Tony Lloyd
Forum Brief: Energy white paper
The government has published an energy white paper which focuses on renewable sources of power and efficiency and put off a decision to build new nuclear power stations.
In a speech in London, Tony Blair announced that he had written to other EU leaders asking them to back Britain's target of reducing carbon dioxide emissions.
Liberal Democrat trade and industry spokesman responds below to comments on the subject from ePolitix.com Forum members.
Vincent Cable, Liberal Democrat trade and industry spokesman, told ePolitix.com: "My thanks to Forum members for such detailed responses. They underline the issue's complexity and, with this range of respondents, the need for multi-strand responses - encouraging investment, preserving competitiveness, alive to the different aspects of urban and rural economies. I hope to follow up with many of you individually."
Below are the responses of other forum members to the White Paper
Forum Response: Energy Saving Trust
Philip Sellwood, chief executive of the Energy Saving Trust told ePolitix.com: “EST welcomes the general principles of the Energy White Paper, which puts energy efficiency at the heart of energy policy. However, the White Paper will fail to deliver on its policies unless clear targets are put in place and the funding shortfall addressed.
“Investing in advice that shows consumers why being energy efficient is cheap and easy is a key delivery mechanism and EST welcomes the White Paper's proposed expansion of the role of its supported network of 52 local energy efficiency advice centres, which provide information and advice for consumers. However, the White Paper has failed to set out how it intends to fund the expansion of these advice centres.
"We are pleased that further incentives for energy efficiency will be introduced in this year's budget. We hope that VAT will be cut on energy efficiency products whilst tax is increased on the most inefficient products.
“EST welcomes the strengthened energy efficiency requirements for Buildings Regulations - the most significant measure that can be used to reduce long-term CO2 emissions, and cut energy bills.
"The plans to outlaw non-condensing boilers by 2005 is a huge challenge for the heating industry, meaning manufacturers will need to switch to production of condensing boilers in the next two years. EST would strongly recommend that boiler manufacturers top up their training on installing and maintaining boilers right now - and will work with the industry to ensure installers have the adequate training and skills.
“Importantly the White Paper endorses the 60 per cent CO2 reduction target. However, EST is disappointed that the White Paper fails to adopt the PIU's call for a target of a 20 per cent improvement in household energy efficiency by 2010 and a further 20 per cent by 2020."
Our full response is available via our ePolitix Microsite, click on ‘news'.
Forum Response: National Environment Research Council
A spokeswoman for NERC told ePolitix.com: "The Natural Environment Research Council welcomes the emphasis on the environment in yesterday's White Paper on energy. The Research Councils' agreed programme on sustainable energy, which NERC is co-ordinating*, will make a significant contribution to the UK's understanding of energy issues. Its outcomes will help underpin the UK's new policies on energy.
"Other areas of NERC's existing research such as cataloguing sources of oil, gas and coal, looking at deep disposal of CO2 and major programmes on climate change and its impacts, will continue to contribute to decision-making on energy.
*Other Research Councils participating in the programme are the Engineering and Physical Sciences Research Council, the Economic and Social Research Council, the Biotechnology and Biological Sciences Research Council and the Central Laboratory of the Research Councils."
Forum Response: Institute of Directors
Geraint Day, environmental policy adviser at the IoD, said: “Security of energy supply is crucial for the UK. We do not want a 'California' here.
“New methods of energy conversion will no doubt develop over time, in response to market pressures, but it is not always helpful to set over ambitious targets on renewables.
"The UK should be well-placed technologically here, and we urge the government to adapt its policies in other areas (including taxation) to encourage entrepreneurialism and the scientific and technological developments that will be needed to address this challenge.
“Nuclear power should be judged on its own merits, after taking into account all points of view.
“Additionally, we would support more emphasis being placed on individual consumers when it comes to energy conservation, greenhouse gases and energy taxation.
“The IoD is actively involved with advising on energy conservation and energy efficiency issues to directors around the country.
