Treaty of Lisbon (No. 2)

I think I answered that point a few moments ago when the hon. Gentleman was briefly absent from the Chamber. We have not given any powers away to the EU. We have pooled our sovereignty and our competences, and we have done so in our national interests and in the interests of the EU as a concept and an ethos. We have also discussed nuclear energy. The Secretary of State referred to that; the hon. Member for Croydon, South (Richard Ottaway) intervened, and the hon. Member for Esher and Walton (Mr. Taylor), my hon. Friend the Member for Crosby (Mrs. Curtis-Thomas) and my right hon. Friend the Member for Leicester, West (Ms Hewitt) all had a little nibble at the issue. France and Finland will expand their nuclear energy, and the Commission declared in its energy policy for Europe that more than half the member states use nuclear energy, and that nuclear energy provides some 30 per cent. of their electricity. Decisions in this area are left to member states, as this House learned when dealing with the Energy Bill. I should, however, make the obvious point, which has to be pointed out time and again, that nuclear power does not cause carbon emissions. Therefore, it is part of the environment-friendly programme of this Government and the EU. The hon. Member for Rutland and Melton talked about France. Nuclear power in France produces 75 per cent. of its electricity, and nuclear power has made France the largest electricity exporter in the EU. The UK's nuclear energy debate is coming to an end with discussion on the Energy Bill but, as has been pointed out, new nuclear power stations will have a role to play in the UK's future energy mix, alongside other low-carbon sources. In the public interest, energy companies will be allowed the option of investing in new nuclear power stations, and we should take the steps necessary to facilitate that. As the Secretary of State said in response to an intervention, nuclear is not the whole answer, and the energy White Paper sets out the measures being taken to enable us to become more energy-efficient and increase the supply of energy from low- carbon sources. Nuclear energy can contribute positively to the energy mix. Sadly, debate on energy has for a long time been neglected within the EU. That is why the Commission President Barroso declared on 20 November 2006 that energy had been a forgotten subject that was not on the Union agenda, but that now it is back on the agenda and is also at the heart of European integration. That should be understood against a background of energy demand growing within the global economy at the same time as energy sources are being depleted. World electricity demand is expected to double by 2030—overall global energy demand will grow by 53 per cent. between 2007 and 2030. The Union has so far enjoyed energy sufficiency at competitive prices and supplies from a variety of sources. Like the United States, the Union is a net energy importer, with 50 per cent. coming from outside the Union, rising to 70 per cent. in the next 20 to 30 years, yet member states must compete with other nations in world markets to secure supplies. It must be said that member states are unlikely to run out of energy in the next 50 years, but that does not lessen the obligation to plan for the worst while hoping for the best, as former President John Fitzgerald Kennedy once said. We have to plan for conflict and for supply interruption—the hon. Member for Rutland and Melton touched on that. We must also plan for price variations; the Secretary of State commented on that, as did the hon. Member for Castle Point (Bob Spink). It is against that background that we can debate article 176A of the amending treaty. It addresses the framework of the internal market and acknowledges the need to secure energy supplies as well as to preserve and improve the environment. It states that the Union's aim is"““a spirit of solidarity between Member States””" to"““ensure the functioning of the energy market””," the promotion of ““energy efficiency”” and"““the interconnection of energy networks.””" As the Government's document ““Global Europe: full-employment Europe”” acknowledged in referring to the spring European Council meeting of May 2007—also referred to by the Secretary of State—the Union leaders signed up to an ambitious package of climate change and energy proposals with the objective of putting the Union on the path to becoming the world's first competitive, energy-secure and low-carbon economy. The goal of the Union must be to create an energy policy that provides energy-supply security and efficiency, assists in the reduction of carbon emissions and other greenhouse gases and links in with the Lisbon agenda. It is necessary to provide a competitive framework for the new technologies in the eco-industry that will not only enable the consumer to reduce their carbon footprint, but do so at reasonable cost. Notwithstanding all that is said by opponents of the amending treaty, the paradox is that the goals of energy security, environmental protection and the fulfilment of the Lisbon agenda can only come about through the action of member states. That is made clear in article 176A of the amending treaty, which was, again, referred to by the hon. Member for Rutland and Melton. There is no single market in energy . The market indeed lies with each member state. That was touched on by the right hon. Member for Skipton and Ripon (Mr. Curry) when he referred on Second Reading to the gas contract that Bulgaria has entered into with Russia. My hon. Friend the Member for Crosby also referred to Russia in an intervention on the Secretary of State. I shall discuss Russia in a moment. There are structural differences in the way in which member states fulfil their market requirements, and although the Union may lay down rules and regulations, how to operate them is a matter for