Pre-Budget Report: Steps to combat climate change unveiled

MILLIONS of pounds of funding was today earmarked by the Chancellor to help the UK become a global leader in “low-carbon” projects and technology.

Alistair Darling announced £160m of public and private sector investment for low carbon projects through the Innovation Investment Fund and the Carbon Trust’s Venture Capital scheme.

He said it was “crucial” that jobs were created by tackling climate change and bringing forward new opportunities for low-carbon industries.

A further £200m will help “energy effiency” from next April, to cut carbon emissions from homes.

Mr Darling said the UK had already developed Carbon Capture and Storage (CCS) technology but he wanted to increase its use “to make us world-leaders in this vital area”.

He said the UK could lead the way in wind power and other renewable energy methods.

Other measures announced today included paying a £900 ‘bonus’ a year to those those who generate power from a domestic wind turbine or solar panel and supply the excess energy to the National Grid.

Electric vehicles will also be exempt from company car tax for five years and there will be a 100% first year capital allowance for electric vans.

Mr Darling announced a home boiler scrappage scheme for up to 125,000 inefficient domestic boilers.

He said: “Each inefficient boiler adds over £200 to household bills and one tonne of carbon to the atmosphere.”

And the criteria for exploring oil fields is to be relaxed, allowing a further eight to be investigated.

In addition, the government will invest £90m in the European Investment Bank’s new 2020 fund, which will provide finance to the tune £5.9bn in infrastructure projects that contribute to emission reductions.

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