Climate Change Committee demand "step change" in low-carbon strategy

The independent Committee on Climate Change (CCC) will today release its second annual report on progress towards a low-carbon economy, predicting the UK will comply with its first-five year carbon budget, but only due to emission cuts delivered as a result of the recession.

The influential committee will reiterate its view that a "step change" in climate change policy is required if the UK is to remain within its legally binding carbon budgets and deliver emission reductions of between 34 and 42 per cent by 2020.

The report will argue that the UK can still exceed its most ambitious emission targets, but only if it acts urgently to accelerate the roll out of renewable energy technologies, improve building energy efficiency and reduce reliance on fossil fuels.

It is expected to set out a host of policy recommendations, many of which are already part of the coalition's programme for government, including proposals for energy market reform, a floor price for carbon emissions and increased support for carbon capture and storage technologies.

Energy and climate change secretary Chris Huhne welcomed the new report and vowed to deliver the step change in emission reductions recommended by the committee. "We mustn't rely on economic recession to cut emissions," he said. " There has to be an enduring shift to low carbon, driving growth in new technologies, and it must be locked into the fabric of our economy in good times and bad."

He added that the government was working on a host of measures designed to deliver this shift, including its Green Deal energy efficiency programme, plans for a Green Investment Bank and work to cut central government emissions by 10 per cent within a year.

The government has said further details on many of its green policies will be released in the autumn following its Spending Review, but green business groups urged it to accelerate its low-carbon agenda in the wake of the committee's recommendations.

"The Committee on Climate Change is correct – our first carbon budget has not been achieved by design," said Joan McNaughton, senior vice-president of power and environmental policy at Alstom Power, in a statement released by the Corporate Leaders Group on Climate Change. "It's been a result of the recession and as the economy picks up, emissions will go up again. The new government must act now to stop that from happening."

His comments were echoed by Vincent de Rivaz, chief executive of EDF Energy, who similarly called on the government to step up the pace of its green plans. "We agree with the Committee on Climate Change that urgent action is needed now to encourage investment in all forms of low-carbon power generation," he said. "As the Committee on Climate Change says, it is crucial the government drives forward its plans to develop policy to address climate change."

Environmental groups warned that without urgent reforms to climate change policy the UK would fall well short of its emissions targets. "The Committee on Climate Change makes it clear that climate and energy policies are not up to the job," said Keith Allott, head of climate change at WWF-UK. "There's too much incremental tinkering and not enough ambition, although the good news is that we can still exceed out emission targets with sensible and cost-effective policies. "