Wednesday 8 July 2020
Rishi Sunak confirms £3bn green jobs plan to save money, cut carbon and boost employment
Chancellor Rishi Sunak has confirmed a £3 billion green jobs plan to save money, cut carbon and boost employment in the wake of the coronavirus pandemic.
In his much-awaited Summer Statement, which serves as a recovery plan for the UK economy, he outlined how he planned to tackle "profound economic challenges" with a "historic investment in infrastructure".
He promised to create green jobs to ensure a green recovery that holds "concern for our environment at its heart".
The £3 billion round of financing includes a £2 billion green homes grant - from September, homeowners and landlords will be able to apply for vouchers to increase the energy efficiency of their homes and create sustainable work for local businesses.
These vouchers will be able to cover at least two-thirds of costs, up to £5,000 per house, rising to up to £10,000 to cover the full costs for low-income households.
Around £1 billion will be spent to improve the energy efficiency of public sector buildings such as schools, hospitals and council buildings, in addition to a £50m fund to pilot an effective approach to deliver decarbonised social housing across the country.
Mr. Sunak promised these measures would make a total of 650,000 homes more energy-efficient, saving families £300 a year, as well as cut carbon emissions by half a megaton a year and support around 140,000 green jobs.
He said: "We are double down on our ambition to level up, with better roads, better schools, better hospitals, better high streets, creating jobs in all four corners of our country."
Energy efficiency is the critical first step
David Smith, Chief Executive of the Energy Networks Association, said: “Energy efficiency is the critical first step in decarbonising homes and heating. The Chancellor’s £2 billion commitment takes a significant step towards a nation heated by decarbonised sources and we look forward to working with the Treasury on how to take the next steps in fully building the green infrastructure our net zero future needs.
"We have spoken before about the need for a green-collar workforce of the future and welcome both the Kickstart Scheme and new funding for apprenticeships in expanding the opportunities to do so. This new funding will grow the 1,200 apprentices that the energy networks already support across the country, directly supporting the training and reskilling of the staff needed to build-out the Prime Minister’s ‘New Deal’”
UK must strive to reach climate neutrality 'as soon as possible'
Hanno Schoklitsch, CEO & Founder of Kaiserwetter Energy, said: "In the recent weeks we've seen internationally numerous approaches how to give recovery impulses to the domestic economy on the one hand and bring forward the investments needed for a decarbonised society on the other hand. Some are pretty heterodox such as the approach chosen by French President Emanuelle Macron who is willing to implement almost each piece of a 486 page-programme developed by a citizen convention. Some are more Keynesian-like. The German government, for example, increases the incentives to buy e-cars.
"Others are more ambitious, such as the Danish government that aims at reducing CO2 emissions to 70% by 2030 through investments in renewables, especially offshore wind parks. Particularly promising is the Spanish way that intends to create a New Green Deal accelerating the energy transition through the benefits of the digital transformation, such as AI or IoT. This would be our recommendation for the UK mini-budget as well: to overcome sectoral thinking and to shape the mini-budget in a way that not only helps recover the national economy but supports wider political objectives, such as achieving climate neutrality as soon as possible, and leverages the benefifts of the digitalisation for a more sustainable and more inclusive economy."
Mike Hughes, UK & Ireland Zone President of Schneider Electric, said: "Investment in tackling energy waste must be central to any green recovery programme. It is simply not sustainable to continue with the current status quo, in which more of the energy produced globally is lost or wasted than consumed. Whilst a £3bn package will accelerate progress, the UK lags behind others. Germany and France have pledged tens of billions, while the government’s own manifesto promised £9.2bn budget for energy efficiency.
"If we truly want to be a world leader in tackling climate change, see a genuinely ‘green recovery’ and meet net-zero targets, we need a more comprehensive and ambitious approach to redefine the foundations of our economy, with sustainability as its heart. Insulation is an easy win and one that has been delayed for long enough. Buildings remain the world’s largest consumers of energy and therefore, must be central to any national energy conservation strategy. However, waste does not end with insulation. We must tackle the broader issue of inefficiencies in buildings, viewing the issue holistically. From lighting, heating and air-con systems to maintenance and management, buildings must become more digital and more connected.
