Michael Shanks is the Labour MP for Rutherglen.
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Full debate: Capacity Market: Consultation on Changes for Prequalification 2027
First, I will come back a little from the Peak Cluster itself to make some points about why carbon capture is important. I say that partly because carbon capture technology has been around a long time. The previous Government, in which the right hon. Lady served in various ministerial roles, drove forward investment in carbon capture, which we have continued. This is not something that just appeared in July last year; it is a technology that Governments have recognised will play an important part in decarbonising our energy system.
Decarbonising cement might not seem like a particularly important topic to a lot of people, but it is actually critical. Around 40% of UK cement and lime production takes place in Derbyshire and Staffordshire. Cement is one of the foundational heavy industries, and one of our most important substances, to underpin growth in our economy. As a result, the industry was recognised in the industrial strategy as a foundational input for growth. It is also an economically important sector, contributing around £350 million in gross value added and supporting thousands of jobs.
The challenge we have is future-proofing the industry. A number of businesses now want to buy low-carbon cement to construct their projects, but low-carbon cement is produced elsewhere in the world, so it is important to find ways to be competitive in that market. As I said in the Adjournment debate, other technologies for creating low-carbon cement exist, but they are not yet at a stage where they can be deployed at scale. Carbon capture is important, and there is no route to net zero that does not involve this technology.
I want to remind the right hon. Member for Tatton why net zero is important, although I know that not everyone will agree. Given that we are living through climate change on such a scale, we as a country should be taking our responsibility seriously to do everything we can, and this is an important part of how we tackle it. This is also an economic opportunity that not only creates thousands of jobs in carbon capture but protects thousands of jobs in the heavy industry that we do not want to see leaving this country to go elsewhere. It plays a strategically important part, along with our economic growth and industrial strategy, in how we will broadly deliver net zero.
Full debate: Peak Cluster Pipeline and Project
Safety will be at the forefront of any decision about how we take this project forward. It is absolutely critical but, as I have said, CCS is not some novel technology whose safety considerations we do not understand. It is managed, understood and regulated effectively at the moment.
Full debate: Peak Cluster Pipeline and Project
The exchange of views is important, and everyone, whether or not they are listening to this debate, should know that the Government take community engagement very seriously. We expect to see meaningful engagement with communities, but at the same time the Government have set out an ambitious plan to decarbonise our economy. That is important for a whole range of reasons, but it is also a hugely important economic opportunity for us as a country.
Decarbonising hard-to-abate sectors such as cement and lime, which are critical to our economy, is difficult. CCUS is a route to doing that. It is essential not only for meeting our climate commitments, but for the economic opportunities that it offers. Future project proposals are subject to scrutiny, high standards and a tough regulatory regime. The Government will look at all of this in the round in terms of individual projects.
Full debate: Peak Cluster Pipeline and Project
In the summary business case for the project, which is available here: https://www.gov.uk/government/publications/sizewell-c-project-summary-business-case the Department for Energy Security and Net Zero committed to providing Parliament with an annual update on the project’s progress. Alongside this, in line with reporting obligations under Managing Public Money, I am also notifying the House of the publication of Sizewell C Ltd’s annual report and accounts (ARA) for the 2025-26 financial year.
Full debate: Sizewell C: Annual Update
First, I reiterate what I said at the beginning of the statement. The shadow Secretary of State raised these concerns about whistleblowers who had been in touch with her for the first time at Department for Energy Security and Net Zero oral questions. I said to her, in that session, that if she had details, she should share them with the Department. She did that, and subsequently we have taken this matter incredibly seriously. A process has been put in place; an independent review will be conducted, taking into account the information that she has shared. If she has more information from subsequent whistleblowers, I am sure that she will share that with us.
However, it is right and proper that, as I think everyone in the House would expect, we wait for the outcome of an inquiry that will take a matter of weeks to establish the full facts, so that we can use any additional learning from it, but also so that we can continue to ensure that the country is confident that our energy system is resilient. We met the electricity demand on every single one of the days in question, although I do not doubt for a second that it was difficult on some of those days, as it was throughout Europe. The solution to that is to invest further in the stability of the grid, and also to tackle the fundamental question of why our temperatures are rising year after year, the answer to which is climate change.
