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Net Zero Strategy and Heat and Buildings Strategy
19 October 2021
Lead MP
Greg Hands
Debate Type
Ministerial Statement
Tags
TaxationHousingEmploymentClimateForeign AffairsEnergy
Other Contributors: 44
At a Glance
Greg Hands raised concerns about net zero strategy and heat and buildings strategy in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Mr Speaker, I announce two major Government initiatives: the net zero strategy and the heat and buildings strategy. Since 1990, the UK has grown its economy by 78% while reducing emissions by 44%, decarbonising faster than any other G7 country. This year alone, we have published several strategies including the Prime Minister’s 10-point plan for a green industrial revolution, energy White Paper, and hydrogen strategy. The net zero strategy supports up to 440,000 jobs across sectors by 2030, leverages £90 billion of private investment, and reduces reliance on fossil fuels. The heat and buildings strategy aims to cut carbon emissions from the UK’s homes and workplaces through measures such as grants for heat pumps, a social housing decarbonisation fund, and home upgrade grants for low-income households. Additionally, we will triple tree planting rates by 2030, establish hydrogen revenue support schemes, and introduce a zero emission vehicle mandate.
Ed Miliband
Lab
Doncaster North
Question
Can the Minister explain where the long-term retrofit plan for homes below EPC band C is? Why does his plan on heat pumps fall so far short of what's required?
Grahame Morris
Lab
Easington
Question
What is the Minister's view regarding the need for a 10-year, house-by-house retrofit programme to reduce emissions and cut bills? Will his Department press the Treasury for funding?
Neil Parish
Con
Tiverton and Honiton
Question
Is there any prospect of a grant scheme for farmers so that they can invest in renewable energy, such as solar or wind power, to improve their profitability?
Duncan Baker
Con
North East Bedfordshire
Question
How will the Government ensure there is a sustainable supply of electric vehicle charging infrastructure and that it provides an incentive for people who are currently in diesel vehicles to switch?
Barry Gardiner
Lab
Brent North
Question
What steps will the Government take to prevent excessive carbon leakage if we have a net zero transition that is faster than our European neighbours?
Ed Miliband
Lab
Doncaster North
Question
The shadow spokesperson thanked the Minister for his statement but expressed deep concern about the strategy. He highlighted that emissions from buildings are higher than they were in 2015 and criticised the lack of a long-term retrofit plan, questioning whether BEIS argued with the Treasury for such a programme and got turned down. Miliband also queried the low number of heat pumps funded by the Government compared to what is needed to meet targets and raised concerns about the accessibility of electric cars due to high costs.
Minister reply
Greg Hands responded that despite criticisms, he agreed tackling climate change should not be a partisan issue and highlighted the substantial progress made in renewable energy since 2010. He defended the £4 billion investment into heat and buildings by mentioning it incentivises homeowners to opt for greener choices when replacing boilers. On nuclear power, Hands pointed out Labour's previous stance against new projects and reaffirmed commitments such as the future nuclear enabling fund.
John Redwood
Con
Wokingham
Question
Asked about the need to generate sufficient electricity from green sources for electric cars and heat pumps to function effectively, particularly during periods without wind or sun.
Minister reply
Greg Hands acknowledged the necessity of transitioning towards low and zero carbon fuels while highlighting current domestic gas production. He mentioned commitments to nuclear power and natural gas as transitional fuel.
Alan Brown
SNP
Central Ayrshire
Question
The key point in the announcement today is that Peterhead has been betrayed, classing the Scottish cluster as a reserve. Can the Minister confirm this is a political decision rather than technical? What representations has he had from the Scottish Secretary of State about what is happening to Peterhead?
Minister reply
I spent significant time in Aberdeen last week and found enthusiasm for energy transition and our North sea deal. The Acorn cluster met criteria but was placed as a reserve due to further development possibilities. We remain committed to track 2 and will continue engaging with it.
Mark Harper
Con
Folkstone and Hythe
Question
Levelling up means ensuring all parts of the country, including rural areas, can decarbonise their heat at an affordable price. What is the solution for off-grid properties?
Minister reply
We have committed £2.5 billion to off-grid properties through home upgrade grants and will explore extending it to 2030.
Darren Jones
Lab
Bristol North West
Question
Will the promises made today be delivered differently from failed schemes of the past, such as the green homes grant?
Minister reply
The hon. Gentleman's question is reasonable but his preamble is not. We are learning from previous schemes and ensuring this new scheme is simpler to administer with clear parameters.
Andy Carter
Con
Warrington South
Question
Does the Minister agree that the Government’s support for the HyNet cluster will put north-west England at the cutting edge of hydrogen technology and secure thousands of jobs?
Minister reply
The hon. Friend is a tireless champion for his constituents, and we are delighted with today's announcement which supports carbon capture, utilisation and storage in the UK.
Clive Lewis
Lab
Norwich South
Question
There are two problems with the Government’s net zero strategy: it is not truly 'zero' as some sectors will still emit; and it relies on science fiction negative emissions technologies.
Minister reply
The hon. Gentleman might support Labour's 2030 policy, but we have a commitment to go to net zero by 2050 with carbon capture, utilisation and storage being a sound technology.
