UK’s First Carbon Budget

UK’s first ‘Carbon Budget’ – Investment in renewables, energy efficiency & green jobs

UK Chancellor Alistair Darling unveiled a series of ‘green’ initiatives in the UK’s first ever ‘carbon budget’ this week, with around £1 billion pounds set aside to encourage alternative and efficient energy use and deliver ‘green jobs’. The budget promised carbon emission cuts of 34 per cent by 2020. Darling called the move a “landmark step”. The increased target is well ahead of the 20 per cent promised at EU level and sets UK targets well above those in the US. Greenpeace dismissed the energy saving initiatives, expected to save around 380,000 tonnes of CO2 each year, as “woeful”. “The emissions saved per year represent about two weeks’ emissions from Radcliffe-on-Soar coal-powered station” said the environment group’s spokesperson. Lord Turner, chairman of the Climate Change Committee and one of the central figures behind the budget, commented “The carbon budgets provide the UK with the most ambitious climate change legislation in the world. We need to start reducing our emissions now, and we need tough policies and strong leadership from government.”

Offshore Wind Development – Offshore wind is one of the big winners from latest budget, Darling adding that Britain needed cleaner energy investment, talking of a new “North Sea energy hub”, built around offshore wind and including gas storage and carbon capture. “The credit squeeze is holding back major offshore wind projects. I want to lift the barriers — through £525 million pounds of new financial support over the next two years for offshore wind, funded through the renewables obligation. The potential is enormous,” he said. “I am confident that this will lead to major projects getting the go-ahead quickly, providing enough electricity to meet the needs of up to 3 million households.” This is still someway short however, of the £2 billion pounds asked for by the wind industry but should be enough to benefit a number proposed projects that are under threat including the London Array, the world’s largest. Paul Golby, chief executive of Eon UK, which holds a 30 per cent stake in the London Array, said he was “certain” the move “would help transform wind power in the UK”.

Green Buildings – An additional £435 million pounds of extra support will be provided “to deliver energy efficiency measures — for homes, businesses and public buildings” such as weatherproofing. The government also announced that from a £500 million pounds package designed to kick-start the building industry it would spend £100 million pounds helping local authorities to build low-carbon homes.

Car Scrappage & Green Cars – In an attempt to boost sales within the struggling automotive industry and encourage people to switch to greener, more efficient vehicles, Darling confirmed that the government will launch a scrappage scheme worth £2,000 per car. The scheme covers the 10 million cars in the UK currently older than 10 years. The scheme kicks in next month and is likely to run until next March or until the money runs out, whichever is soonest. The Chancellor also announced a major reform to vehicle excise duty next year “to encourage manufacturers to produce cleaner cars” new bands will be introduced offering an “incentive to encourage drivers to choose the least polluting car”.

Green-collar Jobs – The Governments green jobs strategy was key to this carbon budget. Darling claimed government spending on environmental initiatives in the fight against climate change would create large numbers of “green-collar jobs”. He claimed that there “could be over a million jobs in our environmental industries within the next two decades” providing “huge opportunities” for business. “These budgets give industry the certainty needed to develop and use low-carbon technology – cutting emissions, creating new businesses and jobs.” Funding for skills development and training also increased, with £260 million pounds focused on “sectors with strong future demand” which should benefit those in green industry sectors.

Other Energy Investment – The Chancellor confirmed plans for a further two CCS demonstration plants maintaining an option to build a further two in the future, how these projects will be funded was not confirmed. Darling also announced that highly efficient CHP plants are to be exempted from the climate change levy from 2013 which he predicts will bring forward £2.5 billion pounds of investment from the private sector.

Submitted by Sam Newell at Renewable Energy Jobs

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