The UK's Ruling Conservatives Abandon Climate Change Leadership

Despite recent historic flooding in the UK, the British government's March 19 budget confirmed that it is all but abandoning efforts to combat climate change. The writing was on the wall with the appointment of Owen Paterson as environment secretary in 2012.

Owen Paterson

UK Conservatives sent a powerful message when Owen William Paterson was appointed Secretary of State for Environment, Food and Rural Affairs in 2012. Despite his moderate climate change voting record, he is a climate change skeptic, who is resistant to the science. He ignored David MacKay's offer of a briefing on climate change science.

Paterson stated on BBC Radio 4's "Any Questions?" in June 2013 that "the temperature has not changed in the last 17 years ...". In addition to his resistance to climate science, Paterson is known as a strong supporter of fracking and GMOs.

Paterson is not climate friendly. Overall there has been a 41 percent redution for domestic climate change initiatives. As Bob Ward, policy director at the London School of Economics' Grantham Research Institute, put it: 'These shocking figures should worry everyone in the UK. Defra [Department for Environment, Food and Rural Affairs] is the lead government department for climate change adaptation and is primarily responsible for making the UK resilient to the impacts of global warming, such as increased flood risk.'

UK Budget

The reversal of the UK's ruling conservatives from champions of efforts to combat climate change to deniers is personified by Chancellor George Osborne. He once promised that his Treasury would be "at the heart of this historic fight against climate change", now he gives billions in tax concessions to the oil and gas industry, cuts the funds for onshore wind farms and strips the Green Investment Bank of the ability to borrow and lend.

On March 19, Osborne delivered the UK's 2014 budget which sidelined the government's energy and climate policies. His budget favors short term economic gain over long term benefits provided by curbing the emissions of manufacturers.

He froze the UK's top up carbon tax at £18 per tonne of carbon dioxide until the end of the decade. This may very well represent a lease on life for some old coal plants. Rather than make energy intensive industries pay the costs of two policies designed to support renewable energy generation Osborne provided the UK's dirtiest companies an additional compensation package worth £3 billion (this package is in addition to existing packages which amount to a total of £7 billion).

Mr Osborne has made himself clear with the comment that he wanted to squeeze “every drop of oil we can” from the North Sea. 

There was no mention of low carbon infrastructure projects like those in renewable energy. This comes on the heals of the cancellation of a number of high profile renewable energy projects in recent months. While Osborne did mention the continued development of renewable energy, he did so alongside expanded shale gas development.

Osborne does not appear to be listening to David Cameron who said climate change is “one of the most serious threats that this country and this world faces.” The Prime Minister told parliament that he "very much suspected" the floods were due to climate change, and that the UK could expect more of the same in coming years. Rather than addressing the problem of climate change through mitigation strategies, Osborne is spending £140 million on adaptation in the form of flood repairs and maintaining existing flood defenses. 

The new budget sends a message to voters and the rest of the world that the government of the UK has disengaged from its efforts to combat climate change. Instead of the greenest government ever in the UK we are seeing the same kind of myopic policy positions that created the climate crisis in the first place. While the current Conservative government in the UK warrants criticism, they are preparing for the next election cycle by pandering to the popular will.

British citizens, like so many others around the world still do not understand that focusing only on short term economic benefits imperils their own well being and condemns future generations.

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Video - The Late Margaret Thatcher's Views on Global Warming

Margaret Thatcher, died on Monday April 8th 2013 at the age of 87 and while she was widely maligned for her economic and social policies, she was a surprisingly ardent supporter of action on global warming. This view was on display in a speech she gave in 1990 at the second World Climate Conference, in Geneva, Not only did she believe that climate science was credible, she acknowledged that global warming was threat to the UK and the world and she applauded the work of groups like the UN's IPCC.

