Reacting to the results of the Second Contracts for Difference Allocation Round, Nick Molho, Executive Director of the Aldersgate Group said:
“The announcement today that the next round of offshore wind projects will receive a strike price of £57.50-74.75/MWh highlights the considerable cost reductions achieved by the offshore wind industry, at the same time as delivering increased UK content.
Larger and more efficient turbines now mean offshore wind is a mainstream component of the UK’s energy mix and turbine blade manufacturing facilities in Hull and the Isle of Wight and servicing companies around the coast are important examples of how the industry has driven jobs and supply chain growth across the UK.
The UK is reaping the benefits of competitive auctions and stable government policy in this area. To continue to see costs reduce, a clear pipeline of projects well into the 2020s will be required and the government’s forthcoming Clean Growth Strategy must ensure that the £730m earmarked for auctions of less established technologies during the last parliament will be committed by 2020 as originally planned.”
 The cost of offshore wind projects are now 50% lower than the first auction held in 2015.
 Renewable UK (September 2017) Offshore Wind Industry Investment in the UK: 2017 Report on Offshore Wind UK Content
Responding to the First Minister’s announcement today of her Programme for Government 2017-18, Nick Molho, Executive Director of the Aldersgate Group said:
“The First Minister’s proposal to phase out the sale of new petrol and diesel cars and vans by 2032 and the ambitious new targets included in the upcoming Climate Change Bill provide a clear sense of direction to business that investment in all forms of resource efficient infrastructure, renewable energy generation and clean transport will need to increase.
Scotland has a real opportunity to capitalise on its successes of recent years. The Scottish Government’s commitment to renewables has helped create a thriving sector that accounted for a total turnover of £2.7bn in 2015 and energy efficiency in Scotland’s buildings has been improving with a 74% increase in homes being rated EPC Band C between 2010 and 2015.
However, detailed policies are urgently needed if Scotland is to meet its climate targets on time and on budget and continue to grow its low carbon economy. This is especially the case for Scotland’s buildings where clear regulatory standards and well-timed incentives in the Scottish Energy Efficiency Programme and Warm Homes Bill will be essential to ramp up action on energy efficiency.”
Today, the UK’s building stock is responsible for 19% of annual emissions. Promoting energy efficiency in the UK's domestic and commercial sector is crucial to further decarbonisation in the UK. Energy efficiency mechanisms could generate potential savings of 23.6MtCO2 per year by 2030, which is roughly equivalent to cutting the CO2 emissions of the UK transport fleet by one third.  However, there is a general lack of progress in reducing emissions across the UK’s building stock, insufficient uptake of low carbon heat and insulation and a failure to make any meaningful reduction in non-residential building emissions.  The Aldersgate Group and the UK Green Building Council have produced this briefing to highlight priorities for the government in addressing this issue.
Our briefing argues that reducing energy demand through greater efficiency can help the UK meet its legally binding climate targets, limit increases in energy bills, tackle fuel poverty, and drive economic growth and long-term job creation.
 Cambridge Econometrics and Verco (2015) Building the Future
 Committee on Climate Change (June 2016) Meeting Carbon Budgets: Progress Report to Parliament
Reacting to the Queen’s Speech today, Nick Molho, Executive Director of the Aldersgate Group, said:
“It is encouraging to see the government’s desire to make the UK a leader in new industries and enhance its role on the world stage. If the government is to do this successfully, it will need to commit to an ambitious environmental and low carbon agenda. With the global low carbon economy growing fast and international action on climate change gathering pace despite the US withdrawal from the Paris Agreement, this will require the publication this year of a detailed clean growth plan to deliver the UK’s climate targets under the fifth carbon budget and a framework for a 25 year plan to enhance the state of the UK’s environment. In incorporating EU environmental legislation in UK law and determining its future, the government should focus on delivering environmental improvements on the ground that are as good as or better than what is currently legislated for.”
Nick Molho added: “The government is right to seek the “broadest consensus possible” in determining the UK’s negotiating terms on Brexit. In order to deliver the UK’s climate and energy policy ambitions in the most efficient and cost-effective way, the UK must maintain close collaboration with the EU after Brexit in key areas of mutual benefit, such as through continued participation in the internal energy market.”
