Fears mount for green projects as Osborne culls RDAs

Some of the UK's most high-profile green projects face an uncertain future after George Osborne's Budget this week confirmed plans to phase out Regional Development Agencies (RDAs) and replace them with new Local Enterprise Partnerships (LEPs).

The UK's network of nine RDAs played a central role in many of the previous government's low-carbon initiatives, providing investment and support to many projects.

For example, the South West RDA is managing the UK's £42m Wave Hub project, while One North East has played a key role in the development of the New and Renewable Energy Centre in Blyth and the securing of flagship green projects, such as Nissan's plans for a electric car plant in Sunderland and Clipper Windpower's project to build blades for the world's largest wind turbine.

Similarly, RDAs have been tasked with managing the previous government's Low Carbon Economic Area initiative, which saw regions designated as centres for the development of various clean technologies.

However, the Conservatives have consistently voiced opposition to the concept of RDAs and Osborne confirmed in his first Budget that they would be replaced by LEPs.

The government said that the process would begin with a white paper detailing the role of the LEPs, which is expected to be published later in the summer.

However, in the meantime it remains unclear how RDA-backed low-carbon projects will be affected.

"It is too early to say [how green projects will be affected]," said a spokesman for one RDA. "We don't even know what our budget cuts will be for the rest of this year. All we've been told is that they will be confirmed in a few days."

His comments were echoed by a spokeswoman for Yorkshire Forward, which manages the Yorkshire and Humber carb on capture and storage LCEA. "There's a lot of uncertainty and we are waiting for the next line from government," she said. "Green projects may or may not be cut. We know that the green agenda is important to the government, but we do not yet know how specific projects will be affected."

However, hopes remain that some of the RDA's low-carbon projects, such as the Wave Hub and Clipper Windpower's giant turbine project, are so advanced that it will be difficult to impose significant cuts upon them.

It also remains possible that the LEPs will pick up many of the low-carbon projects pioneered by the RDAs.

Speaking in his Budget address, Osborne said the new agencies would serve to empower local leadership and promote job creation in all parts of the country. He also vowed that the government would not cut investment in capital projects and announced plans for a regional growth fund and new tax breaks to support businesses operating in regions where the private sector is "not nearly strong enough".

The South West RDA said in a statement that the RDA network would play a proactive role in ensuring a smooth transition to the new system of regional development.

"The RDA Network accepts change is coming and we are ready for it," it said. "We are committed to ensuring as smooth a transition as possible. For us, it is the work and the expertise that underpins it that matters, more than the institutional arrangements – vital work at such a critical time for the national economy".

The Department of Energy and Climate Change was unavailable to comment at the time of publication.