Yesterday saw Prime Minister, Rishi Sunak, make a host of changes to a number of green policies – so how has the speech gone down within the industry?
“The government is going to have to outline clear measures to restore market confidence in the Autumn Statement,” said RenewableUK’s Chief Executive, Dan McGrail in reaction, stating that the announcements would undoubtedly knock what has already seemed to be shaky investor confidence in the UK. “The financial incentives being offered elsewhere risk draining private investment from the UK, so we need to see capital allowances which bring developers back to the table here and stop vital energy infrastructure projects being put on hold.”
McGrail said that if the Prime Minister is serious about taking bold measures to save money for consumers, then he and his government should end the UK’s dependence on expensive gas “as fast as possible”. “The fact is that the speeding up of the transition to a green economy is the only way to protect billpayers from price shocks.”
“Sudden changes to policies and targets like this are damaging to the very investment we need to fund the move towards Net Zero,” stated Energy UK Chief Executive, Emma Pinchbeck, “And jeopardise the economic benefits and opportunities this transformation could bring in terms of jobs, growth and greater prosperity to all parts of the country.”
Pinchbeck highlighted how businesses need certainty and stability as they look to invest, with targets helping them to do exactly that, before echoing the thoughts of McGrail by noting that, “By slowing efforts to reduce our dependency [on oil and gas], we do leave our economy and our people at the mercy of volatile expensive fossil fuels for longer.”
“This looks chaotic and not the way long-term policy should be made around important issues,” commented Energy and Climate Intelligence Unit (ECIU), Jess Ralston. “Quite the opposite of an honest debate, the implication that any of these policies were going to affect the cost of living here and now is untrue.”
Indeed, according to analysis from the ECIU, the changes announced by the Prime Minister could actually leave British households facing costs of £8bn more over the next decade should gas prices spike again, because of the move to scrap new energy efficiency regulations in the private rental sector.
Perhaps among the most notable reactions was that of the Climate Change Committee (CCC), which began by noting the government’s “legal obligation” to meet net zero and interim emissions reductions targets. The CCC highlighted how its confidence had fallen in the government’s ability to meet 2030 and 2035 targets back in its Progress Report in June, before stating “today’s announcement is likely to take the UK further away from being able to meet its legal commitments.
“This, coupled with the recent unsuccessful offshore wind auction, gives us concern.”
