Archived press release

Chancellor urged to invest in green economy to cut deficit

11 October 2010

Unions, businesses and green campaigners are calling on the Chancellor to lead the UK out of recession by investing in a low-carbon economy in a joint letter today.

The Trades Union Congress, the Aldersgate Group and Friends of the Earth have written to George Osborne asking him to protect vital green measures in the 20 October spending review.

This call coincides with a TUC conference on climate change, attended by Energy and Climate Secretary Chris Huhne, which links building a greener Britain with our economic recovery.

Friends of the Earth's Director of Policy and Campaigns, Craig Bennett, who will speak at the conference about the economic benefits of tackling climate change locally, said:

"The downturn gives the Government a chance to make a new start - leading the UK out of recession by building a prosperous low-carbon economy that is not dangerously dependent on coal and oil.

"Green investment is urgently needed to unlock the massive jobs potential of new technologies and industries like off-shore wind, and support energy efficiency schemes that will save businesses, local authorities and taxpayers billions of pounds a year.

"We also need a nationwide system of local carbon budgets to help every area do its bit to tackle climate change - this would create jobs, slash fuel bills and help stimulate our green economic recovery."

Key green measures the Chancellor is being asked to include in the spending review:

• a properly capitalised Green Investment Bank - at least £4-6 billion, so it can attract vital private sector money;
• the Renewable Heat Incentive and feed-in tariff to be kept intact - to avoid damaging investor confidence and help the UK meet its targets on producing more renewable energy and cutting carbon dioxide;
• investment in essential infrastructure to bring manufacturing industry to the UK - such as the promised £60 million upgrade for ports;
• continued funding for the Carbon Trust and Energy Saving Trust - which have already saved businesses, households and the public sector £4 billion through energy efficiency schemes, helping reduce the UK's dependence on unsustainable fossil fuels;
• Investment in education and skills to ensure the UK has the expertise to develop new green technologies and industries.

ENDS

Notes to editors

1. Read Friends of the Earth's briefing on the comprehensive spending review: Investing in a green economy 
2. The TUC conference Alliance for a Green Growth is taking place in London today [Monday 11 October]
3. Reports suggest the promised £60 million upgrade for ports may be scrapped in the spending review, with a loss of 60,000 potential jobs
4. All parties committed to introduce the Renewable Heat Incentive - a guaranteed long-term payment that encourages people to generate clean green heat from sources like solar thermal panels - in April 2011. Now reports suggest it may be delayed or watered down.

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Published by Friends of the Earth Trust