Clegg to deny coalition split on green economy

Speaking to an energy conference at Lancaster House, London, Mr Clegg will say that Ministers are “unreservedly committed” to helping the low-carbon sector thrive, insisting that “no one in government” wants to depart from the programme to decarbonise Britain’s economy as part of the fight against climate change.

Mr Clegg will tell an audience of business figures that the UK is “leading from the front” in a global revolution towards cleaner sources of energy.

He will announce a £100m contract by UK Green Investments with fund managers Equitix and SDCL to provide initial funding to encourage foreign and domestic investment in non-domestic energy efficiency.

And he will hail the announcement by recycling firm Closed Loop of a £12m expansion of its plastics purification plant in Dagenham, east London, which is expected to create and safeguard 100 jobs.

Many environmentalists were dismayed by Chancellor George Osborne’s comment to last year’s Tory conference that, while the Government would invest in green energy, “we’re not going to save the planet by putting our country out of business”.

And the Treasury is understood to have demanded cuts of 25 per cent in subsidies for onshore windpower in a tussle between Mr Osborne and Liberal Democrat Energy Secretary Ed Davey, which ended last month with a 10 per cent cut but question marks hanging over the 2030 target for decarbonising the economy.

Mr Clegg will today play down the spat and add: “This coalition Government is unreservedly committed to helping our low-carbon sector thrive – no ifs, no buts. And we want to support the shift by traditional industry to cleaner sources of energy – while of course recognising the pressures they face.”

The Liberal Democrat leader will add: “The coalition is sometimes presented in the Press as if it is riddled with debate and division with regard to greening the economy. That isn’t the case.

“Yes, there will be internal discussions and debates on the balance and sequencing of different policies – that’s the nature of any government – and energy policies will evolve over time as costs come down.

“That’s why, for example, we could recently reduce the subsidy for onshore wind. But the entire Government is working within the parameters of the carbon budget, which sets the pace for decarbonising our economy, and there is no one in Government who wants to depart from that.”