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Climate Change and Sustainable Energy Bill

The Prime Minister has led from the front both domestically and internationally on climate change. A report on micro-generation should, in our judgment, come from my Secretary of State rather than the Prime Minister. Clause 3 requires that Her Majesty’s Treasury produce a fiscal and economic strategy for micro-generation and energy efficiency. As hon. Members will be aware, all consideration of fiscal measures is undertaken as part of the normal budgetary process, so a separate fiscal and economic strategy for micro-generation and energy efficiency is unnecessary and would risk prejudicing the outcome of the overall budgetary process. I should add that the Chancellor has asked the Government’s chief economist, Nick Stern, to review climate change and economic instruments.