UK Government invests in commercialising low-carbon technologies 
Thanks to the announcement today of an extra £170 million for the cross-Government Environmental Transformation Fund (ETF), Government investment in commercialising low-carbon technologies in the UK will top £370 million over the next three years
The new domestic element of the fund will invest in the demonstration and deployment of low carbon energy and energy efficiency technologies within England and the UK, to help reduce carbon emissions and improve the security of energy supply.
When added to the £800 million already announced for the fund's international element - to focus on protecting the environment and alleviating poverty in developing countries - the funding will bring total investment through the Environmental Transformation Fund to £1.2 billion between 2008 and 2011.
Environment Secretary Hilary Benn said: "The world needs major investment in technologies that will put us on the path to a low carbon economy. The policies and programmes we have in place to fight climate change will help drive investment in clean, renewable technologies, with benefits for jobs and Britain's economy. The funding we're announcing today will provide further support to that effort.
"Britain must be at the forefront of developing and deploying this technology - whether it be LED lighting for people's homes, biomass boilers for small businesses, or major sources of renewable electricity from wind and the sea to reduce our dependence on fossil fuels."
John Hutton, Secretary of State, BERR, said: "Our investment in this fund demonstrates the importance of new technologies to delivering a low carbon economy. The ongoing commitment, specifically targeted at a portfolio of low carbon energy technologies, will provide the sector with the confidence it needs to invest in innovation and ensure that new products and processes are brought to market soon, making a real contribution to reducing our carbon emissions now and in the future and to realise the business opportunity of a low carbon economy."
The domestic element of the ETF, led by Defra and BERR, will build on existing programmes in this area. It will work closely with the Technology Strategy Board and the new Energy Technologies Institute, which itself will have up to £1.1 billion to spend over the next ten years. The ETF's specific role is to support the commercialisation of technologies which the Energy Technologies Institute, Technology Strategy Board and others have helped to develop.
It will support continued investment by the Carbon Trust in technology programmes such as their work to accelerate cost-effective organic solar photovoltaic cells. It will also look to increase the amount invested through the Trust in interest-free energy efficiency loans for small and medium-sized businesses, and through Salix Finance in public sector revolving loan schemes.
The international element of the ETF, announced in the 2007 Budget and allocated to Defra and DfID equally, will fund overseas development activities that deliver both poverty reduction and environmental benefits in developing countries. £50m has been earmarked for tackling deforestation in the Congo Basin.
The Environmental Transformation Fund was first announced in June 2006. The domestic funding will be divided between BERR and Defra. BERR's share of the fund totals £200 million to be invested across the UK, including £41 million new money over and above expected spend over the period on previously announced departmental programmes. Defra's share of the domestic ETF will be £170 million, to be invested within England, including an increase of £129 million on expected spend over the period.
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