- UK government has set out a major set of green strategy documents in response to the High Court ruling last year to strengthen their Net Zero Strategy.
- The vast majority of the policies and investment are not new and were announced last year.
- The package is underwhelming and is not enough to get the UK on track to net zero or ensure the UK is internationally competitive in the clean tech industries of tomorrow.
Story
The Government has launched a major set of green policies in order to strengthen UK energy security and boost the UK clean tech sector.
The announcements include a revised Net Zero Strategy after they were ordered by the High Court to revise it because it was not ambitious or detailed enough. The Government is also responding to the independent Net Zero Review by the Conservative backbench MP Chris Skidmore and launching a revised Green Finance Strategy.
The vast majority of the policies set out today were announced last year and there is little new money on the table. The package as a whole is underwhelming. Although it marks progress, it is unlikely to convince international investors that the UK can retain leadership as the green industrial revolution unfolds.
The government has been under immense pressure to show that they are serious about competing in the race to lead the development of net zero technologies after bold moves by the United States and Europe. In the US, the Inflation Reduction Act has been launched, which it is estimated by Goldman Sachs will lead to over $1 trillion of clean tech investment. The European Commission has responded with its plan for a Net Zero Industry Act, which will also generate billions of euros for green industry.
Quotes
Ed Matthew, Campaigns Director at E3G said:
“The world is undergoing the greatest industrial transformation in 300 years as the race to zero emissions intensifies. Most of the policies launched today were announced last year and are not bold enough to keep the UK competitive in the clean tech race or put us back on track to net zero. It is underwhelming.”
On green finance, Ed Matthew, Campaigns Director at E3G at E3G said:
“Without finance, nothing on net zero will get done. The revised Green Finance Strategy sets out some welcome steps towards the Prime Minister’s ambition of forging a world-leading Net Zero Financial Centre. But it will need to be underpinned by a comprehensive Net Zero Investment Plan, an independent tracking of net zero financial flows, a strong net zero mandate for regulators and a credible green taxonomy. More progress is needed.”
On energy efficiency and clean heat, Juliet Phillips, Senior Policy Advisor at E3G said:
“The new insulation scheme is a welcome step forward, although the Conservatives have still not allocated a third (£2.1bn) of the funding they pledged in their manifesto to energy efficiency and clean heat. Even more retrofit funding is needed to get the UK on track for net zero. The new scheme will only insulate 100,000 more homes a year which is far too little when there are 17 million homes in the UK with poor insulation.
While there’s still a long road ahead to decarbonise the UK’s homes and get off expensive and polluting fossil gas, today’s announcements signal that the government is backing clean, electric heat as the major solution. Steps to lower the running costs of electricity and boost the heat pump market help lay the foundations for the take-off of clean heat in the UK.
Households and industry are now relying on the government’s plans for long-term regulations for energy efficiency and heat, which will provide the certainty needed to invest in the future of the UK’s housing.”
On trade, Jonny Peters, Senior Policy Advisor at E3G said:
“The UK considering a carbon border adjustment mechanism (CBAM) is a positive development that would help British manufacturing to decarbonise. However, CBAMs are internationally contentious. The UK will need a fully-fledged diplomatic strategy to address these sensitivities.
Cooperation with the EU – especially UK-EU Emissions Trading Scheme linking – and cooperation with developing countries – including offers of international climate finance – must be the foundation of the UK’s approach over the coming months.”
Available for comment
E3G experts are available for commentary – please contact them directly:
Juliet Phillips, Senior Policy Advisor, UK Place-Based Transitions, E3G – energy efficiency, home retrofits, heat pumps
Juliet.Phillips@e3g.org +44 (0) 7548 097061
Ed Matthew, Campaigns Director, E3G – UK politics and overall policy announcements
Ed.Matthew@e3g.org +44 (0) 7827 157 906
Jonny Peters, Senior Policy Advisor, E3G – trade, CBAM
Jonny.peters@e3g.org +44 (0)7954201039
Kate Levick, Associate Director, Sustainable Finance, E3G – international green finance
Kate.levick@e3g.org +44 (0) 207 593 2025
Heather McKay, Senior Policy Advisor, UK Sustainable Finance – green finance, net zero investment plan
Heather.mckay@e3g.org +44 (0) 770 727 5359
Louise Burrows, Senior Policy Advisor, E3G – methane, gas flaring, fossil fuels
Louise.burrows@e3g.org +44 (0) 7864802177
Notes to Editors
- E3G is an independent climate change think tank with a global outlook. We work on the frontier of the climate landscape, tackling the barriers and advancing the solutions to a safe climate. Our goal is to translate climate politics, economics and policies into action. About – E3G
- For further enquiries email press@e3g.org or phone +44 (0)7783 787 863
- You are invited to attend a media briefing with experts from E3G, the climate politics think tank, covering essential background and context ahead of the World Bank and IMF Spring Meetings, being held 10-14 April. The briefing will take place Thursday 30 March. 15-16 CET; 9-10 ET. Please register now via this link.
