaching about 10 billion tonnes a year by the mid-century if we are to limit global warming to between 1.5°C and 2°C. The Intergovernmental Panel on Climate Change has made it clear that without carbon-removal technologies, those goals will not be met.
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15:13
Climate technology is not only an environmental priority, but a huge economic opportunity to lead a sector the world will need for decades to come. The UK’s greenhouse gas removal sector alone is now valued at £1.2 billion, with investment increasing by more than 39% in 2024—faster than the technology sector as a whole. According to analysis aligned with the Climate Change Committee’s seventh carbon budget, greenhouse gas removal technologies could support over 60,000 high-quality jobs in the UK by 2050. The Government have already taken some positive steps: funding for carbon capture and storage clusters, investment in innovation programmes, such as direct air capture and bioenergy carbon capture, and plans for new clean tech innovation challenges. Those are all important developments.
However, challenges remain, particularly when companies try to move from early innovation to large-scale deployment. Many climate technology companies face what is often called the valley of death. Early-stage funding can help to get ideas off the ground, but when companies reach pilot or demonstration stage, that funding often disappears. Data shows that although almost all seed-stage companies move forward, only one third successfully progress beyond series B investment. At that point, the technologies often require significant capital investment to scale, which requires the Government to project confidence to the sectors and investors. Without stronger support mechanisms, whether through the National Wealth Fund, the British Business Bank or other targeted policies, many promising technologies risk stalling before they ever reach market.
The UK needs a clear long-term approach to science and technology. That includes raising research and development spending to 3.5% of GDP, investing in digital infrastructure, supporting local government capacity and ensuring that the benefits of technology are spread around the country. It also means continuing to invest in green technologies, which is essential if we are to tackle the climate crisis, while creating new industries and job opportunities. The UK has many of the ingredients needed for success: world-class universities, strong research institutions and an entrepreneurial technology sector. What we must do now is make sure that the environment is right for those companies to grow.
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11:31
Amendment 213 would introduce a vital safeguard, which the Government refused to put in place earlier when they rejected our new clause 26, to prevent Great British Railways from hiding from accountability to those who gave both it and the Secretary of State their power. The amendment would require regular reporting to Parliament and the Transport Committee. The Secretary of State for Energy Security and Net Zero has agreed to provide an annual update to Parliament on how we are doing against our climate and nature targets. I would hope that what is good enough for the Department for Energy Security and Net Zero is good enough for the Department for Transport.
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14:16
I will speak to new clause 20, which makes the simple ask that Great British Railways does all it can not to contribute to the climate crisis. I hope it is uncontroversial, because the bits of legislation that we are asking for GBR to adhere to are the Environment Act 2021 passed by the previous Conservative Government, the Climate Change Act 2008 passed by the previous Labour Government, and the Air Quality Standards Regulations 2010 passed by the coalition Government.
I am deeply concerned that climate change does not appear in the Bill at all, and we tabled new clause 20 to close down that problem. At a time when extreme weather is already disrupting services, damaging infrastructure and frustrating passengers, the absence of any clear environmental duty is extremely troubling. We are already seeing the impacts of climate change on our rail network. In West Dorset, services have been severely disrupted by soil moisture deficit, alongside flooding, high winds and extreme weather. Last summer, that led to a reduced timetable, widespread delays and endless bus replacement services. From August, services from London to Yeovil Junction were cut to one train an hour, and took more than half an hour longer, while services to Exeter were reduced to one every two hours. That is the cost of not planning ahead.
New clause 20 would require GBR to take climate risk seriously in every decision that it makes. That means factoring in flood risk, heat stress on tracks, coastal erosion and extreme weather, and designing infrastructure that can cope with hot summers and wet winters. If the Bill is about the future of rail, it must account for a future that is going to be impacted by climate change. The new clause would strengthen the case for rail electrification, encourage low-carbon construction methods and ensure that procurement decisions properly consider materials, the supply chain and energy use.
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As co-chair of the net zero all-party parliamentary group, I welcome the expansion of the funding for solar and heat pumps. Prior to coming to this place, I spent the better part of a decade riding the solarcoaster, so I know for a fact that the biggest drag on solar expansion is the skills shortage. Would the Secretary of State fill us in on what the Government and other Departments plan to do to ensure that the skills are there for installations to go ahead?
