EEF supported the introduction of a long-term framework for climate change policy, stating that it is vital for business planning and investment that a greater degree of certainty exists over the future level of constraints on carbon emissions and the pace with which they are introduced. We therefore welcome the government’s intention to establish statutory emission reduction targets for both 2020 and 2050.
EEF reminded the government that reducing domestic carbon emissions by 60% will require a concerted effort across society and a major transformation of the economy and not just industry. We stated that pursued unilaterally, such an approach could have serious adverse economic impacts on carbon intensive industries. As a consequence, the 2050 target will be more economically viable within the context of an economy-wide and multilateral effort to mitigate climate change.
EEF did welcome the proposed ‘review clauses’. However, we believe that legislators should consider whether the circumstances under which they can be activated are sufficient to provide the proposed framework with sufficient credibility. In particular, EEF supported the case for an economic ‘trigger’ – i.e. a provision within the Bill to review, and where necessary amend, the targets where there is significant change in the economics of climate change.
The government proposal to set up an independent body to oversee the carbon budget was welcomed. Our response stated that it is vital that the independent Committee obtain an depth understanding of industrial processes and economics, as industry experts will be able to provide crucial information on abatement potential of industrial sectors that will be contributing significantly to the reduction targets.
A full copy of EEF's response can be downloaded from this page.