Graham Stuart
MP for Beverley and Holderness · Conservative · United Kingdom
“I hope and expect that we can move forward in the right way and get the balance right between being overly prescriptive to the banking industry and setting a clear sense of direction to make sure that no one is left behind, as so many Members have set out.”
“It is a pleasure to serve under your chairmanship, Mr Wishart. I congratulate the hon. Member for South Devon (Caroline Voaden) on securing this debate.”
“Is my hon. Friend as astonished as I am that the Minister—I know she is new to her post—has come here to propose a six-month extension of the movement of costs from bills to the Exchequer and cannot tell the Committee how much money that will cost?”
“The Minister is being most generous again. I did not ask her about protecting consumers from energy price shocks; I asked about a clear, unequivocal manifesto pledge to reduce household energy bills by £300. She, like her predecessors, refuses to address it directly. It was a clear promise.”
“Banking hubs themselves came out of an industry response from the NatWest executive. Does the Minister agree that we must present the information from the Lloyd review to the banking groups, be clear about what we want, and give them the opportunity to respond and provide a solution, as they did with banking hubs, so that we can perhaps a…”
“I am pleased to say that Lloyds listened and, as of this morning, people can deposit cheques at those places. These issues being raised by Members across the House today are important. I trust that given the timing of the Richard Lloyd report, the Minister in her seat will make sure that they are be resolved to everyone’s satisfaction.”
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“As delightful and pleasant as the hon. Lady is outside the Chamber, she is always challenging within it. The Prime Minister remains committed. He has insisted on our commitment to net zero and our 2030 nationally determined contribution, while ensuring that we carry people with us. He was delighted to announce £1.6 billion of UK funding for new climate projects while at COP, including £887.8 million of new and additional financing, with other announcements focused on driving forward climate action on forests, finance and net zero transitions. This Government are walking the walk while ensuring and making no apology for the fact that we seek to maintain the national consensus and carry people up and down the country with us as we continue to lead. [Interruption.] The right hon.”
“We must have a balanced discussion to show that we are not inflexible. We are prepared to work with people and ensure we do it in the right way.”
“In maintaining the public commitment to net zero, it was important to say to people in my rural east Yorkshire constituency, for example, who are off the gas grid and fearful concerning heat pumps, that they would not see their boilers ripped out when they did not think there was an affordable and deliverable alternative. As the Prime Minister announced, we combined that with a 50% increase in the heat pump subsidy level to £7,500, and we saw a tripling of interest in the following week. Words do matter, but there are many constituencies to talk to. I look to the hon. Gentleman to help provide the proper balanced and nuanced view. This country has cut its emissions more than any other major economy on earth and we have more ambitious plans going forward. The Prime Minister is behind net zero.”
“The hon. Lady is right to highlight children, who will inherit the planet we leave behind. In the meantime, they are peculiarly vulnerable to the negative impacts we are already seeing this year, let alone those we will see if we get to 1.5°C or beyond. She is right to highlight that. I cannot comment on the specific question she raises, but I will make sure that it is heard on the Treasury Bench and let her know as and when a decision is made by the Government. She is right to say that, just as we must ensure that the voices of the small Pacific island states and others are heard, because they are so much on the frontline, the voice of youth must be heard. I was pleased to meet youth representatives at COP28. We must ensure that we look to the people who will inherit the policies that we of a slightly greater age make in this Chamber.”
“That is why we are bringing in sustainable industry rewards—non-price factors, in the jargon. We expect those to come in from allocation round 7 onwards as we work to make sure that we look after consumers first, while not missing any opportunity to utilise, maintain and grow jobs here. On offshore wind alone, our expectation—this is what the industry says—is that we will go from around 30,000 jobs in the industry today to more than 100,000 in the next six years. One of our biggest challenges is finding those people, training them and making sure we are ready to deliver them, as much as it is having more done here.”
“I am grateful to the hon. Gentleman for his question, which, as ever, is well informed and extremely reasonable. He is absolutely right. I visited the port of Nigg. I was interested to see nascent floating offshore wind work, fixed-bed offshore wind work and oil and gas work, and I wandered into a hall where they were making a large and sophisticated piece for Hinkley Point C, extraordinarily. That was all at Nigg. The hon. Gentleman gets to the point about financing and whether the auction, which has been brilliant at lowering prices, has in fact helped drive too much of the industry out of this country. Behind the day job of transforming our generation, my passion will be to see how, without following some others with WTO-breaching local clauses, we can nudge and support more industry here.”
