The Energy Bill, which is due to receive its Third Reading in the House of Commons tomorrow, enables a massive decarbonisation of the power sector by 2030, with the emissions intensity of the power sector rapidly reduced, and a new generation of clean power plants to be built, ensuring the UK can cut its greenhouse gas emissions by 50% by 2030.
All the elements of the Bill which include the introduction of a Capacity Market, long-term Contracts for Difference, and an Emissions Performance Standard to prevent use of unabated coal, have been designed to keep the lights on, reduce emissions and unlock private sector investment in a low-carbon energy mix of renewables, new nuclear, CCS and gas.
As a result, the UK will be firmly on track to meet its legislated Carbon Budgets and the 2050 target to reduce emissions of all greenhouse gases by 80%. Following feedback from the Energy and Climate Change Select Committee, the Government has amended the Bill, adding a clause that will enable a 2030 decarbonisation target for the power sector in 2016, once advice has been provided by the Committee on Climate Change on the level of the 5th Carbon Budget (which covers 2030, and will be provided in 2016).
Secretary of State, Edward Davey said:
Everything in this Bill is based on the premise that we need to significantly decarbonise our power sector in order to meet climate targets.
“We secured a landmark agreement across the Coalition to treble support for low-carbon investment to £7.6 billion in 2020, and we are reforming the market to provide the certainty required to attract investment in renewables, new nuclear, CCS and demand reduction.
“We have listened to views and added a clause to enable us to set a decarbonisation target for the power sector in 2016. No political party had this issue in their manifesto, and this will be a world first, an issue that this Coalition Government has addressed head on.”
Read the full press notice on the DECC website