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Chris Huhne to reveal long-term carbon target Chris Huhne briefs MPs on long-term carbon target
(about 6 hours later)
Chris Huhne is to set out plans to cut carbon emissions in half by 2027 and change the way Britain produces energy. Chris Huhne has set out plans to cut carbon emissions in half by 2027 and change the way Britain produces energy.
The energy secretary - who is at the centre of a storm over claims he asked someone close to him to take speeding points for him - will unveil the UK's fourth "carbon budget" in the Commons. The energy secretary - who is at the centre of a storm over claims he asked someone close to him to take speeding points for him - briefed MPs on the UK's fourth "carbon budget".
He reportedly won a battle with Lib Dem colleague Vince Cable over the targets amid fears they will hurt the economy.He reportedly won a battle with Lib Dem colleague Vince Cable over the targets amid fears they will hurt the economy.
But they could include an "opt-out" if EU competitors fail on similar aims. But they will include an "opt-out" if EU competitors fail on similar aims.
'Prime minister intervention' 'Green growth'
The decision will be reviewed in 2014 to ensure the targets are "aligned" with other members of the European Union, which Mr Huhne told the Commons made "pragmatic sense".
Countering claims that energy consumers would face price hikes as a result of the measures, he said it would result in no additional cost for the consumers during this parliament.
He also revealed the government was "working up a package of measures" to be announced by the end of the year to help energy-intensive industries "adjust" to the transformation while remaining competitive.
Mr Huhne told MPs the budget would "set Britain on the path to green growth".
"It will establish our competitive advantage in the most rapidly growing sectors of the world economy," he said.
The announcement makes the UK the first country in the world to have declared a "legally binding" target on greenhouse gas emissions beyond 2020.
The set of five-yearly carbon budgets maps out the stages the UK should go through on the way to its long-term goal of cutting emissions by 80% by 2050 by what advisers consider the most economic route.
Political squabbles in cabinet have left their scars.
Energy-intensive industries will gain relief from rising electricity prices, via details to be announced later, while the carbon budget will be reviewed in 2014 in case UK ambition means it is losing out against continental rivals.
I understand that a key factor in the decision to go with the carbon budgets advisers recommendations was a threat by Greenpeace to take the government to judicial review if it gave way to business lobbying.
The budget's adoption has been applauded by a group of leading UK companies for giving "greater certainty for business to invest in green technologies".
"It will generate jobs and export opportunities in these sectors - maintain energy security and protect our economy from oil price volatility. It's a framework for growth, not just for action on climate but for growth and prosperity."
The 2027 targets follow recommendations from the government's official advisory body, the Committee on Climate Change.The 2027 targets follow recommendations from the government's official advisory body, the Committee on Climate Change.
It has urged the UK to accept a global agreement roughly equating to an emissions cut of 50% - based on 1990 levels - by 2025. Its urged the UK to accept a global agreement roughly equating to an emissions cut of 50% - based on 1990 levels - by 2025.
The 2027 target, which is expected to be similar, forms part of reaching a longer-term aim of a 60% reduction by 2030. The 2027 target forms part of reaching a longer-term aim of a 60% reduction by 2030.
Tuesday's announcement will make the UK the first country in the world to have declared a "legally binding" target on greenhouse gas emissions beyond 2020. The committee's chief executive, David Kennedy, said he was "delighted" the government had accepted its recommendations and that it would "ensure that we make the right investment choices, maximising long-term growth and reducing our reliance on imported fossil fuels".
The set of five-yearly carbon budgets maps out the stages the UK should go through on the way to its long-term goal of cutting emissions by 80% by 2050. However, Green MP Caroline Lucas remained critical of the announcement which "risked being a sham", she said, citing the "slipped in a concessionary review clause which will allow the government to backtrack on the fourth carbon budget".
There are many different pathways the country could take - the Committee on Climate Change, which recommends these budgets to government, sets out what it sees as the most economic route. She concluded: "On the crucial issue of how we now meet the targets, the government has shunned the CCC's recommendation that the budget should be met through domestic action alone.
The business lobby has secured some concessions on the basis that the UK could lose competitiveness to its EU partners, as its emissions are now more tightly constrained. "Allowing the use of trading mechanisms such as offsetting essentially means outsourcing our emission reduction responsibilities to other countries - thereby weakening the drive to achieve more green technologies and industries, with all the jobs those can bring, here in the UK."
One big question is whether these concessions materially affect the strength of the target itself. Consumer watchdog Which? has expressed concern that domestic customers will not be similarly shielded from price rises.
But the budget's adoption should give extra confidence to companies wanting to invest in low-carbon energy.
A leaked letter last week exposed a row between Mr Huhne and Business Secretary Vince Cable over the proposed targets.
Prime Minister David Cameron was reported to have intervened on the side of Mr Huhne after Mr Cable reportedly complained that the "too aggressive" targets would "burden" the UK economy.
As it emerged the Lib Dem ministers were apparently at loggerheads, a coalition of environmental groups issued a warning to Mr Cameron that he risked seriously undermining his pledge to lead the "greenest government ever" if he did not back the targets.
Labour leader Ed Miliband also seized on the evidence of internal disagreement, writing to the prime minister to say failing to agree them would send "a terrible signal" to business and the rest of the world.
Higher prices
Foreign Secretary William Hague put the case for strong carbon targets to keep up with countries like China in the move towards low-carbon energy, and to retain the UK's international moral leadership on the issue.
However, the BBC understands that the UK's main energy-using industries have secured key concessions from the government to ease the impact of higher electricity prices.
But consumer watchdog Which? has expressed concern that domestic customers will not be similarly shielded from price rises.
The Committee on Climate Change has forecast that to meet emissions targets the average household fuel bill will go up by £1 a week until 2020 when it will plateau out with no major rises after that.The Committee on Climate Change has forecast that to meet emissions targets the average household fuel bill will go up by £1 a week until 2020 when it will plateau out with no major rises after that.
Greenpeace has described the agreement as "rare victory for the green growth agenda" in the face of what it said was "vehement" opposition from the Treasury and the Department of Business. Mr Huhne made the statement on the carbon budget to the Commons in person.
But Friends of the Earth said Mr Huhne should have gone further and accepted advice to tighten the UK's existing 34% emissions reduction target, by 2020, to compensate for the cuts already achieved due to the recession.
A Department of Energy source defended the government's handling of the issue, arguing that it would be wrong to pre-empt discussions under way in the EU and the UK was still arguing to increase the EU 2020 target from 20% to 30%.
Mr Huhne will make a statement on the carbon budget to the Commons at around 1630 BST.
The plans were originally to be announced in a written ministerial statement, a move which had drawn criticism from Opposition MPs.The plans were originally to be announced in a written ministerial statement, a move which had drawn criticism from Opposition MPs.
Shadow climate change secretary Meg Hillier had said it would "beggar belief" if Mr Huhne did not make a statement to the House on such a key issue - and claimed he might be a "bit afraid" to face MPs.
He is currently at the centre of media storm over allegations, being investigated by police, that he asked his someone close to him to take speeding points for him in 2003.He is currently at the centre of media storm over allegations, being investigated by police, that he asked his someone close to him to take speeding points for him in 2003.