The energy department confirms pilot scheme and promises renewable heat incentive

Green issues have fared reasonably well with the confirmation of up to £1bn to pilot carbon capture and storage and the promise of a renewable heat incentive.

The £1bn set aside for a Green Investment Bank was disappointing and whether it will be enough to attract private investors remains to be seen.

Up to £1bn will be invested in a commercial scale carbon capture and storage demonstration plant. More than £200m will be invested in low carbon technologies including offshore wind technology and manufacturing plants.

Less encouraging was the news that £1bn to fund low carbon energy schemes such as green retrofits won’t materialise until 2013-14.

The Warm Front programme which helps people on benefits pay for energy and insulation improvements will be phased out.

Feed-in-tariffs will be reduced at the next formal review undermining the investments made by manufacturers.

The renewable heat incentive which rewards those generating heat from renewable sources will be introduced in 2011-12. Details on the level of payments have yet to be outlined.