UK’s Net Zero Strategy expected to unlock GBP 90bn in investment by 2030

East Anglia One offshore wind farm. Image by ScottishPower Renewables.

October 20 (Renewables Now) - The UK government on Tuesday released a Net Zero Strategy setting out the pathway to reaching net zero emissions by 2050 and said that it plans to review the frequency of contracts for difference (CfD) auctions to accelerate deployment of low-cost renewable generation.

The measures outlined in the strategy are expected to unlock up to GBP 90 billion (USD 124bn/EUR 107bn) of private investment by 2030 and support 440,000 jobs in green industries in 2030.

The newly released strategy builds on the Ten Point Plan for a Green Industrial Revolution, which was published last year to set the ground for a green economic recovery from the coronavirus impact. The government said that the policies and spending brought forward in the Net Zero Strategy mean that since the Ten Point Plan, it has mobilised GBP 26 billion of government capital investment for the green industrial revolution.

New investment announced as part of the strategy includes an allocation of an extra GBP 350 million of the up-to-GBP-1-billion fund to support the electrification of UK vehicles and another GBP 620 million for targeted electric vehicle grants and infrastructure. It also includes GBP 180 million in funding for the development of sustainable aviation fuel (SAF) plants and a GBP-140-million Industrial and Hydrogen Revenue Support scheme to spur industrial carbon capture and hydrogen. The latter will include up to GBP 100 million to award contracts of up to 250 MW of electrolytic hydrogen production capacity in 2023 with further allocation in 2024.

The measures also encompass GBP 3.9 billion of funding announced by the government on Tuesday for decarbonising heat and buildings, including a new GBP-450-million three-year Boiler Upgrade Scheme.

There will be an extra GBP 500 million towards innovation projects and GBP 120 million towards the development of nuclear projects through the Future Nuclear Enabling Fund. The Nature for Climate Fund will get an additional GBP 124 million for peat restoration and woodland creation.

“By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way,” said UK prime minister Boris Johnson.

Simultaneously, at the Global Investment Summit on Tuesday, Boris Johnson announced 18 deals worth GBP 9.7 billion that will support green growth and create an estimated 30,000 UK jobs. This is in addition to the GBP 5.8 billion of foreign investment in green projects secured since the launch of the Ten Point Plan in November 2020.

The Net Zero Strategy can be viewed here.

“With the major climate summit COP26 just around the corner, our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero,” Johnson added.

The UK legislated a net zero emissions target by 2050 in 2019.

(GBP 1 = USD 1.383/EUR 1.187)

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Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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