Author Archives: HM Government

An ambitious strategy setting out how the UK is leading the world in cutting carbon emissions to combat climate change while driving economic growth, has been published today (12 October 2017) by Business and Energy Secretary Greg Clark.

‘The Clean Growth Strategy: Leading the way to a low carbon future’ builds on the UK’s strong progress to date. Carbon emissions in the UK have fallen and national income risen faster and further than any other nation in the G7 – since 1990, emissions are down by 42% while the economy has grown by 67%.

The government’s strategy sets out how the whole country can benefit from low carbon economic opportunities through the creation of new technologies and new businesses, which creates jobs and prosperity across the UK, while meeting our ambitious national targets to tackle climate change.

Business and Energy Secretary Greg Clark said:

This government has put clean growth at the heart of its Industrial Strategy to increase productivity, boost people’s earning power and ensure Britain continues to lead the world in efforts to tackle climate change.

For the first time in a generation, the British government is leading the way on taking decisions on new nuclear, rolling out smart meters and investing in low carbon innovation. The world is moving from being powered by polluting fossil fuels to clean energy. It’s as big a change as the move from the age of steam to the age of oil and Britain is showing the way.

Climate Change and Industry Minister Claire Perry said:

The impact of the Paris agreement and the unstoppable global shift towards low carbon technologies gives the UK an unparalleled opportunity.

By focusing on Clean Growth, we can cut the cost of energy, drive economic prosperity, create high value jobs and improve our quality of life.

Every action that the government takes to cut emissions must be done while ensuring our economy remains competitive. The government’s actions to reduce carbon emissions, through support for renewable energy and energy efficiency measures, have helped to reduce average consumer energy bills and more than offset the cost of government support for low carbon technologies, and the costs of key technologies such as offshore wind is plummeting.

For the first time the government is setting out in today’s Strategy how over £2.5 billion will be invested to support low carbon innovation from 2015 to 2021, as part of the largest increase in public spending on science, research and innovation in over three decades. This funding covers programmes delivering low carbon energy, transport, agriculture and waste.

That £2.5 billion of existing government spending includes up to £505 million from the Department for Business, Energy and Industrial Strategy’s Energy Innovation Programme, which aims to accelerate the commercialisation of innovative clean energy technologies and processes.

There are already more than 430,000 jobs in low carbon businesses and their supply chains. Today’s policies will provide further opportunities right across the country for more jobs, higher earning power and increased productivity. The low carbon economy could grow 11% per year between 2015 and 2030 – faster than the rest of the economy.

Juergen Maier, CEO Siemens plc, said:

Clean growth is good growth and the UK has a great opportunity to lead. Siemens welcomes the launch of the government’s Clean Growth Strategy which sets a clear direction for business and puts decarbonisation at the heart of the industrial strategy.

The government recently announced the establishment of a taskforce of senior financial experts to accelerate growth of green finance in the UK’s low carbon economy. It has been given 6 months to deliver ambitious proposals to accelerate investment in the transition to a low carbon economy, creating high-value jobs and opportunities for UK businesses. It will examine a range of interventions, from making infrastructure investment more sustainable to scaling-up green mortgages.

Today’s Strategy fulfils the government’s ongoing commitment to demonstrate how it will continue to deliver carbon reductions. The UK was the first country in the world to introduce a Climate Change Act that sets a legally binding long-term target and a series of five-year caps on greenhouse gas emissions up to 2050. The government is focused on hitting the fifth carbon budget (2028 to 2032) with the package of measures outlined today.

Shaun Spiers, Executive director of Green Alliance said:

It is great to see this long awaited strategy setting out the government’s ambitions for clean growth. It is certainly a welcome move in the right direction. The test now will be to embed the strategy across government and encourage investment in clean growth by giving businesses the certainty they need.

Going green is not only good for the environment: it is crucial for the future of the UK economy. By taking decisive action to reduce carbon emissions at home we can take advantage of the growing global market for low carbon technology and expertise. This strategy is the opportunity to reboot the agenda on energy efficiency, clean vehicles and the efficient use of resources in the UK.

