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HM Treasury publishes its interim report on the Net
Zero Review, with the final report due to be published in
Spring 2021
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The interim report recognises that the transition is
essential to long-term prosperity, but strikes a cautious tone
on the costs and benefits of the transition
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REA urges government to reduce uncertainty in the
sector by promoting positive performance of renewables and
clean technologies
Responding to the report, Dr Nina Skorupska, Chief Executive of
the Association for Renewable Energy and Clean Technology (REA),
said:
“It is vital that we understand the benefits the UK’s path to
Net Zero will have for our economy, as well as how we overcome
the challenges along the way. We, therefore, welcome HM
Treasury’s work in this area, as well as its recognition that the
transition is essential to the UK’s long-term prosperity. It is
also important to note the disclosure of the links between tax
revenue and sectors linked to fossil fuel usage which can and
will change.
“While there is uncertainty about the overall cost of the
UK’s energy transition, we would urge Treasury to look at the
historic performance of the renewables and clean technologies
sectors, as well as the appetite from the industry to go further.
As noted in the Interim Report, Government will play a key role
in reducing this uncertainty and bringing down capital costs,
alongside industry innovations.
“Short-term changes to tax revenues must not stop the UK’s
energy transition and we must look to the social, economic and
environmental benefits of such a change. We will work closely
with Treasury to ensure the Government can continue to support
the greening of our energy supply and the wider economy that we
so desperately need.”
