Archived press release

Pre-Budget Report fails to show green leadership

9 December 2009

UK Government attempts to show global leadership on tackling climate change have been undermined by Alistair Darling's woefully unambitious Pre-Budget Report, Friends of the Earth said today.

Friends of the Earth's senior economics campaigner Ed Matthew said:

"With the future of the planet hanging in the balance in Copenhagen, the Pre- Budget Report was a golden opportunity for the Chancellor to demonstrate genuine global leadership in developing a low-carbon future - but he has chosen to be timid when he needed to be bold.

"Some of Alistair Darling's eco-initiatives are certainly welcome, but the economy doesn't need green tinkering - it needs a complete low carbon overhaul.

"He should have announced an ambitious new financial institution - a Green Investment Bank - to build a low-carbon economy and encourage the private sector to invest in greening the UK.

"Investing in the UK's vast renewable energy potential and slashing energy waste would create tens of thousands of new jobs, reduce our reliance on fossil fuels and help create a safer, cleaner future.

"It's time the Government matched its green rhetoric with urgent green action."

Friends of the Earth welcomed a number of initiatives including:

• The Government's acceptance of the recommendation of the Committee on Climate Change that any overachievement against the first carbon budget arising from the downturn should not be carried forward to allow for higher emissions in future.
• £120 million in new money to help develop low-carbon industries - although this is a fraction of what is needed to build low-carbon supply chains and industries.
• £200 million to help homes to cut energy waste - but this just restores a cut previously made to Warm Front. The Government must earmark far greater sums of money to significantly cut emissions from homes, cut fuel poverty and end fuel poverty. Winter deaths from cold have increased dramatically during the recession.
• Plans to make payments to homes for all the electricity that they produce from small scale renewable energy schemes tax free - this extends a welcome existing tax-break to the new scheme. But Friends of the Earth says that the ambition and payments need to be increased when the details are of the scheme are published next month.
• A tax break for electric company cars. The go-ahead given for rail electrification between Liverpool, Manchester and Preston.
• A new scrappage scheme to help up to 125,000 homes replace inefficient boilers.

Notes to Editors:

1. Friends of the Earth urged the Chancellor to introduce measures to rapidly
move the UK towards a low carbon economy, including:

• 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 (£60 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.

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Published by Friends of the Earth Trust