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Energy: Finance

Question for Department for Business, Energy and Industrial Strategy

UIN 43605, tabled on 6 September 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the IEA report entitled Net Zero by 2050, A Roadmap for the Global Energy Sector, published in May 2021, what steps he plans to take in response to the recommendation there should be no new investments in oil and gas production fields, coal mines or unabated coal power plants beyond 2021.

Answered on

14 September 2021

As we move towards net-zero, oil and gas will play a smaller, but still an important role in meeting UK energy demand. All scenarios proposed by the Climate Change Committee setting out how we could meet our 2050 net zero emissions target include continuing demand for oil and natural gas.

The IEA report acknowledges that continued investment in existing sources of hydrocarbons will be required to meet the world’s energy demands on the pathway to net zero.

Looking forward, the Government will introduce a climate compatibility checkpoint which will be used to assess whether any future licensing rounds remain in keeping with our climate goals. We have committed to launching this checkpoint by the end of 2021.

In relation to coal powered generation, in June, we announced the deadline for phasing out unabated coal generation in Great Britain will be brought forward to 1 October 2024 as part of our drive to go further and faster in decarbonising the power sector as we work towards net zero emissions by 2050.