Parliament

PBR: The green reaction

"Ministers should have gone much further to slash energy waste and develop the UK's massive renewable energy potential"

Written by BusinessGreen.com Staff

The Chancellor's Pre-Budget Report offered an undeniably mixed bag for green groups with delays to new levies on the most polluting vehicles and plans for motorway expansion offset by yet more cash for home insulation, accelerated spending on rail and flood defences, and an extension of support for renewables developers.

Leading figures within the environmental and clean tech fields offer their take on the day's announcements:

Andy Atkins, Friends of the Earth's Executive Director

"The Government has dodged a golden opportunity to kill two birds with one stone by using the Pre-Budget Report to tackle both the economic downturn and global climate change.

Creating new jobs by insulating homes is a step in the right direction. But political ambition, of speed and scale equal to that shown to the economic crisis, was urgently needed to tackle global climate change and safeguard a clean and prosperous future for us all.

Ministers should have gone much further to slash energy waste and develop the UK's massive renewable energy potential. This could create exciting new business opportunities and tens of thousands of jobs - as well as slashing fuel bills and greenhouse gas emissions.

Increased public borrowing must be invested in creating a successful, low- carbon economy, instead of blowing it on a spending spree that won't avoid the climate change collision course we are currently on. Time is running out - the Government must show much greater ambition in its Budget next Spring."

Maria McCaffery, chief executive of the British Wind Energy Association (BWEA)

"BWEA has been for some time now asking the Government to reiterate its commitment to the Renewables Obligation (RO) beyond 2027. If we have Round 3 projects coming on line from 2015, under the previous regime they would have been covered by the RO for only the first half of their projected life cycle. This extension to the RO will bring long term stability and encourage developers to continue with the building programme."

Stuart Wardlaw, partner at legal firm Dickinson Dees LLP

"The announcement that the Government will accelerate £535 million of capital spending for energy efficiency and rail transport is of course welcome news on environmental initiatives, but it is not clear what this will actually deliver.

Moreover, the announcement offers no new support for improvements in waste management. As the economic turmoil deepens, a lack of financial resources and a decline in the demand for recyclates could threaten to derail initiatives to reduce waste going to landfill and to achieve much higher levels of recycling and recovery of waste.

If we are to make significant improvements and meet EU targets, we need to continue to improve household recycling levels and invest in other long-term projects. The way forward is clear: by reducing and making effective use of the waste we produce, not just on a household but also a business level, councils will be able to meet challenging future targets for recycling and landfill diversion.

However, this costs money and today’s announcement offers no encouragement to councils, businesses or householders in their efforts to become greener by reducing and better managing waste."

Jonathan Johns, head of renewable energy at Ernst & Young

"This is a very welcome announcement. We had previously commented that the renewable consultation process, while welcome in itself, had the affect of creating uncertainty with investors as the Energy Bill was not expected until 2009/10.

It is therefore pleasing that Alistair Darling has extended the obligations commitment now providing a more certain framework for investment until 2037. This is clearly vital for the onshore wind industry where the UK has the chance of being a world beater. In this context, it is to be hoped that the strategy review will deal with some of the underlying economics.

It should not be forgotten that the renewal is good news for other renewables. Many governments are concluding that renewables are both good for climate change and for stimulating much needed investment in the economy. Post recession we need to ensure that there is a strong green collar sector."

Stephen Hale, director at the Green Alliance

"The chancellor is right to say the economic recovery must support our environmental objectives. So Green Alliance welcimes the commitment to bring forward public expenditure on home insulation and public transport - and the new jobs this will create.

However, it is disappointing that this is undermined by a £60 giveaway to the most polluting cars.

The government is right to take action to support people through this difficult economic climate, but a more consistent and ambitious approach would ensure the recovery is sustainable both economically and environmentally.

David Metcalfe, director at green business research firm Verdantix

"It is a case of the chancellor who gives, the chancellor who takes away. The fact is the economy is on its knees and the issue is how to fit your environmental policy around that fact.

As some environmental measures, like green taxes, have visible costs attached, they have all been postponed, with the exception of an increase in fuel duty.

There is more encouraging news in that spending on some environmental measures has been brought forward, but that is alongside capital expenditure that is not clearly green.

Finally it is good that the Renewables Obligation has been extended by another 10 years, but again the investment window under the RO was pretty long already."

Leo Martin, director of CSR auditors GoodCorporation

"For some time, the Prime Minister had been calling for a significant increa se in green technology and employment in the UK as part of his vision for the country’s recovery from the financial crisis. However, this vision has not been reflected in the pre-budget report.

While we welcome the £535 million capital spending on energy efficiency and the extension of the Renewables Obligation to 2037, this has been off set by the delay in the planned reform of car taxation and the decision to keep an amended framework for Air Passenger Duty rather than a move to broader aviation duty.

It was particularly disappointing to see that the pre-budget statement did little to incentivise investment in green technology or green employment. This would appear to contradict the Government's claim to support a green way out of the recession."

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