The Department for Environment, Food and Rural Affairs (Defra) has announced an increase in funding for clean energy technologies, investments and enterprises to over £400 million over the next three years.

As part of the domestic Environmental Transformation Fund (ETF), the Carbon Trust will receive £47.4m to bring forward new energy technologies such as offshore wind, third-generation photovoltaic power, marine energy and biomass heating.

This funding will also be used to increase the Carbon Trust's energy-saving loans scheme for small and medium sized enterprises by a further £12m to £62m since 2003.

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In addition, over the next three years the government will also provide around £10m for a new anaerobic digestion demonstration programme. Up to four commercial-scale facilities will show the potential of this technology to create renewable energy, reduce greenhouse gas emissions and avoid waste being sent to landfill.

The 1.4% real increase in Defra's overall budget on 2007/08 shows the government's commitment to the environment with significant new investment in low-carbon technology; sustainable waste infrastructure; flood protection and the Rural Development Programme for England.

Announcing the budget settlement, Hilary Benn said: "Now is the time to act together to tackle climate change and protect our environment. The Government must lead the way by ensuring we are investing in building a low carbon Britain.

"Defra spending will increase to almost £4bn over the next three years but we must invest wisely. That is why we are focusing our efforts on helping to provide sustainable options for the future as well as supporting and influencing governments, businesses and consumers locally and globally."

(VB/JM)