A group of investors responsible for over a trillion (£) of investment worldwide has written to the Chancellor on the day of his speech to the Conservative Party Conference calling for a decarbonisation target to be included in the Energy Bill. They argue that the lack of a target inhibits investment decisions and negatively impacts the UK’s ability to attract the capital needed to update its ageing infrastructure.
The UK’s electricity network needs a capital investment of an estimated £110 billion to make it fit for the twenty-first century and able to deliver affordable, secure and low carbon power. To achieve this, it is essential for Government to provide investors with the long-term confidence they need to transform the electricity market and drive economic growth.
The letter states that “the lack of a meaningful 2030 decarbonisation target in the Energy Bill is detrimental to this objective – exacerbating policy risk and investor uncertainty. In many cases, this increases the cost of capital and deters major investors, manufacturers and project developers from investing in the UK and creating jobs.”