Net Zero Strategy and Heat and Buildings Strategy — House of Lords, 2021-10-20
Topic: Environment
Jonathan Oates (Liberal Democrats, Centre to centre-left): My Lords, I welcome the opportunity to respond to the Statement on these important and extensive documents, and I hope that the Government will provide time at an early opportunity when the House can have a full debate on the full detail that is included in the hundreds of pages that have been published I know that in the past when I have responded to publications, the Minister has sometimes been offended that I have not been as effusive in my praise as he thought was merited. As I know him to be a sensitive soul, I will try to start off as positively as I can. There is merit in the fact that, after so long, we actually have the documents at last. There is merit in the fact that the Government remain committed to our climate change goals, and we should give thanks that climate has not become the political dividing line that it has in other countries. I also welcome the decision to introduce a zero-emissions vehicle mandate and a new target for greening all electricity generation. However, I am afraid that, after that, I am running out of things to credit the Minister and the Government with The Treasury tells us in the Net Zero Review: "The transition has implications for current and future taxpayers"— but it does not tell us what they are. It provides no indication of how the black hole arising from declining fuel duty revenues will be replaced. It says only that "the government may need to consider changes to existing taxes and new sources of revenue" Likewise, in addressing the crucial issue of carbon leakage, which is critical to the viability of our industries as we decarbonise, the Treasury blandly tells us: "Further work is required" and that "a case for conducting a formal call for evidence may emerge." There is nothing in the document about using the financial regulatory system to curb the financing of new and dangerous fossil fuel exploration and exploitation, and there is nothing about net-zero requirements on all planning decisions. The complacency is breath-taking. The Treasury clearly thinks that the climate emergency is a distant threat rather than the clear and present danger that looms before all of us The heat and buildings strategy is even more devastatingly unambitious. The Government propose a grant scheme that they estimate will deliver 90,000 heat pumps per year, and they convert what was assumed to be a mandate to end new conventional boiler installations into an aspiration. Every year, something in the order of 1.2 million new gas boilers are installed. The Government’s target for heat pumps will reduce that number to just over 1.1 million new gas boilers installed every year. Bearing in mind that they have a lifespan of about 15 to 20 years, it is immediately apparent that we will be building in a long legacy of fossil fuel heating year after year. If that was not bad enough, 90,000 units will not provide the scale to drive down costs and incentivise installers to retrain in heat pump installation, so the Government’s hopes of falling prices driving demand will remain a fantasy However, worse than all that, there is no credible plan to upgrade the energy efficiency of our existing homes, which should be the very first priority. If we are going to upgrade the millions of homes the Government say we need to, we have to rapidly scale up our capacity so that we have the skills base to deliver at least 1 million home upgrades a year. We are nowhere near that yet and there is no plan here to achieve that. Installing heat pumps in homes that are leaking energy makes no sense at all, but the Government offer no route to tackling these problems What about the money? I would ask what happened to the £9.2 billion promised for energy efficiency in the Conservative Party manifesto, had it not become abundantly clear by now that a promise in that document now seems the best indicator of what will not happen rather than what will. However, it is clear that, after the green homes grant scheme ended, we are now being given a promise of less money over a longer period of time, and it seems to achieve less than we were promised So, while I welcome the continuing ambitions of the Government, I remind the Minister that, some months back, he acknowledged in response to questions that the Government needed not only ambitious 2050 targets but a credible short-term action plan to get there. Regrettably, this is not it.