“I thank the hon. Gentleman for his as ever gracious question. One of our disappointments—there were things we were disappointed with in the UAE consensus—was the watering down of elements we would have liked to see on human rights. He is right to highlight that. We have always wanted loss and damage to focus on the most vulnerable. The least financeable of all are people in an already parlous economic position, often at low scale, who are under threat from climate change. We hope that the funding that has been created for loss and damage can complement adaptation funding as well as mitigation work, and have climate justice at its heart. We have to look after the weakest and poorest on the planet. However unsympathetic the science, we have to ensure that policy recognises the realities for people all over the world.”
“As a Yorkshire MP, I resent that remark. [ Laughter. ] I meet regularly with business leaders and organisations. I chair or co-chair, among others: the Offshore Wind Industry Council, which I will be going straight to after questions; the solar taskforce; the green jobs delivery group, which met yesterday; the North sea transition forum, which I will attend tomorrow; and, from a strategic cross-cutting point of view, the Net Zero Council. Of course, the Secretary of State and I met global leaders yesterday.”
“The hon. Gentleman has a well-founded and highly esteemed reputation for anger. Under this Government, this country has cut its emissions more than any other major economy on the planet, and we have the most ambitious plans for 2030. When I attend COP28 next week, we will be inviting and supporting others to join the UK, which under this Conservative Government has led the way on a pathway to net zero.”
“I thank the hon. Lady for her question and for championing vital research, not least in Scotland. I am looking forward to meeting scientists when I am in Scotland over the next couple of days. We have all heard her request, and it will be noted.”
“My hon. Friend is quite right. We must never forget the parlous state of this country in 2010. Less than 7% of our electricity came from renewables—that was the legacy of the right hon. Member for Doncaster North (Edward Miliband). In the first quarter of this year, that was nearly 48%. Opposition Members raised the issue of people being cold and unable to pay their bills, but just 14% of homes were insulated properly; now, it is 50%. In last week’s autumn statement we heard announcements about the grid and—”
“My hon. Friend is a stout champion not only of the pathway to net zero but of the jobs and prosperity that come with it. It is with great alacrity that I accept on behalf of my hon. Friend the Minister.”
“This has been a record year for onshore wind, which is already the largest renewables technology. The latest contract for difference added an unprecedented 1.7 GW.”
“The hon. Lady is renowned in the House for her arithmetic skills, but in this case they seem to have failed her. The 1.7 GW is a tremendous success. I share her enthusiasm for onshore wind where communities support it. In September, the Government announced changes to planning policy for onshore wind in England to help make it easier and quicker for local planning authorities to consider and, where appropriate, approve onshore wind projects where there is local support.”
“My hon. Friend has championed, does champion and, I am sure, will continue for many years to champion the good people of Kettering, and the fact that they are providing such leadership on net zero and the delivery of renewables after our parlous inheritance from the Labour party. Let us make sure that we never go back to a system in which renewables are not brought on to our grid in the way they are today.”
“As I have said, I share the enthusiasm on both sides of the House for onshore wind. The Government have set regulations that require onshore wind developers to consult communities in advance of submitting a planning application, as well as having it consulted on post-submission. We make no apology for rolling out this transformation in renewable technologies in concert with communities, rather than seeking to ride roughshod over them.”
“This Government are proud to have made the UK a global leader in offshore wind, and the industry believes that UK jobs in the sector will rise from the current 30,000-plus to 100,000-plus by 2030—if, of course, Conservative stewardship continues.”
“I thank the hon. Gentleman for his question, and I share his enthusiasm for making sure that we continue the development of good, well-paid jobs, and the development of the skills required to help people access those jobs, and that we do not have exploitation onshore or offshore during that development. It is a huge opportunity for the United Kingdom and for Scotland. Working together, I am sure we can develop it.”
“As ever, my hon. Friend puts his finger on an important point. Existing assets such as wrecks have so many uses, all of which need to be understood. Our seas look so large, but they have multiple uses for shipping, defence and energy. We are working to ensure that we have a strategic, joined-up energy plan and a spatial strategy so that wrecks, marine protected areas and other interests can all be protected in an integrated manner.”
