Is Britain really getting greener?

The Government yesterday signed up to cutting Britain's greenhouse gas emissions by nearly half – but with no clear agreement on how to achieve the target.

The Green Investment Bank

Unveiled in the budget, the Green Bank is the centre-piece of the Coalition's promise to be the "greenest government ever". It will invest exclusively in low-carbon infrastructure, renewable energy and financially support the development of new clean technologies. Current Government proposals stipulate it will not have powers to borrow or raise money (such as issuing ISAS and bonds) until 2015. Until then it has £3 billion of public money to invest. Not allowing it to borrow earlier, green groups say, is disastrous as investment decisions on replacing Britain's power generation plants need to be taken long before 2015.

The Green Deal

The Green Deal will allow 14 million UK households to apply for up to £10,000 to pay for energy efficiency improvements on their homes such as insulation, double glazing and energy-efficient boilers. The money will be provided upfront by the private sector and paid back in energy savings by homes over a 20-year period. The first Green Deals are expected to appear in Autumn 2012 after consultation and review, so for now it isn't working at all.

Investing in renewable energy

Greening our electricity is key to reducing emissions. The need for a shift from fossil fuels to renewable energy has long been accepted by everyone but the harshest climate sceptics, and in response the Coalition Government is pursuing multiple options including on- and off-shore wind farms and nuclear power subsidies. The CCC's report last week recommended developing multiple new technologies. Initially there would likely be a focus on cost-effective nuclear power plants and wind farms across the UK. The Coalition claims this could feasibly result in renewable sources providing up to 40 per cent of all our energy by 2030.

However, while Britain is locked in an ongoing battle between communities and environmentalists trying to protect the countryside, Germany has forged ahead with plans for a huge wind farm in the Baltic, and Denmark and Finland are aggressively pursuing alternative energy.

Green Transportation

The Coalition has put transportation policy at the heart of its pledge for energy and climate change. Fossil fuels would be restricted in the air by opposing a third runway at Heathrow; by the prevention of additional runways at Stansted and Gatwick; and by replacing air-passenger duty with per-plane duty. They would also be restricted on the ground by the Barclays' bike campaign in central London; by more emphasis on public transport; and by encouraging widespread use of electric cars.

Is it working? Aviation policies have had some success. The third runway at Heathrow has been scrapped. However, the per-plane duty promised in the Coalition agreement was not introduced, instead the Chancellor promised a "consultation on the reform of air-passenger duty", which had already risen by 55 per cent in the previous year.

Take-up of electric cars is still small – but the technology is rapidly developing and they are likely to be a familiar sight in the Britain of 2015.

However, rail fares rocketed and there is no sign that gas-guzzlers are on the way out just yet.

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