The government’s new energy bill will not set a carbon emissions target, with the decision being delayed until 2016.
Energy secretary Ed Davey is set to submit the proposed legislation for parliamentary scrutiny, after discussions between Conservative and Liberal Democrat ministers. Chancellor George Osborne is understood to support gas-fired power generation, while the Lib Dems favour green power.
“By failing to agree to any carbon target for the power sector until after the next election, David Cameron has allowed a militant tendency within his own ranks to derail the Energy Bill,” said Greenpeace executive director John Sauven. “It's a blatant assault on the greening of the UK economy that leaves consumers vulnerable to rising gas prices.”
Energy industry lobbying group Energy UK welcomed the measures and said they would generate jobs and economic growth. Shadow energy secretary Caroline Flint, however, criticised the government for failing to set a carbon target for 2030.
Opposition leader Ed Miliband this week said that he would seek to decarbonise the UK economy by 2030 if Labour is returned to power at the next general election.