The Liberal Democrats have long been seen as the greenest of the biggest three political parties. Now in government, the party is facing tough decisions with huge implications both for our country’s efforts to reduce carbon emissions and for wider protection of the natural world.
During his time in office Lib Dem Climate Secretary Chris Huhne won a couple of significant battles with Cabinet colleagues. Most notably, despite opposition from the Chancellor, he won the backing of David Cameron to put into law tough new carbon targets for the 2020s that were recommended by their independent advisers the Committee on Climate Change. He also helped to achieve the establishment of a new Green Investment Bank to support development of strong new clean industries in the UK.
When Huhne stepped down this month, the influential political commentator Andrew Rawnsley rightly wrote that “he brought a passion for the green agenda combined with the intellect and the clout to increase the influence of a department often previously dismissed as a bit of a Whitehall lightweight.”
But in 2012, the Lib Dems face their biggest environmental tests yet. In the first of two posts looking at what these are, I’ll focus on the home front.
Bring down energy bills and reduce energy use.
Millions of us are feeling the economic squeeze, not least through astronomical energy bills. The energy regulator OFGEM has highlighted the main reason for this rise in bills: oil and gas prices. As OFGEM put it themselves, “Wholesale energy costs have continued to rise, particularly for gas, where for example the price of this winter’s gas is around 40% higher than last winter’s. This increase has been driven by global rises in oil and gas prices. This has contributed significantly to recent increases in customers’ bills.” The Committee on Climate Change examined the reason for the rise in bills. They found, “The Committee concludes that recent bill increases are primarily due to increased wholesale gas costs.”
With this in mind it’s crazy that some academics like Dieter Helm and big energy companies like British Gas are pushing for an approach that would see the UK become even more reliant upon burning gas. New Lib Dem Energy Secretary Ed Davey must instead ensure his new energy law massively reduces our energy consumption, reduces our reliance upon gas, and so helps insulate consumers from volatile fossil fuel prices. A strong emphasis on energy efficiency, including mechanisms to support large-scale energy efficiency measures in businesses, can bring down bills whilst simultaneously bringing down pollution.
We need a carbon-free power sector by 2030
The new energy law that Ed Davey will oversee this year will have a huge influence over how much heat and electricity is generated and from what sort of power stations. Since around 85% of the UK’s emissions come from energy generation and use, Ed Davey’s choice of energy policies will in turn largely determine what our national carbon footprint will be for decades to come. The energy companies are lobbying to build lots of new gas-fired power stations. This could drive up emissions, and could drive up bills too. The government’s independent advisers, the Committee on Climate Change, say that the best and most affordable way to cut emissions in line with the Climate Change Act is to make our power generation sector almost carbon-free by 2030. Ed Davey needs to stand up to the big energy companies and write the CCC’s recommendations into his new energy law. We need a carbon-free power sector by 2030, underpinned by strict Emission Performance Standards for all the new fossil fuel power stations, so that we don’t become over reliant upon expensive and polluting gas, and our carbon targets aren’t put beyond reach.
Stand up to George Osborne to protect wildlife and countryside protection rules
George Osborne believes that the laws which protect the crown jewels of the British countryside including our most cherished wildlife sites like the New Forest and the Norfolk Broads are a burden to business. Reports suggest that the Chancellor and some of his Cabinet colleagues want a radical reduction in the protection afforded to Britain’s natural environment. They have already announced a review of how we implement European laws to protect our most endangered species and habitats, and introduced planning reforms which will make it easier for developers to concrete over the countryside. Nick Clegg and all of the Lib Dems need to stand up for wildlife and our precious countryside and stop this from happening.
In my next post, I’ll look at the key environmental decisions for the Lib Dems on the international stage.
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6 Comments
Surely the two objectives are contradictory? Renewable energy is much more expensive than coal and gas. Therefore meeting objective two is likely to be in contradication to objective one.
It is of course true to say that “The energy companies are lobbying to build lots of new gas-fired power stations. This could drive up emissions, and could drive up bills too”. Gas prices might go up – but they might go down. Prices in the US have fallen significantly in the last couple of years as supplies of shale gas come on stream – they may happen in Europe and in any event as the US starts exporting it surplus there will be downward pressure on prices (although noone can predict where they will end up)
If the article is correct the fossil fuels are rising in price while renewables will drop the more we invest in them.
By this logic, the more we invest in renewables, the more we save in the long run.
For fear of oversimplifying (but as it’s a point that never gets across to some no matter how many times it’s pointed out), energy efficiency does not reduce energy consumption in a society; WS Jevons worked this out 150 years ago, you’d think we’d have cottoned on by now…
Investing in energy at the moment is a high risk business. Gas prices may indeed go up or down (if down probably only because of fracking which is not an unmixed blessing to put it mildly!!!) and renewables will probably get marginally cheaper in real terms. But those aren’t the only options.
For sunnier climates solar is close to grid parity; it will never be an economic option here – we are too far north and too cloudy but it will make a big difference globally.
Then there is nuclear. There are the pressurised water reactors which we have just committed to buy at vast expanse from France but these are only the latest iteration in the ‘Model T’ range of reactors. Other types exist that are intrinsically safer and which generate less waste. And then, further out in time there are all sorts of exotic concepts in the labs.
All in all there is a high chance that electricity will cost less in 20 or 30 years time than it does now. That is what has happened following previous energy crises when existing technologies/fuels started to run short.
Jevons had it right – efficiency always brings prices down, allowing new applications of the technology to be cost-effective.
However, in a rising-price market, which peak oil makes inevitable, efficiency measures can keep prices less extreme, and so reduce the damage that volatile energy prices will do to our economy. Efficiency has a part to play in giving us more time to switch to renewables, but it should not be seen as a way to reduce emissions on its own.
Interesting that all the comments have been on the energy choices and prices. I applaud what Joss says about planning law. While some restrictions in national parks are about appearance of human artefacts rather than nature conservation, measures that make it easier to extinguish populations of scarce species or destroy valuable habitats must be opposed so we don’t wreck the future for a mirage of a short-term gain.