Business chiefs call for emissions targets in power sector

http://www.guardian.co.uk/environment/2012/nov/12/emission-targets-power-sector

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The heads of major UK companies joined calls on Monday for the government to bring in a target to slash emissions from the power sector by 2030.

In a letter to the prime minister, the companies criticised the split in the government over the future of energy supplies, including possible questions over the UK's commitment to its targets to tackle climate change.

The uncertainty over the government's plans was paralysing investment and undermining growth prospects in the country, they warned.

The government's advisers on climate change have called on ministers to introduce a target to decarbonise the energy sector by 2030, so emissions are just a fraction of current levels, to drive investment in low-carbon infrastructure.

But while the Liberal Democrat energy secretary, Ed Davey, has indicated support for a low-carbon target, backed by a range of environmental groups and businesses, the Treasury has been pushing an agenda to promote new gas supplies.

The heads of Unilever, Doosan Power Systems, Anglian Water, Philips Electronics UK, B&Q owner Kingfisher, EDF Energy, Johnson Matthey and Heathrow airport have now joined the calls for a target to be introduced.

The members of the Prince Of Wales's Corporate Leaders Group on Climate Change warned: "Attempts to set a strong economy at odds with effective policies on climate change are self-defeating.

"The only successful long-term plan to grow the UK economy will be one which takes account of climate change, both to reduce the risk of a changing climate to business and to support access for British business to the rapidly growing global market for low carbon goods and services."

A low-carbon signal to investors is needed, they warned, and so an indicative emissions target should be introduced through secondary legislation to set the level of ambition for reducing greenhouse gases from the power sector.

They also said the government needs to be be very clear on how low carbon investment will be delivered in a cost-effective manner.

"This includes looking at the right incentives to support development of less mature low-carbon technologies and ensuring competitiveness impacts will be addressed, especially by securing comparable EU targets for 2030."

The letter is being sent ahead of an expected meeting to discuss the issue of the prime minister, David Cameron, the deputy prime minister, Nick Clegg, the chancellor, George Osborne, Davey and the chief secretary to the Treasury, Danny Alexander.

The letter follows a similar one last week calling for a decarbonisation target, signed by an usual coalition of the trade bodies representing the renewable energy, nuclear power.