Huhne victory as Government to go for ambitious cuts in CO2

The Government has accepted the advice of its climate advisers for “ambitious” cuts in emissions in the 2020s.

But while Energy Secretary Chris Huhne, who announced the decision in the Commons yesterday, said he was adopting the recommendation by the Committee on Climate Change for the fourth “carbon budget”, which governs emissions limits between 2023-2027, the decision will be reviewed in 2014.

The announcement is a victory for Mr Huhne after a rift in Cabinet in which some Ministers opposed the proposals, which will commit the UK to reducing emissions by 50 per cent on 1990 levels by 2025, on the grounds they could damage growth.

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Mr Huhne, who faces allegations he asked his estranged wife to accept speeding penalty points on his behalf, had been due to make the announcement in a written statement but was criticised for the move by Labour.

Instead he made an oral statement on the long-term emissions plans to MPs in the Commons.

As reports of the split over the issue in Cabinet emerged last week, environmental groups issued a warning to Prime Minister David Cameron that he risked seriously undermining his pledge to lead the “greenest government ever” if he did not back the targets.

Yesterday Mr Cameron said: “When the coalition came together last year, we said we wanted this to be the greenest government ever. This is the right approach for Britain if we are to combat climate change, secure our energy supplies for the long term and seize the economic opportunities that green industries hold.

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“In the past 12 months, we have pursued an ambitious green agenda and today, we are announcing the next, historic step.

“By making this commitment, we will position the UK as a leading player in the global low-carbon economy, creating significant new industries and jobs.”

Mr Huhne said the announcement sent a clear signal that the Government was serious about driving the transformation to a low carbon economy in the UK.

He said the Government would continue to press for higher European Union targets for 2020 and ambitious action in the following decade.

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European climate negotiations would be reviewed in early 2014 and if the UK’s trajectory did not match that of Europe, the budget could be revised as appropriate, the Department of Energy and Climate Change said.

Mr Cameron told the Commons Liaison Committee: “Britain is now leading the world in setting out how we are going to get to a 50 per cent reduction in emissions over the years ahead.”

Asked about reports that he had personally had to step in and overrule objections from Business Secretary Vince Cable to the new regime, Mr Cameron said the agreement on the climate change budget was reached between Mr Cable, Mr Huhne and Chancellor George Osborne at the Cabinet’s economic affairs committee.

But he added: “Number 10 is always involved. In this case, my office was involved in trying to encourage a solution. Obviously we want to meet the 50 per cent target, and we are doing that.

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“The Business Secretary and others had very legitimate concerns about energy-intensive industries and how we should try to put together a package to help them, because they are being affected, not just by the carbon budget but by also changes to the electricity market and other costs.

“It doesn’t actually help climate change if you simply drive an energy-intensive industry to locate in Poland rather than Britain. That was one sticking point. We have a good agreement that is going to deal with that.”

And he added: “While we believe that Europe should follow our lead and go for a 30 per cent reduction, they haven’t yet committed to that, so there is a review clause in what is being announced in 2014, to make sure that if they are not on that pathway, then we shouldn’t put ourselves on it too. But we are confident that we can persuade them that 30 per cent is right.”

Mr Cameron added: “I think you will see it is a very good and green announcement about our future intentions, but the Government is quite rightly making sure we are addressing the concerns people have.”

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David Kennedy, chief executive of the Committee on Climate Change, which was set up to advise the Government on meeting its targets under the Climate Change Act, said he was “delighted” the recommendations had been accepted.

The move is a world first, with no other country yet setting legally-binding commitments to ambitious reductions in the 2020s, he said.

“Setting and meeting the carbon budget will place the UK in a strong position, both in terms of meeting the 2050 target, and building an economy very well placed to prosper in a low-carbon world.”

He said it was important to translate ambition into detailed policies with strong incentives.

Key areas included reform of the electricity market, developing electric car use and making homes more energy efficient.