"The long term energy issues are naturally quite remote for most businesses. Securing reliable sources of energy is obviously the prime consideration. However, it is not always easy to see what action is best in the short term either. So more detail would certainly be welcome."
Forum Response: Woodland Trust
Dr James Cooper of the Woodland Trust said: "There were some very welcome words from the government yesterday but the absence of longer term targets serves to somewhat undermine them and give the impression of hesitancy rather than conviction.
"The target for 20 per cent of energy from renewable sources by 2020 has now become an aspiration. Mr Blair stated that the government's ambition is to double the amount of energy supplied by renewables. It is a pity that this ambition has not been accompanied by more challenging targets that would indicate real commitment.
"We fully support the government's highlighting of the threat posed by climate change but the threat is one of such significance that it needs to be backed up by more than aspiration."
Forum Response: UK Offshore Operators Association
James May, director general of UKOOA, said: “Diversity of supply, at competitive prices, is fundamental to achieving security of supply.
“The UK's remaining oil and gas reserves are estimated to be in the region of 24-32 billion barrels of oil equivalent. This is a valuable national resource, which if recovered to the maximum, will enhance that diversity.
"The government has a responsibility to create the right regulatory, fiscal and business climate which will encourage the industry to continue investing in the UK continental shelf against a long-term backdrop of fields becoming smaller and declining production.”
“Investment in energy transmission networks is a critical aspect of security of supply and, therefore, energy policy overall. The upstream oil and gas industry has a good record in delivering such investment.
"However, the regulatory emphasis onshore has, in recent years, been concentrated on economic efficiency, and needs to be moved more towards securing appropriate new investment in the National Transmission System, with a margin of spare capacity to provide both flexibility and resilience.
“As UKOOA has stated several times before ‘The risks to the UK's economy of under-investment in the National Transmission System far outweighs the costs of some over-investment'.”
Forum Response: Country Land and Business Association
Oliver Harwood, head of rural economy for the CLA, said: "There has been much talk of wind and nuclear, but the CLA believes that given the right policy framework, the rural economy can play a significant role in the reduction of greenhouse gases and other adverse environmental impacts, and ensure we have a vibrant living and working countryside for generations to come.
"It is simply insufficient to offer aspirations and warm words. If we are to address climate change, all forms of renewable energy are required, and every sector must make a contribution. Wind power alone cannot be the answer for renewable electricity. It does not make sense to rely on reducing traffic for energy savings in the transport sector. Replacement for fossil fuels is urgently required in the heat sector.
"In all these areas, agriculture and forestry can make a significant contribution. Energy crops remove carbon from the atmosphere, provide, habitat for wildlife, increase rural employment opportunities, and add to fuel security. There are huge opportunities for dealing with green waste that is currently sent to landfill, for dealing with animal slurries in an environmentally friendly fashion, and for reducing diffuse pollution, thereby increasing water quality.
"The potential is enormous. Many food crops are in surplus, and dumping them on third world countries is unsustainable. The land can produce a significant proportion of our energy needs. For example, it has been estimated that using the latest technologies, 25 per cent of our land could produce all the nation's transport fuels."
Forum Response: Countryside Alliance
A spokesman for the Countryside Alliance told ePolitix.com: "The government's targets of 10 per cent renewable energy seem unlikely to be met if current trends continue. Wind power alone, which is one of the main sources of renewable energy promoted by government, cannot fully produce this for a number of reasons - it is not a constant source of energy, and its expansion is set to be slow due to objections from local communities as well as, in a number of cases, the Ministry of Defence.
"Greater investment and promotion are needed in other areas of renewable energy production to ensure that there is sufficient supply to achieve the targets set. The Energy White Paper would appear to fall short in these areas."
Forum Response: Construction Products Association
Rita Singh, policy development executive at the Construction Products Association told ePolitix.com: "The government's energy white paper aims to set UK energy policy for the next 20 to 50 years. It has therefore set long-term targets and ambitions to be met through innovation, efficiency and liberalised energy markets, among others.