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15:29
I welcome the results of the AR7 allocation. This is about protecting working families from volatile fossil fuel prices set by foreign powers that have repeatedly used oil and gas as geopolitical weapons. Relying on Trump’s America or Putin’s Russia to keep the lights on puts us all at risk. Renewable energy is the cheapest form of energy, and it is only through renewable energy that we can deliver permanently low and secure energy prices and help with the cost of living crisis, and not just today but in the long term. While procuring 8.4 GW of offshore wind puts the country on track for the Government’s 2030 clean power target, research from RenewableUK shows that is the minimum needed, leaving very little room for delays—
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That places even greater importance on AR8. I hope that the Government will commit to their timetable to open AR8 by the summer and to announce the results by the end of the year. Meanwhile, there is still work to be done to bring down bills for working families and businesses, which is why I urge the Secretary of State to look at Liberal Democrat proposals to phase out the outdated renewable energy certificate scheme and replace it fully with a contracts for difference scheme.
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15:30
I thank my hon. Friend for speaking to this important new clause, which relates to the fundamental fact that pensions are about planning for the future, and climate change is about making sure that we have a future for all. Having pension funds supporting anything that undermines the outlook for future generations should be prevented in any which way we can. I just wanted to lend my support to her wonderful amendment.
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17:28
Before I get into the action that is needed, I want to first acknowledge the great progress that has been made. The UK has halved its emissions since 1990. That is an exceptional achievement and one we should rightly be proud of, but much of that progress has been made by phasing out coal. Much of the heavy lifting on hard-to-abate emissions still lies ahead: decarbonising manufacturing, transport and agriculture and improving energy efficiency, all while protecting nature.
The key to further progress is changing the narrative. The transition to a low-carbon economy is not a cost or a burden; it is one of the greatest opportunities of our time. It can bring cheaper bills, warmer homes and thousands of well-paid jobs in the green economy. It is deeply disappointing that, having once lead the UK through varying levels of success in green technology, the Conservative party has abandoned its values and veered into climate denialism. Its recent calls to scrap the Climate Change Act just show how far it has fallen from the environmental leadership that Britain once showed.
The Government must end the sporadic nature of the climate portfolio and end the stop-start conversations with the Treasury. The £8.3 billion for GB Energy is good news—having spent a decade in renewable energy finance, I can tell Members that I would have supported that if it were £8.30—but it needs to be front-loaded, not spread out over the course of a Parliament. If we want to crowd in private investment, we have to de-risk the first 10p on the pound, not the first 1p.
There also need to be long-term secure funding streams that are accessible to start-ups and innovators. The net zero innovation portfolio was a great scheme. It invested around £300 million in early-stage climate ventures, leveraging up to £3 in private investment for every £1 in public grant funding. Sadly, it was scrapped this year. Will the Government confirm whether they intend there to be a replacement to the net zero innovation portfolio? Will they also confirm that the clean tech innovation challenge will proceed in 2026, as previously announced? In addition, I urge Ministers to commit a portion of the next round of Government carbon purchases specifically to carbon removal projects, to help to establish and grow the greenhouse gas-removal market.
We must reform how the National Energy System Operator manages battery storage. By prioritising flexible storage rather than reverting to high-emission generators such as Drax, we would be able to utilise a far greater proportion of the renewable energy that we generate.
COP30 is currently being held in Brazil, and while the world’s negotiators grapple with finding an agreement, the British public are clear that they overwhelmingly support strong climate action. They want leadership. The Liberal Democrats believe we can halve energy bills within a decade, end fuel poverty and create a cleaner, fairer and more secure Britain. In the delivery plan, the Government say that they will
Well, the Liberal Democrats believe in facts. We believe in science, the opinions of experts, and the inalienable truth that climate change is an existential crisis. We are here to help to improve that delivery, explore those further measures and ensure that our generation meets our commitment to future generations.
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09:37
Migration and global instability do not begin at our borders. They begin when climate change destroys livelihoods, when wars displace families and when hunger drives desperation. Compassion and prevention are not opposites of security; they are the foundations of it.
