"At the risk of sounding like a mini Alan Sugar, what the Department of Energy and Climate Change needs now is to get business savvy.
We've had just about all the bureaucracy we can stand with the likes, as worthy as they are, of the Carbon Trust's carbon labelling schemes and the Carbon Reduction Commitment. To keep DECC relevant, what we need now is an effective green investment bank to hand out smart loans swiftly to support projects for renewable energy and energy efficiency.
We also need government to help businesses, especially in the engineering and manufacturing sectors, to save energy and innovate with clean tech products via small loans and tax rebates. In addition, companies investing in renewable energy production need clarification on the Renewable Obligation Certificate subsidy system quickly.
The arrival of Chris Huhne as energy minister at DECC is a good sign. He is aware of the investment needs of cleantech and, after his stint in the City as vice chair of ratings agency Fitch, he'll know how business and investors work, and hopefully how the department can work with them.
Unsurprisingly, RenewableUK has told me it is "delighted by the proposal of the coalition government to increase renewable energy targets". But Richard Gledhill, global leader of climate change and carbon market services at PwC, took a more reserved stance, explaining: "Chris Huhne… has got to keep the lights on and to keep energy affordable, at a time when public expenditure is going to be under huge pressure."
We will no doubt see an upward trend to energy prices as a result of various climate change levies, and DECC will have to be fair and transparent about how the money will be raised and where it is going.
There is also a need to deal with EU carbon pricing realistically. If the carbon price is to be useful to compliant businesses it needs to be more stable and to rise predictably; but that's a matter to be dealt with at the European level, and will take time. Part of this shift may involve supporting a 30% reduction in EU emissions by 2020, to lower the emissions cap.
His experience in the investment community will make Huhne more likely than most to spot the wise bets in clean energy. His more challenging task may be in overcoming the political obstacles along his way."
The guardian sustainable business section also reports here on more from Chris and the new green government...
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