Written - UK Low Carbon Transition Plan – National Strategy for Climate and Energy

The UK Government today published the UK Low Carbon Transition Plan – National Strategy for Climate and Energy.

The UK Low Carbon Transition Plan, reflects action across each UK country, and sets out how, together, we will work to ensure that the UK meets its carbon budgets and its target of a 34% reduction in greenhouse gas emissions by 2020 compared to 1990.  It also sets out how the UK energy security will be enhanced and sets out plans to establish a system to share out responsibility for delivering the carbon budgets across UK government Departments.

The Low Carbon Transition Plan is supported by a number of other major policy documents including the UK Low Carbon Industrial Strategy, which sets out plans to support a low carbon industrial transition, the UK Renewable Energy Strategy which sets out how the UK’s target of getting 15% of all energy (electricity, heat and transport) from renewables by 2020 will be achieved and the UK Low Carbon Transport Plan which sets out how to reduce carbon emissions from domestic transport by up to 14% over the next decade.

The need to decarbonise electricity generation was a key recommendation from the Committee on Climate Change’s report Building a Low Carbon Economy – the UK’s Contribution to Tackling Climate Change and is reflected in the proposals announced today.  These include:

• Confirmation of the final shortlist of the schemes for the Severn Tidal Power feasibility study.  These include three barrages (including the Lavernock Point to Bream Down barrage) and two lagoons.  Three innovative schemes have also won funding to support their development.
• Funding to support the development of ‘smart grid’ and publishing a policy road map next spring
• DECC to take direct responsibility from Ofgem for establishing a new grid access regime within 12 months
• A consultation on changes to the existing Renewables Obligation, such as extending the life-time of the Renewables Obligation to at least 2037 and the introduction of a 20 year limit on support
• A number of proposals to support renewable deployment including

The Assembly Government will be working closely with the UK Government on taking these and other proposals forward to ensure that Wales is at the forefront of gaining benefits from this transformation of the electricity generation sector.  The Renewable Energy Route Map, published for consultation in 2008, set out our vision for making the most of Wales’ exceptional renewable energy resources and I will be publishing a Marine Energy Statement tomorrow that sets out in more detail our plans to make the of the opportunities afforded by marine energy resources around Wales.

Improvements in domestic energy efficiency and greater use of microgeneration will be key to reducing emissions in the residential sector.  This is reflected in our Climate Change Strategy – Programme of Action Consultation and many of the proposals outlined in the UK Low Carbon Transition Plan will help support the Assembly Government’s ambitions in this area.

New proposals relating to domestic energy efficiency in the UK Low Carbon Transition Plan include:

• ‘Pay as you save’ pilots to help people make their whole house greener by using the savings made on energy bills to repay the upfront costs
• A consultation on the design and rate for Feed in Tariffs ready for them to be in place by April 2010.  A similar scheme for renewable heat will follow in April 2011
• Extending the current Carbon Emission Reduction Target (CERT) energy efficiency programme by a year to 2012 and an uplift of 20% to increase the total help under the scheme to £3.2 billion

There are also a number of proposals that will help address the impact of rising energy prices, particularly on the most vulnerable, and will support our action to tackle fuel poverty in Wales, these include:

• Bringing forward legislation to put energy company social programmes on a statutory footing when the current voluntary agreement with energy suppliers ends in March 2011
• Strengthening Ofgem’s powers to protect the consumer

Supporting people, communities and organisations in taking action on climate change is a key theme of our Climate Change Strategy – Programme of Action Consultation and we have set out a number of proposals to support community and individual action and we will be working with the UK Government on linking our plans to their proposals for a new personal carbon incentive scheme for individuals and a community challenge programme to test out new models carbon reduction.

Our Green Jobs Strategy made clear the Assembly Government’s commitment to supporting businesses in Wales to be at the forefront of a low carbon transition, building on the vision and proposals set out in the Climate Change Strategy – Programme of Action.  

A number of the proposals outlined in the UK Low Carbon Transition Plan will help support the Assembly Government’s ambitions in this area including:

• Funding to advance the offshore wind industry in the UK
• Funding to support developing the UK as a global centre for wave and tidal energy
• Funding to explore areas of potential “hot rocks” to be used for geothermal energy
• Support for low carbon technology and manufacturing

Today the Deputy First Minister and Minister for Economy and Transport published the National Transport Plan for consultation.  It makes clear the Assembly Government’s commitment to developing a low carbon transport system in Wales and builds on the vision and proposals set out in the Climate Change Strategy – Programme of Action Consultation.

The UK Low Carbon Transition Plan contains relevant transport proposals including:

• An update on plans for consumer incentives for electric and plug-in hybrid cars
• A new steering group for the freight and logistics industry to find effective ways of measuring, reporting and reducing emissions across the logistics sector
• Commitment for the UK Government to work in Europe to develop a robust mechanism for regulating CO2 from new vans

Agriculture, land management and waste management are also important areas for action in Wales and proposals to reduce emissions in those areas are set out in Climate Change Strategy – Programme of Action Consultation.  The Rural Affairs Minister has asked the Climate Change Commission Land Use Sub Group to advise on opportunities to address climate change in the agriculture and the rural economy more broadly.  The Waste Strategy consultation provides further detail of our proposed action to minimise waste and promote efficiency resource use. The proposals in the UK Low Carbon Transition Plan in both these areas largely relate to England but we will be working with UK Government colleagues as work in this area develops.

Climate change is a critical challenge and one that requires us all to work together to meet it.  As an Assembly Government we will be working closely with the UK Government to meet the UK’s ambitious targets for emission reduction and renewable energy generation and to ensure that all the proposals outlined today bring maximum benefits to people, communities and businesses in Wales.