Mark Kenber on UK's Autumn Statement: It misses point, we must decarbonize our economy
- 05 December 2012
LONDON: Today the UK Chancellor of the Exchequer, George Osborne announced the Autumn Statement 2012, which outlines the Government’s plans for the economy based on forecasts from the Office for Budget Responsibility.
In the Statement, the Chancellor announced the Gas Generation Strategy, which aims to set out the expected role for gas in the coming years.
The Statement included the following:
- The Energy Bill, published last month, offers certainty to investors to bring in £110 billion of investment and meet the UK’s energy needs.
- 26 gigawatts of new gas capacity is expected and could be required by 2030 on current carbon budgets. If the fourth carbon budget is revised upwards and emissions reductions more gradual, up to 37 gigwatts of new plant could be needed.
- Support for low carbon electricity investment via the Levy Control Framework up to 2020 will be capped at up to £7.6 billion per year in 2020-21.
- The Government will establish an Office for Unconventional Gas. This will offer a single point of contact for investors and smiplify the regulatory process.
- The Government will also consult on the tax regime for shale gas.
Mark Kenber, CEO, The Climate Group commented: "The only role gas should play in the UK’s energy policy is to facilitate a mid-term transition to a decarbonized energy sector. Instead of that, the Chancellor today placed gas at the very center of our future energy-mix.
"It misses the central point, namely the urgent need to decarbonize our economy and does little to support the UK’s energy sector to be globally competitive in the fast-growing international clean energy market."