Following the publication of the Committee on Climate Change’s report, Power Sector Scenarios for the fifth carbon budget, the Aldersgate Group urges the Government to rapidly extend or replace existing low carbon support policies, the vast majority of which are expiring during the course of this Parliament.
The Aldersgate Group, whose corporate members span a wide range of economic sectors and have a global collective turnover in excess of £300bn, urged the Government today to provide greater policy clarity to support continued investment in the UK’s future low carbon power and energy efficient infrastructure, accelerate cost reductions and deliver supply chain benefits.
Nick Molho, Executive Director of the Aldersgate Group said: “UK low carbon policy has helped deliver many successes in recent years from the falling cost of onshore wind, solar PV and offshore wind to supporting the rapid growth of the UK’s low carbon economy which delivered a turnover of £122bn in 2013 and employs 460,000 people. But the low carbon sector is now at a crossroads, with urgent clarity needed in particular on the funds available to support investment in low carbon power stations in the 2020s and on the support mechanisms that will help improve the efficiency of the UK’s building stock.”
The Aldersgate Group added that the need for long-term policy signals extended beyond the power sector and affected other key infrastructure areas such as low carbon heat and low emission vehicles, where support policies are all due to expire within the term of this Parliament.
Nick Molho added: “In setting out future policies to support investment in low carbon infrastructure, cut its cost and deliver supply chain benefits, the government should also provide continued support to those energy intensive industries at risk of competitiveness impacts to ensure they can play a role in the UK’s future low carbon supply chain.”
Following the publication of the Committee on Climate Change’s report today on the scientific and international context for the fifth carbon budget, the Aldersgate Group urged the UK government to continue its effort to cut carbon emissions and grow its low carbon economy amidst increasing international action on climate change.
Following an increase in ambition in the climate change policies of key emitting countries such as the US and China, the Aldersgate Group highlighted that international action to tackle climate change was strengthening despite the fact that current pledges to cut emissions were still insufficient to prevent dangerous levels of climate change.
Nick Molho, Executive Director of the Aldersgate Group said: “The upcoming Paris climate change summit won’t result in an agreement that can immediately lock-in commitments that will prevent dangerous levels of climate change. But the summit will be a success if it commits countries to initial emission cut pledges and provides for a mechanism to increase these pledges in the coming years.”
Nick Molho added: “To support this strengthening international action on climate change, the UK must continue its own efforts to cut carbon emissions at home. Concretely, this requires rapidly replacing a range of policies such as the levy control framework that will expire during the term of this Parliament and which are critical to increasing innovation and attracting investments in energy efficiency and low carbon power, heat and transport infrastructure.”
The Aldersgate Group also pointed out that in designing the UK’s future climate change and energy policies, the government should not lose sight of the economic opportunities presented by a transition to a low carbon economy.
Nick Molho said: “The international market for low carbon goods and services is already worth $5.5tn. We must look at climate change and energy policies not only as a tool to tackle climate change but also as a way of supporting UK businesses playing an increasing role in this growing international market.”