Industry News-Funding for wind energy welcomed but more needed for renewable sector

The government’s announcement that it is to drive funding into Clipper, Siemens, and Artemis Intelligent Power has been widely welcomed. However it must be viewed within the context of the wider challenges facing the renewable energy market in the UK. These include access to funding for projects, planning issues for large onshore and offshore wind farm projects and the general pace at which everything is moving at.If the UK is to profit from the new ‘green economy’ then more effort must be taken on several fronts.

In order to comply with legislation from the European Union, the UK's renewable energy target (to produce 15% of final energy consumption from renewable sources by 2020) may require between 35% and 40% of electricity to come from renewable energy sources by 2020.

Research from the business advisory group the Carbon Trust shows that by 2020, the UK could capture 45% of the global offshore wind energy market, and that by 2050 our wind energy industry alone could be worth £65bn to the UK economy.

Building up the 40 GW capacity that the EU will need to reach its climate targets requires €57 billion of investment by 2020 but banks are still reluctant to lend money. Although offshore wind projects by nature attract large utility companies with strong balance sheets, the challenge is not insignificant. The facts are single turbine installation vessel costs up to €250 million.

The challenge to onshore wind projects is still influenced by local planning issues and protests from local communities. As one commentator has noted local objections are normally based on aesthetic value of wind turbines and the ‘blight on the landscape’. While claiming that they support renewable energy and onshore wind farms it is always more favourable if they are ‘built in the next valley’. Of course it is not feasible to have wind turbines on every green belt of land in the UK but more proactive and progressive view must be taken.

It is widely agreed that the government is creating the right regulatory framework for renewable energy in the UK but if the banks are still hesitant to invest in more and more projects in wind and other new energy projects then it is hard to see how the government can reach its targets in fighting climate change. The issue of ROCs for marine and tidal energy is still on the table and must be seriously considered if this sector is to flourish. While Solar still needs a significant boost.

Electrified vehicles, carbon capture and storage (CCS), and concentrated solar power, among other emerging “green tech” sectors, will need massive investment, infrastructure, and research to get off the ground. While the Chinese, German, UK and US governments, along with private investors, are pursuing all of these technologies, they cannot achieve separately what they could jointly. Time is of the essence and bringing all the variables in science, technology, regulatory regimes and investment is the only solution to the present challenges.

Fighting climate change on a global context is the key. Worldwide in 2008, at $155bn (£95bn), more was invested in sustainable than conventional energy production. Britain is well placed to succeed and profit from this new 'green economy'. These projects create jobs, secure energy supply, fight climate change they bring investment to local communities and put money back into the wider economy.

The government now need to make this clear to the banks or they will need to take more steps in direct investment of green and clean tech technologies.

Taylor Keogh Communications Public Affairs and Pr for the Energy and Clean Tech Industry

Industry News-London brokers turn attention to green finance

Bonds providing a hedge against the risk of governments missing their climate commitments could give investors the necessary confidence to invest in low-carbon projects, Professor Michael Mainelli from Z/Yen, a City of London-based risk management firm, told EurActiv in an interview.

The biggest obstacle to investment in green projects is a general lack of confidence in government policy being enacted, Mainelli argued. He pointed out that when the EU's emissions trading scheme was inaugurated, politicians agreed that carbon prices need to stand at about €25-€30/tonne, but in reality, the market crashed in 2007 when too many permits were issued and the price is still nowhere near that.

High carbon prices are crucial to the profitability of renewable energy projects, the financial expert argued. "And they depend on government policy," he said, adding that policies such as feed-in tariff rates are equally important.

Mainelli presented the idea of index-linked bonds as a way for governments to guarantee investors that they will get a return on their low-carbon investments, regardless of whether the government keeps its climate pledges.

"The basic idea here is that governments would pay interest on their own debt, and they would pay more interest if they failed to meet their carbon targets," he said.

The targets of the bonds could vary, Mainelli said. He cited as examples carbon prices, where the government pays interest if carbon is below a set price, and feed-in tariffs, where the government pays if it does not maintain a set rate or fails to reach the country's emissions reduction target.

To illuminate the issue, Mainelli offered a scenario whereby a large pension fund puts €500 million euros into a wind farm that produces at €90/MWh, when the current price of electricity stands at €85/MWh. At the same time, it buys government bonds priced at a feed-in tariff of €110/MWh.

