Website of the UK government

First official UK carbon budget

The UK has committed to building a low carbon recovery with the announcement of the first legally binding carbon budget. The carbon budget aims to cut 34 per cent of greenhouse gas emissions by 2020. This will keep the UK on track for its long term goal of cutting emissions by 80 per cent by 2050.

Meeting the carbon budget means strengthening the long term framework for a low carbon energy future.  Measures announced to transform the way the UK meets its energy needs are set out below.

• Carbon offsetting (environment and greener living section)

Supporting energy and resource efficiency

£375 million has been promised over the next two years for energy and resource efficiency in households, businesses and public buildings.  This builds on the one million homes insulated last year.  £70 million will also be spent on small-scale and community low carbon energy and resource efficiency.

Spending on energy saving and efficiency will create jobs, reduce carbon dioxide emissions and save around £60 million in energy bills each year.

• Energy Efficiency grants (environment and greener living section)

Support for renewable energy projects

New measures to protect investment and jobs in low carbon energy include:

• £525 million to support offshore wind projects
• £4 billion for UK energy projects

UK low-carbon energy infrastructure

£405 million will be spent on the development of a world leading low carbon energy and green manufacturing sector in the UK.

Carbon capture and storage

Carbon capture and storage (CCS) will be key in the move towards a low-carbon energy supply. Up to four new projects are to be announeced to demonstrate the capture and storage of carbon dioxide - rather than its release into the atmosphere - and to help drive this technology to commercial viability. This represents the biggest global contribution of any country in developing this technology.

A levy mechanism will be used to drive private investment in the technology, set to make the UK a global leader in CCS.

Fuel Duty

Increases in fuel duty will help to reduce emissions and pollution, saving 2 million tonnes of carbon dioxide per year by 2013-14.

• Budget 2009 - motoring and transport

• Greener cars and driving (environment and greener living section)

Car scrapping scheme opens up fuel efficient opportunity

The announcement of a £2,000 discount for those replacing cars over ten years old means more people can buy new, fuel efficient cars.  To be eligible, owners must have owned the car for more than 12 months. 

Buying a fuel efficient car also gives the opportuntity to reduce vehicle tax, or cut it completely.

• New car CO2 emissions: top 10 search (environment and greener living section) Opens new window