Nus Ghani is the Conservative MP for Sussex Weald.
We have identified 19 Parliamentary Votes Related to Climate since 2015 in which Nus Ghani could have voted.
Nus Ghani is rated for votes supporting action on climate. (Rating Methodology)
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We've found 59 Parliamentary debates in which Nus Ghani has spoken about climate-related matters.
Here are the relevant sections of their speeches.
(e) ensure long-term resilience of water supply and sewage networks against climate change, population growth, and consumer behaviour changes;
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That the draft Climate Change Act 2008 (International Aviation and International Shipping) Regulations 2026, which were laid before this House on 14 April, in the last Session of Parliament, be approved.
That the draft Climate Change Act 2008 (Credit Limit) Order 2026, which was laid before this House on 14 April, in the last Session of Parliament, be approved.
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12:44
New clause 7— Rail climate resilience and decarbonisation framework —
This new clause establishes a statutory climate resilience and decarbonisation framework and requires regular reporting on progress made against the objectives set out in the framework.
(b) the achievement of targets set under Part 1 of the Climate Change Act 2008,
(c) the programme for adaptation to climate change under section 58 of the Climate Change Act 2008, and
This new clause requires Great British Railways to take steps to contribute to meeting targets set out in existing legislation on climate change.
“(1) Within twelve months beginning on the day on which this Act is passed, and before the end of each period of twelve months thereafter, the Secretary of State must lay before Parliament a Report on the contribution of rail and rail travel in the UK to the reduction of global greenhouse gas emissions to net zero at a rate consistent with—
(a) meeting the UK carbon account target for 2050, as provided for in section 1 of the Climate Change Act 2008;
(b) limiting the global mean temperature increase to 1.5 degrees Celsius compared to pre-industrial levels, as defined by the Intergovernmental Panel on Climate change.
This new clause would require the Secretary of State to report to Parliament annually on the contribution of UK rail to net zero and climate change goals.
(d) a projection of CO2 emissions per passenger kilometre travelled using the relevant metropolitan rail provision;
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Before I call the shadow Minister, I will announce the result of today’s deferred Division on the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026. The Ayes were 362 and the Noes were 107, so the Ayes have it.
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We now come to the Select Committee statement on behalf of the Energy Security and Net Zero Committee. Bill Esterson will speak for up to 10 minutes, during which no interventions may be taken. At the conclusion of his statement, I will call Members to ask questions on the subject of the statement. These should be brief questions, not full speeches. I emphasise that questions should be directed to the Chair of the Select Committee, not the relevant Minister. Front Benchers may take part in the questioning.
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12:57
I call the Chair of the Energy Security and Net Zero Committee.
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17:44
New clause 29— Duty to contribute to delivery of nature, clean air and climate targets —
(a) meeting the targets and carbon budgets set under Part 1 of the Climate Change Act 2008;
(d) the delivery of the programme for adaptation to climate change under section 58 of the Climate Change Act 2008.
This new clause requires strategic authorities, mayors, and local authorities to act in accordance with the statutory Climate Change Act and Environmental Act targets, carbon budgets, Air Quality Standards Regulations, and climate adaptation programme across their functions. The Secretary of State must publish guidance for defining authorities’ contributions towards these objectives.
New clause 58— Obligation to align decision-making with nature, air quality, and climate targets —
(a) the fulfilment of the carbon budgets and targets established under Part 1 of the Climate Change Act 2008;
(d) implementation of the programme for adapting to climate change prepared under section 58 of the Climate Change Act 2008.
This new clause places a duty on strategic authorities, mayors and local authorities to operate consistently with the targets and requirements in the Climate Change Act, the Environment Act, the Air Quality Standards Regulations, and the statutory climate adaptation programme. The Secretary of State must publish guidance for defining authorities’ contributions towards these objectives.
(ii) Part 1 of the Climate Change Act 2008, and
This amendment would require combined authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.
(ii) Part 1 of the Climate Change Act 2008, and
This amendment would require combined authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.
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12:16
(e) opportunities to contribute to lower air pollution and reduced greenhouse gas emissions;
“(3A) A vehicle does not fall within subsection (3) if it previously had the tailpipe emissions listed in subsection (3)(c) but has since been converted to a zero-emission drive train.”
This amendment would qualify buses that have repowered from running on fossil fuels to zero emission technologies to be considered as zero emission vehicles for the purposes of this Bill.
This amendment would clarify that the provisions of section 151A on zero-emissions vehicles apply to mayoral combined authorities.
“(6) Within six months of the passing of the Bus Services (No. 2) Act 2025, the Secretary of State must lay before Parliament a report detailing how adequately and easily local transport authorities have been, or will be able to, access funding to replace polluting buses with zero-emission buses for the purposes of meeting the requirements of this section.
(a) an assessment of current funding mechanisms available for the transition to zero-emission buses, including grants, loans, and other financial incentives;
(b) an evaluation of the sufficiency of available funding to meet the projected costs and timelines for local transport authorities to achieve a zero-emission fleet by 2035;
(d) recommendations for improving the adequacy and accessibility of funding to accelerate the replacement of polluting buses with zero-emission buses.
(8) In conducting the review under subsection (6), the Secretary of State must consult relevant stakeholders, including local transport authorities, bus operators and manufacturers of zero-emission vehicles.
(9) Any report under this section must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed, including any further steps to ensure sufficient and accessible funding for the transition to zero-emission buses.”
This amendment would require the Secretary of State to publish a report which assesses the adequacy and accessibility of funding available to local transport authorities to transition their bus fleets to zero-emission vehicles. The report must include an evaluation of current funding mechanisms, barriers to access, and recommendations for improvements.
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00:00
(a) be built to a net zero carbon building standard, and
This new clause would require that new homes to be built to a net zero carbon building standard and include provision for the generation of solar power.
(2) In subsection (1), “major energy infrastructure project” and “specified connection” have such meaning as the Secretary of State may by regulations specify, provided that any such definition includes all newly consented renewable energy projects.
(2) For the purposes of this section, a “Local Area Energy Plan” means an outline of how the relevant authority proposes to transition its area’s energy system to Net Zero.”
This new clause would require all local and combined authorities to develop Local Area Energy Plans which set out how they will meet their Net Zero goals.
(b) the achievement of targets set under Part 1 of the Climate Change Act 2008; and
(c) the delivery of the programme for adaptation to climate change under section 58 of the Climate Change Act 2008.”
(b) require any such housing to be delivered to a net zero carbon building standard.
This new clause would require housing plans to state the proportion of social rent housing to be provided (based on an assessment of need) and require those homes to be built to a net zero carbon building standard.
“sequential test” means steering new development to areas with the lowest risk of flooding, taking all sources of flood risk and climate change into account. Where it is not possible to locate development in low-risk areas, reasonably available sites within medium risk areas should be considered, with sites within high-risk areas only considered where there are no reasonably available sites in low and medium risk areas;
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I call the Chair of the Energy Security and Net Zero Committee.
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14:20
I call Luke Murphy, a member of the Energy Security and Net Zero Committee.
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I call a member of the Energy Security and Net Zero Committee, Bradley Thomas.
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I call a member of the Energy Security and Net Zero Committee.
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13:55
the UK’s net zero target as set in section 1(2) of the Climate Change Act 2008.”
This amendment requires the OBR to report on the impact of fiscally significant measures announced by Government on the UK’s statutory net zero target.
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16:31
The existing support has been in place since 2017. Since then, more than 370 businesses have benefited and will continue to benefit from an exemption from certain renewable energy levies. Under the new measures, businesses that are eligible for the exemption scheme will not only see an increase in the value of their exemption, from 85% to 100%, but benefit from a new exemption from the GB capacity market charges, as well as receiving compensation for a proportion of their network charges. Taken together, the Government estimate that that support could be worth, on average, around £24 to £31 per megawatt hour, closing the competitive gap between UK industrial energy prices and those faced by international partners.
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17:20
A review of the data underpinning the British industry supercharger will be carried out in 2026 to assess how the scheme continues to meet the needs of energy-intensive industries and whether it can go further in helping manufacturing remain competitive, while at the same time supporting this Government’s ambitions for decarbonisation. There have been some issues raised around subsidies and who fits in and who fits out. However, this is a good news story, which has been well costed, well documented and well evidenced.
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10:38
Before I give way to the hon. Member for Croydon Central, let me say that Opposition Members constantly want harder, greener net-zero policies, and this is what happens when we flow those through. Customers—end users—want cleaner, greener steel that is made in electric arc furnaces, and this is the outcome of that demand. The reality is that, without the support, there would have been a high risk of Port Talbot and Tata no longer producing steel in the constituency of the hon. Member for Aberavon (Stephen Kinnock).
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10:45
We are, then, ensuring the resilience and prosperity of the UK steel industry in the face of increasingly competitive global markets. This work is preparing UK steelmaking for the coming years, but it is not the final word in future-proofing the industry. The SUSTAIN future manufacturing research hub, which is led by Swansea University, is the largest fundamental research activity centre working right now to decarbonise and improve the efficiency of steelmaking in the UK. I believe it is also looking at the quality of scrap steel and new technologies to ensure that we can make even more products using steel in the UK.
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Ensuring the UK can adapt to long-term trends by developing the insights, policies and international partnerships needed to address long-term trends impacting supply chain resilience, including climate change, evolving geo-political dynamics and the growth of new industries and technologies; and
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10:16
Decisions have to be taken while responding to the consultations that take place. We have been absolutely determined to ensure that steelmaking will remain competitive in the UK, which is why we have been able to support the steel sector with high energy costs and put over £1 billion in place to deal with decarbonisation technology. When it comes to Tata, the support we have pledged involves an investment of over £1 billion to ensure that jobs remain secure in the future, and negotiations continue with British Steel as well. That is the support that we have provided and will continue to provide for steel in the UK.
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15:59
It was good to hear my right hon. Friend the Member for Basingstoke acknowledge that we are world leaders in offshore wind and other renewables, especially small modular reactors and fusion energy, and to hear about her recent experience in Canada as our trade envoy. She reflected on battery plants and storage, and will be pleased to know that I will publish the battery strategy shortly. She reflected on critical minerals—she knows I published a critical minerals strategy recently—because we cannot have a net zero agenda without them. She also asked about the NPPF; we got a note back to say that it is on its way. Of course, that is not within my remit, but I do not doubt that her words have been acknowledged.
Let me reflect on the comments made by my right hon. Friend the Member for Kingswood (Chris Skidmore) and his tremendous work on the Skidmore review. I agree that we have earned a reputation in the UK as leaders in achieving net zero, and now that reputation needs to be preserved. It is indeed a race, and we started off fast so we need to ensure that we continue ahead of the game. He also reflected on the Inflation Reduction Act, which has changed the game plan—I know that, as the Industry Minister—and the challenges it poses for supply chains. It is unfortunate that this will be his last King’s Speech debate, but I do not doubt that we will hear his voice on this agenda.
