British businesses call for more money to fund Boris Johnson’s ‘disappointing’ green plan

Aims of government’s ‘green industrial revolution’ welcomed, but questions raised about the cash to back them up

Wind turbines at sunrise off the north east coast of England (Getty Images/iStockphoto)

Business groups and investors welcomed Boris Johnson’s green plan but  also questioned whether the prime minister has pledged enough money to make a serious contribution to tackling the climate emergency.

Solar industry – ‘disappointing’

The prime minister made little mention of solar, focusing instead on his vision of making Britain the “Saudi Arabia of wind”.

The solar industry trade body said it was “disappointing” that Number 10 has so far underappreciated the potential of sunlight as an energy source.  

“Not only is it set to be the cheapest power source for years to come, it also provides good jobs and business opportunities up and down the country,” said STA chief executive Chris Hewett.

“Whilst the prime minister might have a blind spot for solar, decisions in the market are likely to outpace his thinking. Today the City of London signed a 15-year deal to fund a new solar park, residential solar installations have already bounced back to pre-pandemic levels, all major utilities are expanding their solar ambitions and costs continue to fall. Delivering net-zero is now as much about economics as it is policy.”

The STA is calling on the Government to triple existing solar capacity to 40GW by 2030 Aviation: ‘Jet Zero’ welcomed

Aerospace and aviation

Promises on aviation were fairly woolly, with a plan to support investment in greener energy for planes under the previously announced “Jet Zero” programme.

That didn’t impress green groups, who wanted firmer commitments on an industry that’s likely to become a much bigger source of emissions. However, it was welcomed by ADS, the aerospace and defence industry’s trade body.

ADS chief executive Paul Everitt said the government recognised the importance of radical new green aircraft technology.

“The UK has the potential to become a global leader in developing and manufacturing the technology needed to achieve net zero aviation. Realising this ambition will bring huge environmental benefit, generate exports worth billions of pounds a year and sustain thousands of high value jobs in all parts of the country.”

Investors: ‘The hard work starts now’

Fund managers spied the opportunity for returns in renewable energy investment but many thought the prime minister’s plan fell short of what’s required.

“This announcement is a promising starting point, but there is a lot more work to do to put the UK economy on a credible pathway for net zero emissions,” said Sophie Lawrence, senior ethical, sustainable and impact researcher at Rathbone Greenbank Investments.

“The hard work starts now, to ensure the plans are underpinned by a clear roadmap for delivery and the necessary public and private investment to deliver them.”

Gemma Woodward, director of responsible investment at Quilter Cheviot was more positive.

“The plan marks a new era in government policy, one in which the prevailing mantra is no longer ‘it’s the economy, stupid’ but rather ‘it’s the environment, stupid’.  

“Climate-considerations should trump all else, and net zero by 2050 is the primary focus across all government departments.

“For investors, all roads lead towards net zero by 2050, and these shifts in government and regulatory policy should act as a tailwind for companies and sectors that serve the ‘new economy’.”

More funding required

Jonathan Geldart, director general of the Institute of Directors, said the plan was an “important first step” but warned of practical problems ahead.

"More information is still needed in areas, such as nuclear power and carbon pricing. Further funding will no doubt be needed in the years to come.

“In aiming for net zero, one of the big challenges will be enabling directors to translate top-line commitments into action at the company-level. Businesses of all sizes should be empowered to make a difference. Nine in ten IoD members believe it’s their responsibility to take action on climate change in their organisation, and greater investment incentives would help to capitalise on this enthusiasm.”

Carbon pricing plan needed soon

The Commons business committee called for action on carbon pricing, seen as a key pillar in reducing emissions.

Committee Chair, Darren Jones, said the government’s plans “must only be the beginning” and called on Rishi Sunak to back up the prime minister’s words with more investment in nest week’s spending review.

“The BEIS Committee has been examining some of the fundamental issues around post-Brexit carbon trading and the suggestions of a move to a carbon tax,” Mr Jones said.

“Given the short amount of time before the end of the transition period, it’s vital for the business community, and for our efforts to reduce carbon emissions, that the government comes forward with answers soon on carbon pricing.”