I agree wholeheartedly. The Government should be moving heaven and earth to get these carbon capture schemes up and running, making use of redundant North sea oil assets and taking advantage of the skills base in the oil and gas industry, which can be transferred over. It is ridiculous that we have a nuclear sector deal but no sector deal for marine or tidal energy. There should be a focus on those too.
This is a Government who continue to block onshore wind. At the last auction, offshore wind was £40 per megawatt-hour, so it is madness not to allow onshore wind to bid in the contracts for difference auction process. A RenewableUK report by Vivid Economics estimates that new onshore wind projects in Scotland will create more than 2,000 jobs by 2035, so why did the previous Scottish Secretary fail Scotland by blocking those jobs and that investment in environmentally friendly projects?
Meanwhile, as my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, this Government still have a nuclear obsession. Hinkley has a strike rate of £92.50 per megawatt-hour for a 35-year concession. It is sucking money away from other projects that will count towards tackling climate change. Given that the UK Government pledged to respond to the National Infrastructure Commission this autumn, I hope a Minister will confirm that they will take on board the recommendation of abandoning new nuclear in favour of renewables.
With onshore and offshore prices at an all-time low, it is time that the UK Government considered the UK supply chain when it comes to the licensing process of the CfD auctions. Rather than concentrating on price only, bids should also be considered in terms of quality and added value if using local suppliers. Not only could that allow greater continuity of work for yards such as BiFab and suppliers such as CS Wind in Campbeltown, but it avoids the absurdness of bringing kit in from around the world when we are trying to clamp down on climate change and emissions.
Another National Infrastructure Commission recommendation is that there should be an energy efficiency infrastructure programme, which it is estimated could reduce home energy demand by up to 25%. Scotland already has an energy efficiency programme, with the programme and energy advice set-ups complemented by not only the industry but the third sector. Wales is also doing its bit. When will the UK Government invest directly in home energy efficiency measures?
Heat accounts for approximately one third of greenhouse gas emissions, which shows not only the value of energy efficiency measures but the need for a long-overdue strategy to decarbonise heat. I co-chaired a cross-party inquiry that produced a report on heat decarbonisation. I have the report here, printed by Policy Connect and Carbon Connect. I really recommend it to the House, because it contains recommendations that the Government will have to adopt.
Another simple measure related to transport is the introduction of E10 fuels. Cars are designed to run on E10, and the Department for Transport estimates that it reduces vehicle CO2 emissions by 2%, so why prevaricate? The Government should get on with it and make it mandatory.
Our environment can be improved with tree planting. The Scottish Government lead the way on that, and it is another measure that the UK Government need to step up to the plate on. Scotland has the most ambitious targets in the world with regard to climate change. We cannot afford to be dragged down by the UK Government’s inaction.