“I thank my hon. Friend for all his work championing both this area and the concerns of his constituents. As he rightly says, planning policy and guidance encourage large solar projects to locate on previously developed or lower value land and we will indeed undertake to be vigilant in ensuring that those principles are respected.”
“The hypocrisy and the ignorance coming from the Labour party is extraordinary. We have decarbonised more than any major economy on this earth and we will decarbonise more to 2030, and we are doing it by unlocking a level of investment into renewable energy double that we have seen in the United States. So, Labour can take its selective facts and put them where the sun don’t shine.”
“As I have said in earlier answers, we are seeking to encourage more applications. As far as I know, the hon. Member for Southampton, Test (Dr Whitehead) may be right, which is exactly why we are consulting on improving community benefits and have consulted on changing the planning system.”
“I share my hon. Friend’s enthusiasm for tidal. We have had a specific pot in previous rounds of the CfD precisely to develop that. We are the world leader in deployment and will continue to be, and I hope that her vision for her local area will be fulfilled.”
“The Government are collaborating with industry to identify solutions to unblock barriers to offshore wind deployment. I know that the UK Infrastructure Bank is providing support to the Port of Tyne. The FLOWMIS project is currently live, so I cannot comment on it, but I would be happy to meet the hon. Lady to discuss these issues.”
“The hon. Lady is right to highlight loss and damage as we approach COP28. We were pleased to play our part on the transitional committee in getting a recommendation to COP, and we look forward to its being operationalised in the near future. I agree with her that, if we are to get the scale of finance that is required, particularly for the most vulnerable countries at the front end, we need to look at innovative ways of adding to that finance.”
“I thank my hon. Friend for her question and for pursuing this matter assiduously; we have met and discussed it, among other issues. I think both industry and communities would appreciate greater clarity about community benefits, and I look forward to discussing that with her further.”
“Regrettably, the content of so many Opposition Members’ questions this morning is absolutely not in line with reality. Oil and gas production in the UK not only typically has lower emissions than the alternative of imports, but supports 200,000 jobs, all of which would be at risk if the Labour party came to power. To answer the hon. Gentleman’s specific question, it is expected to raise £50 billion of tax over the next five years, all of which—including the safety of his constituents—would be at risk if Labour ever came to power.”
“The right hon. Gentleman will be aware that the EU has already legislated for a carbon border adjustment mechanism. Following our hosting of COP26, 90% of global wealth was covered by net zero pledges. At the beginning of that conference, the figure was just 30%. The right hon. Gentleman may not see it, but this is the direction the world is going in, and if he wants to future-proof British jobs he will get with the decarbonisation programme. Opposing it is to oppose the interests of his constituents and the sustainability of their of their jobs.”
“The instrument will help Ofgem to administer the policy effectively and as intended. It will reduce administrative burdens and ultimately benefit bill payers by reducing levy administration costs. I commend the draft regulations to the Committee.”
“That is set at the total that the levy is expected to collect in its peak year. The statutory instrument will allow the maximum levy amount to be set by reference to whatever year is expected to be the peak year, members of the Committee will be thrilled to learn. The regulations introduce powers for the Secretary of State to set a de minimis amount for the green gas levy. That amount will apply to selected payment obligations and credit cover requirements. Obligations below the threshold will automatically be disapplied. The instrument makes five further minor changes. In conclusion, the changes made by this statutory instrument provide the basis for the green gas levy to be collected efficiently and at the intended rate over the lifetime of the green gas support scheme.”
“The amendments made by the regulations are technical and do not alter the aims of the GGSS or GGL; they will not add to the amount raised by the GGL or the rate at which it is charged. We have consulted the Scottish and Welsh Governments on the regulations. The Scottish Government have consented to them, as required under the Energy Act 2008, which provides the underlying primary powers for the regulations. The Welsh Government have also agreed to the changes. The amount that the green gas levy collects is set according to a formula specified in regulations, and this statutory instrument will change the formula so that it will operate as always and originally intended. Regulations require the Secretary of State to publish a maximum amount that the green gas levy can collect, which is called the maximum levy amount.”
“I beg to move, That the Committee has considered the draft Green Gas Support Scheme (Amendment) Regulations 2023. It is a pleasure to serve under your chairmanship, Mrs Murray. The draft regulations, which were laid before the House on Monday 16 October, make a set of changes to improve the administration of the green gas levy, which is charged to licensed gas suppliers in Great Britain, and ensure it works in line with policy intent. The regulations will reduce burdens arising from the levy for Ofgem, which administers it, and for gas suppliers. The green gas levy funds the green gas support scheme, which is a Great Britain-wide tariff-based scheme that facilitates ongoing investment in the biomethane industry and enables the development of new production plants for injection into the gas grid.”