In case in reality the tariff turns out to be only €100, the investor's profit from the wind farm is only €10/MWh, instead of the expected €20, but it is making €10 on the French government.

The idea differs from many other bonds proposals in that it is simple and does not involve forfeiting returns out of concern for the climate, Mainelli stressed.

"What makes us really subversive - one of the things I find interesting as we've been chatting to governments - is that they begin to realise that they've got to put their money where their mouth is," Mainelli said. He argued that index-linked carbon bonds are analogous to inflation-linked bonds that governments had to start issuing in the beginning of the 1980s, when people lost confidence in their government's ability to control inflation.

"But of course the uncomfortable truth is that they just don't like it because if they fail to make their targets, then they'll have to pay a lot of interest," he added.

Nevertheless, as OECD governments prepare to issue $9 trillion in debt in the next three years due to the financial crisis, compared to only €18 trillion in the past 40 years, they are now seriously considering the idea, Mainelli said.

"So it's like any supply and demand situation: supply is going through the roof but demand is dropping. And the suppliers, the governments, are going to have to come up with interesting ways of selling their debt. And this is one of them," Mainelli concluded.

For the full article please click here

Company News-Taylor Keogh Communications joins the 10:10 UK campaign

Today Taylor Keogh joined with thousands of people and organisation it its support the 10:10 UK the grass roots campaign aims in which individuals and institutions make a personal vow to cut their carbon emissions by 10% in 2010. In a first step to try to stop runaway climate change,attracted 5,000 signatures in the hours following its launch.

To support the campaign and find out what you can do click here 10:10

To read more media reviews click the links below:

The Guardian

The Daily Telegraph

Industry News-UK Bosses Tip Cleantech, Technology and Media to be the Three Highest Growth Sectors by 2020

Cleantech and renewables are expected to become two of the most important sectors of the economy according to a survey of UK business leaders, commissioned by the department for Business Innovation and Skills.

The new survey questioned business leaders from across eight sectors and found that nearly half (43 per cent) of those questioned believe that cleantech will grow at the fastest pace by 2020, followed by science and technology (20 per cent) and media and entertainment (15 per cent).

The survey highlights how the current economic climate presents new opportunities for new areas of the economy to thrive.

Combined with a growing awareness to find solutions for some of society’s greatest challenges – from tackling climate change to supporting an ageing population – investing now in innovative, high-growth areas will be essential for bolstering the UK economy once recovery kicks in.

Driving the awareness, investment and skills required to power these high-growth markets is essential for Britain’s future. Britain’s chance to showcase our strength to the rest of the world, including our cleantech innovations in the run up to Copenhagen 15, and how our digital strength will enable the first digital games in 2012, is essential for the UK’s ability to meaningfully contribute to the global economy.

It is therefore essential for both government and business to properly recognise and promote the importance of these sectors.

As part of meeting this need for recognition; Science and Innovation Minister Lord Drayson and entrepreneur James Caan recently launched the iawards - the first ever Government backed-awards to celebrate achievements in science, innovation and technology.

Science and Innovation Minister Lord Drayson said:

“Cleantech and renewables will play a huge part in helping the UK economy to grow sustainably, but we need to do more to encourage innovation in these and other high tech sectors.

“And that means recognising our best innovators, those who are creating the household names of tomorrow. The iawards will do just that, this inaugural year and in years to come. Make sure to get your entries in by 16 September!”

James Caan said:

“The UK is home to some of the most innovative minds in the world and we must continue to recognise and celebrate the work of these talented individuals. The iawards are all about recognising British achievements, the visionaries behind them and showcasing new the latest developments that will make the UK a better place to live and work. In doing so, we will continue to draw investment, energy and skills to the high-growth industries that will drive our economy forward.”

Further findings:

- 73 per cent of those polled believe that business and government must work together to promote the development of skills needed to bring the UK out of recession

- One in five of those surveyed chose web 2.0 as the best technological development of the last ten years

The iawards in association with QinetiQ includes 13 categories which are open to all organisations, but all entrants must specify the British involvement in any innovation - demonstrating that innovative thinking and development came from a British organisation or team.

Siemens sponsor the ‘Next Big Thing' category and Microsoft Bizspark sponsor the best technology start up category.