"We are pleased to note that government has recognised the benefits of improving energy efficiency in the domestic and industrial sector as an important step towards sustainable energy management.
"In achieving two of the goals of the white paper - environment and energy efficiency - the Association is keen to work with government to develop the implementation plan by the end of 2003 and set clear measurable strategies to meet these objectives.
"We will, in particular, press government for the development of strict targets on energy efficiency within the Sustainable Communities Plan. This is one of the most important steps that can be taken to ensure government lives up to its target of setting an example in the industry by adopting efficiency standards in buildings and procurement.
"On the eradication of fuel poverty by 2016 to 2018 it is disappointing that there are no firm commitments, except for reviewing existing schemes and the energy efficiency commitment plans. The Association is particularly keen to see the reduction in VAT for energy efficient products. This will greatly encourage households to improve the efficiency of their homes, which will not only reduce their fuel bills but greatly reduce CO2 emissions, of which households contribute 40 per cent in the UK.
"Implementation of the government's commitment to a ‘sellers pack' in the forthcoming Housing Bill is also a welcome move. This will raise awareness in the domestic sector of the efficiency of their homes and encourage buyers to consider energy profile as a USP.
"On the review of the Climate Change Levy in light of the future EU Emissions Trading Scheme, as briefly referred to in the white paper in ‘considering linkages between taxes and permit schemes', considerable effort needs to be put towards reducing the burden on manufacturers in case of double-regulation.
"The Association will work closely with ODPM to undertake the revision of Building Regulations to bring it into effect by 2005. The regulations are expected to take account of the EU directive on Energy Performance of Buildings. This will encourage the upgrading of existing housing stocks which the Association has pushed for number of years."
Forum Response: Institution of Electrical Engineers
Dr Alf Roberts, chief executive for IEE, told ePolitix.com: “The IEE is concerned that proposals within the energy white paper to tackle greenhouse gas emissions are heavily focussed on electricity generation, even though transport is the main contributor to CO2 emissions. The challenge cannot be met simply by tackling the emissions from the power industry or indeed by the UK on its own.
“Regarding the UK energy mix, the IEE's view remains unchanged in that the government should not be supporting one type of technology above others. The choice of technology should be left to the private sector and all of the technologies should have the opportunity to compete on a level playing field, which does require the internalising of environmental costs.
“However, while supporting the development and application of economic instruments for the management and valuation of climate change objectives, the IEE is concerned that these should not be introduced at the expense of the UK's international competitiveness.
“We should not be committing to any policy that could damage the UK's relative economic competitiveness. We're not in favour of taking unilateral action and we should only take the lead in this if the worst offenders in terms of greenhouse gas emissions are also committed to the policy.
“However, there are a number of proposals in the white paper that the IEE sees as being a step in the right direction. We welcome the fact that it recognises there are significant issues regarding embedded generation. We also welcome the recognition for the need for research into non-carbon energy.
“Given the potential seriousness of the climate change problem, the government needs to develop a contingency as to how we will engineer the solutions to the problems of increases in temperature.”
Forum Response: Ofgem
Callum McCarthy, chief executive for Ofgem, said: "We welcome the clear focus which the white paper gives to carbon reduction. Ofgem is committed to working with government to meet the challenge of moving towards a low carbon economy while at all times ensuring secure energy supplies and at least cost to consumers, whose interests are Ofgem's primary concern.
"One of the biggest challenges to realising the potential of green power is to develop electricity networks capable of transporting that power to homes and businesses. This is a time of unparalleled change to future demands for investment in electricity networks and the way in which they are operated. Ofgem is already working actively with industry to ensure that Britain's electricity networks develop efficiently and are fit for the task ahead.
"Ofgem also strongly supports the white paper's commitment to the development of Emissions Trading. This is one of the most efficient and effective ways of putting a value on the environmental cost of emissions and providing strong incentives to reduce these. Ofgem will work with government to ensure the successful introduction of an Emissions Trading scheme in the energy sector."
