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The UK Chancellor Alistair Darling has resisted calls from
some of his cabinet colleagues to launch a 'green new deal'
as part of his Pre-Budget Report to help stimulate the economy,
but has pledged to bolster spending on energy efficiency and
the rail network, while extending incentives for renewable
energy projects.
The chancellor insisted that the UK government's plans to
tackle the current recession - "must support our environmental
objectives, not come at their expense" - adding that the transition
towards a low-carbon economy will continue.
To support this goal he announced plans for £535m of capital
spending projects to focus on energy efficiency programmes,
rail transport and environmental protection. In particular,
he said that an extra £100m would be invested to accelerate
the UK government's high-profile domestic insulation programme,
while 200 new trains would be added to the country's rolling
stock and funding for flood protection would also be increased.
Darling said that such projects would not only help to cut
carbon emissions, but would also create "high-value, green-collar
jobs" - contributing to the UK government's goal of generating
one million green jobs in the UK over the next decade.
In a surprise move, the Chancellor also announced that the
Renewables Obligation (RO) - the primary incentive
scheme for renewable energy projects, which allows developers
to sell so-called Renewable Obligation Certificates to the
energy firms that purchase electricity from them bolstering
their returns - would be extended by 10 years to 2037.
The move was immediately welcomed by the renewable energy
industry, which has been lobbying hard for the scheme to be
extended. "Our main worry was that relatively soon after some
planned wind projects were coming online, the RO could be
axed" - said Nick Medic of the British Wind Energy Association
(BWEA) - adding that the 2027 deadline was beginning to affect
investor confidence.
However, while the renewables sector welcomed the changes,
other green groups - as well as some senior UK cabinet ministers,
green businesses and trade unions - were left disappointed
by the Pre-Budget Report's perceived lack of ambition.
Energy and Climate Change Secretary Ed Miliband and Environment
Secretary Hilary Benn had reportedly been lobbying for a wide-reaching
package of low-carbon measures to be included in the report.
Meanwhile, former cabinet minister and chairman of the UK
government's green watchdog - the Environment Agency - issued
a similar call, telling delegates at the Agency's annual conference
that the UK should follow the lead set by US president-elect
Barack Obama and deliver a 'green new deal'.
However, beyond the increased spending on home insulation
and rail and extension to the RO, their calls appear to have
been largely rejected by a UK Treasury already facing criticism
over the government's soaring borrowing levels.
For more details on the Pre-Budget Report - Click
Here
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