Action on Climate Change and Decarbonisation — House of Commons, 2022-07-05
Topic: Environment
Darren Paul Jones (Labour, Centre-left): Thank you, Mr Deputy Speaker. I intend to speak for less than 10 minutes, if that is helpful. I start by thanking the Environmental Audit Committee for securing the debate and for sharing with the Business, Energy and Industrial Strategy Committee, which I chair, the load of scrutinising net zero delivery across Government. I thank the Backbench Business Committee for granting this time on the Order Paper, and I thank the Clerks who support the work of our Select Committees day to day; without them, we would not be able to scrutinise the Government as effectively as we do. I welcome back to the shadow Front Bench my constituency neighbour, my hon. Friend the Member for Bristol East (Kerry McCarthy), in her new role as the shadow Minister for climate change. I look forward to her summing up later My focus today is primarily on delivery, because effective delivery ensures value for taxpayers’ money. The Conservative party generally believes that sending policy signals through targets or departmental strategies will be enough to ensure that the market does the heavy lifting as we transition to net zero by 2050. On this subject, it is wrong. Ministers will no doubt point to a long list of targets, strategy documents, incentives—for example, contracts for difference—and research funding allocations, all of which are admirable and welcome. But as the Climate Change Committee concluded last week in its annual report to Parliament, Ministers must think much more about the role of the state in ensuring the delivery of their net zero ambitions, be that from Whitehall or through partnerships of local authorities—and always, in my view, in partnership with the private sector and local communities Unfortunately, the Department for Business, Energy and Industrial Strategy is not very good at that. According to the National Audit Office’s review of the delivery of major projects in the Department, 11 of the 15 major projects were deemed to have significant issues that required management attention, or major risks that put the successful delivery of the project in doubt or, at worst, caused it to be deemed unachievable. They include amber warnings for the smart metering implementation programme, costing £20 billion; the social housing decarbonisation fund, costing £4.6 billion; the public sector decarbonisation scheme, costing £1.1 billion; the local authority delivery of the green homes grant, costing £500 million; the heat networks investment project, costing £376 million; and the home upgrade grant for energy efficiency and low-carbon heating work in low-income, off-gas grid homes. There were significant worries about each and every one of those major projects, and, of course, there was a big red warning against the now defunct green homes grant. In fact, the only major programme to receive a green rating from the National Audit Office was the geological disposal facility programme, costing some £12.7 billion, for the long-term management of radioactive waste. For that, I suppose we should be grateful In short, there is a delivery problem in Government at a time when the state needs to get more involved in delivery. That is why the Climate Change Committee has called for stronger coordination and delivery, not just in BEIS but through Downing Street and the Cabinet Office, and for contingency planning to be urgently put in place if the current strategies are not delivered as intended. From BEIS, we must see more detailed delivery plans and technology road maps for the delivery of net zero electricity by 2035—something my Committee has started to look at in a new major inquiry—as well for hydrogen production, carbon capture and storage, and industrial decarbonisation The No. 1 priority for the Department in relation to our net zero target requirement is, of course, the energy efficiency of our buildings. Buildings account for 20% of emissions in the UK, and the targets the Government have set themselves are very significant in terms of carbon emissions reductions by the mid-2020s. The Government will not hit their net zero target without insulating our buildings and reducing our need for energy, and they will not insulate our buildings without being more directly involved in delivery. This should be a national programme, street by street in every community, co-ordinated nationally in partnership with local councils. That will, of course, cost a lot of money, and public funds should be targeted at households that need it, whether they are on low incomes or require more expensive works to be done because of the nature of their homes The current plan from the Government is, unfortunately, to move the same amount of money around again, instead of properly funding a national insulation programme. The money allocated to the failed green homes grant was partly reallocated to the public sector decarbonisation scheme and to the gas boiler replacement voucher scheme. According to the Secretary of State’s evidence to my Committee last week, that is being re-reallocated back to a general energy efficiency programme to be announced in due course.