IIGCC Responds to UK Chancellor's Autumn Statement

Emily Murrell, IIGCC’s Policy Programme Director, responding to the UK Chancellor’s Autumn Statement:

In the Chancellor’s Autumn Statement, the government took several positive steps towards achieving its net zero goals, most notably by taking forward promises to improve grid connectivity and provide investment in green industry. However, these measures do not go far enough in delivering the comprehensive plan needed to support the UK’s transition to net zero.

Improving grid connectivity is crucial to decarbonising the UK’s energy system. The Connections Action Plan and Transmission Action Plan, published the same day as the Autumn Statement, offered further details on how the government plans to deliver this, including by reducing grid access delays by up to 90%, which will help green energy producers to provide energy to consumers more quickly.

The government also promised £960 million for a “green industries growth accelerator” to expand domestic low carbon supply chains. Unfortunately, this does not go far enough. Attracting green investment in the global markets is becoming increasingly competitive, with the US Inflation Reduction Act and the EU Green Deal just two examples of other countries or regional blocks proactively incentivising investment in those areas. If the UK wants to attract sufficient investment in UK green industries, with the benefits of new jobs and economic growth that can bring, it must respond quickly with a more comprehensive industrial strategy of its own.

Back in March, the government committed to publishing additional net zero investment roadmaps for key sectors and technologies. However to date these only provide high level guidance, and the investment community is still eagerly awaiting more granular decarbonisation pathways for key sectors in the UK economy. These pathways will support investors in making long-term decisions about their portfolios and reallocating capital towards the UK green growth we need to see.

The message from the investment community has been clear: they require a detailed, consistent policy framework to unlock the investment opportunities that will address the climate crisis and help close the finance gap. We welcome the government addressing the need for greater grid connectivity and investment in green industry, but it must go further if the UK is going to deliver on its ambition to become the world's first net-zero aligned financial centre.

Disclaimer: All communications and initiatives undertaken by IIGCC are designed solely to support investors in understanding risks and opportunities associated with climate change and take action to address them. Our work is conducted in accordance with all the relevant laws, including competition laws and acting in concert rules. IIGCC’s services to members do not include financial, legal or investment advice. The views expressed here do not necessarily represent those of all IIGCC members.