Britain needs to invest ￡200 billion over the next ten years for it to ensure supplies of secure, low-carbon energy, the government announced in its June 2010 emergency budget report on Tuesday. The new coalition government, which has pledged to be the "greenest government ever," has promised to provide more certainty about carbon pricing and put forward detailed proposals for the creation of a Green Investment Bank to help the UK meet the low-carbon investment challenge.“The industry needs a robust and durable carbon pricing regime, which will steer investment towards low carbon solutions,” David Porter, chief executive of the Association of Electricity Producers, said in a statement on Tuesday. “The government is proposing changes to the Climate Change Levy, in order to provide more certainty and support to the carbon price. We shall be keen to see that any such proposals are both workable, cost-effective and that they work effectively alongside the EU Emissions Trading Scheme, which applies emissions reductions Europe-wide.”Richard Lambert, director-general of the CBI, the UK's leading business organisation, agreed: "The Government is right to explore ways of incentivising investment in low-carbon generation. The consultation should consider alternative equivalent measures alongside a carbon floor price. A green investment bank could significantly help to leverage the necessary private finance to deliver emissions savings across the economy."Although Chancellor George Osborne yesterday offered no information as to what the green investment bank would actually do or how it will be funded, he said the Treasury would publish detailed proposals of the bank's creation in the autumn, after the spending review.The budget also outlines a “Green Deal” for households to help individuals invest in home energy efficiency improvements that can pay for themselves from the savings in energy bills. The government will also continue to work on creating green financial products to provide individuals with opportunities to invest in the infrastructure necessary to support the green economy.However, many industry specialists are wary of the potential short-sightedness of the reforms and lack of accountability. “The budget proposes yet more initiatives, and while it is hard to disagree with any specific measure, the key is energy market reform,” Gas Strategies associate consultant Trevor Turner told Gas Matters Today. “If energy market reform addresses the need for fair returns for all the necessary investments to achieve a secure and sustainable energy future then real progress can be made. If the focus remains on the narrow implementation of what are seen as pro-environmental measures, then an opportunity will be lost and further reform will be required later.”“It’s good to talk about and set long-term initiatives but will the population really respond without real incentives that make energy saving and a commitment to develop renewables worth pursuing,” another energy expert told Gas Matters Today. “Setting initiatives for 2020 means that there will be at least one and probably two elections before we find out whether they have been achieved and politicians’ focus is not much further than the next election.”Industry professionals have questioned if and how the government will be able secure the required ￡200 billion it has outlined in the budget. “We need action to attract this unprecedented level of private investment, “said Porter. “If we get this right, not only will we have plenty of electricity and low carbon emissions, but, there will be huge employment opportunities in new energy infrastructure and technology. But, if we fail, there could be serious consequences.”Oil & Gas UK said in a statement on Wednesday that it welcomes the Government’s recognition of the importance of stability in the tax regime at this time for the UK’s offshore oil and gas industry. The oil and gas sector is, “…the country’s largest industrial investor and cor
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