Government claims that higher cost savings could be achieved if markets are left to their own devices could have risky results
Seven years ago, the EU put forward its energy and carbon strategy for 2020. Three clear intentions were approved: a 20% cut in greenhouse gas emissions, 20% of energy provided from renewables and a 20% increase in energy efficiency. Each country would be obliged to deliver these through a binding commitment.
This is about to change.
For the past few years, the UK’s Greenest Government Ever has been trying to get out of binding targets, most recently stating that energy prices are high because of the binding nature of the targets and that higher cost savings could be achieved if markets are left to their own devices.
For the past few years, the UK’s Greenest Government Ever has been trying to get out of binding targets
So what may happen in the next few years with no binding targets?
Investors may not invest in what will be deemed a risky renewables market.
Equally, investment in energy efficiency measures may not be realised.
The energy trading scheme has also been failing woefully, with the price of carbon in freefall; there are plans to reinvigorate this.
So instead of investing money within the EU to reduce dependence on fossil fuels, the money will go outside the EU. Doesn’t this mean energy bills will go up?
Rick Wheal is a consultant at Arup