Following the results of the General Election, the Aldersgate Group urges the new government when it is formed and MPs from all political parties to build on their support for the UK’s Climate Change Act and the Paris Agreement by backing the growth of the UK’s low carbon economy.
The Aldersgate Group, whose business members represent a wide range of economic sectors and a collective turnover in excess of £400bn, calls on the new government when it is formed and MPs from across the political spectrum to recognise the important role played by the low carbon economy in delivering widespread environmental, economic and social benefits, and in strengthening the UK’s international competitiveness.
The UK’s low carbon economy was already worth £77bn in 2015 and employed 432,000 people. With UK strengths in the offshore wind, ultra-emission vehicle, construction, ICT and legal and financial services sector, stable and long-term policies could help increase the size of the UK’s low carbon economy from 2% of GDP today to 8% by 2030. Despite President Trump’s recent decision to withdraw the US from the Paris Agreement, the global low carbon economy is rapidly growing, as shown by the $240bn invested in a record amount of renewable electricity capacity in 2016, the slowdown in coal consumption in India and China and increased collaboration between the European Union and China on tackling climate change.
Nick Molho, Executive Director of the Aldersgate Group said: “All the main parties have shown support during the General Election campaign for the UK to put in place an ambitious climate and environmental policy agenda and seize the industrial opportunities that this represents. We therefore look forward to working with the new government and MPs from all parties to put in place ambitious policies that will help grow the UK’s low carbon sector, improve resource efficiency, enhance the natural environment and strengthen the competitiveness of the economy.”
Nick Molho added: “As made clear in the Aldersgate Group Manifesto, this is a crucial time to establish policies that will improve the health of the UK’s environment and the future prospects of its economy. An important first step should be the publication in 2017 of a detailed Clean Growth Plan to attract low carbon investment and meet climate targets and a framework for a 25 Year Environment Plan to improve the state of the UK’s natural environment."
Today the Financial Times published a letter by Aldersgate Group Executive Director, Nick Molho, commenting on Republican US states' growing economic activity around renewable energy. See full text below:
Sir, Many of the US states that are joining the coalition to press ahead with their commitments to cut carbon emissions under the Paris agreement are indeed under Democratic leadership (“Trump Paris deal pullout faces US states’ backlash”, June 5). However, some key Republican states that haven’t yet joined this alliance are witnessing growing economic activity around renewable energy and it is in their interest to continue supporting the growth of the sector.
For example, just under $7bn was invested in renewable energy projects in North Carolina in 2015, while Texas has more than 100,000 people working in the sector. This is one of the reasons some of the federal incentives that facilitate the deployment of renewable energy, such as the wind and solar tax credits, have bipartisan support and were recently renewed for another five years.
When one adds to this the ambitious emissions reduction commitments of a major state like California, the world’s sixth-largest economy before France, it becomes clear that US states and cities could deliver significant emission cuts in the years to come despite an unsupportive federal government.
Today the Guardian has published our letter, signed by 11 businesses, highlighting the importance of the UK's low carbon economy and calling on the next government to put in place ambitious and stable environmental policies. See full text below:
Despite the US withdrawal from the Paris agreement on climate change (Anger at US as Trump rejects climate accord, 2 June), the global market for low carbon goods and services is rapidly growing and the UK must make the most of this opportunity. Spurred in particular by major investments in low carbon technologies by countries such as China, India, Mexico and South Africa, the Paris agreement could open up $23tn (£18tn) worth of opportunities for low carbon investments in emerging markets between 2016 and 2030. The commitments made by six world leaders at the recent G7 summit and the decision by China and the EU to collaborate more closely on climate change support this trend.
The UK is well placed to benefit. Its low carbon sector employed 432,000 people and produced a turnover in excess of £77bn in 2015. The UK’s strengths include manufacturing ultra-low emission vehicles and offshore wind turbines, piloting innovative ideas in energy, water and resource efficiency and providing financial and legal services for clean energy projects worldwide. The focus on developing low-cost, low carbon infrastructure is gaining momentum across all key economic sectors.
