Annual Energy Statement - 27th July 2010

Here are the climate-related sections of speeches by MPs during the Commons debate Annual Energy Statement.

Full text: https://hansard.parliament.uk/Commons/2010-07-27/debates/10072741000005/AnnualEnergyStatement

12:35 The Secretary of State for Energy and Climate Change (Chris Huhne)

We face short-term challenges as a result of the legacy inherited from the previous Government. We have the third lowest share of renewable energy of all 27 states in the European Union, which is the same ranking as in 1997. In the longer term, we must meet the challenges of a volatile oil market and increased energy imports. We are taking three big steps forward: we are creating a market for energy savings through the green deal; we are ensuring a properly functioning electricity market; and we will strengthen the carbon price.

Openness is important to us, as it is to business and the public. Alongside this statement, I am also publishing analysis of the impact of energy and climate change policies on both household and business energy bills up to 2020, and I will continue to do so on an annual basis. At the moment, the UK economy is reliant on fossil fuels. As UK oil and gas production decline, this leaves us more exposed to volatile prices and increasing global competition for the resource. The challenge is to spur the capital investment required for new energy infrastructure. The volatility of fossil fuel prices and continuing uncertainty about the carbon price makes such investment high risk, pushing up costs and slowing development, so the first step is to support the carbon price.

The UK is blessed with a wealth of renewable energy resources, both onshore and offshore. We are committed to overcoming the real challenges in harnessing those resources. We will implement the connect-and-manage regime, and I am today giving the go-ahead to a transitional regime for offshore wind farms. Both those measures will help to speed up the connection of new generation to the grid. We remain committed to developing generation from marine energy, biomass and anaerobic digestion. Biomass investors that were promised help under the renewables obligation will continue to benefit.

The UK does not stand alone. The Government will work together with our international partners in efforts to promote action on climate change and energy security across the world. We are working hard to put Europe at the front of the race for low-carbon technology. This will help to refresh the appetite for action across the world after the disappointment of Copenhagen.

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12:43 Ed Miliband (Labour)

Will the Secretary of State for Energy and Climate Change explain once and for all, because it has not been explained before, why, given that it was a loan, given that the money was set aside, given that there was value for money as judged by the independent panel that looks at these issues, he cancelled that loan? Why has he taken the £1 billion away from the green investment bank? We set aside resources from the sale of High Speed 1 towards the green investment bank and he has taken that money away. So the right hon. Gentleman is going backwards, too, on the question of our industrial future.

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12:50 Chris Huhne

If one looks at wind power, for example, I cannot accept that the Government should take lectures from the Opposition on renewable energy. The reality is that we have the third worst record of all 27 European Union member states. I know that the right hon. Gentleman, in the latter years of the last Government, improved the policy settings, to which I pay tribute, but the reality is that, taken as a whole, the record of 13 years of Labour rule on this agenda is truly shocking. For us to take office after 13 years of Labour Government, when they have made no progress whatsoever in improving our rankings on renewable energy compared with all 27 members of the EU, is extraordinary.

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12:55 Dr Alan Whitehead (Southampton, Test) (Lab)

I note the right hon. Gentleman’s reference to the ambition of the green deal that he is going to bring forward shortly. However, the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker) recently ruled out the inclusion of microgeneration in green deal offers for homes. Does the right hon. Gentleman accept that, therefore, the green deal will effectively prove to be a small mouse rather than a mighty change? Does he accept also that, based on securitisation, bodies such as Eaga already use the feed-in tariff to offer home improvements, including solar photovoltaic cells, at no up-front cost? Why cannot he do that in the green deal?

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Mr Frank Doran (Aberdeen North) (Lab)

The Secretary of State commented a lot about the importance of the private sector in his policy, but he did not show a real understanding about how the private sector operates in this area. He will recall that a few weeks ago he visited the Aberdeen Renewable Energy Group stand at the All-Energy conference in Aberdeen. The point was made to him strongly that the private sector was gearing up for the renewable heat initiative, which as I understand it was intended to come about, with all-party support, in 2011. There has, however, been silence on the issue and, given his statement today, I am sure that there will be concern about more than that. There will be concern that the whole affair has been shelved until after the economic statement later in the year and that there will be chaos in the private sector. There is real concern about the Government’s failure to implement what was anticipated.

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