Department of Energy and Climate Change Announces Big Cut to Low Carbon Technology

In what is being called a big blow to the low carbon technology industry, the Department of Energy and Climate Change announced that there will be big cuts made to these programs. Wind, Bio-energy, geothermal, and low carbon buildings funds have all been given budget cuts.

Apparently the low carbon technology industry will receive a £34 million budget cut. This is just a little part of the £6.2 billion savings that will be taking place across Whitehall. The department went on to say that the Carbon Trust would see its budget for helping green technology and businesses cut by £12.6 million this year as well.

However, these are not the only cuts that will be made. The offshore wind capital grants scheme, which of course, supports the development of offshore wind farms, will also see a reduction of some £3 million.

The department went on to say that Energy Saving Trust technology trials would be closed early. This would save some £700,000. The department also announced back in may that it was bringing forward the closing of the low carbon building fund, which provides grants to help householders install small scale renewables.

A spokesman for the department said that the whole of Whitehall is making savings. It is only right that the Department of Energy and Climate Change plays its part in tackling the deficit. Of course, the department will still be investing more than £150 million in low carbon technology this year. What is vital is leveraging the scale of private sector investment needed. That is why they are acting to bring greater certainty to the carbon price and to establish a Green Investment Bank.