Green Economy

The Government is committed to sustainable growth, economically and environmentally, and there are many opportunities for UK businesses in moving to a green economy. We will publish a Roadmap to a Green Economy in April 2011 that will outline how Government will seek to maximise economic growth, whilst decoupling it from impacts on the environment.

Natural capital is an essential part of a productive economy and we need to value appropriately the goods and services it provides. This will be a key theme of the Natural Environment White Paper, the first such for 20 years. Building on the National Ecosystem Assessment, the White Paper will set out the state of our natural asset base and will strengthen Government commitments to ensure we properly measure and recognise the value of natural capital in policy decisions.

This Government has made a number of announcements and policy decisions which will support delivery of the transition to a green economy – including the Green Deal, a carbon price floor, greater support for export of clean technologies and the review of waste policies. In the Spending Review the Government committed £1bn for the Green Investment Bank with a commitment for additional significant proceeds from asset sales to help unlock the finance necessary to help move to a green economy. We are also committed to introducing a presumption in favour of sustainable development in the planning system, which will be at the core of the new simplified National Planning Policy Framework.

HM Treasury (HMT) will support green growth and build a fairer, more balanced, economy. Specifically, its business plan sets out commitments to increase the proportion of revenue accounted for by environmental taxes. For example, plans to introduce a carbon price floor by 2013 and to replace air passenger duty with a per flight duty. And through Accounting for Sustainability, HMT will introduce connected sustainability reporting in 2011/12 – bringing together reporting on expenditure and carbon reduction, waste management and use of finite resources.