PARLIAMENTARY DEBATE
Net Zero Emissions Target - 12 June 2019 (Commons/Commons Chamber)
Debate Detail
Just over a decade ago, I was the shadow Secretary of State for Energy and Climate Change when the right hon. Member for Doncaster North (Edward Miliband) secured Royal Assent for the landmark Climate Change Act 2008. I was proud, on behalf of my party, to speak in support of the first law of its kind in the world, setting a legally binding target to reduce greenhouse gas emissions by at least 80% by 2050 relative to 1990 levels. Today, I am proud to stand on the Government side of the House to propose an amendment to that Act that will enable this Parliament to make its own historic commitment to tackling climate change—a commitment that has been made possible by many years of hard work from Members across this House of Commons on both sides, and beyond. I thank in particular Lord Deben for his leadership as chair of the independent Committee on Climate Change, as well as its members and staff, and the hon. Member for Leeds West (Rachel Reeves) and my hon. Friend the Member for Cheltenham (Alex Chalk) for their recent Bills that paved the way for today’s proposed legislation. I also pay tribute to the extraordinary work of my friend and ministerial colleague, the Minister for Energy and Clean Growth.
Today, we can make the United Kingdom the first major economy in the world to commit to ending our contribution to global warming forever. The United Kingdom was the home of the first industrial revolution. Furnaces and mills nestled in English dales, coal mines in the Welsh valleys and shipyards on the Clyde and in Belfast harbour powered the world into the first industrial age. We now stand on the threshold of a new, fourth industrial revolution—one not powered by fossil fuels, but driven by green growth and clean, renewable technologies. Once again, the United Kingdom and all its parts stand ready to lead the way. It is right that economies such as ours, which made use of carbon-intensive technologies to start the first industrial revolution, now blaze a trail in the fourth industrial revolution. Whether it is through our global offshore wind industry, our leadership on green finance, or our unrivalled research base that is leading the charge on electric vehicles, we are showing the economic benefits of how cutting emissions can help to grow our economy.
Through our industrial strategy, the UK is already forging that future, leading the way in the development, manufacture and use of low-carbon technologies. By responding to the grand challenges we have set, including on the future of mobility and clean growth, we are already creating thousands of new jobs right across the country. We are showing that there is no false choice between protecting our planet and improving our prosperity: we can and must do both.
Indeed, low-carbon technology and clean energy already contribute more than £44 billion to our economy every year. In 2017, energy-related carbon dioxide emissions in the UK reached their lowest levels since 1888. Last year, we secured more than half of our electricity from low-carbon sources. Just last month, we set a new record for the number of days we have gone without burning any coal since the world’s first public coal power station opened in London in 1882.
We have said that we will completely phase out unabated coal-fired power generation by 2025, ending the harmful impacts to our health and environment for good. Together with Canada, we have launched the Powering Past Coal Alliance, which has now seen 80 national and local governments, businesses and non-governmental organisations join together in a pioneering commitment to phase out unabated coal.
However, if our actions are to be equal to the scale of the threat, nations across the world must strive to go further still, and we in the United Kingdom must continue to fulfil our responsibility to lead the way. That is why, in October, following the latest evidence from the Intergovernmental Panel on Climate Change, the Government wrote to the independent Committee on Climate Change to seek its advice on our long-term emissions targets. Just last month, it issued its response, recommending that we legislate for the UK to reach net zero greenhouse gas emissions by 2050, taking into account our emissions from international air travel and shipping. So I am today laying a statutory instrument—in fact, it is already before the House—that will amend the Climate Change Act 2008 with a new, legally binding net zero emissions target by 2050.
Ending our contribution to climate change can be the defining decision of our generation in fulfilling our responsibility to the next, but it will require the effort of a generation to deliver it. I am grateful to all those business leaders, faith leaders, scientists and climate campaigners who have written to the Prime Minister, me and many Members in this House to express support for this landmark proposal. It will require Governments and political parties of all colours to work with all sectors of business and society. We must fully engage young people, too, which is why a new youth steering group, led by the British Youth Council, will be set up to advise the Government—for the first time giving young people directly the chance to shape our future climate policy.
The assessment of the independent Committee on Climate Change is based on the latest climate science. It drives our ability to take action on the international stage, and it considers current consumer trends and developments in technology. The committee has concluded that a net zero 2050 target is feasible and deliverable, and can be met within the exact same cost envelope of 1% to 2% of GDP in 2050 as the 80% target when that was set, such has been the power of innovation in reducing costs.
