Kerry McCarthy
MP for Bristol East · Labour · United Kingdom
“We see that in four main ways: physical risks, including floods, wildfires, droughts and storms; transition risks as economies move away from high-carbon industries; nature-related risks affecting food production and natural resources; and systemic risks, where shocks spread rapidly across sectors and markets.”
“The glaciers of the third pole function as Asia’s water tower, feeding major river systems that support nearly 2 billion people. When rising temperatures accelerate glacial melt, the consequences extend far beyond the mountains.”
“Following the heatwaves and wildfires across Europe this summer and the destruction caused by the glacier collapse and catastrophic flooding in Nepal and Tibet, the message is becoming impossible to ignore: the consequences of climate change and environmental degradation are real, not some distant future threat.”
“Personally, I cannot see that Rosebank is compatible with meeting our climate objectives, but I recognise that the process should be followed. Green Alliance has reported that the gas being wasted in the North sea would be enough to heat 570,000 homes.”
“I too worked in the financial markets, although I think I have done a better job of hiding it in my 21 years in Parliament. I was more on the debt market side. In fact, I am so old that I was part of the salvage operation for Barings bank when it went under. That brings me to the right hon. Gentleman’s point about regulation.”
“My hon. Friend will not be surprised to hear that I very much agree with the point that he just made. We have some excellent, innovative businesses in Bristol that came up through the Science Creates innovation hubs and attracted private capital.”
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“Happy birthday, Mr Speaker. The Government are committed to ensuring that everyone can access the benefits of our net zero transition, including rural communities, which will play a vital role in creating jobs and hosting infrastructure. That is why we have set up the £5 million Great British Energy community fund to support clean energy project development, including in constituencies like my hon. Friend’s.”
“That sounds like a great project. We are absolutely committed to recognising the role that community energy groups, like the Chipping Community Land Trust, can play in ensuring that communities directly benefit from the energy transition. The trust was awarded £100,000 through the former rural community energy fund, and GB Energy is continuing that work through its community fund, helping to unleash the wave of community energy projects that the Secretary of State spoke about earlier. The Government and Ofgem will be working to tackle policy and regulatory barriers to these projects happening.”
“If rural communities are to benefit from the clean energy transition, it is important that they play a role in hoping to host the infrastructure. When the Great British Energy Bill went through Parliament, there was much discussion about ensuring that communities that host the new infrastructure do not lose out. I can send the hon. Gentleman details of exactly how his community can engage with that process.”
“This is the subject of ongoing discussions between our Department and, in particular, the Foreign, Commonwealth and Development Office: we want to ensure that we are not giving with one hand and taking away with the other. That is part of the remodelling that will enable us to supply international climate finance to the people who need it most.”
“The Government’s licence exemption schemes already allow small-scale suppliers, including many community energy groups, to come to market to supply local customers. The Secretary of State has also commissioned Ofgem to work with the Department to explore some of the policy and regulatory barriers to local supply.”
“We are working closely with the Brazilian presidency to support a high-ambition outcome at COP30 in Belém which reflects the scale of the challenge and our shared 1.5° goal. That includes ambitious new nationally determined contributions and the effective implementation of the global stocktake commitments, as well as action on issues such as tackling deforestation and methane emissions.”
“My hon. Friend is right. Other countries are looking to us. The conference last week was a good example of us being back in the business of global leadership. Whether it is through the Global Clean Power Alliance or our national mission to be a clean energy superpower, we are spearheading the transition because it is cheaper, cleaner and more secure. His constituents will benefit from that too.”
“I would dispute that it is threatening the environment, but we will be looking at the wider issue the right hon. Gentleman raises through the solar industry taskforce.”
“That is absolutely the case. It was heartening to see so many countries and so many representatives from business come together at the conference last week. We are showing global leadership on this issue. We know it is the way forward in terms of our energy security, and not putting us at the mercy of dictators and petrostates. I thank my hon. Friend for his support.”
“First of all, I am sure the whole House will want to send support to Spain and Portugal following the incidents yesterday. There were no effects in the UK, but we will continue to closely monitor the situation and any lessons learned from this event. I am not going to speculate as to its causes, but we do need to ensure that our own systems are as resilient as possible.”