Climate change remains the single greatest threat we face. Carbon knows no borders; it does not respect treaties or national boundaries. If we cut funding to those on the frontline of climate vulnerability, we are cutting our own future resilience. Whether that is in the Caribbean, the Sahel, the middle east or the Pacific, our partners need leadership, and Britain should be that leader.
The Government’s commitment to meet their £11.6 billion international climate finance pledge by 2026 is welcome, but it is increasingly hollow if other aid streams are being dismantled. We cannot claim climate leadership while simultaneously cutting the very funds that protect vulnerable nations from its impact and help them to decarbonise sooner. The UK has always been at its best when leading with principle and pragmatism. We led on eradicating smallpox, on fighting HIV/AIDS, on girls’ education, on tackling modern slavery and, of course, on the creation of the United Nations.
Today we must show that same moral courage. The cuts to the ODA budget are not only a betrayal of those values, they are a strategic mistake. Every pound we invest in aid saves far more in the long term, by preventing wars, stopping pandemics and reducing the need for emergency interventions. We live in a globalised society. Our economies, supply chains and security are inter- connected. Disease, conflict and climate crisis spread across borders with ease. To imagine that Britain can isolate itself from those realities is naive; if we fail to act abroad, we will pay the price at home.
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16:51
Sustainable aviation fuel offers us a route to decarbonise one of the most carbon-intensive industries and to secure the future of our aviation sector in a way that is compatible with our net zero goals. Climate change remains the greatest challenge of our time. It is an existential threat to us, our children and our grandchildren, and every decision made in this House must be measured against the scale and the urgency of the crisis.
Aviation, while connecting people and driving our economy, is a contributor to the problem. In 2022, it was responsible for almost 30 million tonnes of CO 2 , equivalent to about 7% of the UK’s total emissions. Even as emissions from other sectors decline, aviation’s share is projected to rise to 16% by 2035. That is not compatible with our net zero targets, nor with our moral obligation to keep global temperature rises below 1.5°.
Sustainable aviation fuel is not a silver bullet, but it is a step towards addressing the challenge. As someone who spent almost a decade working in renewable energy, I have seen how technology, innovation and the public trust must work hand in hand if we are to make lasting progress in addressing climate change. However, with innovation must come accountability, which is why I have tabled new clauses 4 and 5. These new clauses would strengthen this Bill and aim to make the transition to clean flight more accountable, more transparent and, yes, more ambitious. New clause 4 would support the Secretary of State to raise sustainable fuel targets in any given year and introduce a duty to consider annually whether the target should be increased. The Secretary of State would also be required to set out what steps the Government will take to make any increase possible. In short, to ensure that the Government cannot forget the targets, it would require them to revisit, review and, wherever possible, raise their ambitions for cleaner flight.
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16:54
I think I thank the hon. Gentleman for his intervention. I am afraid that I do not agree that increasing reporting burdens on industry is a bad thing. Every industry will argue that reporting is onerous. The liturgy starts with water companies. Companies will hide behind not having to report. On the need to move forward with technology, I am reminded that Henry Ford once said, “If I asked people what they want, they would say a faster horse.” The reality is that technology will be the route to our achieving our net zero goals, and this is one step on that pathway.
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12:10
Natural disasters like the earthquake in Jalalabad, recent wildfires and floods are becoming more and more frequent as a result of climate change. Support for Ukraine and for Gaza have survived the disastrous cuts to ODA, but what assessments has the Department made of the impact of ODA reductions on countries facing humanitarian and natural disasters, and can the UK still provide the amount of aid needed to prevent displacement and migration as a result of those crises?
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The right hon. Member raises a very important point: the Government may be cutting funding for farming, but they are very much pursuing climate change goals. Farming is facing periods of extreme weather—we have just had some of the driest and wettest months on record. One of the great successes of gene editing was dwarf wheat, which was drought resistant and allowed places such as Mexico and India to become net exporters of food. Would pursuing gene editing for British farmers not offer them protection against climate change and therefore protection against cuts to the farming budget?
