Last week the Energy Secretary Chris Huhne confirmed that the government will be accepting the proposals of the Committee on Climate Change’s report on the Fourth Carbon Budget. This historic step is taking place in conjunction with the government’s Energy Bill that is currently working its way through Parliament. The Green Deal, the flagship policy of the Bill, was first promised by the Conservative Party in 2009 and is regarded as Europe’s most ambitious energy efficiency and insulation plan. It will encourage and enable people to install energy efficient improvements such as insulation, and will be funded by a charge on energy bills that avoids the need to pay upfront costs.
The government has also committed to establishing a new Green Investment Bank, ensuring that it has the resources to help the UK move towards a low-carbon economy. Government investment alongside private finance should mean that there is an additional £18 billion of investment in green infrastructure over the next few years.
Of course as part of the transition to the low carbon economy, we need to ensure that energy-intensive industries remain competitive, in particular manufacturing, and that the government sends a clear message across the world that the UK is open for business. Rising fuel costs pose a key risk to these sectors which are critical to the country’s growth agenda. The government will therefore take steps to reduce the impact of this policy for such businesses, allowing them to play their part in delivering the green transformation.
In just twelve months, the Coalition government has launched the world’s first incentive scheme for renewable heat, invested £3 billion in a Green Investment Bank, provided £400 million of support for ultra-low emissions vehicles, pioneered reforms to the UK’s electricity market and slashed Whitehall emissions.
We have said from the outset that we aspire to be the greenest government ever, and the government is leading by example. Such a balanced approach is right for Britain if we are to combat climate change and secure our energy supplies, whilst protecting our economy for future generations to come.