EU Referendum: Energy and Environment — House of Commons, 2016-07-12
Topic: Environment
David Mowat (Conservative, Centre-right): I have a lot of sympathy for that argument, and that is why we have to cut more slack for these developing countries. I am going to come on to talk about coal, but in November the Secretary of State in this country said that we were going to phase out coal by 2025. The following week, Germany commissioned a brand new lignite-burning power station. That sort of behaviour plays to the point just made by the hon. Member from the Scottish nationalists that it is very hard to lecture the Indians and the Chinese on coal when there are countries in Europe, this year, commissioning brand new coal power stations We have talked about how important Paris is. The hon. Member for Swansea West (Geraint Davies) made the point that we may well be close to 1.5% anyway—it is a statistical model and it is quite hard to tell. However, the fact is that the INDC that the EU, including the UK, put into the Paris commitment is approximately half as onerous in terms of decarbonisation as that which the Climate Change Act 2008 requires us to do in the UK. We will reduce our emissions by the fifth carbon budget by 57% in 2030. The EU offering was a 40% reduction, which includes the UK’s 57%. We are seeing the result of this already. Last year, carbon emissions across the EU as a whole increased by 0.7%. I accept that that was only one year, and that this is not something to be looked at one year at a time, but 18 of the 28 countries in the EU either had no decrease in emissions or an increase. For completeness, in that same time the UK reduced its emissions by around 3%. Those statistics are from Eurostat I want to talk more widely about why it is that the EU has lost its way on climate policy. There is a fixation on coal in the EU. Germany is often regarded as being a leader on renewables, and it is; Germany has far more renewables than we have. However, it also has much higher carbon emissions than we do. The reason for that is the coal that it has: Germany has four times as much coal as the UK, and it is not four times more populous. There are parallels in other countries. Does it matter? Perhaps not, in one sense; someone has to lead, and it is us. However, the DECC website shows that electricity prices in the UK for domestic consumers are something like 50% above the EU mean—our gas prices are not—and our industrial prices are about 80% higher. Why does that matter? I come from a constituency in the north of England, where we still try to manufacture things. It is very hard to talk about rebalancing the economy and the northern powerhouse on the back of differentially high energy prices I do not think that the EU has taken the position that it has on purpose. So why is it that the policy objectives of reducing carbon have not been realised? The first error that was made—this is true of a lot of directives—is that there was confusion as to the target. A lot of the early EU directives were about renewables and not decarbonisation, which is a secondary target. The consequence is that CCS, which we have talked about, was not emphasised, gas as a transition fuel was not emphasised and nuclear was not emphasised—the biggest omission of all. Of all EU electricity, 30% comes from nuclear. The fact that, for many countries in the EU, that is not even regarded as part of the solution is quite bizarre Two or three hon. Members this afternoon talked about CCS, and I regret that the UK is not pushing ahead with that. However, it really beggars belief to say that that is a European issue when a number of countries in the EU, including Germany, have banned CCS. It is not a question of not developing it; they have banned it The other error that the EU has made is to create a general parity between different types of fossil fuels. Coal and gas are very different indeed in terms of their materiality on this. One reason why the UK does a lot better than the EU is the amount of gas that we use and the fact that we have displaced coal with gas. I like to quote this statistic: if the world were to replace all the coal that we currently burn with gas, that would be equivalent to five times, or a factor of 500%, more renewables. To pretend that that is not part of the solution is just plain wrong. One reason that people regard it as not being part of the solution is that the pathway has been mistaken for the objective Yes, at some point we need to get to an emissions level below that which is afforded by gas, but the truth is that emissions are cumulative. The hon. Member for Swansea West (Geraint Davies) said that we may well be close to the 1.5% in terms of particulates and all that goes with them. That is true and it is a cumulative effect. Carbon does not go out of the atmosphere for a very long time. It is not just about pathway. For that reason, gas should have been far more of a factor in this than it has been.