Lord Offord of Garvel (Con)

My Lords, in speaking to these regulations, I will concentrate on a major area where I feel the Government must provide some clarity: regulatory burden. In doing so, I am of course mindful that it was the previous Government who introduced the initial consultation to expand and update carbon capture readiness requirements, now rebranded as decarbonisation readiness requirements. The immediate effect of these regulations will be felt across electricity generating stations in England, particularly those now required to meet the expanded decarbonisation readiness criteria. Operators will be required to submit a decarbonisation readiness report as part of their environmental permit applications, which must include technical details on the feasibility of carbon capture or hydrogen conversion during electricity generation. A significant provision in this statutory instrument is the removal of the 300 megawatt minimum capacity threshold, which currently dictates when carbon capture readiness requirements apply. In this amendment, the requirements will apply to both new and substantially refurbished combustion power plants, as well as voluntary applications for existing plants. Additionally, the SI introduces assessments for hydrogen conversion readiness and carbon capture, usage and storage. It is incumbent on the Government to outline comprehensively what specific support will be available to businesses as they are required to adjust to these new requirements. Can the Minister assure me that his officials in the department recognise that the onus must be on helping operators achieve compliance rather than face an undue burden? Will he outline whether exemptions have been considered—for example, for smaller or older power plants that may face specific challenges in meeting the requirements on day 1? There is a fine line to be walked between regulation and innovation, and, to use a familiar proverb, there is a real need here to make sure that we are not cutting off our nose to spite our face. This instrument hands the Environment Agency direct assessment powers over compliance. Again, can the Minister provide the necessary detail on the actions that the agency will take to facilitate a smooth transition before the implementation date of February 2026? Additionally, will there be any further consultations, or will any additional guidance be issued, before the regulations come into effect?