Economic Situation

Energy and Climate Change

House of Commons debates, 5 November 2009, 10:30 am

Photo of James McGovern

James McGovern (Dundee West, Labour)

What assessment he has made of the effect of the current economic situation on prospects for an international agreement on climate change; and if he will make a statement.

Photo of Joan Ruddock

Joan Ruddock (Minister of State, Department of Energy and Climate Change; Lewisham, Deptford, Labour)

The latest analysis indicates a short-term fall in global emissions as a result of the global economic downturn, but long-term projections show a rising trend. Securing a global agreement at Copenhagen is essential to making the transition to a low-carbon economy.

Photo of James McGovern

James McGovern (Dundee West, Labour)

I thank the Minister for that answer. Does she agree that the Government should use tackling climate change as an opportunity to develop green manufacturing jobs in the UK, which would be good for the economy, good for climate change and good for working people—our people?

Photo of Joan Ruddock

Joan Ruddock (Minister of State, Department of Energy and Climate Change; Lewisham, Deptford, Labour)

I entirely agree with my hon. Friend, and that is exactly what the Government are doing. In this year's Budget, we added an extra £1.4 billion of targeted support to help the transition to the low-carbon economy; that was building on previous commitments, so that £10.4 billion is now being enabled. The low-carbon economy currently supports about 880,000 people in work, and it is a fast-growing sector. This Government will continue to invest. We think that the 15 per cent. renewables target could create as many as 500,000 new jobs. Therefore, this Government will continue to make the investment that is necessary to create jobs, which is more than we can say of the Opposition.

Photo of Richard Ottaway

Richard Ottaway (Croydon South, Conservative)

Is the Minister aware that the Committee on Climate Change reported that the reductions in carbon emissions in the United Kingdom over the last four years amounted to a very modest 0.5 per cent. per annum? Does she agree that if she is to have credibility at any international summit on this issue, she will need a better track record than that?

Photo of Joan Ruddock

Joan Ruddock (Minister of State, Department of Energy and Climate Change; Lewisham, Deptford, Labour)

No, I do not agree at all. The fact is that we have more than doubled our Kyoto commitment in respect of the basket of greenhouse gases, which has already been reduced by 21 per cent. on 1990 levels. Therefore, we have got a track record that is recognised in the international forum. Yes, we have had small reductions, but that was during a period of 34 per cent. growth in the economy, so that is still an achievement, and a step change is under way: levels are going down faster, and we have a transition plan that will make them go down faster still.

Photo of Andy Reed

Andy Reed (Loughborough, Labour)

My hon. Friend knows that there is a double whammy for developing countries in the current economic crisis: not only are the poorest being hit by the state of the economy, but climate change affects them first. We hear that €100 billion is being made available for mitigation and working with developing countries, but can the Minister give an assurance that that sum will actually be achieved? Those of us who have worked on international debt relief for many years know that promises at conferences very rarely turn into cash on the ground, so can she give an assurance that that will happen?

Photo of Joan Ruddock

Joan Ruddock (Minister of State, Department of Energy and Climate Change; Lewisham, Deptford, Labour)

What I can tell my hon. Friend is that we have learned the lessons from the donor conferences of the past where many countries made promises but did not deliver. We believe there needs to be a new architecture and a new framework, within which the money will be collected according to a formula possibly based, we think, on greenhouse gases and emissions combined, and with every country except the least developed of them having to contribute to the pot. That is the way in which we can make a difference, and that is what we are hoping to achieve in the Copenhagen agreement.

Photo of Michael Weir

Michael Weir (Angus, Scottish National Party)

Vestas and Siemens, which manufacture wind turbines, calculate that for every gigawatt installed, 3,000 new jobs are created. Given the amount of offshore wind that is planned around our shores—and, indeed, off the coast of my constituency—what can we do to ensure that these jobs are created in this country, rather than exported?

Photo of Joan Ruddock

Joan Ruddock (Minister of State, Department of Energy and Climate Change; Lewisham, Deptford, Labour)

We are incentivising the generation of offshore wind. We have already made a commitment of £120 million, and we have seen that by increasing the renewables obligation certificates and agreeing to review them, we are encouraging that industry to come to Britain. I recently visited Aberdeen. The industry there, which has so much expertise in oil and gas, is standing ready to make that transfer into renewables, for which it is very well suited.