The awards categories reflect the greatest challenges we face as a country where science and innovation offer the best chance of developing viable solutions. Each entry must demonstrate how its innovative qualities relate to at least one of the following challenges:

Addressing the healthcare needs of an ageing society; Increasing international security from tackling global poverty to minimising the threat of terrorism; Preserving finite natural resources in the face of population growth and climate change; and Delivering public services which make best use of new technologies.

They must also demonstrate that the innovation has an impact on one of the Government’s grand challenges for science.

Winners of the awards will be helped by UK Trade & Investment (UKTI) to meet potential business partners at key industry events such as the giant Medica trade fair in Germany and Technology World in Coventry this autumn. They will also receive public relations support from the iawards team. All shortlisted entries and the winners will also have exclusive access to the iawards logo.

Science and technology has been a driving force behind Britain’s export success. Exports for life sciences, for example, rose 19 per cent in 2008.

Innovation is also important in keeping the UK as the number one destination for inward investment in Europe.
UKTI statistics show that the number of investment projects in creative industries increased by 65 per cent in 2008/9 and in software and computer services by 36 per cent.

Industry News-Objectors to wind farms to be bought off

A scheme to reward local people is being considered

Ministers are considering whether to establish a “conservation bank” to help overcome planning objections to wind farms and other

renewable-energy projects. Planning problems have held back British onshore wind farms. Vestas blamed nimby (not in my back yard) objections for its recent decision to shut Britain’s only wind-turbine plant, on the Isle of Wight.

Vestas and other energy groups say planning delays and uncertainties make it riskier to invest in Britain than in other countries, where planning approval can take half the time and there are more lucrative incentives for developers.

Now ministers at the Department for Environment, Food and Rural Affairs think they might have found a way to speed up the system.

For Full details of this article in the Sunday Times Please click here

Political News-Taxpayer may pay for green failures

The failure of Government departments to cut emissions could leave the taxpayer facing large bills under a new carbon trading scheme coming into force next year, MPs have warned.

The Environmental Audit Committee said it was "unconvinced" the Government would exceed its own targets to cut emissions by 12.5% on 1999 levels by 2010/11.A review has shown reductions of just half that (6.3%) were achieved by 2007/08.

The committee also warned the Government was "backsliding" on renewable energy use on its own estate, with the proportion used by departments down to 22% last year from 28.3% in the previous year.

As a result, departments could end up paying money to private companies who are doing better than them at cutting emissions under the new Carbon Reduction Commitment (CRC) scheme, in which the Government is participating.

MPs have urged the Government to invest now in insulation, solar panels and energy efficient combined heat and power boilers in its offices to save money in the long run. The committee also said the Government needed to lead the way on green issues, using its "enormous buying power" to drive the transition to a low carbon economy.

"Leadership on these issues is crucial - the Government can't have one prescription for the country and another for its own operations," EAC chairman Tim Yeo said.

The CRC will require around 5,000 organisations to buy "allowances" costing £12 per tonne for all the CO2 they emit each year, and be judged on how much they are doing to cut their emissions.

Under the scheme, the money for purchasing allowances will go into a central pot and those cutting their emissions the most will get their original payment back plus a bonus, while those doing worst will be penalised by getting less back than they paid in.

MPs are concerned that if the Government does not cut emissions enough, the taxpayer will end up contributing "large sums" to companies who have done more.

To review the full report 'Greening Government' click here

Industry News-Inventors look to crack electric car conundrum

Researchers grappling with the problem of developing the most fuel-efficient electric cars are using micro-jet turbine engines and 'supercapacity' batteries to help energy-conscious consumers drive further.

Background:

The push to develop a viable electric car has been driven by the need to cut greenhouse gas emissions in order to curb climate change and reduce reliance on fossil fuels.

However, technical and logistical difficulties mean developing a mass market electric vehicle is not so straightforward. Critics say electric cars do not have a long enough 'range' (meaning they are not well suited to long-distance driving) and a major overhaul of power supply infrastructure will be required to make electric cars convenient for consumers.

Nonetheless, political support for greener transport has been growing. In an economic recovery package released last year, the European Union earmarked €5 billion for its Green Car Initiative. The US government is also heaping pressure on US automakers to lead the way on clean technologies.

