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UK Government to cut low-carbon programmes by £34 million

As the new Coalition Government continues to pledge its green intentions, the Department of Energy and Climate Change (DECC) has announced a £34 million cut to low-carbon programme.

The cuts are part of the Government’s £6.2 billion savings programme announced in the Budget 2010 in May.

All governmental departments will be making budget cuts, with DECC’s contribution standing at £85 million.

The major low-carbon losers are the Low Carbon Buildings Fund, which will be closed early to save £3 million.

Efficiency savings and under spending on other DECC programmes will bring a further £6.1 million.

The Carbon Trust will also see a £12.6 million cut in its grant for low-carbon technology and business support from DECC.

The bio-energy capital grants and bio-energy infrastructure schemes are also casualties of the cuts. DECC says it will honour £5.3 million in grants for 2010/11, but will cancel the final funding rounds to save £4.7 million.

Savings will also come from reducing funding for deep geothermal energy generation by £1 million, scaling back the scope of the offshore wind capital grants scheme to the tune of £3 million and limiting the Central Government Low Carbon Technology Programme to provide a further £2.9 million.

Finally, the Energy Saving Trust’s technology trials will finish early, saving £700,000 on the £3 million programme.

The cuts have unsurprisingly been condemned by environmental groups.

“Slashing spending on low-carbon technology is a false saving – especially on the same day Ministers announce that building a strong green economy is crucial to our financial recovery,” says Simon Bullock of Friends of the Earth.

However, DECC is keen to point out that it is still investing more than £150 million in low-carbon technologies this year.

For further information:
www.decc.gov.uk
www.foe.co.uk/

19 July 2010

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