“The Secretary of State can change the levy rate annually when the levy rate is set. With no further ado, and with thanks to the Committee for its support for these technical arrangements, I commend this instrument to the House. Question put and agreed to.”
“I thank the hon. Gentleman for his questions, and for his enthusiasm. He may be one of a tiny number of people who has quite that level of enthusiasm for these schemes, and I congratulate him on that, because they are important and excellent. The hon. Gentleman asked whether the money being added rather than deducted was a mistake—yes, it was—and whether that money has been taken. To date, none of it has been taken because of the structure of the system, so there is no money to talk about. If it had been, it would have stayed in the levy and been rolled over, as any spare funds are in any case. It would have just been rolled over to the following year and thus have helped to reduce the levy the following year, so there are no worries on that front. On the maximum levy amount, it now has the flexibility it requires.”
“In so doing, we will ensure that the scheme remains a cornerstone of our ambitious climate policy.”
“I beg to move, That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023. It is a great pleasure to serve under your chairmanship, Sir Gary, and to be with colleagues from across the House on this clearly brilliantly whipped Committee. The UK emissions trading scheme—the UK ETS— was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020 as a UK-wide greenhouse gas emissions trading scheme to encourage cost-effective emissions reductions, contributing to the UK’s emissions reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments—we are all in this together. Our aim is to be predictable and responsible guardians of the scheme and its markets.”
“The policy intent of aviation free allocation is to mitigate the risk of carbon leakage, and the policy did not intend for aircraft operators to receive more allowances than their verified emissions. To that end, in July the UK ETS Authority announced the decision to cap aviation free allocation at 100% of verified emissions. In the “Developing the UK ETS” consultation, we considered technical changes to free allocation rules regarding the electricity generator classification. The majority of respondents agreed with our suggested amendments, and the UK ETS Authority announced that it would proceed with changes to the electricity generator classification. A consultation was not carried out for the CCS free allocation amendment as that is a clarification of existing policy intention and not a change to the policy.”
“On free allocation rules for carbon capture, the SI will prevent industrial installations from being disqualified from receiving free allowances because they are on the same site as a carbon capture plant—a situation that would pose a risk of disincentivising the uptake of crucial carbon capture technology. These changes either follow appropriate and comprehensive consultation with stakeholders or did not require consultation. In the “Developing the UK ETS” consultation in 2022, the UK ETS Authority considered what technical improvements could be made to the current aviation free allocation methodology until aviation free allocation is phased out. The responses to the consultation called for an end to over-allocation.”
“That follows the decision announced in July that aviation free allocation will be phased out by 2026. On free allocation technical changes, the SI will ensure that installations classed as electricity generators, whose eligibility for free allocation is limited, are able to change their classification if they are no longer exporting electricity. The SI will also ensure that industrial installations with high-quality combined heat and power plants that export excess electricity to the grid are not classified as electricity generators, in order not to limit their eligibility for free allowances. On the electricity generator operational amendment, the SI will ensure that electricity generators can become eligible for free allowances during an allocation period if they meet the eligibility criteria.”
“The SI remedies an inconsistency in legislation to make it clear that carbon capture and other types of regulated activity may be carried out on the site of the same installation. It will allow provision of free allowances to industrial installations at the same site as a carbon capture plant. As the Northern Ireland Assembly is not sitting and cannot consider affirmative legislation, the SI covers only Great Britain. Officials in Northern Ireland have agreed that none of the provisions currently affects operators in Northern Ireland. These changes will deliver on commitments made by the UK ETS Authority and improve the operation of the scheme. For aviation, the SI will ensure that free allocation is distributed appropriately until full auctioning for the aviation sector begins in 2026.”
“The SI will amend the electricity generator definition to exclude installations that have produced electricity for sale if that electricity was produced by means of a high-quality combined heat and power plant operating as part of an operator’s industrial activity. That will limit reductions in free allocation entitlements and provide further encouragement for industrial operators to achieve improved efficiency for their combined heat and power plants. The SI makes an operational amendment to the electricity generator classification to allow electricity generators to be eligible for free allowances after the application date if they can demonstrate that they produced measurable heat by means of high-efficiency co-generation during the allocation period.”