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Margaret Thatcher was a Supporter of Climate Science and an Advocate of Global Emissions Reductions

Margaret Thatcher, the UK's Iron Lady, supported climate science and called for global action on emissions reductions. Thatcher, who died on Monday April 8th at the age of 87 was widely maligned for her economic and social policies, but she was a surprisingly ardent supporter of action on climate change. The former Prime Minister of the UK ruled Britain with an iron fist for more than a decade. She was a visionary and a pragmatic ideologue who believed in the veracity of climate science long before her contemporaries.

Thatcher was a climate pioneer who was one of the first world leaders to voice concerns about climate change. The late Prime Minister's support for climate science was in evidence in a speech she gave in 1990 at the second World Climate Conference, in Geneva. Not only did she believe that climate science was credible, she acknowledged that global warming was a serious threat and she urged the world to act.

In the 1990 speech she stressed the importance of climate science and supported the work of the UN's Intergovernmental Panel on Climate Change (IPCC) as well as other organizations.

"The danger of global warning is as yet unseen, but real enough for us to make changes and sacrifices, so that we do not live at the expense of future generations," she said. "Our ability to come together to stop or limit damage to the world's environment will be perhaps the greatest test of how far we can act as a world community."

Perhaps it was her education in chemistry at Oxford University that drove her to embrace climate science at a time when conservatives were either derisively denying it or at the very least saying the issue required further study. Thatcher went beyond supporting the veracity of the science and clearly wanted to see an international agreement on climate change.

"Our immediate task is to carry as many countries as possible with us, so that we can negotiate a successful framework convention on climate change in 1992," she said. "To accomplish these tasks, we must not waste time and energy disputing the IPCC's report or debating the right machinery for making progress."

Despite her support, 20 years later the world has yet to find the formula for global emissions reductions. Although Thatcher did repudiate Al Gore in 2002, she nonetheless was a champion of action on climate change well before the issue was politicized.

© 2013, Richard Matthews. All rights reserved.

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The UK is Depriving Children of a Climate Change Education

In the UK the government wants to remove climate change from geography lessons for students under 14 years of age. This move is highly controversial as climate change is a serious threat to societal well being in Britain. Environmental problems are only going to intensify going forward. The next generation is going to inherit a world that will demand educated people capable of understanding and addressing these threats.

Ignorance is the single greatest impediment to environmental action. Education plays a fundamental role in dispelling ignorance and improving the ways we interact with the environment.

Those under 14 are the leaders of tomorrow, depriving them of a solid education regarding the science of climate change is a handicap that the nation simply can't afford.  It is the older generation who created the problems we face and they are not only failing to act on climate change themselves, but they are seeking to deprive young people of the education they need to have a fighting chance of improving our world.

The old have failed and while they may be beginning to act, it will be left to the young to salvage hope for the future. It is therefore imperative that we keep climate change in the curriculum in order for young people to be given the tools they need to understand and engage this daunting challenge.

A petition is being circulated to tell UK environment minister Michael Gove not to eliminate climate change education for students under 14 years of age. To add your name to the 25,000+ that have already signed the petition click here.

© 2013, Richard Matthews. All rights reserved.

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Climate Week is Britain’s Biggest Climate Change Campaign

Britain's Climate Week is inspiring a new wave of action to create a sustainable future. Culminating in a week of activities, it showcases practical solutions from every sector of society.

Each year, half a million people attend 3,000 events in Britain’s biggest ever environmental occasion. Events are run by schools, businesses, charities, councils and many others.

Climate Week is a supercharged national occasion that offers an annual renewal of our ambition and confidence to combat climate change. It is for everyone wanting to do their bit to protect our planet and create a secure future.

Climate Week shines a spotlight on the many positive steps already being taken in workplaces and communities across Britain. The power of these real, practical examples – the small improvements and the big innovations – will then inspire millions more people.

Thousands of businesses, charities, schools, councils and others ran events during Climate Week on 12-18 March 2012. They showed what can be achieved, shared ideas and encouraged thousands more to act during the rest of the year.