The low carbon economy could grow from 2% of UK GDP today to 13% by 2050. However, stable policies to grow the UK’s low carbon market will be essential to turn this potential into reality and ensure our economy remains competitive on the global stage. We therefore call on the new government to put in place ambitious and long-term policies to tackle climate change and improve the state of the environment at the heart of its industrial strategy and vision for the UK.
Nick Molho Executive director, Aldersgate Group, Chris Newsome Director of asset management, Anglian Water, Steve Waygood Chief responsible investment officer, Aviva Investors, Nigel Stansfield President, Interface Europe, Middle East and Africa, Pierre Woreczek Chief customer officer, Kingfisher, Jens Tommerup CEO, MHI Vestas Offshore Wind, Matthew Knight Director of energy strategy and government affairs, Siemens UK, Alistair Phillips-Davies Chief executive, SSE, Julia Barrett Director, Willmott Dixon Re-Thinking, David Symons UK Director of Sustainability, WSP, Piers Guy UK country manager, Vattenfall, Paul Greensmith UK country leader, XL Catlin
Reacting to President Donald Trump’s announcement that the United States would withdraw from the Paris Climate Change Agreement, Nick Molho, Executive Director of the Aldersgate Group said:
“Donald Trump’s decision won’t result in a U-turn on climate action in the US or globally. Several US States have made clear commitments to continue investing in low carbon technologies  and major US businesses such as Walmart have set ambitious targets to cut carbon emissions and increase the use of renewable energy .
Globally, the shift to a more efficient, low carbon economy is gathering pace, the cost of clean technologies is rapidly falling and coal use in China and India is slowing faster than anticipated . Over $240bn was invested in record levels of renewable energy capacity in 2016, 40% of which was driven by developing economies including China, India, and Brazil . Following the commitments made by six world leaders at the recent G7 summit  and the news of greater co-operation between China and the EU on climate change, major global players like the UK must continue to build competitive, low carbon economies and honour their commitments under the Paris Agreement.”
 A bipartisan group of 17 US state governors representing almost 40 percent of the US population recently agreed for example to co-operate on the deployment of clean energy and transport solutions.
 Walmart recently joined the global science-based targets initiative and committed to cut its emissions of greenhouse gases by 18% by 2025 relative to 2015 levels, source half of its energy from renewables by that date and work with its supply chain to reduce emissions by a further 1 Gigatonne.
 Excluding large hydro. Renewable energy investment in 2016 added 138.5 gigawatts capacity, an 8% increase from 2015 with average costs for solar and wind dropping by 10%. Bloomberg New Energy Finance, April 2017 https://about.bnef.com/blog/bang-buck-record-new-renewable-power-capacity-added-lower-cost/
 In a communique on 27 May, the governments of France, the UK, Japan, Italy, Germany and Canada as well as the presidents of the European Council and European Commission reaffirmed “their strong commitment to swiftly implement the Paris Agreement”.
Today the Aldersgate Group publishes a manifesto report, A healthy environment, a competitive economy, setting out policy priorities for the new government. The report highlights the growing importance of the low carbon economy to the UK’s competitiveness and urges the new government to put ambitious environmental and climate policy at the heart of its programme as the UK leaves the EU.
The UK faces several environmental challenges from the growing impacts of climate change on its infrastructure to the degradation of key parts of its environment such as soil. Tackling these environmental challenges effectively will provide economic as well as environmental benefits for the UK. The Aldersgate Group manifesto therefore calls for the next government to:
Policies such as the Climate Change Act have already helped to cut carbon emissions, reduce household energy bills in real terms , reduce the cost of new technologies like offshore wind and deliver growth in new industries. The Office of National Statistics estimates that the UK’s low carbon and renewable energy economy employed some 432,000 people in 2015 and delivered a turnover of more than £77bn.  Critically, a lot of this growth is taking place in parts of the country that need it the most such as the North of England and the Solent area. 
UK businesses have strengths in numerous areas of the low carbon economy such as the manufacturing of ultra-low emission cars and wind turbines, expertise in energy efficiency services and engineering, leading cutting edge pilots in resource efficiency and natural capital and the provision of legal and financial services for clean energy projects worldwide. Going forward, the export potential for UK businesses is significant, with estimates that the low carbon economy could grow from 2% of the UK’s GDP today to 8% by 2030. 
