Green Day net zero plans fail to impress: clean tech seeks greater UK support

ByTom Martin

Green Day net zero plans fail to impress: clean tech seeks greater UK support

So much for a green technology big bang.

The UK Government’s latest net zero plans, released on ‘Green Day’ have disappointed experts who see them as inadequate for boosting energy security and reducing harmful emissions.

While some see the “Powering Up Britain” strategy as a significant shift towards energy security and sustainability, others feel that the package fails to offer anything new and lacks the necessary fiscal firepower to attract investment in the renewable and clean energy sector.

Assessing the UK’s net zero plan and RenewableUK’s warning

The package was released last Thursday among almost 3,000 pages of work. Measures include a zero-emission vehicle mandate, increased funding to reduce pollution from industry, a new ‘green finance strategy’, and plans to speed up the planning process for energy infrastructure. Carbon capture and a handful green hydrogen projects have also been given the go-ahead.

However, RenewableUK has warned that the UK risks surrendering its global lead in renewable energy without bolder action. The country’s failure to meet its international climate pledge for 2030 under the Paris Agreement has also been highlighted in the government’s own ‘carbon budget delivery plan’.

Chancellor Hunt considers incentives and policy changes amid global competition

Despite this, Chancellor Jeremy Hunt has signalled that more incentives could be announced later this year. He has warned that the US Inflation Reduction Act (IRA), which includes significant subsidies and tax credits for clean energy technologies, poses a “very real competitive threat” to the UK. The EU and other countries are also scaling up their ambition and investment in green energy.

Hunt has commissioned a review of the UK’s foreign direct investment framework to counter the impact of Joe Biden’s policies, but has also warned against engaging in a “distortive global subsidy race”.

Energy firms pin hopes on UK Government’s autumn statement

Clean tech startups and renewable energy companies will be looking towards Hunt’s autumn statement for concrete commitments to help the UK remain competitive in the global market. As the UK seeks to transform its energy system and unlock private investment, businesses want greater support and incentives to flourish.