Environment: Major projects to tackle climate change escape the knife

(PA)

Major programmes and projects to tackle climate change under the remit of the Department of Energy and Climate Change (DECC) were left largely untouched.

The highest-profile scheme to be confirmed is to build a demonstration plant for Carbon Capture and Storage (CCS), the technology to enable coal-fired power stations to minimise their emissions of CO2 by capturing them and storing them under the seabed. George Osborne said that there would be "up to £1bn" of funds – which was the hoped-for sum – for the winner of the competition to build the first plant.

The frontrunners had been the German power company E.ON and Spanish-owned Scottish power. But yesterday E.ON dropped out, so it is assumed that the contract will go to Scottish Power at Longannet, Fife.

Other survivors include the forthcoming Renewable Heat Incentive, and funding to modernise ports in the North-East to enable them to build wind turbines.