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Renewable subsidy cuts sends a “worrying signal to businesses”

John Cridland, head of the employers’ group CBI, has urged ministers to provide frims with the confidence that they really mean to tackle climate change, the BBC has reported.

The government cut subsidies in the summer because the £7.6bn budget had been exceeded.

Ministers say they are committed to protecting the climate.

They said they would announce replacement renewables policies soon.

Mr Cridland said: “The green economy is an emerging market in its own right, brimming with opportunity.

“Yet, with the roll-back of renewables policies and the mixed messages on energy efficiency, the government risks sending a worrying signal to businesses.

“We need all countries to pull in the same direction at the Paris Climate Summit (in November) to give firms the certainty and confidence they need to invest in the green economy for the long run”.

Critics are also complaining that recent tax changes will deter people from taking decisions that help the climate.

A Treasury spokeswoman said: “Our support has already driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies.”

Defending the decision to impose a carbon tax on green energy, she added that it was right to incentivise the efficient use of renewable power as it would supply 30% of UK electricity in 2020.

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