It is, however, absolutely right that we should look carefully at how such costs are distributed in the longer term, as Professor Dieter Helm recommended in his report to the Government. The Government are also today accepting the recommendation of the Committee on Climate Change that the Treasury lead a review into the costs of decarbonisation. This will consider how to achieve the transition to net zero in a way that works for households, businesses and the public finances. It will also consider the implications for UK competitiveness.
In fulfilling the scale of the commitment we are making today, we will need technological and logistical changes in the way we use our land, with more emphasis, for example, on carbon sequestration. We will need to redouble our determination to seize the opportunity to support investment in a range of new technologies, including in areas such as carbon capture, usage and storage, and in hydrogen and bioenergy.
However, as the committee also found, the foundations for these step changes are already in place, including in the industrial strategy and the clean growth strategy. Indeed, there is no reason whatever to fear that fulfilling this commitment will do anything to limit our success in the years ahead—quite the reverse. In our industrial strategy, we have backed technology and innovation, including the UK’s biggest ever increase in public investment in research and development.
The International Energy Agency’s report on the UK, published last week, found:
“The United Kingdom has shown real results in terms of boosting investment in renewables, reducing emissions and maintaining energy security”.
By doubling down on innovation in this way, we can expect to reap the benefits as we move forward to meeting this target by 2050.
I believe that by leading the world and harnessing the power of innovative new technologies we can seize the full economic potential of building a competitive, climate-neutral economy, but we do not intend for a moment for this to be simply a unilateral action. If we are to meet the challenge of climate change, we need international partners across the world to step up to this level of ambition. While we retain the ability in the Act to use international carbon credits that contribute to actions in other countries, we want them to take their own actions and we do not intend to use those credits.
We will continue to drive this, including through our bid to host the COP 26 conference. As the IEA report found last week, the UK’s efforts are
“an inspiration for many countries who seek to design effective decarbonisation frameworks.”
Just as we have reviewed the 2008 Act in making this amendment today, so we will use the review mechanism contained in the Act, within five years, to confirm that other countries are taking similarly ambitious action, multiplying the effect of the UK’s lead and ensuring that our industries do not face unfair competition.
Finally, I do not believe that this commitment will negatively affect our day-to-day lives. No G20 country has decarbonised its economy as quickly as we have. Today, the UK is cleaner and greener, but no-one can credibly suggest that our lives are worse as a result—quite the reverse. We are richer, in every sense of the word, for being cleaner, for wasting less and for cherishing, not squandering, our common inheritance.
We may account for less than 1% of the world’s population and for about 1% of global carbon emissions, but by making this commitment today we can lead by example. We can be the ambitious global Britain we all want our country to be. We can seize this once-in-a-generation opportunity to tackle one of the greatest threats to humanity, and we can make this a defining, unifying commitment of this otherwise riven and often irresolute Parliament—one that is agreed by all, honoured by all and fulfilled by all.
In the first industrial revolution, we applied the powers of science and innovation to create products and services in which this country came to excel, but which came at a cost to our environment. In this new industrial revolution, we can innovate and lead all over again, creating new markets and earning our way in the world in the decades ahead, but in a way that protects our planet for every generation that follows ours. When history is written, this Parliament can be remembered not only for the times that it disagreed, but for the moment when it forged this most significant agreement of all. I commend this statement to the House.
I begin by welcoming the statement. The Chancellor of the Exchequer was just wrong, in my view, recently to exaggerate the costs of achieving net zero, and it is good to see the Government listening instead to the experts at the Committee on Climate Change. The Labour party committed to a target of net zero emissions before 2050 at its 2018 conference, and it is welcome to see the Government move in a similar direction.
Now that the Government are prepared to legislate their duty, it is now imperative that they urgently take the strategic decisions necessary. Sadly, at last week’s Prime Minister's questions, the Minister for the Cabinet Office, referring to the UK’s carbon budgets, said:
“We are not off track”—[Official Report, 5 June 2019; Vol. 661, c. 136]—
in meeting those targets at all. It is, however, a matter of fact, confirmed by the Committee on Climate Change and official BEIS statistics, that the UK is off track to meet its fourth and fifth carbon budgets. It would be helpful if the Secretary of State took this opportunity to correct the record, and to tell the House—if the Government are off track to meet their existing carbon budgets—what immediate strategic decisions he will make to ensure that the public can have confidence in the Government’s ability to meet even more stringent targets. That confidence can certainly be restored, but the Secretary of State must recognise that urgent commitments to investment and new legislation will be needed
Today’s statement is a welcome first step, but the Secretary of State has already recognised the scale of the task that lies ahead. Since 2015, when the Conservative Government secured a majority, they have systematically dismantled the policy frameworks that were designed to tackle climate change. They have effectively banned onshore wind, reduced almost all support for solar power, scrapped the zero carbon homes standard, sold off the UK Green Investment Bank, removed support for tidal power, and relentlessly pushed fracking—fracking, of all things! Moreover, there has been a 98% fall in home insulation measures since 2010.