The hon. Member for Brighton, Pavilion (Caroline Lucas), gave a speech that was far more ideological than embedded in the reality of people’s lives, and did not reflect at all on our track record on getting to net zero and reducing emissions. I always find it curious that people talk about resilience but are prepared to let other markets boom at the cost of markets being invested in and jobs being grown here in the UK.
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16:01
I am anxious about how much time I have left to speak. I am closing the debate as a Business and Trade Minister, and have many more opportunities coming up to help ensure that we deliver on growing the economy and achieving net zero. We have a couple of programmes of work that were reflected in the King’s Speech in the Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill and the Digital Markets, Competition and Consumers Bill.
Turning to the subject of today’s debate, the Government are already turning the country into a clean energy superpower. “Already” is the important word there, because while the Opposition might try to claim otherwise, this work is well under way. Let me remind the House of the formidable record we are building on. The UK achieved the fastest rate of greenhouse gas emission reductions of all G7 countries, while renewables already generated over 48% of our electricity in the first quarter of this year—the highest ever level. Of course, we know we can and must go further, which is why the UK has one of the world’s most ambitious 2030 targets. However, the Government are also acutely aware that we cannot ask our citizens and businesses to pay undue burdens for achieving our net zero goals, particularly in these challenging economic times. Nor can we ignore the fact that Putin’s war of aggression means that we are living in a more dangerous world with far more complicated supply chains. As the Secretary of State for Energy Security and Net Zero has already explained, it is only right that we reduce our reliance on volatile international energy markets and hostile regimes. She will be doing so through legislation such as the Offshore Petroleum Licensing Bill.
However, the Government are not just focusing on words; they are taking action. Between 2020 and 2023, my Department alone supported more than £28 billion of net zero-related inward investment, creating 30,000 jobs. Thanks to our work, the country’s economic geography is also shifting—from clean technology development in the midlands, offshore wind in the north-east and Scotland and turbine manufacturers in Hull, to innovative hydrogen-powered buses in Northern Ireland. With the North sea transition deal, the Government are helping workers, businesses and the supply chain in fossil fuel-related industries to adapt to a net zero future, providing £20 billion of funding to encourage the early deployment of carbon capture, usage and storage, and to unlock private investment and jobs. Whether we are talking about our recently announced plans for carbon capture clusters in the north-west and north-east, the first 15 winning projects to receive investment from the Government’s £240 million net zero hydrogen fund, the port towns that stand to benefit from the £160 million-worth of floating offshore wind manufacturing schemes, or our freeports and investment zones, our policies are creating jobs, reinvigorating communities and opening horizons the length and breadth of the country.
It would be remiss of me not to talk about my own brief, which covers industries and, fundamentally, the automotive, aerospace and maritime sectors. Here again, my Department is playing an instrumental role. We recently announced a joint investment package with Tata Steel, worth £1.25 billion, to replace end-of-life blast furnaces with electric arc furnace steel production. That will preserve steelmaking for generations to come and enable green steel production to take place in the UK. While we are helping manufacturers, including steel producers, to access lower-cost hydrogen through the net zero hydrogen fund, we are also enabling our world-renowned automotive sector to seize the opportunities of the net zero transition. For instance, we have the automotive transformation fund from the Advanced Propulsion Centre, and the Faraday battery challenge. That has unlocked investment into the UK. Stellantis is producing electric vans at its Ellesmere Port plant, the first factory to be dedicated to the manufacture of electric vehicles, BMW Group is investing £600 million to bring two new all-electric Mini models to Oxford by 2026, and Tata has announced a £4 billion investment in Europe’s largest here in the UK. All that shows what our strategies are already providing.
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12:13
As my hon. Friend is aware, the Government made an extremely generous offer of support to British Steel earlier this year to help it to invest in a decarbonised and sustainable future. We have continued to work intensively with British Steel since then and will continue to do so. However, she will also understand that the detail of those conversations remains highly commercially confidential and that any public discussion risks undermining talks.
I know that this must be a deeply concerning time for British Steel employees and others in Scunthorpe following the company’s announcement on Monday of its plans for future operations. I can very much assure my hon. Friend that we will help affected workers and their families, and that we are committed to finding solutions to enable the ongoing sustainable and decarbonised production of steel. Just last month, for example, we announced a £1.25 billion joint-investment package with Tata Steel to secure a decarbonised future for steelmaking in Wales. That has the potential to safeguard several thousand jobs across the UK. In 2020, the Government provided an emergency loan to Celsa Steel to help it continue trading during the covid pandemic, saving over 1,500 jobs, with a further 300 jobs created since the loan was made.
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Negotiations are ongoing and nothing is concluded. The statement made by British Steel was a proposal, not a conclusion. The steel that comes out of electric arc furnaces can be used for a variety of things, including construction and military-grade steel—it is incredibly nimble—but I fully appreciate that different types of steel are produced out of different furnaces. The hon. Gentleman spoke about hydrogen, and the Government have a substantial hydrogen strategy that we launched in May 2022. The net zero hydrogen fund is worth up to £240 million of capital co-investment out to 2024-25. That will support upscaled hydrogen production projects, allowing companies, including steel producers, the potential to secure supplies of lower-cost hydrogen. Ultimately, decarbonisation pathways for specific sites are commercial decisions for individual companies based on their own operational circumstances. In the case of Port Talbot, it was about timing for using a technology that can be commercialised at scale. At the moment, for that part of the country, it is electric. Hydrogen may no doubt be the next stage of technology that is used.
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12:28
I agree on both points: first, on the incredible work that my hon. Friend the Member for Scunthorpe does for steelworkers in her constituency; and secondly, that we cannot achieve net zero without a mix of steel being manufactured in the UK. We have a booming renewables sector, whether that is solar panels, blades for offshore wind farms, or electric vehicles. Much of that steel can be produced by electric arc furnaces, but my right hon. Friend the Member for Tunbridge Wells (Greg Clark) is absolutely right that there is a space for virgin steel, too.
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12:31
British Steel’s statement on Monday contained proposals and a plan—nothing is concluded yet. My focus, as our focus has always been, is on protecting the steel sector in the UK, protecting steel jobs in the UK and doing everything we can to procure more British steel in UK manufacturing. Of course, that continues. These are commercial decisions about how companies wish to continue their business going forward. I have made it clear that fundamentally there needs to be a mix of steel produced in the UK in the steel market, but the reality is this. First, steel produced in electric arc furnaces is far more nimble because of the technology, and it can be used for many more materials in advanced manufacturing than previously—that is a fact. Secondly, manufacturers, customers and consumers fundamentally want a cleaner, greener steel package. It is not just me saying that at the Dispatch Box; it is also the UK steel industry representatives who have put together a net zero strategy and are talking about having cleaner, greener steel going forward. We have a lot of scrap steel in the UK that can be recycled, and we have far more capacity to recycle that than we have for that steel to be used in UK manufacturing, but, fundamentally, we need to have a mix. I believe that that mix will continue as long as it can and should, but these are commercial decisions. We continue to negotiate with British Steel.
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12:44
I had a feeling that I had mentioned that a few times. We have a fund of about £1.5 million, partly aimed to ensure that we are adopting, testing and commercialising new technologies to enable the steel sector to decarbonise. We have done a huge amount of work on electricity and we are also considering the possibilities of hydrogen, so we are looking into alternative sources of energy to help the sector in the UK. I know there are challenges for places such as the hon. Lady’s constituency because of the sort of steel that they need, but the fact remains that more and more different types of steel can be made to a high standard and a high grade in electric arc furnaces.
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12:48
I simply do not recognise the picture that the hon. Lady paints. Our recent decision on Tata Steel was welcomed by UK Steel, the organisation representing the UK sector, which said that it was the way forward. UK Steel itself has a net zero strategy, and wants to see the transition proceed apace.
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That is why the support was so substantial to Port Talbot, to ensure that the steel sector could continue to thrive here in the UK. Manufacturing in the UK is booming. We are the eighth largest manufacturer in the world and we need to get our goods fundamentally from the UK, including steel. The hon. Gentleman is right to say that we cannot achieve net zero without steel, but we can help steelmaking to become even more green and clean than it is at the moment.
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Through investment in a state-of-the-art Electric Arc Furnace at Port Talbot, this deal will support the UK’s efforts to meet increasing demand over the next decade and enable industry to take a significant step towards decarbonisation. It will strengthen our supply chain resilience, as well as protect thousands of skilled jobs across South Wales and the UK for the long term.
enable the industry to take a significant step towards decarbonising; and
Steel is a strategically significant industry which plays a vital role in the UK economy. The sector supports tens of thousands of UK jobs and remains a key driver for local economic growth in regions with proud steelmaking histories. It is also an industry in urgent need of modernisation. Decarbonising industry is a global challenge to meet the temperature goals of the 2015 Paris Agreement.
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17:43
I turn to gigafactories, the favourite topic of the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). In the summer, we also helped to secure more than £4 billion of investment from Tata for a new gigafactory. At 40 GW, it will be one of the largest battery plants in Europe, equivalent to the size of almost 65 football pitches. It will create up to 4,000 highly skilled jobs as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals. Most importantly, the investment helps to turbocharge our switch to zero-emission vehicles by providing almost half the battery production needed by 2030. It is not that we need 12, 15 or five; it is about the capacity we need. Tata takes us two thirds of the way there and Envision is on top of that.
The announcements are the most recent in a line of investment decisions over the last couple of years. In 2021, Nissan and Envision announced a £1 billion investment to create an EV manufacturing hub in Sunderland. Ford joined the line-up in 2021 with a £227 million investment in Halewood to make the company’s first EV components site in Europe, and increased its investment in the plant to £380 million in 2022. Last year, we saw Bentley commit more than £2.5 billion to transition its Crewe plant to zero emission vehicles, with the first EV model to roll off the production lines around 2025.
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17:48
I would love to. More importantly, I was recently at a site where we saw trucks that used hydrogen, ensuring that construction sites achieve their net zero ambitions. Leyland will not be forgotten, due to my hon. Friend’s hard work.
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17:50
My right hon. Friend’s views on electric vehicles and zero emissions are well documented. As I mentioned, a hydrogen strategy is also in place. I have been to a number of projects where vehicles are using hydrogen to ensure that that technology is exploited and that there is supply and demand in the chain, too. We are looking at sustainable alternative fuels not only in the automotive sector but in the aviation sector, so it is not just in that space. All alternative fuels will be investigated.
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17:52
One issue that has already been touched on is our relationship and tariffs with Europe. To support our industry through the transition, we must also address any and all barriers to trade with partners and markets all over the world. Our closest trading partner is the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. Over 50% of cars manufactured in the UK and exported are destined for EU consumers.
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I can confirm that the Government have agreed on a proposed joint investment package to provide £500 million to Tata Steel as part of its proposed £1.25 billion project to move to low-carbon steelmaking in Port Talbot, subject to the necessary information and consultation processes that will be led by the company. For me it was always about certainty, continuity and security, and through investment in a state of the art electric arc furnace at Port Talbot the deal will support the UK’s efforts to meet increasing demand over the next decade and enable industry to take a significant step towards decarbonisation. It will strengthen our supply chain resilience as well as protect thousands of skilled jobs across south Wales and the UK for the long term.
