David Newbery, University of Cambridge 2008. What is the relationship between climate change, RD&D for low carbon investment and energy security? Security concerns are characterised as problem of cost rather than pure security of supply or market failures. However intervention is required to correct the market failures of carbon emissions and lack of RD&D. The right instruments are needed, including a credible future carbon price, to enable markets to deliver electricity investment. The EU 2020 renewables target is discussed together with who should pay for RD&D. The current policy of incorporating costs into electricity bills is highly regressive.