UK at forefront of a low carbon economic revolution

A comprehensive plan to move the UK onto a permanent low carbon footing and to maximise economic opportunities, growth and jobs was published by the Government today.

The UK Low Carbon Transition Plan plots out how the UK will meet the cut in emissions set out in the budget of 34% on 1990 levels by 2020. A 21% reduction has already been delivered – equivalent to cutting emissions entirely from four cities the size of London.

Transforming the country into a cleaner, greener and more prosperous place to live is at the heart of our economic plans for Building Britain’s Future and ensuring the UK is ready to take advantage of the opportunities ahead. By 2020:

- More than 1.2 million people will be in green jobs

- 7 million homes will enjoy pay-as-you-save home energy makeovers, and more than 1.5 million households will be supported to produce their own clean energy

- 40% of electricity will be from low carbon sources, from renewables, nuclear and clean coal

- We will be importing half the amount of gas that we otherwise would.

- The average new car will emit 40% less carbon than now.

The Transition Plan takes a cost effective route to reducing carbon and keeps the overall impact on the consumer to a minimum. Today’s plan will not increase average energy bills by 2015, compared to now. By 2020, the impact of ALL climate change policies, both existing and new, will be to add, on average, an additional 8% - or £92 - to today’s household bills. Since 2000 £20 billion has been spent tackling fuel poverty, assisting millions of households in the UK. The Plan includes greater powers for the regulator Ofgem to protect the consumer and, following new legislation, new resources for discounts off the bills of some of the most vulnerable households.

The Transition Plan is the most systematic response to climate change of any major developed economy, and sets the standard for others in the run up to crucial global climate talks in Copenhagen in December.

The UK Low Carbon Industrial Strategy, published alongside, sets out a series of active government interventions to support industries critical to tackling climate change. It puts workers and businesses in the UK at the forefront of massive global opportunity by targeting key industries and regions where the UK has competitive or commercial advantage, including offshore wind, marine power and carbon capture and storage. This includes the first allocations from the £405m funding for green industry and technology announced in the Budget.

Also published today are the Renewable Energy Strategy which maps out how we will deliver the UK’s target of getting 15% of all energy (electricity, heat and transport) from renewables by 2020, and the Government’s Low Carbon Transport Plan which sets out how to reduce carbon emissions from domestic transport by up to 14% over the next decade.

Energy and Climate Change Secretary Ed Miliband said:

“The UK was the first country in the world to legislate for carbon budgets. It was a dramatic change in approach. This is a transition plan for Britain, a route-map to 2020, with carbon savings expected across every sector and a carbon budget assigned to every government department alongside its financial budget.

“Renewables, nuclear and clean fossil fuels are the trinity of low carbon and the future of energy in Britain. Under our plans we will get 40% of our electricity from low carbon energy by 2020 and more in the years afterwards.

“Our plan will strengthen our energy security, it seeks to be fair to the most vulnerable, it seizes industrial opportunity and it rises to the moral challenge of climate change.

“In five months, the world must come together at Copenhagen and follow through on the commitment of world leaders last week to stop dangerous climate change. Today we have shown how Britain will play its part.”

Business Secretary Lord Mandelson said:

“The strategies we are launching today outline the government’s vision for achieving a low carbon future for the UK, reshaping the way we live and work in every element of our lives. This is a challenge that every economy is facing, and we are determined that by setting clear policy now Britain positions itself to benefit both economically and environmentally from the transition.

“The UK is already the sixth largest economy for low carbon goods and services, globally worth £3 trillion and growing, and today the government is outlining how its support for the economy will ensure our businesses and our workforce continue to lead the way. We must combine the dynamism of the private sector with a strategic role for government to deliver the benefits of innovation, growth and job creation in the UK.”

Transport Secretary Andrew Adonis said:

"Transport accounts for a significant amount of our domestic emissions. Therefore decarbonising this sector has to be front and centre of efforts to meet our obligations and commitments to tackle climate change. Our strategy sets out a long-term vision for a fundamentally different transport system in our country, where carbon reduction is a central consideration in the way we do business.

