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Energy Bill [Lords] - Sitting 13

20 June 2023

Proposing MP
Ealing Central and Acton
Type
Public Bill Committee

At a Glance

Issue Summary

Kerry McCarthy addresses the approval of a new coalmine in Cumbria and argues against it on environmental grounds. The MP is discussing the UK's stance on coal and its impact on the steel industry and international climate efforts. The statement addresses clauses in the Energy Bill that aim to prohibit new coal mines in the UK. The MP discusses the current state of coal production and consumption in the UK. The statement discusses clauses in the Energy Bill related to net zero objectives for Ofgem and community energy production. The MP discusses the importance of local energy schemes and the challenges they face with grid capacity. The statement discusses the prohibition of new coalmines as outlined in Clause 270 of the Energy Bill, highlighting its importance for reaching net zero emissions. Rupa Huq discusses the potential removal of clauses 272 and 273 from the Energy Bill, which would affect community energy schemes. The statement addresses the issue of energy capacity and the potential impact of banning new coalmines on the UK's ability to decarbonize and maintain energy security. The MP expresses concerns about the feasibility of achieving decarbonisation objectives and local generation goals within the given timeframe due to issues such as battery storage technology challenges and potential planning law conflicts.

Action Requested

The speaker requests that the clause prohibiting new coalmines be upheld, emphasizing the need to adhere to climate commitments made at COP26 and to maintain alignment with international agreements and the UK's net zero goals.

Key Facts

  • Coal combustion is responsible for over 30% of global temperature rise.
  • More than 800,000 people die each year due to pollution from burning coal.
  • The COP26 presidency outcomes included a 76% collapse in the coal pipeline since 2015.
  • The UK is a signatory to the UN’s “No New Coal Compact”.
  • The Cumbria colliery has permission until 2049.
  • Dr Andrew Pimm estimated that transport emissions savings could be less than 2% of coal emissions.
  • Green Alliance estimates that the mine would release 17,500 tonnes of methane annually.
  • Liberty Steel's plant in Rotherham uses electric arc furnaces replacing coal-fired blast furnaces.
  • Tata Steel plans to transition to a greener steel plant with £1.5 billion investment.
  • The EU has 38 green steel plants and plans for 23 more; the UK has one.
  • 44% of EU steel is from electric furnaces, compared to 69% in the US.
  • The former COP President warned that opening new coalmines would undermine climate leadership efforts.
  • A statutory duty on the Coal Authority to promote an economically viable coal industry is at odds with climate ambitions.
  • Rupa Huq is addressing clauses 270 to 273 in the Energy Bill.
  • The clauses aim to prohibit new coalmines in the UK.
  • Germany, despite its Energiewende programme, remains a heavy user of coal for electricity generation compared to the UK.
  • Coal burning produces twice as much pollution per kilowatt-hour as gas.
  • There was a record low level of coal mining last year.
  • Virtually no deep-mine coal was extracted last year.
  • Surface mining produced about 1 million tonnes last year, half of what it was five years ago.
  • Imports of coal were 4.6 million tonnes last year, also half of what they were a few years ago.
  • The Minister acknowledged the importance of a net zero objective for Ofgem.
  • Heritage railways consumed 25,000 tonnes of coal last year, while traction engines used 4,200 tonnes.
  • Diesel reciprocating engines can be converted for local energy production but are not categorized as such in community energy schemes.
  • The MP supports changing licence arrangements to allow small-scale enterprises to sell locally without national licensing.
  • Clause 273 would tweak licence arrangements so companies can specifically sell to local customers.
  • The Labour council gave permission three times for the Cumbrian coalmine.
  • The clause would prohibit the opening of new coalmines but not mining as such.
  • The latest IPCC report states that existing fossil fuel infrastructure already exceeds the limit for global heating compared with preindustrial times.
  • At COP26, the Government announced a lead role in ending the use of coal, yet proceeded with the Cumbria coalmine in December 2022.
  • There is broad cross-party support for community energy schemes.
  • More than 60 businesses have written in support of clauses 272 and 273.
  • Huq has proposed a major investment of £400 million in community energy projects and £600 million for local authorities to build clean-power cities, towns, and villages.
  • The statement references a poll showing 65% agreement with net zero goals but rejection of other aspects due to speed.
  • Germany's decision to switch off nuclear power led to increased reliance on coal, highlighting policy impacts on energy sources.
  • Alec Shelbrooke argues that the UK needs backup plans including potential new mines for steel-making industry's electricity demands.
  • The Government's programme aims to non-replace off-grid businesses' combustion heating systems from 2024 onwards.
  • There is uncertainty about achieving decarbonisation goals by 2035 due to resource constraints and financial limitations for households and businesses.
  • Battery storage technology faces challenges related to rare earth elements supply chains, thermal runaway incidents, and the need for specific chemicals that are not regulated in residential areas.
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