Key Facts

• The Committee meets at specific times from May 23 until June 29.
• Amendments must be laid by close of business on Thursday or Monday for formal consideration.
• Written evidence will be circulated via email and published online.
• Amendment 75 addresses the inclusion of CCUS in the Energy Bill.
• Amendments 76 and 81 will be decided on when relevant clauses are reached.
• The amendments aim to ensure that the process includes carbon dioxide use, transport, and sequestration.
• Carbon capture usage and storage (CCUS) allows for secondary uses of captured CO2 before it is stored.
• The Energy Bill aims to liberate private investment in clean technology and reform the energy system.
• Clause 1 defines a transport and storage network user for carbon dioxide transportation and storage.
• Clause 2 establishes licensing requirements for operating at geological CO2 storage sites or providing services by pipeline.
• Ofgem will regulate CCS transport and storage to ensure economic efficiency.
• The North Sea is identified as a key asset for carbon storage.
• There was a crisis due to the closure of one factory producing industrial-use CO2, leaving only one UK factory capable of production.
• Concerns are raised about the use of CO2 in enhanced oil recovery and its potential leakage into the atmosphere.
• New clause 33 aims to outline the principal purpose of the Energy Bill.
• The new clause states that the Act's main goal is to increase energy system resilience and support climate change commitments while reducing costs for consumers.
• Relevant persons and bodies should consider carbon targets, international obligations under the Paris Agreement, consumer cost reduction, and securing a diverse long-term energy supply.
• New clause 34 sets out the requirements for a strategy and policy statement.
• New clause 35 outlines the review process for the strategy and policy statement every five years or under certain conditions.
• The Secretary of State must consult relevant parties before amending, leaving unchanged, or withdrawing the designation of the statement.
• The Government published their consultation on a draft strategy and policy statement on May 10, 2023.
• Responses are due until August 2, 2023.
• Designation of the final strategy and policy statement is intended by the end of the year.
• New clauses will be debated at the end of the selection list.
• Changes made in the other place have been placed in a new section at the end for debate.
• The Energy Bill seeks substantial changes towards decarbonising the UK's energy sector.
• New clause 33 proposes a purpose clause that states the principal aim of increasing resilience, supporting climate change commitments, reforming the energy system while minimizing costs to consumers.
• Section (2) of new clause 33 requires consideration of duties under the Climate Change Act and international obligations like Article 2 of the Paris Agreement.
• Clause 1 stands part of the Bill.
• Clauses 3 to 6 will be discussed next.
• Clauses 2 to 6 relate to licensing activities for carbon dioxide transport and storage.
• Clause 3 requires statutory consultation for extending the economic regulation framework to other methods of transporting carbon dioxide.
• The Government does not intend to economically regulate non-pipeline transportation methods at present.
• Clause 4 sets out that the economic regulatory regime will extend to all parts of the UK, including offshore areas.
• Clause 5 of the Energy Bill allows exemptions from prohibition on unlicensed activities.
• The Secretary of State can grant exemptions either conditionally or unconditionally for indefinite periods.
• Whitehead seeks clarity on how 'other persons who may be affected by it' are determined.
• The Energy Bill is described as one of the most important pieces of legislation in the 21st century.
• The Bill aims to address climate change issues while fostering innovation and competitiveness.
• Exemptions from licensing requirements are proposed for smaller operators to avoid undue burdens.
• A formal consultation process will be conducted before laying exemptions regulations.
• Clause 7 grants Ofgem power to issue carbon dioxide transport and storage licences.
• The Secretary of State will grant the first licences due to Exchequer support.
• Ofgem assumes full regulatory oversight after a licence is granted.