Greater support of low carbon investment is needed from government to “plug the gap” left by its earlier climate and energy reset according to a new report penned by a former HM Treasury economist. Writing in his capacity as co-head of policy at the Grantham Research Institute at the London School of Economics and Political Science (LSE), Dimitri Zenghelis – once head of economic forecasting at HMT – has claimed frequent changes to policy “at a time of imposed fiscal austerity” has undermined confidence in the policy environment and discouraged investors. Zenghelis references changes to subsidies, cancellation of zero-carbon homes policy, and ending the climate change levy exemption for renewables as just some of the decisions taken in the last year to compromise the policy agenda in the UK. Zenghelis claims that the government will need to prompt greater levels of both public and private investment in low carbon infrastructure if it is to hit its own carbon targets required in the Climate Change Act.
Solar Portal 12th Aug 2016 read more »