My Lords, I speak to the government amendments in this group, which I hope noble Lords will welcome. The amendments extend the decarbonisation provisions in Part 1 across the UK so that they cover the Northern Ireland electricity sector. The provisions currently extend only to Great Britain.
As set out in the other place, it has always been the Government’s ambition to extend this policy to Northern Ireland. However, since energy is a transferred matter with respect to Northern Ireland, it was appropriate that we first go through the formal process of seeking agreement from the Northern Ireland Executive. I am pleased to say that we now have this agreement and that they will bring forward a legislative consent Motion in due course.
I will briefly set out the effect of these government amendments and their benefits. Their primary effect is to extend the provisions in Part 1 to the whole of the UK. If and when the power is exercised, there will be a legal requirement on the Secretary of State to ensure that the carbon intensity of electricity generation in the UK as a whole is no greater than the upper end of the decarbonisation target range. This duty is intended to be met through the existing powers of the Secretary of State or through negotiation with Northern Ireland Ministers.
The provisions in Part 1 include a number of ways to ensure that there will be proper and full consideration of the impacts of any decarbonisation target range on the single electricity market, which is the wholesale electricity market operating in Northern Ireland and the Republic of Ireland. For example, Clause 2(2)(f) and (g), with our amendments, require the Secretary of State when setting or amending a target range to consider the impact of any target range on the Northern Ireland energy market and take into account the difference in circumstances between Northern Ireland and the rest of Great Britain.
Furthermore, Clause 4, with our amendments, will require the Secretary of State to consult Northern Ireland Ministers before setting or amending any target range, and if and when making further provision about the definition of grid carbon intensity under the power in Clause 4(4).
These amendments will mean that a decarbonisation target range could be set across the whole of the UK and, as a result, could help to provide greater investor certainty on the long-term trajectory of the electricity sector across the UK as a whole. This would complement our efforts in meeting our legally binding carbon budgets, which are also set for the whole of the UK, and provide further investor certainty as part of the contracts for difference framework which will apply in Northern Ireland.
Alongside other policy measures, this UK-wide decarbonisation target range could help us to meet our existing UK targets cost-effectively, and any targets set by the devolved Administrations, including Northern Ireland’s target of 40% of electricity consumption from renewable sources by 2020.
In brief, these amendments improve the Bill by ensuring that the provisions on decarbonisation extend to the whole of the UK in a manner consistent with the approach taken in the Climate Change Act. On this basis, I beg to move.