We are FIT but what about RHI

 The election has come and gone; the emergency budget has come and gone; and now it seems the Green Investment Bank has come and gone although it never really arrived before going. Out of all of this it seemed there was little comfort for the renewable energy industry and sustainability.

But all is not lost. It is not often we may wish to say thank you Europe. If you are in the carbon reduction business you would have welcomed the surprise announcement from the EU of a plan to combat global warming. The plan proposed an increase in the target for reduction of greenhouse gas emissions by 30% on 1990 levels by the end of the decade. The cost across the EU is estimated to be an extra £33 billion on top of the already estimated £48 billion to achieve the 20% cut.

This level of increase in the emissions reduction target was referred to in the coalition agreement as an initiative for our government to push for in the EEU and it has come about very suddenly. Has it caught Whitehall off their guard by the sudden support from Europe. The scale of cost will generate huge amounts of economic activity with a wealth of opportunity for climate change businesses.

There is much activity developing ideas to cut GHG emission and using the benefit of the FIT which is fit and well. Unfortunately we are still in the dark about the RHI. There have been numerous positive statements from Chris Huhne and Greg Barker but we still have yet to hear that RHI is definitely on. When the announcement is made the flood gates will, I am sure, open as many organisations have advanced plans already in place. In the meantime the uncertainty is proving costly for business.

Of course there is always a sting in the tail. The increased target has to be paid for. We know there is no money in the Treasury so who will be paying. As usual you and I but at least if you buy a heat pump, solar PV panels and a windmill you may actually break even so long as you live long enough to tell the tale.