Climate Week has support from every part of society – from the Prime Minister to Paul McCartney, the NHS to the Met Office, Girlguiding UK to the CBI, the Big Lottery Fund to the National Association of Head Teachers.

Events include talks, workshops, training sessions, open days, exhibitions, and other activities. People are also taking part in Britain’s biggest live environmental competition – the Climate Week Challenge and the prestigious Climate Week Awards.

The official Climate Week Champions and Advisors:

Siemens - Climate Week Electrical Engineering Champion
Ipsos MORI - Climate Week Market Research Advisor
Met Office - Climate Week Lead Science Advisor
Reynolds Porter Chamberlain LLP - Climate Week Legal Advisor

To find an event click here.

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Event - Feed-in Tariffs Policy: Market Certainty, Diversity and Growth

This event will take place on February, 5th 2013, in the UK. This seminar will review Feed-in Tariffs: findings from the Comprehensive Review and the way forward. This event will be a timely opportunity to assess the next steps for small-scale low-carbon electricity generation in the UK following a year of uncertainty. Guest of Honour: Thomas Buss, Head of Microgeneration, E.ON Sustainable Energy.

This seminar will be a timely opportunity to assess the next steps for small-scale low-carbon electricity generation in the UK following a year of uncertainty. It is being organised as Government prepares to introduce the next wave of tariff reductions for the Feed-in Tariffs (FITs) scheme, following the completion of its Comprehensive Review.

Delegates will assess the future of UK electricity microgeneration as the Government seeks to put FITs "on a more predictable, certain and sustainable footing" - against a background of changes such as further reductions in tariff levels for solar PV installations, an increase in the export tariff and shortening the scheme's lifetime for consumers from 25 years to 20 years.

Following the publication of the final phase of the Comprehensive Review, which has set tariff levels for other technologies such as wind, anaerobic digestion and micro CHP, further sessions will focus on the impact of the inclusion of these technologies into the scheme. The long-term strategy required for the microgeneration industry as it seeks to play a significant role in Britain's clean energy economy will also be a major focus for discussion, in light of the expected inclusion of solar power into the Government's updated Renewables Roadmap later this year.

We are delighted that Thomas Buss, Head of Microgeneration, E.ON Sustainable Energy; Gaynor Hartnell, Chief Executive, REA (Renewable Energy Association) and Dave Sowden, Chief Executive, Micropower Council have both kindly agreed to deliver keynote addresses at this seminar.

Further confirmed speakers include: Adam Davidson, Director, Walker Morris; Ed Gill, Head of External Affairs, Good Energy; Dr Adam Hawkes, Lecturer in Energy Economics and Technology, Imperial College London; Nigel Hollett, Head of Environmental Technologies, SummitSkills; Shaun Jamieson, Partner, Construction, Energy and Projects, Hugh James; Ray Noble, Solar PV Specialist, Solar Trade Association; Matthew Rhodes, Managing Director, Encraft and Dr Jonathan Scurlock, Chief Adviser, Renewable Energy and Climate Change, National Farmers' Union.

Peter Aldous MP, Member, Environmental Audit Select Committee and John Robertson MP, Member, Energy and Climate Change Select Committee have kindly agreed to chair this seminar.

For more information or to register click here.

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US Climate Change Policy: Hurricane Sandy, Drought and Rising Sea Levels (Video)

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Transforming the UK's Electricity Market (Event)

The event Transforming the UK's electricity market deals with the situation one year on from the Reform White Paper and the Ofgem Review. It will take place on July 12, 2012. Delegates will assess the ongoing transformation of the UK's electricity system. Planned sessions focus on the progress that is being made, and the next steps in delivering the key elements of the market reform package including discussion on taking forward the Emissions Performance Standard and Carbon Price Floor for decarbonising electricity, and the proposed Capacity Mechanism for ensuring the future security of electricity supplies. In the context of market regulation, the agenda also includes discussion on the extent to which the regulatory environment has been strengthened since the Ofgem Review, as well as the further work that is required to ensure the protection of consumers and that investment in the energy sector is cost-effective.

