Dan McGrail, Chief Executive, RenewableUK :
“We welcome the Chancellor’s commitment to use the National Wealth Fund to transform ports around the UK into new industrial hubs for offshore wind manufacturing and assembly, building and supplying projects here as well as exporting our cutting-edge technology worldwide. We know that, with the right grants and incentives from the National Wealth Fund, the UK has the potential to secure hundreds of millions of pounds of investment in offshore wind alone, building the supply chain and creating jobs. Given fierce international competition, the sooner that process starts the better.
“Ultimately, with co-ordinated support between Government and industry, we believe the UK could triple the size of its offshore wind supply chain, boosting the economy by £25 billion over the next decade.
“We’re also pleased to see support for eleven new green hydrogen projects which will provide vital flexibility and greater stability for our future energy system, as green hydrogen can be stored and used whenever it’s needed”.
Simon Cran-McGreehin, Head of Analysis, Energy & Climate Intelligence Unit (ECIU):
“The Energy Crisis Commission concluded that the UK remains ‘dangerously underprepared’ for another crisis because of its high dependence on gas, which in no small part relates to the poor efficiency of UK housing stock compared to many other countries. Treasury will need to build on today’s budget announcement at the spring comprehensive spending review if it is to shield the millions of homes that continue to face high bills and are still vulnerable to further prices spikes. Expanding the Boiler Upgrade Scheme will help more families switch from gas boilers to heat pumps that run on increasingly home-grown, renewable power.
“Green hydrogen is an area where the UK could gain a competitive advantage, our heavy industry should welcome the new funding as a route away from fossil fuels and towards greater energy independence.”
Trevor Hutchings, Chief Executive, REA (Association for Renewable Energy and Clean Technology):
“We welcome the Chancellor’s Budget as a significant step forward, underpinned by ambition and a commitment to strengthen the UK’s green economy. The shift in fiscal rules to unlock investment signals a bold departure from previous approaches, opening pathways for new infrastructure and sustainable growth.
The confirmation of policies like the Carbon Border Adjustment Mechanism, the Warm Homes Plan, and GB Energy funding, along with continued support for electric vehicles and increased funding for the Boiler Upgrade Scheme, all represent positive leaps forward. Yet, there are missed opportunities to drive more ambitious outcomes, such as increasing the Fuel Duty rate and Carbon Floor Price, which could accelerate our transition to net zero.”
Rachel Solomon Williams, Executive Director, Aldersgate Group:
“This Budget’s plans to accelerate green growth and provide long-term stability are very welcome, and echo recurring calls from businesses across the country. Changes in the fiscal rules, and multi-year funding settlements for growth sectors and critical infrastructure, offer a clear signal that the government is serious about investing in the foundations of a thriving green economy.
“We welcome the new investment for the Warm Homes Plan, which offers the much-needed certainty required to drive investment in this area. Today’s announcement of a three-year settlement for heat decarbonisation and building energy efficiency, with over £1 billion committed for 2025, and £3.4 billion guaranteed for supply chains in the coming three years, will be a crucial signal to businesses across the country; we hope to see the final plan extended over a longer period. To support the delivery of this change and others announced in the Budget, while maximising job creation and growth opportunities, further details on plans for Skills England will be vital.”
Mike Clancy, General Secretary Prospect:
“This was always going to be a tough budget and spending round, but it is positive to see the government taking action on growth.
“The changes to the fiscal rules, which Prospect called for, are necessary and will allow capital investment in vital areas of the economy.
“Sizewell C nuclear power station will protect and create thousands of skilled jobs. The Final Investment Decision (FID) has already been delayed, and it is critical that the timeline outlined today for FID in spring is now delivered. Ministers must continue during this time to give the project clear and visible support to reassure the workforce and investors.”
Ross Driver, Fund Manager, Foresight Solar:
“While today’s Budget brings mixed signals for investors, we remain deeply confident in renewables as a strong, resilient asset class. The changes in tax treatment could shift investment dynamics in the short term and the bond markets will continue to be watched closely as gilt rates remain high, but the bigger picture shows we’re still moving in the right direction. With markets mostly expecting interest rates to fall, hopefully bringing down gilt rates, too, we are confident in an attractive investment environment for UK assets in the long term.”
Nicola Riley, Senior Director, Net Zero Infrastructure, Turley:
“The Chancellor’s announcement to unlock the National Wealth Fund to invest in the industries of the future, provide funding for 11 new green hydrogen projects across the UK, and reinforce the Government’s commitment to GB Energy, marks an exciting step in Labour’s mission to drive the UK’s transformation into a green energy powerhouse.
“With a significant £8.3 billion market intervention previously outlined, Labour’s plan for GB Energy will help accelerate renewable infrastructure, enhancing energy security, and reducing household bills.
“Moving forward we hope to see the Government utilising the National Wealth Fund to its full potential, to support direct investment in ports, hydrogen and industrial clusters, in order to drive economic growth if Labour is to achieve its commitment of full clean energy by 2030.”
