Fourth Carbon Budget
Debate between Chris Huhne and Lord Barwell
Chris Huhne
We have not accepted a number of the other detailed recommendations in the committee’s report, but the trading one is an obvious example. It also asked us to set a target for 2030, and we do not see the need for that. I am not a great believer in intermediate targets when we have a very clear overall carbon budget, but given our commitment to a target figure of 1,950 million tonnes for the overall carbon budget for 2023 to 2027, nobody should be in any doubt about the thrust of our policy or our determination to meet our target. I have a very strong preference for achieving what we are actually trying to do, which is to cut carbon emissions, rather than for setting a whole group of intermediate targets, but that we will do.
Gavin Barwell (Croydon Central) (Con)
I warmly welcome the Government’s decision to accept the independent committee’s advice. Further to the question I asked my right hon. Friend on Second Reading of the Energy Bill, can he confirm that the Government report setting out the policies and proposals required to meet the budget will include an assessment of the contribution each will make so that the House can assess the value for money that they offer?
Chris Huhne
I am concerned to ensure that all our policies offer real value for money. I believe the only way we will be able to hold public consensus behind what is a very ambitious programme of industrial change is if we show we are really ensuring that we get value for taxpayers in each policy we pursue. That is why we had to take the decision we took on solar feed-in tariffs. Although everything was unchanged below two tennis courts-worth, we have had to review the solar tariffs for the larger scale solar because we are determined to get good value for money. That is crucial. I also take on board the fact that the OECD’s latest country report urged us to look at the different implicit carbon prices in our policies across the board. I very much take that to heart and we will look at it. I can therefore assure my hon. Friend that we will address value for money, and that it is foremost among our considerations in delivering good policy.
Energy Bill [Lords]
Debate between Chris Huhne and Lord Barwell
Chris Huhne
I will make a little progress, if I may.
Millions of homes, and millions of businesses, could benefit from the green deal in the next decade. We expect that households will be able to install measures worth up to £10,000. That is a massive undertaking, and it can make a real difference. Heating is the second biggest driver of energy demand in Britain, and British Gas pilots show that householders who put in energy efficiency measures can cut their gas consumption, and their bills, by up to 44%. That is a very substantial and significant saving, but so far energy efficiency has passed under the radar. We estimate that between £2 billion and £3 billion of energy is wasted every year because our homes are poorly insulated and inefficiently run. We may as well be standing outside our front doors burning £50 notes. That waste represents £2 billion to £3 billion of gas and oil imports that make us more vulnerable to the vagaries of global oil and gas markets.
Gavin Barwell (Croydon Central) (Con)
What estimate have the Government made of the contribution that the energy efficiency measures in the Bill will make to the UK’s obligations on reducing carbon emissions?
Chris Huhne
One problem that we have in making that assessment is that, as I have said, this is the first scheme of its kind in the world. If an economist is trying to make a projection of what is going to happen in future, they usually examine what has happened in the past, but there is no history for this scheme, so it will be a case of “suck it and see”. However, later in my speech I will give some estimates of what will happen if the scheme progresses as rapidly as I would like it to.