UK Parliament / Open data

Energy Bill [Lords]

I thank the hon. Gentleman for his intervention and I agree with what he says, as that strategy does point to a helpful direction of travel.

As we would expect, trade unions are at the forefront of campaigning for a just transition, in the UK, the EU and globally. During the Paris climate talks, the unions made an incredibly powerful case for stronger ambition and faster action to cut emissions, and for making this transition away from fossil fuels. Central to that is the huge opportunity for job creation in new low-carbon industries. I spoke a moment ago about win-win situations, but I should have said win-win-win, as we have the jobs, the economy and the environment and energy advantages of having a clear direction of travel for this transition.

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The European Trade Union Confederation, which represents 90 trade unions from 39 countries, was very vocal on this issue. As it explained, a just transition means achieving ambitious climate action in a way that benefits the whole of society and does not simply pile the costs on the least privileged. It defines key elements of a just transition, some of which are incorporated in my amendment. For example, participation is included, as consistent and strong worker participation is essential so that change can be managed in a socially acceptable way. Secondly, on jobs, Sharan Burrow, the head of the International Trade Confederation, argues that there are no jobs on a dead planet. This is about not whether we embark on a transition, but a proactive approach to ensure that that transition happens in a way that protects, maintains and creates decent jobs and wages.

Thirdly, the ETUC looks at what this means in practice, which is essentially a Government-led active education, training and skills policy and a social safety net through active labour market policies, strong social protection and support measures. There is no lack of clarity on what a just transition might look like. At the minute, the political commitment and an inclusive plan of action are sadly lacking. During the Paris climate talks, Unison’s national officer for energy said:

“Thanks to the efforts of trade unions…the EU is committed to supporting the principle of Just Transition, but this commitment needs to be delivered in a meaningful way otherwise it is just words on paper.”

The same is urgently needed in the UK, although here we also need a first step, which is the commitment to the principle of just transition as well. I hope that, as what I have described here is fairly straightforward, the Government will at least support that part of my amendment.

New clause 12 also requires the Secretary of State to be clearer about the proportion of existing UK fossil fuel reserves that should remain unexploited. The Energy Minister answered a parliamentary question a few months ago in a very helpful way, repeating the fact that the International Energy Agency has suggested that around a third of global fossil fuel reserves are burnable under a 2° scenario. That means that two thirds are unburnable, and that is for a 2° scenario and not a 1.5° one. It is also a 2012 statistic. I would be really grateful if the Department gave us an up-to-date figure, both globally and for the UK, so that we have a bit more clarity on the matter.

Major new research from University College London found that, globally, 82% of fossil fuel reserves must be left underground. Mark Carney, the Governor of the Bank of England, warned recently that the vast majority of fossil fuels are essentially unburnable.

The Government, as we know, have signed up to the Paris agreement, which goes even further, especially with the 1.5° goal. As delegates in Paris heard, that is essentially the balance between life and death for many citizens in poorer countries that are the most vulnerable to the impacts of climate change. Therefore, on unburnable fossil fuels, we need an up-to-date, clear number to aim for and concrete policies to get us there.

New clause 12 also requires the Government to redirect fossil fuel subsidies to low carbon alternatives. Ministers rather stubbornly stick to their own special definition of what a subsidy is—it seems to have a particular meaning only in energy circles, but that meaning allows them to claim that they do not have any subsidies. By any other definition—for example, that of the World Trade Organisation or the OECD—this is clearly nonsense. A study by the Overseas Development Institute revealed that the Government give the fossil fuels industry nearly £6 billion a year in subsidies, mainly through tax breaks. That is almost twice the financial support they provide to renewable energy providers, which urgently needs to change. The barriers to 100% renewable energy are not about technology or even about money, but about political will and vested interests. Those who argue against 100% renewable energy seem to think that perhaps they are the only people who are clever enough to know that the wind does not always blow or that the sun does not always shine, but they are not, and they need to get up to speed with 21st century innovation and technology. For example, why is the UK doing so little on things such as energy storage, energy efficiency and demand-side response? Those are practical, affordable and modern ways of meeting peak demand, rather than the backward thinking that simply says build more power stations.

During the Paris climate talks, a group consisting of 43 companies committing to get all power from renewable sources issued what it called “An entrepreneurs call to climate action”. That was a joint statement from 119 chief executive officers with international operations calling for 100% renewables by 2050, keeping 1.5° in reach, and an urgent end to fossil fuel subsidies. Those are the voices to which the Government need to listen. They should also be listening to leading academics. For example, last year, Stanford University laid out a road map for 139 countries to power their economies with solar, wind and hydro energy by 2050. It said that the world can reach 80% wind, water and sunlight by 2030 and 100% by 2050, with no negative impact on economic growth.

Here in the UK, a report last September from consultancy Demand Energy Equality detailed how the UK can get 80% of energy from renewables by 2030. Even if that were not the case, the sensible course of action is not to turn our backs on a goal of 100% renewables, but to invest in the research and development to ensure that we can get there. This is about fairness and justice as well as about jobs and creating a modern, resilient and successful British economy.

During the Paris climate talks, the Climate Vulnerable Forum issued the strongest call to date for full decarbonisation of the world economy, 100% renewable energy by 2050 and zero emissions by mid-century to keep the world on track for under 1.5° of warming. That group, which represents some 200 million people and which has contributed less than 2° of global emissions would suffer around 50% of climate impacts. This Energy Bill should be heeding that call for 100% renewables and putting in place policies to lead the way in getting there.

In conclusion, those are the reasons I have tabled new clause 12 on just transition. The Government urgently need to recognise the imperative of leaving the vast majority of fossil fuel reserves in the ground and to stop squandering taxpayers’ money in a suicidal search for new sources of oil and gas that we simply cannot afford to burn. In doing so, there is a huge opportunity to embrace the employment potential of renewables and energy efficiency, and to collaborate with workers, trade unions, industry and others to build a just transition to a secure sustainable economy for workers of today and the future.

About this proceeding contribution

Reference

607 cc716-9 

Session

2015-16

Chamber / Committee

House of Commons chamber
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