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12:59
This crisis speaks to a wider failure. The UK still lacks a proper plan for a just transition that gives oil and gas workers real confidence about what comes next. We need to wind down fossil fuels in a way that provides genuine opportunities—well-paid green jobs, clean energy infrastructure, and proper support for the communities that have long powered this country. As other parties embrace climate denialism and internet conspiracy theories, the Liberal Democrats call on the Government to ensure that we do not backtrack on our climate targets, undermine green investor confidence, and abandon our leadership on the world stage when it comes to climate change.
First, what steps are the Government taking to ensure that contingency plans are in place, so that those whose jobs are at risk are guaranteed support and opportunities to redeploy their skills? Secondly, how are the Government ensuring that investment in skills and regeneration is targeted, so that it has the greatest impact where it is needed most? Finally, what steps are the Government taking to ensure that the transition to renewable energy makes the best use of the skills and experience of oil and gas workers in the places affected, such as the Humber estuary?
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14:54
I should declare that prior to entering this House, I spent the better part of a decade working in renewable energy finance. While I would not claim to be a solar expert, I could certainly write a whole speech debunking things that have been said today. For the record, solar panels have a lower carbon footprint per unit generated than the equivalent fossil fuel. They are 95% recyclable, and any solar farm development requires a glint-and-glare report before it gets approval if it is anywhere near an Air Force base or an airport. I will move on, because I could go on for a long time.
Those of us who believe in science know that tackling climate change means making bold, practical choices about how we decarbonise our economy. If we are serious about reaching net zero, tackling fuel poverty and protecting our countryside, we have to make renewables work for people as well as the planet. I have often made the point that the solar sector is not particularly good at communicating the benefits of a just transition to the population at large, so let me be clear: solar power means cheaper bills for consumers, protection against geopolitical insecurity and a greener future for the next generation.
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15:00
We have made substantial progress on decarbonising our power grid: a decade ago, just 6% of our energy came from renewables, and today, the figure stands at 42%. That is a national achievement we should be proud of, but we must go further, not just because the climate emergency demands it, but because renewables are the cheapest source of energy available.
Liberal Democrats believe strongly in expanding use of solar and other renewables to reduce our dependence on fossil fuels, improve energy security and bring down bills. Crucially, we believe that this must be done while protecting our natural environment. A strategic land use framework is essential if we are serious about delivering net zero while safeguarding our ability to produce food and restore nature.
Planning policy should not be dictated solely by where grid connections are available, but by a long-term vision of how we want our land to be used. It is a common claim that instead of putting solar panels on fields, we should put them on rooftops and car parks. I do not disagree, but having worked in the sector, I feel obligated—I make this point a lot—to explain the commercial realities. If utility-scale solar costs 50p per unit to build, rooftop solar is roughly double that, and carports double that again. Meanwhile, energy companies pay as little as 5p or 5.5p per unit for energy exported to the grid. That means that pure-export rooftop and carport solar does not stack up financially for investors, but that is something that the Government can fix. By mandating a minimum export price, we could unlock rooftop and car port investment, reduce pressure on farmland and cut consumer bills. Yes, wholesale energy buyers would earn a little less, but consumers, communities and the climate would all benefit. This is an easy win for a Government who have stated their commitment to net zero.
Ground-mounted solar will invariably remain part of the energy mix, and we cannot reach our climate targets without it, but projects must be done right, which means prioritising lower grade land and ensuring that new schemes come with tangible benefits for the communities they affect. Community benefit funds should receive a fair share of the wealth created. My hon. Friend the Member for Taunton and Wellington (Gideon Amos) has tabled new clauses to the Planning and Infrastructure Bill to deliver just that, alongside local authority powers to invest in energy efficiency and support street-by-street upgrades to reduce bills. In Scotland, for example, community benefit is worth £5,000 per installed megawatt per year. That means that a controversial large-scale solar project, such as the Kingsway solar farm in the constituency of my hon. Friend the Member for South Cambridgeshire (Pippa Heylings), would provide £2.5 million annually to the local community. That is the scale we should be talking about, and it must be the community that determines how and where that money is spent.
Today, about two thirds of UK solar is ground-mounted, but rooftop solar has a critical role to play and the Liberal Democrats are proud to be leading on that issue. We welcome the Government’s decision to adopt our policy of mandating solar panels on the roofs of new homes, which is a core part and first step of our rooftop revolution. We also call on Ministers to go further, by requiring new homes to meet net zero building standards and include provision for solar generation. When it comes to delivery, Liberal Democrats in local government are showing what can be done. From Barkham solar farm in Wokingham to Sandscale park in Westmorland and the thousands of car park panels installed in Portsmouth, we are delivering clean energy at scale, backed by communities.
