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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.

By Will Straw

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)

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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?