Lord Moynihan (Con)

My Lords, while preceding my noble friend Lord Deben, I pay tribute to his lifetime work on climate change and, while our views will certainly differ this evening, I share with him a passionate belief that we should work towards tackling climate change—he will agree that there are many different routes to achieving that goal. We are meant to be the revising Chamber, capable of detailed consideration of government measures, yet we have just six minutes each and, as the Minister has shown, that is insufficient. As Minister for Energy in the salient benchmark year of 1990, I launched the first renewables round, the non-fossil fuel obligation, while encouraging the growth in offshore gas, with strong environmental prerequisites to ban non-essential flaring, and securing gas to CCGTs, thus creating firm low-cost power to generate economic growth, jobs and prosperity. Low-cost electricity is the lifeblood of a successful economy. My business career and time in politics have taught me that a headlong rush based on DESNZ zealotry will be costly and unattainable; it will not just jeopardise but destroy economic growth. The UK produced circa 367 million tonnes of CO₂ equivalent in 2025, meaning that by 2039 we will have to reduce our annual emissions by more than two-thirds, with all the low-hanging fruit already picked. The capital and finance costs alone are estimated to be £880 billion. Government claims for the benefits are all target-derived prices to justify the policy, and we have seen the stumbling blocks impeding the rollout of heat pumps and zero-emission vehicles, not to mention the commercial challenges facing carbon capture and storage. The Climate Change Committee has estimated that, in order to meet the emissions target, household consumption of meat and dairy would have to fall by 25%. The number of sheep and cattle would have to fall by 50%. Farmers will be required to diversify away from livestock farming to double tree-planting rates by 2030 and double peatland restoration by 2040. Where is the plan? When will the Government tell the public that they intend to halve the number of sheep and cattle in the United Kingdom, with inevitable price increases in the supermarkets? When do the Government intend to tell the residential building sector that it will have to spend up to £15 billion a year on low-carbon heating systems? Add to all this the costs we introduce through this measure: demand management to apply to air travel, increasing the cost of short-haul flights, such as between London and Alicante, by £150 and long-haul flights, such as between London and New York, by £300. Industry is already facing the stark reality of the highest prices for electricity in the OECD, but the Climate Change Committee now estimates that British industry would face net costs of up to £3 billion per year in every year between 2025 and 2050. Does Ed Miliband have the remotest idea of what this will do to British industry and the economy? What is worse is that my reading of the economics is that the capital expenditures required for solar and offshore wind are hugely underestimated. Perhaps the Minister can explain how the CCC expects offshore wind to cost around £1,500 per kilowatt hour, whereas actual projects such as Hornsea 3 are expected to cost over double that. If he cannot, the up-front capital costs are underestimated, making the CCC’s claim of operating cost savings compared with fossil fuels highly questionable. I look for the CCC’s total gross cost of its pathways and I cannot understand why they are absent. No wonder the UK boss of EDF Energy has said: “We should stop building wind farms and focus instead on raising demand for electricity … As a country, we’ve always got it wrong … So now we have this large infrastructure, twice as much as we need, which means we also need to build twice” the transmission grid. No wonder almost £800 million has been spent on so-called curtailment payments so far this year alone, putting 2026 on course to eclipse the £1.4 billion spent on switching off turbines last year. Heavy manufacturing and chemical sectors have argued that the orders before us this evening introduce additional bureaucracy without tangible environmental benefits. Customers are understandably worried about the costs burden and the major lifestyle changes required by law—not by choice, as the Minister just said, but by law—in how people heat their homes, what they can eat and how they travel. All this is based on an accounting policy which wholly ignores the impact on global warming from the supply chains that we rely on. We are blind to the coal-fired CO₂-belching furnaces in China, many in Xinjiang province with Uyghur labour, which produce the polycrystalline in solar panels for us. China delivers an estimated 140 million to 200 million tonnes of CO₂ annually just by manufacturing solar panels, accounting for about 1% of China’s total annual emission, and we do not count that. The Democratic Republic of the Congo produces 70% of the world’s cobalt—a core component in the lithium-ion batteries used for electric vehicles and grid-scale energy storage—with its forced evictions, land disposals and child labour, and we do not count that. We ignore that. We do not have clean, home-grown energy. It is time to prioritise cheap energy over clean energy, remove the heavy weight of carbon taxes from our electricity prices, and exploit all remaining North Sea oil and gas reserves, in the same way the Norwegians do on their side of the median line, with gas which is four times less polluting than the LNG that we have to import instead from the States. That would strengthen our energy security.