"This week the Government separately promised to enshrine the Paris commitment to a ‘net zero’ economy into UK law. That might just mean admitting that the end is nigh for our economy’s reliance on fossil fuels, and getting on with the urgent job of transitioning industries and communities that depend on jobs from drilling to a sustainable future."

There are concerns that the budget has sidelined 'green energy':
Futures Forum: Climate change: and the budget >>> fossil fuel tax breaks and a clean energy tax hike

Meanwhile, oil, gas and nuclear are being subsidized at the expense of 'smarter' technologies:
Futures Forum: "Energy economics are changing rapidly and so the momentum is towards decentralised, smart and flexible energy systems."

Whilst some would disagree with the numbers
The Great Fossil Fuel Subsidy Myth | OilPrice.com

... others are asking some obvious questions:
Energy subsidies: renewables, fossil fuels or nuclear? : Business for Scotland.
New figures published by the IMF show the UK provides more subsidies for fossil fuels than renewables | British Politics and Policy at LSE

This is the latest from the New Economics Foundation - which ends with the UK government's commitment to a 'zero-carbon' future:

Energy round-up: another £1 billion tax cut for oil and gas

Photo credit:   imahornfan

MARCH 18, 2016 // BY: DAVID POWELL

"We understand that tax affects behaviour. So let’s tax the things we want to reduce, not the things we want to encourage."

Thus spoke Chancellor George Osborne in his 2016 Budget this week, announcing a surprise tax on fizzy pop (a good idea).  Less surprising were more tax cuts for North Sea oil and gas firms.

The Chancellor’s determination to drill ‘every drop we can’ from the dwindling reserves of the UK Continental Shelf, with new measures to ease the impact of ultra-low oil prices made for yet another driller-friendly Budget. But at a cost to the Exchequer – to the tune of over £1 billion in this Parliament alone.

Most fields have just had their tax bill cut by a fifth, through changes to two of the three main levies on North Sea profits:  

• a flat rate of Corporation Tax at a special rate of 30% - unchanged in the Budget;
• an additional Supplementary Charge that stood before the Budget at another 20%, now cut to 10%;
• and fields that have been pumping since before 1991 also paid the older Petroleum Revenue Tax (PRT), which was levied at 35% of the remaining profit. This was axed entirely.

On top of oil tax cuts announced in 2015, these latest changes will cost the Exchequer a total of £2.3 billion over the next five years. That’s a big hit for a public purse fighting a losing battle with the Chancellor’s self-imposed fiscal targets.  

The industry, meanwhile, has reacted with muted pleasure – welcoming the cuts as “progress”, but already claiming they aren’t big enough. Shares in BP and Shell nonetheless rose by 3.5 and 3% respectively.

Fossil fuels are a shared national resource owned by us all, with the rights to exploit it leading to huge profits for oil companies. It’s right to tax those profits to get a fair return to the taxpayer.

What’s more, fossil fuel companies are largely let off the hook for the costs of the climate damage and air pollution caused by their products – an effective subsidy that’s very conservatively estimated by the International Monetary Fund at up to £26 billion every year in the UK alone.

North Sea fossil fuels are small in the global context and in long-term decline, so on a technical level the climate impacts of wringing this out a bit longer may not be huge.

But the ink is barely dry on the Paris Agreement on climate change, which obliges signatories to act with the “highest possible ambition” in pursuit of the goal to keep most fossil fuels in the ground. All countries – particularly those such as the UK that have grown rich through many decades of exploiting fossil fuels – will need to show leadership.

Promisingly, this week the Government separately promised to enshrine the Paris commitment to a ‘net zero’ economy into UK law. That might just mean admitting that the end is nigh for our economy’s reliance on fossil fuels, and getting on with the urgent job of transitioning industries and communities that depend on jobs from drilling to a sustainable future. 

Don't miss these:

New figures from the International Energy Agency suggest that global emissions from energy have stalled for the second year in a row – leading them to claim that we may be “decoupling” emissions from economic growth.  

Why is the world’s biggest coal company on the brink of the drink?

Liberate Tate wins six year campaign to end BP sponsorship of Tate

In other news…

Fuel duty’s not for turning

The Budget also saw fuel duty frozen - again.  The Treasury claims fuel is 18 pence per litre cheaper today than it would have otherwise been in 2010 thanks to not increasing fuel duty in line with inflation. Some had suggested this might be the year Osborne increased duty at least in line with inflation – not least because he promised in 2011 that a sustained low oil price would mean he’d do exactly that. But putting up petrol tax isn’t popular – perhaps a key calculation with the EU Referendum approaching. 

Climate scientists shocked by record temperatures

NASA scientists announced that February 2016 smashed global temperature records by a “stunning” margin. It takes a lot to get scientists to use phrases like “climate emergency”, but the terrifying findings that last month was 1.35C warmer than the average February temperature between 1951 and 1980 seemed an appropriate trigger.  The Paris Climate Agreement commits the world to aim for no more than 1.5C.

Hinkley needs more cash

The spiralling costs of the proposed Hinkley Point nuclear reactor led the boss of EDF to ask the French Government for yet more help.  EDF’s share price has struggled in recent months as the Hinkley bill continues to mount, and the company finds itself a reported £11 billion short of the capital needed.

MPs warn on green investor confidence

An influential committee of MPs slammed the Government for undermining investor confidence in the green economy – saying its “sudden policy changes… threaten the UK’s ability to meet its energy security and climate change objectives”. 

Energy round-up: another £1 billion tax cut for oil and gas | New Economics Foundation

See also:
Futures Forum: Sunshine revolution: the age of solar power
Futures Forum: Britain's boom-and-bust in solar power >>> cutting the Feed-in-Tariff and cutting investment in community energy schemes
Futures Forum: Climate change: and carbon pricing >>> emissions trading isn't working
Futures Forum: Climate change: carbon tax >>> "the polluter pays"
Futures Forum: Energy revolution: “There is growing evidence that some fundamental changes are coming that will over time put a question mark over investments in old energy systems.”
Futures Forum: Squaring the circle: low oil prices, high renewable prices ... ... and high carbon emissions

And:
Futures Forum: Climate change: climate jobs: green jobs
Futures Forum: Climate change >>> This Changes Everything
Futures Forum: A solution to our housing problems: the 'impossible' zero-carbon house
Futures Forum: Climate change: zero emissions target
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