Lib-Con coalition vows to put "green economy" at heart of government

David Cameron and Nick Clegg today vowed to make the formation of a low-carbon economy one of the centrepieces of their coalition government, pledging to deliver a "full programme of measures" designed to deliver deep cuts in greenhouse gas emissions.

Speaking this afternoon in their first joint press conference, Lib Dem leader and deputy prime minister Nick Clegg said the formation of the coalition marked the moment when "fine words on the environment are finally translated into real action".

His comments were echoed by newly elected prime minister David Cameron, who insisted the government would be "passionate" about the formation of the "green economy".

The press conference was held as the new government released a seven-page document outlining the coalition agreement between the two parties, including a full page on environmental policy.

It states that the parties "agree to implement a full programme of measures to fulfil our joint ambitions for a low-carbon and eco-friendly economy", and includes a full list of shared green policies that will be introduced during the next parliament.

Flagship proposals include a commitment to establish a smart grid and roll out smart meters, form a green investment bank, launch a green home scheme paid for through savings in energy bills, develop a high-speed rail link, mandate the rollout of a national electric vehicle charging network, cancel plans for a third runway at Heathrow and block proposals for expansion at Stansted and Gatwick, and introduce a new performance standard that will prevent coal-fired power stations being built unless they are equipped with sufficient CCS to meet the new standard.

It also proposes a major overhaul of renewable energy policy that will see the "full establishment of feed-in tariff systems in electricity – as well as the maintenance of banded ROCs (renewable obligation certificates)", and new measures to promote the adoption of anaerobic digestion and marine energy technologies.

The move is likely to draw a mixed response from the renewable energy industry, with some experts having warned that any change to the ROC system could disrupt the sector and undermine investor confidence.

In a move that could alienate some Conservative back benchers opposed to wind farms and renewable energy projects, the coalition has also committed to " increase the target for energy from renewable sources, subject to the advice of the Climate Change Committee".