It is now just over a year since the UK Prime Minister, David Cameron, announced that his would be the “greenest government ever”. Through action at home and internationally, the UK intends to be at the forefront of global efforts to tackle climate change and encourage low carbon growth.
The coalition government recognises both ethical and economic imperatives to addressing climate change. If we are to avoid leaving a legacy of debt and damage to future generations, we must act now.
In the past fortnight, the British government has made two major announcements on climate change policy.
First, Chris Huhne, the Secretary of State for Energy and Climate Change, announced ambitious, legally binding, targets to reduce the UK’s carbon emissions. Second, our government published plans for a Green Investment Bank, the world’s first national green development bank.
In the fourth carbon budget, the coalition government accepted the recommendation of the Climate Change Committee to cut carbon emissions to 50 per cent of 1990 levels by 2025.
No other country in the world has set legally-binding carbon targets in this much detail, this far ahead. By being so clear, and so committed, we can help stimulate the investment the low carbon sector badly needs.
Investors and potential investors in low carbon economic activity – like renewable electricity, electric cars, or home insulation – will have the certainty they need to make long-term investments.
Through leading by example, the UK can make stronger demands of the international community. So we will, for example, continue to argue for an EU target of a 30 per cent cut by 2020.
The British government has committed to bringing forward legislation to create an operationally independent, enduring, Green Investment Bank. It has also guaranteed £3 billion initial capitalisation for the bank, which will start to make investments from April 2012.
This initial capitalisation should enable the bank to catalyse an additional £15 billion of investment in green infrastructure by 2014-5.
By providing the finance for low carbon infrastructure, the bank will help to lay the foundations for the UK’s long term growth. Possible early priorities for the bank are offshore wind, waste, and non-domestic energy efficiency.
We hope that in future years the bank will grow to become both a borrowing and an investing institution. These announcements build on the UK’s progress over the past year.
Since coming to power the coalition government has committed to funding four commercial-scale carbon capture and storage demonstration projects, is reforming the electricity market to encourage greater investment in low carbon electricity plants, has launched the world’s first incentive scheme for renewable heat, and has published details of the Green Deal – a scheme enabling householders, businesses and landlords to improve the energy efficiency of their homes and buildings at no up-front cost.
By taking action to reduce our emissions and green our economy at home, our government is securing the UK’s long-term future, for the sake of the generations to follow.
We will remain at the forefront of the international debate, helping to build momentum towards a legally binding global climate change deal.
Ms Stanton is British High Commissioner to Malta.