In a speech on Thursday, to business leaders in central London, Dr Neil Bentley, CBI Deputy Director-General, set out the business view on the UK energy policy debate.
Speaking alongside Ed Davey MP, Secretary of State for the Department of Energy and Climate Change, Dr Bentley made clear that swift Government action is necessary to boost investor confidence in all energy technologies, if we are to tackle the UK’s energy challenges and reap the economic benefits.
Dr Neil Bentley, CBI Deputy Director-General, said: "Energy investment is as much about growth as it is about secure, low-carbon power.
"Giving energy policy speeches can sometimes feel like being stuck in a time warp. While we support the Government's direction of travel, the speed of progress is pretty frustrating.
"The Energy Bill is a once-in-a-generation opportunity, to boost our economy as well as head off our energy challenges. To grab that opportunity before it is too late, we need less politics, more policy."
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On the role of gas, Dr Bentley said: "All the evidence points towards a balanced and diverse energy mix as the most cost effective pathway to decarbonisation. This includes new nuclear, new renewables, new carbon capture and storage and new gas.
"The Government is right to encourage safe shale gas extraction as it makes sense to maximise the amount of energy we can produce at home at a reasonable cost. But gas alone is'’t the answer.
"Most modelling shows future European gas prices rising, with or without an influx of unconventional gas, and so from both a cost and a security perspective, a mixed portfolio of generating technologies looks favourable.
"So let's stop arguing over the energy mix and focus on attracting investment to create jobs and growth as quickly as possible."
On energy investment and the urgent need to agree on a long-term stable policy framework in Europe and at home, he said: "There is no business case for putting billions of pounds into these long-lived assets if investors cannot see a long-term, stable policy framework. Right now, the policy future looks too much like a blank canvas.
"We mustn't forget that an effective framework begins at the European level. Far too little emphasis is being placed on securing the future of the EU Emissions Trading Scheme, and much of the policy complexity at home is being constructed to compensate for the lack of a European vision beyond 2020.
"The CBI has been saying for a long time that we need an EU emissions goal for 2030. Next month, we will publish our proposals for the future of the Emissions Trading Scheme, which will address the possibility of short-term changes and, crucially, how the system can be improved to better support energy-intensive industries."
(CD)
