Green energy confusion ‘stalling UK investment’

September 30, 2013 by  
Filed under Green Energy News

The investor letter calls for the decarbonisation target to be set in 2014 for
implementation in 2030 as the “least-cost pathway to decarbonisation by 2050

one which could trigger significant growth opportunities for the UK.”

Steve Waygood fromAviva Investors, said: “We are increasingly factoring
climate change risks into the decisions we make, but the confusion over
medium-term energy policy is a significant impediment. We call on the
Chancellor to support legally binding decarbonisation targets, which will
benefit all stakeholders in the investment chain.”

Ben Warren, Partner at EY added: “The UK has the potential to offer a safe
harbour for renewable energy investors in Europe, but the delay in
delivering a stable policy framework is weakening our prospects and holding
back investment. It is essential that this Government commits to a clear
direction of travel towards a decarbonised energy system, with the inclusion
of a meaningful 2030 decarbonisation target in the Energy Bill as a first

After the Commons, the debate over the decarbonisation target has been delayed
until 2016. But the investors have argued that to “delay the establishment
of a target until after the next general election will affect investment
decisions being made now.”

The investors have also pointed to the argument put forward by the UK Energy
Research Centre (UKERC) which said: “The absence of a 2030 decarbonisation
target in the Bill may not persuade investors of the need for new
manufacturing assets in the UK, as there is a risk that these could be
stranded after 2020 once the current targets have been met”

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