Budget delivers positive step towards a low-carbon economy

Article taken from CBI Sustainability Update. To view article, click here

The Budget unveiled a package of measures to promote the shift to a low-carbon economy but the Government will need to deliver quickly on these if we are to meet our stretching carbon budgets and secure our energy supply:

. £405 million to support low-carbon industries and advanced green manufacturing;
. UK renewable and energy projects to benefit from up to £4 billion of new capital from the European Investment Bank;
. an uplift in support for offshore wind investments that reach financial close between now and 2011 through the Renewables Obligation. This is expected to support £9 billion of investment;
. extending support for combined heat and power through climate change levy exemptions, helping bring forward £2.5 billion of investment;
. a new funding mechanism to support up to four carbon capture and storage demonstration projects, and £90 million to fund detailed preparatory studies.

Richard Lambert, CBI Director-General, said:

"With many big energy projects, especially in renewables, being shelved or delayed because of funding problems, the provision of EIB loans will help get these schemes moving again.

"Coal is an important part of the UK's energy mix and we welcome the agreement to support up to four Carbon Capture and Storage demonstration plants. Developing CCS technology is the key to reducing the impact of coal-fired power stations on the environment."

For more information on the 2009 Budget, visit the HM Treasury website

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