Shadow chancellor promises clear direction to inspire investment in energy infrastructure
Shadow chancellor Ed Balls has attacked George Osborne for 鈥渟caring away鈥� green investment in infrastructure and energy efficiency.
His words come amid increasing concern from industry chiefs and policy makers that uncertainty over support for renewable energy projects, new nuclear power stations, and incentives for the Green Deal is holding back investment.
Recently the government鈥檚 independent climate watchdog the Committee on Climate Change called for the introduction of incentives to boost the Green Deal and in May it said uncertainty over green power policy was 鈥渦ndermining electricity market reform鈥�.
Boosting the Green Deal is a key element in 黑洞社区鈥檚 Green for Growth campaign.
Writing in the New Statesman this week, Balls said a Labour government would make sustainable energy a 鈥渕ajor national priority鈥�.
He said: 鈥淚nvestment and reform depends on leadership from government. And time and time again I hear from business and green campaigners alike that this leadership is currently absent.鈥�
He said that on energy efficiency the government had 鈥渇ailed to deliver鈥�.
He said: 鈥淭he construction industry is crying out for clarity on the next steps in Labour鈥檚 successful zero-carbon homes strategy. The Green Deal, which replaced previous successful domestic energy efficiency schemes, has so far helped just four households this year. 鈥�
Plus, he said the Green Investment Bank had been 鈥渟hackled鈥� by the government鈥檚 requirement that debt be falling as a percentage of GDP before the bank can borrow on the open market.
He added: 鈥淕eorge Osborne has fostered exactly the kind of policy uncertainty that scares away long-term investment. By talking up the possibility of an implausible shale gas bonanza to justify tacking away from renewables after the 2020 targets run out, he has cast further doubt on the government鈥檚 long-term commitment to a low carbon future.鈥�
Ball鈥檚 comments follow a report by campaign organisation Green Alliance, which concluded green projects made up 拢180bn of the government鈥檚 infrastructure pipeline.
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