Changing climate change targets would, according to investors, bring more certainty to a market which is currently unaffordable.
Rushing climate change goals means the UK risks investing in unproven and expensive technologies, which would result in a slower uptake of a lower carbon economy in the UK.
Called in front of the Energy and Climate Change committee a group of investors agreed that the only way the EMR could be fulfilled would be by creating incentives for potential investors.
Peter Atherton, Head of European Utility Sector Research, Citigroup said: “Our investors don’t have the confidence that the policy mechanisms will be sustainable. Their advice will be ‘change the targets’- that’s what’s driving it all .The targets are too much, too fast. That scares the investment community quite profoundly.”
Chris Hunt, Managing Director of Riverstone reminded the Committee of mistakes made in Europe: “It’s fair to say that we’re still at a very early stage in this renewable energy cycle. Solar may not be attractive right now, but could benefit the UK in the long run. Wind is improving all the time, tidal has not even started. All these things should be allowed for in a framework.”
The investors agreed that a more flexible market, with less restrictions would encourage larger capital flow.
Shaun Mays, of Climate Change Capital, warned the committee: “If the rules of the game are half-fair then we’ll play. If not, we’ll find somewhere else for our capital.”