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Energy newsHungry for news?Energy related news from the CBI on our climate change website can be found hereCBI Comments on Ofgem report on UK Energy SecurityThe CBI today (3rd February 2010) commented on Project Discovery, Ofgem’s report into the UK’s energy security. John Cridland, CBI Deputy Director-General, said: “This report serves as a stark warning that existing policy will not deliver the balanced energy mix needed to provide security for the UK, help cut carbon emissions, and maintain competitive prices. “Britain needs new nuclear plants, clean coal, gas generation, wind and other renewable sources to be developed quickly, as well as more gas storage facilities. Having a balanced range of energy sources will help avoid over-reliance on too few sources, and help ensure that energy prices are affordable for consumers and businesses alike. “Achieving all of this is going to require massive private-sector investment. In light of this, future policy must take into account the benefits of a competitive market and also the need to give some certainty to investors who will be required to pay for new energy sources." In July 2009 the CBI published its blueprint for a secure and sustainable energy future, based on McKinsey & Company analysis. A copy of 'Decision Time: Driving the UK towards a sustainable energy future' is available here. CBI calls for global carbon market ahead of Copenhagen talksThe CBI says emissions trading schemes should be adopted by other countries to help cut global carbon emissions and tackle climate change.The United Nations’ Climate Change Conference in Copenhagen met on Monday 7th December, the UK’s leading business group argues a scheme, which caps emissions and allows firms to buy permits for carbon, such as the EU Emissions Trading Scheme, should form the basis for a global carbon market. 
CBI comment on IPC’s first energy projectsCommenting on the Infrastructure Planning Commission's announcement that it is considering applications for major new energy projects, including five wind farms and two nuclear power stations Earlier this week, the CBI report, Forging a Nuclear Renaissance: Making new nuclear build a reality (PDF 482KB), said that at least six new nuclear plants would need to be built by 2030.Speaking at the CBI's Energy Conference in London, Dr Neil Bentley, CBI director of business environment, said: "Around £150bn of private sector investment will be needed to transform our energy system into one that is low-carbon, secure and sustainable. But firms will only invest if they feel confident about the planning regime and the direction of government policy. "It is encouraging that the IPC is hitting the ground running and is already considering planning applications for major energy projects. "Now we want to see the government delivering a strong commitment to building at least six new nuclear plants in next month’s national planning statements, and it should also agree to support four clean-coal demonstration plants." Nuclear vital in move to low-carbon economyNearly a dozen nuclear reactors, based at 6-10 new plants will be needed if the UK's energy system is to move to a low-carbon economy model. Read more on this story. Download: Forging a nuclear renaissance: Making new nuclear a reality (PDF 484KB)Blueprint for secure and sustainable energyWe are calling for a significant shift in the direction of UK energy policy. The current approach is making energy security harder to achieve and jeopardising our ability to meet climate change targets. In this report – Decision time (PDF, 5.5 MB) – we believe 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 we want 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.The future of coalNew coal-fired power stations which can be retro-fitted with carbon capture and storage (CCS) technology should be given permission to replace retiring coal-powered stations, says the CBI.CBI deputy director-general John Cridland said: "We should replace retiring coal-fired power stations with limited numbers of new coal-fired stations because carbon capture and storage technology will mean that we can still meet carbon targets while improving our energy security." The CBI's position is set out in a new policy paper, The future of coal: securing electricity supply and clean coal technology. UK renewable energy target "not pragmatic"Responding to publication of a consultation on how the UK will meet the EU renewable energy target, John Cridland said climate change is a priority for business and consumers and the expansion of renewables will help the UK renewable energy industry become a world leader. But the EU renewable target is neither a pragmatic or cost-effective way to meet our carbon targets. The government's £6bn a year estimate of the target's cost will fall on business and household energy consumers.Click here to read the CBI's response to the UK government's renewable energy strategy consultation. (PDF 668KB) Nuclear announcement 'the right decision'Commenting on the government announcements on nuclear power and the Energy White Paper, CBI director-general Richard Lambert said: "Today's announcement is the right decision for the UK. After much consultation, the government has reached the right conclusion about nuclear’s role in meeting the twin challenges of climate change and energy security."
Major new CBI climate change reportBritish businesses are committed to doing what it takes to tackle climate change but the UK effort will only succeed if it becomes an urgent, shared national priority for companies, consumers and the government, a groundbreaking new report from the CBI shows. Eighteen chairmen and chief executives from every area of British business, led by BT chief executive Ben Verwaayen, have spent ten months assessing the challenge of climate change and how to tackle it. The UK's carbon reduction targets for 2020 are likely to be missed but its 2050 goals are achievable if a greater sense of urgency is now adopted.In Climate change: everyone's business, taskforce members pledge to adapt their businesses for the new low-carbon world – including a promise to develop new products and services to empower households to halve their emissions by 2020, and a commitment to work with their two million employees to achieve major cuts in their emissions at work and at home. See www.cbi.org.uk/climatereport.
Queen's Speech: proposals welcomedReacting to legislative proposals announced in the Queen's Speech, CBI deputy director-general John Cridland said: "The Queen's Speech contained a number of measures of material interest to business which we welcome. The Energy Bill is urgently needed to respond to the joint challenge of energy security and climate change. By implementing the recent Energy White Paper, the bill will help put in place the regulatory framework for renewables, nuclear and carbon capture and storage, all of which are likely to be important in meeting the UK's future energy needs."
EU/ETS phase 3As the Commission prepares its draft directive to extend the EU Emissions Trading Scheme beyond 2012, the CBI is lobbying the UK government and the EU for an approach which will deliver environmental benefits without undermining competitiveness. We are emphasising the need for allocation methodologies to differentiate between sectors, with free allocation based on benchmarking a possible option for sectors exposed to international competition. We also swant a balance between the Commission acting as a robust ‘policeman’ to ensure a rigorous overall carbon cap, while still allowing an element of discretion at member state level when there are legitimate national factors to take into account.CBI submits three key responsesOur response to the government’s nuclear consultation reiterated the CBI view that nuclear should be free to compete on its low-carbon merits in the energy markets with other technologies such as renewables, gas and clean coal. Our response to Defra’s revised proposals for the Carbon Reduction Commitment (a UK-only carbon trading scheme for the commercial and public sectors), emphasised the need for a workable, pragmatic approach to what could be a highly complex scheme. Our submission to the Parliamentary Environmental Audit Committee’s inquiry into the future of Climate Change Agrreements (CCAs) and the Climate Change Levy (CCL), emphasised the carbon reductions which CCAs have delivered, and the need to address overlaps and duplication between policy measures (in the Pre-Budget Report the Chancellor announced that CCAs will continue through to 2017). Read the responses.EU unbundling welcomedCommenting on the decision by the European Commission to complete the 'unbundling' of the European energy market, the CBI said: "The Commission is right to prioritise market liberalisation. Doing nothing is not an option. As the UK has become a net gas importer, higher prices caused by flaws in the EU markets have cost UK gas consumers over £1bn in some winters."
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