The government has published ambitious plans to clean up the UK energy system, support up to 220,000 British jobs, and keep bills affordable in the transition to net zero by 2050.
The government has published ambitious plans to clean up the UK energy system, support up to 220,000 British jobs, and keep bills affordable in the transition to net zero by 2050.
The Energy White Paper sets out specific steps the government intends to take over the next decade to cut emissions from industry, transport, and buildings by 230 million metric tonnes, while supporting hundreds of thousands of new green jobs.
The government said it will put affordability at the heart of the UK’s shift away from fossil fuels by boosting competition in the energy retail market to tackle the ‘loyalty penalty’ – longstanding customers who pay more than new ones – and by providing at least £6.7 billion in support to the fuel poor and most vulnerable over the next 6 years.
Launching the White Paper, Business and Energy Secretary Alok Sharma said:
“At every step of the way, we will place affordability and fairness at the heart of our reforms - unleashing a wave of competition so consumers get the best deals possible on their bills, while protecting the vulnerable and fuel poor with additional financial support.”
Alongside the Energy White Paper, the government has also confirmed that it is to enter negotiations with EDF in relation to the Sizewell C project in Suffolk as it considers options to enable investment in at least one nuclear power station by the end of this Parliament. If the project proceeds, it could create thousands of new jobs during construction and operation.
The government said it will also continue to engage with other developers with interest in the UK new nuclear market. This includes the creation of an Advanced Nuclear Fund of up to £385 million to support the development of Small Modular Reactors and to support research and development into more advanced nuclear technologies, such as advanced modular reactors, as these technologies progress towards commercialisation.
Hugh McNeal, Chief Executive at Renewable UK, commented:
“Today’s white paper provides greater clarity to the companies investing across the UK to deliver our net zero emissions target. Wind and renewable energy will be at the centre of our future energy system, providing the clean electricity and green hydrogen we need to decarbonise our economy.”
“To meet the goals set out in the white paper, it’s clear that we have to double-down on renewables as the main source of energy for our homes, transport and industry.”
The government has already legislated to establish a new UK Emissions Trading Scheme (UK ETS) from 1 January 2021 to replace the current EU ETS at the end of the Transition Period.
The UK ETS, which would be the world’s first net zero carbon cap and trade market, goes further than the EU system it replaces - from day one the cap on emissions allowed within the system will be reduced by 5%.
The government is also open to linking the UK ETS internationally in principle and currently considering a range of options – although no decision on preferred linking partners has yet been made.
The government said the technical system underpinning the scheme is in final stages of development and on track to be ready on time.
Click here to download the Energy White Paper
Sign In
