On 13 September the Committee on Climate Change, an independent committee of leading academic experts and peers, published a letter it has sent to Energy Secretary Ed Davey expressing concern over a recent statement on the continued use of gas as a primary energy source beyond 2030.
The letter, which is 'CC'd' to, among other Government leaders, the Chancellor George Osborne, states: "Extensive use of unabated gas-fired capacity (ie without carbon capture and storage technology (CCS)) in 2030 and beyond would be incompatible with meeting legislated carbon budgets."
The letter goes on to say: "Unabated gas-fired generation could therefore not form the basis for Government policy, given the need under the Climate Change Act to set policies to meet carbon budgets and the 2050 target."
While recognising the importance of gas during any transition to low-carbon, the committee said the "perceived ambivalence" of the Government as to whether it is pursuing a gas-based or low-carbon energy policy could be sending a 'weakened' signal to investors.
"As a result," the letter says, "the cases for low-carbon business development, capital allocation, innovation and supply chain investment are undermined, damaging prospects for required low-carbon investments. This has been made clear to us in our extensive discussions with the energy and supply chain companies who it is hoped will fund the very significant investments needed in power generation over the next two decades, and who have suggested to us that the sector investment climate is currently very poor."
The committee recommends setting a "clear carbon objective" into secondary legislation, as recommended by the Select Committee on Energy and Climate Change.
"This would provide more confidence about the direction of travel for the power system through clarifying and getting agreement on specific implications and underpinning assumptions of carbon budgets, and guiding EMR implementation through the Delivery Plan, therefore bringing forward low-carbon investments required to meet carbon budgets at least cost to the consumers."
Mr Davey's response was that: ""We are absolutely committed to meeting our statutory carbon budgets. That is why we are pushing through ambitious reforms to overhaul existing old fossil fuel power plants, replacing them with new low-carbon forms of power generation.
"We have always said this will include gas fired plant, which is quick to build and flexible. After 2030 we expect that gas will increasingly be used only as back up, or fitted with Carbon Capture and Storage technology. But, alongside up-scaling of renewables, nuclear new build, and eventually with carbon capture and storage, gas has an important role to play in the transition to a low carbon grid."