A few days after the UK’s referendum on membership of the European Union the increasing turbulent nature of investment has caused uncertainty.
However, the government’s acceptance of the fifth carbon budget at the level recommended by the Committee on Climate Change is an important indication of the UK’s desire to continue growing its low carbon economy.
The Aldersgate Group, an alliance of leaders from business, politics and civil society that drives action for a sustainable economy, has welcomed the move.
Nick Molho, Executive Director, said: "The adoption of the fifth carbon budget is an important step forward.
"It shows that the UK wants to stay on track in meeting its long-term climate change targets in a way that’s cost effective and also signals an intent to increase investment in low carbon technologies.
"At a time when global investments in clean technologies are rapidly growing in countries such as China, India, the United States and South Africa, it’s important that the UK keeps growing its low carbon economy to remain competitive on the global stage.
"As we are seeing with the offshore wind manufacturing investments being made in Hull, growing the UK’s low carbon economy can bring investment and skilled employment opportunities to those parts of the country that need it the most."
Nick Molho added: "Business now looks towards the government’s Emissions Reduction Plan later this year to set out the specific policy drivers that will help stimulate investment in low carbon generation, energy efficiency projects, low carbon heat and low emission transport during this Parliament.
"This is an opportunity for the government to set out a strategy that businesses will respond to with affordable investment and innovation in low carbon technologies."
'Strong' UK framework for continued investment
RenewableUK, the trade and professional body for the UK wind and marine renewables industries, has said the government’s 'bold leadership' on carbon reduction will secure more investment in British renewables.
Today’s announcement that the Government has approved an ambitious Carbon Budget out to 2032 underlines that there is a 'strong UK framework' for continued investment in renewables.
Ministers have announced they will enact the 5th Carbon Budget, cutting greenhouse gas emissions by 57% compared to 1990 levels, during the period 2028 to 2032, as recommended by the Committee on Climate Change.
RenewableUK’s Chief Executive, Hugh McNeal, said: "This Government is global leader in tackling climate change.
"Today’s announcement is especially welcome given the uncertainty caused by last week’s referendum.
"It’s a clear signal that the UK will continue to show bold leadership on carbon reduction.
"This will allow investment to continue to flow into renewable energy projects throughout the UK”.
The latest carbon budget sets the UK on course to ensuring it meets its legally binding target of reducing carbon emissions by 80% by 2050 compared to 1990 levels.
Its predecessor, the 4th Carbon Budget, covering 2023 to 2027, set out a 52% reduction.
Anaerobic digestion has 'potential to reduce gas emissions by 4%'
ADBA’s Chief Executive, Charlotte Morton, commented: "Anaerobic digestion (AD) has the potential to reduce the UK’s greenhouse gas emissions by 4%.
"That’s about £1.2 billion saved in carbon abatement costs – by decarbonising electricity and heat sectors, farming and transport.
"As well as contributing to the Fifth Carbon Budget emissions reductions by generating renewable energy or transport fuel, AD reduces emissions from rotting manure, landfilled food waste and expensive carbon-intensive manufactured fertiliser.
"The AD industry’s continued growth has been put at risk by changes to support mechanisms like the Feed-in Tariff, but the government can reassure the sector and deliver its goals by setting out a clear vision for both food waste collections and farm-based AD."
