The energy crisis and the climate emergency share the same root cause: our reliance on fossil fuels. To address the interlinked crises of high energy bills, energy insecurity and climate change and meet our legally binding net zero targets, we must drastically reduce our use of oil and gas. While this is the stated ambition of governments at every level in the UK, unfortunately we have yet to see the scale and pace of delivery we so urgently need.
Globally, the race to a clean energy future is underway. The green energy sector already employs more people worldwide than fossil fuel industries. Moving to a cleaner and energy efficient world offers significant societal benefits through job creation, better public health, warm homes, reduced energy bills and increased energy security by ending our dependence on volatile international oil and gas markets.
Yet the UK has no clear plan for its transition to a net zero economy. Earlier this year, the head of the CBI warned that we are lagging behind our international rivals on renewables and green tech – with the UK already having missed out on £4.3bn of green growth market value in Europe alone to date. The economic benefits of net zero are clear, as evidenced by the Energy and Climate Intelligence Unit’s recent report, showing that the transition to a greener economy is worth £71bn per year.
When it comes to the green transition, the UK Government has made some promising commitments but words are not enough, they must be turned into delivery. In the upcoming Spring Budget on 15th March, the UK Government’s focus needs to be on firm, actionable, long term plans detailing exactly how the ambition will turn into action on the ground.
The actions urgently needed from government are clear. They have been repeatedly evidenced, not least in Conservative MP Chris Skidmore’s independent Net Zero Review.
As the report outlined, the electrification of heat is essential. Replacing the nation’s gas boilers with low carbon heat pumps is a key part of reducing our carbon emissions and reaching net zero. The UK Government has already committed to phasing out the installation of gas boilers in new build homes by 2025 and in any homes from 2035. Now we need a viable plan for making the switch to alternative low carbon options a reality. Creating an effective market for heat pumps is crucial to deliver on the UK Government’s target of 600,000 installations a year by 2028.
As things stand, industry and the public are not being given clear signals on which technologies to adopt, nor on when and how the transition to low carbon heat will happen. The Net Zero Review said that the UK Government needs to put long term, consistent funding and regulatory certainty in place for the next ten years. This long term view is essential for industry to invest in skills and develop effective strategies for delivering large scale installations of low carbon heating systems.
We must end our dependence on polluting energy sources by shifting to renewables whilst also reducing our overall energy consumption. This is particularly true of home heating as Britain’s homes are among the leakiest in Europe. With the majority of properties in Britain being energy inefficient, most people are paying for heat that simply escapes.
We need a National Retrofit Strategy for UK homes, outlining precisely how we are going to move away from gas central heating and improve energy efficiency. As detailed in the Net Zero Review, this must include an earlier legislative target for gas-free homes by 2033 and an extension to 2028 of the current Boiler Upgrade Scheme, which provides homeowners with grants towards low carbon heating systems. An announcement on this is needed as soon as possible to provide certainty. Only such certainty from long term government planning and legislation will increase the implementation of home retrofits, while also bringing costs down.
To further reduce our reliance on fossil fuels and make energy bills affordable, now and in the long term, we urgently need a national programme supporting the rollout of energy efficiency home improvement measures, primarily insulation. As part of this, we need a national energy advice service in England, providing tailored support on energy efficiency for homeowners – as already exists in Scotland.
This Government has already had multiple opportunities to set out an actionable plan for the green transition – from its 2020 Ten Point Plan to its 2021 Net Zero Strategy. Last year’s Energy Security Strategy outlined ambitions for increased renewable energy generation but lacked specific details as to how those pledges are going to be achieved.
Following the recent creation of the Department for Energy Security and Net Zero, the upcoming Budget is a decisive opportunity to show leadership and focus on delivering the legislation, long term policies and finance to drive forward market confidence, investment, supply chains and public awareness to deliver the crucial green agenda.
The evidence is undeniable. We cannot afford to wait any longer for effective action and large-scale delivery towards our net zero goals and the UK Government needs to convert its words into action.
Mike Thornton is chief executive of the Energy Saving Trust.
