Securing more investment in British renewables
30 June 2016
Today, the Government has approved an ambitious Carbon Budget out to 2032, underlying a strong UK framework for continued investment in renewables.
RenewableUK says today’s announcement that the Government has approved an ambitious Carbon Budget out to 2032 underlines that there is a strong UK framework for continued investment in renewables.
Ministers have announced they will enact the 5th Carbon Budget, cutting greenhouse gas emissions by 57 percent compared to 1990 levels, during the period 2028 to 2032, as recommended by the Committee on Climate Change.
RenewableUK’s Chief Executive, Hugh McNeal, said: “This Government is global leader in tackling climate change. Today’s announcement is especially welcome given the uncertainty caused by last week’s referendum. It’s a clear signal that the UK will continue to show bold leadership on carbon reduction. This will allow investment to continue to flow into renewable energy projects throughout the UK”.
This gives the renewables industry and investors more long-term confidence, but will need to be backed up by supportive policies that will unlock finance in much needed new energy infrastructure.
James Court, Head of Policy and External Affairs, Renewable Energy Association said “The fundamentals of energy have not changed post-referendum, we still need a new generation that is cost effective, low carbon and secure.
“This would be the worst time for the government to row back or U-turn on existing commitments, which would be toxic to inward investors. So this is a positive first step, but will need to be backed up by a robust energy plan by the end of the year.
“The referendum has been a shock to economy, yet we still have a looming energy gap. Renewables will be easier to finance than larger centralised projects, will give the UK energy security and price stability, as well as boost new technology jobs and inward investment."
The latest carbon budget sets the UK on course to ensuring it meets its legally binding target of reducing carbon emissions by 80 percent by 2050 compared to 1990 levels. Its predecessor, the 4th Carbon Budget, covering 2023 to 2027, set out a 52 percent reduction.
EEF welcomes today’s announcement:
Claire Jakobsson, Head of Energy and Environment Policy at EEF, the manufacturers’ organisation, says: “Today’s announcement from the Government, setting the Fifth Carbon Budget in line with the Committee on Climate Change's recommendation, is to be welcomed not least by those manufacturers sitting in many of the UK’s low carbon supply chains.
“With the unprecedented level of uncertainty created by last week’s referendum result, it is essential that the Government looks to provide stability and continuity where it is able to. Confirming the Fifth Budget at this level provides a positive signal that whatever the UK’s future relationship with the EU is to be, the scale of our emissions reduction ambitions and the direction of travel will remain unchanged.
“Government must now work closely with industry to develop the detail that will underpin this target, ensuring a framework that helps our most energy intensive industries decarbonise competitively, but also drawing on the strengths of UK manufacturing to ensure the UK economy feels the full economic benefit of our decarbonisation drive.”
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