Renew On Line (UK) 29

Extracts from the Nov-Dec 2000 edition of Renew
These extracts only represent about 25% of it

Spending Review 2000 DETR allocations

‘INVESTING IN A CLEANER FUTURE’

The Chancellor's Spending Review 2000 announcement in July pointed to increased resources for investment in the environment including support for sustainable agriculture, promoting emissions trading, energy efficiency, renewable energy and recycling. Details of specific allocations have been emerging, including those for the Department of Environment, Transport and the Regions (DETR).

The largest single programme involves a £140m boost for business investment in low carbon technologies, so as to help to tackle climate change. £27m from the SR2000 will be used to accelerate business take-up of energy efficient technologies, especially by SMEs, mainly through the creation of a new Carbon Trust. The Trust will bring together, under one roof, a ‘fully integrated programme’ of incentives worth in total over £140m annually, including:

• a major new low carbon R&D and demonstration programmes to bring forward low carbon technologies
• an expanded business energy auditing and advice service building on the Energy Efficiency Best Practice Programme; and
• a scheme of tax incentives for low carbon investments worth up to £100m next year.

Also helping to tackle climate change, a further £30m has been allocated under SR2000 to an Emissions Trading Incentive Scheme. This signals concrete backing for an early start for a UK scheme to enable companies to volunteer for challenging targets to cut emissions and deliver genuine environmental improvement.

Overall, DETR minister Michael Meacher confirmed, England will benefit from an extra £650m funding from SR2000 for environment, countryside and other programmes over the coming three years. Resources for DETR's environment programmes will increase by £27m(2001/2), £101m (2002/3) and £175m (2003/4) over existing plans, providing an average 10% in real terms increase annually to deliver:

help to improve energy efficiency in business

a cut in fuel poverty for 600,000 vulnerable households, e.g via the New HEES scheme

direct support for local authorities to promote sustainable waste management and to raise levels of household waste recycled or composted to 17 per cent by 2004.

Michael Meacher commented:

"Sustainable development is at the core of government policy and the Chancellor's SR 2000 statement highlighted the need to invest in health, transport, the environment and in law and order to ensure a more productive economy and security for all. Climate change is one of the greatest environmental challenges we face. The new funds for the Carbon Trust will boost UK business investment in low carbon technology and play an integral part in the Climate Change Levy Package. It will help business to do its bit for the environment and to take advantage of new energy saving technologies."

New DETR programmes

Carbon Trust

The Carbon Trust will be set up alongside the Climate Change levy - around April 2001 - and will be run by a company limited by guarantee. According to the DETR ‘it has wide business support - designed with the help of the Advisory Committee on Business and the Environment and will incorporate the successful Energy Efficiency Best Practice Programme. It will be set up to work seamlessly alongside other players in the energy efficiency field - principally the Energy Saving Trust.’

The Trust will serve as the focus for strategic and executive action ‘to ensure business adapts successfully to the challenges presented by climate change’. In particular, it will ‘help business make a full contribution to the UK's Kyoto obligations and towards achieving our domestic CO2 reduction goal by 2010. The Trust will be business-led, and will maintain competitiveness and prepare business for future climate change targets’.

Emissions Trading Incentive

According to the DETR, the £30m allocation to support trading in greenhouse gas emissions is designed to ‘enable companies to take on the risks associated with challenging emissions reduction targets, ensuring that the emissions trading scheme will deliver genuine environmental improvement’. It will allow targets to be taken up from 2002, with trading getting underway during 2001- although it seems the funds won’t actually be available until 2003-2004.

The DETR added ‘Work on the development of emissions trading in the UK is already enabling the Government to play a leading role in the development of european and international emissions trading markets. And an early start for the UK scheme will enable UK businesses and The City to drive the market, ahead of plans for European and international schemes to enter into operation over the next few years.’

The CBI and ACBE (Advisory Committee on Business and the Environment) set up the UK Emissions Trading Group (ETG) in June 1999. The ETG was supported in the first instance by 25 major UK companies. It also received the backing of Ministers from DETR, DTI and HM Treasury. Support from the business sector has subsequently grown to include over 100 major companies and trade associations, with numerous academic and environmental NGOs also playing a leading role. The Government says it will ‘continue to work closely with the ETG and others to turn the blueprint into an operational framework for emissions trading’.

Waste Management

New resources will ensure major support for more sustainable waste management:

£140m of new money to give central support to council recycling

a share of £1127m general increases in local authority provision, additional support through Public Finance Initiatives.

The increased provision ‘will help councils achieve their statutory targets which will double recycling in three years to 17% and nearly triple it in five to 25%'. There will also be support to develop markets for recycled materials - the new WRAP programme.

Energy Efficiency

Fuel poverty in 600,000 vulnerable households will be cut over 2001-04 through the New Home Energy Efficiency Scheme. About half those benefiting are likely to be aged 60 years or over. New HEES, in operation since June, offers complete insulation and heating packages.