MRW is an informative recycling website and here keeps us up to date with the new plans for budget cuts to DEFRA and DECC during the establishment of our coalition government: http://www.mrw.co.uk/news/more-cuts-for-environment-and-climate-change-not-ruled-out/8600487.article
Also see DECC itself for more information:
Despite these cuts, the EU agreed on 26th May that our targets for carbon emissions reduction will be increased from 20% to 30% below 1990 levels by 2020. Part of this decision to achieve a greater reduction is due to the recession, which last year alone saw emissions at 14% below 1990 levels. This is a good thing and hopefully the US will follow suit and increase their targets too, which currently stand at a mere 3-4% reduction by 2020. We are barely into the move to a coalition government so it is not yet agreed that these higher targets will be unilaterally adopted within the EU. This is set to cost quite a lot, which may increase carbon taxes, although apparently we will also save money due to having a healthier population as a result of less air pollution. I am intrigued to see how this pans out, and of course will do my part and encourage others to help with the reductions!