Low Carbon Economic Area


From the Written Cabinet Statement prepared 12th February 2010 by Ieuan Wyn Jones, Deputy First Minister and Minister for the Economy and Transport and Jane Davidson, Minister for Environment, Sustainability and Housing.

"We are pleased to announce that Wales has become a designated Low Carbon Economic Area (LCEA) for hydrogen and low carbon fuel technologies.

The development of an alternative fuels corridor along the M4 will enable the testing and practical deployment of vehicles running on hydrogen, natural gas, bio-methane or electricity.

Benefits of the LCEA in Wales will include:

  • A focused and coordinated Welsh led approach to exploiting existing hydrogen and alternative fuels expertise
  • A platform for growth in green jobs in the automotive sector supply chain and stationary fuel cell applications
  • A competitive advantage when attracting new investment and R&D in hydrogen technologies
  • Acceleration of the growth of low carbon industries, skills base and supply chain.

A LCEA presents an opportunity for Wales to enhance post recession growth in low carbon technologies that builds on our current plans, indigenous skills, R&D base, infrastructure and natural resources.  As a result, a LCEA brand could strengthen the case for attracting funding and would place Wales in the position of a recognised UK lead region.

We envisage that the establishment of the LCEA for hydrogen and alternative fuels will be of immense interest to vehicle manufacturers, component makers and researchers worldwide. The presence of one of the world’s longest free-range corridors for hydrogen, for example, will put Wales firmly on the map of alternative transport technologies – providing a huge advantage in establishing clusters of relevant industries and associated employment prospects and skills development in this exciting field.

This development presents a real opportunity to increase research funding for our academic institutions so they can continue to play an important role in developing new technologies, new products and processes to drive forward the economy and help in the post recession recovery.”

We will continue to progress other opportunities for more effective development of low carbon economic activities in pursuit of green jobs and sustainable outcomes, including for example marine renewables and further consideration of the use of low carbon fuels within the context of future transport policy.

The LCEA concept will help to drive economic development in line with One Wales: One Planet, Green Jobs Strategy and our commitment to achieve emissions reductions of 3% per year by 2011 in areas of devolved competence.

This is an early example our renewed approach to economic development required to address the pressing long-term challenges of climate change and sustainability.  Similar approaches will be required in other areas of low carbon economic development, such as marine renewables."

USW Logo
ERDF logo