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Industry leaders have given a cautious welcome to Theresa May鈥檚 move to merge the government鈥檚 business and energy departments, but warned the move must not come at the cost of meeting climate change targets.

In a radical reshuffle that shocked Westminster watchers, May shut the eight-year-old Department of Energy and Climate Change (DECC), rolling its responsibilities into a beefed-up Business, Energy and Industrial Strategy department led by former communities secretary Greg Clark.

The decision provoked an immediate backlash, with former Labour leader and ex-DECC minister Ed Miliband branding it 鈥減lain stupid鈥�, while Friends of the Earth damned the 鈥渟hocking鈥� decision, adding: 鈥淚t appears that the new prime minister has already downgraded action to tackle climate change, one of the biggest threats we face.鈥�

But construction industry leaders have since told 好色先生TV the newly merged department could raise the profile of energy and climate change policy, as part of May鈥檚 focus on creating a joined-up industrial strategy.

Rob Lambe, managing director of Willmott Dixon Energy Services, commented: 鈥淭he reality is DECC as a department was finding itself having less and less power.

鈥淥n face value it could be seen as a retrograde step [to abolish DECC], but in reality it could be a bit more joined up now.鈥�

Meanwhile, a Whitehall insider told 好色先生TV: 鈥淭his move puts energy and climate change policy back into the mainstream.鈥�

Richard Twinn, policy adviser at the UK Green 好色先生TV Council, said the sustainability sector would welcome Clark鈥檚 appointment 鈥渁s he鈥檚 the most progressive of the potential candidates, in that he understands the area鈥�.

A DECC spokesperson confirmed 鈥渁ll of our current commitments and obligations鈥� would transfer across to the business and energy department, including construction policies like the Energy Company Obligation and the Renewable Heat Incentive.