Jonathan Brearley, Director, Energy Markets and Networks, Department of Energy and Climate Change and David Porter, Chief Executive, Energy UK will deliver keynote addresses at this seminar.

Further confirmed speakers include: Jeremy Chang, Director, Energy Projects Team, Pinsent Masons; Audrey Gallacher, Director of Energy, Consumer Focus; Malcolm Keay, Senior Research Fellow, Oxford Institute for Energy Studies; Jostein Kristensen, Managing Consultant, Oxera Professor Catherine Mitchell, Professor of Energy Policy, University of Exeter; Dr Barrie Murray, Managing Director, Electricity Market Services; Dave Openshaw, Head of Future Networks, UK Power Networks; Dr Douglas Parr, Chief Scientist, Greenpeace UK; Ronan O'Regan, Director, PwC; Dr Andy Stanford-Clark, Chief Technology Officer for Energy and Utilities, IBM Global Business Services, UK and Ireland; Paul Steedman, Senior Campaigner, Campaigns Specialist Team, Friends of the Earth and John Wood, Partner, Norton Rose.

Rt Hon the Lord Fraser of Carmyllie QC, Treasurer, Parliamentary Group for Energy Studies and Barry Gardiner MP, Member, Energy and Climate Change Select Committee will chair this seminar.

For more information click here.

© 2012, Richard Matthews. All rights reserved.

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London Cleantech Cluster (Event)

London Cleantech Cluster is produced by Rushlight Events. It will take place in London, UK. This event will provide a platform to bring together all the various initiatives, activities and programmes undertaken by organisations throughout the region to support the development of cleantech businesses and to facilitate the deployment of sustainable alternatives.

The London Cleantech Cluster (LCC) brings together the hugely impressive initiatives, activities and programmes undertaken by organisations in the Greater London area developing new clean technologies and innovations, facilitating the deployment of sustainable alternatives and rolling out sustainability across the region.

LCC provides a platform to assist with the promotion of these activities, a means by which they can be effectively coordinated and a range of programmes to identify where gaps exist in the support that is needed to effect a successful cleantech sector in a leading sustainable region.

LCC activities will be driven by its members, supporters and the outcome of programmes undertaken by the community. There will be Special Interest Group meetings, specific programmes, special projects, networks and other events.

To find out more and to participate from the start, come to the LCC launch event from 5.30pm on Wednesday 18 July at Taylor Wessing in London.


Agenda

5.30pm Registration

6.00pm Welcome - Taylor Wessing LLP

6.10pm London Cleantech Cluster - Clive Hall, Rushlight Events

6.30pm London Hydrogen Partnership - Dennis Hayter, Intelligent Energy

6.40pm International Outreach - Anne McIvor, Cleantech Investor

6.50pm Q&A

7.15pm Networking

9.00pm Close

You will find out about the cluster, who is already involved, what it will be doing and how you can participate. This will also be an excellent networking opportunity as there will be a large number of active sector participants attending from across the region.

For further details and registration, please click here.

© 2012, Richard Matthews. All rights reserved.

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Four Training Events From the Green Power Academy

Here are four events taking place in London UK produced by the Green Power Academy. They will be taking place between the 13th and the 18th of July 2012. These four events involve renewable technologies, economics and financing. For more information and registration information see below:

1. Renewable Power Technologies A 1-day introduction to the key technologies available to generate clean power. This event will take place on 13-July-2012.

For more information or to register click here.

2. Renewable Power Economics: A 1-day introduction to the factors which determine the business case for renewable power. This event will take place on 16-17-July-2012.

For more information or to register click here.

3. Renewable Project Planning & Financing: A 2-day comprehensive introduction to preparing, financing and presenting business plans for renewable energy projects. This event will take place on 16-18-July-2012.

For more information or to register click here.