"If we are to safeguard the future of transport then we must also safeguard the environment that it impacts upon – I am determined to do that."

The UK is the first country in the world to set itself legally binding ‘carbon budgets’. Under the Climate Change Act 2008 emissions of greenhouse gases are constrained in each successive five year period. The Transition Plan sets out how we will cut emissions by 34% on 1990 levels by 2020 from the main emitting sectors – power, homes, workplaces, transport and agriculture – on the way to achieving a reduction of at least 80% by 2050. Every government department has today been allocated its own carbon budget, as the Government pilots a new system to run alongside financial budgets.

Departments will have to live within these when taking major policy decisions and managing their buildings. Failure could have real financial implications for Government.

An outline of announcements contained in the documents published today:

THE POWER SECTOR

Around 50% of the annual emissions cuts between now and 2020 will be achieved by further greening of the electricity mix. We expect 40% of the electricity we use in 2020 to come from low carbon sources – 30% from renewables, the rest from nuclear (including new build) and clean coal. We need to all-but eliminate carbon from electricity by 2050.

New today:

- Up to £6m to start development of a ‘smart grid’, including a policy road map next spring.

- DECC to take direct responsibility from Ofgem for establishing a new grid access regime within 12 months.

- Launch of the new Office for Renewable Energy Deployment in DECC to speed up the growth of renewables in the UK.

- £11.2m to help regions and local authorities prepare for and speed up planning decisions on renewable and low carbon energy whilst protecting legitimate environmental and local concerns.

- The final shortlist of the schemes for the Severn Tidal Power feasibility study is confirmed as three barrages (including the Cardiff-Weston barrage) and two lagoons. Three innovative schemes have also won funding to support their development.

- A consultation covering the changes to the existing Renewables Obligation, such as extending the life-time of the RO to at least 2037 and the introduction of a 20 year limit on support, to make it capable of delivering some 30% of our electricity from renewables.

- Approval for the UK’s largest biomass power station on Teesside

HOMES AND COMMUNITIES

Around 15% of the annual emissions cuts between now and 2020 will be achieved making our homes more efficient and supporting small scale renewable energy. There are massive cash savings to be made - in a poorly insulated home, up to £1 out of every £3 spent on heating is being wasted.

New today:

- We aim to place the energy suppliers’ social programmes on a statutory footing with increased resources when the current voluntary agreement ends in March 2011.

- Strengthening the energy regulator Ofgem’s powers to protect the consumer.

- ‘Pay as you save’ pilots helping people make their whole house greener by using the savings made on energy bills to repay the upfront costs, backed by up to £4m from low carbon investment funding. An eventual national roll out could create 34,000 jobs.

- Consultation on the shape and rates of a new ‘clean energy cash-back’ scheme (Feed in Tariff) to be in place by April next year. People and businesses that generate their own electricity from low carbon sources will be paid for doing so. A similar scheme for renewable heat will follow in April 2011.

- Extending the current CERT energy efficiency programme by a year to 2012. Alongside an uplift of 20%, total help under the scheme will total £3.2 billion.

- A new personal carbon incentive scheme to challenge people on a voluntary basis to save energy, through the Government’s Act on CO2 campaign.

- Challenging 15 villages, towns or cities to be testbeds for piloting future green initiatives.

WORKPLACES AND JOBS

Around 10% of the annual emissions cuts between now and 2020 will be achieved through greater efficiencies in our workplaces. By 2050, our offices, factories, schools and hospitals need to reduce emissions to almost zero. Jobs and business opportunities will be created in new sectors outside the energy sector and help will be needed to support all businesses be more energy efficient.

New today:

- Up to £120m from low carbon investment funding to significantly advance the offshore wind industry in the UK.

