Government’s Renewable Subsidy Cuts Send A “Worrying Signal”

According to the BBC, John Cridland, head of the employers’ group CBI, has called for ministers to take steps to convince firms that they are genuinely committed to tackling climate change.

This need to convince firms is especially pronounced given the fact that, while ministers say they are committed to protecting the climate, the government cut subsidies in the summer due to the £7.6bn budget being exceeded.

Ministers have, however, mentioned that they will announce replacement renewables policies soon, Cridland stating: “The green economy is an emerging market in its own right, brimming with opportunity.

“Yet, with the roll-back of renewables policies and the mixed messages on energy efficiency, the government risks sending a worrying signal to businesses.

“We need all countries to pull in the same direction at the Paris Climate Summit (in November) to give firms the certainty and confidence they need to invest in the green economy for the long run”.

Mirroring the sentiments outlined by Mr. Cridland, critics are also beginning to complain that recent tax changes will act as a deterrent to people making climate-helping decisions.

However, speaking on an over-reliance on subsidies, a Treasury spokeswoman said: “Our support has already driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies.”

Furthermore, in defence of the decision to impose a carbon tax on green energy, the spokeswoman also commented that it is in fact a positive step forward to incentivise the efficient use of renewable power, given it would supply 30% of all UK electricity in 2020.

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