This ambitious transformation is the culmination of several years of negotiations between the Government and Tata Steel and it has been backed by a majority investment by the company. The transition will secure continued production of steel at Port Talbot, enable the industry to take a significant step towards decarbonisation and provide a clear pathway towards a long-term financially and environmentally sustainable business model, removing the repeated need for Government intervention.
Steel is a strategically significant industry that plays a vital role in the UK economy. The sector supports tens of thousands of UK jobs and remains a key driver for local economic growth in regions with proud steelmaking histories, but it is also an industry in urgent need of modernisation. Decarbonising industry is a global challenge to meet the temperature goals of the 2015 Paris agreement. By replacing Port Talbot’s existing coal-powered blast furnaces and assets nearing the end of their effective life with an electric arc furnace, this proposed project is expected to reduce the UK’s entire business and industry carbon emissions by 7%, Wales’s overall emissions by 22% and the Port Talbot site’s emissions by 85%.
As such, decarbonising UK industry is central to the Government’s bold plans for tackling climate change and in doing so placing our country at the forefront of the growing global green economy. We are committed to seeing a low-emission production steel sector in the UK and are also working with global partners to support decarbonisation of steel production internationally.
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16:17
“This is a really important day for our steel sector in the UK, with the Government showing a real commitment to the future of steel making here in the UK. We will get a true transformation of our sector to create steel for the net-zero economy, something which our customers are asking us for. We have the ability to completely transform our sector and boost the net-zero economy in the UK. We can really seize the opportunity to increase production in the UK and increase exports. We all know that a net-zero economy will need more steel, not less.”
More importantly, the hon. Member knows that the blast furnaces were at the end of their life. The right decision is to provide certainty, security and continuity, and that is exactly what we are doing. The UK is a world leader in producing steel, but we need to decarbonise, and this is the best way of ensuring and guaranteeing jobs, of which there are 8,000 on the site and 12,000 in the supply chain.
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16:39
It is unfortunate that the right hon. Member has taken such a narrow view. We are providing £500 million to ensure that the plant will continue to make steel, and to support the jobs in the industry. There are 8,000 direct jobs and 12,000 jobs in the supply chains which would disappear if there were no steel plant in Port Talbot. I should have thought that the right hon. Member, who has been so passionate about net zero, would appreciate the work that is being done in this regard. There is no alternative energy source that can deliver net zero, at scale or within the timetable that is required, given the infrastructure that is in place.
In case the right hon. Member thinks that it is just the Conservatives who are saying this, I invite her to read what UK Steel has said about this decision. It has said that this is a really important day for the steel sector in the UK, and that the Government are showing a real commitment to the future of steelmaking here. It is not just a question of our ambitions for net zero; the UK steel sector itself has put together a road map to net zero, which this investment will enable it to reach.
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16:35
The hon. Lady also mentioned the unions. They were in Westminster recently, attending a huge event co-hosted by our fantastic iron lady, or rather steel lady, my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft), as well as UK Steel. There was a presentation of the procurement policy note, but also a discussion about the road map to net zero. This is a route that was identified, and it is one that we have now taken to ensure the longevity of steelmaking in Port Talbot.
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The answer is no. Under this deal we have protected jobs and ensured that we will continue to have a steelmaking facility in Port Talbot that supports the diversity in the supply chain. We also realise how uniquely important the blast furnaces in Scunthorpe are. We have talked about looking at hydrogen, but as I mentioned, it is untested at this scale to work within the timeframe that is needed. This deal is really good news for the UK steel sector, enabling it and us to reach our decarbonisation targets and ensuring that we are dealing not with virgin steel but with scrap steel in a way that can be recycled within UK industry. It ensures the longevity of the steel sector in Port Talbot.
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16:39
The reality is that any transition is going to impact jobs, which is why it is so important to ensure that support is available to enable people to skill up and transition. That is why the transition board has been set up with £100 million to help people on that journey. It is not fundamentally about achieving net zero; it is fundamentally about the age of the furnaces on the site, about the loss-making in the steel sector in the UK, particularly at this site, and about what decisions the company would take next. It was important for us to support the UK steel sector and provide it with £500 million—it has an overall envelope of £1.25 billion—to ensure that steelmaking continues in Port Talbot.
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09:38
Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.
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I fundamentally disagree with the question—well, it was more of a statement. I made it clear when I took on this role that we would assess the level of steel in procurement contracts, and we have put together the steel procurement policy note, which will address how much steel is being procured in our contracts in the UK. We are doing a huge amount to ensure that the different types of steel that are needed are produced. We know how valuable the sector is, which is why we provided support with high energy costs and why we have a decarbonisation budget that the industry can link into. I fundamentally disagree with the hon. Gentleman’s proposition.
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I welcome the hon. Member to her post, but I suggest that leading on stories in the paper is not a good way forward. That is all speculation; we do not comment on commercial decisions. The reality is that there is £730 million in support with energy costs and more than £1 billion of support with decarbonisation. She talks about plans. Well, I am not sure if the Labour party’s plan stands for anything because it flip-flops so often. It is not just me who says that; let us reflect on a statement made by a union leader. They said that Labour was not only just an ’80s tribute act, but that it tends to sit on a “wobbly fence”. Who knows what Labour will say tomorrow after a statement made today?
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09:43
We are proud of the UK’s reputation as a leader in the offshore wind sector. Together with industry, we have delivered the four largest operational wind farms in the world. The National Shipbuilding Office has done a huge amount of work in that area and will do even more with the new shipbuilding guarantee scheme. I think my hon. Friend’s other question relates to the Department for Energy Security and Net Zero. This is London International Shipping Week, and our offshore wind farms and all our vessels are being promoted heavily.
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11:29
Across Government, we have worked closely with Tata for the past two years to help secure this crucial investment for the UK, and its decision to invest here is a testament to our strong partnership with Tata. Tata’s announcement represents one of the largest investments we have ever seen in the automotive sector, and is part of a new wave of investments—as significant as those made in the 1980s—that are helping to turbocharge our transition to zero-emission vehicles. It will also be the group’s first gigafactory outside India, directly creating up to 4,000 highly skilled new jobs, alongside thousands of further jobs in the wider supply chain for battery materials and critical raw materials.
Tata says that the battery gigafactory will produce high-quality, high-performance, sustainable battery cells and packs for a variety of applications within the mobility and energy sectors. As the anchor customer, the new gigafactory will supply Jaguar Land Rover’s future battery electric models, including in the Range Rover, Defender, Discovery and Jaguar brands. That means we will soon see cars from JLR’s iconic British brands manufactured in the UK, powered by batteries produced in the UK and developed using technology from research and development centres in the UK, before being exported to markets all over the world. Battery production at the new facility will commence in 2026, and we look forward to confirmation of the site’s location once due diligence has been finalised. When operational, Tata expects it to be one of the largest buildings in the UK and plans to maximise its renewable energy mix, with an ambition for 100% clean power.
The Government are committed to supporting the automotive sector and the electric vehicle supply chain to take full advantage of the move to zero-emission vehicles, and we are putting this commitment into action through the automotive transformation fund, the British industry supercharger and our strong programme of support for research and development. We are working alongside industry to unlock further private investment in our EV supply chain, and we have long-standing and comprehensive programmes of support for the automotive sector, including the ATF, the Advanced Propulsion Centre and, of course, the Faraday battery challenge.
This investment is an important milestone in enabling a UK-made transition to net zero. However, it does not stand in isolation. It builds on other announcements that have been secured with the support of Government, including Nissan and Envision plans to secure £1 billion to create an EV manufacturing hub in Sunderland, Ford committing a total of £380 million to make Halewood the first EV components site in Europe and Stellantis investing £100 million to transition Ellesmere Port to electric van manufacturing.
The transition to zero-emission vehicles gives us a once-in-a-generation opportunity to shape the future of manufacturing. Over 166,000 people are directly employed in the automotive sector, and I am delighted that yesterday’s announcement means that thousands of new highly-skilled jobs will be created in the next few years just for this project alone. This fantastic news from Tata shows that the Government are getting behind business to unlock the barriers to growth and secure further investment, and it will be a real boost to the entire sector. I look forward to building on the momentum and continuing our strong relationship with the sector, so that we can move the UK forward in the race to net zero and support the delivery of the Prime Minister’s priority to grow the economy. I commend this statement to the House.
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00:05
Tata’s investment is so substantial. It is 40% of the gigawatts that we need, and fundamentally we need to have 100% by 2030. With Tata and Envision, we are two thirds of the way there. Obviously we want more, but we are not going to be complacent. We should not compare ourselves with the rest of Europe when their needs will be substantially different from ours, but let us take a moment to reflect on what is happening internationally. This is a global race to achieve net zero. Tata has decided to come here to the UK because it has faith in UK workers, UK technology and UK innovation. It has confidence in the UK supply chain, but fundamentally it has confidence in the UK Government’s policy when it comes to advanced manufacturing and the automotive sector.
Let me turn to the zero-emission vehicle mandate. I have taken many a delegation to the Department for Transport, which is responsible for this bit of policy, and I am keen to back business. The consultation has concluded and results will come through, and we will continue to work with the DFT. My position has always been to back the automotive sector. The hon. Member for Stalybridge and Hyde does not seem to appreciate how substantial the investment is. We should be focused on the £4 billion, the 4,000 jobs and the resilience in the supply chain—the 2,500 small firms across most of our constituencies that will be getting some support because of this fantastic confidence in the UK car and automotive sector, and fundamentally in UK policy when it comes to advanced manufacturing.
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11:49
The hon. Member is absolutely right that Huddersfield is a great place. We are not complacent: if the right opportunity, investment and partnership is put forward, we will of course consider that. We want to make sure that we continue to grow our gigafactory capacity. I knew that the hon. Member was going to touch on hydrogen, which he talks about often. The work we are doing with the ATF is not just about electric vehicles but about how we adopt all new functioning technologies to get to the first stage of zero emissions, and then to the next stage and so on. There are opportunities for hydrogen projects to come forward. Just a few weeks ago I visited a major construction project where not only the vehicles on site building and developing the port and the infrastructure were going to be hydrogen, but the vehicles moving on and off the site were to be well. Hydrogen is very much in our sights too.
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11:50
Brit European sounds like one of the firms I need to meet. No doubt my hon. Friend will invite me to visit, and I look forward to meeting the firm with her. She is absolutely right: this is a huge vote of confidence in our ability to adopt new technologies to achieve net zero. It is not just about finding and securing new sources of critical minerals; we are at the leading edge of battery recycling too. The UK Battery Industrialisation Centre will help us to stay at the forefront of recycling.
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11:59
As a result of Putin’s invasion of Ukraine and high energy prices, we introduced substantial programmes to give energy-intensive firms the support that they needed. The next phase of that is the energy supercharger, which—as the hon. Lady will know—the Secretary of State for Energy Security and Net Zero has been talking about. We know that energy prices will fall in the near future, and that there will be a change in the mix of energy costs.