Nick Molho, Executive Director of the Aldersgate Group said: “As the new government negotiates the UK’s departure from the EU, it should not neglect the importance of putting forward an ambitious low carbon and environmental policy. The UK has significant strengths across the low carbon economy, a market which is already worth over $5.5tn globally  and is rapidly growing following the Paris Agreement on climate change. The next five years are a unique opportunity to consolidate the UK’s competitive advantages and put its businesses in the best possible position to tap into growing export opportunities.”
Steve Waygood, Chief Responsible Investment Officer at Aviva Investors said: “We are calling for the creation of public league tables, ranking the performance of companies on a range of sustainability issues, including climate change. Providing ambitious and clear low carbon policies in the next parliament and improving the disclosure of corporate information relating to climate risks will be essential to increase affordable private investment. We need policies to direct capital towards the resource efficient and low carbon infrastructure that the UK so urgently needs to build in order to maintain a globally competitive and resilient economy.”
Jens Tommerup, CEO at MHI Vestas Offshore Wind said, “We support the Aldersgate Group in their calls for a broad political consensus in the UK around the need for a renewed focus on the transition to a low carbon world, and the great opportunities this presents a new Government after 8th June and the people and businesses of the UK. Offshore wind in particular is demonstrating a compelling proposition, accelerated cost reduction - on track to be the lowest cost large scale generating technology by the early/mid-2020s-, whilst at the same time delivering industrialisation and valuable jobs the length and breadth of Britain.”
Chris Newsome, Director of Asset Management for Anglian Water and member of the Green Construction Board said: “As highlighted in the Infrastructure Carbon Review, infrastructure is responsible for over half of the UK’s carbon emissions. We fully support the Aldersgate Group’s manifesto released today, and their aligned efforts to reduce carbon and cost within infrastructure through innovation and collaboration with the supply chain. The manifesto will undoubtedly drive the sustainability agenda and influence future policy."
"It’s through coalitions such as the Aldersgate Group that Anglian Water aims to provide leadership, practical advice and engage with other companies looking to deliver reduced carbon and reduced cost in sustainable growth.”
Nigel Stansfield, President at Interface Europe, Middle East and Africa said: “Our Mission Zero commitment has reduced our greenhouse gas emissions by 98% across our EMEA operations since we started our sustainability journey in 1996. While companies like ours continue to lead the way, governments at both a national and EU level can accelerate moves to reduce our dependence on fossil fuels by encouraging transparency around the environmental impact of products, and introducing measures to change buyer behaviour in favour of those that are low carbon.”
Julia Barrett, Director at Willmott Dixon Re-Thinking Limited said: “The construction industry is willing to invest in research, innovation and skills development to find the solutions for an affordable low carbon future. But, we need to be confident that the government is taking a long-term policy approach that will support spending on resource efficiency, energy efficiency and low carbon infrastructure.”
Mary Thorogood, Stakeholder Relations Adviser at Vattenfall UK said: “Vattenfall supports the Aldersgate Group’s call for the next government to quickly publish a detailed Clean Growth Plan. The publication of a supportive plan will provide certainty for future low cost onshore and offshore wind projects. These long-term market signals will encourage Vattenfall’s continued investment and job creation in the UK.”
David Symons, Director of Sustainability at WSP said: “A low carbon, resilient and prosperous United Kingdom is key for WSP and our business. We look to the next government to deliver world class, ambitious programmes that support our own Future Ready ambitions.”
Sue Riddlestone OBE, Chief Executive at Bioregional said: "Britain's place in the world, and the strength and sustainability of its economy, now depend on how well we look after our environment and the planet. So, too, does the health and long term prosperity of our people. Deep down, more and more of us know that. Voters and politicians must keep that front of mind during this election campaign."