“On aviation, the SI will cap the total amount of aviation free allocation that operators are eligible to receive at 100% of their verified emissions. The SI makes technical changes to free allocation rules regarding the electricity generator classification for industrial installations—a minority sport, if ever there were one. It will amend the electricity generator classification to consider only electricity exports in the baseline period, instead of all electricity exports since 2005, allowing operators to change their installation’s electricity generator classification if they have put a stop to the export of electricity. Electricity exports representing no more than 5% of the total produced will also be excluded from consideration in this classification.”
“My right hon. Friend, with his customary acuity, will have noticed that the draft order does not apply to Northern Ireland. As it happens, there are not counterparties in Northern Ireland to which these particular provisions apply, but energy in general is devolved to Northern Ireland, and it is up to Northern Ireland to take care of it. The statutory instrument will implement a number of necessary changes and improvements to the UK ETS. The changes relating to aviation free allocation rules and to the treatment of electricity generators follow the announcements made by the UK ETS Authority in July, in our response to last year’s consultation on developing the UK ETS. The final change remedies an inconsistency with free allocation and carbon capture at UK ETS installations.”
“I commend the draft order to the Committee.”
“Fundamentally, due to the way the scheme was brought in, the airlines have had more free allocations than their actual emissions. The scheme was designed to cover their emissions until we phased out those allocations, as we are now doing, but they were being over-compensated, based on historical figures that no longer apply. These provisions will ensure that the airlines are not being given free allocations with a commercial value on the market over and above that which they need in order to operate. I hope that answers my hon. Friend’s question. These alterations to the UK emissions trading scheme will support its role as a key pillar of the UK’s climate policy. They show that we will take action to improve the scheme where necessary, and they continue our record of delivering on our commitments.”
“I am nervous of opening up wider matters, although you have been generous, Sir Gary, in allowing discussion of issues that are broader than the technical amendments that the SI makes. If Members want a broad debate on the ETS and its interaction with Europe, there are many opportunities in the parliamentary calendar to do exactly that.”
“The price of carbon allowances in the UK ETS is set by the market. In line with the net zero cap we announced in July, the supply of emissions allowances entering the market will fall significantly every year from 2024. We are committed to continuing to deliver on these changes, as we have shown, by legislating to amend the supply of allowances over the coming years and publishing an auction calendar. The hon. Member for Walthamstow mentioned the CBAM. We are closely following developments on the EU CBAM and engaging with the Commission on technical considerations that are relevant to UK manufacturers. As the hon. Lady will know, EU CBAM charging does not start until 2026.”
“I thank hon. Members for their contributions to this debate on pretty technical adjustments to the ETS. By capping aviation free allocation, we are ensuring that it is distributed appropriately until full auctioning in 2026. The current situation is not deliberate; the policy did not intend for aircraft operators to receive more allowances than their verified emissions. It is noteworthy, though, that those allowances meant that operators were doubly encouraged to invest in cleaner operations, since they were incentivised not only by any savings from investment in more fuel-efficient aircraft, for instance, but by the credits that they received within the ETS. The Government have no plans to claw any of that back. On the overall position of the UK carbon market, the UK ETS is of course a market mechanism.”
“It is worth noting, to look momentarily at the bigger picture, that since 1990, the UK has cut its emissions by more than any other major economy on the planet. The Government put net zero into law for the first time, and the former Conservative leader, now the Foreign Secretary, was the first leader of a major party to call for a climate Act, which was introduced in 2008. I was proud to serve on the Joint Committee on the Draft Climate Change Bill under the excellent chairmanship of Lord Puttnam.”
“The hon. Gentleman is right about that being a substantial prompt for thought, but not on the particular order that the Committee is considering. As hon. Members will know, we ran a consultation earlier this year on domestic measures to mitigate carbon leakage, including consulting on a potential UK CBAM and mandatory product standards. In answer to the point that the hon. Member for Walthamstow made, our commitment to the UK steel sector is clear. We continue to work closely with industry, including British Steel, to secure a sustainable and competitive future for the sector and its workers. We will continue to fulfil that commitment. As I said, the UK ETS is a market mechanism, and the price of carbon allowances is set by the market. That continues to be our position. The UK ETS is a cornerstone of UK climate policy.”