The United Kingdom announced plans last week to reduce solar energy subsidies starting July 1 after an installation boom nearly exhausted its budget last year. "Costs are coming down, and we’re determined that the tariff comes down with it," Energy Minister Greg Barker said. "This is a very ambitious scheme and good news for the industry." Installations have increased significantly since the subsidies were announced in April 2010, and last year Britain installed three percent of the world's new solar panels.

The Scottish government plans to increase tidal energy support while decreasing subsidies for biomass and wind power plants. Tidal energy projects will now receive five Renewable Obligation Certificates, awarded to utilities for renewable energy generation, for every megawatt hour produced through 2013, compared with the three certificates offered previously.

A government study indicated that the United Kingdom may substantially surpass carbon reduction targets, an accomplishment that Chris Huhne, secretary of state for energy and climate change, hopes will demonstrate to Durban that cuts are achievable. The report "shows other economies that, with the right planning, the transition to a low-carbon economy is achievable and affordable," said Huhne. Emissions have dropped by 25% since 1990, but the report indicated that those cuts were much easier to achieve than those needed over the next 20 years.

The United Kingdom Supreme Court rejected on Friday the government's appeal of a ruling deeming its changes to the solar tariff scheme "legally flawed." The ruling ends months of uncertainty for the industry, and determines that solar installations completed between December and early March will receive the original 43 per kilowatt hour (kwh) rate for 25 years, rather than the new 21 per kwh rate proposed by the government. "Permission to appeal was refused because the application does not raise an arguable point of law of general public importance," read the ruling.

Britain said last week that, despite protests from the industry, it would reduce support tariffs for large-scale solar plants starting August 1, attempting to avoid the creation of a large number of new commercial solar farms that would compete with homes for funding. Ronan O'Regan, director of energy and utilities at consultancy PwC, said that the move would allow the government to focus on the smaller end of the market, as the reduction would only affect plants producing more than 50 kilowatts.

Britain's National Ecosystems Assessment released a report last week suggesting that natural resources and a healthy environment were worth billions of pounds to Britain. The report stated that emphasis should be shifted away from producing more food and goods. "Humans rely on the way ecosystems services control our climate--pollution, water quality, pollination--and we're finding out that many of these regulating services are degrading," said Bob Watson, chief scientific adviser to the Department for Environment.

Point Carbon analysts said that UK's plan to introduce a price floor for carbon emissions permits may harm business by introducing a £9.3 ($15) billion burden, but will likely cut emissions from the energy industry by 5.3 percent. The proposed floor will begin at £16 ($26) per metric ton in 2013 and rise to £30 ($49) per metric ton by 2030. However, according to Point Carbon, the price could rise to €54 ($78) per metric ton by 2020, while the rest of EU's Emissions Trading Scheme sees prices closer to €36 ($52).

Britain's proposed sale of 15% of its publicly owned forest has been delayed while the government attempts to protect public access and biodiversity. The Forestry Commission's plans to sell 258,000 hectares of UK forests have been met with public opposition and cross-party criticism, and the chief of the Royal Society for the Protection of Birds, which may benefit from the sale by taking over a "heritage forest," said that the New Forest "cannot be run by charity." The forests were slated to bring in as much as 100 million pounds to close its record deficit.

UK's Department for Environment, Food, and Rural Affairs revealed some of its plans for "climate proofing" the nation last week, implementing climate adaptation plans submitted by government agencies. Under the Climate Act, organizations dealing with national infrastructure must release similar plans for national protection to face possible rising temperatures, rising sea levels, and increased incidents of extreme weather.