Wales should introduce an emergency so-called Low Carbon Stimulus after the UK leaves the European Union to pump-prime its economy, according to the Institute of Welsh Affairs.
In its ‘Re-energising Wales’ report published today, the IWA argues Wales’ new First Minister should “urgently ramp up ambition and action” on renewables and energy efficiency for 18 months after Brexit in March 2019.
Specific measures recommended include additional and match funding for community energy projects and ‘scrappage’ schemes to convert existing roofs and loft spaces into insulated rooms and solar or green roofs.
“Given any Brexit outcome will have short term negative impacts for Wales, the new First Minister should pump prime the Welsh economy with the low carbon action its medium-term future requires,” it said.
The Low Carbon Stimulus is one of several IWA recommendations for how Wales could achieve 100% renewable energy by 2035.
In a second report published today,’ The Economic Costs and Benefits of Renewable Energy Transition in Wales’, IWA analysis found the target would require £25bn of investment in renewables and £5bn in domestic energy efficiency interventions.
The analysis indicated 40% of renewable electricity gross spending (£9.7bn) could be captured by Wales along with 70% of domestic energy efficiency gross spending (£3.7bn).
Those investments could support 20,150 jobs annually across Wales over 15 years with around £7.4bn in total Welsh GVA created in total.
“These new reports outline the scale of the economic opportunity that renewable energy presents for Wales and make clear we already have many of the tools at our disposal to make significant progress,” said IWA Re-energising Wales project coordinator Shea Buckland-Jones.