Peter Young, Trustee of the Wildlife Trusts said: “The next 5 years will see coherent and far-sighted environmental policy as an increasing necessity to underpin our future economic success. It is vital that all parties are explicit in demonstrating their commitments to decarbonise, use resources efficiently and enhance our natural capital. Without heeding the importance of these issues to secure a strong UK economy and international trading position, claims to improve UK prosperity and society will be hollow."
: Committee on Climate Change (March 2017) Energy Prices and Bills – impacts of meeting carbon budgets. Improvements in energy efficiency have saved the typical household around £290 per year since 2008 as demand for electricity and gas has reduced, more than offsetting the price of low carbon policies and network costs.
: ONS (6 April 2017) "UK environmental accounts: Low carbon and renewable energy economy survey, final estimates: 2015"
: Aldersgate Group (September 2016) Setting the pace: Northern England’s low carbon economy. In 2013, there were already 136,000 people working in the low carbon economy in the North and this is set to grow with major ongoing investments such as those from Siemens, ABP and DONG Energy at Green Port Hull. On the Isle of Wight, MHI Vestas’ investment in an offshore wind turbine blade factory has created hundreds of jobs on the Isle as well as jobs and other positive impacts across the wider Solent area.
: Ricardo Energy & Environment (March 2017) UK business opportunities of moving to a low carbon economy
: New Climate Economy (July 2015) Seizing the Global Opportunity
Reacting to the Prime Minister’s triggering of Article 50 today, Nick Molho, Executive Director of the Aldersgate Group, said:
“Several key environmental and climate change policies are derived from EU legislation. Brexit will open up opportunities to make improvements in certain areas such as farming but the UK’s withdrawal must not lead to any weakening of our environmental protections or ambition. The UK needs stable and ambitious policies that will help improve the state of its environment for the benefit of its economy and society and attract more private investment in innovation and green infrastructure.”
Nick Molho added: “There are many areas of environmental and energy policy where it will be in the interest of businesses and consumers for the UK to continue working closely with the EU. This will be important in areas such as product standards that will still apply to British businesses selling goods in the Single Market and the future of the Internal Energy Market, which is essential to the cost-effective and secure growth of renewable energy in the UK.”
Reacting to the Spring Budget today, Nick Molho, Executive Director of the Aldersgate Group, said:
“It was positive to see lots of focus in today’s budget on supporting innovative businesses and ensuring the UK’s workforce has the skills it needs to benefit from the job opportunities of the future. But despite the fact that some of our key trading partners such as China are investing heavily in renewable energy and other clean technologies, there was no reference to the importance of the low carbon sector to the future competitiveness of the UK economy.
If the UK is to meet the Chancellor’s ambition of being at the cutting edge of the global economy, the Autumn Budget will need to be much clearer about the UK’s environmental and low carbon ambitions and provide a clear business plan to meet the UK’s policy objectives under its Emissions Reduction Plan and 25 Year Plan for the Environment.”
 A record $285bn was invested in renewable energy globally in 2015 – see Global Trends in Renewable Energy Investments 2016 – http://bit.ly/1RAJA8w
 The UK’s low carbon and renewable energy economy was responsible for over 447,000 jobs and a turnover in excess of £83bn in 2014 – see UK Environmental Accounts: Low Carbon and Renewable Energy Economy Survey, total activity: 2014 – http://bit.ly/2mlwIOG
Reacting to the Business Energy and Industrial Strategy (BEIS) Committee’s review of the Industrial Strategy, the Aldersgate Group stressed that supporting the continued growth of the UK’s low carbon supply chains is essential to deliver the government’s objectives of supporting growth across the UK.
The Committee calls for horizontal policies to drive forward the Prime Minister’s ambition of rebalancing productivity and growth the UK. A recent report from the Aldersgate Group showed that the UK’s cross-sector low carbon and renewable energy economy, which was responsible for over 447,000 jobs and a turnover in excess of £83bn in 2014, has seen significant investment in jobs and skills in parts of the UK that have suffered most from under-investment in recent years. The continued growth of low carbon markets such as offshore wind, electric vehicles, ICT and energy efficiency, can have a central role in driving productivity and the government’s objective of delivering an economy that works for everyone.
