The Energy Bill, which is due to receive its third reading in the House of Commons today, will enable a massive decarbonisation of the power sector by 2030. With the emissions intensity of the power sector rapidly reduced, and a new generation of clean power plants to be built, the UK can expect to cut its greenhouse gas emissions by 50% by 2025.
The Energy Bill will have a significant impact on the government's plans for the 2016 zero-carbon housing target.
All the elements of the Bill which include the introduction of a Capacity Market, long-term Contracts for Difference, and an Emissions Performance Standard to prevent use of unabated coal, have been designed to keep the lights on, reduce emissions and unlock private sector investment in a low-carbon energy mix of renewables, new nuclear, CCS and gas.
As a result, the UK will be firmly on track to meet its legislated Carbon Budgets and the 2050 target to reduce emissions of all greenhouse gases by 80%.
Secretary of State, Edward Davey said:
“We secured a landmark agreement across the Coalition to treble support for low-carbon investment to £7.6 billion in 2020, and we are reforming the market to provide the certainty required to attract investment in renewables, new nuclear, CCS and demand reduction."