UK progress was confirmed in a report by PwC which demonstrated the country is strongly outperforming its peers within the G20 according to PwC’s Low Carbon Economy Index (LCEI). Its analysis published last month shows the UK decarbonising faster than any other G20 nation. It also reveals that in 2016, the UK achieved a decarbonisation rate of 7.7% – almost three times the global average.

Jonathan Grant, PwC sustainability director and Low Carbon Economy Index author, said:

Analysis by PwC shows that the UK leads the G20 on clean growth and is decoupling emissions from economic growth significantly faster than its peers. The UK’s success comes down to policies that create a positive investment climate for low carbon technology, the drive to tackle emissions from coal and the strength of our services sectors.

The Clean Growth Strategy should continue the UK’s transition to a low carbon economy.

The Strategy

Measures set out in the Strategy include funding through the BEIS Energy Innovation Programme of:

• up to £10 million for innovations that provide low carbon heat in domestic and commercial buildings
• up to £10 million for innovations that improve the energy efficiency of existing buildings
• an extra £14 million for the Energy Entrepreneurs Fund, including a new sixth fund
• up to £20 million in a Carbon Capture and Utilisation demonstration programme
• up to £20 million to demonstrate the viability of switching to low carbon fuels for industry
• up to £20 million to support clean technology early stage funding

Further measures include commitments to:

Business and industry efficiency

• develop a package of measures to support businesses to improve their energy productivity, by at least 20% by 2030
• establish an Industrial Energy Efficiency scheme to help large companies install measures to cut their energy use and their bills
• demonstrate international leadership in carbon capture usage and storage (CCUS), by collaborating with our global partners and investing up to £100 million in leading edge CCUS and industrial innovation to drive down costs

Improving our homes

• support around £3.6 billion of investment to upgrade around a million homes through the Energy Company Obligation (ECO), and extend support for home energy efficiency improvements from 2022 to 2028 at least at the current level of ECO funding
• we want all fuel poor homes to be upgraded to Energy Performance Certificate Band C by 2030 and our aspiration is for as many homes as possible to be Energy Performance Certificate Band C by 2035 where practical, cost effective and affordable
• develop a long term trajectory to improve the energy performance standards of privately-rented homes, with the aim of upgrading as many private rented homes as possible to Energy Performance Certificate Band C by 2030 where practical, cost effective and affordable

Low carbon transport

• the government has announced an end to the sale of all new conventional petrol and diesel cars and vans by 2040
• spend £1 billion supporting the take-up of ultra low emission vehicles, including helping consumers to overcome the upfront cost of an electric car
• develop one of the best electric vehicle charging networks in the world
• work with industry as they develop an Automotive Sector Deal to accelerate the transition to zero emission vehicles
• invest around £841 million of public funds in innovation in low carbon transport technology and fuels

Transport Minister Jesse Norman said:

The Clean Growth Strategy reinforces our clear commitment to reduce emissions across the UK and to end the sale of all new conventional petrol and diesel cars and vans by 2040.

We are a world leader in ultra-low emission technology, spending £1 billion to support the uptake of these cleaner vehicles and the creation of one of the best charging networks in the world.

Advances in low carbon transport technology can significantly boost economic growth and air quality, and we will continue to work with companies to maximise these benefits for all.

Clean, affordable energy

• phase out the use of unabated coal to produce electricity by 2025
• provide up to half a billion pounds for further Contract for Difference auctions for less established technologies, such as offshore wind, with the next one planned for spring 2019
• work with industry as they develop an ambitious Sector Deal for offshore wind, which could result in 10 gigawatts of new capacity, with the opportunity for additional deployment if this is cost effective, built in the 2020s
• deliver new nuclear power through Hinkley Point C and progress discussions with developers to secure a competitive price for future projects in the pipeline

Agriculture and natural resources

• as we leave the EU, design a new system of future agricultural support to focus on delivering better environmental outcomes, including addressing climate change more directly
• establish a new network of forests in England including new woodland on farmland, and fund larger-scale woodland and forest creation, in support of our commitment to plant 11 million trees, and increase the amount of UK timber used in construction
• work towards our ambition for zero avoidable waste by 2050, maximising the value we extract from our resources, and minimising the negative environmental and carbon impacts associated with their extraction, use and disposal
• publish a new Resources and Waste Strategy to make the UK a world leader in terms of competitiveness, resource productivity and resource efficiency

Environment Secretary Michael Gove said:

We are determined to be the first generation to leave the environment in a better state than we inherited it, and achieving clean growth is an integral part of our work to deliver a Green Brexit.

