Thousands of jobs and billions of pounds of investment are at risk unless the Government beefs up its commitment to green energy, ministers have been warned. Six global power companies have told the Government that it risks handing France and Germany a crucial advantage by failing to set a UK target for cutting emissions from electricity generation.
Many companies have already put investment plans on hold and the lack of a target would “seriously undermine” future green projects, they said.
The warning was delivered in a blunt letter to several Cabinet ministers. It sets the scene for a Commons’ showdown in which a looming Tory and Liberal Democrat rebellion could embarrass the Government.
The companies behind the warning include Alstom UK, the infrastructure and energy company, and Mitsubishi Power Systems. The others are Areva, Doosan, Gamesa and Vestas. Together they employ 12,500 people in the UK.
At issue is the proposal for a 2030 target for power generators to cut their carbon emissions. This is distinct from the legally binding 2050 target for emissions from the whole economy.
George Osborne blocked Lib Dem plans for a 2030 decarbonisation target, refusing to include it in the Energy Bill at present before the Commons.