The long-awaited White Paper on energy, Meeting the Energy Challenge, published in May this year, confirmed the Government’s commitment to nuclear power and its intention for the private sector to deliver nuclear new build projects. Two fundamental factors resonate in the Government’s international and domestic energy strategy: the need to tackle climate change and the need to ensure security of supply. Indeed, the White Paper is consistent that the UK faces two long-term energy challenges: tackling climate change by reducing carbon dioxide emissions (both within the UK and abroad); and ensuring secure, clean and affordable energy as the UK becomes increasingly dependent on imported fuel.
The Government’s strategy is underpinned by the principle that “independently regulated, competitive energy markets are the most cost-effective and efficient way of delivering [its] objectives”. The key elements of the White Paper strategy are:
- establish an international framework to tackle climate change;
- provide legally binding carbon targets for the whole UK economy, progressively reducing emissions;
- make further progress in achieving fully competitive and transparent international markets;
- encourage more energy saving through better information, incentives and regulation;
- provide more support for low carbon technologies; and
- ensure the right conditions for investment.