Full debate: National Energy System Operator: Blackout Risk
As for the hon. Gentleman’s wider point, I agree with him. It is important for us to recognise that grid stability is foundational to everything in our energy system. That is why we are investing record amounts in upgrading the grid so that it is resilient for the future; it is also why we are looking at how we invest in, for instance, storage—which the hon. Gentleman rightly mentioned—so that we can store renewable energy that we are generating until when we absolutely need it, and have more tools at our disposal at moments of tight margins such as the one under discussion. As I have said, however, although at times frequency moved outside the normal operating range, it never moved outside the statutory limits. We met demand for all customers, and there was no disruption for customers at all. That is an important fact that is borne out by all the data that has already been published, although it does not take away from the fact that if we have lessons to learn from those incidents, we will absolutely learn them.
Full debate: National Energy System Operator: Blackout Risk
I thank my hon. Friend for the way in which he has framed his remarks. He is right to say that these are incredibly serious allegations, and we take them with the seriousness with which they should be taken and will take on board any lessons learned. As for his point about the importance of grid investment, we inherited a grid that was not only in dire need of investment, but had not been designed to meet the full needs of generation that had been built for many years and not connected. We are currently constraining renewable energy that has been built over the past few years because it had not been connected to the grid. We are doing that work to ensure that the grid can continue to do what it needs to do.
Full debate: National Energy System Operator: Blackout Risk
As we move towards a clean power system, electricity demand is expected to increase significantly as heat, transport and industry are electrified. Delivering this transition at the lowest cost requires a mix of technologies. While renewable energy will form the backbone of the system, baseload power such as nuclear is essential to maintain system reliability, reduce overall system costs and protect consumers from exposure to global energy price shocks.
This approach is consistent with international best practice. Several countries, including Belgium, France and the US, have recently taken steps to extend the lifetimes of their existing nuclear power stations to strengthen energy security and support decarbonisation.
Full debate: Sizewell B: Contract for Difference
May I congratulate the hon. Member for West Dorset (Edward Morello) on securing a debate on this important topic? I thank him for all his engagement on this and many other issues, and for his leadership on the energy transition. In the rising noise in and outside this place against facts on the climate crisis in front of us today, it is genuinely a relief to have conversations with him about what we can do about the reality. On that, he makes a hugely important contribution to the House. In all my engagements with him, I come away having learned something new; I thank him for that.
I will start where the hon. Gentleman started: by recognising that we cannot put off our response to the climate crisis to tomorrow. We are now living through extremely hot weather caused in part by the action that we did not take to tackle the climate crisis. While this is one of the hottest summers that we have lived through, it is almost certainly one of the coldest summers that we will live through, so every single step we can take to tackle this crisis should be taken.
We absolutely need greenhouse gas removal technologies to reach net zero and to tackle the climate crisis. Such technologies give us a not just a huge opportunity to balance the residual emissions from hard-to-decarbonise sectors, but—as we have said throughout all of the work the Government are doing on the clean power mission and beyond—an exciting opportunity to grow our economy and secure new investment into the UK. When I say that, I mean all parts of the UK, including Northern Ireland, which the hon. Member for Strangford (Jim Shannon) rightly always challenges me on. This is not just the Government’s view; it is firmly the view of the Intergovernmental Panel on Climate Change and our own independent Climate Change Committee. That is why we are looking ahead and investing in these technologies.
Thirdly, we know that carbon capture, usage and storage infrastructure is critical for enabling some of these technologies, and we have been committed to deploying CCUS at scale. I agree with my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer) about the need to capitalise on investment that we have already made, and to continue down that path by investing in these projects. In October 2024, just a few months after we took office, we made a significant funding commitment of up to £21.7 billion over 25 years to kick-start the CCUS industry here in Britain. GGR projects have been able to apply to the expansion of the HyNet and East Coast clusters through the HyNet Track-1 expansion process, the Teesside selection process and the non-pipeline transport pathfinder process—all very catchy names. I can already confirm that the HyNet Track-1 expansion includes two GGR projects that are in the negotiation phase of that process.
