Ministers will be ordered to adopt urgent measures to wean the country off oil, amid rising concern that the Libya crisis has left the economy exposed to a dramatic rise in fuel prices. With fears growing that the cost of petrol could hit £2 a litre if instability in the Middle East persists and deepens, every government department will be told this week to comply with a new national "carbon plan" aimed specifically at "getting off the oil hook".
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Sources have told the Observer that Clegg – unhappy that the coalition could not boast more green achievements – had recently chaired meetings with ministers in "growing frustration that some departments were not taking their green responsibilities seriously enough".
In a speech last week, Huhne warned that China was pouring money into developing a low-carbon economy while Britain lagged behind. "China will build 24 nuclear power stations in the time it takes us to build one. By 2020, their nuclear capacity will have increased tenfold," he said. "They will lay 16,000km of high-speed rail track in the time it takes us to go from London to Birmingham.
"They have the highest installed hydro-capacity and the most solar water heaters in the world. And they are forging ahead on wind power. So China knows what's coming."
John Sauven, executive director of Greenpeace UK, said that despite the initiative, which was welcome, only some in government appeared to understand the need to break free from oil. "Sadly, over at transport, Philip Hammond is still confused. Cuts to public transport, coupled with his recent proposals to raise the speed limit, appear designed to reduce fuel efficiency and increase our dependence on oil. Huhne really needs to drag Hammond away from Top Gear and force him to spend some time watching the news," he said.
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