Energy Bill

That calculation is realistic, given that the current technologies in many places are already delivering about 85 per cent. capture. Indeed, we discussed a proposal in Committee for a target of 90 per cent. capture. That was not supported, so we are trimming a little and trying to see at what level we can command support from the Government. The calculation is led by the science, yet it is an acceptance that we are perhaps having to moderate our ambitions a little, but—[Interruption.] Sorry, it was the Environmental Audit Committee, of which the hon. Gentleman is a fellow member, that advocated an emissions performance standard of around 90 per cent. We are going below that, which is the very least that the science demands—and indeed, the level would be increased in time. Rather less robust is new clause 6, tabled by the hon. Member for Nottingham, South, which we on the Liberal Democrat Benches are perfectly happy to support. Equally, it would mandate an emissions performance standard, but rather less specifically. Then we have the most flexible proposal, or the weakest, depending on one's point of view: new clause 15, which has the virtue of being supported by those on the Conservative Front Bench. Compromising on comprise, we are equally happy to support that, too, if it is the best that we can get today. There is clearly some opposition to an emissions performance standard. E.ON has provided us with a helpful brief, which says:""from our perspective as an investor in new generating capacity…an EPS creates new risks which will substantially increase the discount rates we apply to new investments, and ultimately determine whether we proceed with an investment or not."" That is quite a mild rebuttal. It does not say that it will not proceed; that would be foolish, of course, as its investors would query whether it was sensible. E.ON also says in its brief that it recognises that an emissions performance standard can have a useful role in defining what individual new fossil plants will have to achieve in terms of CO2 abatement. I have already cited Statoil in Norway, which has invested in the Sleipner project, as well as in the Algerian project at In Salah, and in Snøhvit. That has all been driven by the market intervention of the Norwegian carbon tax. Other economic incentives have driven investment in other parts of the world, including the potential for enhanced oil recovery in some places. That is clearly not happening in this country, however. A further reason for the Government to clarify the situation is the legal uncertainty to which my hon. Friend the Member for North Southwark and Bermondsey (Simon Hughes) referred in Committee. This relates to the European Union's view on whether an emissions performance standard would even be legal. I want to refer to the report by the legal organisation Client Earth, which outlines a scenario in which we hesitate and do not place the position beyond doubt in law, thereby ending up in a situation in which""the post-combustion CCS demonstration project is deemed …to be 'not on track'"." In such a case, a subsequent emissions performance standard would become highly controversial. The energy companies could then take the British Government to law to challenge the legality of any UK CO2 emissions performance standard. Client Earth does not think that the standard would be unlawful but states that it is""concerned that the European Commission has proposed an amendment to the definition of 'permit' in Directive 2008/1/EC (the IPPC Directive) as part of a process to recast the IPPC Directive that is currently going through the European Parliament. The European Commission's proposed amendment, although categorised by the European Commission as minor, could remove the ability of the UK to introduce the CO2 EPS. The UK should take all steps to resist the European Commission's proposed amendment and ensure that the scopes of the IPPC Directive and Directive 2003/87/EC (the EU ETS Directive) remain mutually exclusive."" It concludes:""To resolve this legal uncertainty the UK should now amend the Energy Bill currently going through Parliament to include a UK CO2 EPS and notify the European Commission of its intention to rely upon Article 193 of the TFEU"," which I think is the Lisbon treaty. I realise that the very mention of the Lisbon treaty could cause apoplexy on the Conservative Benches, but it might be coming to our aid in this particular instance, because it should force the Government to resolve the legal issue. In Committee, and today, the Minister of State made some quite alarming responses, implying that no action was likely in connection with introducing an emissions performance standard, even as a fallback, until after 2018. I would be grateful if she could confirm whether the Government intend to introduce such a standard at any stage before that. This kind of uncertainty creates other risks, and I want to ask her another specific question. How secure is the funding even for the competition project? Let us imagine for a moment that the Labour Government are re-elected and enjoy another Parliament in power. In those circumstances, how secure would the investment in this project be, if the Treasury were to say, "Actually, the rest of the world is so far ahead of us now that it isn't worth our while spending this money in the UK. We'll simply end up buying Chinese technology." Would the Minister care to intervene on me?