Oral Answers to Questions

Julian Huppert Excerpts

Thursday 13th December 2012 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

21. Whether it is his policy to include a decarbonisation target in the Energy Bill.

[The Minister of State, Department of Energy and Climate Change (Gregory Barker)]

The coalition Government are absolutely committed to achieving substantial cuts in carbon from our electricity sector by 2030; that is entirely consistent with the targets set out in the Climate Change Act 2008. We have also announced that we will take a power to set a legally binding decarbonisation target for the electricity sector specifically as a Government amendment to the Energy Bill.

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[Gregory Barker]

I am afraid that I could not disagree more. If we look at the people who will be putting billions of pounds into decarbonisation, and if we consider what the industry is now saying, we can see that there is genuine transparency, longevity and certainty as a result of the Energy Bill. I understand the concerns of WWF, but now we have published the Bill the need for additional legislation to give certainty falls away. As I said, we will consider the need for a decarbonisation target as part of setting the fifth carbon budget for 2028 to 2032, which will happen in 2016.

[Dr Huppert]

I agree that certainty is needed for investors, and I hear that from the Cambridge cleantech cluster and others. I very much welcome the proposed power for the Secretary of State to set a target, but would the Minister support the Secretary of State in setting such a target?

[Gregory Barker]

I can assure my hon. Friend that there is a unanimous view among DECC Ministers. We think there is significant merit in a target, but the right time to decide whether we should set one and what it should be will be when we set the fifth carbon budget, which has to be done by June 2016. I reiterate that investor certainty, which was not there before we published the Bill, is now there in spades. I think we can all move forward and look to a future full of investment in a very exciting sector.

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[Mr Davey]

I am grateful for the hon. Gentleman’s support for Ofgem’s role, which is not a view shared by his Front-Bench team. Ofgem and the Financial Services Authority are undertaking investigations to make sure that, if there has been manipulation of the gas markets, it is tackled in the strongest possible way. We will have to await the results of their investigations.

[Dr Julian Huppert (Cambridge) (LD)]

T4. Emissions from international aviation and shipping are not currently included in the UK carbon budgets. The Committee on Climate Change recommends that they should be included, and that has been accepted by the shipping industry and aviation representatives. A decision has to be made by the end of the year. Will the Secretary of State confirm that they will be included? They are emissions, so they should be counted.

[Mr Davey]

I thank my hon. Friend for that question. He is right that we need to take this issue seriously. We intend to lay a parliamentary report announcing our decision before the end of the year, as is required by the Climate Change Act 2008. In making that decision, we are considering carefully the advice provided by the Committee on Climate Change. We are taking careful note of developments in the international policy framework for aviation, in particular in relation to the EU emissions trading scheme and discussions with the International Civil Aviation Organisation. It is important to clarify that the Government have set the first four carbon budgets, which take account of international aviation and emissions.