Decisions Decisions... End fossil fuel subsidies or cut wind farm subsidies?
As campaigners call for the end to fossil fuel subsidies, the Government considers cutting wind farm subsidies by 20 to 25%. A subsidy is an assistance paid to a business or economic sector, in this case, the Government paying energy producing companies a sum of money.
The first half of the story begins with the campaigners, of which 1 million of them have signed a petition to phase out state support for global warming fossil fuels. Even celebrities such as Stephen Fry are joining in the campaign and Tweeting about the issue. The campaign is designed to put pressure on world leaders before the Rio+20 conference starting tomorrow.
The campaigners are unhappy at the amount of money, estimated at $1 trillion in 2012 alone, being paid to fossil fuel industries around the world. Campaigners call for the end of fossil fuel subsidies by 2015 and they believe that the sooner these subsidies end and money is taken out of politics, the sooner carbon will be taken out of the energy system.
At the other end of the stick, the Government plan to cut subsidies up to 25% for onshore wind farms. The proposal was made by Chancellor George Osborne and has caused an explosion within the Cabinet. The Liberal Democrats have accused George Osborne of ‘playing politics’ in an attempt to regain his reputation after the messy Budget announcements in March.
Some believe that the Government should continue to pay subsidies to green energy companies to ensure the production of renewable energy however, the Liberal Democrats have faced criticisms from ojbectors. Mr Clegg claimed that the payments are vital in getting the industry off the ground and that his party were not ‘addicted’ to subsidising wind farms.
There are currently 3,000 wind turbines in Britain and a further 4,500 planned. If the wind farm subsidies were cut, what do you think will happen to these wind farms? It is clear that there is a huge difference in opinion within the coalition over this issue but do you think this will effect the target set to reduce the UK's carbon emissions by 2020? Do you side with campaigners that the subsidies for fossil fuels should be stopped?(0) Comments
- Pali Smart Quote SDLT Calculator Updated
- New Japanese Knotweed Indemnity Policy now live on Paliltd.com
- Invitation to a FREE CPD Webinar: Insurance service developments and compliance with the Insurance Distribution Directive
- Invitation to FREE Webinar: A NEW Agricultural Search
- Pali First To Launch Enhanced Indemnity Policy Facility
Subscribe to receive a weekly update of our blog posts