Five energy trade associations have issued a warning to the UK Chancellor that green growth is at severe risk unless he prioritises vital measures in the Spring Budget.
In a letter to Jeremy Hunt, the Chief Executives of RenewableUK, Energy UK, the Nuclear Industry Association, Scottish Renewables and Solar Energy UK said: “Despite our industry’s commitment to the low carbon energy transition, we are concerned that there is no clear government plan to deliver green economic growth and continue attracting clean energy investment into the UK”.
The trade associations are calling for key steps in the Spring Budget to address this.
These include a reform of capital allowances and financial incentives for investment in low carbon energy in response to those being offered by the US in its $216bn Inflation Reduction Act and the EU in its REPowerEU package.
The letter states: “With many clean energy projects already delaying Final Investment Decision (FID) and supply chain companies squeezed by the energy crisis and inflationary pressures, a tangible step like enhanced capital allowances announced in the Spring Budget will do more to persuade investors than the promises of a future plan for economic growth.”
The letter to the Chancellor concludes: “Any delay or shortfall in ambition will mean that our climate targets, and the economic opportunities they offer, will be increasingly hard to realise. Time is against us and we cannot afford to get this wrong.”
RenewableUK’s CEO Dan McGrail added: “If the UK is to stay ahead in the global race for clean energy and drive consumer bills down, we need the Chancellor to adopt bold measures in the Spring Budget to retain and boost private investment in the energy transition.
“The significant threats which the renewable energy sector faces are putting at risk our ability to deliver green growth and meet the Government’s vital net zero target. Investments in renewable energy and new supply chains may dry up unless the Chancellor takes decisive action and implements the key measures which we have set out in our letter to secure tens of thousands of high-quality jobs and attract billions in private investment.”