The UK Chancellor is being called upon to step up green growth at a government level by prioritising environmentally-friendly measures and investment in the next budget. Five trade associations in the energy sector have warned that the desired targets for green growth in the UK were currently severely threatened.
The CEOs of Energy UK, RenewableUK, Scottish Renewables, the Nuclear Industry Association and Solar Energy UK wrote together to say their industry had already made a clear commitment towards driving the transition to clean energy. They state that they are increasingly concerned about the lack of government strategy to deliver the much-discussed green growth and low-carbon economy. They added that without this clear plan, it would also become increasingly difficult to attract clean energy investment from overseas.
The group wants to see key measures announced in the Spring budget, including a new approach to financial investment incentives and capital allowances for the low-carbon economy. This, they argue, will help to mirror the investment and support schemes being offered in Europe with the REPowerEU deal, and in America within its $216 billion Inflation Reduction Act.
The CEOs stated that there were already a large number of clean energy projects that were seeking to delay their financial investment decisions until more clarity could be achieved. At the same time, they warned, supply chain businesses were being squeezed by inflation and the energy crisis and further measures, such as enhanced capital measures, would be a key step in building certainty in the market and reassurance amongst investors.
The letter concluded that any shortfall or delay to the government's clean energy ambitions would mean that the country's green target achievement - and economic growth - would be severely compromised and that time was of the essence.