Britain's renewable energy plans need support to meet carbon targets

New rules to stimulate more investment in renewable energy and nuclear power coupled with a major drive to encourage a switch to electric cars are among key recommendations to reduce carbon emissions in a report.

By Roland GribbenPublished: 12:30PM BST 12 Oct 2009

Lord Turner has recommended that the nuclear industry must play a bigger role in reducing carbon emissions
The report, which is from the Committee on Climate change, headed by Lord Turner, chairman of the Financial Services Authority, calls for fresh policy approaches to achieve a step change in cutting emissions and meeting carbon targets and warns that reductions achieved during the recession are providing misleading signals.
Last year emissions are estimated to have been cut by around 2pc compared with an average 0.5pc in the four year period to 2007. The committee says cuts of 2pc-3pc a year will be needed in future to meet carbon budgets.

The committee questions whether plans to reduce power station emissions by 50pc by 2020 will be achieved without a stimulus. The current programme is heavily dependant on creating a wind power industry with capacity of 30,000 megawatts, four clean coal demonstration and two or possibly three nuclear power plants.
But the committee doubts whether the expansion, coupled with the EU carbon trading scheme will deliver the expected results and says it could lead to heavier dependence on imported gas.
Lord Turner’s group is calling on the government to carry out a review of alternative arrangements to reduce investor risks and ensure delivery of investment in low carbon technologies. It says bluntly that new approaches will be needed to support investment in low carbon generation.
Investment in low carbon generation is risky in the current market the report acknowledges and suggests consideration should be given to strengthening carbon prices and providing more certainly on the price to be paid for low carbon generation.
Progress on carbon capture and storage demonstration plans is vital to assess whether the clean coal technology can make a viable contribution to reduce emissions the committee says in reinforcing its earlier recommendation that conventional coal generation has no role in power generation beyond the early 2020s.
The report says the combination of markets and carbon trading schemes is not best designed to deliver the reductions needed in electricity emissions.
Other policy changes may be needed to achieve another target, the committee feels. Improving energy efficiency in homes by 35pc by 2020 may need a shift from the existing strategy based on electricity companies meeting obligations through specific measures such as the supply of energy efficient light bulbs to a 'whole house’ approach.
The committee is encouraged by electric car initiatives announced by manufacturers but to reach a target of having 1.7m electrically powered vehicles on the road by 2020 to help achieve a 30pc cut in transport emissions the report says the government will have to support new car purchases to drive initial volumes and help manufacturers achieve economies of scale as well as supporting a battery charging infrastructure.
Lord Turner said: “With the carbon budgets in place we need to achieve a step change in the pace of emissions reductions. What we have proposed is achievable and affordable but action needs to be taken now if we are to make our contribution to climate change.”