UK lagging behind on energy investmentUnited Kingdom
The UK’s spending on the development of new energy technologies is lagging behind that of other rich countries and risks setting back the creation of “green jobs”, according to a government advisory body.
The Committee on Climate Change, the statutory body that advises ministers on emissions reduction targets, said the UK spent 0.01 per cent of GDP on energy in 2007, the latest year for which comparative figures are available. That compared to 0.03 per cent in the US, 0.05 per cent in France and 0.09 per cent in Japan.
About £550m of public money was spent on low-carbon technologies last year, of which about £260m was on energy.
The committee’s report also quoted estimates by the International Energy Agency that investment must be increased by between two and five times current levels to meet climate targets.
The Committee called on the government to concentrate support on six areas: offshore wind; wave and tidal power; carbon capture and storage; smart grids and meters; electric vehicles; and aviation.
Without government support, it warned, a range of low-carbon technologies were in danger of being stuck in a so-called “valley of death”, whereby private sector investors were unwilling to take a risk on the investment needed.
A “lack of clarity in the institutional landscape” was also inhibiting development, the committee found, as businesses struggled to understand the way public funds were disbursed.
FT In depth: The FT examines how state aid is supporting environmental investment
The report identified offshore wind as “likely to be the least cost path for decarbonising the power sector”.
Government funding for green projects is being cut. The Department for Energy and Climate Change is shaving £85m from its budget, including some of the support for early-stage green technologies.
Ministers are also considering whether to go ahead with a “green investment bank”, which would require public funding that would be used as seed capital for green businesses. One of the possible funding streams for the bank, the sale of public assets and land, has been ruled out by the government, which is reluctant to earmark those funds, which could run into billions.
Tom Foulkes, director-general of the Institution of Civil Engineers, said: “We recognise cuts have to be made and that no sector can be completely immune to this.
“However, it is even more important in these cash-strapped times that government provides the right regulatory frameworks to encourage private investment into infrastructure projects.”
El contenido de las noticias que se presentan en esta sección es responsabilidad directa de las agencias emisoras de noticias y no necesariamente reflejan la posición del Gobierno de México en este u otros temas relacionados.
- Detrás de Cámaras
- Galería de Medios
- Notas de prensa
Page 'Breadcrumb' Navigation:
Site 'Main' Navigation: