A busy day for net zero strategies - but do they deliver for business?

Commenting on Net Zero Strategy and Heat and Buildings Strategy, Anthony Ainsworth, COO at npower Business Solutions said:

“This has been a busy day for government net zero announcements, with two major strategies published alongside the Treasury’s review into the costs of delivering net zero by 2050. Therefore, there is a lot to digest to distil the key points for business.

“Firstly, the Net Zero Strategy sets out a comprehensive roadmap for the low-carbon transition, including billions of new investment for nuclear, carbon capture and storage, hydrogen, heating, greenhouse gas removals and transport.

“However, while businesses will benefit from the additional funding announced for areas including electric vehicles and the development of technologies to help with fuel-switching, it appears as though there is very little additional support to help them cover the cost of their decarbonisation plans.

“Although the government has reiterated its support for the installation of energy efficiency and decarbonisation measures through the existing £315 million Industrial Energy Transformation Fund, businesses have told us that they would welcome additional incentives to help them invest in areas such as renewable on-site generation and energy efficiency.

“Similarly, the Heat and Buildings Strategy primarily outlines new funding packages to kick-start the replacement of gas boilers in domestic properties. For public sector organisations, the confirmation of a further £1425 million in funding for the Public Sector Decarbonisation Scheme is welcome, although we know that previous rounds have been hugely competitive.

“The Strategy states that, for businesses in England and Wales with larger premises i.e. those above 1,000m², the government has proposed to introduce a regulatory requirement for these buildings to obtain a performance-based energy rating based on measured energy data. Whether this will be incentive-driven remains to be seen.

“In short, businesses have told us that to make firm decarbonisation plans they need concrete policy to give them the confidence to invest, particularly at a time when the economy is still very much in recovery.

“If the last few weeks of wholesale energy price volatility have taught us anything, it is that reducing the reliance on fossil fuels through on-site generation and increasing energy efficiency are key actions businesses can take to increase their resilience. While these Strategies go some way to addressing this, there is still some way to go.”

COO at npower Business Solutions.

We will be taking a closer look at what each of these Strategies means for business in the coming days.