- Up to £60m from low carbon investment funding announced in the Budget to cement the UK’s position as a global leader in wave and tidal energy including:

- Up to £9.5m investment in the Wave Hub sub-sea socket off Cornwall and up to a further £10m funding to make the South West the UK’s first Low Carbon Economic Area, a world centre for wave and tidal energy, building on business opportunities and skills.

- Up to £10m for testing facilities at the National Renewable Energy Centre in Northumberland and up to £8m for the European Marine Energy Centre in the Orkneys.

- Up to £22m for a new Marine Renewables Proving Fund for testing and demonstration of wave and tidal technologies.

- £6m of funding to explore areas of potential “hot rocks” to be used for geothermal energy. The deep geothermal resource of the South West of England alone could meet 2% of annual UK electricity demand.

- A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry.

- A new Nuclear Advanced Manufacturing Research Centre to combine the knowledge, practices and expertise of around 30 manufacturing companies with the capability of universities on manufacturing, processes and skills.

- Campaign to be launched later this year to help small and medium businesses in the shift to low carbon.

- The public sector must lead by example. Emissions have already reduced by a third between 1990 and 2007 and DECC has challenged itself to reduce emissions from its own building by 10% in 09/10 with more to follow.

TRANSPORT SYSTEM

Around 20% of the annual emissions cuts between now and 2020 will be achieved by cleaning up the way we travel. By 2050, road and rail transport will be largely decarbonised and aviation and shipping will have seen a significant improvement in efficiency.
New today:

- Providing proposed detail on the kinds of electric and plug-in hybrid cars that could qualify for the £2-5000 consumer incentives expected to apply from 2011. This includes the requirement for the vehicle to have maximum tailpipe emissions of 75g CO2/km. An update has also been published on the infrastructure framework which is supporting this scheme.

- A new steering group for the freight and logistics industry to find effective ways of measuring, reporting and reducing emissions across the logistics sector

- Commitment to work with our European partners to develop a robust mechanism for regulating CO2 from new vans.

FARMS AND MANAGING LAND AND WASTE SUSTAINABLY

Around 5% of the annual emissions cuts between now and 2020 will be achieved by reducing emissions from agriculture, land use and waste.

New today:

- For the first time ever, an ambition for agriculture to cut emissions. Changes to farming practices can save farmers money and contribute 6% cuts from current projections by 2020.

- Support for anaerobic digestion, a technology that turns waste and manure into renewable energy.

- Support for energy efficient and low carbon farming. Within the limits imposed by the current EU rules on state aid, the Government and the Carbon Trust will work to make farming businesses eligible for its interest-free loans for low-carbon activity.

- Agreeing an action plan with the agriculture sector to reduce emissions and developing an advisory service to help farmers.

- Encouraging private funding for woodland creation.

- Reducing the amount of waste sent to landfill, and better capture of landfill emissions.

Greenpeace hails 'signs of climate leadership' at last

Following Thursday's announcement by Ed Miliband of new regulations for coal plants and the launch of a consultation on coal policy, Greenpeace executive director John Sauven said:

"At last Ed Miliband is demonstrating welcome signs of climate leadership in the face of resistance from Whitehall officials and cabinet colleagues. He is the first minister in twelve years to throw down the gauntlet to the energy companies and demand they start taking climate change seriously."

Greenpeace believes the key part of today's announcement is the requirement by power companies to capture and bury all the CO2 emissions from new coal plants by 2025 at the latest, if the Environment Agency states that CCS works a radical departure from the policies of previous energy secretaries. This time last year energy issues were being decided by tired ministers in thrall to regressive civil servants. Now we see hints of real climate leadership.

John Sauven continued:

"Finally a cabinet minister has faced up to the massive threat coal poses to the climate, but we're not there yet. Very significant questions remain unanswered, with environmentalists concerned that emissions from coal could still be undermining Britain's climate efforts for years to come. For every tonne of carbon captured and buried from new coal plants before the 2020s, the Government seems happy to see three tonnes released into the atmosphere. Until there is a cast iron guarantee that new coal plants won't be allowed to pump out massive amounts of CO2 from day one, our campaign continues."

