The budget, which covers the period 2023 to 2027, will remain at its existing level of 50 per cent of emissions relative to 1990, as per the advice given to the government by the Committee on Climate Change (CCC).
Carbon budgets set five-year legally-binding caps on UK greenhouse gas emissions, designed to prepare for the statutory target to reduce emissions by at least 80 per cent from 1990 levels by 2050.
In a statement to parliament, energy secretary Ed Davey said that any revision the carbon budget would be “premature”.
He added: “Above all, maintaining the Fourth Carbon Budget at its current level demonstrates the UK’s commitment to its climate change target of an 80 per cent reduction in emissions by 2050.”
Lord Deben, chairman of the CCC, welcomed the news saying it demonstrates the government’s commitment to tackle climate change in the most economically sensible way.
He added: “Business can be confident that the UK is determined to create a low-carbon economy and benefit from the growth and the jobs which that will produce.”
“It is also worth noting that increasing numbers of other countries are following our lead and making the mitigation of climate change a priority”.
Tim Yeo, chair of the energy and climate change select committee, echoed the need for an international consensus on decarbonisation, saying that a “downgrade” in the UK’s ambition would have sent the “wrong message” to the international community “just when the US and China appear to be taking positive steps towards agreeing a deal in 2015 to limit emissions.”
“It would also have sent a confusing signal to energy investors and businesses at a time when the UK cannot afford any delays in upgrading our energy infrastructure and replacing aging and dirty power stations with cleaner forms of power like nuclear and renewable,” Yeo said.
The Renewable Energy Association’s chief executive Nina Skorupska welcomed the decision as “very good news” for the green economy specifically.
“This decision puts independent expertise and long-term thinking ahead of the possible lure of political point scoring,” she said, adding that the long-term certainty offered by government is much needed by low carbon investors.
The CBI’s director for business environment Nicola Walker added: “The priority now must be to ensure a successful conclusion to negotiations across Europe on a robust but credible emissions reduction target so that our climate ambitions are aligned.”
The CCC will now carry out the analysis necessary to set the fifth carbon budget, which will be published at the end of 2015.