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08/10/2012

Government Urged To Set CO2 Target

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UK businesses have united to urge the government into setting a specific target for restricting carbon emissions from power generation.

An open letter to Chancellor George Osborne detailing the demands was signed by 50 businesses and organisations.

The letter asks for a concrete explanation on how emissions should be curbed by 2030 and claims a failure to show commitment could be detrimental to the economy and future commercial prospects.

The letter states: "The government's perceived commitment to the low carbon transition is being undermined by recent statements calling for unabated gas in the power sector beyond 2030 and the absence of a specific carbon intensity target.

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"It is essential for government to provide investors with the long-term confidence they need to transform our electricity market."

The companies which have put their name to the letter include Microsoft, Marks and Spencer, Alliance Boots, PepsiCo, Sky, the Cooperative and Asda.

A report by business lobbyists CBI is quoted in the statement, estimating that policy uncertainty could lose the UK £400m in exports in 2014/2015 alone.

"It is essential for government to provide investors with the long-term confidence they need to transform our electricity market and make investments capable of driving wider economic growth," it states.

Peter Young, chairman of the Aldersgate Group which co-ordinated the move, called for an end to "any political uncertainty surrounding the UK's energy future."

And Andy Atkins, executive director at Friends of the Earth, which backed the letter, said Mr Osborne's support for gas power looked "increasingly isolated."

Government climate advisers have warned that any support for gas plants in the future without technology fitted to cut emissions is not in line with climate change legislation and is harming investment in low-carbon power and renewable energy.

(IT/GK)

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