At this point the Secretary of State will mention offshore wind, so let us be clear about that. The Government have committed themselves to bringing 30 GW of offshore wind on stream by 2030—well done!—but that is significantly less than the 50 GW that the Labour party has pledged, and dramatically less than the 75 GW that the Committee on Climate Change says we could need by 2050. Greenpeace has described the slow pace at which the Government have made contracts for difference available as “bewildering”, and analysis by Green Alliance has found that the Government are pushing the sector into a boom-and-bust cycle.
I could go on—these policy decisions have put the UK back by years—but, as climate change is still reversible, so is the Government’s track record. I am trusting the Secretary of State today to promise the House that, as one of his lasting legacies, he will turn that record around. I welcome his collegiate tone, because there are many—not least the Committee on Climate Change, the Labour party, other Members of Parliament, numerous industry groups, and energy and climate organisations—who have the ground-breaking ideas that are necessary. The Secretary of State need only reach out to those who are desperate to help him.
Achieving net zero before 2050 is necessary and affordable, and there is no need to rely on international offsets, which—let us be honest—does look like cheating. At this point, may I ask the Secretary of State whether aviation and shipping are excluded from the net zero targets, and if so, why? To achieve net zero, however, we will need huge levels of investment. We will need co-ordinated planning and new laws, and, as with any emergency, we will need significant Government intervention. I do not believe that that is ideological, or even party-political; it is just common sense, and that is why it is at the heart of Labour’s plans for ushering in a green industrial revolution.
I welcome today’s announcement, but I must ask the Secretary of State of State when he will start to act in accordance with it.
I think that the hon. Lady should take this opportunity to reinforce the joint determination—which is noted around the world—of parties in this House of Commons to commit themselves to leading the world. We have delivered on that. I do not know whether the hon. Lady has seen this week’s report from the International Energy Agency, but it is something of which she, and all of us, should be proud. The IEA—the world’s foremost body in commenting dispassionately on energy matters—says in its report:
“The United Kingdom has led the way in the transition to a low-carbon economy by taking ambitious climate action at international and national levels.”
That is its headline conclusion. As I said in my statement, it has also commented that the Government’s efforts—and I think we can include the efforts of successive Governments—are
“an inspiration for many countries who seek to design effective decarbonisation frameworks.”
This is a moment at which, for all the fractiousness of current debates, I think the House can be proud of the decisions that have been made.
The hon. Lady asked about carbon budgets, which were established by the Climate Change Act. As she will know, for the two carbon budgets that have been met—most recently in 2017—we have achieved surpluses of 1.2% in the first and 4.7% in the second, and we are on track for a surplus of 3.6% in the current one, which will end in 2022. As for the carbon budgets that follow, which run until 2032, at this stage—and we are talking about 15 years or more from now—we are already 90% of the way there.
An important feature of the report from the Committee on Climate Change is its recognition of the astonishing returns from investment in innovation. When the right hon. Member for Doncaster North (Edward Miliband) and I were debating the Climate Change Bill across the Dispatch Boxes—the right hon. Gentleman will remember this—the Opposition came close to defeating the then Government on the question of imposing an emissions performance standard on new coal-fired power stations: we were defeated by just a few votes. The need for such a performance standard is now cast into history, because we have no new coal-fired power stations and we are closing the existing ones. Such is the pace of change. So I am absolutely confident that we will meet the ambition that we have set today.
The hon. Lady mentioned solar power. The Committee on Climate Change has commended the action we have taken through the feed-in tariffs. They were always intended to kick-start the solar industry. The scheme cost £1.2 billion a year, and £30 billion has been spent on supporting the industry. It has been successful, as intended, in bringing prices down. Just as in every other advanced economy, as intended from the outset, it has now closed, but has been replaced by an export guarantee that allows those supplying surplus energy in the market to be paid for it.
Proposals of that kind have been endorsed by commentators around the world. In choosing to make this big increase in research and development, we can be confident that we can maintain and fulfil our ambition not only for the environment, but for the job creation in every part of the country that comes with a consistent and determined act of leadership. I am grateful for the support of the Opposition in that regard.
We welcome the statement. It is important that we all work together to address this challenge. We especially welcome the intention to follow the Scottish Government by including aviation and shipping in the targets, but why not have the ambition to match the Scottish Government’s emissions plan? In Scotland, the target date for zero net emissions is 2045 rather than 2050, and the carbon-neutral target date is 2040. So let us see if we can step up that ambition.
