The Pre-Budget Report: green measures at-a-glance

For the first time in years, the government will today, for fairly obvious reasons, publish a Pre-Budget Report that has not been trailed as the "greenest budget ever".

But there is still expected to be plenty of announcements affecting the green business movement and designed to drive the transition towards a low-carbon economy - including further details on the government's energy-efficiency programme and fresh funding for flood defence - as well as some signs the government could be backing away from green taxes with plans to defer changes to vehicle excise duty.

Here we offer the most significant announcements for green businesses as they happen:

Transport investment

The chancellor, Alistair Darling, claims investment in "modernising infrastructure and transport links" will continue despite the economic downturn as it provides a means of both driving economic activity and safeguarding the UK's competitiveness for the future.

Energy efficiency

He announces plans to bring forward £3bn of capital-spending projects from 2011/2012 to next year as a means of creating jobs and driving economic activity.

The spending is to be focused on motorway expansion, social housing, school refurbishment, energy-efficiency programmes and other energy schemes.

The chancellor claims the capital spending will "put people to work, modernise infrastructure and create more energy-efficient homes".

Fuel duty

In a surprise move, the widely trailed cut in VAT is to be offset by an increase in fuel duty to ensure motorists are paying the same amount.

The government is always reluctant to classify fuel duty as a green tax, but with motorists already benefiting from falling pump prices this can be p ositioned as an attempt to help accelerate the switch to more fuel-efficient vehicles.

Insulation

The chancellor has promised an extra £100m and a further £50m to be brought forward to help 60,000 homes improve their energy efficiency.

Climate change

The chancellor has insisted that "the economic recovery must support our environmental objectives, not come at their expense," adding that the transition to a low-carbon economy must continue.

As such, he has pledged that £535m of the extra £3bn capital spending will focus on energy efficiency, rail transport and environmental protection.

He added that the bulk of the rail investment will focus on delivering 200 more trains, while environmental protection will primarily target flood protection improvements.

He said that the projects will help to deliver "high-value, green-collar jobs " as part of the government's goal of generating one million green jobs in the UK.

Renewables

Darling said that the government will extend the Renewables Obligation - its primary incentive mechanism for renewable energy - by 10 years to 2037. He said that the move would help bolster investor confidence in renewable energy projects.

The move is likely to be welcomed by the renewables industry, which had been voicing concerns that the 2027 expiry date was affecting confidence in projects that are expected to deliver returns over 15 to 20 years.

Vehicle Excise Duty

As expected, Darling has deferred changes to vehicle excise duty that would have introduced big increases in road tax for the most polluting vehicles from next April.

He said that he remained committed to the changes as they "provide a powerful incentive to purchase less polluting cars", but said that in the current climate they should be delayed.

The changes will now be delayed from 2009 to 2010. When the changes do come into effect in 2010 the most polluting cars will now only see vehicle excise duty rise by £30 as opposed to £90. The most efficient cars will still see cuts in duty of £30.

Reaction

So there we have it.

Ed Miliband, Hilary Benn, The Environment Agency, Greenpeace, the TUC and all those business groups calling for an Obama-style "green new deal" will be disappointed (as they were always going to be given the state of the government's finances).

But it looks like the insulation programme will be more wide reaching than originally intended and renewables developers will be popping champagne corks at the surprise announcement that the renewables obligation will be extended.

Darling is bound to draw fire for deferring vehicle excise duty, but the government is likely to counter that the refusal to let the VAT cuts make motoring cheaper still shows that they are mindful of their environmental obligations.

In short, for all the furore over tax cuts and borrowing, it is a rather conservative budget from a green perspective, continuing to stress the government's commitment to the low-carbon economy and green-collar jobs, but not exactly brimming with ambition.