Environment watchdog urges Obama-style green New Deal

David Hencke, Westminster correspondent

The Guardian, Tuesday November 25 2008

The chairman of the environment agency yesterday called on the government to follow US president-elect Barack Obama and launch a multibillion pound "green New Deal" to boost clean energy and create jobs.
Speaking hours before the government announced its tax cutting and public spending package, Lord Smith, the former culture secretary, called for a comprehensive long-term strategy to cover investments in renewable energy, green technology, energy efficiency and developing new technologies such as carbon capture and storage.
Smith said the world was "in extraordinary times, in the midst of a major financial crisis, on the cusp of a serious energy crisis and at the same time, stoking the fire of a potentially catastrophic climate crisis".
He told the environment agency's annual conference in London the government's reaction to the financial downturn had been "swift and bold", and urged ministers to react in a similar way to deal with the environmental and energy problems the UK and the world face. He said: "I believe if there's to be another New Deal, it has to be a green New Deal. We need a green New Deal to meet our carbon emissions targets and create jobs in renewable energy and green technology."
Current initiatives, such as the recent announcement of feed-in tariffs for small scale energy generation, were "very useful, very important and very welcome", but were a piecemeal approach to the problem. A comprehensive deal would be needed if the UK was to meet its target to cut emissions by at least 80% by 2050.
He said it would deliver long-term economic benefits, such as clean energy sources, from the immediate financial stimulus. It would also put the UK ahead of the game as a "first mover" and deliver greater financial rewards as a result.
Smith said the government should go ahead with major wind farms, solar power, tidal barrages and coal-fired power stations with carbon capture equipment as part of a massive renewable energy programme.
He wants more incentives for energy efficiency homes and businesses, greater use of combined heat and power programmes and new feed-in tariffs to help householders develop sustainable energy which can be fed into the national grid.
Smith said: "We must hold our nerve and invest in green technology despite the current pressures on the economy. We should take the lead on developing carbon capture so we can develop new industries that create new jobs."
He also said he was not a strong supporter of the third runway for Heathrow. His support for carbon capture will bring him into conflict with green groups who are worried that the government will go ahead with a new generation of coal-fired power stations - particularly the proposed scheme for Kingsnorth in Kent - without the new technology.