“International leadership on climate change is critical for this Government, which is why we announced a world-leading nationally determined contribution at COP29 and were at the heart of negotiations during the summit. I have been working extensively with international counterparts to ensure maximum ambition from countries around the world at COP30, and look forward to further engagement.”
“I am glad to hear that the children at SS Peter and Paul primary school are taking such an interest in this issue. I can assure them that we are doing all we can to make Britain a clean energy superpower, such as lifting the onshore wind ban and setting up Great British Energy, and we are protecting nature too. We are also committed to engaging more with young people, and I will make sure my hon. Friend is kept informed of our plans.”
“I welcome my hon. Friend’s support for the Government’s climate leadership. We are doing all we can to mobilise climate financing in support of the new collective goal agreed at COP29. I would be more than happy to meet him and campaigners to discuss his Bill when he is ready to do so.”
“As I understand it, the solar road map has not yet been published, so watch this space. I have been having conversations in the past couple of weeks with international counterparts who are interested in floating solar, and I would be happy to get the hon. Gentleman a more detailed response on our plans on that front.”
“I cannot pre-empt what is in the report. We will wait for it to come out, and then respond in due course. On local leadership, the hon. Lady and I share a local authority, and I would be very happy to discuss with it what more we can do to set an example—as Bristol has done so many times in the past—on how things can be done at a local level.”
“My right hon. Friend, the Secretary of State, assures me that the deal was not signed. He will keep the House informed as and when it is appropriate to do so.”
“My hon. Friend is a real champion for his constituency, and for the benefits that the development of fusion will bring. We continue to invest and to have discussions with international counterparts. There is a very bright future for fusion, and for his constituents as a result.”
“I thank my hon. Friend for her continued interest in this issue. Despite significant challenges, COP29 agreed a new climate finance goal and finalised guidance on international carbon markets. We would have liked more progress in certain areas, such as on mitigation outcomes. We look forward to playing an important role in the run-up to COP30 in Belém, to ensure that more progress is made.”
“My hon. Friend is right: we earn the credibility that enables us to show international leadership by delivering at home. In due course we will publish a cross-economy plan for meeting our climate targets, which will outline the policies that are needed to meet our 2035 nationally determined contribution, and we are engaging with a range of stakeholders on delivery through, for instance, the Net Zero Council, which has a very busy work programme, and the local net zero delivery group.”
“It is always a pleasure to answer questions from the hon. Member. We remain committed to international climate finance, and to the new climate finance goal agreed at COP29. The level of the UK’s contribution will be considered in the spending review, when we will also consider how we can maximise investment from the private sector.”
“Member for Strangford, who has raised the question of the CfD regime before, the assurance that the Lords Minister from the Department for Energy Security and Net Zero met his Northern Ireland counterpart before Christmas to discuss it; I am told that that dialogue continues. The hon. Gentleman will also, I am sure, be pleased to know that the Minister for Energy will be in Belfast tomorrow—we have an inter-ministerial group from the devolved Administrations that moves around. I discussed the agenda with the Minister for Energy last week and the Department of Agriculture, Environment and Rural Affairs will be very much involved in those discussions. I can assure the hon. Gentleman that we are not ignoring Northern Ireland; it is very much on our radar.”
“When I was shadow Minister I replied to a debate—I am sure the hon. Member for Strangford (Jim Shannon) was there, because he always is—led by a Lib Dem colleague of the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald), on consumer energy prices in the highlands and islands. Point were made then about the difference in pricing and how expensive it can be to heat homes there. I am pretty sure that the Minister for Energy has replied to debates on similar subjects since we got into Government, but the hon. Member raises a valid point. I can give the hon.”
“Some of the issues raised today are the responsibility of the Department for Environment, Food and Rural Affairs, as shown by the farming Minister’s visit, but it is important to look at that circularity and my hon. Friend the Member for South West Norfolk spoke very eloquently about the co-benefits of the site: it is not just about energy production. I can tell him and my hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter) that we are acting at pace to try to deal with issues such as pollution of our waterways, and agricultural run-off, protection of our chalk streams and so on are very much part of that. While that is not a matter for me directly, when we look at energy projects we always look at the co-benefits. We have had a number of debates on this issue.”