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13:13
This is a positive news story, and any opportunity we have to speak about the automotive sector should be positive, not negative or all about political point scoring. This is a serious topic and a serious industry. I know the hon. Gentleman is keen to be very ideological within the Westminster bubble, but I would suggest he steps a little outside it. I know my hon. Friend the Member for South Derbyshire (Mrs Wheeler), who is a champion for Toyota, which has the largest manufacturing plant in her constituency, would welcome a visit by Labour Members so they can see how the sector is booming just in her constituency. There are over 2,000 people working at the plant in South Derbyshire and involved in the supply chains, and 80% of the cars manufactured are exported to Europe. Exports are up, by the way, which I will get on to. Toyota continues to innovate and it is at the forefront of producing hybrid cars. It has been cutting emissions for over a decade and takes net zero seriously, having energy from solar panels all around the plant. The point she would want to make is, “Get out of the Westminster bubble, visit South Derbyshire, see what is happening at Toyota”—and at many other firms, as I will go on to say—“and you will see the work is going well.” Our job is to protect, promote and praise, not to talk the sector down.
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13:17
This Government have a strong mandate to reach net zero and the consultation has just taken place on said mandate. The right hon. Member will know that I have been spending a lot time with the automotive sector, including taking delegations to meet the Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who will be overseeing that. My job—I also chair the Automotive Council—is to champion business, and on occasion to try to remove all the barriers it needs removed for it to manufacture more and export more. I know that the Transport Minister will be speaking more about that later.
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13:20
The sector is indeed a jewel in the crown of our economy. It is vital, because of where it is based across the country, to supporting the levelling-up agenda, net zero and advancing global Britain. Our automotive industry employs 166,000 people, adds over £70 billion to the UK economy and is our second largest exporter of goods. The UK is proud to be home to major global manufacturers such as JLR, Nissan, Stellantis, Toyota, BMW and Ford. But that is not the whole of the UK’s automotive eco-system: we have a lot more to be proud of, from our luxury and performance sector, including Rolls-Royce, Bentley, Aston Martin, McLaren and Lotus, to heavy goods vehicles and buses, such as Leyland Trucks, Wrightbus, Alexander Dennis and Switch, as well as the future of mobility, encompassing connected and autonomous vehicles. Those manufacturers are supported by a diverse, resilient and growing UK supply chain that spans a wide range of components and includes companies such as Bosch, NSK, Meritor and Swindon Pressings. These are valued partnerships, and the sector knows that my Department for Business and Trade is the Government’s first port of call to help businesses grow and flourish, and to create jobs, apprenticeships and opportunities around the country.
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13:23
I put on record my thanks to Graham Hoare, the current co-chair, Mike Hawes, Neville Jackson, Ian Constance, Markus Grüneisl, Paul Willcox, Murray Paul, Adrian Hallmark, Michael Leiters, Tim Slatter, Alan Johnson, Richard Kenworthy and many other indispensable members of the Automotive Council. I thank them for all the work they do, considering how challenging times have been not just for us but for our counterparts in Europe. I recently spoke at the Society of Motor Manufacturers and Trader’s parliamentary reception, and I welcome its “Manifesto 2030” with its five key priorities: green automotive transformation strategy, net zero mobility, green skills, made in Britain, and powering UK clean tech. There is a lot that we agree on, and I look forward to working with the sector to try to protect and strengthen the whole automotive industry. Car companies want to innovate, and we want to support them to do so. That is why the Government have an overarching goal of making the UK a global hub for innovation, as alluded to by the my hon. Friend the Member for Bosworth.
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13:29
Those headwinds have been felt across the globe, and where the UK sector has been impacted, it has not been uniquely impacted. The entire automotive sector is midway through a once-in-a-lifetime shift away from the internal combustion engine towards zero-emission vehicles. That is good not just for our net zero ambitions; it also has the potential to provide wider economic and social benefits. Of course, our competitors know that too, and the race to secure zero-emission manufacturing capacity across the world is fierce. Some countries seem willing to spend eye-watering amounts. We will be offering targeted investment in the future of the auto manufacturing sector. That means focusing on exactly where we know we are ahead of the game internationally, offering targeted and measured support that reflects the size and scale of our outstanding automotive sector.
Some mention was made of R&D support, and I will share all the work we have done. Our R&D and capital programmes delivered through the Advanced Propulsion Centre and the automotive transformation fund are positioning the UK as one of the best places in the world to design, develop and build zero-emission vehicles. They are working together to support the creation of an internationally competitive electric vehicle supply chain. In the coming months, after engagement with industry, the Government will build on those programmes to take decisive action and ensure future investment in the manufacture of zero-emission vehicles, as part of our commitment to building a cleaner, greener, more sustainable Britain fit for the world of the future, not the world of the past that the hon. Member for Stalybridge and Hyde is fixated on.
I have spoken previously about the Advanced Propulsion Centre, because it does fantastic work in driving technology forward. It was founded in 2013 as a £1 billion joint venture between the automotive industry and the Government to help the industry meet the challenges of innovation and decarbonisation. It facilitates funding to UK-based research and development projects developing zero-emission technologies. The programme helps accelerate the development, commercialising and manufacture of advanced propulsion technologies in the UK. So far, it has supported 199 projects involving 450 partners. It is estimated to have supported more than 55,000 highly skilled jobs and is projected to save more than 350 million tonnes of CO 2 —the equivalent of removing the lifetime emissions of 14.1 million cars.
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The Minister of State at the Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire, will touch on a few issues about the zero-emission vehicle mandate, so I will quickly touch on rules of origin. To support the transition, we must not only champion innovation but address all barriers to trade with partners and markets all over the world. Our closest trading partner is of course the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. More than 50% of cars manufactured in the UK and exported are destined for EU consumers. For those reasons, I am working closely with the industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and EU.
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13:45
We are home to more than 25 manufacturers that build more than 70 different vehicles in the UK, all of which are supported by 2,500 component providers and some of the world’s most skilled engineers. It is incredibly important to reflect how difficult it has been for the automotive sector globally, but of course we have huge success stories here in the UK. In 2022 we exported vehicles to more than 130 different countries and built more than three quarters of a million cars, with the onwards trajectory rising year on year. This is a healthy sector going above and beyond not only to reskill and upskill, but to meet net zero targets.
The Government are supporting the UK automotive industry, and the sector is a stalwart example of innovation and dynamism to the rest of the world. It is a great sector to get into, whether someone joins it as an apprentice or even by taking on a regular job. Of course, there is more to do. There are more opportunities to secure as we transition to zero-emission vehicles and we realise the potential of connected and autonomous mobility. We have already achieved a great deal in partnership with this fantastic sector, but we are determined to do more. We work with the sector—we do not sit in Westminster coming up with plans that we then U-turn on—and that has given the sector the confidence it needs to continue to invest in the UK. The job of those representing the sector is to praise, promote and protect, not to talk the sector down.
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We accept the scale of the challenge; it is a global challenge to decarbonise the sector and many countries are feeling it. However, a potential £1 billion in support is not a small measure—it is a large measure. Dealing with the procurement process to ensure that we have UK contractors securing UK steel in their programmes of work is not a small task, nor is dealing with energy prices. We have provided more than £730 million. When the sector needs support and we know it is a valid use of taxpayers’ money, we have stepped in, such as with the more than £30 million in Government loans to Celsa Steel in 2020. That secured 1,800 jobs, and the money has been returned to the taxpayer. We are more than happy to work with the hon. Lady and all Members who have steel firms in their constituencies, but we are going to provide steady support for the long term.
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10:23
I hope that my hon. Friend will allow me to use my brain to help unlock this with the Department for Transport. We have the automotive transformation fund and the Advanced Propulsion Centre, so we are doing a huge amount of work in this space to ensure that we are not only on the cutting edge of electric zero-emission vehicles, but looking at what the opportunities are for hydrogen. We do not want to be left behind anywhere in this space, but we do need to align ourselves with the rest of our Departments, and I will do so.
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10:30
I do not think the hon. Gentleman has ever had a positive story to tell about his region, let alone his constituency. We have a positive story on steel, and we have the same challenges as most countries in trying to deal with decarbonisation. We have issues around energy costs that we have been providing all our advanced manufacturing sectors with, and we want to ensure that we diversify our access to different forms of energy.
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09:37
The Paris agreement made clear that the steel industry needs to cut emissions by 93% by 2050, and the Government recognise the vital role that the steel sector plays in our economy. The 2021 net zero strategy sets out our aim to make the transition to a low-carbon economy, and reaffirms our commitment to continuing to work with the steel industry on decarbonisation.
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We have been supporting the steel industry, with more than £1 billion available in grants to help decarbonise the sector and the provision of more than £730 million to cover energy costs since 2013. The CBAM is clearly an issue for many countries, not just ours. We have just finished one consultation, and will produce a response in due course. A transitional reporting phase is due to start in October, with full introduction in 2026. The EU is still developing details about CBAM implementation, and has a consultation open on proposed reporting requirements until 11 July. I know that the hon. Member chairs the all-party parliamentary group for steel and metal related industries, and I urge him to ensure that all businesses express their views as strongly as possible. I think we are meeting on Monday to make sure that we can provide a substantial response.
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09:39
I am not sure where Labour Members will get the money to fund that programme of work. I have not even got to the end of reading this paper but they will probably U-turn by the time I do, so I am not sure how sensible it is going to be. We have provided more than £1 billion for decarbonisation, unprecedented support to help with energy costs, and just recently, there was fantastic news from Celsa, when it was able to repay a Government loan of £30 million that we provided to them, sensibly spending taxpayers’ money. There is and always has been support available. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.
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The energy charter treaty, which is under review, falls under the responsibilities of the Department for Energy Security and Net Zero, which has been formed from half of my previous Department. In their negotiations to modernise the ECT, the former Departments for International Trade and for Business, Energy and Industrial Strategy worked in close collaboration and DIT led on the investment provisions, so there is no doubt that the hon. Lady’s question would be better focused at the other Department.
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12:34
The automotive industry is vital. It is a vital part of the UK economy and it is integral to delivering on levelling up, net zero and advancing global Britain. After a challenging period where covid and global supply chain shortages have impacted the international automotive industry, the UK sector is bouncing back. Production is increasing, and in 2022 the UK’s best-selling car was the Nissan Qashqai, built in Sunderland.
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12:39
The hon. Gentleman will know, when I respond to this question, just how seriously I take the sector, as he does—he and I have worked on this previously. I agree that the automotive industry is a vital part of the UK economy and I will go on to explain all the work we are doing there; if we add it all up, it is more or less a very strategic strategy. We know that it is integral to delivering on our levelling-up agenda, which is why it matters to so many constituents and why there are so many MPs in the Chamber today. We know that it matters to net zero and to advancing Global Britain. We also know how important this is to Members of Parliament because of the number of people who work in the sector.