4. Renewable Power Technologies: A 1-day introduction to the key technologies available to generate clean power. This event will take place on 18-July-2012.

For more information or to register click here.

© 2012, Richard Matthews. All rights reserved.

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International Conference on Waste Management and the Environment 2012 (Event)

On the 4th to the 6th of July in New Forest, UK, an event will take place titled the International Conference on Waste Management and the Environment. The event is organised every two years by the Wessex Institute of Technology in collaboration with other renown institutions. Waste management is becoming one of the key problems of the modern world, an issue that is intensified by the volume and complexity of waste discarded by society's domestic and industrial activities. Unfortunately, many of the practices adopted in the past were aimed at short-term solutions without sufficient regard or knowledge for long term implications on health, the environment or sustainability and this, in many cases, leads to the need to take difficult and expensive remedial action.

With our growing awareness of the detrimental environmental effects of current waste disposal, there is a significant onus of accountability for effective waste management. Better practice and safer solutions are required. Not only is there a need for more research on current disposal methods such as landfill, incineration, chemical and effluent treatment, but also on recycling, waste minimization, clean technologies, waste monitoring, public and corporate awareness, and general education.

This sixth conference follows the success of previous meetings held in Cádiz (2002), Rhodes (2004), Malta (2006), Granada (2008) and Tallinn (2010).

 For more information or to register click here.

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Mandatory Emissions Reporting on the UK Stock Exchange

Starting in 2013, UK companies will have to report their greenhouse gas (GHG) emissions. At the Rio+20 conference in Rio, UK Deputy Prime Minister Nick Clegg announced that starting next April, companies that are listed on the London Stock Exchange will be required to publish their GHG emissions in corporate earnings reports. The rule affects about 1.800 businesses and in 2015, it will apply to all 24.000 large corporations based in the UK. Companies will be required to publish annual GHG emissions, measured in tons of carbon dioxide equivalent.

“While nine out of 10 chief executives say sustainability is fundamental to their success, only two out of 10 record the resources they consume,” Clegg said. Many businesses are welcoming the common standard which will enable shareholders, investors and others to make comparisons. These new government regulations will provide greater clarity and transparency which will in turn help enhance energy efficiency initiatives.

“Counting your business costs while hiding your greenhouse gas emissions is a false economy,” he was quoted as saying in a statement issued by Britain's environment department. ”It saves companies money on energy bills, improves their reputation with customers and helps them manage their long-term costs, too.”

The London stock exchange may be at the head of a trend. The Nasdaq and four other stock exchanges said they would urge their 4.600-plus companies to produce sustainability reports.

© 2012, Richard Matthews. All rights reserved.

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3 Events with an Environmental Theme in London (July)

Here are three upcoming training courses taking place in London, UK, early in July 2012. The first is an introduction to carbon footprint accounting, the second is about carbon finance for renewable projects and the third is a condensed series of courses known as a "mini-MBA". These training courses are staged boy Green Power Academy.  

Introduction to Carbon Footprint Accounting

On July 4, 2012 in London, UK, there will be a comprehensive 1-day briefing on the processes, standards and business benefits of greenhouse gas accounting & reporting

For more information or to register click here.  

Carbon Finance for Renewable Projects

On July 5, 2012, in London, UK, there will be a comprehensive 1-day briefing on developing renewable energy projects with carbon-based sources of finance in mind.

For more information or to register click here.  

The Green Power Mini-MBA

On July 9th to the 13th in London, UK, there will be an educational program called the Green Power Mini MBA. This is an information-packed week, with a wide variety of topics and issues introduced to attendees.

For more information or to register click here.

© 2012, Richard Matthews. All rights reserved.

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The Growth of London's Green Economy

London’s green economy is growing fast and with ambitious green initiatives from the UK government it will keep growing. According to an Innovas report commissioned by mayor of London Boris Johnson, areas like renewable energy and low carbon building technologies are growing the economy and creating jobs. Despite difficult economic headwinds in Europe, the low carbon and environmental goods and services sector grew by more than four per cent during 2009-2010. Some 160,000 people were employed by the sector across 9,000 companies.

