UK REA: 5th Carbon Budget crucial first step reassuring investors

By U.K. Renewable Energy Association | July 01, 2016

The U.K. government has confirmed the Committee on Carbon Change’s recommended carbon budget, laying out a 57 percent reduction in carbon emissions from 1990 levels during 2027-2032.

This gives the renewables industry and investors more long-term confidence, but will need to be backed up by supportive policies that will unlock finance in much needed new energy infrastructure.

“The fundamentals of energy have not changed post-referendum, we still need new generation that is cost effective, low carbon and secure,” said James Court, head of policy and external affairs. “This would be the worst time for the government to row back or u-turn on existing commitments, which would be toxic to inward investors. So this is a positive first step, but will need to be backed up by a robust energy plan by the end of the year. The referendum has been a shock to economy, yet we still have a looming energy gap. Renewables will be easier to finance than larger centralized projects, will give the U.K. energy security and price stability, as well as boost new technology jobs and inward investment."