On Government support, the Government and industry have jointly committed approximately £1.4 billion in innovative projects through the Advanced Propulsion Centre to accelerate the development and commercialisation of strategically important vehicle technologies, strengthening our competitive edge internationally. We also work on the automotive transformation fund, which puts the UK at the forefront of transition to zero-emission vehicles.
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12:55
My hon. Friend is once again the lady of steel, raising the topic on behalf of the whole industry across the UK. She will know about our recent work to look at procurement and the whole lifecycle of supply chains, and to ensure that we are doing everything we can in the UK. She knows about our commitment to the steel sector—we have provided billions of pounds-worth of support for energy costs, and now there is a huge amount of support for decarbonisation—and because of her work, steel will not be left out of any conversation when it comes to advanced manufacturing.
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12:58
We are very much aware of how this impacts on people’s lives. I can tell by the number of Members in the Chamber. I co-chair the Automotive Council, so I know how incredibly important it is that we are sensitive to the needs of the industry while delivering on our other ambitious targets, including net zero. For the meeting this week with the sector, I took a delegation over to the Department for Transport to explain a little further the challenges of the ZEV mandate. There is a huge commitment to delivering electric vehicles, but there are also challenges if we want to ensure that the UK automotive sector continues to be as competitive while delivering on our net zero ambitions. Of course, if the opportunity arises, I would be more than happy to visit the hon. Member’s manufacturing site when she is available. I will do my very best to try to make that happen.
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13:00
Stellantis gave evidence to the Select Committee on a number of issues, and it seems peculiar that just one particular point has been raised, which has been in process for quite some time. The confidence that the hon. Member can give his constituents is that Stellantis has invested over £100 million in the UK—that is the confidence that employees have as well. A series of submissions were made to the Select Committee, and I am sure that the Chair, the hon. Member for Bristol North West (Darren Jones), will see a lot of activity on the website going forward. I read out the submission from Nissan expressing the confidence it has in the UK, as well as in us being able to deliver a huge amount of technological advancement in providing net zero vehicles. I ask the hon. Member for Birkenhead (Mick Whitley) to read the submission in full, not just the snapshot that was in the news.
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13:07
I thank the hon. Member for that question, because it shows that we have to work across Whitehall. Access to the national grid is a major issue for any of the large manufacturers and of course, as their plans grow, they need to have greater access over a faster timetable than one would have previously thought National Grid would make available. Conversations are taking place, in particular with colleagues who were previously in the Department for Business, Energy and Industrial Strategy, who are now in the Department for Energy Security and Net Zero and are leading that relationship with National Grid. The issue comes up regularly in the meetings that we have with the manufacturing sector, and my priority is to support the advanced manufacturing sector, so the hon. Member can be assured that I am campaigning incredibly hard to make sure that all our advanced manufacturing sites—present or planned—get access to energy at a timetable that suits the business, not just National Grid.
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It is not about jam tomorrow: it is about money committed previously and money committed today. The transition to zero-emission vehicles is being supported by up to £1 billion for R&D and capital investments in strategically important parts of the electric vehicle supply chain, building on the £1.9 billion in spending review 2020. The Government have committed £620 million to support the transition to electric vehicles—that is committed today; it is not jam tomorrow. I ask the hon. Member to read all the submissions to the Select Committee, and to respond to the positive comments that have been made about why businesses continue to see the UK as a great place to manufacture cars.
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14:15
Only trade can create jobs, drive growth and deliver the long-term prosperity that communities across the UK and around the world need to flourish. Only trade has the power to lift millions more people out of poverty in developing nations, helping to build a more secure and prosperous future for us all. Only trade can drive forward co-operation in the battle against climate change, by building networks of green innovation worldwide.
As we move towards cleaner, more affordable sources for power, Britain is once again leading the charge and we have a head-start on our global competitors. More than 40% of our energy came from renewable sources last year, and we are ramping up our investment in the sector, directing record sums into new projects, research and innovation. We know that the US Inflation Reduction Act is a significant intervention in the global race for green energy, and we are not attempting to enter any kind of distortive subsidy race with our greatest ally—as my hon. Friend the Member for North East Bedfordshire said, we need to make sure that we always get good value for taxpayers’ money—but although that drive to net zero in the United States should be welcomed, it is, of course, incredibly disruptive. One cannot throw a stone into the water and not expect any ripples, and IRA is a massive stone that has caused ripples worldwide, particularly in Europe. It is incredibly important that we stick to our net zero ambitions and ensure that we have resilience in our supply chains.
We are trying to do everything that we can to ensure that businesses in the UK have a competitive advantage while leveraging billions more in private capital to drive growth—and not just in green energy. We want to grow our nuclear energy capacity, too, through the development of small modular reactors, while investing in our key growth industries—from advanced manufacturing to life sciences and artificial intelligence—forging a British economy that is fit to face the challenges of a fast-changing world. [ Interruption. ] I am being rushed along, so I will briefly respond to some of the points raised by hon. Members.
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10:07
Unfortunately, I have to come to the Dispatch Box—that is just the way it works—so I disappoint the hon. Member by not being the Secretary of State. However, he knows that steel is absolutely key to our sovereignty and security and for the resilience of all our sectors. The Secretary of State has mentioned repeatedly that the quotes that are being repeated in the Chamber are a misrepresentation. The commitment to the sector continues. It was in place for years: it is why we had £800 million of support for the energy sector, and it is why we have a £1.5 billion competitive fund to help the sector decarbonise.
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I am sorry to dampen the hon. Gentleman’s ambitions about winning the next general election, but we do indeed have a strategy to deal with decarbonising our economy. We are supporting research and development to help decrease our reliance on gas and electricity and deal with long-term energy security: we have £380 million for the offshore wind sector, £385 million for nuclear R&D, and £120 million for future nuclear enabling. We have a green industrial strategy and we are keen to ensure that we deliver it right across the country, for all of our communities.
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09:45
I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.
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10:03
The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.
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I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.
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09:54
My hon. Friend proudly represents Teconnex as a firm in his constituency. The Department is keen to support all businesses that seek to invest or expand in the UK, particularly those that can help to spread jobs and opportunities across the UK and help us to deliver net zero. The Department is working across Government; we have previous Business Ministers here, and we are very close to the automotive sector and the supply chain. The new Department will ensure that there is a single, coherent voice for business inside Government to help my hon. Friend to represent business in his constituency.
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10:32
We have already taken action to protect the steel industry from unfair trade and reduce the burden of energy costs, including £800 million in relief for electricity costs since 2013. That is on top of a range of other support funds worth £1.5 billion to support efforts to cut emissions and become more energy efficient across the sector. It is firmly in the interests of the sector that we continue our engagement. We want British steel production to continue in the United Kingdom, to protect our steel sovereignty as a nation and build a stable, decarbonised and competitive industry. It is in the interests of employees, their communities and all areas of the UK that benefit from the UK steel supply chain, and I encourage the company to continue discussions with us to reach a solution.
I can confirm that the Government have put forward a generous package of support, which we believe, combined with shareholder action, would put British Steel on a sustainable and decarbonised footing. My officials are helping British Steel to understand that package in more depth, and I am hopeful that together we will find a solution that protects jobs while setting British Steel up for success. Obviously, decisions that the company takes are its commercial decisions, but I will continue to work with colleagues across Government to ensure that a strong package of support is available, including Jobcentre Plus and the rapid response service, if needed. Members across the House should be in no doubt of the Government’s determination to continue support for the UK steel industry, and I urge British Steel to continue discussions to help us secure its future in the UK.
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10:39
I will spend a moment to explain the level of support that British Steel has already had. We have offered £120 million in grant funding through the exceptional regional growth fund to ensure that it can continue to work in the area. We have offered UK export finance to help it with new export contracts. In June, we extended UK Steel’s safeguards to protect domestic production. It has benefited from Government electricity price compensation for energy-intensive industries and the energy relief scheme for business. As I have mentioned, £800 million has been provided across the sector since 2013. It can also apply for help with energy efficiency, decarbonisation, low-carbon infrastructure, and research and development, where more than £1 billion is available in competitive funding for industry. The support is strategic and long term.
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10:43
The hon. Member talked about the level of support that we are providing to the sector to ensure that it can reduce its emissions and take on board new technology to go as green as it can. We have more than £1.5 billion of long-term, strategic and focused support in place to help it to go green, cut emissions and become more energy-efficient. There is more than £1 billion for the carbon capture and storage infrastructure fund, more than £240 million for the net zero hydrogen fund, more than £55 million for the industrial fuel switching fund, more than £20 million for industrial decarbonisation research, £289 million for the industrial energy transformation fund and up to £66 million as part of the industrial strategy challenge fund. That is substantial funding to help the sector to be strategic and have structures in place to help it to reduce emissions, invest in new technology and decarbonise.
The hon. Member spoke about Labour’s plan, or the budget it has in place to help steel become green. I am not sure how that has been costed or tested. As I said in my statement, what is important is that we are putting forward a generous package of support. I hope that she agrees that, because it is taxpayers’ money, we should also have certain assurances, whether on job security, or that new technology to decarbonise is adopted. That is a sensible, strategic way to go forward.
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10:50
Because we have invested so much in renewables, we know that there will be better energy costs coming down the line, but we have had £800 million for the steel sector since 2013. We know that policy is being reviewed, and we are going to make sure that support is just as substantial going forward. The UK offers a great place to have a steel sector, and we know that there are opportunities for growth. We know there is going to be a 20% increase in UK contracts, we are looking at procurement and we have a fantastic skilled workforce. There is support to help decarbonise and take away some of the costs of emissions, too. Support has been available—up to £800 million—and support will continue to be available.
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We have had many meetings, and normally they are very respectful, but I must object to “little pots of money”. There has been £800 million of energy cost relief since 2013, with more money to come down the line, and £1.5 billion to help decarbonise. These are not little pots of money. Energy costs for the steel sector are an issue worldwide. We have a strategy and a fund in place, and this debate is about ongoing negotiations and the action that has been taken by this particular firm.
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“Ransom” is not my word, but it is an interesting way to explain what is going on. Of course, my hon. Friend the Member for Scunthorpe is the leading champion of steel across the industry. I was at a Westminster Hall debate last week, and I pointed out that I cannot turn around any corridor without her cornering me on steel. That is why the sector is so well represented in the UK and why we have put together support that has been valued at over £1.5 billion of grants to help it decarbonise, with £800 million to cover energy costs.
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I fear that the hon. Member would rather have coal imported and not worry about the cost or the emissions impact of that. The Secretary of State’s decision on the Cumbrian coalmine was made following a comprehensive planning inquiry that heard from over 40 different witnesses and considered matters such as demand for coking coal, climate change and the impact on the local economy. What is really important is that we have a resilient UK steel sector, and I will never apologise for that.
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11:00
I appreciate that this is a very tricky moment for the sector, as it is worldwide. We have spoken about this previously, and it is incredibly important for us to get it right. We have been focused on the present real-time negotiations. Let me put it on record that we are, as always, available to continue those discussions and we are hoping that they will continue regardless of the announcement of the discussions that took place yesterday. I cannot stress enough the long-term and strategic benefit of having a £1.5 billion fund in place to help us decarbonise—that is providing a huge amount of support.