London is the strongest green region in the UK, it ranked on top of 13 of the 23 areas of the green economy. The capital scores particularly highly in waste management, carbon finance, solar/photovoltaics and geothermal. Carbon finance is worth almost £6bn (US$9.5 billion) to the London economy and involves nearly 23,000 people employed across 2,000 businesses. The capital accounts for 97 percent of the UK’s carbon finance market.

Part of London's success in the green market is due to their goal of delivering 25 percent of the city’s energy from decentralised sources by 2025.

The City of London is the centre of carbon finance and this helps it take the largest share of the green sector. Dagenham & Barking and Westminster also have high shares of the green market because of their strengths in geothermal energy, waste management, alternative fuel vehicles and building technologies.

© 2012, Richard Matthews. All rights reserved.

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Scottish Wind Energy Can Power Europe

Scotland's massive wind energy capacity is capable of producing vast amounts of clean, sustainable energy to the rest of Europe. Due to Scotland's strong winds, skilled workforce, well-developed energy infrastructure and welcoming investment environment, the country has attracted overseas companies like Doosan, Gamesa and Mitsubishi Power Systems Europe. With over 25 percent of Europe’s wind resource Scotland has the potential to generate 159 GW of power which is almost 15 times Scotland's own peak requirement (10.5 GW).

Scotland intends to produce all of its electricity requirements from renewable sources by 2020 and to cut carbon emissions by 80 percent by 2050.

Right now Scotland produces over half of its renewable energy capacity. In total there are 80 wind farms and an additional 7 GW of onshore wind energy capacity is currently under construction or planned.

Whitelee wind farm near Glasgow is Europe’s largest wind farm generating 322 MW of electricity, this will increase to 593 MW from 215 turbines when a planned expansion is complete. The world's largest wind farm is being built off the coast of Caithness.

© 2012, Richard Matthews. All rights reserved.

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UK Renewable Energy 2011 Overview

According to statistics from the Department of Energy and Climate Change the renewable energy sector contributed to a record breaking 9.6 percent of the electricity supplied by the UK grid in 2011. This is an encouraging 50 percent increase on the figures from 2010. Yorkshire and the Humber have the most renewable energy sites followed by the North West and the South West.

Wind power is a big part of the increase in the UK's renewable energy supply increasing 120 percent over 2010 data. Wind energy now generates almost 10 percent of the UK's electricity demand during peak wind energy production.

Not only are brits increasing their renewable energy supply they have also decreased their energy consumption 3.7 percent compared to 2010.

Despite planned reductions to the UK's green subsidy regime for wind and solar in 2012, investments in renewable energy are likely to continue this year.

To view an interactive map of the UK's renewable energy installations click here.

© 2012, Richard Matthews. All rights reserved.

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Cuts to UK Wind Power ROCs & FiTs

Under pressure from Conservative MPs the UK Government appears poised to reduce its committment to wind projects. The Government has proposed a 10% cut to the financial support available to onshore wind generation projects as part of its review of renewables obligation certificates (ROCs). This has prompted some of the world's biggest wind companies to tell the Guardian newspaper that they were reviewing potential projects in the UK because of the Government's perceived lack of commitment to renewables. The government has already stated that it is considering reducing feed-in tariffs (FiT) for small wind turbines between 1.5 and 15KW by 25 percent. This would cost rural businesses up to £70,000 over the lifetime of a turbine on their land.

A government consultation on reductions to FiTs is ongoing until April 26th. The new rates are expected to start in October. To beat the deadline for the FiT reduction in the fall, applicants need to submit their planning applications by May 31.

With wind turbine costing around around £67,000, acting before the deadline can save £16,750. Wind turbines also save money on electricity. Some farmers have reportedly saved up to £10,000 on annual electric bills with just one wind turbine.

