In order to make progress, if the noble Baroness has a question, perhaps I could take it after I finish. To provide further clarity out to 2030, the Government have committed to issuing guidance to National Grid on an indicative range of decarbonisation scenarios for the power sector to 2030, consistent with the least-cost pathway to 2050. Just last month the Government set out an ambitious position for 2030 at a European level, to urge Europe to set a binding emissions reductions target of 50% by 2030 as part of the ambitious global deal—and 40% even if we move unilaterally. Finally on this point, Amendment 4 has an unintended consequence, in that it would prevent targets being set for years beyond 2030.
This brings me to my second point: whether the Bill should provide a power or a duty to set a decarbonisation target range. Of course there is an attraction in saying in the Bill that the Secretary of State must set a target by a certain date, as both the noble Lord, Lord Oxburgh, and my noble friend Lord Stephen propose. However, my honourable friend, the Member for Wealden, Charles Hendry, pointed out in an article on this issue that it does nothing for any Government’s credibility to set out a target before they are in a position to say how they will achieve it. He stated:
“The challenge with a decarbonisation target set now for 2030 is that we cannot yet know how it can be met—or indeed, if it can be met”.
That is the argument that a number of noble Lords have raised today.
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It is essential that a decision on the long-term trajectory of the electricity sector is taken when considering the pathway of the whole economy towards 2050.
As we set out in the carbon plan, it is likely that as well as decarbonising electricity, meeting our 2050 target will require a significant amount of heat and transport to be electrified. This impacts not only on demand for electricity but on when that electricity will be needed. The right time to consider this will be in 2016, when we are due to set out the level of our economy-wide fifth carbon budget, covering the period between 2028 and 2032. Setting a target in 2016 would be 14 years before it is due to be met. This is even longer than is required under the Climate Change Act 2008 in respect of carbon budgets, which are set 12 and a half years ahead.
It is very important to recognise that the operation of the UK’s power sector is intrinsically bound up with Europe. It falls within the scope of the EU Emissions Trading Scheme, which the noble Baroness raised, which sets a cap on EU-wide emissions within its scope. The European Commission has published proposals on what framework the EU as a whole should set for tackling climate change between now and 2030. While we have already announced our intention to argue for an ambitious approach in Europe, it is too early to tell what will emerge. Both the level of ambition and the nature of any accompanying EU regulations or directives will be important considerations when looking at UK targets for 2030.
Moving on to the Committee on Climate Change and Amendments 11 and 14, I fully agree with the noble Lord, Lord Oxburgh, that there should be a role for the committee, and our proposed approach takes this into account. By waiting until 2016 to make a decision on setting a target, the Government can take on board the advice provided by the committee on the level of the fifth carbon budget, which covers the 2030 period, as part of its existing responsibilities under the Climate Change Act. While I agree that it is important for the Secretary of State to take into account the committee’s advice when setting or amending the level of any target range—just as he does now when setting carbon budgets—the committee’s role under the Climate Change Act is perfectly sufficient to advise on a decarbonisation target range.
I just want to touch on a couple of other issues before I conclude. One is of discretion, which the noble Baroness, Lady Worthington, raised. In relation to decarbonisation there is no question about the purpose of the power. It is a power to set a decarbonisation range for the power sector and that is clear and it is in the Bill.
The noble Lord, Lord Cameron, and the noble Baroness, Lady Worthington, also mentioned investment certainty and supply chains. We have worked with industry from the start to produce three energy industrial strategies. The nuclear and the oil and gas strategies have been published. The offshore wind strategy will be published in mid-July. These will ensure that supply chains can develop and serve growth in the energy sector. This Government have worked closely to ensure that we are reflective of what industry has asked, and to ensure that consumers are at the heart of our decision-making. Ultimately they are the ones who will be picking up the price if we get it wrong, which is why our measures are considered.
My noble friend Lady Browning also asked if the target could be set earlier. If a future Government wish to set a target range earlier, they could choose to set the fifth carbon budget sooner. The Government’s view is that this is not necessary or desirable. The government position has always been clear: we do not believe that a target range should be set before the fifth carbon budget, which covers the corresponding period and which has been set in law. That will be in 2016.
To conclude, I hope that I have demonstrated that the Government have been listening to investors and have been taking the practical steps needed to decarbonise the economy, while ensuring security of supply at least cost to the consumer. I hope, on that basis, that the noble Lord will withdraw the amendment.