each member state. It is true that the Commission has investigative powers within its competition competence, and that it has initiated legal proceedings in Germany against alleged infringements—I refer to the case of four electricity and generator suppliers. Any proposal to commit to further liberalisation of the gas and electricity markets of the Union could be led only by the Union, and member states would have to follow. The challenge for the Union is to urge member states along in the interests of the broader Union and in their own interests. That is the purpose of article 176A; it aims to provide a framework to those ends. The Union must meet its own increasing energy demand and match that with its intended constraints to safeguard the environment. Such measures include: reducing carbon and other greenhouse gas emissions; developing hybrid cars to consume more biofuel; developing renewable energy; and, of course, resolving the debate on nuclear power. To return again to the comments made by the right hon. Member for Skipton and Ripon, much is often made about security of supplies when it comes to Russia. I believe that was also touched on by the hon. Members for Rutland and Melton and for Mid-Worcestershire (Peter Luff). The question is whether too much dependence is involved in dealing with suppliers from Russia. Is the Union's dependence on Russia to the detriment of the Union? The Union's policy towards Russia is one not of dependence, but of interdependence. José Manuel Barroso has declared that interdependency is for the mutual benefit of both Russia and the Union, and that it requires transparency, the rule of law, reciprocity, non-discrimination and a level playing field in terms of market opening, market access and competition. In other words, interdependence means that the Union relies on Russia for a major part of its energy supply, and Russia sees foreign currency receipts from that and its trade with the European Union contributing some 40 per cent. of the Russian budget. However, interdependence goes beyond energy supply. The Union is Russia's major trading partner—bilateral trade reached €96.55 billion in 2004. More than 60 per cent. of Russian export revenue comes from energy—most from exports to the Union. That is true interdependence. The Union has therefore every interest in deepening its relations with Russia and maintaining its access to oil and gas through long-term contracts, facilitating security of supply, which is so paramount to the Union's industrial efforts. I have cited Winston Churchill once, and I am happy to do so again. He said that dreams are good, but facts are better. The fact is that Russia has 27 per cent. of the world's known gas reserves, in addition to its oil reserves. Of course, the Union imports from the Organisation of Petroleum Exporting Countries and has established a formal dialogue to improve communication about prices, supplies and investment. In 2003, some 23 per cent. of the Union's gas came from Russia, whereas Algeria provided 30 per cent. and Norway 25 per cent. That was also mentioned by the hon. Member for Rutland and Melton and my hon. Friend the Member for Barnsley, West and Penistone (Mr. Clapham). Algeria is a reliable and traditional supplier that enjoys a strategic energy partnership with the Union. I am glad that delegates from the Algerian Parliament will visit the UK Parliament, through the auspices of the Inter-Parliamentary Union, at the end of February. The Government's policy and the amending treaty link energy policy and trade policy. The Union's aim is to integrate Algeria fully in the Union's internal market, and thus double its gas supplies to the Union. The Union has also signed an agreement with Ukraine to co-operate not only on nuclear safety, but on the integration of electricity and gas markets. The Union seeks to improve environmental standards in Ukraine's coal sector, and agreements have been signed with Azerbaijan and Kazakhstan. The Foreign Secretary's Bruges speech on 15 November followed in the august footsteps of the noble Baroness Thatcher. He called for an ““environmental Union”” and for the Union to be a ““model power”” in the 21st century. He also wanted it to be a low-carbon power. There should be some unity across the Floor of the House on the following at least: an energy policy linked to a reduction in carbon emissions; a 20 or 30 per cent. reduction from a base year of 1990, with a longer-term goal of reducing emissions to less than 50 per cent. of 1990 levels by 2050; and all that being linked to sustainable development and poverty reduction, doing one's best for the environment and marrying that with energy security. The Union spoke with one voice at the Bali conference in December in its search for a replacement for the Kyoto protocol. It gave world leadership to achieve these reductions in greenhouse gases. The Prime Minister added to that when he reported back from the European Council meeting in December. He said:"““Europe must also step up funding, including funding through the World Bank, to help the developing world to shift to lower carbon growth and adapt to climate change.””—[Official Report, 17 December 2007; Vol. 469, c. 597.]" On Second Reading, the right hon. Member for Skipton and Ripon quoted from Milton's ““Paradise Lost””. The European Union is not a paradise lost, but nor is it a paradise found. Whatever the views of right hon. and hon. Members of this House, the Union is here to stay. Europe has had centuries of fluctuating history, with its plagues, pestilence and wars, but now it has peace, prosperity and unity in diversity. The Union has chosen the path of civilisation, progress and prosperity, seeking to apply that to all its citizens. The hon. Member for Stone does not seem to think it a wise principle to follow civilisation, progress and prosperity. Perhaps he will give me an alternative.