2. New Climate Review

The Governments new Climate Policy, initially expected ‘by the end of the year,’ seems to have been delayed until ‘early 2006’. But leaks suggested that, although the government now recognised that the existing emission reduction programme would not be sufficient, the new review was not going to be very radical- apart, possibly, from backing carbon capture and storage and more offshore wind.  Instead the aim seemed to be mainly to fudge and tinker at the margins with regulatory structures. This led to some bitter reactions from environmental groups, for example on the idea that the government might try, as the Guardian put it, to ‘buy its way out’ of its manifesto commitment to cut emissions ‘by purchasing credits from abroad under the Kyoto protocol’s carbon trading scheme and allowing them to count towards the UK’s target to reduce carbon dioxide pollution by 20% by 2010’.  There were also some wry comments about the idea of policing the 70 mph speed limit on motorways more strictly. But at least that would send a powerful message that responding to Climate Change was important.  Most of the other options being considered, as leaked in the media (see below), seemed to belie talk of ‘emergency responses’, but some did seem worthwhile, especially the demand-side measures.

Policy option (carbon saving in million tonnes carbon)

Frontrunners

Emerging

Difficult

Next: The Treasury’s review of the economic costs of climate change and of responding to it, called for by the Chancellor of the Exchequer last year, is being carried out by Sir Nick Stern in conjunction with the DTI and DEFRA. The government has indicated that it sees this major review as helping them to ‘understand more comprehensively the nature of the economic challenges we face and how they can be met, in the UK and globally’. The review will report to the Prime Minister and Chancellor by autumn 2006 and will interact with the new energy review-see next page. See: http://www.sternreview.org.uk.