Graham Stuart
Con
Beverley and Holderness
Question
Following the success of offshore wind deployment, must we ensure industrial capability in carbon capture and hydrogen so that we can be an export superpower?
Minister reply
My hon. Friend is correct; early mover advantage in CCUS will enable us to take advantage of export capabilities.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
The steel industry's transition requires £6 billion investment, yet the clean steel fund provides only 4%. Is that enough?
Minister reply
We are supportive of the UK steel sector with the industrial energy transformation fund providing considerable commitment.
Virginia Crosbie
Con
Ynys Môn
Question
Will my right hon. Friend reassure constituents that they will benefit from 440,000 net zero jobs being created by 2030 and £90 billion of private investment? Will he accept an invitation to visit Wylfa Newydd?
Minister reply
Ynys Môn, Wales, and north Wales will benefit from new green jobs; the future nuclear enabling fund is for optionality so that we can make decisions on sites such as Wylfa.
Question
The Minister talks of crumbs for Scotland, the renewable energy capital of Europe, and questions why UK Government levies connection charges uniquely to Scotland.
Minister reply
Scotland is vital for UK’s energy needs in oil, gas, and future offshore wind capabilities. The minister encourages optimism about Scotland's role in the UK's energy sector.
Question
Welcomes Government commitment to decarbonise industrial clusters by 2050 and asks if Government support is vital for ceramics industry.
Minister reply
Offers to meet Stoke colleagues and discusses the £350 million industry energy transformation fund.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Question
Asks for repeated reports on figures and questions about people’s behaviour in greening homes.
Minister reply
Commits to making financial incentives straightforward, simple, and transparent. Will discuss replacement boiler programme.
Question
Questions the cost-effectiveness of heat pumps dependent on electricity costs and suggests a comprehensive audit.
Minister reply
Offers to meet him to discuss concerns first before committing to an audit.
Wera Hobhouse
Lib Dem
Bath
Question
Welcomes end date for gas boilers but questions the end date for fossil fuel use in electricity production.
Minister reply
Commits to decarbonisation of electricity system by 2035 and discusses success in reducing cost of offshore wind since 2015.
Question
Questions the assessment made on regulating embodied carbon in construction.
Minister reply
Offers to meet him to discuss construction sector’s carbon footprint and acknowledges UK's progress in decarbonising.
Hilary Benn
Lab
Leeds South
Question
Questions the plan for transitioning homes with gas boilers to zero-carbon future.
Minister reply
Committed to 600,000 homes per annum having a heat pump by 2028 and discusses market kick-starting.
Question
Asks about the substantial future for gas in UK energy supply.
Minister reply
Confirms that gas has a substantial future, especially with contribution from North Sea oil and gas sector and transition to hydrogen.
Alex Cunningham
Lab
Stockton North
Question
Welcomed the Minister's announcement on Tees and Humber being chosen for CCUS and hydrogen production, but expressed concern over previous false starts in funding. Asked how the government will ensure that workers get jobs and skills needed to develop new industries.
Minister reply
Acknowledged the point about Teesside and committed to working closely with MPs and the mayor of Tees Valley to improve skills training for a low-carbon future.
Derek Thomas
Con
St Ives
Question
Welcomed the strategy but raised concerns over the upfront costs for installing heating units in fuel-poor homes, including insulation and radiator size requirements.
Minister reply
Acknowledged the need to keep the scheme simple and easy-to-understand. Agreed that home insulation is important and offered to continue discussions with Derek Thomas on this matter.
Deidre Brock
SNP
Edinburgh North and Leith
Question
Questioned the government's decision regarding CCUS, suggesting it prioritised northern England over other regions. Asked how a just transition can be claimed when pork barrel politics is involved.
Minister reply
Rejected accusations of pitting Scotland against other parts of UK and clarified that there are plans for at least two industrial clusters by mid-2020s with Acorn as a reserve.
David Duguid
Con
Banff and Buchan
Question
Welcomed the Minister's visit to Aberdeen and raised concerns over the Scottish cluster’s expenditure. Asked for further meetings to discuss the Government’s plans to help the Scottish cluster.
Minister reply
Committed to meet with David Duguid to discuss future plans for the Scottish cluster as part of ongoing support for Scotland.
Ruth Cadbury
Lab
Brentford and Isleworth
Question
Asked if the government would extend ambition by linking adequate insulation funding with heat pump funding, ensuring that more people than just the well-off can afford changes.
Minister reply
Clarified that the commitment is for 600,000 new heat pumps annually and highlighted grants of up to £5,000 as a way to kickstart private sector involvement.
James Wild
Con
North West Norfolk
Question
Asked if the home upgrade scheme would help his rural constituents with poorly insulated homes.
Minister reply
Committed to ensuring that households in fuel poverty, including those in remote areas like north Norfolk, will receive necessary support.
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
Welcomed the announcement on east coast cluster despite shortcomings. Asked if trade unions would be heard to ensure economic opportunities for working people.
Minister reply
Agreed with the importance of working with workforces but suggested that Labour should reconsider their 2030 net zero deadline as unrealistic.
