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Energy Bill

It is clear that in our ambition to generate more electricity from renewable sources, we must be careful that we do not inadvertently create more environmental issues for ourselves than we solve with regard to safeguarding our energy supplies. We are of course keen to ensure that the most sustainable forms of renewable electricity generation are incentivised over the long term, and we are particularly aware of the interest in the sustainability of biomass, an issue we take very seriously. That is why I will consider with sympathy both the amendment tabled by the noble Lord and his contribution in introducing it. While we understand the desire to be able to set out in secondary legislation acceptable circumstances for the growing of biomass, the amendment concerns the information requirements that may be included in a renewable obligations order. Let me put this into context. The support that an RO provides for biomass generation and the safeguards we are putting in place through primary legislation must be seen as the context in which this issue is to be examined. The majority of biomass material used for electricity generation tends to be wastes and residues from various agricultural processes rather than a virgin crop itself. Biomass is therefore not in direct competition with food resources, an anxiety we all share. Food prices are increasing, but those rises are not entirely connected to food scarcity; other factors of which Members of the Committee will be well aware are also involved. It is important to recognise that as such, materials which are residues will become available whether they are used for electricity or not, and are therefore less likely to drive unsustainable practice. When we published in 2006 research into the sustainability impact of the major biomass fuels, where they were to be used alongside coal, we saw a study by Themba, an external consultancy specialising in the sustainable use of biomass. We looked at all the major fuels and found that the net carbon balance for the production, transport and use of biomass for co-firing was positive in almost all circumstances; that is, both for imported and domestic biomass. So we have done some work in looking at the question of resources for biomass, but we are aware of the fact that there is due to be significant expansion. As the use of biomass grows, the potential for other fuels to be used and for some of these fuels to raise issues of sustainability will also grow. That is why the Bill contains provisions to include sustainability reporting, of which this amendment is a minor illustration. I would maintain that we have a broader commitment in the Bill for sustainability reporting in relationship to these issues.