Energy Bill — Second Reading

Part of the debate – in the House of Lords at 8:56 pm on 23 March 2010.

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Photo of Lord Hunt of Kings Heath Lord Hunt of Kings Heath Deputy Leader of the House of Lords, House of Lords, Minister of State, Department of Energy and Climate Change, Minister of State (Department of Energy and Climate Change), Deputy Leader of the House of Lords 8:56, 23 March 2010

I am not aware that it is in the competitive process, but I will check the details of that to make sure that I have not got that wrong. As I said, I think the money made available from Europe is quite considerable, though I accept that, when we are talking about the development of CSS technology, it is very expensive at the moment. I say to the noble Lord, Lord Dixon-Smith, that I take his point about the exemptions and I will certainly see that they are considered. I understand the point he is making, and, essentially, we have received a number of responses from different sectors about exemption and we will set out the detailed arrangements for the levy in regulations on which we intend to consult in the summer next year.

The noble Lord, Lord Oxburgh, is, of course, right about transportation. I agree with him that we need to think through those issues as soon as we can. On the issue of whether the technology is proven, I well understand the point he is making, which is that all the stages of CCS have been tried and tested. The question is much more scaled up: will it be technically and economically viable? That, it seems to me, is what these demonstration projects are all about. That is why we want to have a very proper and intensive approach to making those judgments. The aim is that by 2018 we will publish a report which considers the case for new regulatory and financial measures to drive the move to clean coal. In the event that CCS is not on track to become technically or economically viable, an appropriate regulatory approach to manning emissions will be needed.