What does the election result mean for the UK’s energy industry?

Green issues were discussed in the election like never before, amidst a climate of fear around the future of the planet.

The main parties all stated they want to reduce the UK’s greenhouse gas emissions to net-zero by at least 2050, if not before. While progress on this front has been positive, the UK is still nowhere near meeting its target and the Committee on Climate Change has said radical changes need to happen in the next few years.

Planning for the future

It is hoped that by 2025 that the UK will have a plan in place to replace gas as a source of domestic heating with all cars and vans on the road being electric by the early 2030s.

The withdrawal bill, paving the way for Brexit on the 31st January 2020, is due to have its second commons reading this Friday. In February, a huge reshuffle will occur once the UK has left the EU with an expected budget statement in March.

Once Brexit has taken place, the UK will be released from any renewable energy targets set by the EU. The availability of funding from EU institutions may impact the deployment of innovation or capital-intensive projects.

EU funding

There are several EU initiatives that promote investment of energy infrastructure and they currently represent an important source of funding for UK energy projects. Therefore, Brexit could leave the UK short of funding or having to look for other means to support renewable infrastructure projects.

Although the UK would still be bound by national and international decarbonisation obligations, it is expected low carbon energy development will carry on forming part of the government’s climate change policy.

In terms of pricing, UK energy prices would be affected if the EU imposes export tariffs on gas flowing to the UK.

Sustainability obstacles holding back businesses from going green

Why are businesses struggling to change sustainability ambitions into actions?

A survey involving over 9,000 businesses of all sizes and sectors found 96% are wanting to improve their environmental and social practices; however, this is becoming increasingly challenging due to minimal resources and budget.

HSBC spoke to 9,131 of the largest businesses across 35 different markets and asked what actions they are currently taking, and what they plan to do going forward.

Key challenge

Of all the businesses whose opinions were canvassed, 96% wanted to make more resourceful and ambitious choices in the future but found they were being held back by at least one key challenge.

Over a quarter of the surveyed respondents are said to be confused about what to prioritise due to the large volume of Environmental, Social and Corporate Governance (ESG) measurement criteria available, and what best practice looks like for a business of their size.

According to a report from the World Business Council For Sustainable Development (WBCSD), the number of voluntary ESG requirements has increased from 10 to 182 in the last decade, with up to 80% being non-governmental organisations.

Need help?

Is this your business? Are you struggling to reduce your business’s carbon footprint with little budget and resources? Then get in touch with our highly-skilled engineering team who will be happy to help.

Whether it’s energy efficiency surveying, understanding legislation and requirements, utility management, SECR or EV, EPC, DEC and TM44, we have it covered.

Contact one of the sales team on the information below:

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