§ Adam PriceTo ask the Secretary of State for Environment, Food and Rural Affairs what measures the Government are introducing to encourage the production of energy crops. [50453]
§ Mr. MorleyThe Government have welcomed the publication of the energy review by the performance and innovation unit, which draws attention to the key role of renewable energy sources, including energy crops, in moving to a low carbon economy. The Government plan a public consultation on the key recommendations of the report leading to a White Paper in the autumn. This Department has allocated support of £29 million to solid biomass crops through the energy crops scheme, part of the England Rural Development Programme. The Renewables Obligation permits the co-firing of energy crops with fossil fuels. Working with other Departments we are putting in place further schemes with funding of £70 million which will develop markets for biomass, including purpose grown energy crops and material from forests, in heat, combined heat and power and electricity generation. We are also working closely with the Countryside Agency which has launched the Community Renewables Initiative to help local communities develop renewable energy projects. In the Budget my right hon. Friend the Chancellor confirmed the new duty rate for biodiesel set at 20p per litre below the rate for ultra low sulphur diesel. The Government are considering carefully the recommendation of the Policy Commission on the Future of Farming and Food that duty on biofuels should be reduced to the rates applied to other clean fuels.