Prime Minister must ensure investment in UK’s green economy doesn’t drain away

“The Prime Minister is right in saying the UK should embrace the huge economic opportunities in green industries like offshore wind and create well-paid jobs by making Britain the best place to invest in clean tech. However, today’s announcements will undoubtedly knock investor confidence, as many green technology leaders are now nervous about the increasing uncertainty around net zero policies in the UK.

“The Government is going to have to outline clear measures to restore market confidence in the Autumn Statement, not least to ensure that we can compete against the USA, Europe and China for investment at a time when the global race to build new renewable energy projects has never been more intense. The financial incentives being offered elsewhere risk draining private investment from the UK, so we need to see capital allowances which will bring developers back to the table here and stop vital energy infrastructure projects being put on hold. We also need to see new incentives focused on investment in manufacturing.

“The Prime Minister acknowledged the need to reform the annual auction process for new renewable energy projects, as there were no bids for new offshore wind farms this year, and the need to speed up the planning process as it can take over ten years to get some projects up and running. These are excellent aims, but we need clarity and detail urgently on how this will be achieved, otherwise they will remain nothing more than aspirations.

“If Mr Sunak is really serious about taking bold measures to save money for consumers, he should end our dependence on expensive gas as fast as possible, as the volatility of international gas markets caused the cost of living crisis. The fact is that the speeding up the transition to a green economy is the only way to protect billpayers from price shocks”.