What will be the impact on business energy supplies as a result of the Government’s announcement last night of a 10-point plan to push the UK towards net zero emissions?
Boris Johnson promised a £12bn Government investment in clean hydrogen, carbon capture and storage (CCS), zero-carbon transport and off-shore wind that he said will eradicate the UK’s contribution to climate change by 2050 and make it a world-leader in the use of cleaner technologies.
The Prime Minister said: “Our green industrial revolution will be powered by the wind turbines of Scotland and the North East, propelled by the electric vehicles made in the Midlands and advanced by the latest technologies developed in Wales, so we can look ahead to a more prosperous, greener future.”
This is going to lead to a transformation of the UK’s energy systems and the way that all businesses consume and access their energy supplies.
There will undoubtedly be a short-term cost to businesses as they change and adapt to ensure they are in line with cleaner energy use, but this should be for a longer term gain of smaller bills in the future.
Green energy for business
Green energy sources such as wind power and heat pumps, along with electrically-powered vehicles will make businesses cleaner and have a much smaller impact on their communities while at the same time creating many jobs in new industries and sectors.
New technologies will hopefully continue to make generating green energy cheaper all the time too.
It is too early to say right now what the direct impact will be on all businesses but this is an exciting new chapter in the energy supply sector and we will be monitoring developments very closely as we continue to ensure we get the very best deals for our customers.
The 10-point plan:
Offshore Wind
The UK will host 40GW of offshore wind by 2030, enough to power every home and support up to 60,000 jobs.
Hydrogen
Aim to generate 5GW of “low-carbon” hydrogen production capacity by 2030. Up to £500m will be invested in a bid to create a Hydrogen Neighbourhood in 2023, a Hydrogen Village by 2025, and to create the first town running entirely on hydrogen.
Nuclear
The UK will scale up large nuclear generation while also developing small and advanced reactor. This move will cost £525m and could support up to 10,000 jobs, according to the Government.
Electric Vehicles
The UK will end the sale of new petrol and diesel cars and vans by 2030, and hybrid cars and vans by 2035. A total of £1.3bn will be used to accelerate the rollout of charge-points, while £582m in grants will be made available to incentivise EV purchasing.
Public Transport
The Government will incentivise cycling and walking, while also investing in zero-emission public transport.
Aviation and Shipping
Research projects for zero-emission planes and ships will be conducted.
Domestic and Public Buildings
Homes, schools and hospitals will become more energy efficient through a £1bn spending commitment starting next year. The Government will aim to install 600,000 heat pumps annually by 2028 and create 50,000 green jobs by 2030. The Green Homes Grant voucher scheme from this summer will also be extended.
CCS
The UK wants to become a “world-leader” in CCS technology and will target the removal of 10MT of carbon dioxide by 2030. An additional £200m will create two carbon capture clusters by the mid-2020s, with another two set to be created by 2030.
Nature
Commitments have been agreed to plant 30,000 hectares of trees every year to restore the natural environment. £5.2bn has been ringfenced to create for new flood and coastal defences in England by 2027.
Innovation and Finance
The UK will make the City of London the global centre of green finance.
If you want to know how your business can get ahead and ensure it has an environmentally-conscious energy supply then talk to us about the options and which energy suppliers offer the best deals that precisely match your requirements.