Sustainable Development: Finance

Treasury written question – answered on 21st January 2009.

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Photo of Colin Challen Colin Challen Labour, Morley and Rothwell

To ask the Chancellor of the Exchequer with reference to page 125 of the pre-Budget report for 2008, which three years are to be covered by the £50 million of funding for the low-carbon sector; and if he will break down this funding by (a) year and (b) project.

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

The figure of £50 billion brings together Government spending, fiscal support and private investment driven by Government regulation in energy efficiency, renewable energy technologies and public transport over the period of the comprehensive spending review (2008-09, 2009-10 and 2010-11). The estimated breakdown for the full three-year period is set out by theme, as follows:

Technology support

Estimated at £1,200 million including the domestic Environmental Transformation Fund, Research Councils, Technology Strategy Board, Carbon Trust, Energy Technologies Institute and Enhanced Capital Allowances.

Renewables support

Estimated at £5,800 million including private sector investment in renewables and the renewables obligation.

Energy efficiency

Estimated at £9,800 million, made up of CERT, the Community Energy Saving Programme, Warm Front, Decent Homes, the Energy Saving Trust, Smart metering for SMEs and public sector sites, Reduced VAT for Energy Savings Materials, Landlord Energy Savings Allowance, incentives for thermal insulation in industrial installations, and the value of CCL exemptions.

Reducing greenhouse gas emissions from municipal waste

Estimated at £2,200 million including PFI programme and capital grants to local authorities for recycling.

Transmission and electricity distribution infrastructure

Estimated at £7,600 million, including funding to link low carbon power generators to the national grid.

Public transport and low carbon and electric vehicles

Estimated at £23,200 million including spending on rail, Crossrail, TFL and public transport in the devolved Administrations, as well as spending on low carbon and electric vehicles.

The figure published is not exhaustive as it does not include:

The value of 'EU ETS allowances' over this period;

'R and D tax credits' for low carbon R and D;

The significant low carbon investment by 'local authorities' or much of the investment by 'devolved Administrations' and 'RDAs';

Low carbon investment driven 'by building standards regulations';

Low carbon investment driven by 'minimum efficiency standards' for products;

Investment in the 'gas distribution grid' even where this brings new homes on to the gas grid, replacing higher CO2 oil heating systems;

'Stamp duty exemption' for new zero carbon homes;

'Enterprise Investment Scheme' (EIS) and 'Venture Capital Trusts';

Private or public sector spend on other low carbon electricity sources, such as 'nuclear' or preliminary work on the demonstration of 'carbon capture and storage'; and

'UK spend on low carbon technologies in developing countries'.

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