“It is a pleasure to see you in the Chair, Dr Murrison, as always. I thank my hon. Friend the Member for South West Norfolk (Terry Jermy) for securing this important debate. I think it is a marker of an MP who is going to achieve things for their constituents that they show persistence and an imaginative approach to lobbying on issues that are important to their constituents. The fact that he has already had the farming Minister down to visit the site and that, having dealt with one Government Department, he has now also secured this 90-minute debate in Parliament, his first Westminster Hall debate, is a sign of somebody who I know will be persistent in all the right ways. I pay tribute to him for that. I will deal with some of the contributions from hon. Members before I address the more general questions.”
“I understand the position they are coming from and that there has been a change from the stance that they adopted in Government, but I have not heard from him what the answer is for our future energy security. What is the answer to dealing with the global fossil fuel markets? What is the answer to tackling the climate crisis? What is the answer to bringing down bills in the long term?”
“Turning to the actual debate, the experience of recent years has reinforced what we already knew: we cannot rely on fossil fuels. We need clean power to reduce vulnerability to volatile global fossil fuel markets, to give us energy security and reduce the cost of energy, and to tackle the climate crisis. That is why one of the Prime Minister’s five missions is to make Britain a clean energy superpower by delivering clean power by 2030 and accelerating to net zero. Electricity generated by renewables and nuclear power will be the backbone of a clean electricity system by 2030. I have told the hon. Member for West Suffolk (Nick Timothy) how disappointed I am with the Opposition’s U-turn on this issue.”
“I met two of the DEFRA Ministers earlier this week—although it might have been last week; it all becomes a bit of a blur—and I am in constant conversation with them about how we can work together on that and on our local power plan, which will be part of GB Energy. Hopefully there will be pots of money available for some of those community projects in rural areas, possibly on farms that he has talked about. I understand that the company that my hon. Friend the Member for Stafford (Leigh Ingham) mentioned, GE Vernova, is doing innovative things on grid solutions. That is the sort of high-tech new approach that we need if we are to solve the problems that we have talked about, and I congratulate her on speaking up on behalf of a company in her constituency.”
“On grid capacity, we know that grid capacity is a real issue, in terms of both our ambition for clean power by 2030 and our wider industrial decarbonisation. The Secretary of State likes to talk about the “four horsemen” standing in the way of us getting there, and grid is very much one of those. We have brought in Chris Stark, the former chief executive of the Climate Change Committee, to head up mission control on that issue, and he is working daily on how we can unblock and accelerate projects within the grid. To the hon. Member’s point on farmers, I agree with giving farmers support to diversify, and energy from waste or anaerobic digestion and so on is part of that.”
“I should have known the hon. Gentleman would be on top of things and would be aware of the Minister for Energy’s visit, but it is important that we have that continual dialogue and that the hon. Gentleman comes along to these debates to ensure that the Northern Ireland voice is heard. I do not want to go too far off piste from the subject of the debate, but to respond to what the Lib Dem spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), had to say, I am an MP from Bristol, so the Severn estuary, the Severn barrage, the Severn tidal lagoons or whatever are very much on my radar. I went up to the Orkneys last summer to look at what they are doing on harnessing wave energy there, and it was very interesting.”
“First, though, we have to deal with the carbon budget delivery plan. Before looking to CB7, we must look at how we meet the obligations contained in current carbon budgets. The previous Government were taken to court because their plan was not deemed adequate. They presented another plan, and the courts again found that it was not adequate, so we now have a deadline from the courts to produce our carbon budget delivery plan this year to show that we are back on track. That is very much our first priority. I am sure that once that is published, we will debate that and then carbon budget 7 as well, but we have to show that we are back on track before we start looking into the future.”
“As I said to the hon. Member, that issue that has been debated numerous times here, and it is not really the subject of today’s debate—but nice try on getting it in there. He might want to secure his own Westminster Hall or Adjournment debate on it. As I said, it is very much on our radar to look at the fairness in the system and to make sure that energy is affordable for everybody and that there are community benefits as we roll out that clean power ambition. All those issues are talked about in the Department on a daily basis. Before I move on from the hon. Member for West Suffolk, I will say that the urgent question on carbon budget 7 was not granted because there is a process for the Government to respond to the analysis given to us from carbon budgets, and we will follow that process.”
