Fourth Carbon Budget

Jessica Morden Excerpts

Tuesday 17th May 2011 Commons Chamber

[Chris Huhne]

I am grateful to my hon. Friend for that question. We have made substantial strides in the direction of securing an agreement and a number of countries in the EU are clearly signed up to the 30% ambition level for 2020. A number of other countries would like to go beyond 20%. The European Commission is the key player and one of the points that it is making—rightly I think—is that if we as a European Union were to deliver on just the energy efficiency commitments that we have already made, we could get to a 25% cut in carbon emissions by 2020 without any additional cost. There is a lot of progress to be made on this agenda and I and my ministerial colleagues are pressing that point at all the meetings we attend in Brussels and elsewhere. I believe that we are making good progress.

[Jessica Morden (Newport East) (Lab)]

One issue for intensive energy users is the cumulative effect of Government policies on their competitiveness. Has the Minister carried out a full impact assessment of the cumulative effect of climate policies and, if not, will he commit to doing so?

[Chris Huhne]

The group that is considering the impact on energy-intensive industries is certainly taking into account all the impacts of policy as well as the other impacts. Obviously, some effects on energy-intensive industry have nothing to do with policy and there are some macro-economic effects, such as the relative competitiveness gained through the improvement in the real exchange rate. We will take account of all those factors when we come to conclusions about the measures necessary to help energy-intensive industries.