Today the House of Lords missed an historic opportunity to be consistent with the Government’s commitment to being "the greenest government ever" and put growth at the top of the agenda. In a vote on whether to include a firm and foreseeable commitment to decarbonise the power sector by 2030, the peers voted against, leaving business and investors without the clear and cost effective path towards a decarbonised economy, that they have been demanding from the Government.
Peter Young, Chairman of the Aldersgate Group said: "This is a major missed opportunity, not just for UK green businesses which gave us a trade surplus of £5 billion last year, but to global businesses and investors poised to create jobs and contribute to growth here in the UK. The conflict between the Government's green pretensions and its increasing determination to procrastinate whilst relying on high carbon, polluting technologies will send global investors elsewhere and slow sorely needed business growth in the UK. The uncertainty that this Government has caused is already delaying desperately urgent UK investment. Meanwhile, our global competitors are developing tomorrow’s solutions with capital which could have been deployed in the UK to the benefit of our economy, both now and in the long term, when delayed modernisation of our power mix will be more expensive."
The Aldersgate Group has added its support to a letter sent to the Prime Minister, calling on him not to scale back the green levies included in energy bills. The letter argues that the "only sure way" to protect households against rising bills in the long term is through energy efficiency. This is supported by measures such as the Energy Company Obligation (ECO) which targets vulnerable and low income households and "hard to treat" properties. Cancelling this measure would increase the energy bill for these consumers, who are least able to afford it.
To read the full letter, click here.
The Aldersgate Group has signed a letter to the President of the European Commission, José Manuel Barosso, calling for draft legislation for a structural reform of the EU Emissions Trading Scheme (EU ETS) to be brought forward by the end of the year. The letter was signed by 53 businesses, investors and associations, who believe that a clear carbon price signal and long-term visibility are essential to drive investment and growth.
A group of investors responsible for over a trillion (£) of investment worldwide has written to the Chancellor on the day of his speech to the Conservative Party Conference calling for a decarbonisation target to be included in the Energy Bill. They argue that the lack of a target inhibits investment decisions and negatively impacts the UK’s ability to attract the capital needed to update its ageing infrastructure.
Steve Waygood, Chief Responsible Investment Officer at Aviva Investors, who signed the letter said: "We are increasingly factoring climate change risks into the decisions we make, but the confusion over medium-term energy policy is a significant impediment".
Andrew Raingold, Executive Director of the Aldersgate Group, which co-ordinated the letter with UKSIF, said: “The Chancellor’s lack of support for a decarbonisation target in the Energy Bill is completely out of kilter with mainstream business and investor opinion. Such a target would provide certainty to investors, energy generators and their supply chains, giving a much-needed investment boost to the UK economy."