Financial institutions including the Bank of America and insurance giant Aviva, have attacked George Osborne, for removing a key green clause from the new Energy Bill.

The clause, which promoted decarbonisation targets, would have promoted green energy within the UK’s energy network, ensuring near blanket coverage of all electrical needs by green sources by 2030.

Opponents to the removal of the clause, said that its inclusion in the energy bill, was vital to stimulating an overhaul of the UK’s energy framework, valued at up to £110 billion.

The removal of the clause has led energy firm s to hold back on moving forward with green energy investments in the lead up to the release of the UK government’s energy policy.

Ben Warren, a partner at EY, said: “The UK has the potential to offer a safe harbour for renewable energy investors in Europe, but the delay in delivering a stable policy framework is weakening our prospects and holding back investment.”

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