“In places such as Grimsby, it is particularly important to have a place-based solution to the current situation, showing what the energy transition would look like in such places. I urge the hon. Member for West Suffolk to take a bit of a tour, to talk to businesses and people who are trying to get much-needed investment into places such as Grimsby, and to see—I am not quite sure what his proposals are—what he can say to them on how to get long-term investment.”
“My hon. Friend makes a valid point. I wonder whether the Opposition spokesperson has spoken to businesses on this matter because, in all my conversations with businesses, both in opposition and now in government, it is clear that they want certainty. They need a stable investment environment if they are to make long-term decisions. They cannot invest in renewable energy, in industrial decarbonisation or in the economic growth this country needs without certainty. We know that one reason why we are in the economic situation we are is the lack of stability and the economic chaos at times under the previous Administration, particularly under the predecessor of my hon. Friend the Member for South West Norfolk. Therefore, certainty is what we need to have. Business is crying out for that.”
“We are conducting further analysis and assessment to better understand the issue, including the implications for consumer bills and the clean power mission. My officials are working with DEFRA to consider whether there is a case for intervention for biomass-fuelled stations, taking into account the electricity system and the supplementary environmental benefits that some stations provide. That work is in addition to the robust value for money assessments that we undertake to ensure any possible support is in the interests of bill payers. I appreciate that Melton Renewable Energy and my hon. Friend the Member for South West Norfolk are looking for early answers, but I must stress that no decisions have yet been made and we are happy to continue the conversation with him.”
“All support will end in March 2027, when the last assets fall off the scheme and the RO finally closes, so Thetford—as I am very aware—has two years to run. The limits on the length of support were imposed to balance the need to provide investors with important long-term certainty—for 25 and then for 20 years—with the impact on consumers. Although we do not consider extending the RO to be a viable option, I assure my hon. Friends that I understand their concerns. In some cases, generating stations may be able to continue generating electricity on merchant terms once their RO support ends, and continue until the end of their operational life. However, some generators have told us that their stations will not be economically viable without Government support.”
“The RO was designed to support renewable energy-generating stations during the early stages of development and generation, and to allow the recovery of high capital costs. For that reason, RO support is often significantly higher than that provided under successor policies such as contracts for difference. We must always bear in mind that consumers pay for the scheme through their electricity bills, and delivering value for money for them is essential. For that reason, we do not plan to extend RO support. As I said, support under the RO for the early adopters, such as Thetford power station, lasts for 25 years. Stations accredited later in the RO’s life receive support for up to 20 years.”
“My officials have repeatedly engaged both with the owners of the Thetford plant, Melton Renewable Energy, and with DEFRA officials to discuss those concerns. To explain the overall context, as I have said, the RO has done sterling service in bringing forward the successful large-scale renewable energy sector that we see in the UK today. That has paved the way, as my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) said, for the cost reductions that we have seen over the last few years under the contracts for difference scheme, but its time has passed. The energy landscape has evolved since the scheme was launched in 2002 and it no longer provides the market incentives or the value for money that the transition to clean power requires.”
“Friend the Member for South West Norfolk, has been accredited since the first day of the RO, back in April 2002, so it has so far received Government support for nearly 23 years. Over that time, it has generated more than 5.8 TWh of low-carbon baseload generation. That has been a valuable contribution to our transition to net zero. It has also increased our security of supply by generating home-grown energy. As he said, the station has provided 100 jobs in his constituency and co-benefits in handling poultry litter. The station has another two years of support before its time under the RO ends, in March 2027. We are aware of the concerns about the future of the station once that support ends and my hon. Friend has done an excellent job in outlining those concerns today.”
“I understand that the hon. Member asked the Secretary of State that question at the last DESNZ orals and I think he also raised it when we were opposite each other in a statutory instrument Committee. I refer him to the answers that were given then. I think we should get on—I am going to try to talk about the renewables obligation for a while and not be distracted. The scheme played a fundamental role, as already noted, in getting the UK to where we are now on renewable energy generation. Combined, the UK-wide RO schemes support nearly 32% of the UK’s electricity supply, providing millions of UK households and businesses with a secure supply of clean energy. The scheme is now closed to new capacity, for reasons I will come on to. Thetford power station, in the constituency of my hon.”
