Environmental Transformation Fund (ETF)

The Stern Review of 2006 concluded that three elements of policy are required for an effective global response to the threat of dangerous climate change: The pricing of carbon, Support for innovation and deployment of low-carbon technologies, and Removing the barriers to energy efficiency. The Environmental Transformation Fund (ETF) is part of the second element of the then government response, in the UK and internationally, to create a GBP 1.2 billion fund for the three years from April 2008 to March 2011. The international fund disbursed GBP 800 million over the three years, focusing on projects that supported development and poverty reduction through environmental protection, and will help poor countries to tackle climate change. The domestic element of the ETF had a budget of at least GBP 400 million over the period with spending on the demonstration and deployment of low-carbon, non-nuclear, energy and energy efficiency technologies. Programmes funded included: Hydrogen Fuel Cell and Carbon Abatement Demonstration Programme Marine Renewables Deployment Fund Low Carbon Buildings Programmes Bioenergy Capital Grants Programme Offshore Wind Capital Grants programme Near Zero Emissions from Coal project Carbon Trusts innovation programme, including research accelerators, technology accelerators, and incubators Carbon Trust funding for new low-carbon enterprises, including Partnership for Renewables Carbon Trust investments in low carbon technology businesses Carbon Trust energy efficiency loans scheme for small and medium sized enterprises Salix Finance public sector revolving loan schemes and support for low carbon energy innovation