Questions that the consultation must answer are:

• Will new coal plants be permitted to operate for a decade while still pumping three-quarters of their emissions into the atmosphere?
• How will the Government ensure that, if CCS technology doesn't work, the UK won't be left with a legacy of new coal plants emitting huge amounts of CO2 at a time when we must be slashing emissions?
• Will existing coal plants like Drax, which are slated to continue operation into the 2020s, be allowed to continue operating unabated despite their massive emissions?

Four CCS coal demonstration projects operating for 15 years before becoming fully CCS could still emit up to 275 million tonnes of CO2, according to the Greenpeace energy team (calculation available on demand). Greenpeace believes today's announcement will only be effective in ruling out climate-damaging emissions from coal if it is backed up with tough regulations that prevent the prospect of the energy companies building new highly-polluting coal plants with the odd small CCS experiment bolted onto the side. A new Kingsnorth that emits marginally less than it otherwise would have is still utterly inconsistent with claims that Britain leads the world on climate change.

Research by Poyry, Europe's leading independent energy experts found that if Britain meets its renewables and energy efficiency targets, we won't need any coal or nuclear.

In December last year Lord Turner's Committee on Climate Change in its advice to the Prime Minister said no coal station (existing or newly built) should still be operating without full CCS beyond the early 2020s. Professor James Hansen, the NASA director widely recognised as the world's leading climate scientist, has said no coal station should be allowed to be built unless it has full CCS from day one.

Greenpeace supports the approach pioneered by Governor Schwarzenegger in California - an Emissions Performance Standard (EPS) applied to power stations that would limit the amount of CO2 produced per kilowatt-hour of electricity generated. Greenpeace advocates an initial EPS of 350g/Kwh which would rule out new unabated coal. The EPS would tighten over time to reflect developing technologies and demands by scientists that emissions peak in 2015 then reduce dramatically.

Sauven said:

"The Government should implement an Emissions Performance Standard so if CCS doesn't work, whatever takes its place is in line with the climate science."

Environmentalists have run a two year campaign against new highly-polluting coal plants, with attention focusing on E.ON's plans to build a new plant at Kingsnorth in Kent. The German utility submitted plans for a normal unabated' plant, and came close to achieving consent from then-energy secretary John Hutton. Now those plans are regarded by government as untenable.

Six Greenpeace activists who shut down the existing plant at Kingsnorth and painted the Prime Minister's name on the chimney faced trial late last year but were acquitted after convincing a jury that the damage they did to the power station was justified in the face of the harm done to the planet by coal plants.

In Thursday's Financial Times Scottish Power urged the Government to support a plan to 'retro-fit' CCS at the company's existing Longannet power station on the east coast of Scotland. Fitting CCS to such existing plants would negate the need to build new coal plants in order to demonstrate the potential viability of the technology. Nick Horler, the chief executive of Scottish Power, said: "There are over 50,000 fossil fuel plants worldwide, and if we can't do anything about retro-fitting them with carbon capture, then whatever we do with new build is largely irrelevant."

A full Greenpeace briefing on coal can be downloaded at: http://www.greenpeace.org.uk/files/pdfs/climate/caseagainstcoal200812.pdf

A timeline of recent developments in the coal debate can be found at: http://www.greenpeace.org.uk/coaltimeline

(DECC) UK public backs the need for a 'Great British Refurb.'

New research published today (April 20) reveals there is strong support among the UK public, at deliberative research events, in favour of ambitious Government action to decarbonise the nation's housing stock. The research, released by the Department of Energy and Climate Change (DECC), comes ahead of the Chancellor setting out the caps for the UK's first 3 carbon budgets.

Under the UK Government's 'Great British Refurb' plans, at least seven million homes will have been offered 'whole-house' upgrades with energy efficiency and micro-generation technologies by 2020, and every home by 2030 - virtually eliminating carbon emissions from our homes. The changes will also help keep consumers save money on their energy bills.

