Archived press release

Pre-budget report must fast-track a low-carbon economy

8 December 2009

Urgently developing a low-carbon economy must be a central element of Alistair Darling's Pre-Budget Report, Friends of the Earth said today ahead of the announcement [Wednesday 9 December 2009].

The green group is urging the Chancellor to show the world - currently focused on the UN climate summit in Copenhagen - that Britain is prepared to show real leadership by introducing emission-slashing policies. Friends of the Earth's senior economics campaigner, Ed Matthew, said:

"As the world attempts to thrash out a climate agreement in Copenhagen, the Chancellor could be showing real international leadership by spelling out comprehensive plans to transform the UK to a low-carbon economy.

"Cutting emissions must be at the heart of the Pre-Budget Report - slashing energy waste, developing the UK's vast renewable energy potential, ending fuel poverty and creating tens of thousands of new green jobs."

Friends of the Earth is urging the Chancellor to:

• Establish a Green Bank
A Government-backed financial institution could provide direct investment, loans and guarantees to drive forward renewable energy and energy saving schemes and ensure the UK is at the forefront of international efforts to efforts to tackle climate change. It could also encourage over £100 billion extra in private sector investment in a low-carbon economy.

• Raise new funds through government-backed green bonds.
This would raise additional funds that would be specifically aimed at low carbon infrastructure such as green energy investments and programmes to halt energy waste through poorly insulated buildings.

• Signal a greater level of ambition for the Government's feed-in tariff scheme.
Feed in tariff's provide a guaranteed payment to homes, businesses, farmers and communities for all the electricity that they produce from small scale renewable energy schemes. But Friends of the Earth says that the UK scheme, which will be introduced next year, should be improved. Friends of the Earth estimates that an improved scheme could see small-scale renewable energy schemes such as solar panels and community wind turbines generate as much electricity as two. The Chancellor should announce that the Government will increase the level of ambition of the scheme when it sets out the details in January.

• Commit to delivering the UK's fair share of global climate change finance for developing countries from public sources.
The Government has called for a global fund of $100bn (£122 bn) from 2020 largely funded through carbon markets (offsetting), plus a short-term fund of $10 billion (£6 bn) until 2013. A recent UN report has suggested as much as $500-600 billion may be needed annually.Friends of the Earth is demanding that the UK deliver its fair share of global finance through public funds and not through carbon offsets because they are a con which will fail to deliver either the money and the carbon reduction:
http://www.foe.co.uk/resource/reports/dangerous_obsession_sum.pdf
It is also demanding that the funds are administered through the UN and not institutions such as the World Bank.

Notes to Editors:

1. For further information on Friend of the Earth's position on feed-in tarrifs, visit:
http://www.foe.co.uk/resource/press_releases/feed_in_tariffs_30112009.html

2. Friends of the Earth is part of Stop Climate Chaos Coalition, the UK's largest group of people dedicated to action on climate change and limiting its impact on the world's poorest communities. The coalition's supporter base of more than 11 million people spans over 100 organisations, from environment and development charities to unions, faith, community and women's groups. Together we demand practical action by the UK to keep temperatures well below an average 2 degree rise. For further information visit www.stopclimatechaos.org

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Published by Friends of the Earth Trust