Through our ambitious plans to tackle waste, better manage our precious natural resources and create a more environmentally-focused agricultural system, this government is taking the lead in creating a cleaner, greener Britain.

Government leadership

• government will work with businesses and civil society to introduce a ‘Green Great Britain’ week to promote clean growth.

Case studies

Clean Growth Strategy case studies

read more

• President of the Board of Trade Dr Liam Fox convenes the new Board of Trade today in Bristol
• first meeting attended by leaders from Scotland, Wales and Northern Ireland
• advisers from across the United Kingdom present, providing local expertise to guide the Board on trade and investment matters

Today (12 October), International Trade Secretary Dr Liam Fox convened a new Board of Trade to help boost exports, attract inward investors and ensure the benefits of free trade are spread equally across the country.

The new Board of Trade will bring together prominent figures from business and politics from each part of the UK, including representatives from Scotland, Wales and Northern Ireland. Advisers include Collette Roche, Chief of Staff at Manchester Airport, former President of the Board of Trade, Patricia Hewitt and Ian Curle CEO of the Edrington Group, one of Scotland’s leading premium spirits companies and produces of The Famous Grouse whisky.

Latest statistics show over the last 12 months the UK secured more foreign direct investment projects than ever before, UK exports have increased 13.1% on the previous 12 months in the year to August 2017 and the current account deficit narrowed to £101.3 billion in the year to 2017 Q2, from £113.8 billion in the year to 2016 Q2.

President of the Board of Trade, Dr Liam Fox said:

There is a world of opportunity out there for UK businesses and the Board of Trade will help identify and unlock new export markets and encourage further inward investment.

The advisers on the Board will act as the ‘eyes and ears’ of the modern businesses community to ensure the benefits of free trade are spread equally across the country.

The meeting will be held today at Bristol Robotics Lab, a collaborative partnership between the University of the West of England (UWE Bristol) and the University of Bristol. The lab, which brings together over 200 academics, researchers and industry practitioners, is the most comprehensive academic centre for multi-disciplinary robotics research in the UK, and is spearheading Britain’s efforts to become a world leader in modern advanced robotics.

President of the Board of Trade Dr Fox has also invited advisers from across the United Kingdom to provide local expertise and guide the Board on trade and investment matters.

The agenda of the meeting will include a Bristol Airport presentation on regional transport access, an area that will be key in the promotion of future UK exports for the whole of the UK.

The President will also invite a discussion on how the Board will promote a culture of exporting and investing across the whole of the UK and celebrate the very best of British business, already creating jobs and driving prosperity through their international outlook.

The Board of Trade will meet 4 times a year with meetings rotated around the UK guaranteeing all parts of the union have a chance to raise the issues most important to them. To ensure all voices are heard representatives from each region will be invited to the meetings.

Case Studies

England

• Cheltenham-based fragrance house Marmalade of London is celebrated success in Canada following 2 orders over the summer and anticipated sales of almost £1.4 million over the next 5 years
• murder mystery company Red Herring Games of Grimsby is opening previously unreachable markets, with Amazon US predicting orders totalling £200,000 for the next 5 years

Scotland

• Livingston-based company Highlander Outdoor secured a significant contract win with the United Nations High Commission for Refugees (UNHCR) in Geneva, providing reflective foam sleeping mats for humanitarian response efforts
• Glasgow-based luxury knitwear company Green Thomas recently securing export wins in Japan, totalling 70% of the company’s order book

Wales

• Cardiff and Vale College (CAVC), one of the largest colleges in the UK, is exploring plans to open its second International Centre of Education in Hefei, China
• Welsh business Concrete Canvas is celebrating another record breaking year of exports, with 85% of turnover directly resulting from overseas sales

Northern Ireland

• Northern Ireland manufacturer, BlueMAC, has seen their annual turnover increase by 50% since embarking on their exporting journey 3 years ago, going on to secure export wins in the UAE, Australia, France and China

Further information

Membership of the Board of Trade is restricted to Privy Councillors.

