Here are the climate-related sections of speeches by MPs during the Commons debate Decarbonisation of Cement.
15:38 John Whitby (Labour)
However, cement also produces significant carbon emissions, with around 7% of all carbon emissions globally coming from cement—more than come shipping and aviation combined. To put that in scale, in the UK, cement produces more carbon emissions than the entire city of Birmingham. We simply cannot tackle the climate crisis, safeguard our planet for future generations and deliver a net zero economy without tackling this issue.
At the same time, our UK cement industry faces increased pressure, with UK cement production now at its lowest levels since 1950 and imported cement making up an increasing share of the market. Decarbonisation should never mean deindustrialisation, and without action, we risk losing high-skilled jobs across the midlands and the north and an industry that is vital to our nation.
To be clear, these projects have nothing to do with prolonging the use of fossil fuels. It is entirely about ensuring that we can safeguard this vital and important industry and protect the secure, high-quality, unionised jobs that are rooted in local communities such as the Hope valley. Without carbon capture and storage, we either have to stop producing cement or we fail to decarbonise—neither is an option that we can afford.
That is why Peak Cluster is so important. Based in the Hope valley, it is the world’s largest cement decarbonisation project, with the potential to decarbonise 40% of the UK’s cement and lime production. Under this project, carbon produced in Derbyshire through the production of cement will be captured and transported to Morecambe Net Zero, which will repurpose the Morecambe bay gas fields into a permanent and secure carbon storage facility, capable of storing more than 1 billion tonnes of CO 2 . That is a real example of how a just transition can protect workers and communities while reducing carbon emissions.
I have two specific questions for the Minister. First, will he confirm that the Government will establish a clear route to market for industrial carbon capture projects beyond track 1 and track 2? Establishing a clear route to market would give investors and operators confidence that a final investment decision on Peak Cluster and Morecambe Net Zero will be made within this Parliament. The sooner that is done, the sooner businesses will have the certainty needed to invest, and the sooner all of us will benefit from the growth that such investments will deliver.
Secondly, will the Minister commit to introducing a contract for difference-style model for carbon capture to ensure that projects like Peak Cluster have the revenue certainty needed to attract private capital? Contracts for difference played a key role in enabling the widespread growth in renewable energy, and can also play a major role in supporting the growth of carbon capture technology. However, investing in clean cement here in the UK will be of no use if our builders import more polluting cement from abroad. The amount of imported cement has tripled over the last 20 years. Not only does imported cement have a higher carbon footprint, but the use of such cement undermines our British industry. The Government’s announcement that they will introduce a carbon border adjustment mechanism is therefore very welcome news, and demonstrates that this Labour Government will not allow our industrial industries to be offshored.
The EU has plans to introduce mandatory embodied carbon reporting from 2028, and to set project limits on embodied carbon from 2030. When we left the EU, it was made clear that we would not reduce our environmental and climate standards, and I encourage the Government to align with the EU. The introduction of embodied carbon requirements in the EU also means that if we fail to decarbonise cement in the UK, our cement industry could be locked out of such markets, as builders will be required to use only low-carbon products in construction.
I finish by returning to Peak Cluster. After all, whatever other positive interventions we make, simple chemistry means that we cannot cut the majority of emissions from cement without carbon capture. If we do not invest now, we will simply kick this can down the road, allowing other countries to move ahead of us and develop this emerging industry before we do. Today, I once again encourage the Minister to invest in jobs, British industry and decarbonisation. That can be done only if we establish a clear route for carbon capture projects not included in track 1 and track 2, and I encourage the Minister to establish such a route as quickly and urgently as possible.
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15:40 Chris McDonald (Labour)
Before I talk more broadly about the challenge of decarbonisation, I will briefly set out the role that the cement sector plays in the UK. Cement is of course an incredibly ancient material, which was developed and used extensively across Europe by the Romans. However, it would be wrong to think of it as a material of the past. It is subject to constant innovation, as we heard from my hon. Friend.
My hon. Friend outlined the challenge of decarbonisation, and we need to find a way for the UK cement industry to cut emissions in the future. He mentioned that it is a very energy-intensive energy, and he rightly pointed out that the challenge in decarbonising cement is due to the calcination process in the manufacture of clinker. I have no extreme desire to turn the House into a lecture theatre, but it may be helpful to dwell for a moment on the chemistry of cement production.
That problem was recognised a few years ago by none other than Bill Gates. We imagine that Bill Gates goes to very exciting parties in California, but maybe they are not as exciting as we might think. He says that when he is at a barbecue with friends talking about decarbonisation, as they often do, his friends say to him, “Bill, decarbonising steel is very difficult,” and I know that is true from my career. He always says to them, “If you think decarbonising steel is difficult, decarbonising cement is almost impossible.” This is a challenge that even Bill Gates finds it difficult to address.
However, the UK has always been a pioneer in overcoming such challenges. As we have heard, many technologies have been developed in the UK, and I will expand on those in a moment. The UK has been a pioneer in cement, too. The invention of Portland cement 200 years ago by William Aspdin sparked a construction boom that shaped the country that we know today. That is what we need to harness now: innovation to face the challenge of decarbonisation. I will outline some of the progress that the industry and Government are making. There are, essentially, three opportunities for us in decarbonisation. The first is reformulating cement, so that it intrinsically has less carbon. The second is reduction—using less cement on each construction project. There are a number of ways of doing that. The third, which my hon. Friend described extensively, is carbon capture, which is a good place to start.
My hon. Friend spoke of the Peak Cluster carbon capture utilisation and storage project, which is partly located in his constituency. As he mentioned, the project has been developed outside the Government’s carbon capture usage and storage cluster sequencing process. It is an important project that aims to store over 3 million tonnes of carbon dioxide from the cement and lime factories that support jobs across Derbyshire, Staffordshire and the north-west. It could potentially decarbonise around half of our cement industry.
Between the cement technologies and the reduction in cement that I mentioned, we could reduce carbon dioxide emissions per tonne and overall by around 40%. Of course, that leaves a residual amount for which carbon capture and storage, either through a pipeline or some other transport network, would be required.
The previous Government accepted that decarbonisation meant de-industrialisation; this Government do not. Through our industrial strategy, we are taking action to reduce industrial electricity prices. We are consulting on uplifting the network charging compensation scheme, a component of the British industry supercharger, from 60% to 90%, and we will publish a response shortly. The Government will also introduce the British industrial competitiveness scheme from 2027, which will reduce electricity bills by up to 25% for over 7,000 eligible British businesses.
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