Business sector gives cautious welcome to Government’s new UK emissions targets

The Confederation of British Industry (CBI) said this was an “ambitious target” that business will play a crucial role in delivering on, but it warned the Government needed to have the right policies in place to meet its new obligation.

“This is an ambitious target, and one where business will play a crucial role, providing low-carbon energy sources and improving the country’s energy efficiency,” commented John Cridland, CBI deputy director-general. "However, the Government must ensure we have the right policies in place to reach this target. It is essential that the Planning Bill, currently being debated in the House of Lords, be passed to allow the building of renewable energy sources and new power stations, as well as other important energy infrastructure."

He added that the “the good news” was that the steps needed to achieve this target were  “the same as those that would deliver security of energy supply for us all.”

Addressing the House of Commons for the first time on Thursday (October 16), new Energy and Climate Change Secretary Ed Miliband, said the new targets – 20 per cent more than the 60 per cent cuts previously set in the forthcoming Climate Change Bill – were necessary if Britain were to play its part in a global deal to cut carbon emissions.

“So, far from retreating from our objectives, we should reaffirm our resolve,” he said.

The Government's independent Climate Change Committee, last week, recommended the Government should adopt the higher target because climate scientists had become increasingly concerned that anything less would not be sufficient to avoid dangerous levels of climate change.

Campaign group, Friends of the Earth, welcomed the increase in target, but warned pollution from planes and ships needed to be dealt with in law.

Friends of the Earth executive director, Andy Atkins, said: "Miliband's admission that pollution from international aviation and shipping will be dealt with outside the Bill is a sign that these industries are being picked out for special treatment yet again.”

In his address, Miliband also said he planned to bring an amendment to the Energy Bill, currently before the House, to introduce a 'feed in tariff' to support small scale renewables. He said he would make a further announcement soon on encouraging renewable heat.

“The Renewables Obligation has tripled supply in the last five years,” he said, “but having heard the debate on this issue, including from many colleagues in this House, I also believe that complementing the renewables obligation for large-scale projects, guaranteed prices for small-scale electricity generation, feed-in tariffs, have the potential to play an important role, as they do in other countries.”

The renewables industry and campaigners alike supported the announcement, but there were calls for more detail to be outlined.

“We congratulate him on launching his new department with such a positive and practical initiative,” said Philip Wolfe the Director General of the Renewable Energy Association. “We also welcome Mr Miliband’s recognition of the urgent need to support renewable heat as heat is the biggest energy use in the UK. We have proposed a design for the renewable energy tariff so it can support heat and electricity and renewable gas. We hope the new Department of Energy and Climate Change will likewise take this opportunity to meet these policy aims when it drafts its Energy Bill amendment.”

Friends of the Earth's climate campaigner, Dave Timms, added: "We welcome Ed Miliband's acceptance of the need for a feed-in tariff and the important role that it can play in encouraging the installation of small scale renewable electricity systems, such as solar panels, wind and water turbines. But the details are unknown – a comprehensive scheme is urgently needed and must encourage homes, businesses, communities and local authorities to play their part in tackling climate change by developing clean, green electricity and heat.”

In his address to the House of Commons, Miliband also sent a stark message to energy providers – unless energy companies demonstrated action to end overcharging for many customers on pre-payment meters, he said he was prepared to consult on legislation to end unfair pricing differentials.