The EU plan includes support for research into electric and hybrid vehicles, but also allocates funds for hydrogen powered-vehicles and fuel cell technology. High density batteries are seen as key to unlocking the problem of making electric cars compete with contemporary petrol engines.

Earlier this year, EU Science and Research Commissioner Janez Potočnik challenged Europe's automotive industry to come up with workable solutions to electrify Europe's transport system by next year.

Companies from Europe, Japan and Israel believe on-board chargers and high-powered battery technology could give them an edge in the race to produce a commercially viable electric car – and investors are beginning to buy into the idea.

A Tel Aviv-based start-up, ETV Motors, has raised €8.4 million for R&D, and has adapted the top-selling Toyota Prius petrol-electric hybrid to test its theory. The new model does not have an internal combustion engine, but instead features an electric engine with a supercapacity battery and a mirco-jet turbine which powers the vehicle from the rear.

The notion of a turbine-powered electric car is not entirely new, but ETV wants to fine-tune its design for the mass market. It says it has developed a micro-turbine engine to act as an on-board charger and a high-density battery that can power a vehicle for about 60-80 km (35-50 miles) on one charge.

The test car uses newly-designed components which are still undergoing development, the company said, adding that the final product should be ready for tests next year.

Another Israeli project, Better Place, was launched in 2007 with €140 million of venture funding. It has been gaining momentum across the globe, pushing for fully electric cars that recharge by plugging in to a grid network.

Better Place has partnered with Renault and Nissan to develop electric car infrastructure, with Nissan expected to focus on the Japanese market, while Renault looks to bring electric cars to European roads by the end of the decade.

Renault unveiled its first demonstration model in Tel Aviv in May 2008, pledging to begin sales by late 2010 – which would make it one of the quickest vehicles to go from concept to market in automotive history.

Renault and Nissan will hold large-scale joint testing events for its new electric cars in Paris and Milan next year, ahead of mass production scheduled for 2012. The trial conducted in the Paris region will include testing of a new car-charging network, which is being developed in conjunction with electricity giant EDF.

"One hundred electric cars from the Renault-Nissan alliance [...] will be tested from September 2010 for a year by individuals, companies and local authority employees," Renault-Nissan and EDF said in a statement.

Toyota Motor Corp, another of the auto giants developing hybrid and plug-in technologies, said it would start leasing 500 plug-in cars globally by the end of this year.

Better batteries

Toyota said its car will be powered by lithium-ion batteries, and Japan's Nikkei business daily reported this month that the plug-in will be able to run 20-30 km (12-18 miles) on battery power alone at full charge.

ETV Motors says its batteries will power a car for more than twice as long. With its on-board charger, the vehicle will not be dependent on a complicated electric charging infrastructure, although it will be plug-in compatible.

The jet turbine system is also a departure from General Motors Corp's Chevy Volt plug-in, which is also powered by a traditional internal combustion engine. GM aims to introduce the Volt, with its 64 km (40 mile) range, by late 2010.

The game-changing development, said chief technology officer Arieh Meitav, was a higher density battery, based on Lithium Manganese Nickel Oxide.

The batteries will be the first to have 4.7 volt cells, in place of existing Lithium-ion batteries with 3.2 volts. This allows for a longer range with a smaller battery, and it is projected to last throughout the car's lifetime, he said.

The second part of the system, the electricity producing micro-turbine, is being developed with the help of an aviation company – though ETV Motors would not say which one.

The turbine can run off a variety of fuel sources, like gasoline, diesel and biofuel, the company said, and will only operate to charge the battery when it runs low, spinning at a constant 80,000 RPM for maximum efficiency.

The full article appears here

Industry News-Not under our backyard, say Germans, in blow to CO2 plans

German carbon capture plan appears to be a victim of 'numbyism' - not under my backyard

It was meant to be the world's first demonstration of a technology that could help save the planet from global warming – a project intended to capture emissions from a coal-fired power station and bury them safely underground.

But the German carbon capture plan has ended with CO2 being pumped directly into the atmosphere, following local opposition at it being stored underground.The scheme appears a victim of "numbyism" – not under my backyard.

Opposition to the carbon capture plan has contributed to a growing public backlash against renewable energy projects, raising fears that Europe will struggle to meet its low-carbon commitments. Last week, the Danish firm Vestas blamed British "nimbies" opposing wind farms for its decision to close its turbine factory on the Isle of Wight.

