On Tuesday 22 March the CBI’s Decarbonisation Council held its first meeting of the year, against the backdrop of the energy security crisis and response to Ukraine. The CBI’s Chief Economist, Rain Newton-Smith, opened the session with a political and economic update from the last quarter, including the CBI’s immediate role in responding to Ukraine and it’s work in convening business support.
The Council welcomed Greg Hands, Minister of State for Business, Energy and Clean Growth. In his opening remarks Minister Hands gave an overview of the government’s reaction to the ongoing energy crisis and the upcoming Energy Security Strategy. In his comments he recognised that net zero is part of the solution, outlining three government priorities for achieving energy security:
- Securing the ongoing production of UK hydrocarbons,
- Delivering the UK’s renewable energy ambitions by overcoming barriers to delivery,
- Extending beyond the current pipeline of nuclear energy.
Following Minister Hands remarks, the Council proceeded to discuss the opportunities and delivery barriers for securing UK energy security in the context of net zero. Key barriers identified by Council members included: coordination cross all levels of government but in particular the key role of local government in delivery, absence of net zero mandates for regulators, and slow progress on the energy efficiency agenda. Council members concluded that policy clarity and certainty is vital to securing the necessary levels of private sector investment.
The CBI will work with the Decarbonisation Council, with support from the Decarbonisation Working Group and wider membership, to respond to and deliver the government’s Energy Security Strategy. If you would like to provide feedback on the strategy, please contact Amie Jones.
