Block’s Indicator of Sustainable Growth

by Ray Block

There is something heroic about the new UK Coalition Government. To have a coalition between political foes is itself heroic. To go one step forward for Prime Minister David Cameron to commit the UK to have carbon emission reductions of 10% over the next 12 months.

This is at a time when many countries have either slowed down their carbon emission cutbacks timetable, or shelved them entirely, until the world economy stabilises. 

And to do this at a time, when the just announced UK Government Budget brought down by Chancellor George Osborne, for cuts of Estg 6.25 billion in the large government deficit will require a 2.5 per cent cut in the annual budget of the Department of Energy and Climate Change (DECC), while the Department of Food, Environment and Rural Affairs (DEFRA) will have a budget cut of 5.5 per cent.

David Cameron, who is a supporter of renewable energy keeps on asserting that despite these cuts, carbon reductions have to be made.

Housed in the Department of Energy and Climate Change (DECC) are the three largest delivery bodies, Nuclear Decommissioning Agency, Carbon Trust and Energy Savings Trust, which will face budget cuts by an average 1 per cent. The Environmental Transformation Fund, which invests in emerging low carbon technologies will see its budget cut by 22 per cent to Estg 120 million.

Business Green, the UK blog, reported that Leonnie Greene of the Renewable Energy Association is saying that producers of biomass systems, ground source heat pumps and other renewable heat technologies now urgently needed clarity on when the proposed Renewable Heat Incentive scheme will be introduced.