Fourth Carbon Budget

Michael Meacher Excerpts

Tuesday 17th May 2011 Commons Chamber

[Chris Huhne]

I can assure my hon. Friend that we in the ministerial team are absolutely committed to low-cost, affordable electricity. The last assessment the Department made—at the time of the annual energy statement, and we will make another at the next such statement—is that the overall impact of our policies, including energy saving and the effects that my hon. Friend mentioned, will add 1% to the cost of household energy bills in 2020. As it happens, that was posited on a world oil price of $80 a barrel. As he knows, the oil price has moved substantially beyond that. With oil prices and associated gas prices higher than $100 a barrel, our estimate is that our policies will save money for the British household. I am not saying that British households will not face increases in the cost of gas and electricity in future; what I am saying is that the policy mix of energy saving and low-carbon electricity generation will give a better deal to British households than would reliance on imports of variable fossil fuels from volatile parts of the world.

[Mr Michael Meacher (Oldham West and Royton) (Lab)]

Does the Secretary of State accept that purchasing carbon offsets abroad as a means of meeting carbon emission reduction targets in the UK is deeply flawed on grounds of additionality, leakage and uncertain duration and that, in any case, they do not achieve the ostensible objective of decarbonising Britain? What precise proportion of the 29% cut in carbon emissions planned between now and 2027 do the Government intend or expect to be achieved via carbon offsets?

[Chris Huhne]

I can assure the right hon. Gentleman that we intend to try to meet all the reductions we have set out from our domestic activity. That is the clear intention of setting out the fourth carbon budget as we have. However, given the enormous uncertainties of making projections so far in advance, it would not be sensible for us to rule out the flexibility afforded by carbon trading at the relevant time.