Here are the climate-related sections of speeches by MPs during the Commons debate Energy Bill [ Lords ] (Sixth sitting).
Alan Brown (Kilmarnock and Loudoun) (SNP)
I know that the shadow Minister said he did not want to speak to amendment 91, but for pure indulgence I would like to say a few things. The shadow Minister admitted that the amendment is not quite factually correct. It is clear that it was actually more on message for the Government than the Government are themselves in terms of heat pump installations. If it had been moved, I would have supported the amendment because it would set a much more ambitious target for the installation of heat pumps: at least 600,000 per year by 2025, instead of the Government’s target of 2028, which is completely out of kilter with the recommendations of the Climate Change Committee. I urge the Government to reconsider that and adopt a more ambitious programme.
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11:43 Andrew Bowie (Conservative)
I will answer the hon. Gentleman’s original questions. He asked why the Bill does not introduce the 900,000 heat pump installations recommended by the Climate Change Committee’s balanced pathway to net zero. Indeed, he asked why our aim is to introduce two thirds of that number, 600,000. The Government’s ambition for developing the heat pump market this decade is strategically compatible with all future heating scenarios, including those where hydrogen plays a major role. I know that the hon. Gentleman is fully aware of that, given his interest in hydrogen.
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Andrew Bowie (Conservative)
The clause defines what we mean by a hydrogen grid conversion trial and expands the duty of the gas transporter running the trial to participants to undertake work without charge. It also extends certain powers of entry contained in the Gas Act 1986 so that they apply for the trial. That will facilitate the effective and safe delivery of a large village hydrogen heating trial by 2025, which will provide crucial evidence to inform future decisions on the role of hydrogen in heat decarbonisation.
Taking timely strategic decisions on heating is critical to meeting future carbon budgets and the UK’s net zero target. Subsection (1) allows the Secretary of State to designate a hydrogen grid conversion trial and ensures that both clause 114 and clause 115 are narrow in scope and would apply only for the purposes of such a trial. Clause 114 also makes certain modifications to the Gas Act 1986 to build on existing provisions concerning powers of entry. That will ensure that the organisation running the trial has clear grounds to enter private properties to carry out any essential works, including replacing appliances and installing and testing safety valves; undertake inspections and tests for the trial, such as safety checks; and safely disconnect the gas supply in a property.
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12:36 Katherine Fletcher
I am grateful to the hon. Member for Southampton, Test for tabling the new clause, but given the opportunity for clean, net zero energy—which really could be the panacea for the world, as tree-huggers like me would say—in the UK we should look to tread lightly, but carefully, with any regulation of an industry that has such a level of potential and to which the UK has contributed so much already. He mentioned torus structures, but those are only one of a series of different potential generational tools—torus might be the research tool, not the commercial tool, so his concerns could disappear with a completely different production facility, perhaps based on electromagnetic rather than physical containment.
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12:43 Andrew Bowie (Conservative)
Transport is the largest emitting sector of greenhouse gas emissions, producing 26% of the UK’s total emissions in 2021. Low carbon alternatives to traditional fuels such as petrol and diesel will play an important role in our energy transition. The renewable transport fuel obligation and the forthcoming sustainable aviation fuel mandate supports our policy on decarbonising transport by encouraging the production and use of renewable fuels that do not damage the environment.
Clause 117 will enable two types of low carbon to be treated as though they were renewable for the sole purpose of those schemes, helping the UK to further decarbonise transport. The two low carbon fuels are recycled carbon fuels, produced from otherwise unrecyclable waste plastics or industrial waste gases that cannot be avoided, reused, or recycled, and fuels derived from nuclear energy.
Both fuel types have the potential to deliver significant carbon savings over traditional fossil fuels and are a vital replacement for difficult-to-decarbonise sectors such as commercial aviation and heavy goods vehicles.
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Olivia Blake (Labour)
I have a few concerns about clause 117, which would, as the Minister outlined, allow fossil fuel waste to be reclassified as renewable energy in the form of fuels for policies including the proposed sustainable aviation fuel mandate, which is currently being consulted on by the Department for Transport. It seems the Department would like to be able to include recycled carbon fuels, including unrecyclable plastic, as eligible fuels under the sustainable aviation fuel mandate. That is why the Bill will permit recycled carbon fuel to be treated as renewable, to help us to meet our sustainability targets.
