Building a low-carbon recovery
The UK has led the world in taking a strategic and long-term approach to the problem of climate change. Existing Government policies are already enabling £50 billion of low-carbon investment over the three years to 2011, and supporting 900,000 jobs. Budget 2009 builds on these foundations and provides £1.4 billion of extra, targeted support in the low-carbon sector. Budget 2009 announces:
- to strengthen the long-term policy framework and give UK industry the confidence to invest in low-carbon technologies, Budget 2009 sets the world's first carbon budgets, at a legally binding level of 34 per cent reduction in emissions by 2020, a new level of ambition for UK climate policy;
- building on the one million homes insulated last year, an additional £375 million to support energy and resource efficiency in businesses, public buildings and households over the next two years, and £70 million for decentralised small-scale and community low-carbon energy, saving households and businesses money on bills;
- to help the UK prepare for a low-carbon energy future a new funding mechanism to support at least two carbon capture and storage demonstration projects, and £90 million to fund detailed preparatory studies;
- to help make the UK a worldwide leader, £405 million to support low-carbon industries and advanced green manufacturing, such as wind energy; and
- to support the public finances, while also driving the move to a low-carbon and resource-efficient economy an increase in fuel duty of 2 pence per litre on 1 September 2009, and of 1 penny per litre in real terms each year from 2010 to 2013. This will contribute to medium-term fiscal consolidation, and save two million tonnes of carbon dioxide (MtCO2) per year by 2013-14.