Reacting to today’s publication of the Energy and Climate Change Select Committee’s report on investor confidence in the energy sector, the Aldersgate Group urged the Government to rapidly adopt the fifth carbon budget as set out by the Committee on Climate Change and work with businesses from across the economy to deliver a compelling Carbon Plan to stimulate business investment in low carbon and energy efficient technologies. The Group highlighted that this would also help bring the UK’s domestic climate and energy policies in line with the positive work done by the UK government that helped deliver an international climate deal at the recent Paris COP 21 summit.
Nick Molho, executive director of the Aldersgate Group, said: “We have to recognise that the Government has faced some important cost pressures leading to some of its recent policy decisions in the low carbon and energy efficiency sector. But the Energy and Climate Change Select Committee is right to highlight the recent dip in investor confidence in the sector. What has been particularly damaging is the lack of an alternative plan accompanying recent policy changes, rather than the changes themselves.
Confidence is essential to attracting investment at sufficient scale and at the lowest possible cost in the energy efficiency and low carbon sector and needs to be a priority for the government in 2016. A rapid adoption of the fifth carbon budget, together with a clear plan to increase investment in energy efficiency, low carbon generation and low carbon heat as well as to support the demonstration of carbon capture and storage technology would be an important step forward in re-establishing that confidence.”