10 October 2007 – Yesterday the UK government announced that is to give an additional £170m ($348m) to the cross-Government Environmental Transformation Fund (ETF), which means that its investment in the commercialization of low-carbon technologies in the UK will exceed £370m over the next three years.
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 £800m already announced for the fund’s international element, which focuses on protecting the environment and alleviating poverty in developing countries, the funding will bring total investment through the ETFund to £1.2bn between 2008 and 2011.
John Hutton, secretary of state for Business, Enterprise & Regulatory Reform (BERR) said: “Our investment in this fund demonstrates the importance of new technologies to delivering a low carbon economy. The ongoing commitment, specifically targeted at a portfolio of low carbon energy technologies, will provide the sector with the confidence it needs to invest in innovation and ensure that new products and processes are brought to market soon, making a real contribution to reducing our carbon emissions now and in the future and to realize the business opportunity of a low carbon economy.”
The domestic element of the ETF will build on existing programmes in this area. It will work closely with the Technology Strategy Board and the new Energy Technologies Institute, which itself will have up to £1.1bn to spend over the next ten years. The ETF’s specific role is to support the commercialization of technologies that the Energy Technologies Institute, Technology Strategy Board and others have helped to develop.
It will also support continued investment by the Carbon Trust in technology programmes in interest-free energy efficiency loans for small and medium-sized businesses, and through Salix Finance in public sector revolving loan schemes.