PARLIAMENTARY DEBATE
10-point Plan: Six Months On - 18 May 2021 (Commons/Commons Chamber)
Debate Detail
Six months on, I am pleased to inform the House that we are already seeing this ambition being delivered on. The 10-point plan is projected to create and support up to 250,000 jobs, and mobilise £12 billion of Government investment and up to three times as much from the private sector by 2030. We are investing in the UK’s most important asset—our workforce—to ensure that our people have the right skills to deliver the low-carbon transition and thrive in the high-value jobs this will create. This is the case for the engineers and construction workers who will build the new offshore wind farms and nuclear plants to provide clean power to our homes, to the retrofitters who will make homes more comfortable and efficient. This work of course builds on the strong progress we have already made as a country in decarbonising our economy. Last year, we hit over two months of coal- free electricity generation, which is the longest streak since the industrial revolution. Two weeks ago, we broke a new wind power record, with both onshore and offshore wind turbines generating 48.5% of the electricity in Great Britain. The plan is projected to reduce UK emissions by 180 million tonnes of carbon dioxide equivalent between 2023 and 2032. I am sure Members are aware that that is equal to taking all of today’s cars off the road for about two years.
Since the 10-point plan’s publication, we have enshrined the UK’s sixth carbon budget in law, proposing in that a target that would reduce greenhouse gas emissions by 78% by 2035 compared with 1990 levels. That is an enormous commitment, but one that we are working extremely hard—flat out, indeed—to achieve. Our Energy White Paper has set out a comprehensive, strategic vision for the transformation of the energy system consistent with delivering net zero emissions by 2050. We have also launched our new, ambitious UK emissions trading scheme, for consultation later this year.
On offshore wind, we have confirmed up to £95 million of Government investment for two new offshore wind ports: Able Marine Energy Park—AMEP—on the south bank of the River Humber, which will receive up to £75 million of government investment; and Teesworks offshore manufacturing centre, on the River Tees, which will receive up to £20 million. Those investments have already been endorsed by business. Since the launch of the 10-point plan, we have seen a 501% increase in British businesses signing up for the UN’s Race to Zero initiative. Rolls-Royce is working on the world’s largest jet engine, which will cut aviation emissions, as part of its £500 million UltraFan engine project. Jaguar Land Rover has announced plans to be all-electric from 2025, with Ford, Bentley, Volvo and Nissan stating that they will do this from 2030. Just today, GE Renewable Energy has announced that it expects to create up to 470 green jobs to support the delivery and operation of all three phases of the Dogger Bank wind farm, the world’s largest offshore wind farm, located off the north-east coast. The impressive growth of the offshore wind sector presents a great example of how delivering net zero will help us level up across the UK. It also demonstrates the confidence that international investors have in our contracts for difference approach and the immense confidence employers have in our people, particularly those in the north-east, where so much of this infrastructure is being deployed.
However, this is not just about energy; each of us has a contribution to make. We are helping businesses and people to go greener every day, by delivering on our commitment to greener business, buildings and transport. In March, we published the UK’s industrial decarbonisation strategy, the first strategy of its kind from any major economy in the world. It sets out clearly how industry can meaningfully decarbonise, remaining competitive and reducing emissions, instead of simply offshoring our industries and pushing emissions abroad.
To that end, the industrial energy transformation fund has already allocated nearly £300 million to 39 projects to help industry transition to a low-carbon future. This month we began the process for deciding the first carbon capture cluster locations in our industrial heartlands, which will be operational by the mid-2020s, with another two set to be created by 2030. All of this increased investment totals £1 billion, helping to support 50,000 jobs, potentially, in areas such as the Humber, the north-east and the north-west, and in Scotland and Wales. We are providing £1 billion of funding to phase 1 of the public sector decarbonisation scheme, which will support up to 30,000 jobs. These jobs will be in building services, engineering and design, low-carbon heating, installation of renewable energy sources and energy efficiency measures.