Nick Molho, executive director of the Aldersgate Group said: “Supporting the continued growth of the UK’s low carbon economy provides the horizontal cut-through that the BEIS Committee demands. The government’s Industrial Strategy must complement its Emissions Reduction Plan (ERP) to maximise growth in UK low carbon supply chains and provide the policy consistency that business needs.”
Reacting to the publication of the Scottish Government’s Draft Energy Strategy today and Draft Climate Change Plan last week, Nick Molho, Executive Director of the Aldersgate Group said:
"The Scottish Government has set out some challenging climate targets but has a great opportunity to capitalise on the progress already achieved and continue growing Scotland’s low carbon economy and supply chain. The bold measures that are being considered are welcome - particularly actions to tackle emissions in the built environment and transport. The proposal for 50% of all energy to be generated from renewables by 2030 will set an important long term signal that businesses can respond to with affordable investment and innovation. Technologies such as hydrogen can play an important role in the decarbonisation of heating, if the lack of progress on Carbon Capture and Storage can be tackled, but continued support should be given to more established technologies such as district heating networks and heat pumps."
Nick Molho added: "It is also positive to see that the Scottish Government’s consultation on improving energy efficiency includes suggestions such as tax rebates and green mortgages. Targeting fiscal incentives at key moments in a building’s life will help drive demand for energy efficiency improvements, with positive knock-on impacts on energy bills, carbon emissions and insulation supply chains. It is essential that the Scottish Government takes concrete measures as an outcome of this consultation."
Reacting to the publication of the Building our Industrial Strategy Green Paper, Nick Molho, Executive Director of the Aldersgate Group said:
"The government’s focus on ensuring the UK secures the economic benefits of an affordable and timely transition to a low carbon economy is welcome. The opportunities arising from the low carbon economy extend beyond energy innovation into a wide range of highly productive sectors. This part of the economy was already employing 447,500 people in 2014, with a turnover in excess of £83bn. The global transition to a more decarbonised economy led by countries as diverse as China, India, Brazil and South Africa offers significant economic opportunities in areas where the UK has a competitive advantage, such as in ultra-low emission vehicles, offshore wind, the built environment and ICT.
The government’s forthcoming emissions reduction plan will be key in attracting affordable private investment into energy efficient and low carbon projects in the UK. Through greater co-ordination with Local Enterprise Partnerships, a clear low carbon skills policy and consideration on the future role of the UK’s energy intensive industries in the low carbon economy, the industrial strategy could help maximise growth and employment opportunities in the UK’s low carbon supply chains."
Nick Molho added: "The industrial strategy must also embrace resource efficiency. As seen in two reports launched this morning, the shift to a more circular economy will help deliver financial benefits and carbon emission savings in addition to reducing the UK’s resource dependency."
Heating in buildings accounts for 40% of UK energy use and 20% of greenhouse gas emissions. However, very limited progress has been made in decarbonising our heating systems to date. The UK needs a clear action plan on tackling heat in order to meet our carbon budgets. The Aldersgate Group has produced this briefing to explore some of the available solutions and policy options.
Our briefing argues that a clear action plan, including a strategy for trialling different low carbon heat technologies, is needed in order to inspire confidence in the private sector to invest in low carbon heat solutions at an affordable cost. There are a number of low-regret solutions that should be seized, and the forthcoming emissions reduction plan must set the wheels in motion.
Reacting to the Autumn Statement today, Nick Molho, Executive Director of the Aldersgate Group, said: “It is positive to see greater focus from government on linking up local authorities with businesses with further funding provided to LEPs. The new industrial strategy must allow the government to play a greater co-ordination role to link up businesses with the growing low carbon opportunities taking place across Britain and grow the UK’s low carbon supply chain.”
Nick Molho added: “To deliver genuine progress on the ground, Budget 2017 will need to provide much more detail as to how the government intends to deliver on the environmental and low carbon ambitions to be set out in its upcoming emissions reduction plan and 25 year plan for the environment.”
The Aldersgate Group welcomes the government's ratification of the Paris Agreement, lending the UK's weight to the unprecedented global momentum for climate action.
