PRESS RELEASES | 07/07/2020
Chancellor’s energy efficiency stimulus is a good start but must form part of broader low carbon package
Reacting to the £3bn energy efficiency stimulus package expected to be unveiled on Wednesday by the Chancellor of the Exchequer, Nick Molho, Executive Director of the Aldersgate Group, said: “It is positive that the Chancellor wants to align the recovery effort with the UK’s climate, environmental and clean growth objectives. The £3bn package to support energy efficiency investments in 2020/2021 is a good start and could deliver meaningful emission cuts, better buildings and net job creation if similar support is provided in the years ahead, in line with Conservative Party’s manifesto commitments. The £1bn focused on improving energy efficiency in public buildings, such as educational institutions and hospitals, is a welcome move as it is high time for the public sector to lead by example.
But kickstarting the economy and putting the UK on a credible pathway for its net zero target also requires targeted public spending in areas such as electric vehicle charging infrastructure, energy networks, broadband and nature restoration projects, so it is important that this week’s announcements be followed by further stimulus measures ahead of the Autumn Budget. ”
Nick Molho added: “Beyond public investment to support shovel ready projects and low carbon innovation trials, it is critical that the government puts forward a comprehensive policy plan in the autumn to drive private sector investment towards the low carbon and environmentally resilient infrastructure needed to put the UK on track for its net zero and nature restoration targets. Clear regulatory standards and fiscal incentives in areas such as energy efficiency, clean transport and industrial decarbonisation will be vital if the private sector is to do a lot of the heavy lifting to build a competitive, jobs rich, low carbon economy. ”