THE UK Government has set aside an innovation budget of £60 million to support carbon capture and storage (CCS) technologies that can potentially reduce the cost of low-carbon generation in the UK.

The funding, announced in yesterday's Budget statement, was presented by ministers as evidence of its commitment to growing low-carbon economies.

Ministers also flagged that there would no change in the government's ambition to deploy new renewable generation or strike prices.

In yesterday's statement, the government said the established Levy Control Framework arrangements and budget provide the flexibility to achieve the investment and growth needed to tackle climate change and meet the renewable energy target.