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 goals1.
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.