Lord Hendy of Richmond Hill (Lab)

My Lords, Amendment 6 would require that the Secretary of State set a maximum contract term for revenue certainty contracts before exercising the regulation-making power in Clause 6. I draw noble Lords’ attention to the overall intention of the Bill, which is to generate a new and growing United Kingdom industry that, I hope—contrary to what the noble Lord, Lord Moylan, said—will be financed in the United Kingdom as well. We are currently consulting on the detailed design of the revenue certainty mechanism. The consultation provides the rationale behind the indicative heads of terms, which sets out the framework for principal terms and conditions that could be included in a revenue certainty mechanism contract. As highlighted in the Government’s continuing consultation, we propose a 15-year term for all contracts. This aligns with the expected 10-year to 15-year debt repayment period that SAF producers will encounter. It is important that this flexibility is retained and not restricted by detailing a contract length in the Bill. Final decisions are subject to the continuing consultation, which will inform the detailed design of the full terms and conditions of revenue certainty mechanism contracts. In answer to the question posed by the noble Earl, Lord Russell, I am sure that we can find a reporting mechanism that sets out the actual length of those contracts. I therefore respectfully ask the noble Lord, Lord Moylan, to withdraw Amendment 6.