I share your concern over the impact of climate change, but I am very much encouraged by the action the Government is taking in this area.
Through the 25 Year Environment Plan, Ministers are maintaining and extending key protections for nature. The Environment Act 2021 includes a target to halt the decline of nature by 2030 and I know that my ministerial colleagues are fully committed to this target. The Act also introduces measures that will strengthen our action for nature and lay the foundation for the Nature Recovery Network, a network of places that are richer in wildlife, more resilient to climate change and provide wider environmental benefits including carbon capture and recreation.
Recognising the existential threat posed by climate change, the UK’s offshore oil and gas sector was amongst the first major industries to publicly back the Government’s net zero objectives. In 2019, the Oil and Gas Industry Association published its ‘Roadmap 2035: A Blueprint for Net Zero’, which highlighted the role the sector can play to help the UK achieve the energy transition that is vital to a fully decarbonised economy.
I would like to assure you that the Government recognises that oil and gas consumption has a negative impact on the climate, and is therefore working to reduce the UK’s reliance on fossil fuels. Measures the Government has taken include supporting increased renewable energy generation, particularly offshore wind, supporting new nuclear energy generation, improving public transport infrastructure, making houses more energy efficient, and putting regulatory targets in place to reduce demand. However, the UK, like much of the rest of the world, is still significantly dependent on oil and gas to meet its energy needs. In 2021 oil and gas accounted for approximately 75 per cent of UK inland energy consumption. While work is ongoing to reduce dependence on oil and gas as a source of energy, it will take time to put in place the alternatives.
A new climate compatibility checkpoint has been published for the oil and gas industry. The checkpoint will provide Ministers with key information relating to the climate performance of the UK oil and gas sector, so that they are properly informed before making a decision about whether to endorse further licensing.
It is important to note that producing gas in the UK has a lower carbon footprint than importing it from abroad and I am reassured that supporting the production of domestic oil and gas in the nearer term will be coupled with the accelerated deployment of wind, new nuclear, solar and hydrogen energy.
You are absolutely right to highlight the impact that buildings have on the climate. Buildings are responsible for around 30 per cent of our national emissions, and I know the Government recognises that upgrading home energy performance is crucial if we are to meet net zero greenhouse gas emissions across the UK economy by 2050. Not only this, but Ministers are clear that one of the principal ways we can tackle high energy prices in the long-term is to improve the energy efficiency of homes.
That is why the Government has announced a new long-term commitment to drive improvements in energy efficiency to bring down bills for households, businesses and the public sector with an ambition to reduce the UK’s final energy consumption from buildings and industry by 15 per cent by 2030 against 2021 levels. New funding worth £6 billion will be made available from 2025 to 2028, in addition to the £6.6 billion provided in this Parliament. To achieve this target, a new Energy Efficiency Taskforce will be charged with delivering energy efficiency across the economy.
The Heat and Buildings Strategy also signals a step change in improving the energy efficiency of our buildings and how we heat them, while also supporting 175,000 green skilled jobs by 2030 and 240,000 green skilled jobs by 2035 while delivering £6 billion additional Gross Added Value by 2030.
The Energy Price Guarantee is limiting household energy bills to an equivalent of £2,500 per year, and as announced at Budget 2023 it will be extended at this level for a further three months after April. Put together, the Government is subsidising around half of household energy bills. This comes in addition to the £400 Energy Bill Support Scheme and will support millions of people through a difficult winter and meaning they will not have to face bills of £6,000 this winter. This builds on the £37 billion worth of support introduced earlier in 2022 which included up to £1,200 for households in receipt of qualifying benefits.
I hope these measures give you confidence that nature and the climate are key priorities for Ministers.