With the deadline looming there is a race to get wind turbines now before the 25 percent reduction in FiTs kicks in.

© 2012, Richard Matthews. All rights reserved.

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UK Wind Energy

The UK has ideal off shore wind conditions which are capable of supplying the island nations energy requirements. According to German government research only Denmark can produce wind energy cheaper than the UK. At the beginning of 2012, the installed capacity of wind power in the United Kingdom was over 5.9 gigawatts which ranked the UK as the world’s eighth largest producer of wind power. Wind power is expected to continue growing in the UK for the foreseeable future, RenewableUK estimates that more than 2 GW of capacity will be deployed per year for the next five years.

The UK is leading the way in wind power deployment, installing more turbines in 2011 than any other country. A report from the European Wind Energy Association reveals that between January and June, a total of 101 wind turbines of 348.1MW were connected across Europe.

Wind energy is subsidized in the UK, but the Department of Energy and Climate Change (DECC) is cutting funding by reducing the value of Renewable Obligation Certificates (ROCs). The ROCs are designed to encourage generation of electricity from eligible renewable sources in the UK.

Although current price levels are higher than conventional energy these costs should be reduced with experience and once wind power achieves economies of scale. It is expected that wind will cost £100/MWh (US$157) by 2020.

According to the Country Attractiveness Indices report global accountancy firm Ernst and Young said that annual growth in UK wind farms was set to double between 2015 and 2016.

Wind energy not only offers emissions free energy production, but in today's difficult economic climate, it provides much need green jobs. It is estimated that up to 90,000 green jobs will be provided by 2020 in the wind, wave and tidal sector and associated supply chain.

© 2012, Richard Matthews. All rights reserved.

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Cuts to UK Solar FiTs Could Prove Deadly

On October 31st 2011, Greg Barker, Minister of State at DECC, announced a controversial proposal to halve the feed-in tariff (FiT) rates for solar installations in each band up to 50kW, with smaller cuts in the bands from 50kW to 250kW. These cuts to FiTs are jeopardizing the UK solar industry. A FiT is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology. Cuts to homeowners solar power could prove deadly to the fledgling UK industry in addition to threatening tens of thousands of jobs.

According to an October 2011 press release, Climate Change and Energy Minister Greg Barker said "Urgent action is needed to put the solar industry on a steadier, clearer and sustainable growth path, avoid boom and bust and protect the wider Feed-in Tariff scheme (FITs),"

Reduced subsidies for domestic solar electricity are an effort to keep the budget under control and reflect the plummeting costs of the technology (the cost of an average domestic PV installation has fallen by at least 30% since the start of the scheme – from around £13,000 in April 2010 to £9,000 now).

The proposals, subject to consultation, would introduce a new tariff for schemes up to 4kW in size of 21p/kWh – down from the current 43.3p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW, to ensure those schemes receive a consistent rate of return.

According to a recent report, global accountancy firm Ernst and Young indicate that the UK solar sector put in a strong performance in 2011. Much of the 762MW capacity was installed to take advantage of the current feed-in tariff (FiT) programme before subsidies fall.

The surge in households installing solar PV has threatened to break the budget. There were over 16,000 new solar PV installations in September 2011 alone – nearly double the number installed in June. And nearly three times as much solar PV as projected has so far been installed with over 100,000 separate installations with over 400MW of capacity.

The new proposed tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive FITs will see their existing payments unchanged, and those with an eligibility date before 12 December will receive the current rates for 25 years.

The tariffs are broadly comparable to those offered in Germany, which has also recently reduced its tariffs.

The businesses accepted that the falling cost of solar photovoltaic panels should be reflected in falling subsidies, but the industry said cutting support by over 50% in the next six weeks would devastate the number of installations on homes, schools and small businesses.

The proposed solar cuts – the third such change in less than a year – undermined confidence across the green energy industry.

