Renewable energy projects and other green policy objectives have been left unscathed by the UK government’s severe austerity measures, a move that highlights that nation’s dedication to fighting climate change and moving towards a low-carbon economy.
Chancellor George Osborne announced his government would slash almost 500,000 public sector jobs, while tens of thousands more civil servants face enforced increases in pension contributions and scrapping of leave entitlements.
The Global Financial Crisis had left the country with such massive debts that the government was left with no choice except to take extreme action, Chancellor Osbourne said. Without the cuts, future generations would be paying "the interest, upon the interest, upon the interest," on overseas debt, he said.
However the Department of Energy and Climate Change (DECC), although experiencing a 33 percent cut in administration funding, will actually receive an increase of 41 percent more funding in capital spending.
The increase will ensure the UK can meet its target of 34 percent reduction in greenhouse gas emissions by 2020 and its target 15 percent renewable energy generation.
Other clean energy measures include:
– Up to £1 billion (AUD$1.606 billion) of investment to create one of the world’s first commercial-scale carbon capture and storage demonstration plants; a highly controversial technology.
– £860 million (AUD$1.38 billion) funding for the Renewable Heat Incentive which will be introduced from 2011-12. This will drive a more-than-tenfold increase of renewable heat over the coming decade, shifting renewable heat from a fringe industry firmly into the mainstream. The Government will not be taking forward the previous administration’s plans of funding this scheme through an overly complex Renewable Heat levy.
– £200 million (AUD$321,265,000) for low-carbon technologies including offshore wind technology and manufacturing infrastructure at port sites.
Energy and Climate Change Secretary Chris Huhne said:
"DECC is playing its part in tackling the deficit. Like the rest of the public sector we have taken some tough decisions, but we remain on course to deliver on our promise to be the greenest government ever. We will help create green jobs and green growth – and secure the low carbon investment we need to keep the lights on."
