New targets to cut carbon emissions expected to cost

Hydrogen cars, better insulated homes and solar panels will be recommended as part of costly plans being brought forward by the Government to cut carbon emissions, despite the recession.

By Louise Gray, Environment Correspondent Last Updated: 9:46PM GMT 29 Nov 2008

Under plans to tackle climate change targets, businesses will be expected to invest in updating equipment, improving insulation and replacing transport fleets.
And individuals will also be expected to make big lifestyle changes, for example by improving energy efficiency in the home, turning off appliances and paying more for products or services that pollute the environment.
Next week, Lord Turner will set out how the Government is expected to cut greenhouse gases by 80 per cent by 2050 on 1990 levels.
He will set a series of five year "carbon budgets" with advice on how each sector will have to contribute.
The power sector, which produces 30 per cent of the UK's emissions, will be expected to make the bulk of the cuts. This will mean a massive investment in renewables such as wind farms and "clean" energy, such as nuclear, that could ultimately be passed onto the customer.
It will also cast doubt on plans to build a new generation of coal-fired power stations in the UK including the controversial Kingsnorth power station in Kent.
Transport will take a blow with car companies bringing forward a new generation of electric cars, plug-in hybrids and hydrogen vehicles whilst phasing out the cheaper polluting models.
As chairman of the independent Climate Change Committee, Lord Turner will set legally binding targets for the amount of greenhouse gases the UK can produce by 2012, 2017 and 2022. He said the cost of cutting carbon emissions will be a saving in the long term, as energy efficiency is improved and the catastrophic consequences of climate change will be avoided.
"It's very important to avoid misuse of the temporary downturn for lessening policies," he warned.
Businesses concerned about rising costs and job losses have already asked the Government to concentrate on cheaper measures such as improving energy efficiency rather than spending on renewables.
Matthew Farrow, head of environment at the CBI, said it was crucial to make the right decisions in the economic downturn.
"The economic difficulties make it even more important that we use the most cost effective methods to cut emissions," he warned.
Tom Delay, chief executive of the Carbon Trust, admitted there will be a cost over the next 10 to 15 years but it will be recouped in savings on energy efficiency and ultimately lead to a more sustainable economic model.
"In the medium term there will be a need to invest in new technologies, products and services that will be low carbon. Individuals will be expected to pay for that. But that is the normal way of developing growth."
Lord Turner has signalled that the aviation industry will be given leeway, while biofuels are developed, sparking speculation the Government will be able to go ahead with airport expansion. But this does mean there will have to be steeper cuts elsewhere.
He will also set out the proportion of cuts that can be made though 'emissions trading' abroad, for example by buying carbon "offsets" from rainforest countries.
But Andy Atkins, executive director of Friends of the Earth, said the UK should take responsibility for emissions.
"The committee should put pressure on the Government to abandon climate-wrecking plans to expand UK airports and not to build coal-fired power stations without carbon capture and storage from the outset," he said.
"Investing in green energy and cutting energy waste can create tens of thousands of new jobs, reduce our dependency on the yo-yoing cost of fossil fuels and put Britain at the forefront of a green industrial revolution."