Coalition making slow progress on most green pledges, analysis shows

The government has made moderate or no progress on more than three-quarters of its green promises because of obstruction by the Treasury and business departments and a lack of public backing from the prime minister, a stinging report from the UK's major environmental groups has concluded.

David Cameron pledged within days of taking office that he would lead the "greenest government ever" but the report found that good progress was being made on just seven out of 29 environmental pledges made in the coalition agreement.

John Sauven, executive director of Greenpeace, blamed government infighting: "This report shows that our Treasury and Department of Business are not backing British companies in the clean technology race. Those responsible for our economy seem blind to the opportunities. If the government don't wake up and grasp this generational chance, then UK PLC will lose out on jobs, on growth and much needed revenues."

"Without more public leadership from the prime minister, the government will miss opportunities to get economic and political benefit from its policies," said Matthew Spencer, director of Green Alliance.

A Downing St spokesman said: "The prime minister remains committed to making this the greenest government ever. Our record should be judged by actions not words. The government is enacting a number of pioneering reforms to promote a more diversified, more efficient and lower carbon mix of energy sources."

The analysis, which also involved WWF, Christian Aid and the RSPB, chimes with reports earlier in 2011 of battles between ministers over whether green measures can boost economic growth and criticism of Cameron for failing to "step up to the plate" on climate change. It analysed the performance of the government on its policy commitments to cut carbon emissions and boost the green economy, based on in-depth interviews with 40 ministers and officials across Whitehall.

Of the six promises judged outright failures, half were the responsibility of the Treasury, including a promise to increase the proportion of green taxes in overall revenue, which was hampered by George Osborne's cut in fuel duty. The Treasury has also failed to introduce green ISAs and to reform aviation taxes. A further 16 commitments were making only moderate progress, the report found, because of delays or badly designed policies.

The report argues that the green investment bank (GIB), another coalition promise, is vital in providing the investment needed to wean the UK off fossil fuels, but adds: "Progress has been hampered by the Treasury which was instrumental in preventing the GIB from having any borrowing powers during the course of this parliament. This is a prime example of a major decision the government essentially got right, but its impact is limited because of a lack of cross-government support."

Poor-quality policy is damaging another flagship government scheme, the "green deal", the report said. It is a scheme, described as "radical and game-changing" by ministers, to transform the nations' homes by enabling insulation and other energy efficiency measures to be paid for from the subsequent savings on gas and electricity bills. "The government is not working to this end. The programme is not being designed to deliver on a scale consistent with meeting carbon budgets," the report said.

The report says the government is making good progress on seven commitments including cancelling the third runway at Heathrow, introducing an £860m scheme for renewable heating systems, and most importantly, accepting its official adviser's recommendation that the UK should cut its greenhouse gas emissions by 50% by 2025, a world-leading ambition.

But it notes: "That decision [on the 2025 target] was a key moment [but] was undercut by the very public interdepartmental battle that preceded it which made the resistance of ministers in Treasury and business to stretching emissions reductions targets very clear. Ultimately the prime minister intervened but the perception of divisions within government over the importance of the low carbon transition remains." The battles over this and the GIB "convey the perception that core departments have to be dragged over the low carbon line, and undermine investor confidence".

The Department of Energy and Climate Change (Decc) said: "The government stands by its record on green policies over the last year to deliver the low-carbon economy, with progress on a whole host of areas and a lot more on the way: we are determined to make the UK the destination of choice for global low-carbon investment. On top of this, Whitehall is leading by example: we have cut emissions in central government departments by 13.8% in just one year."

"The Treasury has made important progress on a range of green initiatives," said a Treasury spokesman. "We are fulfilling our commitment to introduce a carbon price floor – a world first – [and have made] £3bn available for the green investment bank."

Mike Clarke, the chief executive of the RSPB, said: "There is a common thread running between the government's underwhelming performance on climate change, and its current, flawed approach to planning reform. We are seeing a clear conflict at the heart of the coalition between green growth and economic growth at any cost."

"Decc is trying hard and doing good things," said Spencer. "But the sum is less than the parts, as there is no strategy that joins them across Whitehall. Cameron appears to support this agenda but we want to get him out onto the stage."

Some commentators have suggested Cameron's near silence on climate issues since the election and Osborne's obstructions stem from not wanting to alienate the right wing of their party. "But that didn't stop [Margaret] Thatcher from championing the environment," said Spencer.