The only member is:

(i) Secretary of State for Department of International Trade and President of the Board of Trade (Chair)

Advisers to the Board

(i) Secretary of State for Scotland

(ii) Secretary of State for Northern Ireland

(iii) Secretary of State for Wales

England (6)

(i) Patricia Hewitt – outgoing Chair of UK India Business Council

(ii) Andrew Mills – CEO Virtualstock

(iii) Collette Roche – Chief of Staff, Manchester Airport

(iv) Marnie Millard – CEO Nichols PLC

(v) Iqbal Ahmed – Chairman, Chief Executive and Founder of Seamark Group

(vi) Edward Timpson – former Minister of State for Children and Families

Scotland (2)

(vii) Brian Wilson – former Trade Minister

(viii) Ian Curle – CEO of Edrington Group

Wales (2)

(ix) Lord Rowe-Beddoe – former Chair of Welsh Development Agency

(x) Heather Stevens – Chair and founding member of The Waterloo Foundation

Northern Ireland (1)

(i) Mark Nodder (CEO of Wrights Group)

Further information

• Contact the DIT Media and Digital Team on 0207 215 2000
• Follow us on Twitter @tradegovuk

read more

The government is today publishing the Clean Growth Strategy – an ambitious strategy to cut emissions while keeping costs down for consumers, creating good jobs and growing the economy. This is an important component of our modern Industrial Strategy. We are also laying our responses to the Committee on Climate Change’s 2017 Progress Report to Parliament and publishing a suite of related documents.

Clean growth can make a real difference to people’s lives, from reducing energy bills and improving air quality, to supporting new technologies and boosting earning power in high-quality jobs.

We start from a position of strength. We have already made significant progress towards our legally binding 2050 target to reduce emissions by at least 80 per cent against 1990 levels. We exceeded the target emissions reductions of our first carbon budget (2008 to 2012) by one per cent of the budget level and we project that we will outperform against our second and third budgets covering the years 2013 to 2022 by almost five per cent and four per cent respectively.

The UK is a world leader in cutting emissions while growing the economy. Provisional statistics indicate that UK emissions in 2016 were 42 per cent lower than in 1990 and 6 per cent below those in 2015. At the same time, the UK’s GDP has increased by 67 per cent since 1990 showing that a strong, growing economy can go hand in hand with reduced emissions. On a per person basis, this means that we have reduced emissions faster than any other G7 nation and led the G7 group in growth in national income over the period.

The global transition to a low carbon economy offers huge growth opportunities which the UK is well placed to take advantage of as a core element of our Industrial Strategy. Our low carbon sector already employs over 230,000 people directly and another 200,000 through supply chains. Analysis for the Committee on Climate Change estimated that the low carbon economy has the potential to grow 11 per cent per year between 2015 and 2030 – four times faster than the rest of the economy.

While we have performed strongly to date, the task ahead is significant. The Clean Growth Strategy sets out policies and proposals across the whole of the economy and the country including business, housing, transport, power, the natural environment and the public sector.

Low carbon innovation is at the heart of our approach, with over £2.5 billion of government investment from 2015 to 2021. This forms part of the largest increase in public spending on UK science, research and innovation in almost 40 years.

The Clean Growth Strategy is an important milestone in the UK’s work to cut emissions and grow the economy. But it is not the end of the process. Clean technology is developing at a rapid pace and costs are falling faster than many predicted – for example, the cost of offshore wind has halved in two years. We look forward to working with colleagues across both Houses and the Devolved Administrations, and with people and organisations across the country, to ensure the UK can continue to lead the world in clean growth.

read more