| Margaret has already covered a lot
of ground and I know you’ve got a lot to get through, so I will keep my
remarks brief.
I am delighted to share this platform with
Margaret, James and John. And to have the chance to talk about this vital
issue.
Every day, we are reminded of the threat of
climate change.
Last week - new research showing arctic ice at its
lowest level ever.
Last month – the horrific flood of New Orleans,
bringing a vivid picture of what rising sea levels could do to our cities.
Last year – one of the hottest years ever.
Twenty years ago, those people who warned against
global warming were considered to be eccentric – the sort of people who
ate lentils and listened to the Incredible String Band.
For every person who said climate change was a
threat, there were a thousand who said it was scaremongering. For every
company “going green”, a hundred whose mantra was “business as usual”.
When Margaret Thatcher’s Chief Scientific Adviser warned her of the threat
from global warming, she is alleged to have said, “Are you seriously
telling me I should worry about the weather?”
The Rubiks Cube of national opinion has been
turned over several times since then. And all of the squares are now
falling into place.
As we can see today, there is a growing consensus. Between the
environmental lobby, public opinion and the scientific community - and
now, after Gleneagles - the world community.
Gleneagles was groundbreaking.
It was the first time ever that the leading
nations of the world acknowledged: that climate change is real; that human
activity is contributing to it; and that there was a need for urgent
action to tackle it.
Gleneagles also laid the first vital steps towards
a post-Kyoto world.
It was a real achievement of our G8 Presidency
that we should nurture and sustain.
Tackling climate change has always been a priority
for this Government.
In Opposition, we committed to reduce carbon
emissions.
When we came to power in 1997, Margaret Beckett –
one of my predecessors as Secretary of State for Trade and Industry – and
Gordon Brown introduced the climate change levy.
The levy achieved the trick of having a neutral
effect on revenue and a major effect on carbon emissions.
Since then, we’ve had the Performance and
Innovation Unit report.
And the 2003 Energy White Paper - which set the
ambitious target of 20% renewable energy in the UK by 2020.
We’ve also pushed for emissions trading in Europe
- making carbon reduction not just an environmental goal, but a business
imperative.
As a result of these changes, we’re in a strong
position.
We have a broad mix of energy.
Our greenhouse gas emissions are reducing.
And, last year, we produced a record level of
energy from renewables. This year will see the largest ever increase in
renewable generation in the UK.
But we face serious challenges.
Oil prices are at a record high with North Sea
production declining.
We are in the transition from being a net exporter
of gas to being a net importer.
Nuclear reactors supply a fifth of our energy. But
they will all be decommissioned by 2035 with most out of service ten years
earlier.
We need to deal with these challenges.
That is why the Prime Minister announced last week
that we will come forward with proposals on energy policy next year.
Whilst we need to decide whether to commit to
nuclear new build, this will be in the context of examining our entire
energy mix.
Not just based on what energy markets look like
today, but what they will look like in twenty, thirty and forty years’
time.
In particular, we need to look at all of the new
technologies available to us.
At the exciting developments in carbon
sequestration.
At emerging renewable technologies such as
offshore, wind, wave and tidal power.
We need to have a hard-headed look at the latest
nuclear technology to see if the issues around cost and waste make it a
viable and acceptable form of generation compared to other options.
We must make sure our environmental focus does not
put business at a competitive disadvantage.
We know we can only lead successfully by working
with the business community.
Which is why events like today and organisations
like the UK Business Council for Sustainable Energy are so valuable.
What business says time and again to me is that
they need certainty. Policy frameworks that are clear, coherent and
committed.
Today’s message to business is blunt. “Business as
usual” is the wrong approach.
The world is becoming carbon conscious and
business needs to be carbon conscious too.
Many of our best businesses are already well ahead
of the game.
Like Cinergy – which James will talk about in a
minute. And Centrica.
Or BT - which has almost halved its C02 emissions
in the last ten years.
And GE – in America – which aims to boost its
energy efficiency by 30% by 2012.
These are just a few examples.
But there are many other businesses investing in
smarter energies and finding new efficiencies; harnessing new technologies
and introducing new initiatives like paperless planning and online
offices.
Many companies are also taking forward potentially
transformational technologies such as carbon capture and storage.
Today I’m delighted to announce the establishment
of the Carbon Capture & Storage Association. The group brings together
eleven companies - several of whom are here today - all looking to
eliminate greenhouse gas emissions from fossil fuel usage.
Their work will complement the forty million pound
Carbon Abatement Technology Strategy that we announced in June.
Just before I close – we all know that this
problem will not be solved over the next couple of days. There is no pouch
of fairy dust to sprinkle over these complex issues.
We need to work at this together over the long
term.
I’m delighted to see the momentum within the
business community, the way that you are seizing the carbon agenda.
The challenge for us in Government is to harness
this enthusiasm from the business community, to develop an energy policy
for the business community.
Securing safe and sustainable energy for everyone.
This is the major political challenge of our age.
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