(Reuters)
David Cameron said that his party would make changes to the Climate Change Levy
Britain’s nuclear energy industry received a boost yesterday when David Cameron pledged that a Conservative government would raise a carbon tax on coal and gas-fired power stations.
Vincent de Rivaz, chief executive of EDF Energy, the French state-controlled utility that wants to build four new reactors in Britain, welcomed the plans as underpinning investment. “We have said for several years [that this] is a vital practical step towards decarbonising the UK economy in an affordable way and ensuring security of energy supplies. We are pleased to see recognition of the urgency of this action.”
Keith Parker, chief executive of the Nuclear Industry Association, said: “It is most reassuring to see that both the Government and the official Opposition are keen to deliver stable continuity in the policy framework around nuclear energy.”
Mr Cameron was speaking at the launch of his party’s long-awaited energy policy, Rebuilding Security, which is designed to spur £200 billion of investment in nuclear and renewable energy while delivering steep cuts in emissions of 34 per cent by 2020.
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Anti-nuclear campaigners reacted angrily, saying that the plans were a sop to the industry. John Sauven, executive director of Greenpeace UK, said: “David Cameron should focus on supporting the clean technologies that could create massive investment opportunities and generate thousands of new jobs for this country, rather than wooing the failing French nuclear industry. If the UK meets its energy reduction and renewable energy targets, we won’t need nuclear power stations to keep the lights on.”
The remarks come a few days after Mr de Rivaz circulated an e-mail to all prospective MPs, seeking their backing for the industry ahead of the election.
Mr Cameron said that the carbon tax would be introduced via reforms to the Climate Change Levy, a tax on electricity production that is imposed on all forms of energy except renewables.
The reforms in effect would place a floor under the price of carbon dioxide on the European emissions trading scheme. At €13 per tonne, this is considered to be too low to support the vast investment in offshore wind parks, nuclear reactors and other infrastructure that is required for Britain to meet its 34 per cent emission-reduction target.
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