Five reasons why MPs should back the 'green jobs' amendment

The amendment would provide the certainty for which the energy industry is calling and keep the UK on track to meet its legally binding carbon targets at the lowest cost.

The government’s Energy Bill receives its third reading in the Commons today. MPs will vote on whether a ‘green jobs’ amendment - proposed by Conservative select committee chair Tim Yeo and Labour backbencher Barry Gardiner - should be added to the bill. This would introduce a target to cut the carbon intensity of Britain’s power sector by 2030 to 50g CO2 / KWh to keep the UK on track to achieve its legally binding targets at the lowest cost and provide the certainty for which the energy industry is calling.

Here are five facts about the green jobs amendment.

1. The green jobs amendment will save every household £958 to £1,724 under ‘central’ assumptions made by the Committee on Climate Change. This could rise to £3,831 if gas and carbon prices were higher than expected.

The recent CCC report ‘Next steps on Electricity Market Reform’ says:

“These measures [ie the 50g target and related policies] would support investment in a portfolio of low-carbon technologies through the 2020s, which the report indicates would result in cost savings of £25-45 billion, in present value terms under central case assumptions about gas and carbon prices, rising to over £100 billion with high gas and carbon prices.” (p.9)

Since there were 26.4m households in the UK in 2011 according to the Census, this means that each household would save £958 to £1,724. With high gas and carbon prices this could rise to £3,831.

2. The green jobs amendment will provide certainty for the renewable energy sector resulting in an increase in offshore wind capacity by 2030 from 16GW in DECC’s central scenario to 26GW in the CCC’s central scenario – up 63%.

DECC’s ‘2012 emissions and energy projections’ set out a central scenario for total capacity in every year to 2030 on the basis of carbon intensity falling to 100g CO2 / KWh. A freedom of information request revealed that this included 16 GW of total offshore wind capacity by 2030. CCC’s report (Figure 1.6b) showed that a 50g CO2 / KWh target would deliver 26 GW of offshore wind in three of their four scenarios.

3. The green jobs amendment would result in between 20,000 and 48,000 domestic jobs in the offshore wind industry.

IPPR is currently undertaking a research project examining the supply chain for offshore wind. Our literature review examined 10 scenarios in four different studies by the Carbon Trust, Bain and company, Cambridge Econometrics and the CEBR of the job creating potential of the offshore wind sector. On average, these studies showed that above 20 GW of wind capacity there are around 2,000 jobs per GW as the domestic supply chain expands. The additional 10 GW of capacity would therefore generate at least 20,000 jobs.

In their ambitious renewables scenario, the CCC (Figure 1.6b) predicts that a 50g CO2 / KWh target would deliver 40 GW of offshore wind capacity. This would create 24 GW of additional capacity above DECC’s central scenario of 16 GW, and generate at least 48,000 new jobs.

4. The amendment has overwhelming support from business, charities and trade associations.

Over 50 companies, charities and trade associations including Cisco, the Church of Scotland, the National Farmers Union and the TUC have reissued their call for MPs to back the target. The list of organisations that have spoken out in favour of the target numbers well over 100. Meanwhile businessman Lord Alan Sugar wrote in yesterday’s Financial Times that the green jobs amendment “could provide greater stability to the supply chain, cheaper prices for the consumer and much needed jobs to the country.”

5. If they vote against the green jobs amendment, the Lib Dems will be breaking another of their own promises.

At the 2012 Lib Dem conference, Danny Alexander proposed a motion favouring a 2030 decarbonisation target. Alexander kicked off the conference by criticising Tory attacks on green policies in a front-page interview with the Guardian. The vote was passed ‘overwhelmingly’ and a number of Lib Dem MPs posed for photos showing they backed green jobs.

The Lib Dems have already broken promises on VAT and tuition fees this Parliament. Will they let green jobs become a third?

The turbine sails of the Scout Moor Wind Farm in the South Pennines. Photograph: Getty Images.

Will Straw was Director of Britain Stronger In Europe, the cross-party campaign to keep Britain in the European Union. 

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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