Energy: Terms of Reference

The Energy policy group will not debate the science of global warming or the scientific case for reducing emissions. Consideration will only be given to the practical and economic limitations to emissions reductions. The group will consider policies which impact on overall energy demand and minimise emissions from the different supply options.

ENERGY FRAMEWORK

An Energy Framework group will be asked to propose a new comprehensive approach to reducing carbon emissions that focuses on market mechanisms but identifies essential non-market spend. It will address the current mismatch of piecemeal subsidies and regulations with an alternative comprehensive and equitable approach that encourages low carbon technologies, sets adequate, achievable targets for emissions reductions and provides a framework for carbon pricing.

The focus will be on reducing carbon rather than energy usage and providing exciting opportunities for UK businesses to benefit from the development and export of new technologies and the associated growth in GDP and employment that this will bring.

The imminent need to replace the existing supply infrastructure and the advent of new generation options mean that a framework for supply choices can be established which could have a significant impact in reducing carbon emissions.

ENERGY SUPPLY

An Energy Supply group will be challenged to assess the relative viability of the various supply options and consider what contribution each could make in the move towards a diversified energy supply and improved energy security. Each option will be assessed using identical parameters, and the necessary framework that would be required to support each option
and remove systemic and institutional barriers to appropriate investment and development identified.

ENERGY DEMAND

An Energy Demand group will focus on ensuring that all sectors can contribute to achieving the challenging targets set by the Energy Framework group, whether small, medium or large commercial enterprise, energy intensive industry, domestic consumer or public sector. Policies will be developed to encourage more efficient industrial plant, machines and appliances that realise substantial savings to users. A framework of incentives, quotas, mandatory codes and fiscal measures will be considered to determine how best to encourage behavioural change and the development and uptake of innovative new products and technologies.

TECHNOLOGY

A technology group will be established to help assess the feasibility and emission effectiveness of established and novel supply and demand technologies. The four groups will operate in an open and transparent manner and will aim to deliver their findings by the end of 2006 although brief discussion papers may be published in the interim. The length of review will ensure sufficient time is given to allow robust analysis and a thorough and open assessment of the facts.

The debate will be all encompassing and contributions will be sought from all interested parties. Please let us have your views.