Spring Statement confirms the downscaling of Net Zero
legislation as a recurring theme of this administration.
Targeted policies are welcome, but disappointing to see
promising measures previously announced not expanded on.
The UK net zero economy is a proven success story, that
will continue to grow the economy and lead to cheaper bills, but
is being held back by lack of Government support.
The Association for Renewable Energy and Clean Technology (REA)
is disheartened by the lack of sector wide measures introduced by
Chancellor of the Exchequer in today’s Spring Statement.
The REA and most academic studies have been very clear that
tackling climate change and boosting our economy is not an
‘either-or’ decision. The UK’s net zero economy grew 9% in 2023,
in contrast to stagnation in the wider economy with GDP growth at
just 0.1%. And yet, sensible measures to
support this UK success story have not been implemented.
On a more positive note, the REA welcomes the increase in the
latest Contracts for Difference (CfD) budget to over £1 billion,
as the Government takes steps to provide clarity and certainty
for investment into the UK’s renewables sector.
The Chancellor also announced a £270 million joint investment in
zero-carbon aircraft technology to develop a more sustainable
aviation sector, and for zero emissions automotive technology.
There was also a modest increase of £120 million to Green
Industries Growth Accelerator fund, to support the expansion of
clean energy supply chains across the UK.
The REA also welcomes the 12-month extension on the levy on the
profits of North Sea oil and gas companies under the Energy
Profits Levy.
Whilst many of the measures announced will need to be analysed in
more detail, the Spring Statement arguably confirms the
diminishing of Net Zero legislation as a recurring theme of this
administration.
REA Members will receive a full policy breakdown of the Spring
Statement later today.
Read the REA 2024
Manifesto.
Frank Gordon, Director of Policy, REA (Association for
Renewable Energy and Clean Technology) said:
"This is a political budget above all that does not reflect
the urgency of Net Zero and while we welcome the CfD budget
announced alongside the Spring Statement today, and extension of
the windfall tax on oil and gas excess profits, this is
disappointing overall.
In particular, the Chancellor had promised the sector a
response to the US investment in green supply chains and
manufacturing at the last fiscal event and to see very little
once again on how we can ensure the UK does not miss out on the
vital green jobs and investment up for grabs is very
disappointing. "
