Three prominent low carbon trade bodies have joined forces to press the government to include a target to decarbonise the power sector in its forthcoming Energy Bill.
RenewableUK, the Carbon Capture and Storage Association and the Nuclear Industry Association have jointly written to Prime Minister David Cameron, Chancellor George Osborne and Energy Secretary Ed Davey to urge greater government commitment to green energy.
Amid fears that proponents of a ‘dash for gas’ are winning arguments within Whitehall, the letter stressed the importance of maintaining “momentum” in building low carbon energy generation in the UK.
In line with government advisory body the Commission on Climate Change, the three associations said the energy sector would need to be largely decarbonised by 2030 in order for the UK to meet its long-term commitment to emissions reductions and that the forthcoming Energy Bill should contain an “explicit” reference to this objective.
“This would not only reassure potential investors by lowering the perceived political risks, but could also reduce the cost of capital for decarbonising the power sector,” the letter said.
The letter follows growing concerns that the coalition is divided over the role of renewable and low carbon energy in the UK’s future energy mix. Last week the Energy Minister John Hayes apparently called for an end to the onshore wind industry, prompting a public slap down from his boss, the energy Secretary Ed Davey, who reaffirmed the government’s commitment to onshore wind and renewable energy generally.
However, reports have suggested that Chancellor George Osborne and other elements of the Treasury are at loggerheads with the Department for Energy and Climate Change over the bill, with the Treasury favouring investment in gas-fired power stations over nuclear and renewables to meet Britain’s near-term energy needs.
The so-called “quad” of Cameron, Osborne, Deputy Prime Minister Nick Clegg and the Chief Secretary to the Treasury, Danny Alexander, are due to meet this week to discuss the bill, whith is due to be published later this month.
The three trade bodies said that once published it was “essential” the bill should proceed “without delay”, with royal assent “as early as possible” in 2013.
“Any significant slippage could result in investment being postponed, with major implications for associated new industrial development and jobs in a high-tech, high growth sector,” the letter said.
A copy of the letter can be found below: