The end of Decc: the reaction

By Tom Grimwood

Greg Clarke has been appointed as secretary of state for the Department for Business, Energy and Industrial Strategy by new prime minister Theresa May as part of a major cabinet reshuffle.

The new department will take on responsibility for enacting both energy and climate change policy. Clarke said: “I am thrilled to have been appointed to lead this new department charged with delivering a comprehensive industrial strategy, leading government’s relationship with business, furthering our world-class science base, delivering affordable, clean energy and tackling climate change.”

Decc was formed in 2008 by the prime minister at the time – Gordon Brown. It took over the energy portfolio from the Department for Business, Enterprise and Regulatory Reform – one of the predecessors to BIS – and the climate change portfolio from the Department for Environment, Food and Rural Affairs.

Here’s how others have reacted to the end of Decc:

Angus MacNeil, chair, Energy and Climate Change Commitee

“While members of my committee differed in their views on the European Union, the immediate impact of the vote to leave has been to amplify uncertainty at a time when major investment is needed to deliver affordable, clean and secure energy. In this context, I am astonished at the prime minister’s decision to abolish Decc.

“Decc’s disappearance raises urgent questions. To whom falls the central statutory obligation, contained in the Climate Change Act 2008, to reduce the UK’s carbon emissions by 80 per cent from their 1990 baseline? Which department will take responsibility for the energy and climate aspects of negotiations to leave the EU? Who will champion decarbonisation in Cabinet? Who will drive innovation in the energy sector?

“Turning to my committee and the crucial role we play in scrutinising the government’s energy and climate change policies… There will be no immediate change to our remit, operations or membership, which can only be done by order of the house… Over the coming weeks I will speak to colleagues to explore how we can ensure that effective parliamentary scrutiny on the crucial issues of energy and climate change continues.”

Hugh McNeal, chief executive, Renewable UK

“We’re looking forward to working supportively with Greg Clark in his new role, as we represent industries that can attract inward investment in the UK, and onshore wind offers the cheapest source of new power for Britain. The renewable energy industry has faced some tough challenges over the past year, but now we have clarity on the make-up of the new administration we can move forward”.
 
“The UK will invest over £20 billion in wind energy in the next five years. Energy is the big ticket item in British infrastructure spending. Industry is ready to invest and it is vital for our economy that this work continues.”   

Richard Black, director, Energy and Climate Intelligence Unit

“The disappearance of Decc as a stand-alone government department will of course raise concerns that the UK is going to ‘go soft’ on climate change.

“However, Theresa May has assured Conservative MPs that her government will continue to be an international leader on climate change and it would be odd not to continue with that when all the most important new trading partners in our post-Brexit world, such as China, India and the United States, are themselves making massive investments in a clean energy transformation.

“Creating this new department opens up the exciting option of an innovation and industry strategy that enables companies in the clean energy supply chain, including steel, to expand and thrive together…

“Greg Clark is an excellent appointment. He understands climate change, and has written influential papers on the benefits of Britain developing a low-carbon economy.

“Importantly, he sees that economic growth and tackling climate change are bedfellows not opponents – and he now has the opportunity to align British industry, energy and climate policy in a way that’s never been done before.”

James Court, head of policy and external affairs, Renewable Energy Association

“We are delighted Greg Clark has been appointed the new secretary of state for Business, Energy and Industrial Strategy. He previously showed real vision as the shadow energy secretary and we look forward to working with him once again in order to get things moving on the deployment of new renewable energy infrastructure.”

Tom Greatrex, chief executive, Nuclear Industry Association

“As a former shadow energy secretary, Greg Clark, well understands both the importance and urgency of reducing carbon emissions, increasing energy security and reducing our exposure to volatile commodity prices.

“While joining Decc and BIS should help focus on our infrastructure requirements, it is important that changes to government departments do not distract from the vital task of ensuring investment in new low carbon generation capacity for the future. This supports thousands of highly skilled jobs across the country, and the UK’s world class nuclear supply chain capabilities which are successfully exported around the world.”

Paul Barwell, chief executive, Solar Trade Association

“It is a great shame that a department directly focused on the critical issues of energy and climate change is to close, but a joined up business, industrial strategy and energy approach could provide huge opportunities for solar in the UK, as can be seen in many countries across the world.

“We’re pleased to welcome Greg Clark as the new Secretary of State for Business, Energy and Industrial Strategy, and look forward to working constructively with him over the coming weeks and months to develop a clear industrial strategy and policy roadmap for the solar industry.”

Julie Hirigoyen, chief executive, UK Green Building Council

“The newly created Department for Business, Energy and Industrial Strategy represents a golden opportunity to put sustainable business at the heart of jobs and prosperity. We warmly welcome the appointment of Greg Clark as its secretary of state. As a priority he needs to provide reassurance to businesses so they can invest with confidence in a low carbon future.

“However, the loss of a dedicated climate change department has the potential to send the wrong signal to the international community.  The government needs to reconfirm its commitment to the Paris Agreement at the earliest opportunity.”

John Sauven, executive director, Greenpeace

“The energy and climate change change department has been broken up and put back together without the name ‘climate change’. Although, some might say ‘what’s in a name’, there is a very real worry that the progress made on tackling climate change could be relegated to the bottom of the intray. Business, energy and industrial strategy must have green innovation and job creation at its heart.”

Craig Bennett, chief executive, Friends of the Earth
 
“This is shocking news. Less than a day into the job and it appears that the new prime minister has already downgraded action to tackle climate change, one of the biggest threats we face.

“This week the government’s own advisors warned of ever growing risks to our businesses, homes and food if we don’t do more to cut fossil fuel pollution.

“If Theresa May supports strong action on climate change, as she’s previously said, it’s essential that this is made a top priority for the new business and energy department and across government.”