Last year, UK investment in the low-carbon economy fell dramatically from $31bn to $28bn, a reduction of 10%. Meanwhile, as a result of the war in Ukraine increasing gas prices, EU investment in the energy transition rose last year.
While the UK leads in offshore wind, onshore wind has been largely blocked by planning restrictions and the government has also been dragging its feet on rolling out solar panels. While the UK may consider itself a world leader in clean energy, investment in the sector has been falling since 2016, apart from a small upturn in 2018.
This lack of progress is further compounded by the lack-lustre measures to boost green energy announced by the government last month, for which no money has been allocated and which plans to utilise carbon capture, a strategy that is seriously questioned by scientists.
Without growing investment in the sector, along with realistic strategies to reduce energy consumption and transition to a low-carbon economy, the UK is in danger of failing to meet its 2050 net-zero target.
In global terms, green energy investment is hitting its stride, encouraged by declining technology costs, government support, international cooperation to reach the SDGs, the popularity of corporate sustainability goals and general public interest. Over 390 companies have joined the RE100 initiative, for which they promise to get all of their electricity from renewable sources by 2040. And since 2010, the cost of solar photovoltaic (PV) modules has dropped by 90% and 55% for onshore wind turbines.
We’re heading the right direction globally, so why is the UK lagging behind? Uncertainties surrounding Brexit and the expiration of certain government incentives, such as feed-in tariffs for solar power seem to be influencing the slow progress towards renewables in the UK.
Wera Hobhouse, the Liberal Democrat energy and climate spokesperson and MP for Bath told the Guardian, “While other nations are facilitating major investment into the key industries of the future, our government is content to sit back and watch them race ahead. The result will be a lack of energy security, higher energy bills, and the continuing failure to hit our climate targets.”
While the UK is struggling to keep pace with clean energy investment, other countries are making huge strides. In Germany over 40% of its electricity came from renewable sources in 2020, mainly wind and solar power, becoming one of the world’s top renewable energy producers. The country’s energy transition, known as “Energiewende,” focuses on increasing renewable energy, improving energy efficiency, and phasing out nuclear and fossil fuel-based power generation. A combination of investment in R&D, grid modernization, and strong public support has made Germany a leader in successful green energy investment initiatives.
Despite the downturn in investment, the UK remains a world leader in renewable energy with 41% of energy generation coming from renewable sources, 25% of that from wind. In this position, the UK stands to overtake Germany’s “Energiewende” if it chooses to invest in the low-carbon transition.
