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 Department of Energy and Climate Change 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 Department of Energy and Climate Change 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 earned a BSc at the LSE and he recieved his doctorate in economics from Oxford. He 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.