Net Zero Strategy: Government unveils historic plan to make UK ‘fighting fit’ for the global green industrial revolution
Boris Johnson declares ‘our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero’
The government has today published a landmark Net Zero Strategy, detailing how it intends to catalyse multi-billion pound investment in clean technologies over the coming decade so as to bolster the UK’s economic competitiveness and put the country on a course to meet its ‘world-leading’ climate goals.
The hugely wide-ranging strategy features a raft of new policy plans and spending commitments that together are expected to unlock £90bn of private sector investment through to 2030 and secure around 440,000 jobs, while also ensuring the UK meets its emissions targets for the 2020s and remains “on track” to deliver on its targets for the 2030s onwards.
Specifically, it promises new support for nuclear, carbon capture and storage, and hydrogen projects, confirms plans to create two zero carbon industrial hubs, and announces increased funding for electric vehicle infrastructure, heat pump installations, sustainable aviation fuels (SAFs), and natural carbon sinks, among many other measures.
The government stressed the new strategy would unlock multiple economic and environmental benefits, while having a negligible cost impact on consumers and businesses.
“The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country,” said Prime Minister Boris Johnson. “By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way.”
He also argued the Strategy would provide a template for other governments to follow as they prepare to gather at next month’s Glasgow Summit. “With the major climate summit COP26 just around the corner, our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero,” he said.
The Net Zero Strategy provides the centrepiece in a raft of new climate-related policy documents released this afternoon, including the long-awaited Heat and Buildings Strategy that was trailled by the government last night; a formal response to the Climate Change Committee’s highly critical report on the UK’s climate adaptation strategy; new principles for successful net zero behaviour change initiatives; a review of literature on gender, race, and social inclusion in the net zero transition; a wave of calls for evidence and consultations on new net zero policy proposals; and the Treasury’s much-anticipated Net Zero Review.
Campaigners had feared the Net Zero Review would overstate the costs associated with the net zero transition, amidst an increasingly fierce briefing war between the Treasury and other departments over the pace and cost of the government’s net zero plans.
But the final version of the report stresses that while it is not meant as a cost-benefit analysis it is clear that a well-managed net zero transition can deliver net economic benefits to the UK. “Global action to mitigate climate change is essential to long-term UK prosperity,” the review states. “The majority of global GDP is now covered by net zero targets. As the world decarbonises, UK action can generate benefits to businesses and households across the country… Overall, a successful and orderly transition for the economy could realise more benefits – improved resource efficiency for businesses, lower household costs, and wider health co-benefits – than an economy based on fossil fuel consumption.”
The Net Zero Strategy similarly argues that a combination of energy efficiency measures and falling clean tech costs mean the measures in the strategy should ensure people’s energy bills will be lower by 2024 than if no action was taken, particularly given the current global gas price surge.
Business Secretary Kwasi Kwarteng said the new Net Zero Strategy would serve to enhance the UK’s long term competitiveness and cement its position as leader in multiple clean tech industries.
“There is a global race to develop new green technology, kick-start new industries and attract private investment,” he said. “The countries that capture the benefits of this global green industrial revolution will enjoy unrivalled growth and prosperity for decades to come – and it’s our job to ensure the UK is fighting fit.
“Today’s plan will not only unlock billions of pounds of investment to boost the UK’s competitive advantage in green technologies, but will create thousands of jobs in new, future-proof industries – clearly demonstrating that going green and economic growth go hand in hand.”
His comments were echoed by Energy Minister Greg Hands who presented the new strategy to the House of Commons earlier this afternoon. “This is not just an environmental transition, it represents an important economic change [akin to the] explosion in industry and exports seen in the very first Industrial Revolution,” he said. “Over 250 years on, we will fully embrace this new Green Industrial Revolution, helping the UK to level up as we build back better and get to the front of the global race to go green… This strategy will harness the power of the private sector, giving businesses and industry the certainty they need to invest and grow in the UK to make the UK home to new ambitious projects.”
The 368-page strategy features a raft of new spending and policy plans that the government said amounted to a total of £26bn of government capital investment since the Prime Minister announced the Ten Point Plan for a Green Industrial Revolution last autumn. The publication of the document comes on the same day as the government used its Global Investment Summit to announce 18 deals with foreign companies that should result in just under £10bn of inward investment in low carbon infrastructure.
New funding pledges and policy proposals featured in the strategy cover large parts of the economy and are designed to leverage in additional investment from businesses to help accelerate the net zero transition.
For example, the strategy promises an extra £350m to support the electrification of UK vehicles, another £620m for targeted electric vehicle (EV) grants and infrastructure, and a commitment to consult on the introduction of a zero emission vehicle (ZEV) mandate that would require manufacturers to produce a set proportion of zero emission models that increases over time in preparedness for the UK’s ban on the sale of international combustion engine cars and vans from 2030.
Similarly, the government promises to “kick-start the commercialisation” of sustainable aviation fuel (SAF) made from sustainable materials such as everyday household waste, flue gases from industry, carbon captured from the atmosphere and excess electricity. The Strategy includes an “ambition” to enable the delivery of 10 per cent SAF by 2030 and an initial £180m in funding to support the development of UK SAF plants.
In addition, £140m is to be provided through a new Industrial and Hydrogen Revenue Support scheme to accelerate the development of industrial carbon capture and hydrogen plants. The announcement comes alongside confirmation two carbon capture clusters – the Hynet Cluster in North West England and North Wales and the East Coast Cluster in Teesside and the Humber – have been selected for £1bn of government support.
And the Strategy includes a new £120m Future Nuclear Enabling Fund to support plans for a new wave of nuclear power plants development, with the government again indicating that it intends to develop a new support mechanism for new-build nuclear plants.
Rounding out the headline commitments the strategy promises an extra £500m towards clean tech innovation projects, taking total net zero research and innovation funding to at least £1.5bn; an additional £124m for the Nature for Climate Fund to help the government meeting its commitment to restore approximately 280,000 hectares of peat in England by 2050 and treble woodland creation in England by the end of the parliament; and £3.9bn in support of the Heat and Buildings Strategy, including the new £450m three-year Boiler Upgrade Scheme to help households switch to heat pumps.
More to follow…