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16:59
To answer the question from the hon. Member for Farnham and Bordon, 35% of China’s energy is renewable energy, which is up from 0% 15 years ago. By the end of this decade, given the rate at which it is expanding, China will be responsible for 60% of the globe’s renewable energy production.
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The Inter-governmental Panel on Climate Change has made it clear that by 2050, we need to be removing 10 billion tonnes of carbon from the atmosphere every year if we are to stand a chance of keeping below the 1.5° target. It is clear that carbon removal, and not just carbon capture and storage, will play a critical role in our avoiding a climate disaster. In the face of the Conservative party once again embracing climate denialism, what steps will the Government take to support the research, development and deployment of carbon removal technologies to ensure that British companies become leaders in this emerging sector?
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12:24
In the recent advice for its seventh carbon budget, the Climate Change Committee highlighted the urgency of ensuring cheaper electricity so that households can transition away from gas heating. When will the Government act to improve energy security and reduce costs for the households seeking to adopt low-carbon heating by reforming policy costs on energy bills?
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16:18
At the same time, we must address the deeply concerning cuts to ODA. The UK has long been a world leader in international aid, and we are the fourth highest donor in absolute terms. The Government’s decision to reduce our aid budget risks undermining our ability to deliver on those commitments and the ones we have made to the world’s most vulnerable. The Prime Minister has rightly stated that the UK will prioritise Ukraine, Sudan, Gaza, climate finance and global health, but with a shrinking budget, delivering on those priorities will be close to impossible.
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Finding a pathway to a just peace in Ukraine, a workable solution for the Palestinian and Israeli people, security for Europe and a united global approach to tackling the climate crisis, as well as the many other issues facing the world right now, in the face of a US Administration seemingly intent on joining malign states like Russia and Iran in rejecting international norms, requires the UK to be centre stage in international relations. Having a Foreign Office able to project British influence has never been more important. I urge the Government to set out a clear path on how we will maintain our diplomatic and development commitments in this increasingly uncertain world, and to ensure that Britain does not become just “some random country” but continues to play its historic role in global affairs.
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10:06
It is a pleasure to serve under your chairship, Mr Western. I thank my hon. Friend the Member for Bath (Wera Hobhouse) for securing this important debate. I declare that prior to being elected, I spent the better part of a decade in renewable energy finance. While I would not claim to be an expert, I hope to bring some useful insights to this debate.
Between 2010 and 2021, the global average cost of electricity generated from a renewable energy source over its lifetime declined by 88% for solar, 68% for onshore wind and 60% for offshore wind. Yet, even as renewable energy has become drastically cheaper to generate, the wholesale cost of energy to consumers remains high. It is simply unacceptable that companies are making vast profits while households, particularly in rural areas, are struggling to afford the basic necessity of heating their home.
The Government could solve this problem by delinking fossil fuels and renewable energy pricing, as other countries do. Our wholesale energy price would then be the weighted average between the two, which would bring us on a par with the energy prices of other nations. Far more importantly, it would also reduce the cost to consumers. The Government must take decisive action to break the link between gas prices and electricity prices. The previous Government promised to review electricity market arrangements, and this current Government should do so. Creating a separate market for renewables and fossil-fuel generated electricity would make energy fairer and more affordable to consumers.
I will make one other appeal for action by this Government. It is a trope often repeated that we need to put more solar panels on roofs and car parks, rather than farmland. I do not disagree, but the trope fails to recognise that doing so is commercially unviable. If utility-scale solar—this is an oversimplification—costs 50p per unit to build, commercial rooftop is double that, and carports double that again. The value paid by energy companies for exported renewable energy is often as little as 5p or 5½ p per unit, so utility scale is the only solar that works as a pure export model. That unit of electricity is then sold under a green energy tariff to consumers at a vastly inflated price. The only people who benefit are the energy companies.
