Chancellor Alistair Darling has announced a “green investment bank” in his Budget statement with £1bn capital to be raised from selling assets and a further £1bn sought from the private sector, but he made clear it will concentrate on “low carbon” projects, especially energy and transport proposals.

Interpreted narrowly, such a focus would do little for the brownfield industry or other environmental work.

Mr Darling said it would concentrate on energy and transport projects with significant risk of gaps in equity capital provision.

“It is expected that this will catalyse further investment to accelerate the rate of deployment of further projects,” he said.

“It is likely that the GIB will focus initially on offshore wind electricity generation.”

He said the Government will launch UK Finance for Growth to improve low-carbon SME equity support schemes and £60m will be spent on ports to support offshore wind.

The chancellor announced an increase of £8/t for landfill tax from 2014 but the lower rate will be frozen at £2.50/t for 2011-2.

The standard rate will not fall below £80/t in the future.

He said the list of wastes qualifying for the lower rate would remain broadly the same but a new set of qualifying criteria for it would be published in the autumn to provide a clearer environmental rationale for the lower rate.

“In addition, the Government does not plan to proceed with changes to the definition of taxable disposal,” he said.

http://www.hm-treasury.gov.uk/d/budget2010_pressnotice1.pdf

Article from Brownfield Briefing