Powering Up Britain: What is the government’s new net zero plan?
Climate groups warn new measures do not go far enough
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The UK has set out new net zero plans to boost energy security and reduce harmful emissions amid criticism from environmental groups.
Energy security minister Grant Shapps said the 1,000 pages of documents published for the Powering Up Britain plan on Thursday were focused on energy security, a major concern since the war in Ukraine began.
Wholesale gas and electricity prices in Europe surged after Russia invaded Ukraine last year and the British government has been subsidising household and business energy bills since October.
“We want complete independence from that and that is really the key to what I’m doing today,” Mr Shapps said.
What is the new net zero plan?
The government has legislated a net zero emissions target by 2050, which means the country will not be adding to the amount of greenhouse gases in the atmosphere.
The new plan, Powering Up Britain, focuses on amping up clean and renewable energy sources in the UK, including wind, solar and nuclear.
The government hopes this will drive down greenhouse gas emissions and decrease energy costs.
What are the targets?
After Vladimir Putin put Europe in a deadlock due to its overdependence on Russian gas, the government aims to power up the UK’s home-grown energy initiatives.
It plans to ensure Britain has some of the “cheapest wholesale electricity prices” in Europe by 2035, aiming to “rebalance gas and electricity costs.” At present, many charges not related to supplying electricity are added to electricity bills, but not to gas bills.
Experts have been calling for this to end for a long time. Mr Shapps announced that he plans to change this last weekend.
It also plans to maximise the production of UK oil and gas as well as potentially “doubling” Britain’s electricity generation capacity by the late 2030s.
The government is further pledging £381 million to increase the number of electric vehicle charging points through a Local Electric Vehicle Infrastructure Fund. This appears to be money that had not previously been announced for this purpose.
Some other measures in the 1,000 page plan include helping to insulate 300,000 of the poorest performing homes and confirmation of £240 million funding for green hydrogen projects.
The government has proposed to move existing “green levies” from electricity prices over to gas prices so as not to penalise those using electricity, which is less carbon-polluting than gas.
It will also allow UK Export Finance – a Government-backed body – an extra £10 billion of capacity to help encourage green UK exports. This capacity is not the same as investing Government money.
Similarly, it confirmed that Mr Shapps “is launching the Floating Offshore Wind Manufacturing Scheme, providing up to £160 million to kick start the investment in port infrastructure projects”. This money and the project appears to have been first announced in November 2021.
What are the aims on heating and insulation?
The Government has renamed the Energy Company Obligation Plus (ECO+) scheme as the “Great British Insulation Scheme”. It does not appear to have announced any new money for the scheme, but has revealed some of the details of how it will work.
It also said that a new £30 million Heat Pump Investment Accelerator would help bring in private investment. The accelerator and the money had already been announced a year ago.
The Government said it would extend the Boiler Upgrade Scheme to 2028. This is new information and offers a grant of up to £5,000 for anyone buying a heat pump for an extra few years.
What are the plans for nuclear?
The Government already announced the establishment of Great British Nuclear last November – a body which is meant to support the industry. On Thursday it announced the names of the two experts who will lead the body and said it would be based in the Greater Manchester area. It did not appear to reveal any new funding for the body.
What about bills?
The Government plans to “rebalance gas and electricity costs”. Right now many charges not related to supplying electricity are added onto electricity bills, but not onto gas bills.
Experts have been calling for this to end for a long time. Mr Shapps announced that he plans to change this last weekend.
What do environmental groups say?
Environmental campaign group Greenpeace said the government’s energy plans were not going far or fast enough to tackle climate change.
“Cheap wind power is still effectively banned onshore in England,” said Greenpeace UK’s head of climate, Mel Evans.
“Ministers talk about leading the world, but the UK is not even making it to the starting blocks of the green tech race.”
Dr Paul Balcombe, senior lecturer in renewable energy at Queen Mary University of London, said the stated intention of insulating 300,000 out of 20 million homes “is clearly insufficient when we have such a poorly insulated housing stock”.
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, questioning why it would take more than a year for the UK to respond to the US plan. “This delay could be the final nail in the coffin for some investors.”
Molly Scott Cato, former Green MEP, said: “The government’s new, watered down Net Zero Strategy highlights the cognitive dissonance that lies at the heart of their approach to carbon emissions.
“The real route to a net zero future and robust energy security begins with a comprehensive, nationwide home insulation programme combined with retrofit to make every home net zero.
“For most homes, this means switching from gas central heating to heat-pumps powered by renewable electricity. However on this front, the government is way behind target.”
The new plan also received criticism from opposition parties as shadow climate secretary Ed Miliband said: “What was billed with huge hype as the government’s “green day” turns out to be a weak and feeble groundhog day of re-announcements, reheated policy, and no new investment.”
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