REA response to the Chancellor’s speech at Bloomberg

• REA responds to Chancellor Jeremy Hunt’s speech setting out his vision for growth and long-term prosperity in the UK;
• Positive recognition of the renewable energy and clean technology sector as a “big growth area” warmly welcomed by the REA;
• However, warm words must now turn into action, with Government policy that will stimulate investment and enable growth in the sector.

The Association for Renewable Energy and Clean Technology (REA) has responded to Chancellor Jeremy Hunt’s speech at Bloomberg today which has set out his long-term vision for how to boost the UK's economy.

The REA welcomes the Chancellor’s references to renewables as a UK success story and his recognition of the sector’s growth, stating that 40% of electricity last year was generated by renewable energy and clean technology.

The Chancellor cites the clean and green energy sector as a “big growth area,” with the UK being a world leader, and the REA echoes his statement that renewable energy and clean technology can offer huge growth and economic benefits – a point recently also highlighted by Chris Skidmore’s Net Zero Report, “Mission Zero”.

However, the REA stresses that these warm words must be solidified by policy that sends clear signals to market and stimulates low carbon investment. If the UK is to continue as a world leader in this sector, more support is needed for UK supply chains to compete with recent U.S and EU support that has attracted record investment to the U.S. in particular. It is imperative to act in the upcoming Spring Statement to ensure the UK remains at the forefront of this sector.

Furthermore, the Chancellor’s commitment to levelling up is also welcome, and it is crucial that investment support for renewables is equitable to the oil and gas industry, to help achieve Government’s plans for growth and levelling up, as well as achieving Net Zero. The energy transition is both an economic opportunity and an environmental imperative.

Dr Nina Skorupska CBE FEI, Chief Executive at the Association for Renewable Energy and Clean Technology (REA), said:

“While the REA echoes the Chancellor’s comments on the potential of our sector, and that 40% of electricity last year generated through renewables is indeed a national success story, the REA believes that 2023 needs to be a milestone year where renewable power exceeds 50%, and we can go further.

“It is welcome to hear recognition from the Chancellor that further deployment of renewable energy and clean technology can offer huge growth and economic benefits – a point recently also highlighted by Chris Skidmore’s Net Zero Report.

“However, these warm words must urgently be reinforced by policy, and a continued lack of certainty has risked sending the wrong signals to low carbon investors. The REA stresses that growth in our sector is not guaranteed to continue without commitment from government, and the upcoming Spring Statement must be used to ensure an attractive market for global green investment in the UK. 

“We now welcome the opportunity to continue working closely with Government on our members’ behalf to further explore the potential of our sector.”

—ENDS—

Notes to editors

REA policy recommendations for the Spring Statement 2023:

• Provide capital allowances for renewable energy and clean technology investments, providing a tax break that will encourage more private investment into the market.
• Include Energy Storage in the list of Energy Saving Materials in order to zero rate VAT on domestic installations, aligned with support provided with other measures such a solar PV.
• Bring forward a renewed and well-funded energy efficiency scheme to speed up the installation of energy saving measures in people’s homes.
• Finalise and launch delayed support mechanisms around strategically important and innovative energy technologies, key to decarbonisation, this includes business models for Greenhouse Gas Removal, Bioenergy Carbon Capture and Storage, Hydrogen and Long Duration Energy Storage.
• Finalise and launch without delay an ambitious Zero Emission Vehicle Mandate to speed up the sale of new EVs and continue the decarbonisation of the wider transport sector by supporting all technologies available including renewable transport fuels for Heavy Goods Vehicles.

Read Mission Zero: Independent Review of Net Zero here.