
Today the Secretary of State for Energy and Climate Change, Amber Rudd, will give a speech to update us all on the Government’s energy policy. What she will say has been widely trailed and it contains some seriously bad news.
The last six months have seen a relentless and systematic unravelling of the excellent work done by Ed Davey to develop the green economy. The Government is now going one step further to deprioritise decarbonisation as a main goal, in favour of making energy security its number one priority. It does not seem to realise it is possible to deliver on both.
Amber Rudd will say she plans to curb the growth of renewable industries even further, with the logical conclusion that there must be an increase in nuclear and gas to meet energy needs. This means expensive subsidies paid to other countries, rather than investment in renewables in the UK, and also fracking.
The most baffling aspect of the Government’s abandonment of the renewable sector is the fact there is such a strong business case for investing in green industries. We might understand their actions if it was just about environmental concern, which Conservatives have never been strong on, and we know of the power wielded by backbench climate-change deniers and fossil fuel lobbyists. But to ignore the long-term economic case in favour of short-term cash gains is extraordinary. The UK has been a world leader in this sector and continuing to invest and develop these job-creating industries while we have a competitive advantage and while the costs of producing renewable energy are plummeting is simply good economic sense.