Many countries continue to use coal for generating power as it is the cheapest and most readily available fuel in the world. It will probably power the development of China and India. But coal is also seen as the dirtiest fuel. So, Vattenfall's Schwarze Pumpe project in Spremberg, northern Germany, launched in a blaze of publicity last September, was a beacon of hope, the first scheme to link the three key stages of trapping, transporting and burying the greenhouse gases.

The Swedish company, however, surprised a recent conference when it admitted that the €70m (£60.3m) project was venting the CO2 straight into the atmosphere. "It was supposed to begin injecting by March or April of this year but we don't have a permit. This is a result of the local public having questions about the safety of the project," said Staffan Gortz, head of carbon capture and storage communication at Vattenfall. He said he did not expect to get a permit before next spring: "People are very, very sceptical."

The spread of localised resistance is a force that some fear could sink Europe's attempts to build 10 to 12 demonstration projects for carbon capture and storage (CCS) by 2015. The plan had been to transport up to 100,000 tonnes of carbon dioxide from the power plant each year and inject it into depleted gas reservoirs at a giant gasfield near the Polish border.

Scientists maintain that public safety fears are groundless: the consequences of escaping CO2 would be to the climate, not to public health. Many big environmental groups support CCS, both off and onshore, as a necessary evil in the battle against climate change.

But Jim Footner, a Greenpeace climate campaigner, said the German protests were "a stark warning to those that think CCS is an easy solution to the huge climate problems of coal-fired power stations".

The first wake-up call came in March, when a Dutch council objected to Shell's plans to store CO2 in depleted gas fields under the town of Barendrecht, near Rotterdam.

This was despite a successful environmental impact assessment and the enthusiastic backing of the Dutch government, which, in September, must decide whether to give Shell the green light, despite the council's opposition.

Wim van de Wiel, a Shell spokesman, said: "For Shell the only suitable location for the tender was, and still is, Barendrecht, because of the safety and the depleted status of the [gas] field."

Jeff Chapman, chief executive of the the Carbon Capture & Storage Association, said Vattenfall should study the example of Total, which made great efforts to engage the local community when it launched its CCS pilot project in Lacq, southern France.

Stuart Haszeldine, a CCS expert at the University of Edinburgh, warned of the danger of opposition towards CCS snowballing into a "bandwagon of negativity" if too many early projects were rejected. "Once you've screwed up one or two of them, people are going to think 'if they rejected this in Barendrecht, there must be a reason'," he said.

In the UK, CCS is one of the four "pillars" of the government's decarbonisation strategy. A spokeswoman for the Department of Energy and Climate Change said: "We plan to store the CO2 from CCS plants offshore, for example in depleted oil and gas fields in the North Sea. We are one of the first countries to have legislation … to regulate environmental and safety risks."

Industry News-Review of UK policy annoucements on the future of energy and transport

Through out the week there was a blizzard of announcements focusing on the future of UK energy and decarbonising transport.

On Wednesday 15th of July the UK government published a white paper called the UK Low Carbon Transition Plan which has three elements; Renewable Energy Strategy, Low Carbon Industry Strategy and the Low Carbon Transport Plan. The paper sets out the government’s plans to meet its target of cutting carbon dioxide emissions by 34 per cent from 1990 levels by 2020.

In general the announcement focused on the renewable sector which is expected to increase its production of electricity from 6 per cent to 31 per cent over the next eleven years to 2020. The government wants to encourage all forms of low-carbon energy, Marine, Biomass, Onshore & offshore wind, nuclear power and clean coal (CCS) power stations that capture and store their emissions.

At the heart of the government's plans are giant offshore wind parks. The renewable energy industry will be given £120m to develop offshore wind technologies. The Government is allocating up to an additional £60 million for a suite of measures which will help accelerate the development and deployment of wave and tidal energy

The government reiterated their support for clean coal power generation and the progress being made in the area but were not forthcoming with any more statements. The June 2009 CCS consultation document along with the four site trials that are being funded will determine the future of the industry in the UK. In a new move the government are to open an Office of Carbon Capture and Storage to support the delivery of CCS. Full details will be announced in the autumn of this year.

Nuclear energy received little mention in the announcement apart from the government saying that it still had a part to play in the energy mix. The government are looking at streamlining the planning and regulatory approvals processes for new nuclear power stations. A national policy statement and a consultation document is due to be launched later in 2009.

