Uk’s First ‘carbon Budget’ – Cash For Renewable Energy, Energy Efficiency & Green-collar Jobs
By Sam Newell
Alistair Darling unveiled a series of environmental initiatives in the United Kingdom’s first ‘carbon budget’ this week, with around £1 billion pounds set aside to encourage sustainable and efficient energy use and deliver ‘green jobs’.

The budget promised carbon emission cuts of 34% by 2020. Darling called it a "landmark step". The new 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 approximately 380,000 tonnes of carbon dioxide every year, as “woeful”. "The emissions saved per year represent about two weeks' emissions from Radcliffe-on-Soar coal-powered station” claimed the environment group's spokesperson.
Lord Turner, chairman of the Climate Change Committee and one of the figures behind the budget, added “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

Offshore wind is one of the winners from this years budget, Darling adding that the UK needed renewable 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 added.

"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 help a number proposed projects that are under threat including the London Array, the world’s biggest.
Paul Golby, CEO of Eon UK, which has a 30 per cent share in the London Array, added 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 move to increase sales within the struggling automotive industry and encourage people to swap to greener, more efficient vehicles, The Chancellor confirmed that the government will launch a scrappage scheme worth £2,000 per vehicle. The scheme covers the 10 million cars in the UK currently older than 10 years.

The scheme which starts next month and should run until March of next year or until the money runs out, whichever is soonest.

The Chancellor also announced a reform to vehicle excise duty in 2010 “to encourage manufacturers to produce cleaner cars” new bands will be brought in offering an “incentive to encourage drivers to choose the least polluting car”.
Green-collar jobs

The Governments green collar jobs strategy was a key part of this carbon budget. The Chancellor predicted government spending on environmental initiatives in the fight against climate change would create large numbers of "green-collar jobs". He added that there “could be over a million jobs in our environmental industries within the next two decades” providing “huge opportunities” for businesses.

“These budgets give industry the certainty needed to develop and use low-carbon technology – cutting emissions, creating new businesses and jobs.”
Funding for training and skills development also increased, with an additional £260 million pounds targeting "sectors with strong future demand" which should benefit those in green industry sectors.

Sam Newell, founder of the renewable energy jobs portal, Renewable Energy Jobs noted “Investment on this scale is just what we need to develop a UK workforce capable of supporting a low carbon economy.”

Other Energy Investment

The Chancellor confirmed plans for an additional two CCS demonstration plants retaining an option to build another two in the future, how these projects will be funded is unclear.

Darling also announced that highly efficient CHP plants are to be exempted from the climate change levy from 2013 which he hopes will secure £2.5 billion pounds of private money.
About the author Sam Newell is the founder of Renewable Energy Jobs
the global renewable energy job site