Philip Silk, Development Director, Conrad Energy:
“There are lots of welcome measures in today’s Budget and it’s good to see that the Government continue support for the development of green hydrogen. I wouldn’t say we’ve broken entirely new ground as there was a fair amount of reiterating previous commitments, but today’s Budget clearly keeps us on the path to decarbonisation. The protracted approval process has been a pretty sizeable barrier to development for some time. It might not sound glamorous, but setting aside additional funding for extra planners could reduce delays and so can only be a good thing.
“Opening the cheque book for new projects is of course vital, but there is still the fundamental problem of how we connect these to the Grid. As things stand, the Grid works on a first-come, first-served basis, with a pipeline of projects that’s continuing to grow at a rate of around 20GW a month. The problem is that viable projects often find themselves stuck behind a horde of zombie projects that have little chance of success. A consultation starts next month to facilitate “ready” and “needed” projects, a positive step for sure, but we really need to see how this works in action. There is still the risk that developers will lose significant amounts of capital on large upfront costs getting projects ready, only then to find they are deemed “not needed”. If any of the new projects get stuck amid this stalled pipeline, then the effect of the extra investment could be significantly diminished.
“It’s beyond the gift of the Chancellor in the Budget, but we need to ensure that the extra investment pledged today is matched by the promised reform of the planning system and the proposals to prioritise projects ready to start generating power. Otherwise, there is risk that we actually just invest in building a bigger logjam.”
Dave Richardson, Interim Chair of the North West Hydrogen Alliance and Decarbonisation Solutions Director at Costain:
“Great news coming out of today’s Autumn Budget with Chancellor Rt Hon Rachel Reeves confirming funding for 11 HAR1 schemes in her budget statement, including Barrow-in-Furness located right here in the North West.
“As an Alliance, we’re pleased to see such a strong commitment to the hydrogen and carbon capture sector, which will be essential in decarbonising key industries across the country—such as low-carbon refining, glass, and chemical manufacturing. This support not only helps to protect thousands of existing jobs but also attracts new businesses, moving Britain closer to becoming a clean energy superpower.”
Christophe Williams, chief executive, Naked Energy:
“Our Net Zero goals haven’t been properly addressed in the Autumn Budget, and heat decarbonisation has been woefully neglected…”
“The Warm Homes Plan is a great scheme for the residential sector, but we need to be treating the commercial and industrial sector with the same amount of prominence. It’s baffling that we’re not seeing much policy on this front as its industry that demands the most heat, but is the hardest to decarbonise. It’s here that the Government needs to step in. The continued commitment to the Public Sector Decarbonisation Scheme should be viewed as the bare minimum, and we can’t rest on our laurels if we to decarbonise our heat demand.
“We’ve already seen over a decade of inaction when it comes to heat decarbonisation, and the climate crisis isn’t getting better.”
Giles Hanglin, chief executive, Apatura Energy
“To realise the new Labour government’s plans to make Britain a clean energy superpower, we must think about the circular economy. It’s reassuring to see such investment in a cleaner future; however, funds alone do not secure a clean future for the country. A circular economy lasts longer than a prime minister’s term in office.
“If implemented appropriately, we believe today’s budget could be labelled the ‘greenest budget in UK history’, a step towards a world fully powered by clean, renewable energy. But this budget is about much more than the environment: it’s a huge step towards energy independence and futureproofing our resources.”
…“One area we were disappointed not to get the attention it deserves was data centres. In 2022, data centres accounted for just 2.5% of the UK’s electricity consumption, but with the National Grid expecting this figure to increase six-fold by 2035, the Government must have a coherent strategy to match the ever-increasing demand.”
Beatrice Barleon, Head of Policy and Public Affairs, EngineeringUK
“We welcome the Chancellor’s commitment to invest in education and skills as a central pillar of the Government’s growth agenda, not least through the creation of Skills England and the announcement of a £40 million pot to develop new foundation and shorter apprenticeships in key sectors. We look forward to continuing to support the Government to develop a new Growth and Skills Levy, ensuring an apprenticeships system that provides ample routes into engineering and technology careers for young people.
“The pledges of significant funding uplifts for school budgets and further education colleges will be key to addressing the teacher recruitment crisis, which is particularly acute in STEM subjects. To resolve the teacher workforce crisis in the long-term, this must be accompanied by a similar commitment to teacher retention, such as by reversing short-sighted cuts to subject-specific CPD for STEM teachers.”
As other readers have noted above, Britain’s dirty ‘renewable’ energy secret is Drax and Lynemouth power stations where millions of tonnes of imported wood pellets are burnt each year. Together these two inefficient power stations supply over 4% of the UK’s total electricity. A rational discussion of UK energy future must recognise and deal with the flawed climate accounting that treats Big Biomass as low carbon, and address the social and environmental impacts that result from woodfuel production.
