25 May 2007
Whitehall departments and other large public sector employers will be subject to a compulsory carbon emissions trading scheme under government plans to meet Britain's future energy needs.
Trade and Industry Secretary Alistair Darling published his long-delayed energy white paper on May 23. It targets a rise to 15% in energy supplies from renewable sources. But, controversially, it also paves the way for a new generation of nuclear power plants to replace the current stock, which will become largely defunct by 2023.
The white paper was delayed last winter following a legal challenge from environmental lobby group Greenpeace, but Darling this week reiterated that it was his 'preliminary view' that new nuclear reactors should be constructed. The final decision will be taken when consultation ends in October.
Prime Minister Tony Blair this week placed climate change at the heart of the nuclear discussion, saying: 'If we want to have secure energy supplies and reduce CO2 emissions, we have got to put nuclear power on the agenda.'
The focus on tackling global warming – Darling wants to reduce carbon emissions by 23–33 million tonnes a year by 2020 – also means that up to 5,000 large employers must join an emissions trading scheme: the first involving public bodies. Under this Carbon Reduction Commitment, organisations can trade for higher emissions levels with similar-sized but more energy-efficient bodies as long as overall emissions fall.
A senior Whitehall source told Public Finance that 'departments would be expected to lead the way in… more efficient energy use.'
Environment Secretary David Miliband confirmed: 'We're giving the go-ahead to the world's first mandatory scheme aimed at large commercial and public sector organisations.'
PFmay2007
