£400 million for low–carbon Britain – Defra

Setting out details of Defra's 2008/09 budget settlement, Hilary Benn has announced an increase in funding for clean energy technologies, investments and enterprises to over £400 million over the next three years.

Setting out details of Defra's 2008/09 budget settlement, Hilary Benn has announced an increase in funding for clean energy technologies, investments and enterprises to over £400 million over the next three years.

As part of the domestic Environmental Transformation Fund (ETF), the Carbon Trust will receive £47.4 million to bring forward new energy technologies such as offshore wind, third-generation photovoltaic power, marine energy and biomass heating.

This funding will also be used to increase the Carbon Trust's energy-saving loans scheme for small and medium sized enterprises by a further £12 million to £62 million since 2003. In addition, over the next three years the government will also provide around £10 million for a new anaerobic digestion demonstration programme. Up to four commercial-scale facilities will show the potential of this technology to create renewable energy, reduce greenhouse gas emissions and avoid waste being sent to landfill.

The 1.4% real increase in Defra's overall budget on 2007/08 shows the government's commitment to the environment with significant new investment in the following areas:

• low-carbon technology - domestic ETF fund increased to £400 million plus £800 million to tackle environmental challenges in developing countries over the next three years;
• sustainable waste infrastructure - over £2 billion Private Finance Initiative credits provided over the next three years; * flood protection - spending £2.15 billion over the next three years; and
• Rural Development Programme for England - resources doubled to £3.9bn available to 2013.

Announcing the budget settlement, Hilary Benn said: "Now is the time to act together to tackle climate change and protect our environment. The Government must lead the way by ensuring we are investing in building a low carbon Britain. "Defra spending will increase to almost £4 billion over the next three years but we must invest wisely. That is why we are focusing our efforts on helping to provide sustainable options for the future as well as supporting and influencing governments, businesses and consumers locally and globally."