Lord Donoughue – 2016 Parliamentary Question to the Department for Energy and Climate Change
The below Parliamentary question was asked by Lord Donoughue on 2016-06-07.
To ask Her Majesty’s Government why the total investment costs per tonne of CO2 equivalent abated by the Clean Technology Fund has increased from £21.40 to £26.40 according to the Department of Energy and Climate Change’s additional business case and intervention summary 2015; and what is being done to address rising costs.
Lord Bourne of Aberystwyth
Clean Technology Fund (CTF) approval decisions are based on six CTF Investment Criteria, of which cost-effectiveness is one. The total investment cost per tonne is estimated based on the portfolio of CTF projects that have been approved by the Trust Fund Committee. The original appraisal relied on the assessment of 30 individual projects approved by 2013, whereas the latest analysis is based on 57 projects approved by 2015. The total cost per tonne across the portfolio has changed as more projects have been approved, and will be expected to continue to change as the CTF portfolio increases, reflecting the range of projects included in the portfolio. As an example, sectors such as transport and energy efficiency typically have a higher cost per tonne than renewable energy projects. All projects deliver good value for money and wider benefits, such as private finance leveraged, jobs created, and increased numbers of people with access to energy.
In order to guarantee the continued value for money of the CTF, there is a robust project approval process ensuring compliance with the standards set out in the CTF investment criteria. As a contributor country the UK approves the allocation of CTF resources for programmes, projects, and administrative budgets; assessing new proposals to ensure continued the value for money (see attachment with further detail on the CTF governance structure).