Richard Fuller
Con
North Bedfordshire
Question
Asked about the government's approach to uncertainty and affordability in achieving net-zero targets.
Minister reply
Acknowledged ongoing discussions with Treasury on ensuring that the plan is both achievable and affordable.
Dwyfor Meirionnydd
Question
Questions the adequacy of £450 million for heat pumps, noting it only benefits 0.3% of Welsh households while decarbonising Wales's housing stock costs £14.75 billion. Asks how confident the Minister is that Treasury funding will increase.
Minister reply
Responds by stating substantial Government money has been allocated to heat and building strategy, about £4 billion. The heat pump scheme aims to kickstart market growth for private sector involvement.
Question
Inquires about ensuring Stoke-on-Trent's ceramics sector gets a fair share of the additional R&D funding committed by the Government.
Minister reply
Commits to not selling British ceramics short when it comes to R&D. Discusses trade issues and breaking down barriers for exports.
Rachael Maskell
Lab Co-op
York Central
Question
Asks about retrofit skills strategy missing from the plan, inquires how York's workforce will be trained given a backlog of more than 6,000 maintenance jobs.
Minister reply
Agrees on importance of skills but argues Government’s commitment to reskilling has been clear and evident across various sectors.
Question
Critiques the slow pace of the Government in moving forward with a zero-emission vehicle mandate, scheduled for 2024.
Minister reply
Disagrees, pointing to comprehensive details in the transport section of the net zero strategy on switching to electric vehicles.
Clive Betts
Lab
Sheffield South East
Question
Questions why local government's role is not mentioned in the Minister’s announcement despite Lord Deben's indication of its importance.
Minister reply
References the annex of the net zero strategy where detailed responses to Lord Deben’s annual report are provided.
Kerry McCarthy
Lab
Bristol East
Question
Asks about measures in the strategy to make electric vehicle purchases more affordable for average consumers.
Minister reply
Affirms the Government's commitment but invites questions on this at future Transport Questions.
Anna McMorrin
Lab
Cardiff North
Question
Challenges the Minister’s claim of working collaboratively and questions whether only well-off will benefit from heat pumps.
Minister reply
States plans were shared with Welsh Government, targets reach down into homes across the UK. Emphasises affordability through company commitments.
Question
Asks for a guarantee that taxpayer money will be used to invest in heat pumps made in Britain.
Minister reply
Confirms part of the announcement is taxpayers’ money but states UK should ensure an open market rather than protectionism.
Clive Efford
Lab
Eltham and Chislehurst
Question
Asks about partnership with local government for decarbonisation efforts.
Minister reply
Welcomes local government's role, committing to work together towards net zero by 2050.
Question
Proposes a carbon border tax to support UK manufacturing and steel jobs on an even playing field.
Minister reply
States the chair designate of COP26 says CBAMs will not be discussed but the UK is closely watching EU proposals ensuring WTO compatibility.
Jim Shannon
DUP
Strangford
Question
I thank the Minister for his announcement and his clear commitment to all regions of the United Kingdom, particularly to Northern Ireland. I welcome the strategy and the decision to end the sale of gas boilers by 2035. What incentives can the Minister offer to builders currently developing to make those changes to new builds now, not to wait until 2034 to change that skills base and ability? Is upskilling part of the Government’s agenda?
Minister reply
Upskilling is very much part of the Government’s agenda. On how the heat pump ready programme will be operating, if I understand it correctly, that is a Northern Ireland-only scheme, but we have seen that scheme in operation and it will help to inform the England and Wales scheme. The scheme will also support the Government’s target of 600,000 installations a year by 2028, which also covers Northern Ireland.
Stephen Flynn
SNP
Aberdeen South
Question
In 2015, the UK Government pulled the plug on £1 billion of carbon capture and storage investment in Peterhead. Today, they have repeated that same mistake—a betrayal of the north-east of Scotland—by pulling the rug out from underneath the Acorn Project. The Minister knows that Scotland cannot meet its net zero ambitions without carbon capture and underground storage, so why is he shafting Scotland?
Minister reply
The hon. Gentleman might have been here at the beginning of the statement; if a Member wishes to participate in a statement, it is common practice to be here at the start. As he was not here at the beginning, he missed me explaining the basis behind the decision. Government policy has always been clear that there would be two industrial clusters by the mid-2020s, but four by 2030 at the latest. We have announced the Acorn cluster as a reserve. I praise the scheme for meeting the eligibility criteria. It also performed to a good standard against the evaluation criteria. We remain absolutely committed to track 2.
Shadow Comment
Ed Miliband
Shadow Comment
The plan falls short on delivery despite shared national objective for tackling the climate crisis. The heat and buildings strategy is a let-down as emissions from buildings are higher than in 2015, and there's no long-term retrofit plan to address this issue. On transport, we agree with transitioning to electric cars but need long-term zero-interest loans to make them accessible to all consumers. There’s still no decision on new nuclear despite advance publicity. The lack of investment affects existing industries like steel which will cost £6 billion for net-zero transition over 15 years and there's nothing in the document about it. The UK is falling behind globally due to failure to invest adequately.
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