My Lords, as we rebuild, we must build back greener. Last month, the Prime Minister announced our Ten Point Plan for a Green Industrial Revolution, spanning clean energy, buildings, transport, nature and innovative technologies. The plan will mobilise £12 billion of government investment to unlock three times as much private sector investment by 2030, level up regions across the UK and support up to 90,000 highly skilled green jobs.
Further to that, could the Minister outline what consideration the Government have given to the incorporation of a national retrofit strategy as a key infrastructure priority and a core element of their industrial strategy?
The Government will publish a heat and buildings strategy in the coming months; this will set out the immediate actions that we will take to reduce emissions from buildings, including deploying energy-efficiency measures and transitioning to low-carbon heating.
Does the Minister agree that, as we come out of the pandemic, there is a real risk that we will revert to the kinds of economic practices that created the climate crisis in the first place? No economic conditions of an environmental nature seem to have been placed on the money that has been put into the economy during the pandemic, so can he give an assurance that as we approach the COP 26 climate talks in Glasgow next year we will look seriously at how we both address the economic inequalities that have been exposed by this crisis and create a green economy? Does he agree with me that that will require significant shifts in both government policy and investment strategy?
The noble Baroness makes some important points, but, of course, all of the 10-point plan was exactly about building a UK that is greener, more prosperous and at the forefront of industries for the future.
The energy White Paper published today talks about kick-starting the hydrogen economy. I warmly welcome this commitment. How will the Government ensure fair access across all parts of the United Kingdom to the net zero hydrogen fund and the other funding streams, not least research and development?
The noble Lord is quite right to point out the importance of low-carbon hydrogen, and, working with industry, we are aiming for 5 gigawatts of low-carbon hydrogen production capacity by 2030. We will try to ensure that all parts of the United Kingdom can benefit.
Lord Sheikh (Con) [V]
My Lords, I declare an interest, as I am the co-chair of the APPG on Islamic Finance. Islamic finance can play a role in the green industrial revolution. As we will issue our first sovereign green bonds in 2021, I ask my noble friend the Minister: will Her Majesty’s Government consider the issuance of green sovereign sukuks, which will help support a green economic recovery following the pandemic? I believe that our financial services sector will play a key role in the economic recovery.
As the noble Lord rightly acknowledges, next year the UK will issue its first sovereign green bonds, subject to market conditions, and it intends to follow up with a series of further issuances to meet growing investor demand. However, this is a matter for the Treasury, whose Ministers will update Parliament shortly.
My Lords, first, I draw attention to my registered interests in renewable heat and sustainable development. Will the Minister acknowledge that the present taxation system fails to reflect the shift in the carbon intensity of energy, with sustainable electricity—and, indeed, electricity in general, which is now much more low-carbon—costing four times, per kilowatt, what gas now does? Is it not time to shift the tax system to reflect the priorities the Government have in their green agenda to shift what people do?
Will my noble friend join me in congratulating farmers on both responding to the Covid epidemic and delivering a green environmental economic recovery? What could be greener than buying locally produced meat, dairy products and cheese this Christmas? Will my noble friend join me in doing so?
I thank the noble Baroness for her question. She is quite right, of course: the farming community has had a very difficult year, as have many other industries. Where possible, we should all buy local freshly produced produce.
My Lords, I declare my interests in the register. The voice of the regions will be key to our green economic recovery. The Midlands Engine’s green growth conversation aims to bring together key players in the energy sector, including local authorities, LEPs, businesses and academics to create a regional action plan. What plans do the Government have to interact with such initiatives and support existing regional strengths to enable a clean economic recovery?
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Green Economic Recovery · Order Paper · Order Paper