The 10-point plan is our commitment on meeting the fourth and fifth carbon budgets. Further strategies for sectors of the economy will be set out over the next year. This will include publication of our heat and building strategy, ahead of COP26, to set out our long-term approach to reducing emissions from all buildings in this country. It also includes our hydrogen strategy, which is backed by a £240 million net zero hydrogen fund investment, to support—I stress this point—both green hydrogen produced by electrolysers, and blue hydrogen enabled by carbon capture and storage.
We have also committed a further £20 million to increase the number of on-street charge points for electric vehicles. We will provide £50 million to help people and businesses install these charge points. We will also publish our transport decarbonisation plan as soon as possible, setting out an ambitious pathway to end UK transport’s carbon emissions by 2050 at the latest. I know that my right hon. Friend the Secretary of State for Transport is fully engaged and committed to publishing that.
The impact of those commitments can already be seen. As of March 2021, battery electric vehicle sales stand at 7.7% of the market, and plug-in hybrid electric vehicle sales are 6.1%, which is a huge increase of 88% and 152% respectively from only a year ago. Our acceleration towards low-emission vehicles will not only contribute to cutting our carbon emissions, but strengthen British industry through supporting up to 40,000 jobs by 2020.
All these policies and initiatives are coming together and will be set out in our net zero strategy in the autumn. The strategy will build on the 10-point plan, and it will make the most of new growth and employment opportunities across the UK as we build back better and greener from covid-19.
It will not have escaped hon. Members’ notice that we will be hosting COP26 towards the end of the year, and what we are doing now is setting the scene for that historic event. In that context, our ambition and our leadership are absolutely crucial. The 10-point plan demonstrates our commitment not only to the green recovery, but to the kind of leadership that we want to show in this vitally important year. All these actions bring us a step closer to net zero by 2050, meeting this planet’s greatest threat with ambition and innovation, which is absolutely necessary if we are to hit our goals. I believe passionately and sincerely that a new era of green jobs through Britain’s green industrial revolution has been inaugurated. I commend this statement to the House.
Let us take a few key issues. The first is buildings, a crucial part of decarbonisation. Last year, the green homes grant—remember that?—was the flagship measure, which the Secretary of State said would
“pave the way for the UK’s green homes revolution.”
Now it is the policy that dared not speak its name in the Business Secretary’s statement, and no wonder—it has been a complete fiasco, with contractors not paid, installers forced to make lay-offs and homeowners unable to get grants. As importantly, when the scheme failed, more than £1 billion was not reallocated but simply cut from the budget. We desperately need a comprehensive plan for the massive task of retrofitting and changing the way we heat millions of homes, with the finance to back it up. It is a big task. The heat and building strategy was supposed to be published last year but has been delayed and delayed. Can the Secretary of State promise that when it is published, it will finally contain the plan and the finance we need?
Next, let us turn to electric vehicles. Again, we were supposed to see the transport decarbonisation strategy last year. Today, the Secretary of State did not even give a date for publication, so perhaps he can tell us in his reply when we will see it. We support the 2030 phase-out date, but the Climate Change Committee says—this is really important—that we will need 48% of the cars sold in the UK to be EVs by 2025, in just four years’ time. Despite the recent progress that he talked about, we are way off that, at less than 15%. We are not financing gigafactories, on which there is a global race. Our charging infrastructure remains inadequate, and the Government have actually cut the plug-in grant. Does the Secretary of State acknowledge that the Government are not investing enough to make the EV revolution happen in the way that is necessary for our car industry’s future and consumers?
On offshore wind, we should be proud of our world leadership on generation, and I welcome today’s jobs announcement, but according to RenewableUK, only 29% of capital investment in recent projects has been in the UK. Can the Secretary of State tell us when the Government will finally deliver on their pledge for 60% of the content of our offshore wind to be domestic?
On manufacturing, there was no mention of steel in the statement, which seems a surprising omission, given how crucial it is to our country, our steel communities and the green transition. A clean steel fund of £250 million announced two years ago and only to be delivered in two years’ time is, I am afraid, wholly inadequate. The Secretary of State knows it, his Back Benchers know it and our steel industry knows it. Will he acknowledge that, and what is he going to do about it?
