Boost for UK clean energy growth as PM arrives at COP29

The UK will lead the world in the pro-growth clean energy transition, the Prime Minister has announced at the first day of the World Leaders Summit at COP.   

At the COP29 Summit in Baku, Azerbaijan, the Prime Minister has announced another major step forward in the Government's mission to make the UK a clean energy superpower.  

Offshore wind developers will be incentivised to invest in the UK's historic industrial heartlands, coastal areas and oil and gas communities, boosting green jobs, and to support sustainable factories.  

Delivering on a Government manifesto commitment, the Clean Industry Bonus will come with a provisional £27 million per Gigawatt of offshore wind projects. That means if between 7 to 8GW of offshore wind apply, the budget could go up to £200m. 

The UK is wasting no time to accelerate the global transition to clean energy and putting the UK at the forefront of the industries of the future. The bonus will create the conditions for cleaner energy industries to thrive in the UK and elsewhere, while rewarding firms for investing in less polluting suppliers – tackling the climate crisis at home and abroad. 

It will help to crowd in private investment in hard-working communities across Scotland, Wales, the North East and North West, to build more sustainable offshore wind blades, cables and ports – reducing industrial emissions and helping support the rollout of clean, secure, cheap power for families.      

Thousands of highly skilled jobs such as engineers, electricians or welders across the supply chain - will create vibrant towns and cities fit for a clean energy future.    

Prime Minister Keir Starmer said:   

“Our mission to make Britain a clean energy superpower will fire up our industrial heartlands and break down barriers to growth in our hard-working towns and cities.  

“It will strengthen our national security - protecting our children and grandchildren from the climate crisis, and impact this will have on their future prosperity.   

“By acting decisively and early, the UK has an opportunity to lead the world in the industries of the future — working in partnership with business — creating real energy security, cutting energy bills and building jobs and supply chains in the UK.   

“But we can't move alone - and at COP I will lead efforts to protect Britain from climate change by also working with other countries to accelerate the global clean transition to tackle the causes at its root.”

The Government has committed to tackling the climate crisis and accelerating towards net zero to make the British people better off, primarily by investing in clean homegrown power to end national exposure to fossil fuel markets and the dictators who control them.   

Swift action has already been taken to cut emissions through the Government's clean power by 2030 mission. Steps taken so far include:  

• Lifting the ban on onshore wind in England. 

• Delivering a record number of clean energy projects through its renewables auction. 

• Consenting unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined. 

• Launching Great British Energy 

• Firing the starting gun on the UK's Carbon Capture and Storage industry, with funding agreed for two clusters in Teesside and Merseyside. 

In a further boost to British manufacturing ScottishPower has awarded a £1 billion turbine contract for its East Anglia TWO offshore windfarm to Siemens Gamesa, including blade production at its Hull blade factory.

This major contract will inject growth into the industrial heartlands with Siemens Gamesa employing over 1,300 people in Humberside, following extensive recruitment, whilst ScottishPower's investment in East Anglia supports thousands more. Its East Anglia TWO wind farm alone will produce enough clean energy to power the equivalent of almost 1 million homes. 

This cash injection has shown funding is already flowing from last month's commitment at the International Investment Summit where Iberdrola doubled their investment in the UK, through Scottish Power, from £12bn to £24bn over the next 4 years. 

This includes funding for the East Anglia TWO wind farm off the Suffolk coast - unlocked by this Government's expanded allocation at the most recent renewables auction round. 

Keith Anderson, CEO of ScottishPower, said:  

“Today is tangible proof of the importance of Britain's Clean Power Mission – our East Anglia projects are delivering UK jobs, UK supply chain contracts and UK green energy.    

“Getting more projects like East Anglia TWO off the blocks quicker will turbo-boost the UK's supply chain, giving companies like Siemens Gamesa the confidence to invest in facilities like this blade factory in Hull. 

“Britain's clean power targets are achievable but demanding.  We've doubled our investment and are ready to play our part with Government as it gets barriers out the way to build more projects like this, alongside the electricity networks needed to ferry green, homegrown power across the country.” 

Darren Davidson, UK and Ireland Vice President for Siemens Energy and Siemens Gamesa said:

“The UK is the first leading industrial country to simultaneously phase out coal power and be a leader in offshore wind. 

“If we're to achieve our net zero targets, it's mission critical this momentum is maintained. As well as delivering the blades to power the UK's energy transition, our factory in Hull is acting as a catalyst for economic growth and green jobs across the region.” 

At COP29 the UK will encourage other nations to follow its lead to deliver change – strong leadership at home to deliver action abroad.  

The Prime Minister is expected to use the visit to make the case for supporting the global transition. In his address to other countries he will argue the global economy depends on nature and a stable climate that is under threat.   

The 2022 UK heatwave saw record-breaking 40°C temperatures in England and caused 3000 excess deaths. These events are estimated to be 10x more likely due to climate change.

Climate finance at scale is critical to avoiding the worst consequences of climate change, but the UK is clear public finance alone cannot meet the growing needs of developing countries and innovation is essential to unlock billions in private finance.  

This is why the UK will also use the summit to announce the launch of the new CIF Capital Market Mechanism on the London Stock Exchange.

This world-leading, innovative new financial mechanism, has the potential to mobilise up to $75 billion in additional climate capital for developing countries over the next decade.

Its listing in London shows the confidence in our economy and showcases the city as a green finance capital, and the UK as an attractive place to invest in the future.  

It will help developing countries cut emissions, build renewable energy and adapt to a rapidly changing climate – all at no extra cost to the British taxpayers.   

The mechanism demonstrates the commitment of the UK to work with other like-minded countries and partners like the World Bank to mobilise the finance needed to drive the global clean energy transition.

This will also support the UK Government's priorities for COP29 - to unveil the UK's new emission reduction goals, secure an ambitious new global climate goal (NCQG) and the Global Clean Power Alliance by showing the potential to unlock billions more in climate finance for clean energy projects over the next decade.