Press release

MPs right to criticise Government for undermining green investor confidence

11 October 2011

A new report by the Environmental Audit Committee warning that the Government's proposed review of the fourth carbon budget in 2014 will undermine investor confidence in low-carbon industries has been welcomed today by Friends of the Earth.

The green campaigning charity says MPs are right that the review will create uncertainty for businesses looking to invest in renewable energy and green technologies - just when they need reassurance from the Government that Britain is committed to building a low-carbon economy.

The Committee accused the Government of "playing it safe" on cutting carbon by failing to show "bold and ambitious action".

Friends of the Earth's Executive Director Andy Atkins said:

"This report will make embarrassing reading for David Cameron and his so-called 'greenest Government ever'.

"Stalling over emissions cuts sends completely the wrong message to firms investing in low-carbon industries - jeopardising our chances of tackling climate change and risking disaster for the UK's economic recovery.

"MPs are right to call for targets for councils for cutting local emissions. Big business must also play its full part - and not be given unnecessary special treatment by Ministers.

"Britain could be a world leader in clean energy and green technology, creating hundreds of thousands of exciting new jobs - but the Government must demonstrate its commitment by agreeing to faster emissions cuts and developing a greener energy market, for starters."

ENDS

Notes to editors

1. The Committee:

• Said that the scientific evidence suggests that this is the time for "more not less" effort to tackle climate change - and that the Government's "Carbon Plan" is not up to scratch.
• Slammed the self-proclaimed 'greenest government ever' for its lack of progress in cutting emissions and its refusal to accept all of the recent recommendations of the Committee on Climate Change (CCC). The CCC had recommended tightening the ambition of the 2nd and 3rd carbon budgets, and ruling out the use of carbon offsetting to meet the 2nd budget, to make the 4th budget attainable, but the Government has so far refused.
• Strongly criticised the mixed messages given out by the Government having on the one hand a public mantra on the need for stability and certainty for long-term carbon investors, whilst on the other hand casting uncertainty over the future ambition of the carbon budgets by insisting on a review in 2014.
• Recommended that any measures to help energy intensive industries (EIIs) like ceramics and steel manufacturers should retain the strong incentive to cut emissions. Friends of the Earth thinks this means the Government should rule out exempting EIIs from carbon taxes - and says it should also find evidence of the threat of "carbon leakage" to heavy industry to help contextualise industry lobbying.
• Said that all local authorities should be required to set targets to cut emissions in their local areas, supported by the CCC, and that an annual report to Parliament on councils' emissions reductions should be introduced. Friends of the Earth welcomes this - the charity has been calling for local authorities to play their full role in cutting UK emissions with its Get Serious About CO2 campaign. Friends of the Earth welcomed the recent announcement by the Government that the CCC has been asked to advise councils on cutting carbon, but points out that today's Environmental Audit Committee report goes further by saying that no council should be able to opt out of putting the CCC's advice into action.
• Said that all businesses should have to report on their carbon emissions. Friends of the Earth welcomes this - it would be a big move towards helping UK businesses understand, quantify and reduce their exposure to the significant risks presented by climate change and rising fossil fuel prices.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust