www.guardian.co.uk 14th February 2011

In his 2012 Budget Report, US President Barak Obama has proposed opening up funding for clean energy by reducing subsidies for fossil fuels. The report would see the Department of Energy receiving a budget of $29.5 billion for the fiscal year, which is a mark up of 4.2% from the proposed 2011 budget. Of this, around $8 billion would go towards renewable energy such as wind and solar. To help make up this amount, Obama has asked Congress to take away $3.6 billion in oil and gas subsidies in addition to cut government funding for oil and gas research and hydrogen fuel programmes. Predictably, most of the Republican party, who now have the majority in the House of Representatives, oppose the budget claiming that the cuts would cost jobs in a time of economic uncertainty. The party has also vocalised its intention to reduce funding for the Environmental Protection Agency’s programme to regulate greenhouse has emissions claiming that ‘Congress should be the one to decide whether to fight Climate Change, not the administration.’ Obama’s budget already slashes $1.3 billion of the EPA by reducing funds aimed at the Great Lakes Restoration and a clean diesel programme. According to analysts, the most likely condition in the budget to make it into law is extra funding for electric cars, as this could be paired with an opposing bill to increase money for natural gas fuelled cars.