Energy White Paper
Introduction
Energy is essential in almost every aspect of our lives and for the success of our economy. We face two long-term energy challenges:
- Tackling climate change by reducing carbon dioxide emissions both within the UK and abroad; and
- Ensuring secure, clean and affordable energy as we become increasingly dependent on imported fuel.
As we set out in The Energy Challenge published in 2006, the context in which we are seeking to meet these challenges is evolving, in particular:
- The growing evidence of the impact of climate change and wider international recognition that there needs to be a concerted global effort to cut greenhouse gas emissions, especially carbon dioxide;
- Rising fossil fuel prices and slower than expected liberalisation of EU energy markets at a time when the UK is increasingly relying on imported energy;
- Heightened awareness of the risks arising from the concentration of the world’s remaining oil and gas reserves in fewer regions around the world, namely the Middle East and North Africa, and Russia and Central Asia;
- In the UK, companies will need to make substantial new investment in power stations, the electricity grid, and gas infrastructure.
This White Paper sets out the Government’s international and domestic energy strategy to respond to these changing circumstances, address the long-term energy challenges we face and deliver our four energy policy goals. It sets out how we are implementing the measures in the Energy Review Report in 2006, as well as those announced since, including in the Pre-Budget Report in 2006 and the Budget in 2007.