Decision-makers joined industry leaders and influencers to welcome today's details of Government support for a low carbon future.
Energy and Climate Change Secretary Ed Miliband said: “This Budget will help propel the UK further and faster towards the green industries of the future.
“The green investment bank, new support for wind turbine manufacturing sites and the first findings of our work to reform the energy market are all critical.
“Jobs, growth, energy security and the fight against climate change are all winners.
“Today’s Budget also includes substantial savings by DECC through smarter government.”
RenewableUK, the country’s leading renewable energy association, commended two key green industry measures in today’s Budget: money for ports which service the UK’s burgeoning offshore sector and the founding of a ‘Green’ bank, funding growth of renewable technologies.
The £60 million pledged for ‘development of port sites to support offshore wind turbine manufacturers’ has long been advocated by RenewableUK. It is expected to help put the UK on the map as a base for rolling out offshore wind developments in the North and Irish Seas, and offer alternatives to more established port facilities on the Continent.
Dr. Gordon Edge, RenewableUK Director of Economics and Markets, said: “RenewableUK has maintained that investment in ports at this stage will reap significant rewards in the future. We are pleased that the Government has taken this on board. This investment will enable the UK to compete with established ports in Europe involved in offshore wind farm deployment. It is smart money well pledged, as it will create a significant number of jobs by 2020 and help British businesses benefit from Round 3.”
Edge furthered commented on the plans to form a ‘Green’ bank by saying that there is a lot of industry and environmental sector support for the idea.
“It is important, however, that any ‘Green’ bank is seen as a catalyst for wider investment. We need to attract substantial capital into the sector, from a wide base of potential lenders and investors. This bank needs to be one piece of the funding package, without taking away responsibility from other finance institutions.”
James McNaught-Davis, Managing Partner at WHEB Ventures, the cleantech venture capital specialist and member of the BVCA’s Energy, Environment and Technology Board (EETB), said: “WHEB Ventures has been investing private capital in UK technologies for over eight years and has long seen both the benefits and the opportunities associated with supporting the growth of a low carbon economy.
“As part of the EETB, I support the creation of a Green Investment Bank (GIB) and welcome the announcement today as a response to the BVCA’s recent recommendations.
“However, I would prefer that the GIB’s remit is far closer to that proposed last week by the Conservative Party not least in an explicit recognition that it shouldn’t crowd out private sector investment while providing an energetic catalyst for increased private sector investment in clean technology ventures as well as in renewable energy projects.
“I’d also like to see all relevant quangos consolidated into it, thereby reducing current resource overlap and cost duplication between them.”
Juliet Davenport, CEO and Founder of Good Energy, said: “The Government’s announcement of a £2 billion Green Infrastructure Fund is welcome news and it is good to see the environment making a return to the election campaign. However, we must ensure that this money does not simply get swallowed by larger projects and companies.
“The environmental SME sector could be a major force in the UK and needs support more than the bigger players. We have a willing army of energy entrepreneurs in this country with projects ready to go.
“A small injection of capital to support these independent projects would then help them secure the relevant private investment to bring their projects to fruition. If we are to have an environmental revolution in this country we need to let a thousand flowers bloom."
“It is good to hear that the Government is supporting the development of green and electric transport. However, if we are to create a truly green electric transport infrastructure, we must ensure that the car charging points in every town centre run from 100% renewable electricity only.
“This is the only way to ensure that the transport sector reduces its emissions rather than just causing them to be produced in power stations elsewhere.”
Steve Mahon, CIO at AIM-listed cleantech VC fund Low Carbon Accelerator said of plans for the green investment bank: “Public sector funding for early stage innovative companies is very fragmented at present so a green investment bank should simplify this.
“However, £2billion won't go far if it is intended for nuclear and other larger scale technologies. The time-lag for introduction of the fund is also worrying considering the very real financial problems many innovative technology companies are facing. The sector needs the money now if it is to achieve its potential.”
Rachel Whittaker, a Senior Consultant at the Responsible Investment Team at global consultancy firm Mercer, commented: "This is a positive step to encourage greater private sector investment in renewable energy infrastructure and to support Britain's carbon emission reduction commitments.
“The reference to a green investment bank rather than a green fund, as well as broad political support for the concept, suggests there is potential beyond the initial planned investment - which itself is a fraction of the investment needed to support the shift to a low carbon economy.
"It will be vitally important that the initiative takes a long-term view, promoting investment in a broad range of projects that provide genuine positive environmental and social benefits, in addition to making sound economic sense."
Reacting to the Budget, Campaign for Better Transport welcomed the green infrastructure bank and spending on fixing potholes and greener buses, but said that the Budget had postponed tough choices on transport spending and taxation.
Director Stephen Joseph said: “Spending on greener transport and fixing roads is welcome, but the real choices will come after the election. Green transport should be the cheapest option for commuters and travellers. But the danger remains that the next Government will continue to hike rail fares while abandoning planned fuel duty increases, thus making motoring cheaper. Fuel duty increases should be linked with reductions in rail fares and increased investment in public transport.
“We’re disappointed there was no action to tax business jets, which currently pay no fuel tax and in many cases pay no Air Passenger Duty either.”
“The Budget ducked some of the tough transport spending choices. While high speed rail might be attractive, it’s a long term project. In the meantime, the short term spending pressures could hit everyday transport like local bus and rail services with service cuts and fares rises. The new infrastructure bank is welcome, but it must be used to fund green urban transport schemes such as trams, as well as electric cars.”
The influential Aldersgate Group also support the Budget's announcement for a Green Investment Bank.
In a statement, Chairman Peter Young said: "The new Green Investment Bank is rightly at the heart of the Government's growth and jobs strategy. This will help leverage private sector funds at sufficient scale to deliver a swift and competitive transition to a low carbon economy."
"The initial £2 billion of equity is a good start but must be rapidly scaled up over the next Parliament. The total low carbon investment needed by 2020 is at least £250 billion, leading to more secure jobs and a more prosperous future."
Friends of the Earth has welcomed Government plans, unveiled in today's Budget, to set up a Green Investment Bank. The environmental campaigning charity has played a leading role in the campaign for one since January 2009.
Friends of the Earth's Executive Director Andy Atkins said: "The Government's announcement to set up a Green Investment Bank is fantastic news - it should be a crucial building block in the creation of a safe, clean and prosperous future.
"This bank will provide crucial funds for major green developments, such as off- shore wind projects, which will slash emissions, increase our energy security and create thousands of new jobs.
"We must do much more to build a low carbon economy - but today's announcement is a massive stride in the right direction."
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