Wind, waves, nuclear, electric cars and MAS share £405m low carbon budget

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power; offshore wind; and ultra-low carbon vehicles. It also sets out the Government's strategy for removing barriers that are blocking the development of Britain's full potential in these areas. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture. The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced in the last Budget. However, the manufacturers' organisation EEF expressed disappointment and concern with the plan. Long-term priorities remained unclear and there was too much emphasis on renewable energy at the expense of a more balanced portfolio, it said. EEF chief executive Gilbert Toppin said the strategy was only a small step forward when a giant leap was needed. "A more ambitious approach was needed that would have sent would-be investors a strong message about long-term funding priorities. Unless this is done quickly, we face the danger of companies in emerging industries gravitating to other countries with clearer long-term commitments." Key investments in the strategy include: • Up to £60 million to capitalise on Britain's wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast. • Up to £15 million to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities. • A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry. • Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure. • Up to £120 million to support the development of a British based offshore wind industry. Announcing the strategy Business Secretary Peter Mandelson said: "Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefiting. Today we are announcing the first investments under the £405m funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future."