The potential for renewable heat is widely recognised, but the UK as a whole has yet to take full advantage of it. That was the reason behind clause 10.

I am aware that there is still a considerable lobby among those who favour renewable heat in support of a specific obligation. I understand what the Minister said, however, about the need to develop the best way of taking renewable heat forward. I am influenced by the fact that even some in the renewables industry are not necessarily convinced that a renewable heat obligation is the right way forward, so I accept the changes that the Government propose.

I ask the Committee to support new clause 3. Although it was tabled by my hon. Friend the Minister, I was involved in discussions with the Department about its contents. I understand the reasons for the Government’s opposition to amendment (a) to new clause 3. It would help if the Minister could give more detail either today or in writing about how he would satisfy himself as to the most effective and practicable way of taking forward renewable heat. As for amendment (b) to new clause 3, I shall be happy in due course to accept a revised provision, as outlined by the Minister.