Fourth Carbon Budget

Lord Goldsmith of Richmond Park Excerpts

Tuesday 17th May 2011 Commons Chamber

[Chris Huhne]

I can add very little to what I have already said to the right hon. Member for Oldham West and Royton (Mr Meacher). We are, in fact, dealing with a period that is very far off—well beyond the normal range of economic forecasting—and it is sensible for us to exercise a measure of flexibility in the way in which we achieve our aim. However, I can assure the hon. Lady—as I assured the right hon. Member for Oldham West and Royton—that we intend to meet this budget from our domestic activity. That is absolutely in line with everything that I have said about encouraging low-carbon goods and services.

The hon. Lady should also bear in mind that even the flexibility that is afforded by trading will be limited by the existence or otherwise of far cheaper opportunities to ameliorate the position by mitigating carbon emissions outside the country rather than inside it. I believe that the more we invest in the industries that I have mentioned, and the more “learning by doing” that we do, the greater will be the chance of our meeting our targets entirely from domestic activity, which is what we intend to do.

[Zac Goldsmith (Richmond Park) (Con)]

I strongly welcome the statement. What contribution does the Secretary of State think demand-side measures are likely to make in a reformed electricity market, particularly given the focus on negawatts?

[Chris Huhne]

The concept of negawatts is very important. Let me explain to those who have not followed the debate that it means we should be able to trade into the electricity system savings in energy and not merely electricity generation. That concept is part of the consultation that we are currently considering about electricity market reform, and I believe that it will be a crucial part of our reform proposals. There are several different aspects, but I am sure the hon. Gentleman will not be disappointed when he sees the results.