Put simply the Big Biomass model is a con-trick – it’s no more than a giant carbon-offsetting scheme. It purports to be low-carbon on the basis that emissions from burning trees will eventually be absorbed from the atmosphere by future tree growth. The biomass power companies that claim to be low-carbon and which are handsomely rewarded by UK government subsidies have no responsibility to replant and grow new trees, or to ensure that others do. Instead there is a vague and impossible-to-monitor idea that as long as overall forest carbon stocks are increasing, it’s OK to take and burn as much as the power stations require.
Imagine the uproar if a generator proposed that we re-start coal burning in the UK because they had struck a deal to protect existing forests or to plant new trees and thereby offset their carbon emissions?
Maybe the dial is moving. This week, UK Govt Minister Lord Hunt at least admitted in a House of Lords debate that Big Biomass at Drax is offsetting:
“It is true that Drax is an emitter of carbon but that is offset—netted off—by the new forestry growth that takes place and absorbs the carbon. This is not a fanciful notion by the Government; the International Energy Agency, the IPCC and the Committee on Climate Change all accept that biomass, as long as sustainability criteria are applied and accepted, is in that way a low-carbon renewable energy.”
(https://hansard.parliament.uk/lords/2024-11-11/debates/D3208C79-D529-4755-AC07-AF835D5FE99F/DraxPowerLimitedOfgemInvestigation)
What the noble Lord failed to add is that the undisputed carbon emissions from Drax and Lynemouth are not simply written down to zero by the bodies he cites, but they are instead added to the carbon emissions produced in the countries supplying the wood fuel, such as the USA. Under the adopted UNFCCC accounting rules these emissions appear in the Land Use, Land-Use Change and Forestry sector of the GHG inventory in the country producing the biomass. It is this entirely arbitrary accounting treatment that allows UK government to dodge responsibility for these emissions and for the other harms resulting from Big Biomass.
Time for some honesty Mr Miliband!
Government should not underwrite the performance of “decarbonisation” projects promoted by the industries which have caused (and sustain) the problem, nor should it pay compensation for delays to projects involving industrial clusters.
it would be prudent to assume that proposals to capture post-combustion CO2 at power stations will not achieve sustained capture rates anything like those required in the UK government’s “Net Zero by 2050″ plans. Courts have twice judged those plans insufficient. The Climate Change Committee repeatedly notes that progress is well behind schedule.
Those rates should be net of the facilities’ energy penalty – and supply chain emissions upstream and downstream. The net amounts, especially for power stations which burn imported wood pellets, may be paltry – and unsuitable for carbon removal credits in advance of any post-capture permanent disposal.
Proposals to capture post combustion CO2 at energy-from-waste facilities are implausible / cynical. As with those proposed for Drax power station, their benefit is overestimated. They wrongly deem that post-combustion CO2 from biogenic material (regardless of its country of origin) is carbon neutral and the entity which captures that CO2 should be credited with negative emissions (regardless of the country of its permanent disposal).
Proponents of such facilities are clearly irrational when the assert that if government, the IPCC, and others state that those facilities are needed then they will work as proposed.
The government’s £22 billion budget for such proposals is more likely to be a hinderance to UK – and global – decarbonisation than a help.
I live in an area where Drax sources raw material to make pellets that get shipped to the UK to be burned for energy. Drax is currently using material that came from rare old growth forests in northern British Columbia. This is fundamentally unsustainable. Our remaining natural forests have been in development for millennia and support complex food webs made up of species that are being driven into rarity by industrial forestry. Drax is ‘helping’ the destruction of our last natural forests in BC by obtaining woody material from areas that were habitat for northern goshawk, fisher, grizzly bear and other life forms we care about here. Drax should be charged with ecocide for what they are doing in British Columbia.
Whilst new funding and a sense of transitional energy urgency is more than welcomed and long overdue, there is no mention of existing subsidies which could be reutilised. I am referring to Drax, which has received £7bn since 2012 and will require yet more for carbon capture. The Guardian’s energy correspondents headline “Drax will keep on raising carbon levels until 2050, study says” provides plenty of reasons for such reallocations.
I appreciate reading the comments from the twelve organizations about energy and environment issues in the Chancellor’s budget announcement. Thank you for soliciting those comments.
I am disappointed that none of those twelve comments mentioned the fact that since 2012 the government has paid Drax subsidies totalling £ 7 billion to burn trees to generate electricity. https://www.theguardian.com/business/article/2024/sep/09/why-the-uks-biggest-carbon-emitter-receives-billions-in-green-subsidies
Most of those trees are being clear cut from forests in British Columbia and the southeast of the US.
I have first hand knowledge of the logging and pellet manufacturing in North Carolina for Drax that is being done by its largest pellet supplier, Enviva, which is now in bankruptcy. The logging being done in North Carolina to feed the four Enviva pellet plants there and the one just across the border in southeast Virginia is almost exclusively of naturally-generated, mixed-species hardwood forests. Some of these forests are old growth and some are in wetlands. There is no requirement that the clear-cut acreage be set out in trees, or even that the acreage remain as forest land to begin the 50+ year process of successional regeneration to again become a mixed-species, mixed-age forest.