Conservatives want carbon reform
19 March 2010
Just weeks ahead of a general election the UK's opposition party has released its energy manifesto, promising support for nuclear power and reformed carbon regulation.
Entitled 'Rebuilding Security', a primary concern of the green paper's proposals are to avoid reliance on imported gas. Reserves in the North Sea supplied all domestic need in 2000, but imports could represent 70% of supply by 2018 as North Sea production declines.
As "Britain's most significant source of low-carbon electricity," the Conservatives pledge to continue the ruling Labour Party's facilitation of new nuclear power plants. They would retain the same promises that "there will be no public underwriting of construction cost overruns" and a "fair allocation" of waste management costs.
Echoing what industry commentators have said increasingly loudly as investment decisions approach, the Conservatives noted that "a credible and sustainable price for carbon is vital." Europe's current Emissions Trading Scheme suffers from "such price volatility and market uncertainty that it... has made long-term investments more risky."
After complaining that the current Climate Change Levy (CCL) is focused on electricity generation regardless of carbon intensity, the Conservatives said, "It is appropriate to find common ground between UK parties for establishing a price for carbon that is reliable in the long term." The party's proposal is to turn the CCL "into a rebateable carbon levy that would act as a floor price for carbon in the energy sector."
The idea of a carbon floor price words was strongly welcomed by EDF Energy, which is planning to build four large reactors, and the Nuclear Industry Association applauded moves for a "stable policy framework around nuclear energy."
The Labour government is expected to announce suggestions of its own to reform incentives for low-carbon generation alongside the annual Budget next week.
While the UK's two largest political parties are broadly in line on nuclear power, the Liberal Democrats remain firmly against it and their reaction to the Conservative green paper focused entirely on the nuclear issue.
There is no clear favourite to gain an overall majority in the election, expected in about six weeks, and the Liberal Democrats may find themselves negotiating an alliance with one of the main parties.
Conservatives would like a minister to have final sign-off on major infrastructure projects like nuclear reactors, and one risk for the industry is that a Liberal politician could gain this power.
Researched and written
by World Nuclear News