Major businesses urge PM to stabilise power sector
Eight major businesses have today sent a letter to the Prime Minister calling on him to adopt effective policies on climate change to support British business and help restore the economy.
Unilever, Kingfisher, EDF Energy and Doosan Power were amongst those who signed the letter, which urges the Government to end uncertainty around the UK's commitment to its climate change targets.
Coordinated by The Prince of Wales's Corporate Leaders Group on Climate Change, the letter goes on to raise concerns over the on-going divergence of views of government on the future of the power sector.
"We have long asserted that 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" the letter states.
This latest call for clarification on climate change policy follows the low carbon energy industry association's appeal for the Government to be more decisive on firming up the energy bill, reiterating their calls for a largely decarbonised power sector by 2030.
Echoing their concerns, today's letter states that the signees agree that EU Emissions Trading System (EU ETS) should be the principle policy mechanism for decarbonising the power sector but argued that a low carbon investment signal is needed today.
"Therefore we suggest that the Committee on Climate Change's recommendation of an indicative target for the carbon emissions intensity of the UK power sector in 2030 introduced through secondary legislation is a useful step to help deliver the required certainty and should be adopted".
The concerns raised directly challenge the Chancellor's recent decision to endorse shale gas in the UK, which many claim undermines decarbonisation targets.