The Confederation of British Industry (CBI) has backed Government reluctance to set specific targets for decarbonisation in its Energy Bill.
Ahead of the Energy Bill entering the House of Commons’ report stage and third reading, CBI chief policy director Katja Hall (left) said:
“Debates about the effect of including a target in the Bill should not be allowed to prevent critical policy details being tied down. Vital investment decisions are hanging in the balance.”
Hall said the CBI supported the Climate Change Act and carbon targets and budgets within it and the Energy Bill had deliver appropriate decarbonisation to achieve those targets.
Energy secretary Edward Davey announced his department’s opposition to setting a EU-wide 2030 renewable energy target in a blogpost last month.
In response to calls within the renewable energy sector for such a target, Hall added: “It is clear that investment decisions will stand or fall on the details of the Contracts for Difference, the capacity mechanism, and the levy control framework – not on a carbon intensity target.
“We can’t afford further delays, so it is essential there’s political agreement and the Bill is on the statute book this year.”
Also publishing comments ahead of the report stage of the bill, starting on 3 June, Renewable Energy Association chief executive Gaynor Hartnell said the sector was wary about the “unprecedented degree of intervention in investment decisions” that will see the Government making decisions on which individual projects it wants to progress.
Echoing the comments from the CPI, Hartnell urged expediency in the Electricity Market Reform. She said policy delay was a threat to the growing industry, and clarity was needed to raise the £200bn required to generate enough renewables capacity.
She added that the sectorwants the Renewables Obligation to stay open until 2020 to protect the industry, and that although “an earlier carbon signal would be welcome, a mandatory renewables target for 2030 would be far more effective in reassuring our sector”.