"Such deep cuts would kill the UK solar industry stone dead," said Howard Johns, of the solar industry's Cut Don't Kill campaign and also the managing director of Southern Solar. "Wiping out 4,000 companies and 25,000 jobs by cutting too deeply would be an appalling waste of economic potential. Our message to [the] government is cut us, but don't kill us. We want a sustainable cut that would allow us to survive and deliver the green growth that David Cameron said he was committed to."

Luciana Berger MP, the shadow climate change minister, said: "we are already hearing from solar companies about cancelled orders and redundancies. This is yet another sign that this Tory-led government has turned its back on the green growth agenda. The real choice is not between being green or economic growth but between acting and not acting. If we act to tackle climate change we can create thousands of jobs and get our economy moving again."

© 2012, Richard Matthews. All rights reserved.

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UK Government Investments in Efficiency and Renewable Energy

The UK government is making massive investments in the green economy. Firms in the UK cleantech sector are benefiting tremendously from the government's investments in areas like efficiency and renewable energy.

The UK is even launching a Green Investment Bank (GIB) which is a world first. The GIB is a chance to bring a truly sustainable institution to the UK and drive forward a low carbon economy. It is scheduled to launch in 2015/16. The bank will offer a large deal flow within a large corporate finance sector including access to finance teams, leading green technology providers, a strong public private sector partnership and a commitment to research and development.

In 2010 the Department of Energy and Climate Change (DECC) said there was a 27% increase in renewable energy consumption from 42.6TWh in 2008 to 54TWh in 2010 – representing 3.3% of total energy consumed. The energy from wind generation increased by 46% from 7 terawatt hours (TWh) in 2008 to 10.2TWh in 2010, and in 2010 achieved 5GW of offshore and onshore wind capacity.

Difficult economic circumstances have slowed the growth rate of wind turbines built in 2011 compared to 2010, but they are still growing. As revealed by the Guardian, in the year to the end of November, 540MW of new turbines, on land and offshore, were built – comprising 200 onshore turbines and 50 offshore. In 2010 1,192MW of turbine capacity was constructed.

The DECC announced a £4 million investment for 82 local energy projects. The projects the government is supporting includes energy efficiency verification, well insulated show homes and events that promote the use of renewable power such as solar and wind.

The UK government's Green Deal is a bold attempt to grow the economy and develop a more sustainable future. As explained on the DECC Website, the Energy Act 2011 includes provisions for the new 'Green Deal', which intends to reduce carbon emissions cost effectively by revolutionising the energy efficiency of British properties.

The new innovative Green Deal financial mechanism eliminates the need to pay upfront for energy efficiency measures and instead provides reassurances that the cost of the measures should be covered by savings on the electricity bill.

A new Energy Company Obligation (ECO) will integrate with the Green Deal, allowing supplier subsidy and Green Deal Finance to come together into one seamless offer to the consumer.

“We face a gigantic challenge in the coming years to keep the lights on and energy bills down,” said energy secretary Chris Huhne. “This means nurturing cleaner, more secure, homegrown energy sources here in the UK so we are not so dependent on imported gas, and boosting the energy efficiency of our homes and businesses to cut out waste.”

The Bank of England is expected to announce a new batch of quantitative easing* totaling at least £50bn in February 2012. A new report from the Green New Deal Group and Southampton University economics professor Richard Werner, has suggested that rather than go to banks the money should be directly infused into green investments like efficiency and renewable energy.

Richard Werner is the originator of the term quantitative easing, he earned a BSc at the LSE and he recieved his doctorate in economics from Oxford. He also spent a year at the University of Tokyo. His 1991 discussion paper at the Institute for Economics and Statistics at Oxford warned about the imminent 'collapse' of the Japanese banking system and the threat of the "greatest recession since the Great Depression".

Werner indicates that giving money directly to green investments will create thousands of new jobs, improve energy security and tackle climate change.

© 2012, Richard Matthews. All rights reserved.

*Definition of 'Quantitative Easing'A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

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