CBI responds to government on energy security

9 Aug 2010

Existing policy risks undermining energy security and move to low-carbon economy

The CBI is calling for a significant shift in the direction of UK energy policy, warning the current approach is making energy security harder to achieve and jeopardising our ability to meet climate change targets.

In a new report  called Decision Time, the CBI warns that current policy is incentivising investments in wind power which will result in too little investment in other forms of low-carbon energy, such as nuclear and clean coal. 

Instead the CBI wants the government to pursue policies that will deliver a more balanced energy mix that includes wind and other renewables, nuclear, gas, and clean coal. This will bolster energy security and help reduce carbon emissions more cost-effectively in tougher economic times. 

John Cridland, CBI Deputy-Director General, said: 

“Large chunks of our energy infrastructure urgently need replacing, and we have tough climate change targets to meet. However, the Government’s disjointed approach is deterring the private sector investment needed to get our energy system up to scratch, bolster security and cut emissions. 

“While we have generous subsidies for wind power, we urgently need the national planning statements needed to build new nuclear plants. If we carry on like this we will end up putting too many of our energy eggs in one basket. But by moving government policy in a different direction we can achieve a good balance of wind, nuclear, gas and clean coal. 

“With firms putting the finishing touches to their future investment plans, we need to act now if we are to achieve an energy system that is low-carbon, secure and sustainable.”

You can read the report here.