The former communities’ secretary, Greg Clark, will head the new department.

There are concerns in the environmental sector that the action speaks of playing down the importance of tackling climate change.  The chief executive officer of Friends of the Earth, Craig Bennett commented:  “This is shocking news – less than a day into the job and it appears that the new Prime Minister has already downgraded action to tackle climate change, one of the biggest threats we face”

“If Theresa May supports strong action on climate change, as she’s previously said, it’s essential that this is made a top priority for the new business and energy department and across government.”

However there is hope that if climate change is made a priority of the new department it may serve to unite business strategy with the approach on energy and therefore boost renewable energy industries.

“It is a great shame that a department directly focused on the critical issues of energy and climate change is to close,” said Paul Barwell, CEO of the Solar Trade Association. “But a joined-up business, industrial strategy and energy approach could provide huge opportunities for solar in the UK, as can be seen in many countries across the world.”

Richard Black, director of the Energy and Climate Intelligence Unit said  “Creating this department opens up the exciting option of an innovation and industry strategy that enables companies in the clean energy supply chain, including steel, to expand and thrive together,”

“The disappearance of DECC as a standalone government department will raise concerns that the UK is going to ‘go soft’ on climate change,”  he added  “However, May has assured Conservative MPs that her government will continue to be an international leader on climate change.”