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11:04
Absolutely. I think the argument is sometimes lost when people say that we can bring steel in. Why would we want to do that when we have a sector right here? People do not often calculate the cost or the impact on the environment. We have put together substantial funding to help the industry take new technology on board, reduce emissions and decarbonise. I must say that when I have had meetings with those in the sector, they have enthusiastically embraced the opportunity to reduce carbon emissions and meet net zero targets. That is why we want to work hand in hand with them.
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11:04
Absolutely; once again, the hon. Member asks a very sensible question. That is exactly what we are here to do. We need a cleaner, greener steel sector, so we need to do everything we can to support it in helping us to meet our net zero targets.
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18:48
This builds on Blyth’s energy success story, as it draws on its maritime history to develop the offshore industries of the future—my hon. Friend the Member for Blyth Valley beat me to it. Today, Blyth is home to the Offshore Renewable Energy Catapult’s National Renewable Energy Centre, which provides open access and independent tests and research facilities to drive the development of transformative clean technologies. The clean energy industry will be a critical part of Britain’s green transition, but if we are to deliver a green transition that works for everyone, delivering growth and jobs for all in energy is only part of the picture.
The automotive industry is vital to the UK’s economy, and it is at the core of communities across the country. We must ensure it succeeds in the transition to net zero if we are to deliver not only on our climate goals but on our ambition to level up our country and advance its global standing. If we get it right, we can build an industry fit for the future that delivers security, prosperity and opportunity for places such as Blyth and Wansbeck in the century to come. We will continue to champion the UK as the best place in the world to build automotives as we transition to electric vehicles.
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15:48
As we know, steel contributed £3.8 billion to the UK economy in 2021. It is crucial to many downstream sectors, such as construction, automotive and our green energy revolution, all of which sit in BEIS. I take care of automotive, aviation, maritime and construction, so it is critical to the rest of my brief. The industry provides a critical foundation that underpins our manufacturing, energy and infrastructure sectors, with a proud history forged in our United Kingdom.
However, as we have heard today, we have to recognise that there are global pressures. The sector is under stress everywhere. This is not just a UK issue; there are global challenges exacerbated by global overcapacity and the need to decarbonise. The hon. Member for Cardiff South and Penarth asked about the oversupply issue. Through the global forum on steel excess capacity, the G20 and other interested nations agreed important policy principles and recommendations to tackle the unfair subsidies that we believe are the cause of overcapacity, and we continue to work together to find solutions to this challenge.
We are disappointed that not all major steelmaking economies are taking part in these discussions, and I call on all players to come back to the table—in particular China, which represents more than half of all steelmaking capacity in the world. There are also great opportunities in how we can use steel as we transition to a zero-emission economy and help our other great industries to transition as well.
The hon. Lady mentioned the CCUS infrastructure fund. Each site is at a different stage when it comes to decarbonising, but that is £1 billion. There is funding of £240 million through the net zero hydrogen fund, which I know is important to many Members present; £55 million through the industrial fuel switching fund; £20 million through the Industrial Decarbonisation Research and Innovation Centre, which provides capital funding to projects that support fuel switching to hydrogen on industrial sites; £289 million through the industrial energy transformation fund to help businesses with high energy use, including steel; and £66 million as part of the industrial strategy challenge fund. Those budgets are in place to help the steel sector in the long term. They are not short-term sticking plasters, but substantial amounts of money.
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17:38
When it comes to the environment, many of our standards started here, and we should be proud of them. We have the world-leading Environment Act, which has dramatically strengthened environmental regulations. Moreover, the EU model has not stopped the decline in our natural world. Of course there is much more that we need to do, and we will: we have our own legally binding targets, we are committed to halting the decline in nature by 2030 and we are among the first countries in the world to commit to net zero by 2050.
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21:20
My right hon. Friend the Prime Minister has set out our objective, which is to grow the economy with better-paid jobs and improved opportunities throughout the country. If we are to meet that objective, energy-intensive industries such as ceramics, glass and steel will be crucial. As we continue our transition to net zero, about which my hon. Friend spoke so passionately, they will also be crucial to the manufacture of everything from electric cars to wind turbines, and we will do all we can to support them. In my role as Minister for Industry, I have engaged with business and trade associations, and have witnessed at first hand their drive and passion to work with the Government to find a sustainable solution to those challenges that works for us all.
We can all agree that the last few years have been exceptionally difficult for everyone, and energy-intensive industries were no exception. Looking forward, however, I am confident that we can deliver a better future, unlocking the opportunities that net zero offers to build resilient industries bringing growth and jobs to communities across the country and providing security, opportunity and prosperity in the years to come. We have already made enormous progress: between 1990 and 2019 we grew our economy by 76% and cut our emissions by 44%, decarbonising faster than any other G7 country.
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10:36
The Government have a clear long-term plan to accelerate our transition away from expensive fossil fuels and to meet our net zero targets. The electricity network is fundamental to this transition, and it needs to be transformed at an unprecedented scale and pace to allow the system to accommodate new renewable and low-carbon generation. The network also needs to accommodate an expected doubling in overall electricity demand by 2050, as we electrify sectors including transport, heat and industry. My right hon. Friend the Member for North Somerset identifies a clear problem that needs to be addressed.
However, it currently takes between 11 and 13 years to build or reinforce new onshore transmission network infrastructure, from initial planning to final completion and commissioning. Consequently, the system operator estimates that constraint costs funding via consumer bills could increase by £1 billion per year in 2022 to £4 billion per year in 2030. That explains why the electricity network is such a critical enabler of our net zero, affordability and energy security objectives and why the Government aim to dramatically accelerate these build timelines.
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15:34
After COP26, we were able to say with credibility that we kept the pulse of 1.5° alive. Recent reports from the UN show that even in extremely challenging economic and geopolitical contexts, the Glasgow climate pact is working and we have made some progress. For the first time ever, global energy policies are strong enough for fossil fuel use within this decade to peak if they are implemented. I know that the whole House will join me in paying tribute to my right hon. Friend the Member for Reading West (Alok Sharma) for his inspirational leadership as President of COP26 and for his role during COP27.
At the G20, which was attended by the UK Prime Minister, leaders agreed to implement fully the Glasgow climate pact commitments to limit global warming to 1.5° and to accelerate coal phase-down and the transition to clean energy. The Glasgow climate pact remains the blueprint for accelerating climate action in this critical decade. With a difficult winter ahead of us all, more than 100 leaders arrived at the beginning of COP27. The Prime Minister pledged to speed up the transition to renewables, create new high-wage jobs, protect UK energy security and deliver on net zero. He chaired a high-level meeting on forests and announced new support for climate-vulnerable countries. The negotiations concluded in the early hours of yesterday morning, and the Minister for Climate and the previous COP President are both on their way back.
The progress made on loss and damage at COP27 is significant. It has the potential to support the most vulnerable and to increase that support in future. We had to fight to keep 1.5° alive, but the deal in Egypt preserves the historic commitments that countries agreed to last year in the Glasgow climate pact. As the Prime Minister said yesterday, we
“welcome the progress made at COP27, but there can be no time for complacency.”
Continuing to drive global ambition and the implementation of net zero commitments is vital to the future of our planet. More must be done.
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00:02
As for providing a fund, COP27 agreed to establish a fund, which was negotiated just yesterday, to respond to loss and damage as part of the wider funding arrangements to mobilise support. The UK’s view is that discussions should consider the widest possible sources of contributions, which will be fleshed out in further negotiations. The UK commitment of £11.6 billion to support that commitment continues, and support will continue for the most vulnerable, who are experiencing the worst impacts of climate change. We will also triple our funding for adaptation, to reach £1.5 billion a year in 2025.
The hon. Lady also talked about new oil and gas licences. The UK remains fully committed to its COP promises, as well as our domestic climate commitments, including the UK’s target to reach net zero by 2050 and to phase out coal by 2024. In the near term, our priority is keeping our domestic production online to help the UK through what could be a difficult winter.
We achieved so much at COP26 in Glasgow, under the leadership of our very own COP26 President. When the UK took on the presidency, just one third of the global economy was committed to net zero. Today that figure is 90%. There is no time to be complacent, but we will continue to campaign, as we always have done, and continue to be leaders in this field.
During COP27, the PM raised the issues of imprisoned writer Alaa Abd el-Fattah with President Sisi and resolving the consular issue. I do not have any further details on that right now, but I know that those words will be incredibly impactful.
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My hon. Friend hits it on the head. When local leadership delivers net zero targets, so much can be achieved. I was the buses Minister in a previous life, so his question is close to my heart. I am so pleased that Coventry will be the first place in the country to be driving forward so many electric buses, with the £150 million grant that has been made available.
I know that the previous COP President said that the 1.5° target was hanging by a thread, but there is so much that came out of COP27 that we should be proud of. The Prime Minister reinforced the UK commitment to deliver £11.6 billion in climate finance and announced a tripling of funding for climate adaptation, to £1.5 billion in 2025. The UK also announced a further £65.5 million for the clean energy innovation facility, which provides grants to researchers and scientists in developing countries to accelerate the development of clean technologies. So not only are we leading with policy; we are also trying to help other countries to be part of the net zero technology revolution.
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15:48
It is true that the COP26 President said 1.5° is on life support, but that does not mean COP27 is a failure. Significant progress was made, especially on providing support for the most vulnerable and increasing that support for the future. We have to keep fighting to keep 1.5° alive, but the deal in Egypt preserves the historic climate commitments agreed in last year’s Glasgow climate pact. It is important to recognise how much was achieved at Glasgow by the COP26 President.
Questions were raised on the further outcomes of COP, but I sometimes feel that, because so much has been negotiated, we do not appreciate how far we have come. During this presidency, there has been extensive lobbying for all countries to assess their 2030 nationally determined contributions to keep 1.5° in reach and to deliver on the Glasgow climate pact. More than 90% of the world’s GDP is now covered by net zero commitments, and 169 countries have put forward new or updated 2030 NDCs, resulting in reductions compared with previous NDCs. Of those, 29 new or updated NDCs have been submitted since COP26.
Full implementation of these NDCs is consistent with about 2.5° of warming, and full implementation of the net zero commitments could see warming as low as 1.7°. Fifty-four countries and parties have submitted long-term strategies so far, and this includes 10 new or updated submissions since COP26.
This remains a priority for the Government, and we not only have a Minister and a Department focused on climate and energy, but it is the Prime Minister’s focus, too. He came to the Dispatch Box just last week to make an extensive statement and to respond to colleagues’ questions. The legacy of COP26 will continue, and we will continue our leadership role, too.
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15:49
I think we all have warm words for the COP26 President and the leadership he has shown. Obviously, he will continue to provide that leadership, and people around the world will be looking at him to see what he says in the future and at what was delivered at COP27.
