The UK Sustainable Investment and Finance Association (UKSIF) issued a stark warning today, revealing that a substantial portion of UK energy companies are contemplating relocating their investments overseas in pursuit of more supportive policy frameworks.
The report indicates that 63% of surveyed UK energy firms have either moved or are planning to move their investments outside the UK, citing a lack of favourable policies to support their sustainability objectives.
This trend could spell trouble for the UK’s ambitions to become a leader in green energy, as failing to implement new policies could result in the loss of a potential £115 billion in investment for the UK’s energy sector.
According to UKSIF’s research, 96% of the surveyed energy companies expressed their willingness to increase investments in sustainable projects within the UK, given the right policy framework.
The report emphasises the necessity of policy reforms to attract investment and accelerate the transition to a green economy.
Key measures identified by UKSIF include streamlining planning rules to facilitate quicker approval of large energy projects, ensuring adequate grid capacity to reduce connection times and reforming energy pricing mechanisms to incentivise long term investment in low carbon power capacity.
James Alexander, Chief Executive Officer at UKSIF, said: “We are calling for practical and cost-effective measures that will advance the transition to a green economy and bring direct benefits to both consumers and the UK economy.
“Not only do we see no excuses not to accelerate these, failure to do so limits the UK’s growth potential, will continue to cause costs to consumers and threatens the UK’s position as a world leader in green finance and the undisputed financier of the net zero transition.”
Emma Pinchbeck, Chief Executive Officer at Energy UK, said: “Reaching net zero will require an estimated five-fold increase in current investment levels by 2030 – and around two-thirds of this will come from the private sector.
“This will only happen if investors have the confidence and the right environment to justify committing funding to the UK over the long term.”
Nathan Bennett, Director of Strategic Communications at RenewableUK said: “The UK’s planning system and consenting rules urgently need to be streamlined and shortened, with timeframes for decision-making set out clearly and proper resourcing provided for planning authorities.”
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