"We need to prioritise circularity and raise minimum efficiency standards for retrofitting and new builds. These are all win-win investments, reducing environmental impact, whilst lowering operating costs and extending the lifespan of the investment. We have the opportunity to rebuild the economy with climate action at its core. The government, through investment and incentivisation, must deliver a complete plan for a healthier, more sustainable and more resilient future for the next generation, whilst also fuelling jobs for years to come."
'We urge ministers to set out their plans to clean up heat at the earliest opportunity'
Richard Burrell, CEO of AMP Clean Energy, said: "As the Chancellor has said, heating our homes, businesses and public estate accounts for around a fifth of the UK’s carbon emissions, and reducing these is absolutely central to meeting our net zero climate change target. “However, while we welcome the Chancellor’s support for energy efficiency and low carbon heating in the public sector, we are still waiting for the Government’s overall strategy to replacing the use of fossil fuels for the vast majority of our heat needs, and would urge ministers to set out their plans to achieve this at the earliest opportunity with the closure of the existing scheme to support businesses decarbonise – the Non-Domestic Renewable Heat Incentive - due to close in just nine months’ time.
“The electrification of heat and mix of established and emerging technologies can deliver effective heat decarbonisation, so the Government needs to look at how they put this centre stage.
“There also needs to be greater support for businesses that want to invest in decarbonisation technologies. Some businesses - who may have been planning to finance their own on-site energy projects - will now be focussed on repairing their balance sheets. As a specialist developer, operator and financier of low carbon projects, we are able to provide 100% of the funding needed to enable businesses to continue to deploy low-carbon projects. However, more robust economic and policy measures to support the longer-term green recovery are needed, and we will await to see how these develop through the Autumn.”
'Funding for green homes and energy efficiency is a welcome boost'
Alistair Phillips-Davies, SSE Chief Executive, said: “Funding for green homes and energy efficiency is a welcome boost but more action will be needed in the National Infrastructure Strategy and the Autumn Budget to build a long-lasting green recovery.
“We’ve already put our money where our mouth is with £7.5bn of low-carbon investment over the next five years and Government can unlock more from industry with stronger policy signals, particularly on carbon capture and storage and the rollout of electric vehicle charging infrastructure and we’re a willing partner to make these a reality over the coming months.”
'The provision of £3bn to help improve the efficiency of homes represents a crucial step'
Nicola Lovett, ENGIE UK CEO, said: "We welcome the Government’s announcement today on the provision of £3bn to help improve the efficiency of homes and public sector buildings. In the UK, just under a third of emissions come from buildings, so this represents a crucial step in tackling climate change and ensuring that we make a green recovery from COVID-19. ENGIE has deep expertise in developing retrofitting solutions for our customers. We are constantly innovating in this space and are investing in decarbonised infrastructure as part of our wider commitment to Making Zero Carbon Happen."
A holistic approach is needed to cut emissions
Responding to the Chancellor’s Summer Statement, Gemserv’s Chief Executive, Alex Goody, said: "We welcome the focus on a Green Recovery and commitment to net zero.
"The £2 billion Green Homes Fund is a significant step to improve energy efficiency and we hope this drives high standards, jobs, and lasting market demand to upgrade the country’s draughty housing stock. This, together with the £1 billion for the public sector estate such as hospitals and schools, can help drive the holistic approach needed to reduce emissions from across the built environment.
"Transport is another priority sector to decarbonise and the previously announced £1 billion Automotive Transformation Fund is a welcome shot in the arm for the automotive industry to build battery supply chains and innovative solutions necessary for low carbon alternatives to the combustion engine.
"We also face an environmental emergency. So while the emphasis has been on low carbon we also welcome the support for tree planting and creating green spaces for people and wildlife which are also important contributors to physical and mental wellbeing."