Again, the Government have a relatively straightforward fix at their disposal: mandating a minimum export value. Yes, energy wholesalers will make less money, but I can live with that. More importantly, it would unlock investment in rooftop and carport solar, end the competition between food production and net zero, and ultimately reduce costs for consumers. Those are easy wins for a Government who claim to be committed to fighting climate change. Instead of following the advice of industry, the Government have chosen to axe winter fuel payments, stripping vital support for many of the poorest pensioners at a time when energy bills remain high—a decision that should be reversed.
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10:31
I am struggling with the argument of renewable energy not being cost-effective. For the cost of the amount of generation that Hinkley C would deliver, we could deliver twice as much renewable energy generation. The strike price for offshore wind is far below any other source of electricity. So I am at a loss—across every single form of renewable energy, the generation price is below that of fossil fuels.
The hon. Lady talks about the previous Government being at the forefront of renewable energy generation, when they signed off new drilling licences for North sea oil. I feel I am living in cloud cuckoo land. There is no connection between what she is saying and the reality of market forces. Ask any wholesale energy price provider what their strike price is for renewables, and they will say that it is lower than for fossil fuels.
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I will confess that before being elected to this place, I spent 10 years in renewable energy finance. It is a common claim from certain activists and newspapers that we should put solar on commercial buildings. I do not disagree with that. The problem is the economics of it do not stand up from a finance perspective. Until the Government step in to guarantee a minimum amount of value for export, rooftop solar will never stack up. Neither will carport solar. That is why investors will always go for utility-scale. Does my hon. Friend agree that if we actually want to see a catalyst, if we want to see a change, if we want to see farmers growing crops and not solar panels, the Government need to step in and regulate the market?
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10:53
I thank my Dorset neighbour for giving way. As always, I find myself agreeing with a lot of what he says, not least on the cost of inaction being far greater than the cost of action. He makes many good points about the fact that we have outsourced our carbon emissions to places far away, but does he agree that we often fail to sell the opportunities around tackling climate change, especially for British businesses, such as those provided by tidal and wave technologies? We should celebrate those opportunities. The Government talk about growth; there is so much opportunity for growth in this sector, and we should do more.
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11:07
I thank my hon. Friend for securing this debate. On the point about the reduction in food security—I think it is actually below 60%, at 58%—he, as my constituency neighbour in the west country, will know the importance of the role that farmers and food producers play in our community, but we have also just seen 18 months of the wettest months on record, following swiftly on from one of the driest summers on record, in 2022, and we know there will be a devastating effect on food production as we see increased extreme weather conditions. Does my hon. Friend agree that climate resilience and action on climate change will also be an important part of the national resilience strategy?
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T3. Family farms across West Dorset fear closure as a result of the Government’s planned changes to agricultural property relief and business property relief, and I urge Ministers to rethink the policy. The Budget also included the announcement of a UK carbon border adjustment mechanism to be introduced on 1 January 2027. That will place a carbon price on goods imported to the UK, including fertiliser. A carbon tax on fertiliser will only increase the cost of production for farmers struggling to compete with cheap imports, and drive up costs for consumers. What assessment has been made of that?
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10:08
Climate change means that West Dorset faces a growing flood risk, with increasingly frequent heavy rainfall flooding fields, making roads impassable and turning villages like Stratton and Maiden Newton into islands. Last year, 700 properties in my hometown of Bridport, including a school and a vital healthcare centre, were put at risk by flooding. What steps are the Government taking to ensure that the necessary funding and resources are available for flood prevention and emergency response in rural constituencies like West Dorset, where large geographical areas can create additional challenges?
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The Secretary of State will know that it is vital that we reduce our global greenhouse gas emissions if we are to avoid the worst ravages of a climate crisis that is already manifesting. Given that this deal risks incentivising hard-to-abate businesses to continue with business as usual, will he outline what steps the Government intend to take to ensure that those industries also invest in reducing their emissions?
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15:14
As an environmentalist, I am delighted that we now have a Government who seem to understand the importance of tackling the climate crisis and who recognise the vital part that renewable energy will play in achieving net zero. Having spent a large part of my career in renewable energy, I will be urging the Government to go further and faster if we are to avoid the worst ravages of the climate emergency, which is already unfolding. The Liberal Democrats will continue to champion the need for action in this House.
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