The Government will provide capital investment to establish a Nuclear Advanced Manufacturing Research Centre that combines the knowledge, practices and expertise of manufacturing companies with the capability of universities. This will complement the existing Advanced Manufacturing Centres in Sheffield and Glasgow and the Nuclear Laboratory in Sellafield.

Low Carbon Transport Plan

The Low Carbon Transport Plan focussed on decarbonising transport by moving to an integrated transport system with cycling, cars, rail, public transport and aviation all playing their part.

Lord Adonis, the Transport Secretary pledged to reducing CO2 emissions from transport by 14 per cent by 2020. Under the new proposals the government will offer consumers grants of up to £5,000 if they purchase low polluting cars such as electric and plug in hybrids. Under the new proposals only cars that emit 75g per km of C02 or below will be eligible for these grants. The best-performing hybrid in the market in of 2009 is the Toyota Prius emitting 89g/km per KM of CO2.

The transport white paper has been welcomed environmentalists and business groups and is expected to become law by the end of the year. An overall a package of £250m of consumer incentives is being invested by the government to stimulate the take up of electric and plug-in-hybrid vehicles (This £250m figure is not new this announcement was made by Lord Mandelson the spring 2009).

One area where the move to more electric vehicles and hybrids has been falling down is in the area of charging points. There are very few in London and even less per square mile across the UK. This is significant. The move to electric vehicles will be slow if the consumer has the hassle of having no charging points outside their home. There is a serious need for charging points to be rolled out across the UK transport infrastructure quickly.

Recognising this as an issue the government have launched a new Alternative Fuel Infrastructure Grant Programme. The government will also unite Whitehall interests through the new Office for Low Emission Vehicles.

But this will not be the end of the debate. The government are working closely with industry and key stakeholders to develop a roadmap to 2050 by spring 2010. In autumn, the Committee on Climate Change will provide further analysis of the pathway through 2030 to 2050. The Government will work with the Committee, taking its analysis and recommendations into account when developing the roadmap to 2050. So there are several more negotiations and steps to go in the UK energy debate.

Jonny Mulligan

Industry News-Government announces UK Low Carbon Transition Plan

UK at forefront of a low carbon economic revolution

A comprehensive plan to move the UK onto a permanent low carbon footing and to maximise economic opportunities, growth and jobs was published by the Government today.

The UK Low Carbon Transition Plan plots out how the UK will meet the cut in emissions set out in the budget of 34% on 1990 levels by 2020. A 21% reduction has already been delivered – equivalent to cutting emissions entirely from four cities the size of London.

Transforming the country into a cleaner, greener and more prosperous place to live is at the heart of our economic plans for Building Britain’s Future and ensuring the UK is ready to take advantage of the opportunities ahead. By 2020:

• More than 1.2 million people will be in green jobs
• 7 million homes will enjoy pay-as-you-save home energy makeovers, and more than 1.5 million households will be supported to produce their own clean energy
• 40% of electricity will be from low carbon sources, from renewables, nuclear and clean coal
• We will be importing half the amount of gas that we otherwise would
• The average new car will emit 40% less carbon than now.

The Transition Plan takes a cost effective route to reducing carbon and keeps the overall impact on the consumer to a minimum. Today’s plan will not increase average energy bills by 2015, compared to now. By 2020, the impact of ALL climate change policies, both existing and new, will be to add, on average, an additional 8% - or £92 - to today’s household bills. Since 2000 £20 billion has been spent tackling fuel poverty, assisting millions of households in the UK. The Plan includes greater powers for the regulator Ofgem to protect the consumer and, following new legislation, new resources for discounts off the bills of some of the most vulnerable households.

The Transition Plan is the most systematic response to climate change of any major developed economy, and sets the standard for others in the run up to crucial global climate talks in Copenhagen in December.

The UK Low Carbon Industrial Strategy, published alongside, sets out a series of active government interventions to support industries critical to tackling climate change. It puts workers and businesses in the UK at the forefront of massive global opportunity by targeting key industries and regions where the UK has competitive or commercial advantage, including offshore wind, marine power and carbon capture and storage. This includes the first allocations from the £405m funding for green industry and technology announced in the Budget.