Nick Molho, executive director of the Aldersgate Group said: “The UK government has sent a strong signal of its commitment to international co-operation by ratifying the Paris Agreement today. The UK must now use its upcoming emissions reduction plan and industrial strategy to accelerate affordable private investment in clean and efficient technologies, grow supply chains across the UK and build a globally competitive low carbon economy.”
He added: “The UK’s ratification sits alongside many positive moves in the past week, not least 360 major US businesses yesterday calling for world leaders to accelerate action on climate change and Germany’s ambitious 2050 decarbonisation plan. It confirms the global political and business support for the transition to a low carbon economy remains unswayed."
 US business joint statement calling on the USA and world leaders to accerlate action on climate change, 16 November: http://www.lowcarbonusa.org/
 German ministers reached an agreement last week to cut the country’s carbon emissions by up to 95% by 2050: http://www.independent.co.uk/news/world/europe/germany-cut-carbon-emissions-95-per-cent-climate-deal-paris-agreement-global-warming-a7413911.html
The fifth carbon budget was passed by Government on July 20, 2016. The UK now awaits a emissions reduction plan (ERP) with the policy detail to deliver the fourth and fifth budgets. The Aldersgate Group has produced this briefing 'The Emissions Reduction Plan and low carbon investment' to help draw out the priorities for the plan, in order to maximise emissions reductions for the UK in a cost effective way.
Our briefing argues that a detailed ERP will help attract low carbon investment in the UK's infrastructure and must be supported across government departments. It should work in tandem with other government initiatives such as the industrial strategy and be supported by a green finance strategy. The briefing provides tangible policy recommendations in priority areas such as power, building efficiency, transport, and heat.
Ahead of the House of Commons debate on industrial strategy tomorrow, the Aldersgate Group has prepared a briefing on why the industrial strategy should have a strong low carbon element.
Our briefing argues that the industrial strategy must build on the UK's existing areas of competitive strength, such as ultra-low emission vehicles, smart ICT solutions, energy efficiency, offshore wind and project financing of clean energy projects. It must also complement the government's forthcoming emissions reduction plan, include a skills strategy and reflect the shift to a more resource efficient or "circular economy".
The UK and world economy have embarked on a low carbon transition. The UK's competitiveness will be increasingly tied to the development of a strong low carbon goods and services sector to ensure we can take advantage of the opportunities in the international low carbon market, which is estimated to be worth $5.5tn. Taking a low carbon focus can help future-proof the economy and maximise potential for UK plc.
Reacting to the publication of three reports from the Committee on Climate Change (CCC) today, the Aldersgate Group stated that putting in place an ambitious low carbon policy framework is not only needed to meet the UK’s carbon reduction targets but also to strengthen the future competitiveness of its economy.
Nick Molho, Executive Director of the Aldersgate Group, said: “With the unprecedented speed by which the Paris Agreement will be coming into force on 4 November and a record $285bn invested in renewable energy globally in 2015, it is clear that tackling climate change and growing the low carbon economy has leapt up the international agenda. Much of the growth in low carbon investments is coming from countries outside the EU, with China, India, Brazil, South Africa and the US among the top ten global investors. At a time when Theresa May is focused on forging “a bold, new, confident role” for the UK on the world stage, government should take note of this global shift and prioritise the continued growth of its successful low carbon economy.”
Nick Molho added: “With the help of business and civil society, the government should now develop a detailed emissions reduction plan that will attract affordable private sector investment in energy efficiency and low carbon infrastructure to meet the UK’s carbon budgets at least cost and in line with the recommendations of the CCC in its latest reports. In doing so, government should put forward a clear plan to demonstrate the technical and commercial viability of new technologies in complex areas such as decarbonising heat. The upcoming industrial strategy is also an ideal opportunity to complement the emissions reduction plan and consider how targeted government initiatives can maximise growth and employment opportunities in the UK’s low carbon supply chain.”
 Bloomberg New Energy Finance, Global Trends in Renewable Energy Investments 2016: http://bit.ly/1RAJA8w
 Recent ONS figures have highlighted that 96,500 businesses in the UK operated in the low carbon and renewable energy economy in 2014, generating £46.2bn of turnover and employing 238,500 people directly. ONS’ statistics are available at: http://bit.ly/1XyY6ol