The Government today made an announcement about the levy control framework and the draft Energy Bill.
Lord Deben, Chairman of the Committee on Climate Change, responded by saying:
“The agreement on the levy control framework is very positive. This should be sufficient to support investments in renewables required to meet the 2020 EU target and carbon budgets, together with demonstration of CCS and investment in nuclear new build. We are disappointed that a carbon intensity target will not be set until the next Parliament. This leaves a high degree of uncertainty for investors and does not address widespread investor concerns raised in recent months; it could adversely impact on supply chain investment and development of projects to come on line after 2020.
“It is essential now that delivery of the Electricity Market Reform proceeds on the basis that this is aimed at achieving early decarbonisation of the power sector, which is the economically sensible path in a carbon and resource constrained world.”