My Lords, I have no financial interest to declare. I suppose my interest to declare is that I now look out on 11 different wind farms that have been erected in the past six years. I do not believe that any of your Lordships has that either dubious pleasure or distinct disenjoyment that I have.
Like the noble Lords, Lord Cameron of Dillington and Lord Whitty, I had the privilege of serving on the House of Lords sub-committee that reported on energy last year. In the report, No Country is an Energy Island, we looked at the energy market within the EU. It is not just Britain that faces a problem; it is the whole of the EU, where a vast amount of money has to be spent. We came to the conclusion that,
“a clear and credible EU energy and climate change policy … is a pre-requisite for attracting”,
the necessary investment. However, what was absolutely clear in the evidence that we took was that every prognostication about the energy market made 10 years ago or even five years ago was already totally out of date and out of the window. It seemed clear to me that the one thing that was likely to happen was that our report was also going to be out of date pretty quickly.
I take the example of shale gas. So much more information about shale gas has come into the public domain than we had when we produced our report. As the noble Viscount, Lord Ridley, said, the potential supply is wildly in excess of any of the figures that we were given. It seemed to me at the time, and it is reinforced now, that our Government need to have the flexibility but also the drive to take action quickly when the opportunities come.
The evidence that we got on renewables and on targets for renewables was very mixed. Mr Atherton told us that setting the target in 2006—the UK signed up to it—locked us into immature, technically uncertain
and expensive technologies. That is a concern that we ought to bear in mind. If there are new technologies that are going to produce decarbonisation, perhaps at a slower rate than some of the purists would like, that is something we should not ignore. It is something that this country stands to benefit from. If we have the unique geological structures under our ground that are perhaps more exploitable than we thought at the time we wrote our report—and I guess that our report would be very different now; I wonder whether the noble Lords, Lord Whitty and Lord Cameron, agree with me on that—I do not think that we ought to obstruct our Government from taking those opportunities.
I turn to what the noble Lord, Lord Stephen, said about investment and jobs. There has been a huge investment, but I have not seen any of the jobs come to Caithness for all those wind farms that I look out on. Some £10.7 billion has been spent in this country on wind farms, but as little as £2.1 billion actually came to the benefit of the UK. What I do not understand is why agreeing a target now rather than in two years’ time is going to change that situation. I do not have any evidence that firms are going to come to the UK specifically because we have a decarbonisation date fixed in 2014 rather than in 2016. Indeed, it was on that point that the noble Lord, Lord Cameron of Dillington, was absolutely right. It is a question of two years. If in that time we are hopefully going to agree the fifth climate change package in the EU, is it worth pre-empting that—at potentially a huge cost—or is it worth waiting for that to be agreed and then setting a figure after that, which the Bill provides for?
My firm belief is that we should wait and we should use the potential that has been given to us by geology to explore whether shale gas can come to our aid. If we can produce cheaper energy, it is going to lead to one of the greatest revolutions of growth in this country, which will be of huge benefit not just to us but to the whole of Europe. For those reasons, tempting as it is to tick my green credentials and support the noble Lord, Lord Oxburgh, I think that we would be heading down the wrong track.