Carbon Trust 2008 Budget response

EU ETS – Auctioning of allowances

Dr James Wilde, Director of Insights said:

“We strongly welcome the decision that in Phase III the UK will auction 100 per cent of allowances to the large electricity producers’ sector.  More auctioning will be important as the current national allocation plans only propose a small amount of auctioning but governments retain the right to decide to auction more. Auction revenues can be used to support new investment in the development and commercialisation of low carbon technologies essential to enable us to move to a low carbon economy.

”Having made the decision to move to 100% auctioning in the power sector, the Government should now work alongside industry to determine the role that auctioning should play in other sectors within the context of maintaining and enhancing the sectors’ competitiveness.”

Environmental Transformation Fund

Dr Mark Williamson, Director of Innovations said:

“The Environmental Transformation Fund (ETF) will be essential to help the UK reap the multiple benefits of developing new technologies to reduce carbon and at the same time deliver significant economic benefit to UK plc. Technology innovation will be vital in accelerating the move towards a low-carbon economy and the UK is in a position to build on its existing strengths in areas such as marine power, offshore wind, and next generation solar PV to position itself as a world leading innovator of low carbon technologies. The Carbon Trust will work with Defra and BERR to deliver the programme of activity in a co-ordinated way”
Zero Carbon Commercial Buildings

Dr David Vincent, Director, Policy said:

“The commercial buildings sector is responsible for around 90 MtCO2 tonnes of CO2 emissions a year equivalent to over 16 % of the UK’s total carbon footprint. As a result we welcome the Government’s ambition to move towards zero carbon non-domestic buildings.  However, we believe careful thought is required to define what is meant by ‘zero carbon buildings’ and the pathway to achieve this ambition – to ensure a cost effective and business friendly result.

“As 60% of the carbon emissions from the non-domestic sector come from buildings already in use today, action here is equally important. It is vital that Government and business work together to introduce and strengthen policies for the existing non-domestic building stock.”
Smart metering – helping business cut carbon

Dr Mark Williamson, Director of Innovations said:

“Our field trial and extensive analysis has demonstrated the viability of smart metering and found that its use by SMEs could save 2.5 million tonnes of CO₂ emissions per year – equivalent to the entire annual carbon footprint of Bristol – and also provide a net financial benefit to the UK economy £300 million a year.  We are therefore delighted that the Government has acted on our research and findings and recognised the role that smart metering can play and has made a commitment requiring energy suppliers to provide smart meters for medium and large businesses with the next five years.”
Enhanced Capital Allowances / Capital Allowances

Hugh Jones, Director of Solutions:

“The Carbon Trust welcomes the inclusion of four new technologies on the ECA Scheme for energy-saving technologies.  Each of these technologies – Compressed Air Master Controllers, Compressed Air Flow Controllers, Heat Pump Dehumidifiers and White Light Emitting Diodes (LEDs) – has good carbon saving benefits. ECA scheme support will encourage UK businesses to use these energy-saving technologies to capture carbon dioxide emissions reductions.”

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