Title: The Carbon Trust will take the lead on low carbon technology and innovation in this country and put
1The Carbon Trust will take the lead on low
carbon technology and innovation in this country
and put Britain in the lead internationally
The Prime Minister,
October 2000
2The Carbon Trust Government backed and business
led
- Objectives
- To ensure that UK business and public sector meet
ongoing targets for carbon dioxide emissions - To improve the competitiveness of UK industry
through resource efficiency - To help develop a UK low carbon industry sector
3How do we deliver on Kyoto and capture the
business opportunity of a low carbon economy?
We could defeat climate change if we chose to.
Kyoto is right. We will implement it and call
upon all other nations to do so. But its only a
start. With imagination, we could use or find the
technologies that create energy without
destroying our planet we could provide work and
trade without deforestation. The Prime
Minister, October 2, 2001
4A low carbon economy with more energy efficiency
and low carbon supplies is technically feasible
Potential impact of incremental low carbon
technologies to 2050
Preliminary
Preliminary
Note Impact assessed against Baseline 2. Impact
against Baseline 1 also meets RCEP target
5 But sustained innovation is needed to overcome
financial and non-financial constraints
- Some changes needed
- Secure paths from RD to market - a continuum of
support - Monetised carbon emissions and full cost
purchasing decisions - Supportive planning processes
- Cost-reflective embedded generation
- Public and political support in the short, medium
and long term
- Multiple constraints must be overcome
- Technical and economic
- Informational and behavioural
- Regulatory and legislative
- Government, business and consumers must act
together
6We need clear commitment beyond the lifetime of
individual Governments
I believe this Nation should commit itself to
achieving the goal, before this decade is out, of
landing a man on the moon and returning him
safely to earth John F Kennedy, 25 May 1961
7How are we doing? UK has strong political
commitment but investment is slow
- MLIM says of the UK
- stated renewable energy targets but uncertain
mechanism for achieving aims - Government subsidies and incentives but less
than other countries - ideal wind, wave and biomass environments
- well developed capital markets
Source MLIM Typical sub-sector portfolio
allocation as at 1st December 2001
8The Carbon Trust will address financial and
non-financial constraints and inform policy
- Develop best practice programmes to inform,
influence behaviours and build skills and
resources - Co-ordinate and broker between those developing
technologies and funding partners - Invest in the development and deployment of low
carbon technologies in the UK - Be a leader in the low carbon debate
- Inform policy
9The Carbon Trusts programmes will promote new
technologies and existing technologies
Towards a low-carbon economy
Develop new technologies
Deploy existing technologies
LCIP Direct investment in UK based low-carbon
technologies
Enhanced Capital Allowances
Low interest loans
Financial support
LCIP Co-ordinate broker technologists and
funding partners
Best Practice Information, benchmarking,
training accreditation
Non- financial support
Inform policy makers
Note Both energy efficiency and low carbon
energy supplies are supported by CT programmes
10Investing public funds to tackle financial and
non-financial constraints and leverage private
capital
Research and Development
Demonstration
Commercialisation
Market Diffusion
UK Research councils Buyer- led research
consortiums EU research funding Direct government
funding sources
EU innovation, RDAs, SBS Government agencies
(DTI) Early stage investors Corporate venturing
- Angel, Seed, Venture SRI investors
- Innovation incubation development specialists
- Carbon trading/offset companies
- Corporate venturing
- University tech transfer departments
Industrial partners Local authorities, NGOs and
Government Trade Unions for capacity building
and training
Potential funding partners