Eco activists have cautiously welcomed the news that a new government department has been created to tackle climate issues.

The department for energy and climate has been set up as part of Gordon Brown’s cabinet reshuffle.

Campaign group The World Development Movement, hopes the new department will mean the government will consider climate issues when making energy policies, such as the ruling on proposals for a new coal fired power station at Kingsnorth in Hoo.

Julian Oram, head of policy at the World Development Movement said: “The government’s policies thus far on climate change and energy policy have been at loggerheads. In creating this department, Gordon Brown seems to have recognised that critical decisions on controversial climate issues, such as whether to back a new coal power station at Kingsnorth, are directly linked to its role in exacerbating or averting runaway climate change.

"This new department must be the department of clarity on climate change and energy, not of contradiction.”

Business secretary John Hutton, who was due to make a decision on the future of Kingsnorth power station later this year, has been replaced by Peter Mandelson.

The new department for energy and climate will be headed by Ed Miliband.

It is not yet known which department will have responsibility for granting planning permission for new power plants.

If it is given the go-ahead, the new power station at Kingsnorth will be the first new coal plant in the UK for more than 30 years.