An additional £35 million funding will go to the Carbon Trust to encourage investment in energy efficiency among SMEs and in the public sector. But more radical steps were proposed in two other reports launched yesterday under the Government’s energy efficiency innovation review:
The Pre-Budget Report also announced that climate change agreements have been approved for the heat treatment of metals and the production of calcium carbonate based mineral products, industrial gases and kaolinitic clay. A new £10 million fund has been set up for carbon abatement technology demonstrators, and a consultation was launched on developing carbon capture and storage technologies with Norway.
There will be a 100% first year enhanced capital allowance for biofuels plant meeting qualifying criteria, subject to EU approval, and a reduced VAT rate on biomass boilers has been extended.