It is clear that we are already emitting greenhouse gases at an unsustainable rate, and global emissions are projected to grow further. Any longer-term strategy must address this. We have begun to take steps in this, and we will need to do significantly more. But I would stress that our immediate objectives are not inconsistent. To achieve a smooth, gradual transition to lower dependence on fossil fuels we need a background of price stability, not the volatility we have experienced recently.
Governments continually face difficult decisions in a complex world.
The spread of globalisation has taught us that to operate effectively in the international marketplace, we must be clear on the aims of economic policy. For the UK, this means providing a better deal for consumers through lower prices, greater choice and higher quality. We have found that the most effective way to achieve this is through competition and through diversification. These two concepts are clearly related. Liberalisation encourages companies and countries to become more efficient and innovative, to develop environmentally friendly renewable technologies, and press other players to raise their game too.