I would be interested to hear of more striking example of institutionalized failure than the UK government's likely upcoming decision to cut funding for home energy efficiency (reported in FoE issues fuel poverty ultimatum). Defra officials see the £2 million it provides to National Energy Action as a cost, to be pruned. If the HMG was serious about factoring the cost of carbon into investment decisions, it would recognize that an allocation towards energy efficiency one hundred times the size was a serious under-investment.
P.S. 25 Feb: "The government has switched money meant to support low carbon and renewable technologies to clean up the waste from Britain's nuclear power stations" - see Green Cash Raid - end note to Atomic waste clean-up plan comes under fire.