Energy sector trade body Energy UK has published the final part of its report on the Clean Growth Gap, Accelerating Action, highlighting the action needed to stop the UK falling behind in the race to net zero.
The series, in partnership with Oxford Economics, looks at how the UK can attract the investment needed to keep up the pace of the energy transition. It highlights the growing global competition for investment which could see the UK losing ground to other countries.
The report comes as the UK government has decided to slow the pace of the net zero transition by pushing back cutoff dates for gas boiler and petrol and diesel car sales to 2035. Consultancy Cornwall Insight also reports that the UK’s electric vehicle (EV) growth is falling behind the rest of Europe.
Energy UK says that pushing ahead with net zero “will maximise the benefits the UK can expect in terms of investment, productivity and job growth”, and its report shows how every region in the UK can benefit from the transition.
#NetZero is an opportunity to show climate leadership on the global stage, but also an enormous economic opportunity for every region of the #UK.— Energy UK (@EnergyUKcomms) September 27, 2023
➡️Check out the last report of the #CleanGrowthGap series https://t.co/9Ltarsy1Rt
The latest report highlights seven actions the UK should take to attract the private investment needed for to reach net zero.
They include changing the tax system to match the requirements for low carbon projects, amending the Electricity Generation Levy which penalises clean energy producers, improving the value of the CfD regime to reflect economic realities, creating a stable environment for investors, and tackling delays to infrastructure and grid connections.
Emma Pinchbeck, Energy UK’s chief executive said: “Much of the focus in the past week has been on how the cost of net zero and the energy transition might affect individuals and households, but in reality, most of the investment needed will come from the private sector with the benefits flowing straight to people across the UK.”
“That’s why this series of reports has focussed on how we can create an environment that builds on our country’s strengths and maximises its attractiveness to investors in a world where there is intensifying competition for this funding… Sadly the messaging from last week will have left many investors questioning whether the UK has either the commitment or the belief to deliver on this. We have a vital choice to make on our future here and – as these reports have shown – the right decision is to seize the opportunity and make it the focus of our efforts to deliver economic growth, high-quality jobs and greater prosperity over the coming years and decades,” Pinchbeck added.
Pinchbeck was also a member of the government’s energy efficiency taskforce, which was scrapped over the weekend as the government rolled back the gas boiler ban. She also commented on the news that the government would go ahead with the Rosebank oil field, saying the news was not a long term solution to the UK’s energy needs.
We don’t work on upstream oil and gas at EUK. But given the likely reporting on Rosebank, worth repeating that domestic oil & gas is primarily sold into, and the price is set, in global markets. The long term solution for uk bills & security is in reducing our gas demand.— Emma Pinchbeck (@ELPinchbeck) September 27, 2023