Fury over failure to back 2030 green energy target

The coalition’s majority was cut to just 23 last night in a vote on the Energy Bill which would have required Ministers to set a legal target to significantly reduce carbon emissions from electricity generation by 2030.

Supporters of the target say it would send a strong signal to investors to back clean energy, so delivering jobs, driving down the costs of renewables and making the UK less dependent on imported fuel.

Global manufacturers such as Siemens are poised to set up huge offshore wind turbine factories along the Humber, but say they first require more certainty from Government over its long-term commitment to green energy.

Colne Valley’s Tory MP Jason McCartney and Bradford East Liberal Democrat David Ward were among the coalition rebels who joined Labour in pushing for the target to be adopted.

Mr Ward said he had been moved to rebel against party whips by the clear need to offer more certainty to investors.

“Having a decarbonisation target as soon as possible was really important to provide extra business confidence,” he said. “Companies and their supply chains will only invest in the UK long-term if there’s a clear pathway and commitments for renewable energy.”

Hull North’s Labour MP Diana Johnson warned the region could miss out on jobs as a result.

“By voting against the targets that would have provided much-needed confidence that Siemens and other green investors say they want over long term UK Government policy, coalition MPs are gambling with the green jobs that Hull so urgently needs,” she said. “If Hull fails to get these jobs, they will go abroad.”

Backers said they were “disappointed” by the failure of the amendment, and called on peers in the House of Lords to continue the fight when the Energy Bill passes through the second chamber.

Tim Yeo, the Conservative chairman of the Commons energy committee, who first proposed the amendment, warned that investors were holding off putting capital into the energy sector because of the uncertainty around Government policy.

He said: “The continuing uncertainty that will result increases the perceived risk of investment, and will therefore raise capital costs – meaning consumers may ultimately pay more for the new power plants that need to be built.

“Perhaps more worryingly, failure to introduce a clean energy target now could make it harder for the UK to meet its long-term carbon reduction targets, forcing future Governments to take more costly action to curb emissions later when the impacts of a changing climate become more acute.”