The Chancellor of the Exchequer today made his Budget Statement to the House of Commons. The 2011 Budget contains measures designed to hasten the speed and scale of investment in low carbon energy projects:

Green Investment Bank

The Green Investment Bank is a crucial part of ensuring the infrastructure development needed to enable the transition to a green economy. The Budget announces that the initial capitalisation of the Bank will be £3 billion, that it will begin operation in 2012/13 and that it will have borrowing powers from 2015/16 and once the target for debt to be falling as a percentage of GDP has been met.

Carbon Price Support

A stronger, more stable carbon price is also a vital signal to energy investors. The Government is introducing a floor to the carbon price for electricity generation from April 2013. This will start at around £16 per tonne of carbon dioxide and move to a target price of £30 per tonne in 2020.

Energy and Climate Change Secretary Chris Huhne said:

“There’s a clear, long term signal to energy investors in today’s Budget. A Green Investment Bank with substantially more capital and borrowing capacity and a stronger, more stable carbon price put investment in green energy technologies at the heart of the coalition’s strategy for sustainable, balanced economic growth.”

Source: DECC