Draft Green Gas Support Scheme Regulations 2021 - 3rd November 2021

Here are the climate-related sections of speeches by MPs during the Commons debate Draft Green Gas Support Scheme Regulations 2021.

Full text: https://hansard.parliament.uk/Commons/2021-11-03/debates/E55CAAA3-EFBA-4F67-9E96-DC2466C8CB1B/DraftGreenGasSupportSchemeRegulations2021

09:25 The Minister of State, Department for Business, Energy and Industrial Strategy (Greg Hands)

The UK, as we know, is the first major economy in the world to set a legally binding target to achieve net zero greenhouse gas emissions by 2050. Between 1990 and 2019, our emissions decreased by 44%, the fastest reduction in the G7, and we continue to advance sustainability through the Prime Minister’s 10-point plan for a green industrial revolution, the net zero strategy and, most relevant to this policy, the heat and buildings strategy, which was released last month.

The heating of our homes, businesses and industry is responsible for 21% of the UK’s greenhouse gas emissions. Decarbonisation of heat is recognised as one of the biggest challenges in meeting our climate targets, requiring virtually all heat and buildings to be decarbonised. Increasing the proportion of green gas in the grid is a practical, established and cost-effective way of reducing carbon emissions and contributing to the UK’s net zero target, lowering carbon emissions from both domestic and industrial gas boiler use.

The green gas support scheme is expected to help to support high-quality jobs in the renewable energy sector at a time when economic recovery is important to us all. It is anticipated that when taking into account both direct and indirect jobs, the green gas support scheme could support up to 1,600 jobs per annum during the construction phase of the plants and up to 1,000 jobs once plants are operational.

The Government believe it is appropriate for gas consumers to pay towards decarbonising the gas grid and have taken the decision to fund the green gas support scheme through a levy. The levy will be the sole funding source for the GGSS, and will be applied to all licenced fossil-fuel gas suppliers. The Government acknowledge the impact of rising gas prices on consumer energy bills at present. We are implementing stringent budget control measures to ensure that costs of the levy are as low as possible and cannot rise unexpectedly. The cost to an annual gas bill will be relatively low, starting at about £2.50 per annum and peaking at about £4.70 in 2028 on an average gas bill, assuming a transition to a volumetric levy.

In conclusion, the scheme established by this draft statutory instrument will support ongoing investment in the biomethane industry and enable the development of new production plants for the injection of biomethane into the gas grid. In supporting this investment in new anaerobic digestion capacity, we expect to support more jobs, growth and innovation in the biomethane industry, while delivering important carbon savings, which are a vital part of meeting our net zero targets.

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09:44 Dr Whitehead

Other than having those hopefully brief and not very taxing questions, the Opposition support the green gas support scheme and we support that scheme starting as soon as possible in order to ensure that biodigestion takes its proper place in the panoply of measures that can lead us towards net zero in a coherent way.

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09:47 Greg Hands

I thank the hon. Member for Southampton, Test and my hon. Friend the Member for Broadland for their contributions, and other Members for being here to debate this important issue. To meet net zero, virtually all heat in buildings will need to be decarbonised. Moving away from burning fossil fuels for heating presents enormous opportunities for jobs, growth and levelling up.

The scheme will help to meet commitments made in the 2019 spring statement and the 2020 Budget to increase the proportion of green gas in the grid. It will promote a circular economy by encouraging the use of domestic and industrial food waste to heat our homes and businesses, and it will contribute to achieving short-term carbon budgets in our broader target of net zero emissions by 2050. Additionally, the scheme will support high-quality jobs in the renewable energy sector, as well the development of the diversification of the rural economy, in line with the Government’s overall agenda.

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