On hydrogen, we are investing hundreds of millions, which is welcome, but it is against billions being invested by others. On aerospace, the Jet Zero Council is all very well, but jobs have been lost in aerospace during this crisis, as the Secretary of State knows, and our investment again fails to measure up internationally.
Here is the worry I have about the scale of investment. The Secretary of State talks about investment over the decade of tens of billions, public and private, but everyone from PwC to the CCC says that we need that investment not over a decade but each and every year to get on track for our targets. In that context, the Treasury’s crucial net zero review was due in autumn 2020, and now it has been promised for spring 2021. Well, we are in spring 2021. Can he tell us when it will finally see the light of day? It is a crucial piece of work.
All this means that we are way off meeting our fifth and sixth carbon budgets. Green Alliance estimates that policies announced will only lead to 26% of the reductions necessary to get the UK on track for 2030. Can the Secretary of State tell us how far off track he thinks we are for our fifth and sixth carbon budgets?
The climate emergency is a massive challenge for our country—the biggest long-term challenge we face. There is also a massive opportunity for our country, with our amazing scientists, our brilliant workforce and our world-leading businesses. But to make that future happen, we need a Government with the aspiration and commitment that matches the ingenuity and aspiration of the British people. Instead of a piecemeal 10-point plan, we need a comprehensive green new deal with the scale of investment and commitment that meets the moment and the emergency. I am afraid that I do not believe the Government’s record measures up to the scale of the challenge we face. We will hold them to account on behalf of the country.
The right hon. Gentleman mentioned offshore wind and the UK content of the supply chain. We are absolutely focused on that; we potentially have an auction round 4 at the end of this year, and I am committed to increasing—in fact, we have policies to increase—the level of UK content in offshore wind. The GE Renewable Energy announcement in Teesside only a couple of months ago, in which it committed £142 million, is exactly the kind of investment and commitment to the UK supply chain that we want to see.
We have concerns not just about hydrogen and the delays in that regard, but in relation to carbon capture and underground storage. The House will be cognisant of the fact that in 2017 the Government pulled the plug on £1 billion-worth of investment in Peterhead. We know that there are plans to have two clusters in place by the mid-2020s. One of those clusters has to be in the north-east of Scotland, linking the north-east of Scotland with Grangemouth, because of course Scotland has contributed more than £350 billion in oil and gas revenues to the UK Treasury. There can be no just or fair transition if the communities that I represent and others in Grangemouth are left behind.
My final point is in relation to an issue that appears to have escaped the notice of the Secretary of State in his statement, and that is transmission charges. He will be aware that our renewables project in Scotland must pay to access the grid, whereas the renewables project in the south-east of England gets paid to access the very same grid. I see that the Energy Minister is in her place. That is important because she wrote to me on 12 April and said:
“On the specific question of grid charging arrangements, it is important to note that this is a matter for Ofgem as the independent regulator.”
However, as the Minister knows only too well, Ofgem’s strategy and policy is determined by the UK Government. Indeed, the Government’s own energy White Paper states, on page 86:
“We will set out our vision for energy as a guide to Ofgem, by consulting in 2021 on a Strategy and Policy Statement for the regulator.”
When will that consultation begin and when will this Government stop holding back Scotland’s renewables potential?
That leads me to the hon. Gentleman’s second point. He will know that there are a number of attractive sites for carbon capture here in the UK. We have set out our road map for two clusters by 2025 and two more by 2030, and we are in the process of deciding how to proceed on that. He can rest assured that Acorn is a very attractive project; it is something that I have looked at, and I am sure we will have some more information on that.
On offshore transmission charges, the hon. Gentleman knows that this has been an issue for a long time. I committed to looking at it as Energy Minister, and we will have a consultation on that. He must also appreciate that the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), is absolutely right: this is ultimately a matter for Ofgem, which, as he knows, is an independent regulator.
As I have mentioned, the green homes grant was composed of three elements. One was the decarbonisation of public sector buildings through Salix, the public finance body, and another relied on local authorities to distribute funds to enhance social housing and decarbonise those buildings. Both those elements were successful. The other element related to owner-occupiers. It was a short-term scheme that was always designed to end at the end of March, which it did, and we are looking to develop a replacement.
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