Also published today are the Renewable Energy Strategy which maps out how we will deliver the UK’s target of getting 15% of all energy (electricity, heat and transport) from renewables by 2020, and the Government’s Low Carbon Transport Plan which sets out how to reduce carbon emissions from domestic transport by up to 14% over the next decade.

Energy and Climate Change Secretary Ed Miliband said:

“The UK was the first country in the world to legislate for carbon budgets. It was a dramatic change in approach. This is a transition plan for Britain, a route-map to 2020, with carbon savings expected across every sector and a carbon budget assigned to every government department alongside its financial budget.

“Renewables, nuclear and clean fossil fuels are the trinity of low carbon and the future of energy in Britain. Under our plans we will get 40% of our electricity from low carbon energy by 2020 and more in the years afterwards.

“Our plan will strengthen our energy security, it seeks to be fair to the most vulnerable, it seizes industrial opportunity and it rises to the moral challenge of climate change.

“In five months, the world must come together at Copenhagen and follow through on the commitment of world leaders last week to stop dangerous climate change. Today we have shown how Britain will play its part.”

Business Secretary Lord Mandelson said:

“The strategies we are launching today outline the government’s vision for achieving a low carbon future for the UK, reshaping the way we live and work in every element of our lives. This is a challenge that every economy is facing, and we are determined that by setting clear policy now Britain positions itself to benefit both economically and environmentally from the transition.

“The UK is already the sixth largest economy for low carbon goods and services, globally worth £3 trillion and growing, and today the government is outlining how its support for the economy will ensure our businesses and our workforce continue to lead the way. We must combine the dynamism of the private sector with a strategic role for government to deliver the benefits of innovation, growth and job creation in the UK.”

Transport Secretary Andrew Adonis said:

"Transport accounts for a significant amount of our domestic emissions. Therefore decarbonising this sector has to be front and centre of efforts to meet our obligations and commitments to tackle climate change. Our strategy sets out a long-term vision for a fundamentally different transport system in our country, where carbon reduction is a central consideration in the way we do business.

"If we are to safeguard the future of transport then we must also safeguard the environment that it impacts upon – I am determined to do that."

The UK is the first country in the world to set itself legally binding ‘carbon budgets’. Under the Climate Change Act 2008 emissions of greenhouse gases are constrained in each successive five year period. The Transition Plan sets out how we will cut emissions by 34% on 1990 levels by 2020 from the main emitting sectors – power, homes, workplaces, transport and agriculture – on the way to achieving a reduction of at least 80% by 2050. Every government department has today been allocated its own carbon budget, as the Government pilots a new system to run alongside financial budgets.

Departments will have to live within these when taking major policy decisions and managing their buildings. Failure could have real financial implications for Government.

An outline of announcements contained in the documents published today:

THE POWER SECTOR

Around 50% of the annual emissions cuts between now and 2020 will be achieved by further greening of the electricity mix. We expect 40% of the electricity we use in 2020 to come from low carbon sources – 30% from renewables, the rest from nuclear (including new build) and clean coal. We need to all-but eliminate carbon from electricity by 2050.

New today:

• Up to £6m to start development of a ‘smart grid’, including a policy road map next spring.
• DECC to take direct responsibility from Ofgem for establishing a new grid access regime within 12 months.
• Launch of the new Office for Renewable Energy Deployment in DECC to speed up the growth of renewables in the UK.
• £11.2m to help regions and local authorities prepare for and speed up planning decisions on renewable and low carbon energy whilst protecting legitimate environmental and local concerns.
• The final shortlist of the schemes for the Severn Tidal Power feasibility study is confirmed as three barrages (including the Cardiff-Weston barrage) and two lagoons. Three innovative schemes have also won funding to support their development.
• A consultation covering the changes to the existing Renewables Obligation, such as extending the life-time of the RO to at least 2037 and the introduction of a 20 year limit on support, to make it capable of delivering some 30% of our electricity from renewables.
• Approval for the UK’s largest biomass power station on Teesside
  

HOMES AND COMMUNITIES

Around 15% of the annual emissions cuts between now and 2020 will be achieved making our homes more efficient and supporting small scale renewable energy. There are massive cash savings to be made - in a poorly insulated home, up to £1 out of every £3 spent on heating is being wasted.