“I am not aware of the detail of what has been discussed as an option, so I am afraid cannot comment on that. I think it would be wrong to speculate on what the solution will be, but those conversations will continue. To conclude, renewable energy is critical to our mission to make the UK a clean energy superpower. We understand the concerns of some generators coming to the end of support under the RO and we are looking at ways to maximise the output and potential of those RO sites, while also considering the impact on consumer bills. I again thank my hon. Friend the Member for South West Norfolk for securing this important debate. I am happy to continue the conversation in the weeks and months to come.”
“We are working in co-operation but also in the best interests of the British economy.”
“As part of that mission, my Department engages in discussions with a wide range of investors, including those from other countries. We are also clear that alongside that, the growth of UK supply chains is critical. That is why we have set out plans for a clean industry bonus to drive investment in manufacturing, as well as setting up Great British Energy and the national wealth fund. The Government will not hesitate to use our powers to protect national security whenever we identify concerns, and we will take a consistent, long-term and strategic approach to managing the UK’s relations with China, rooted in UK and global interests. The Government will co-operate with China where it can, compete where it needs to and challenge where it must.”
“I thank the hon. Lady for bringing the urgent question to the House. The protection and security of the energy sector is an absolute priority for this Government. We have a range of effective measures in place that give the Government powers to balance an open investment environment to facilitate growth with protecting the areas of our economy that are most sensitive to national security. The Government firmly believe that the biggest risk to our energy system and energy security is remaining dependent on international fossil fuel markets, controlled by petrostates and dictators. That is why we have a mission to make Britain a clean energy superpower to end that dependence. We have a world-leading offshore wind industry in the UK and international investment plays a crucial role in supporting jobs across the country.”
“The Government have to consider both those aspects together: the need for investment and for greater capacity in our supply chains, and the security risk. While I cannot get into the details of the individual case, given the nature of the ongoing discussions, I reassure the hon. Lady that we are taking these factors into account. We do want to make sure that the most robust processes are followed as we look at the details of this particular issue.”
“The hon. Lady raises important concerns that we are very much alive to. As I said in my first answer, energy security is critical to the Department’s work and that is why we have the clean power mission to end our dependency on fossil fuels. International investment is a crucial part of that and helps to support growth and jobs across the country. As part of that, we have discussions with a wide range of international investors, but we absolutely recognise that this needs to be balanced against national security implications. We work on that constantly across Government with input from a number of Departments, and I am pleased to see my hon. Friend the Minister for Security from the Home Office here for the urgent question.”
“My hon. Friend is absolutely right that dealing with capacity issues in our supply chain is a crucial part of getting this investment into infrastructure. It is one of the reasons why, through the national wealth fund, we invested in lithium in Cornwall last week. Through the critical minerals strategy, we want to maximise the natural resources that we have, where we can. As I have said, we want to make absolutely sure that security concerns are addressed as well when we look at which investors invest in our new economy.”
“The retreat—the “under new management” line that he was parroting earlier this week—would leave us even more exposed to those petrostates and dictators. We are getting on with our clean power mission to end our energy insecurity, and I shall take no lessons from the shadow Minister on energy security given his Government’s record.”
“When the Minister— [Interruption.] Sorry, I am the Minister now. [ Laughter. ] The shadow Minister mentioned revisiting this decision, but, as yet, no decision has been made. We are undergoing rigorous processes to consider the role of China in our supply chain and in the investment in our critical infrastructure. Having been in my position, the hon. Gentleman will know why it is so important that I do not provide a running commentary on individual cases, but I have made it clear that we are taking into account the national security considerations as well as our need for investment in the supply chain. Let me touch on the legacy that we were left by the previous Minister: he was perfectly happy to leave our energy system exposed, with the British people paying the price.”
“I thank my hon. Friend for her question. We have launched the clean industry bonus, which will be crucial in protecting our supply chain. We are investing through GB Energy and the national wealth fund—I have already mentioned lithium in Cornwall. Through the global clean power alliance, which we launched at the end of last year, we will bring together our counterparts from other countries, including at the International Energy Agency conference in April, to look at a supply chain mission to deal with these issues. These issues do not just affect us in this country. As other countries seek to decarbonise and increase the role of renewables, we will all need to co-operate and deal with the capacity issues across the supply chain.”
“As I have said, we are going through the robust processes to try to make absolutely sure that our national security is not compromised by investment from overseas, and we will continue to do that.”