Sectors: Renewables

Certain green sector watchers were left disappointed by the recent emergency Budget, which had been expected to outline commitments to develop Britain’s renewable energy sector.

Prior to the election, the Conservatives emphasised the party’s ‘green’ credentials, and there were expectations of clear plans being announced for a ‘green investment bank’, subsidies for the renewable energy sector and financial incentives to make homes more energy efficient, none of which have materialised.

Proposals for the ‘green investment bank’ have been moved forward to the autumn following a spending review, as has the ‘climate change levy’, a proposed charge on companies involved in high-carbon industries.

Industry body the Renewable Energy Association was left irate, with its chief executive, Gaynor Hartnell, arguing that the government, which has pledged to become the ‘greenest government ever’, needs to ‘apply the same firmness of purpose it has shown today (with regard to the Budget) to renewables’.

AIM-quoted companies likely to be disappointed by the Budget include wind farm business Renewable Energy Generation and Oxford clean fuel firm Oxford Catalysts. Having experienced a volatile few years, many followers of the renewable energy sector may well be wondering whether coalition promises for a greener future were little more than hot air.