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Once again, my hon. Friend hits the nail on the head. The climate change performance index is not run by the Government; it is an independent organisation that monitors these issues. The UK is the only G7 country to be in the top 10, which shows that we are world leaders. Obviously, I cannot comment on his points about how individuals and political parties with issues about reaching net zero would do better to focus their attention on those other countries that are not doing so well.
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15:53
I do not keep a tab on what papers or books the hon. Gentleman reads. I am sorry that he is disappointed that there is not a Cabinet Minister in the Chamber, but, as I have said, they were involved in negotiations at COP and they are now on their way back. The urgent question was granted and here I am. No one is denying the importance of what is happening at COP. We must make sure that we reach net zero. That applies not only to this country, but to countries around the world with which we have to negotiate.
I am anxious that we do not leave this Chamber with a picture of doom and gloom. Negotiations have taken place and there has been some progress, but sometimes we overlook that progress. I know that what matters to my constituents will no doubt matter to the hon. Member’s constituents as well. On the forests and climate leaders’ partnership, for example, 23 countries and the EU are accelerating momentum to halt and reverse forest loss and land degradation by 2030. The UK has also confirmed £150 million to protect rainforests and natural habitats. That is as a result of our leadership. It is not perfect, but we should be so proud of how far we have gone.
The accelerating to zero coalition has also been launched, and it has been announced that the zero emissions vehicle declaration has 210 signatories. Furthermore, the breakthrough agenda will result in tangible actions being taken by countries that account for more than 50% of global GDP. There is much more to do, but there is a lot to be proud of. We should continue moving forward.
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00:02
I have indeed answered that question and focused on the fact that we are aiming to reach net zero. We have to ensure that we have a mix of energy, and we have to phase out at a pace that means that we have a certain level of resilience and access to fuel and energy. We cannot just switch off the tap today and assume someone is going to step in tomorrow.
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15:59
There was so much in that question. Rest assured, I am never driven by any guilt trip whatsoever. I am not sure how far I can push the envelope, but there is a certain something about people flying in and out while we are trying to drive down greenhouse gas emissions. There is some hypocrisy there.
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16:03
The tail end of that question was answered by the Prime Minister when he gave his statement just last week. On the question about Brazil, at COP27 we committed to £90 million to the Congo basin, a part of the £1.5 billion put in place to invest in the world’s forests. I am not sure if I already made the point that the UK is playing a leading role in developing the Indonesia just energy transition partnership, which was announced at the G20 leaders’ summit in Bali and will mobilise £20 billion in the next three to five years. We should take a moment to recognise that the negotiations on Sunday morning will help a number of those countries that do not do as well as us and ensure that they have the support they need.
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We are committed to 1.5°, which is why we have a net zero strategy and why we hosted and led COP26 and continue to lead at COP27. I have already spoken about the number of programmes, policies and investments that we are making. Between 1990 and 2019, we grew our economy by 76% and cut our emissions by more than 44%, decarbonising faster than any other G7 country. Those are not words; those are deeds.
The hon. Gentleman talks about oil and gas. As I have said, the UK remains fully committed to its COP promises. We will continue to progress the expansion of renewable energy to generate 95% of electricity from low-carbon sources by 2030. No other major oil-and-gas producing nation has gone as far as the UK in addressing the role of oil and gas in their economy. The opening of the most recent licensing round by the North Sea Transition Authority followed the publication of the climate compatibility checkpoint, and it should be seen in the context of the North sea transition deal. That includes emissions-reduction targets consistent with the Government’s net zero strategy, which establishes the UK’s pathway for meeting carbon budget and international targets.
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I so enjoyed that question, but I am not the Climate Minister or in line to be the next COP President, so I cannot say what our negotiations will come to, but the point is that we are leading countries both in Europe and internationally. We want to ensure that they can come along with us and are as close as we are to reaching net zero targets. We will continue to provide that leadership.
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I can offer concrete examples of where we can confidently showcase what we are doing compared with other countries. I did not say it was a competition, but every time I offer up how we have moved forward compared with other countries, I am told that we are not going far enough. We have a jet zero strategy, and we know that maritime is a major issue when it comes to the climate, so we have a clean maritime plan—I believe that we were the first country in Europe to produce one. We have led the way on enabling many industries to reach net zero. We are also doing that because we know that there will be more than half a million skilled, green and well-paid jobs in all those industries, and we want to make sure that we provide that sort of support for communities up and down the country.
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The hon. Gentleman challenges me again to put our programme forward before the COP27 delegation has even arrived in Westminster. I would argue that they want to ensure that, where we have not gone as far as we wanted at COP27, we can achieve those ambitious targets at the next COP. As everyone mentioned earlier, the world is watching and we cannot be in the situation of saying that 1.5° is hanging by a thread.
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16:11
The UK Government absolutely understand, which is why we were leading the charge in Glasgow at COP26 and continued to do so at COP27. That is why the President of COP26 had the confidence to deal with the negotiations as they were. We knew that 1.5° was going to be tricky; it is an international negotiation. Considering the international players that were involved, we are in a good place, but we need to move forward. The hon. Member also mentioned the funding that was negotiated just yesterday morning, which is on top of the £11.6 billion. I am not sure it took an intervention by his party; it was a result of international negotiations that have been taking place at COP.
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22:36
I will try my best to respond to all the points raised, but I will just run through what we are doing within the sector to help bus manufacturers. As my right hon. Friend mentioned, this sector is incredibly important for the Government’s green growth, making sure that we are levelling up across our country and driving emissions to net zero by 2050. In a previous life, I was the bus Minister, making sure that we were indeed supporting zero-emission buses.
As I am also joined by the Secretary of State for Northern Ireland, my right hon. Friend the Member for Daventry (Chris Heaton-Harris), it would be remiss of me not to mention his visit to Ballymena factory to pay tribute to the company’s net zero emission products and to affirm the Government’s support for hydrogen. I believe that he also declared the innovative technology fund, which provided £11.2 million for Wrightbus. It is incredibly important that we are doing everything we can to support UK manufacturers.
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22:40
That is why the DFT has asked for local transport authorities to submit proposals that have the support of bus operators, to ensure that they work together. Once funding has been awarded to local transport authorities, they will work with bus operators to implement the proposals, but ultimately decisions about the procurement of zero-emission buses will be made locally by local transport authorities or bus operators. DFT is not able to require bidders to design their procurement process in a way that would explicitly favour UK bus manufacturers.
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A lot of work has been taking place on localised supply of key components to meet the growing demand for electric vehicles, but we need to make sure that local companies have the opportunity to bid for tenders. I should mention the net zero strategy produced in October 2021, and the Government’s promise of £350 million over the next three years to deliver the automotive transformation fund.
I assure hon. Members that this is not the end but the start of a conversation. We need far more transparency, especially regarding those councils that seem to be giving the majority of their contracts to one particular country or place overseas; that is not good news for us here. We recognise the challenges that we face. We need to help our local authorities to procure buses from the UK. Of course, the supply chain for zero-emission buses will always be global, but we want to make sure that UK bus manufacturing remains strong, and this obviously involves the key components. I will end there. I am keen to meet my right hon. Friend as soon as possible to make sure that everything discussed today is put in writing.
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I note that the hon. Member has raised the issue a number of times with BEIS. I am grateful that he has done so again. We are encouraged to hear about the development of new hydrogen technologies in Swansea. I know that the previous Secretary of State visited Swansea University. A range of Government support is already available for hydrogen production. The net zero hydrogen fund, the net zero innovation portfolio and the UK shared prosperity fund would help very much in Swansea.
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I congratulate the hon. Member on presenting the report, and I look forward to working with him on this on the Select Committee. One of the themes that have come out is that of course the environment is key, but so is ensuring that the economy is well managed. Does the right hon. Member—I mean, the hon. Member—agree that covid has had a financial impact on the business sector and that we will need to do more to help businesses to help us to achieve net zero?
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16:32
I welcome my hon. Friend to her new position. It is a difficult job, and she is doing it very well at the Dispatch Box. A total of 40% of all exports outside the EU are dealt with at Heathrow airport. Any future trade deals depend on Heathrow expanding. Given that the UK Civil Aviation Authority already has a net-zero policy, does my hon. Friend agree that it is compatible for Heathrow airport to expand and for us to meet our net-zero targets?
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14:42
What will help most Members in the Chamber is a national bus strategy. It is key that the bus strategy both adopts new technology and promotes cleaner air quality, fitting into our decarbonisation strategy. Since 2010, we have set aside more than £250 million to replace and upgrade buses, meaning that we now have more than 7,000 cleaner and better buses on our roads. Most recently, the electric bus launched at Birmingham airport is incredibly quiet and has USB portals. However, that is not as good as the No. 18 bus, which even has wood-effect flooring—I hope to be able to take a journey on that bus in future.
We can go even further. Decarbonisation and tackling congestion were mentioned by both my right hon. Friend the Member for Staffordshire Moorlands and my hon. Friend the Member for Newcastle-under-Lyme. We must drive down congestion to bring greater economic benefits to the villages, towns and cities that they represent. We hope to lead the world, in particular in driving down emissions and by having the first ever all-electric bus town or city, to which we have already made a financial commitment. When we host the 2020 United Nations climate change conference in Glasgow, we can use that prime opportunity to talk about how public transport drives our decarbonisation agenda.
I must reflect on the comments made by my hon. Friend the Member for Stafford, who spoke passionately about the environment. I hope she can relay back to her constituents our commitment to decarbonisation. She mentioned access to Sunday services, the Cannock Road service and loneliness. The bus strategy is embedded into the Government’s loneliness strategy, which I have previously represented across Whitehall Departments. I hope that demand-responsive transport will provide some succour for her constituents.
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I am today announcing the publication of the clean maritime plan, the UK’s route map to clean growth for the maritime sector and pathway to zero-emission shipping. The UK has one of the world’s proudest and most innovative maritime heritages. In January 2019, the Government launched Maritime 2050, a landmark strategy setting out our vision for the future of the British maritime sector. The clean maritime plan is the environment route map of Maritime 2050. It identifies ways to tackle air pollutants and greenhouse gas emissions in parallel, while securing clean growth opportunities for the UK. A cleaner shipping industry will help make the air we breathe cleaner and safer, and create a healthy environment for the future.
It builds on the role the UK played as a leading voice in advocating for an ambitious global target to reduce greenhouse gases from shipping. The initial greenhouse strategy agreed by the International Maritime Organisation in 2018, set a target to reduce GHGs from international shipping by at least 50% by 2050 and to phase them out completely as soon as possible in this century. By publishing the clean maritime plan, the UK becomes one of the first countries since the agreement of this initial strategy to publish a national action plan. The plan is also the first cohesive national strategy to reduce domestic shipping emissions, as part of our journey to meeting net zero.
To capitalise on this economic opportunity and achieve zero-emission shipping, the clean maritime plan makes the following core commitments:
A call for evidence in 2020 on non-tax incentives to support the transition to zero-emission shipping, as well as a consultation on how the renewable transport fuel obligation could be used to encourage the uptake of low carbon fuels in maritime, and a green finance initiative for maritime, which will be launched at London international shipping week in September.
