The plan covers Wales's territorial emissions, and therefore action from UK Government is needed in those areas for which they are responsible. We regret the lack of engagement we have had from the UK Government in the development of their net-zero plan and the lack of measures in last week’s spending review to support action on climate. By setting out clearly our expectations of UK Government action in our plan, we believe we are providing a constructive challenge, which I hope the Senedd will endorse.

The net-zero plan we published last week is the product of engagement and consultation that has taken place over the last three years, from formal policy consultations and Senedd scrutiny to initiatives like the Blaenau Gwent climate assembly. The evidence gathered to inform the Wales 2050 calculator indicate that delivering on our ambition will achieve a 44 per cent emissions reduction by 2025, outperforming the 37 per cent target recommended by the Climate Change Committee. The plan is not, however, the final word. Further ideas and action will be needed to achieve further emissions reduction, both in this Senedd term and to lay the foundations for achieving Wales's 2030 target. Globally, emissions are still rising, and every additional reduction in emissions we can achieve will make a difference.

Our plan is more than a set of proposed investments and regulations. It sets out the ways in which we will work collectively with industry, with other public bodies and with communities to deliver upon and further strengthen our ambitions. This approach can be illustrated by the approach we are taking to two of the most significant challenges to delivering net zero in Wales.

The first is the approach we are taking to eliminating emissions from Wales's homes. We could see the market was not delivering the right technologies at the necessary scale to meet the challenge of housing decarbonisation and climate adaptation in Wales. Our approach has been to use Welsh Government investment in social housing as a means to shift the wider housing market through our optimised retrofit programme. A further £50 million of investment into this scheme has been made available in this year, in addition to the £20 million I announced last winter, to test ways of decarbonising existing social homes, developing proof of concepts that can be rolled out beyond social housing.

Today, I can announce that £50 million of this annual funding will be extended for the next three years, reflecting the Welsh Government’s firm commitment to this issue and giving industry the certainty that will enable it to plan for the future, developing the skills and supply chains that will enable the successful decarbonisation of Welsh homes. The success of this scheme does come in part from the Government investment, but, critically, it also comes from the commitment of social landlords, of small and medium-sized enterprises and of third sector organisations, who shape our plans and deliver on the ground. By working with those partners and drawing on their expertise we can develop the right approaches for the diverse range of housing types in Wales.

The funding we provide will require applicants to demonstrate how they have adopted a Wales-first approach to supply chain establishment and growth. This includes making use of Welsh timber in support of our aim to grow a sustainable, high-value, high-skilled timber industry. We intend to support energy-positive homes, in which tenants’ homes generate enough energy for their own needs and surpluses to be sold to the grid, boosting household income and putting money directly into tenants’ pockets. This approach shows that, where Government works collectively with businesses, other public bodies and communities, even the most complex decarbonisation challenges can be addressed in a way that delivers benefits to social justice and local economic benefits, as well as emissions reductions.

A second policy challenge is the need to virtually eliminate fossil fuels from energy generation. The Welsh Government is the only Government in the UK, and one of the only Governments in the world, to have in place a policy position to oppose the extraction of fossil fuels. We have committed not to permit any new petroleum licences for exploration or production in Wales. Our coal policy states our intention to bring a managed end to the extraction of coal in Wales as soon as feasibly possible. We will oppose new fossil-fuelled power stations in Wales and any other replacement power plant that emits greenhouse gases in its operations. This robust stance in policy and regulation is an important Welsh Government contribution to moving away from the use of fossil fuels in our energy system, and I hope that other Governments in the UK and around the world can take courage from Wales's lead.

Our net-zero plan includes our aim to have in place detailed local energy plans across the whole of Wales, and to be the first country to have a fully co-ordinated and integrated approach to developing energy networks that do not rely on fossil fuels. Our planned approach is designed to bring together public bodies, regulators, infrastructure operators, businesses and third sector organisations around a shared agenda that we can deliver collectively. As well as helping to ensure investments in our energy infrastructure are efficient and maximise local benefit, the process of producing these plans delivers far more than Welsh Government could achieve by regulation alone.

As we welcome world leaders to the UK for COP26, we can be confident that Wales has the determination and ingenuity to deliver change that benefits not only the natural world, but also delivers equality and social justice. I'll be travelling to COP26 later this week to showcase climate action in Wales and to learn from others too. I hope this statement today provides the Senedd with an opportunity to welcome the measures we have committed to take, to urge us to go further and faster where there are opportunities to do so, and to join with us in calling on all public bodies, businesses and communities in Wales to join with us in delivering social justice through our transition to a net-zero Wales. Diolch, Dirprwy Lywydd.