£170 Million Boost For Low Carbon Energy Technology

Investment in commercialising low-carbon technologies in the UK will top £370 million over the next three years after an extra £170 million was allocated to the cross-government Environmental Transformation Fund (ETF).

The new domestic element of the fund will invest in the demonstration and deployment of low carbon energy and energy efficiency technologies to help reduce carbon emissions and improve the security of energy supply.

When added to the £800 million already announced for the fund's international element, to focus on protecting the environment and alleviating poverty in developing countries, the funding will bring total investment in the ETF to £1.2 billion between 2008 and 2011.

Environment Secretary Hilary Benn said: "The policies and programmes we have in place to fight climate change will help drive investment in clean, renewable technologies, with benefits for jobs and Britain's economy. "Britain must be at the forefront of developing and deploying this technology, whether it be LED lighting for people's homes, biomass boilers for small businesses, or major sources of renewable electricity from wind and the sea to reduce our dependence on fossil fuels."

The domestic element of the ETF, led by Defra and BERR, will build on existing programmes in this area. It will work closely with the Technology Strategy Board and the new Energy Technologies Institute at Loughborough, which itself will have up to £1.1 billion to spend over the next ten years.

The international element of the ETF will fund overseas development activities that deliver both poverty reduction and environmental benefits in developing countries.