Fourth Carbon Budget

Andrew George Excerpts

Tuesday 17th May 2011 Commons Chamber

[Chris Huhne]

We have every intention of ensuring security of supply, and gas will perform an important role in that regard, in the short run and in the medium run. Given the worldwide potential for the exploitation of unconventional gas from shale and other formations, it might well be the case that gas will play a long-term part in our energy mix as well, through clean coal and gas, and carbon capture and storage. I take the hon. Gentleman’s point on board, however, and we will not have stranded assets of the kind he describes. We will be introducing our proposals in the White Paper on electricity market reform.

[Andrew George (St Ives) (LD)]

I warmly welcome my right hon. Friend’s statement to the House today, and his commitment to ensuring that the UK will be the first country in Europe to have legally binding emissions targets beyond 2020. Further to the point raised earlier by my hon. Friend the Member for South Thanet (Laura Sandys), what can his Department do to ensure that the green growth industries are able to take full advantage of the opportunities that this statement and the Government’s policy will provide?

[Chris Huhne]

We are determined that there should be enormous growth opportunities for low-carbon goods and services in the UK, and I would like to highlight two things that our Department can deliver. The first is the certainty required to enable investment in the replacement of ageing power plant that we will need over the next 10 years. Ofgem has estimated a figure of £200 billion, which is roughly double the normal level of investment in the UK, so this will be important in powering the recovery over the next few years. The second is the provisions in the Energy Bill, the Second Reading of which took place last week. The green deal, which is set out in the Bill, will provide the opportunity for an enormous number of new jobs. We calculate that we will move up from the present figure of 27,000 jobs in the insulation sector to 100,000 by 2015 and that, at its peak, the policy will result in 250,000 jobs right across the industry, which will have to retrofit every home in the country. My hon. Friend is absolutely right to highlight the enormous job-creating potential for these industries, and we will keep that matter very much in the forefront of our minds.