New today:

• We aim to place the energy suppliers’ social programmes on a statutory footing with increased resources when the current voluntary agreement ends in March 2011.
• Strengthening the energy regulator Ofgem’s powers to protect the consumer.
• ‘Pay as you save’ pilots helping people make their whole house greener by using the savings made on energy bills to repay the upfront costs, backed by up to £4m from low carbon investment funding. An eventual national roll out could create 34,000 jobs.
• Consultation on the shape and rates of a new ‘clean energy cash-back’ scheme (Feed in Tariff) to be in place by April next year. People and businesses that generate their own electricity from low carbon sources will be paid for doing so. A similar scheme for renewable heat will follow in April 2011.
• Extending the current CERT energy efficiency programme by a year to 2012. Alongside an uplift of 20%, total help under the scheme will total £3.2 billion.
• A new personal carbon incentive scheme to challenge people on a voluntary basis to save energy, through the Government’s Act on CO2 campaign.
• Challenging 15 villages, towns or cities to be testbeds for piloting future green initiatives.
  

WORKPLACES AND JOBS

Around 10% of the annual emissions cuts between now and 2020 will be achieved through greater efficiencies in our workplaces. By 2050, our offices, factories, schools and hospitals need to reduce emissions to almost zero. Jobs and business opportunities will be created in new sectors outside the energy sector and help will be needed to support all businesses be more energy efficient.

New today:

• Up to £120m from low carbon investment funding to significantly advance the offshore wind industry in the UK.
• Up to £60m from low carbon investment funding announced in the Budget to cement the UK’s position as a global leader in wave and tidal energy including:
  
  - Up to £9.5m investment in the Wave Hub sub-sea socket off Cornwall and up to a further £10m funding to make the South West the UK’s first Low Carbon Economic Area, a world centre for wave and tidal energy, building on business opportunities and skills.

- Up to £10m for testing facilities at the National Renewable Energy Centre in Northumberland and up to £8m for the European Marine Energy Centre in the Orkneys.

- Up to £22m for a new Marine Renewables Proving Fund for testing and demonstration of wave and tidal technologies.

• £6m of funding to explore areas of potential “hot rocks” to be used for geothermal energy. The deep geothermal resource of the South West of England alone could meet 2% of annual UK electricity demand.
• A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry.
• A new Nuclear Advanced Manufacturing Research Centre to combine the knowledge, practices and expertise of around 30 manufacturing companies with the capability of universities on manufacturing, processes and skills.
• Campaign to be launched later this year to help small and medium businesses in the shift to low carbon.
• The public sector must lead by example. Emissions have already reduced by a third between 1990 and 2007 and DECC has challenged itself to reduce emissions from its own building by 10% in 09/10 with more to follow.
  

TRANSPORT SYSTEM

Around 20% of the annual emissions cuts between now and 2020 will be achieved by cleaning up the way we travel. By 2050, road and rail transport will be largely decarbonised and aviation and shipping will have seen a significant improvement in efficiency.

New today:

• Providing proposed detail on the kinds of electric and plug-in hybrid cars that could qualify for the £2-5000 consumer incentives expected to apply from 2011. This includes the requirement for the vehicle to have maximum tailpipe emissions of 75g CO2/km. An update has also been published on the infrastructure framework which is supporting this scheme.
• A new steering group for the freight and logistics industry to find effective ways of measuring, reporting and reducing emissions across the logistics sector
• Commitment to work with our European partners to develop a robust mechanism for regulating CO2 from new vans.
  

FARMS AND MANAGING LAND AND WASTE SUSTAINABLY

Around 5% of the annual emissions cuts between now and 2020 will be achieved by reducing emissions from agriculture, land use and waste.

New today:

• For the first time ever, an ambition for agriculture to cut emissions. Changes to farming practices can save farmers money and contribute 6% cuts from current projections by 2020.
• Support for anaerobic digestion, a technology that turns waste and manure into renewable energy.
• Support for energy efficient and low carbon farming. Within the limits imposed by the current EU rules on state aid, the Government and the Carbon Trust will work to make farming businesses eligible for its interest-free loans for low-carbon activity.
• Agreeing an action plan with the agriculture sector to reduce emissions and developing an advisory service to help farmers.
• Encouraging private funding for woodland creation.
• Reducing the amount of waste sent to landfill, and better capture of landfill emissions.

For more details click here