Wednesday 27 March 2024

Labour’s net zero target faces £116bn investment challenge

Labour’s net zero target faces £116bn investment challenge

A report by Policy Exchange, supported by analysis from Aurora Energy Research, outlines challenges facing Labour‘s aim to achieve a decarbonised power grid by 2030.

The report highlights a £116 billion additional investment requirement.

This finding, based on modelling, emphasises obstacles such as planning reforms, supply chain limitations and workforce shortages.

The analysis underscores difficulties in accelerating renewable energy deployment and scaling up infrastructure.

In contrast, the report suggests the Conservative-backed net zero grid 2035 scenario may offer a more feasible pathway.

Recommendations include clear timelines and budget allocations for renewable energy schemes, accelerated grid investment, and commitments to large-scale nuclear and renewable projects.

Iain Mansfield, Director of Research at Policy Exchange, commented: “To decarbonise the power grid by 2030 is simply not feasible.

“Given the state of the public finances it is hard to see how any government could find the additional £93bn required – but even if the money were made available, it is simply not possible to build new renewable generation at the pace required.”

Thomas Cabot, Research Fellow at Policy Exchange, commented: “Decarbonisation of the grid is essential to reaching our broader goal of economy-wide net zero by 2050.

“Significant policy action and accelerated deployment of low carbon technologies – including enabling the construction of more onshore and offshore wind, major investments in the grid and bringing forward plans for at least one further large scale nuclear plant by the end of 2025 – would help us to meet this goal more quickly.”

Written by

Dimitris Mavrokefalidis

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