New report calls Gordon Brown's green stimulus "pathetic"
Gordon Brown has been accused by a think tank report of failing to aim his economic stimulus for the benefit of the environment and green jobs.
The New Economics Foundation says that among rich nations, the UK has invested relatively the least in clean technology. In November last year the UK government launched a £20 billion recovery plan that included a modest £535 million "green stimulus", with £100 million allocated to improve insulation and heating systems in buildings. A rescue package for the car industry launched in January, contained measures to support low-carbon vehicles. The UK budget, due on 22nd April, could feature more green spending plans although the Treasury will be restricted by a rising fiscal deficit.
The analysis by the New Economics Foundation (NEF) criticises the UK for spending just over £100m - 0.0083% of its national wealth (GDP) - on genuinely new and additional measures to benefit the environment.
Andrew Sims, the report's author, said: "This is a fraction of the amount given to RBS staff in bonuses. The prime minister says he is creating green jobs but this is a fantasy. The government's performance is pathetic."
'Comprehensive framework'
A Treasury spokesman said it was unfair to look at the green element of the fiscal stimulus in isolation.
He said: "The UK already has a comprehensive policy framework in place, expected to drive over £50bn of investment in the low-carbon sector between 2008 and 2011, including supporting renewable energy, upgrading grid infrastructure, enhancing energy efficiency and improving public transport.
"This must be considered when comparing different countries' approaches to low-carbon investment and the development of a low-carbon economy."
Meanwhile Lord Stern, a former UK Treasury chief economic adviser, is launching a report commissioned by the German government.
It calls for massive investment by the G20 nations in energy efficiency and new electricity grids; supporting markets for clean technology; pushing up the price of emitting carbon; and initiating large-scale demonstration projects for carbon capture and storage and concentrated solar and energy storage.
His study expresses confidence that G20 leaders can build a low-carbon economy which brings the world back on track for growth and prosperity.
In the UK, a report by Greenpeace, the Federation of Master Builders and the Liberal Democrats accuses the government of missing an open goal by creating jobs through new roads and subsidies to car firms when the cash could have been spent on more insulation. They say that this would create more jobs for the money, whilst also cutting energy demand and emissions.
'UK will need to compete, or pay a carbon cost'
Pavan Sukhdev, who heads the UN's green economy drive, said: "The UK needs to recognise this is a competitive situation. They need to compete into the future where there will be a cost for carbon, there will be low-carbon development models in rich and poor nations, and the UK will do itself and its entrepreneurial community an injustice if it does not provide them with at least the same competitive position that the rest of the world has. I think a bit more work is needed with Prime Minister Brown."
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Pilot Tidal Energy Scheme for North Wales Coast
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
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Micro-generation forms key part of Government's vision.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
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Green policies could hit UK manufacturing hardest.
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."
