I support the comments that my hon. Friend the Member for Ynys Môn (Albert Owen) and other colleagues made about the hon. Member for South Suffolk (Mr Yeo) and his introduction of this amendment.
Investment in clean energy and policies to keep the lights on go hand-in-hand. We need a commitment to decarbonising the power sector by 2030 not just to combat devastating and unpredictable climate change, but to keep energy prices down and the economy growing into the second half of the 21st century. The idea that there is a binary choice between a firm commitment to green energy and keeping energy bills down is clearly a false dichotomy. Decarbonisation is fundamental to keeping energy prices down in the long term; the alternative is to remain at the whim of unpredictable yet ever-rising global fossil fuel prices.
It is therefore shocking that investment in green energy has fallen in every year since this Government came to power. At current rates, investment in 2013 will be at its lowest level since 2006. This is not just a case of “not good enough”; it is an utter dereliction of duty. The Government, riddled by indecision and infighting, are deterring investment, stopping Britain becoming the leader in Europe on renewable investment.
At the evidence stage of this Bill, I asked the Secretary of State whether he agreed with his party’s position of wanting a decarbonisation target in the Bill. He said that he did but we have a coalition Government, which therefore meant that it was not going to be there—that says it all. This issue should be beyond party politics. I welcome the fact that the hon. Member for Waveney (Peter Aldous) has decided to support the amendment, and I understand that the president of the Liberal Democrats, the hon. Member for Westmorland and Lonsdale (Tim Farron), and their former leader, the right hon. Member for Ross, Skye and Lochaber (Mr Kennedy), are going to support it, too. I urge other Liberal Democrats, who have the choice at 4 pm as to which way to vote, to support the amendment, in line with their party policy.
This Government rightly decry short-termism, and we all support a long-term plan to improve British competitiveness and boost growth, which is why it is so disappointing that the Government cannot recognise the crucial long-term benefits of a 2030 decarbonisation target. Long-term strategy is even more crucial in energy policy, where large fixed costs must be met. Investors’ cash, which we know is highly mobile, relies on a strong and unwavering vision from the Government. Without such a vision, the UK has slumped to seventh in the world for investment in clean energy, and for the first time we are no longer ranked first globally for offshore wind attractiveness.
Decarbonising the power sector by 2030 is not just an important part of our legally binding commitment to reducing the UK’s carbon dioxide emissions by 80% by 2050—it is the totality of it. The Prime Minister once recognised that. In 2010, he told the Liaison Committee that
“if we don’t decarbonise electricity, we’ve got no hope of meeting all the targets that we are all committed to”.
I entirely agree with the statement, but, unfortunately, the Prime Minister seems to have abandoned that.
The case for a 2030 decarbonisation target is about more than preventing catastrophic climate change. There is an irresistible business case for these amendments, and it can be summed up in one word—jobs. The renewable industry currently supports 110,000 jobs and, across the supply chain, it could support 400,000 jobs by 2020. In 2012, the CBI estimated that nearly one third of the insufficient number of jobs created in the UK came in the green sector. Two thirds of jobs providing low-carbon and environmental goods and services are outside London and the south-east. Furthermore, if we use the BIS definition of “low-carbon environmental goods and services”, we find that the largest activity in the sector is manufacturing, with 20% of total sales and employment, as opposed to a figure of 13% for the economy as a whole. In 2010-11, green business grew by 2.3% in real terms, outstripping global growth, yet this Government’s dithering is scaring off investment in an industry worth £3.2 trillion.
Jobs, rebalancing the economy and economic growth are three pillars of this Government’s agenda that would be boosted by a decarbonisation target. It is at times of economic stagnation—this economy is certainly not booming—that investment is at its most economically productive. With interest rates at near zero, the Government should be prioritising investment in decarbonisation. That the “greenest Government ever” claim they want to decarbonise the economy but will not support a 2030 decarbonisation target is simply bizarre. Without such a target, I am deeply concerned that this Bill will not give investors the confidence we know they need to invest in low-carbon generation in the UK.