A working group and study to identify and support potential UK zero-emission shipping clusters.
A maritime emissions regulation advisory service (MERAS), in place by 2020, to provide dedicated support to innovators using zero-emission propulsion technologies.
The plan also contains a number of zero-emission shipping ambitions, outlining the Government’s vision for the future of zero-emission shipping and the milestones that will need to be achieved to reach it.
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15:05
Before I address some of the issues raised about climate change, I remind the hon. Member for Reading East that travelling by rail is the most efficient way to travel. It is a good form of transport because it means that passengers do not fill up lots of cars on the motorway or take flight. The hon. Gentleman threw down the gauntlet on a number of issues relating to carbon impacts; he gave me the right to reply in writing, but I may have the answers in front of me, so I will do my best to respond.
Compared with most other transport modes, high-speed rail offers some of the lowest carbon emissions per passenger kilometre, significantly less than cars and planes. As an annual average, the scheme’s carbon footprint over the course of the construction period will represent less than 1% of the UK’s annual construction carbon footprint. The scheme is expected to save 419,000 tonnes of carbon dioxide emissions through modal shift in transport—that was a very good term that the hon. Gentleman used—with approximately 364,000 tonnes saved as a result of road, rail and domestic air passengers switching to high-speed rail, and 55,000 tonnes saved as a result of road freight moving on to existing rail lines due to released capacity from the scheme. Over the 120-year design life of the scheme, the net carbon emission reduction from modal shift is estimated at minus 307,000 tonnes.
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10:24
When it comes to maritime emissions, we can look at the work of the International Maritime Organisation, which is opposite us on the Thames. A huge amount of work was done earlier this year to look at driving down greenhouse gas emissions by 50% by 2050. It is interesting to note that this Government led the high-ambition coalition to get that agreement made, so we are not only leading nationally, but driving down greenhouse gas emissions internationally as well.
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As the global maritime sector adapts to challenges such as climate change, rapid technological advances and security concerns, Maritime 2050 sets a series of strategic ambitions around which Government and the sector will focus their efforts, and core values which we will be guided by.
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10:09
Since its inception, the policy on biofuels in the UK has been complex and not without controversy. Immediately after the renewable transport fuel obligation scheme—RTFO—was set in law in 2007, the Gallagher review into the indirect effects of biofuel production was published. It became clear that to maintain faith in the emissions reductions achieved and to retain consumer buy-in, we would have to address the negative indirect effects of certain biofuels. To reward fuels that may perform worse than the fossil fuels they replace would have undermined the rationale of a scheme designed to reduce greenhouse gas emissions.
It was with those challenges in mind that the Department jointly established a transport energy taskforce with the Low Carbon Vehicle Partnership, to consider how biofuels can contribute to meeting our climate change commitments in the context of measures introduced to address the negative indirect impacts of some biofuels.
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15:42
The taskforce report to Government noted not only the potential benefits of E10 in helping the UK to meet our renewable energy targets, but the barriers and risks associated with its introduction, not least in respect of ensuring consumer acceptance. It is clear that UK suppliers, including of bioethanol, have made great progress in ensuring that renewable fuel delivers reductions in greenhouse gas emissions.
Since the RTFO was introduced in 2008, savings in greenhouse gas emissions have increased significantly from 46% to 70% in 2014-15. Latest data suggest that current biofuels provide an average 71% reduction in greenhouse gas emissions even when land use change impacts are included, but it has always been essential to evolve the policy on biofuel. That way, we maintain the integrity of the schemes that promote its use, such as the RTFO.
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15:51
The Government agree that the aim must be to reduce emissions and that low carbon fuels must play a part. The regulations made last year introduced a greenhouse gas reduction obligation on suppliers and incentives for the development of fuels capable of delivering higher greenhouse gas emissions reductions. These allow us to reward low carbon fuels because of the emissions reductions they deliver. We have also made £20 million of match capital funding available under the future fuels for freight and flight competition. In the wider context, the Government have recently published two major strategies focused on combating climate change and improving the UK’s air quality. Our Road to Zero strategy sets out a clear pathway to zero emissions vehicles by 2050, and this week we have published our clean air strategy. The pathway is not just about driver behaviour and electrification. Low-carbon fuels will continue to play a vital role in reducing greenhouse gas emissions from the vehicle fleet.
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15:53
I thank everyone for contributing to the debate. The use of biofuels is and will remain a challenging policy area. However, this must never stop us from finding the right balance between maximising the contribution that low-carbon fuels can make to reducing greenhouse gas emissions and taking into account the interests of consumers.
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The Government recognise the significant harm that air pollution can cause to human health. When the hon. Gentleman raised the subject in a previous debate, we wrote to him about it; I would be pleased if he allowed me to respond in writing again. We have now published our clean air strategy, which includes further measures on ports and shipping. Shipping must play its part, and I was pleased that last year my Department established the Clean Maritime Council. One of the council’s first tasks was to develop a clean maritime plan by spring this year, setting out domestic policies to reduce greenhouse gas and pollutant emissions from shipping. Our clean air strategy makes further commitments, including the development of air quality strategies by ports. It will supplement the good progress made through international action, such as the North sea emission control area and the tougher global controls on sulphur emissions from 2020, which have led to major reductions in emissions.
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09:07
The regulations are essential to ensure that legislation on ROs, which are a crucial part of the regulatory framework for shipping, continues to work effectively in the UK from day one after our EU exit. I am grateful that the hon. Gentleman will allow me to respond in writing to some of the issues that he raised. However, I remind him that we are part of the high ambition coalition driving the IMO’s standards not only on greenhouse gas emissions but on other emissions into our waters.
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09:00
That the Committee has considered the draft Merchant Shipping (Monitoring, Reporting and Verification of Carbon Dioxide Emissions) (Amendment) (EU Exit) Regulations 2018.
It is a pleasure to serve under your chairmanship, Mr Betts. We are debating regulations that will amend EU regulation 2015/757 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport. The effective monitoring and reporting of carbon dioxide is an important step on the road to achieving a more environmentally sustainable shipping sector. We expect that the emissions data gathered will help the international community to develop more effective measures to reduce greenhouse gas emissions from ships. The EU regulation established rules for monitoring, reporting and verifying CO 2 emissions from ships above 5,000 tonnes that make voyages that start or finish in a port in an EU member state. The EU regulation has direct effect in UK law.
Shipping companies have already prepared monitoring plans and have been collecting data since 1 January 2018. Ships within scope are required to carry a valid document of compliance from 30 June 2019. The EU regulation applies only to ships visiting ports that are under the jurisdiction of an EU member state. It would therefore cease to have effect when the UK leaves the European Union. The changes made in the regulations are therefore necessary to ensure that the monitoring, reporting and verification requirements of the EU regulation continue to apply to ships serving UK ports. If the UK failed to correct the EU regulation, ships that call at EU ports would still need to report under the EU system. However, those trading between the UK and non-EU ports would not need to report. That would create an uneven playing field between companies, and the evidence on greenhouse gas emissions would be weakened.
The UK is a strong supporter of global action to tackle climate change. In April this year, we helped lead the high ambition coalition to secure agreement at the International Maritime Organisation on an initial strategy on greenhouse gas emissions. That includes an historic first emission reduction target for ships of at least 50% by 2050, which is an important step forward in tackling emissions from international shipping—the last major sector not to have an emissions reduction plan. The International Maritime Organisation has also produced its own system for monitoring CO 2 emissions from ships. Its data collection system has a similar objective to the EU MRV regime, but will be effective from 1 January 2019, a year later than the European system. Robust information on emissions from ships is important when taking action to reduce such emissions, and that is what the EU regulation aims to provide. If we did not ensure that the regulation continues to have effect, we would be weakening the evidence base on which the development of effective and appropriate measures depends.
As well as amending the EU regulation, the instrument makes a number of other changes, mainly technical and operational in nature, to ensure that the system continues to work. Those changes are to Commission implementing regulation 2016/1927 on templates for monitoring plans, emissions reports and documents of compliance, and the Merchant Shipping (Monitoring, Reporting and Verification of Carbon Dioxide Emissions) and the Port State Control (Amendment) Regulations 2017. The latter regulations provide an enforcement mechanism for the EU regulation in the United Kingdom.
The regulations before the Committee are intended to ensure that all ships visiting UK ports are subject to the same reporting requirements and that the UK continues to play its part in international action on greenhouse gas emissions from shipping. They are fully supported by the Government, and I commend them to the Committee.
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10:08
I can give my hon. Friend the fullest assurance. Shipping is an international industry, and the UK strongly believes it should be regulated at an international level by the IMO. My officials and I recently played a leading role at the marine environment protection committee, where we secured the landmark agreement on phasing out greenhouse gas emissions. The UK takes great pride in being the host Government of the IMO, which is based just across the Thames, and we will continue to maintain our active role within the organisation’s work for the foreseeable future.
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On 13 April the International Maritime Organisation (IMO) agreed a comprehensive strategy to reduce greenhouse gas emissions (GHGs) from international shipping. The United Kingdom, led by the Department for Transport, played a leading role in the negotiations, pushing for an ambitious and credible outcome that would enable shipping to play its part in meeting the Paris agreement temperature goals.
A target of at least 50% reduction, and an aim for 100% reduction, in total GHG emissions from shipping by 2050;
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17:19
Those international controls are having a major positive impact on air quality, but I agree with the hon. Gentleman that we need to go as far as we can on this. The controls have been successful in achieving major emissions reductions, and in stimulating the development and uptake of alternative fuels, innovative green technologies and new ship designs. That said, we are not complacent and we know that much more needs to be done and can be done. At the international level, the UK is strongly pushing for an ambitious and credible strategy to reduce greenhouse gases from shipping, and I invite the hon. Gentleman to support the UK’s efforts to get a strong and forward-thinking agreement at the International Maritime Organisation as we enter the final weeks of negotiations after Easter. Furthermore, we will continue to press for international action that will enable the uptake of low and zero-emission technologies. However, we also want to ensure that we are doing all we can to reduce emissions in UK waters.
I mentioned before that my Department was developing a maritime air quality strategy to feed into the Department for Environment, Food and Rural Affairs’ clean air strategy. My officials are engaging with stakeholders to understand the best approach to reduce emissions, and we are working with industry, academia, trade bodies, ports and other Departments to ensure that any strategy is credible and time-proof. As part of that, we are clear that we need a strong evidence base about the impact of shipping on the environment to inform decisions about the best solutions to reduce pollutant emissions from ships, and we need to ensure that any solutions to reduce pollutant emissions are not dealt with in isolation, but support the need to reduce greenhouse gas emissions. We consider that a holistic strategy is the best way to enable the long-term goal of zero-emission shipping in the UK.
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My right hon. Friend will recall meeting my concerned residents in Wealden, who talked about other countries’ commitments to climate targets. What is her Department doing to encourage other countries to meet their climate targets?
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