Green Economy Initiatives in the UK
The UK needs to invest around PS50 billion annually through to 2030 to meet its net zero targets. Council areas with established and capable supply chains stand to benefit the most from this investment.
The government’s green economy plans include: a Green Homes Grant, decarbonising public buildings and creating green jobs. It is also introducing mandatory climate disclosures, a UK taxonomy and the first Sovereign Green Bond.
Renewable Energy
The UK has a strong base of expertise and knowledge in renewable energy technologies. A thriving sector can be the catalyst for innovation and job creation, while helping the UK achieve its 2050 carbon target (EEG 2019).
The government is investing in low-carbon electricity generation, electrifying heating, decarbonising transport and decommissioning hard-to-abate coal power stations. We are also working with devolved administrations on their proposals for local industrial decarbonisation plans.
We are supporting a green economy skills programme through a network of single points of contact across the UK, as well as improving the Institute for Apprenticeships and Technical Education occupational maps to include ‘green occupations’.
Energy Efficiency
A credible strategy, including environmental tax reform, can also strengthen the UK economy and create jobs.
Energy efficiency programmes can reduce emissions from buildings, transport and industry and help keep bills down for businesses. Almost all councils reviewed support energy efficiency programmes with grants and one-to-one advice from sector experts. Some also offer eco innovation support that helps businesses develop and commercialise green products and services.
Carbon Capture and Storage
Carbon capture, usage and storage (CCUS) is an essential part of the UK’s ambition to achieve net zero emissions by 2050. BP is leading the development of two industrial CCUS clusters in Teesside and the Humber that will capture CO2 from a range of energy intensive processes and store it underground in saline reservoirs.
The UK Government committed PS30 billion to domestic investments in green economy industries at Spending Review 2021, PS6 billion in the Autumn Statement 2022, and PS20 billion in the Spring Budget 2023.
Electric Vehicles
With transport accounting for 25% of UK emissions, EVs offer one of the most significant routes to achieving net zero. But EV adoption requires not only more vehicles, but also a cleaner electric grid.
The Government has set out a roadmap to achieve this with the launch of the Low Carbon Fuels Strategy in 2023, and simplified regulation being a key component of the Skidmore and Vallance Reviews.
Workplace charging is also helping to boost uptake, with a voucher-based scheme to support the installation of EV sockets at workplaces (capped at PS350 per socket and 40 sockets across all sites per applicant). The UK average is one charge point for every 15 EVs, with London leading the way. But with the cost of living crisis weighing on drivers, more needs to be done.
Biofuels
In 2014 the UK consumed 1.767 billion litres of liquid biofuel, up 11.5 % from 2013.
The Government has committed PS12 billion to a ten-point plan to stimulate green infrastructure investment. Investors are keen to see clear timescales and commitments for the plan.
Concerns were raised that a moratorium would prevent the development of effective 2nd-generation biofuels and rely instead on first-generation biomass to meet targets (EAC, 2008gr: 7). Government officials responded that it was not possible to delay mandatory biofuel targets while waiting for a better technology, and that the current level of incentives already provided sufficient incentive to biofuel production (EAC, 2000: 29).
The fuels will be labelled to reflect the low carbon content.
