Friday 30 June 2023

“UK at risk of losing investment abroad: Urgent carbon policies needed”

“UK at risk of losing investment abroad: Urgent carbon policies needed”

UKPIA, the trade association representing companies involved in refining, fuel production, terminal operations and filling stations, has called on the government to implement ambitious carbon policies in order to prevent crucial net zero investments from going abroad.

According to UKPIA, the UK faces higher carbon and energy costs compared to its competitor nations, along with insufficient incentives to develop low carbon technologies.

The existing policy environment also lacks the required level of investor certainty.

One proposed solution is the implementation of a "well-designed carbon levy".

This mechanism would ensure that importers face equivalent costs for carbon dioxide emissions as manufacturers in the UK, according to the trade association.

UKPIA Chief Executive Officer Elizabeth de Jong said: "The UK’s refiners are vital to the UK’s plans to meet net zero by producing the low carbon liquid fuels, hydrogen and industrial carbon capture the country needs.

"But to invest at the scale required, they need a level playing field with countries with less stringent environmental standards or who have more financial support.

"The UK is now at risk of being left behind. Unless government introduces well designed carbon policies, investment will go abroad leading to more imports of higher carbon fuels which will increase overall global emissions."

ELN has reached out to the Department for Energy Security and Net Zero for comment.

Written by

Bruna Pinhoni

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