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12:50 Andrew Bowie (Conservative)
I thank the hon. Member for Sheffield, Hallam for her questions. As well thought through and well meaning as they are, the renewable transport fuel obligation already requires that fuels meet strict eligibility criteria to ensure that they are sustainable and provide minimum greenhouse gas savings compared with traditional fossil fuels such as petrol or diesel. In respect to recycled carbon fuels, we are currently consulting on a detailed methodology to ensure that the emissions associated with their production and use are correctly quantified. Using nuclear energy to produce hydrogen, for example, has very low operational and full life cycle carbon intensity, with no indirect land use impacts.
The hon. Lady also asked about the potential that this may, by accident, incentivise or perpetuate the creation of plastic waste or industrial processes that generate waste gases. Recycled carbon fuels are fuels produced from fossil waste that cannot be avoided, reused or recycled, and have the potential to reduce greenhouse gas emissions relative to petrol or diesel. I know that she understands that.
Climate Change Act 2008: meaning of “UK removals”
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12:51 Andrew Bowie (Conservative)
This is a very short clause. The purpose of the clause is to enable engineered removals of greenhouse gas emissions to count towards our carbon budgets by amending the definition of UK removals in the Climate Change Act 2008. This amendment follows a direct recommendation from the Climate Change Committee in their sixth carbon budget report on greenhouse gas removals. In the net zero strategy, we set the ambition of deploying at least 5 million tonnes of CO 2 per year of engineered removals, such as bioenergy with carbon capture and storage and direct air carbon capture and storage, by 2030, in line with assessments made by the Climate Change Committee and the National Infrastructure Commission. This amendment provides for these removals to be included in the calculation of carbon budgets.
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12:52 Dr Whitehead
This is another stand-alone clause. We have discussed the question of DACCS and other forms of mechanical greenhouse gas removal before, and our consensus of understanding was that potentially this could be quite an important element of carbon removal in the future. It is therefore important that it is included in definitions and calculations, and we certainly support the change to achieve that outcome.
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Dr Whitehead
We come to a section of the Bill that I heartily approve of. I have long championed the idea that we set up an independent system operator in this country. It is really important in our next phase and where we go in renewing our infrastructure, and ensuring there are delivery mechanisms to cope with the renewable energy that we hope will be the mainstay of our carbon production. It is important not only that those systems are in place, but that they are in place as soon as possible. There will be discussions in this section about the best way of ensuring that the ISOP is set up in such a way that it can perform that function.
In the development of the grid so far, certainly as far as renewable energy connections are concerned, there is no real distinction between the high-level grid, which was the historic purview of National Grid and ISOP, and the lower-level grid, which is still pretty powerful but is in the hands of the distributed network organisations. Sometimes a false distinction is made between what is happening at National Grid level and what is happening at a more regional or local level. There is no real distinction now, because renewable sources, in particular, are seeking to substantially connect to 123 kV cables to a far greater extent than they are seeking to connect to high-level grid 440 kV cables. Consequently, some of the biggest backlogs in connection dates are not just in the high-level grid.
The Minister will be aware—we have discussed this previously in the House—that a number of large wind farms are getting connection dates to bring ashore and distribute the electricity they are producing not just a few years away, but in 2036. As I have mentioned previously in the House, that is one year away from when the Government have indicated they wish to see a predominantly renewable energy system in place. We may well have the tools to have the low-carbon energy system in place, but if we cannot deliver the electricity from those tools to anybody, we do not have a low-carbon energy system in place in the end. It is important that we get the system properly in place, so that it can deliver the connections and the offshore re-cabling. That way we will have a decent grid highway with anticipatory investment.
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13:12 Andrew Bowie (Conservative)
Before I expand on the Government’s position and explain why we will not accept new clause 1 or the hon. Gentleman’s amendments, I will acknowledge absolutely that connections and connection timelines are the biggest challenge we face—for electrification to grid, for driving our economy forward in the way we seek to and for reaching our net zero goals. Every single day for the past few months, but in particular this week, I have been engaging with DNOs, transmission operators, Nick Winser who conducted the independent review, Ofgem and the National Grid ESO about what we can do to drive down those timelines. At a critical point, part of that will be the creation of the ISOP. For the benefit of those who might be slightly confused, that is what we refer to outside the Bill as the future system operator—ISOP and the future system operator are one and the same thing.
I will now turn to the question asked by the hon. Member for Southampton, Test about why an advisory board would make ISOP risk-averse and not fully independent. We are concerned that, rather than enhancing independence, the members of such a board would likely hold various energy sector conflicts. That could crystallise in many ways, including resistance to systematic reform, advice to pay compensation to energy sector participants or an incumbent bias that would seek to frustrate new market entrants. Establishing an industry-led advisory board for the ISOP would be similar to establishing one for the Climate Change Committee—it is not required for an organisation that needs to remain independent, such as the Climate Change Committee, which we are using as the basis for how we proceed.
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