Britain’s energy crisis has left the Government and the Conservatives on the ‘wrong side of the argument’, Liberal Democrat Leader Nick Clegg said today.

Speaking at the launch of a Greenpeace commissioned report examining the potential for new Combined Heat and Power generation, Nick Clegg called for greater incentives for businesses to make environmental improvements.

The independent report launched today shows that Britain’s key industrial sites have the potential to provide enough electricity to power two-thirds of UK, halving gas imports.

"The record high prices of oil and gas have recently brought Britain’s energy crisis into sharp focus.

"The political debate to address this crisis is at a crossroads. Do we stick with old centralised technologies like nuclear power or should we instead be investing in efficient localised energy production and usage?

"This report highlights the integral role Combined Heat and Power can play in efficiently providing for our nation’s energy needs.

"Rather than pursuing an expensive and misguided policy to build new nuclear, the Government should be moving to rapidly expand CHP.

"There can be no excuses not to act: CHP makes environmental and economic sense."

"The Government is on the wrong side of this argument; plugging away at nuclear, gas and giving a green light to unabated coal, refusing to do anywhere near enough on energy efficiency.

"David Cameron is on the wrong side of this argument, too.

"He made a speech earlier this week about the environment, where he made some welcome noises about opposing a third runway at Heathrow and imposing a California-style emissions standard on power stations - to rule out unabated coal.

"They were welcome noises, but they were only noises.

"The Liberal Democrats tabled amendments recently to the Energy Bill, proposing just such an emissions standard and the Conservatives opposed it.

"Their spokesman said Governor Schwarzenegger’s approach wasn’t right for Britain - the direct opposite of what Mr Cameron said on Monday.

"What kind of a commitment to the environment is this? Warm words in public for the newspapers, but as soon as the committee room door in Parliament is closed behind them the commitments evaporate. And the old Conservatives return."