Research conducted by Ipsos MORI found householders are willing to play their part in tackling climate change and decarbonising our energy supply. As part of the 'Big Energy Shift' engagement process, householders in England, Wales and Northern Ireland were asked for their opinions and ideas on the challenges facing us - with the results forming part of the Government's long-term Heat and Energy Saving Strategy and Renewable Energy Strategy.

Energy and Climate Change Secretary Ed Miliband said:

"We spoke to citizens around the nation and found that there is a strong desire for Government action. People are enthusiastic and positive about the need for better energy efficiency in our homes and communities. They understand that the twin threats of climate change and security of supply means we have to get serious about developing alternative, low-carbon sources of energy.

"The Government wants to make these changes as simple and affordable as possible for householders - and we want people to have a say in the process. That's why we've been holding householder consultations with ordinary citizens coming together to discuss the challenges we face, look at examples of energy efficiency and micro-generation in nearby homes in their neighbourhood, and come up with ideas and suggestions for Government to follow.

"Today, we're bringing together Big Energy Shift participants from across the country to share their experience and ideas, and to tell me what they think the Government needs to be doing in order to encourage everyone to play their part in the fight. We're listening to what people think and responding to their suggestions."

Participants from nine communities in England, Wales and Northern Ireland met together over the Spring for a series of deliberative discussions facilitated by Ipsos MORI. The project was commissioned and supported by DECC, the Northern Ireland Department of Enterprise, Trade and Investment, and the Welsh Assembly Government, and funded by Sciencewise. The aim was to establish the basis on which the public would be prepared to take action to install and benefit from renewable energy generation and saving measures.

Participants were asked for their opinions on the types of household technologies involved in the 'Great British Refurb' (such as heat pumps, smart meters and solid wall insulation), what would motivate them to make changes to their homes, and what help the Government should be providing. They were also asked for views on large-scale technologies such as wind farms and district heating.

The initial findings by Ipsos MORI, released today, show that:

* Householders are concerned about climate change and energy security/affordability - and recognise that we can't rely on a 'business as usual' approach.

* Householders are enthusiastic and positive about the concept of a 'Great British Refurb' - increased energy efficiency, whole-house eco-makeovers, and the idea of generating their own energy through microrenewables.

* People want strong leadership from Government, with set goals and targets, and a clear explanation of what is needed from individuals, communities and business.

* Individuals need help with the up-front costs of decarbonising their homes through loans and grants - and they want fair targets which take into account the diversity of the UK housing stock.

* Opposition to large-scale renewable energy projects such as wind farms is significantly reduced once people become more aware of the energy and climate change challenges facing the country.

More information and a copy of the report is available at http://www.bigenergyshift.org.uk. Full findings will be released in the coming weeks, following today's final event.

(DECC) Ed Miliband statement on G20

Energy and Climate Change Secretary, Ed Miliband said:

"The Summit communique makes building a green and sustainable economy one of the six core commitments of economic recovery made by the G20 countries, and 'accelerating the transition to a green economy' one of the goals of fiscal expansion.

"The leaders also agreed a strong commitment to achieving a deal at Copenhagen - the first time all major countries have collectively done so.

"This provides an excellent platform for discussions at the upcoming Major Economies Forum. The Prime Minister welcomed the decision by President Obama to re-establish the forum including a Leaders' Summit to discuss climate change.

"These are good outcomes, establishing the central role of climate change in economic policy even in the midst of this financial and economic crisis."

G20: Time for talking is over - world must act on Green New Deal

Governments are increasingly accepting the benefits of a major investment plan to help bring the world out of recession and tackle the looming threat of dangerous climate change. But the Green Party today pointed to equivocation in British government circles.

