Published: Fri, October 13, 2017
Finance | By Loren Pratt

The Government finally switches on to a clean growth strategy

The Government finally switches on to a clean growth strategy

Alex Wild, research director at the TaxPayer's Alliance, argued against minister for climate change Claire Perry's statement that the government was considering reducing stamp duty to act as an incentive for people to make their homes more energy efficient.

Parallel to the publication of the Government's Clean Growth Strategy was the announcement of the country's third Contracts for Difference renewable energy auction, which will compete for £557 million to go towards "less established" renewable electricity projects - likely to include offshore wind and marine technologies like tidal and wave energy generation.

The policies in the plan put the United Kingdom on track to meet the fourth carbon budget, and "reduce significantly" the current shortfall against the fifth carbon budget.

The UK Government has announced an ambitious new Clean Growth Strategy to drastically cut carbon emissions and combat climate change, including £557 million for the country's third renewable energy Contracts for Difference auction set for spring of 2019.

"This shift offers United Kingdom business and innovators huge potential to shape the future of clean growth", she said at the event.

The government will also work with the industry to develop a Sector Deal for offshore wind, which could lead to 10 GW of new capacity in the 2020s with potential for more if this is cost effective, according to the document. "They have listened to the industry by providing a clearer longer-term trajectory for improving the energy efficiency standards of existing homes, and adopted our own aspiration for upgrading as many of these as possible to EPC Band C by 2035".


The plans were broadly welcomed by the energy industry, but some specific policies drew criticism. Funding is also earmarked for low emission taxis and buses, as well as walking and cycling.

RenewableUK, which speaks for the wind and marine renewables industries, welcomed the strategy and the commitment to the development of a Sector Deal for offshore wind, but said that "what's missing is clarity on how the lowest-cost technology, onshore wind, can deliver for United Kingdom consumers".

The government has announced a raft of plans to invest millions in renewable technology and low carbon innovations as the United Kingdom works to hit its 2050 climate target.

The plan aims to ensure an affordable energy supply for businesses and consumers, increase productivity, create jobs and help protect the climate and environment.

The UK Government has set out its Clean Growth Strategy to boost national income and output whilst simultaneously cutting greenhouse gas emissions. The UK Government has much more work to do in putting forward credible policies to close a carbon gap of almost 10% by 2032.

Studies have shown the United Kingdom is the fastest decarbonising economy in the European Union, having cut its overall emissions by a third while simultaneously seeing its economy grow by around two thirds.

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