Even before the actions contained in Scotland’s climate change plan, actual emissions were down 3.3% between 2016 and 2017 and down to nearly half of the emissions levels of 1990. The Secretary of State’s Government must be more ambitious. The Committee on Climate Change said that this is “feasible and deliverable”, as was mentioned in the Secretary of State’s statement. Will he also accept the committee’s recommendation which agrees with the CBI on the National Infrastructure Commission’s call that in the 2020s we really need to push ahead with renewables to meet the 2050 target?
The Secretary of State said that he is taking these actions to
“tackle one of the greatest threats to humanity”,
yet the Committee on Climate Change, the National Infrastructure Commission and the CBI all say that investment in onshore wind and solar has stalled for political reasons. The CBI has said we should take the politics off the table for onshore wind, so will the Secretary of State drop the Tory ideological opposition to onshore wind?
Finally, there is another choice other than nuclear: carbon capture and storage utilisation. St Fergus near Aberdeen could be operational quickly, by 2023 with the right investment and commitment. At minimum it could capture 5.7 gigatons, equivalent to 150 years-worth of all of Scotland’s 2016 gas emissions, so will the Secretary of State reverse the betrayal over Peterhead and that carbon capture programme being withdrawn and commit to investing in St Fergus, to deliver these benefits, not only for Scotland but for the UK and the rest of the planet?
On the points about carbon capture and storage, part of the opportunity and requirement for net zero is that it is possible to take carbon out of the atmosphere, especially from industrial processes, and of course Scotland and its industrial clusters will have an important part to play in that.
The hon. Gentleman mentions the National Infrastructure Commission, and again I welcome his respect for its expert analysis. We support what it says about increasing renewables. I hope that in the same spirit he will support its recommendation that we should have more new nuclear power—something he opposed. I do not want to be excessively partisan on an issue that I know from my discussions with the Scottish Government is a common commitment that we make to maintain and increase our ambition and at the same time create jobs in every part of the UK including Scotland.
The right hon. Gentleman is quite right: the inclusion of the review mechanism in the Climate Change Act was a prescient one because it has allowed me to write to the committee, which has resulted in the report to which we are responding today. I think five years is a good period in which to see how we and others are doing against that target and whether the pace of implementation is what is required.
The right hon. Gentleman is absolutely right that policies to support that will be required. The essence of good policy is that it should not have unintended consequences. In terms of the automotive sector for example, I and Opposition Members know that car companies need to be able to generate the returns to make the capital investment to install the new capital equipment that is needed to make electric powertrains, for instance, so getting that pace right so that they can have the returns to be able to reinvest is crucial; otherwise, there could be unintended consequences. The right hon. Gentleman talked about homes and wind, and of course all these things make contributions to meeting that target. The action from now on, including in the energy White Paper, is to set out the policy framework that supports our ambitions.
The 1% to 2% cost estimate of the Committee on Climate Change is exactly what the House voted for in 2008. It is a gross figure, not a net figure, and does not include the benefits. My hon. Friend is absolutely right that it also does not include the consequences and costs of a failure to tackle climate change, although the committee’s report sets out in great detail some of the negative consequences were we and the rest of the world to fail to act.
It would be a misreading of economic history if the Secretary of State forgot the mission critical role of a creative, active state in making industrial revolutions happen. In our region that means we need municipal energy companies to drive forward solar in the cities, green development corporations to help us build green council houses, an office of community wealth building to target the procurement spend we put into the market each year, a national education service to make sure we have the skills, and a regional investment bank to make sure we have the capital.
Will the Secretary of State work with us to help our region be the first to become zero carbon? That is the target we would like to set because, of course, we sparked the carbon revolution in the first place.
It is open to local authorities and to companies to take decisions themselves on when they can be carbon neutral, and many have done so. I am interested to hear that the right hon. Gentleman’s council has followed suit. He knows that the west midlands industrial strategy, which was mentioned in Prime Minister’s questions, has a substantial recognition of the opportunities across the region not only for participating in solving climate change but in reaping the benefits of the technologies.
From his work on the Science and Technology Committee, my hon. Friend knows the importance of innovation in this. Innovation enjoys prominent billing in my response today, and with just cause because it will be one of the ways in which we succeed.
I congratulate the Prime Minister and the Secretary of State on their decisive and historic leadership on this issue. What is the plan to ensure that other countries face up to their responsibilities, too?
We will have an early opportunity to advance this cause with our international partners and with all countries around the world if, as I hope, we succeed in hosting the next conference of the parties, which takes place next year.
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.