Fourthly, we are investing in innovation. For many of these technologies, there is research that still needs to be undertaken and there are breakthroughs that are waiting to be made. We have already invested over £80 million through the direct air capture and greenhouse gas removal innovation programme and the UK Research and Innovation funded greenhouse gas removal demonstrator programme and its co-ordinating hub.
That leads me to the fifth point about how we stimulate market demand. We want to engineer GGR projects to generate high-quality carbon credits that can be sold on high-integrity negative emissions markets, and so we will maximise the opportunity for the voluntary carbon markets to channel private finance into those GGR projects. At COP29, we launched six principles for voluntary carbon and nature market integrity to guide organisations into taking voluntary action towards nature-positive and net zero goals.
When we consulted on those principles with stakeholders, they highlighted that, in order to unlock the full potential of the voluntary carbon market, there is a need for greater clarity on the definition of high-quality carbon credits and how credits could be used in corporate net zero claims. Alongside the Governments of Singapore and Kenya, we are leading development of the Coalition to Grow Carbon Markets to strengthen corporate demand for high-integrity carbon credits, and anyone and everyone is welcome to join that coalition.
I hope that the steps that I have outlined today will reassure the House that this Government take the future of GGRs extremely seriously. We know that these technologies will be essential to reducing our emissions while growing the economy on the road to net zero by 2050, and that is why we are acting now. I want to conclude by coming back to the point where the hon. Gentleman started. It is absolutely critical that we rebuild, where we can, the consensus on acting on the most existential crisis that this planet faces. The climate crisis is not some future threat that we can have a theoretical debate about now and worry about later; it is a very real and pressing threat, and GGRs will play a really important part in addressing it. The Government are determined to make that happen, and there is an economic opportunity if we get this right as well. I absolutely commit to working with the wider industry, with the hon. Gentleman and with everyone else who has an interest in this fascinating subject in order to make this work.
Full debate: Greenhouse Gas Removals Sector
First, we are delighted to be building the first long-duration energy storage in Britain in 40 years, including pumped hydro storage projects that will help us store renewable energy for when we need it. Secondly, there will be local benefits from that and I do not agree with the hon. Gentleman’s point about jobs. These are big construction projects and there will be jobs relating to running them afterwards. However, I will look further at his point on community benefits, because the community should benefit from such projects being built.
Full debate: Topical Questions
The CfD mechanism is central to delivering the Government’s objective of a fully decarbonised power system while securing value for money. It protects consumers when electricity prices are high and gives generators income stability over the duration of the contract. For example, had Hinkley Point C been operational during the last energy crisis, consumers would have saved around £5 billion.
The draft instrument before us today amends the Contracts for Difference (Definition of Eligible Generator) Regulations 2014 so that the Government have the option to use the CfD mechanism to support the continued generation of electricity at existing nuclear power stations. Nuclear energy is already eligible for CfD support for new-build capacity, with a CfD having been taken forward for the construction of Hinkley Point C, but nuclear stations seeking to undertake refurbishment in order to extend their operational lifetime are not currently eligible. Broadening the eligibility criteria in this way allows existing nuclear capacity to continue to generate low-carbon electricity over extended operating lifetimes, with support under the CfD where it is judged safe and economical to do so. The Government’s assessment is that nuclear lifetime extensions can provide value for money for consumers, given that lifetime extensions will be considerably cheaper than building new generation. Modelling indicates that extending nuclear plants lowers overall electricity system costs compared with other low-carbon routes to net zero.
Full debate: Draft Contracts for Difference (Definition of Eligible Generator) (Amendment) Regulations 2026
It is great to see that some young people have joined us for the debate, because at the heart of our reason for building this infrastructure is the future of our planet, as well as our energy security right now. For decades, we have not done enough to tackle the climate crisis, but neither have we done enough to safeguard ourselves from the volatility of fossil fuels, which has put all our bills up year after year. That is what this is all about, and I know my hon. Friend the Member for Suffolk Coastal absolutely supports that point.
Full debate: Nationally Significant Energy Infrastructure Projects