PARLIAMENTARY DEBATE
Net Zero Targets: Businesses - 16 January 2024 (Commons/Commons Chamber)

I meet regularly with business leaders and chair several groups bringing together Government and industry so that we can drive progress towards net zero. That includes the Net Zero Council, which is meeting next week and includes members from right across the economy. Like me, they are delighted that the UK is leading the world in tackling climate change. We are the first major economy to halve its emissions, ahead of every other major economy, and we have one of the most ambitious decarbonisation targets in the world.

Contrary to what the Minister has just said, and to what he said about onshore wind, this country has fallen on his party’s watch to seventh in the world for attracting investment in renewables. Well-paid jobs, lower bills and economic growth will all follow, but only if we attract investment, so why are the Government enabling what EY has described as the “diminishing of green policies” and undermining the economic benefits of net zero?

I thank the hon. Gentleman for his question, which has a sort of comic element given Labour’s monumental failure to deliver renewables when it was in power, coupled with the fact that it wants to bring forward GB Energy. That, as his left-wing colleague, the hon. Member for Cynon Valley (Beth Winter) just said, would be public investment. It would drive out private investment and destroy the transformation of the UK energy system that has happened under the Conservatives—it had flatlined under Labour. We have led the world and have now decarbonised more than any other major economy on the planet. Under the policies of this Conservative Government, which major world economy is predicted to decarbonise fastest by 2030? This one.

If I may puncture the Minister’s rant, I would like to ask him what certainty his Government will give businesses. We need a £23 billion combined investment from the public and private sectors, but because targets have been missed, that figure will need to double or treble every year between now and 2050, according to a Public Accounts Committee report. The Government’s chopping and changing in delivering what they need to do is a big problem in businesses having the confidence to invest. That has happened on his watch, so what is he doing to improve the situation?

I thank the hon. Lady for her question and for her work on the Committee in holding the Government to account. Of course, we have realised £198 billion of investment into clean energy since 2010, and we have a plan, which we set out in “Powering Up Britain”. The Labour party has only an intention to borrow £28 billion a year, putting up families’ taxes, putting up bills and destroying the most investable market in Europe that we have had to date. We will have another £100 billion of private investment by 2030, and the Conservatives will carry on our work leading the world in transforming our energy system so that we have lower-cost, home-produced energy while also delivering on net zero—things that signally did not happen under Labour.

UK start-up Newcleo and French start-up NAAREA—Nuclear Abundant Affordable Resourceful Energy for All—have just announced a partnership to promote small modular nuclear reactors. What support are the UK Government providing, and what proportion of our energy mix does the Minister think this kind of initiative can support?

My right hon. Friend is right, and it is great to see excitement across the Chamber about developing nuclear. It is just a shame that, when it came to the secondary legislation to enable the business models, Labour Members did not support it—they say one thing in one place and a different thing when it comes to making the laws of the land. I am pleased to say to him that, under the Conservatives, the plan is to bring the jobs, technology and opportunity of small modular reactors to this country, as part the ambition for up to 25% of our electricity to come from nuclear by 2050.

I have been talking with businesses in South Ribble about achieving net zero. Businesses on Leyland business park are exploring geothermal, and we also have the huge advantage of the Howick Cross substation bringing in energy from offshore wind, onshore wind in Scotland, and the north-west and Welsh nuclear fleet. Does my right hon. Friend agree that, in future, businesses will look to site themselves where there is reliable and accessible cheap energy, and that South Ribble is well placed to take advantage of that?

My hon. Friend is quite right to highlight the benefits and attractions of South Ribble, and indeed the wider UK economy. It is not just that the areas that have those services will attract business within the United Kingdom: by rewiring and leading the world in delivering a low-cost, low-carbon energy system, we can attract more investment from abroad and have a renaissance, not least in the north of England but also in Wales and Scotland—all around the country. That is a result of the net zero policies that, uniquely, this country is managing to lead the world on following so many years of Labour failure.

The Minister will know that the Climate Change Committee has a key role in advising the Government on their path to net zero, but he will also know that 18 months on from the resignation of Lord Deben as chair of that committee, the Government still have not announced a replacement, despite 60 applications for the role having been submitted and several people already having been interviewed. Are the Government scared of having their record scrutinised, or are they simply determined to destroy any last shred of the UK’s climate leadership? Will the Minister tell us now when the selection will be announced?

Given the hon. Lady’s lifelong passion for this subject, I find it extraordinary that she never, ever recognises the unique achievement of this country in halving emissions. I would have thought she would celebrate that. As the hon. Lady will know, the Climate Change Committee’s chair is not just a matter for the UK Government. The appointment of the chair of that committee has to be agreed by the devolved Administrations as well, and we are moving as quickly as we can.

Who is holding it up?

The best thing, as barristers know, is to not ask a question unless you already know the answer, because it might not suit you. We are moving as quickly as we can to make sure that we have a chairman in place. I share the hon. Lady’s belief that it is an important role, and we want to have it filled as quickly as possible.

One of the most effective ways in which we can hit our net zero targets is by delivering an effective carbon capture and storage industry, and I was delighted to see the Government make an announcement just before Christmas about the next round of that. The Morecambe bay net zero project based in my constituency could deliver a gigaton of carbon storage, helping some of our most energy-intensive industries through this transition period. I invite my right hon. Friend to come and visit.

I am not the Minister who leads on carbon capture, usage and storage, so I may have just swerved a visit, but of course I am always delighted to talk to my hon. Friend. If I can lean on my colleague in the House of Lords who is responsible for that policy area, I will let him know of my hon. Friend’s kind offer. I share his enthusiasm: by capturing the renewables around the UK and converting them into low-cost electricity, as we are also taking forward hydrogen and using the natural blessing of having so much carbon capture capability, we can deliver this country the jobs, the opportunity and the low-cost energy system for the future. I look forward to my hon. Friend’s continuing support.

I call the shadow Minister.

Just to spell it out—because we do have to speak very slowly for the Opposition Front-Bench team—we have cut our emissions more than any other major economy, and our plans and the expectation of the UN are that we will continue to lead the world. That is leading the world: not talking about it, not promising to borrow £28 billion and put everyone’s taxes up, and then fluctuating on a daily basis. It is about delivery. We have delivered and will continue to do so.

If we want to see the reality of Labour on energy, we only need to go to Nottingham. There, Labour invested in Robin Hood Energy, which went spectacularly bust—a forerunner of a Labour Government, perhaps, if there ever were to be one. It is typical of Labour to reverse all the principles of Robin Hood: all Labour does is steal from the poor in order to pay for the bailiff.