2030 target will trigger massive cash investment
A study published yesterday by the Committee on Climate Change, an independent body set up by Whitehall to advise on low-carbon issues, says it is “vital” the Government includes a commitment to ‘de-carbonise’ the electricity sector by 2030 in the Energy Bill when it returns to the Commons in a fortnight’s time.
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Hide AdYorkshire is pinning its long-term industrial future on an anticipated green energy boom over the next 20 years, with the Humber region seen as one of the best places in the world to develop emerging new technologies such as offshore wind and carbon capture and storage (CCS).
Industrial giants such as Siemens and Drax are prepared to invest hundreds of millions of pounds in developing new turbine factories and ‘clean coal’ CCS power stations, but the on-going uncertainty about the Government’s energy strategy means investors are holding back.
The report makes says setting a legal goal for switching the UK’s electricity supply to greener sources by 2030 provide the certainty firms need to make the 20-30 year investments required.
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Hide AdWarning of “the highly uncertain investment conditions relating to the period beyond 2020”, committee chairman Lord Deben – once John Major’s Environment Secretary – makes clear “the best way to do this is to set in legislation this Parliament a target to reduce 2030 carbon intensity”.
Inserting a 2030 target into the Energy Bill is supported by both Labour and the Liberal Democrats, but has been blocked by Conservatives who want to keep open the option of large-scale investment in gas.
But the report makes clear a ‘dash for gas’ in the 2020s would be a “high risk” strategy which could cost taxpayers more unless gas prices suddenly begin to fall.
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Hide AdNonetheless, a deal has been struck with Lib Dems to delay consideration of the 2030 target until after the next election. A group of backbench Tories hope to change the Government’s mind.
The report states that any further delay will jeopardise the huge investment on offer from a string of multinational firms.
“A delay in setting the target will allow current uncertainties to be perpetuated, with adverse consequences for supply chain investment and project development,” the report finds. “A carbon-intensity target should be set as a matter of urgency.”
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Hide AdSiemens is one of at least 10 major multi-national firms considering setting up offshore wind turbine factories along the east coast of Britain, hoping to capitalise on the massive potential of wind power far out in the North Sea.
Yorkshire is hopeful of attracting a manufacturing ‘cluster’ along either side of the River Humber, with Siemens already locked in negotiations with the Port of Hull and a planning application for a massive marine industrial park at the Port Immingham awaiting approval from Transport Secretary Patrick McLoughlin.