Prime minister says investment in green energy good for environment and the economy

David Cameron has sought to reassure investors the government is serious about its green agenda, asserting that investment in green energy is good for both business and the environment.

There has been disquiet from some corners of government about whether green policies are hampering business, while a row that erupted this month over a measure aimed at driving take up of the Green Deal, dubbed a ‘conservatory tax’, led to the prime minister blocking the proposal.

But speaking at a meeting of energy ministers from across the globe on Thursday David Cameron said: “Investment [in green energy] isn’t just good for the environment, we believe it’s very good for business too.”

He also praised the Green Deal, saying that it showed the government was putting energy efficiency “at the heart of government policy”.

In a move that appeared designed to calm fears from investors in the government’s green programmes that support could be withdrawn with little notice, caused by the sudden slashing of the feed-in tariff for solar power last year, the prime minister said: “When we have made a commitment to a project we will always honour it in full.”

Last autumn George Osborne described them as a ‘burden’ and earlier this month senior Tories were reported as calling for an end to the governments flagship Green Deal after controversy surrounded plans to change building regulations to drive increased energy efficiency in the building stock.

The prime minister blocked the changes, raising questions over his support for green policies.

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