Last week’s announcement by Gordon Brown, of the development of a new low carbon economy is a much-needed affirmation of the government’s leadership on and commitment to climate change.

Hot on the heels of David Cameron’s ‘environment and economy’ speech, the government has outlined a comprehensive plan for transforming our energy sector from heavy reliance on fossil fuels to one which is diverse, more secure and sustainable in the longer term. A lot more renewable electricity would also considerably weaken the commercial case for new coal-fired power stations.

The commitment to massively expand the renewable energy sector has to be applauded. It is long overdue and will finally put the UK on a path which aligns its rhetoric with its actions and will help us catch up with the rest of Europe.

The ‘green revolution’, as it has been termed by the prime minister, seeks to increase the share of renewables in our energy mix from 1.5 to 15 per cent by 2020, relying on a significant increase in onshore and offshore wind power, as well as renewable heat generation and low carbon transport solutions.

It would involve installing an extra 3,000 extra offshore turbines and around 4,000 new onshore turbines. Gearing up the supply chain to be able to manufacture and install these will be a major challenge. But so too will the task facing the government in addressing local opposition, especially to onshore wind developments.

Community-scale and household-scale solutions are also a key feature of the government’s new plans. A feed-in tariff for microgeneration, providing a premium price for excess energy exported to the grid, would offer a significant incentive to homeowners to install renewable electricity in their homes. It has already proved highly successful in Germany. A similar incentive for renewable heat generation, primarily through community-scale installations, could also be effective, particularly as heat comprises approximately 49 per cent of the UK’s energy demand.

The least developed aspect of the strategy is in relation to the transport sector. Consistent with European requirements, it assumes that 10 per cent of all the energy consumed through transportation should come from renewable sources by 2020. In light of the controversy about the sustainability of biofuels and their impact on the global food market, and the forthcoming Gallagher Review into these issues, the chances of the target being met are precarious.

Electric vehicles may save the day, however. Not only would they avoid the problems facing biofuels and oil, as their batteries would be charged at night they would act as a power store for the grid, capturing energy produced from wind which would otherwise be wasted and thereby balancing periods of high and low demand.

Unfortunately, the strategy comes at a price, in the form of increased energy bills: in the order of 10 to 13 per cent for household electricity bills and 18 to 37 per cent for household gas bills by 2020 when the bulk of the new measures will be installed. Recent polling by Ipsos-Mori suggested that 59 per cent of people would be willing to pay more on their energy bills for national investment in renewables. But taken on top of the existing rise in fuel costs, it remains to be seen if they really mean it.

There are, however, significant opportunities to reduce the amount of energy consumed in the home in order to mitigate these costs. Reducing the amount of energy consumed is without doubt the most cost-effective means of achieving the UK’s renewable energy target. The government has committed to developing an new energy efficiency strategy later this year. It needs to be as bold as its strategy on renewables. The more it achieves in reducing total energy use, the fewer renewable energy systems will need to be put in place, and the lower the total bill will be. Furthermore, by diversifying our energy sources to include domestic renewables, we will be reducing our reliance on gas imports and the volatility of global markets.

The government’s leadership in the face of rising fuel prices and an economic downturn is cause for optimism in the battle to avoid dangerous climate change. The government must now maintain its commitment to developing a low carbon UK economy, even if faced with opposition, and move quickly to implement its strategy.