UK Government

Department of Energy and Climate Change: PBR boost for green growth

Press Release   •   Dec 11, 2009 11:21 GMT

Substantial new funding to support a green economic recovery in the UK has been announced by the Chancellor in his Pre-Budget Report. This announcement cements the UK’s position as a leader in climate change initiatives both at home and abroad, and comes as the Government presses forward with efforts to secure an ambitious global deal in Copenhagen.

Substantial new funding to support a green economic recovery in the UK has been announced by the Chancellor in his Pre-Budget Report. This announcement cements the UK’s position as a leader in climate change initiatives both at home and abroad, and comes as the Government presses forward with efforts to secure an ambitious global deal in Copenhagen.

Among the new measures the Chancellor announced were:

_ A firm commitment to supporting four commercial scale demonstrations in the UK of Carbon Capture and Storage technology on coal power generation. This action will help to ensure the security of our energy supply in the long term, maximise our industrial opportunities, and reinforce the UK’s position of leadership on the development of clean technologies as we continue our efforts in Copenhagen.

_ Helping those who need it most to heat and insulate their homes, including an extra £200 million to improve energy efficiency and tackle fuel poverty by offering £400 for up to 125,000 households to upgrade their old boilers to the latest efficient models with a greener boiler incentive and providing extra resources for

_ Warm Front to help 75,000 of the most vulnerable households with heating and insulation.

_ Establishing Infrastructure UK to leverage further investment in low-carbon energy projects including overseeing a £90 million investment into a European Investment Bank fund to catalyse key infrastructure investments which support EU policy in climate change, energy security and trans-European networks.

_ Through the Energy Bill currently before Parliament, helping one million more vulnerable households with energy bill discounts by introducing a mandated scheme for Social Price Support, increasing energy company support from £150 million to £300 million by 2013/14.

_ Implementing energy efficiency measures to cut the public sector’s energy bills by at least 10%, helping schools, hospitals, police forces and central government to save around £300 million a year by 2012/13, as well as contributing to climate change goals by reducing the public sector’s carbon emissions by over 4 million tonnes over the lifetime of the measures.

_ Giving a boost to renewable energy deployment in the UK, by confirming that we will provide 2 Renewables Obligation Certificates per MWh to offshore wind installations accredited between 1 April 2010 and 31 March 2014 and providing greater certainty for investors by moving to 10% headroom when setting the Renewables Obligation from April 2011.

_ DECC and HM Treasury jointly working to report on how to ensure the electricity market framework can most effectively deliver a fair deal for the consumer and the low carbon investment we need in the long term, with initial findings at Budget 2010.

_ Providing an income tax exemption from feed-in-tariffs for those who generate small-scale renewable electricity mainly for use at home, which for example would be worth an average of £180 for a household installing a solar photovoltaic panel.

_ A £15 million investment (including £3.5 million from ONE North East) at the New and Renewables Energy Centre (NaREC) in Northumberland to develop a unique UK capability for the testing of wind turbine blades.

_ From 1 April 2011, reducing the rate of relief from the Climate Change Levy for business with Climate Change Agreements from 80% to 65% and including the plastics and industrial laundries sectors in the scheme to save an extra 250,000 tonnes of CO2 per year.

_ An additional £150 million support for low carbon technologies, including a further £50 million to encourage further manufacturing and testing facilities in the UK's growing offshore wind industry. This will create sustainable and high-skilled jobs while strengthening the UK's low-carbon energy infrastructure.

Secretary of State for Energy and Climate Change Ed Miliband said:

“Overcoming climate change is the great project of this generation. We have a unique opportunity, as we recover from the global economic downturn, to ensure that the UK builds a low carbon economy fit for the future. The package of measures announced by the Chancellor demonstrate the UK’s continuing commitment to cutting our domestic carbon emissions, helping the most vulnerable households and putting in place the infrastructure this country needs to deal with the energy challenges of the next fifty years. This is all about delivering the clear plan of action we set out in the UK Low Carbon Transition Plan in July.

“At this very moment, UK negotiators in Copenhagen are pushing hard for a strong global deal on climate change.  So it is more important than ever that the UK shows it is practising what it preaches. In the Pre-Budget Report, we have announced funding for a number of practical measures that support economic recovery while cutting emissions. This shows that tackling climate change can be in our economic as well as our environmental interests.”

Notes to editors

1. The full text of the Pre-Budget Report can be found here: http://prebudget.treasury.gov.uk

2. To find out more about how DECC is working to achieve a successful deal in Copenhagen, visit the Act on CO2penhagen website at www.actoncopenhagen.decc.gov.uk.

3. The figure of 2MtCO2 in relation to the public sector estate covers both reduced UK purchases of EU Emissions Trading System Allowances resulting from lower consumption of electricity and emissions reductions not covered by the EU ETS, “the non-traded sector”, e.g. resulting from lower consumption of gas.

4. Facts on climate change science: http://www.actoncopenhagen.decc.gov.uk/en/ambition/achievements/december/copenhagen-pub-quiz/

5. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change.  We are pushing hard for an ambitious global deal in Copenhagen in December to avert the most dangerous impacts.  Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

Contacts

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