Energy and climate change secretary Ed Miliband recently said on BBC News that it was important for the G20 to make commitments on helping the environment as well as the economy. Mr Milliband said:

"There are some people who will say you can either tackle the economic crisis or the climate crisis. But the truth is that both come together with this idea of a Green New Deal, of investing in the jobs of the future, which are going to be in the green industries of the future."

But it has been shown that only a tiny fraction of the government's own stimulus package is connected with tackling climate change (1) - and today Robert Watson, chief scientific adviser for Defra, voiced his concern about the limited commitment to a low-carbon economy:

"I think [low-carbon recovery] deserves a higher profile. Everybody seems to be focusing on short-term recovery and getting long-term regulation of the banks right. I haven't heard anything that suggests the green recovery and climate change are a major part of the [G20] agenda." (2)

**G20 must act boldly**

Rupert Read, prospective Green Party MEP for Eastern England, who will be going to the G20 on Thursday to take the Green message to the summit, said today:

"The time for talking is over - the world must act on the Green New Deal, right now.

"Green Party Leader Caroline Lucas MEP helped formulate the Green New Deal, a concept being widely supported by Governments, yet not acted upon. It is simply unacceptable if world leaders are going to emerge from G20 with more pointless group photos and warm words, but no real action.

"A failure to implement a Green New Deal soon, in this country, across Europe, and across the planet, will both increase the likelihood of the recession worsening and fail to tackle the looming threat of dangerous climate change. Time is running out.

"The G20 must act boldly - we need a repeat of what Roosevelt did in the 1930s, but on a worldwide scale, and with a deep-green-hue. The beauty of a 'Green New Deal' is how it makes such great economic sense: green jobs in renewable energy, energy efficiency, sustainable agriculture and public transport systems - an investment for the future in making our economy greener, cleaner and more efficient.

"Globalisation has failed catastrophically and utterly. I will be going to London on April 2nd, when the G20 meets in session, to add to demands for co-ordinated action now for global justice, for a Green New Deal, for a massive re-regulation of the financial markets.

"With the exception of Barack Obama, the G20 leaders are the very people who got us into this catastrophic economic and environmental mess that we are in, by handing power over to big business and big monied interests. It is time for the people to take that power back!"

He added:

"The marches in London last weekend were peaceful and raised the profile of the need for action on jobs and the green economy. The Green Party supports peaceful action in this way - the messages that need to be addressed to world leaders are too important to be clouded by non-peaceful actions."

(DECC) Ed Miliband response to Ofgem's direct debit report

In response to Ofgem's report on direct debits, published today Ed Miliband said:

"Hard pressed consumers deserve to be treated fairly, regardless of where they live or how they pay. Ofgem's proposed changes to the rules on direct debits and earlier this week on pre-payment meters are vital.

"Consumers also deserve the lowest prices possible. The suppliers have all announced price cuts, but there's scope for more later this year. We want to see the full benefits of wholesale price reductions passed onto consumers."

(DECC) Miliband backs new protection for pre-payment and other energy consumers

Action to clamp down on unfair practices in the energy market was strongly backed today by Energy and Climate Change Secretary Ed Miliband.

The gas and electricity regulator Ofgem has this morning unveiled a package of new rules for energy suppliers that will give consumers more power and help to seal the flaws in the retail market identified in the last year's market probe.

Ed Miliband backed the clamp down:

"The overcharging of some of the most vulnerable customers exposed in the Ofgem probe was inexcusable.

"That is why it is right that Ofgem is acting to ensure that wherever you live and whatever payment method you use, you will not be unfairly discriminated against.

"We need tough regulation to protect consumers and that is why I welcome the Ofgem proposals. I believe this is the quickest way to end the unfairness that exists.

"However, if it turns out the regulator and the suppliers can't rid the market of unfair practices once and for all, I continue to stand ready to use legislation.

"The government and regulator must be eternally vigilant on behalf of the consumer."

Mr Miliband also welcomed Ofgem's new retail proposals:

"Ofgem's new proposals on doorstep selling and SME contracts are good news for householders and firms trying in difficult times to make the best sense of the choices available."