Fourth Carbon Budget

John Redwood Excerpts

Tuesday 17th May 2011 Commons Chamber

[Chris Huhne]

I am grateful to the right hon. Lady for her question. She has followed this area for many years and has enormous expertise in it. However, if she is going to claim the credit for meeting the current carbon budget on the back of the previous Government’s record, she should be aware that an important contributor to the 28% reduction in our carbon emissions since 1990 has been the depth of the recession. I am glad that she is at last owning up to the impact that those on the Opposition Benches had on our economy. On the Ernst and Young report, we are determined to set a framework that provides certainty and clarity for investors, and we will do so particularly with the electricity market reform that we shall be announcing later.

[Mr John Redwood (Wokingham) (Con)]

How exactly does the Secretary of State propose to ensure that the glass and ceramics, and steel and chemicals industries, which are high energy users, are not damaged by the taxes and regulations that he is proposing today?

[Chris Huhne]

I am grateful to the right hon. Gentleman for his question. The energy-intensive work group that we have set up between my Department and the Department for Business, Innovation and Skills will come forward with a set of measures by the end of the year. That is a clear commitment. As he knows, there are a number of ways to help energy-intensive industries, including the free allocation of units under the EU emissions trading scheme and encouraging a move towards the use of biomass and biofuels, for example. We are looking at all those measures to ensure that we can balance the concerns of the energy-intensive industries as well as make substantial progress towards the low-carbon economy.