Ahead of the UK general election, industry trade body Energy UK has urged the next government to consider the economic benefits of investing in the green transition.
Data released last year by Energy UK showed that accelerating the transition to net zero could boost the UK economy by £240 billion by 2050. This analysis also noted that attempts at rolling back green policies earlier this decade added £9.8 billion to consumer energy bills in 2022/2023.
Emma Pinchbeck, CEO of Energy UK, said: “Failure to meet net zero will impose greater costs on UK taxpayers than the investments required to do so. Both the Climate Change Committee and Office for Budget Responsibility estimate that most of the investment to reach Net Zero will come from the private sector, but capital has a choice of location, and investors need regulatory and political certainty.
“This is the economic opportunity of a generation, and the UK has the chance to lead the world in technologies like hydrogen, CCUS and floating offshore wind. But global competition is increasing, and urgency is needed to reap the rewards of a globally leading energy sector.”
The need for investment
Energy UK’s calls to politicians come at a time when MPs are frequently out of touch with public views on renewable energy. A recent YouGov poll commissioned by the Energy and Climate Intelligence Unit (ECIU) revealed a major disconnect between MPs’ views and the general public; 62% of UK adults believe that the UK should reduce fossil fuel usage and increase reliance on renewable energy to boost energy security, compared to just 48% of MPs.
The ECIU has also called on the next government to boost its support for renewable energy. Its analysis predicts that without significant improvement in clean energy tech rollout, reliance on imported energy will grow by a quarter by 2030.
However, a report by climate think tank E3G found that all of the G7 nations are at significant risk of missing targets to decarbonise their power sectors by 2035, with the UK criticised for its high reliance on fossil fuels and inadequate policies.
Meanwhile, private investment in clean energy has skyrocketed; UK financial institutions tripled their investment into clean energy projects across 2023, with £1.8 billion invested over the year.
Pinchbeck also notes that the less tangible benefits of green energy investment should be considered in policy planning, noting that “above all, a fair transition will improve lives and livelihoods; warmer schools and hospitals can improve experiences and save money by saving energy, and cleaner transport reduces the associated pollution costs to the NHS.
“Boosting our domestic clean energy generation alongside a rapid roll-out of energy-efficiency measures will make the UK more resilient to global energy price shocks and bring stability to energy bills.”
She added a stern warning to those seeking to water down climate policy, adding: “We have seen the cost of slowing progress. We know what we need to do. History will not be kind to politicians too short-sighted to grasp these opportunities.”