UK’s ‘Green Day’ plans in doubt as reports suggest they could be watered down
The UK’s response to America’s mammoth subsidy package for renewable projects has been thrown into doubt today, after reports suggested that the planned energy policies could be watered down or pushed back to later this year.
The government was set to unveil a host of new policies tomorrow, in what has been coined ‘Green Day’, to rival the US Inflation Reduction Act and President Joe Biden’s $368bn subsidy package for low and zero carbon energy projects, which experts have warned risks drawing huge amounts of green investment away from the UK.
However, reports this morning say that the plan won’t be fully outlined until the autumn.
Both the Treasury and the Department for Energy Security & Net Zero didn’t immediately respond to requests for comment.
City A.M. understands, however, that Grant Shapps is set to make an announcement tomorrow, rather than the prime minister, with Hull touted as a potential venue. Originally, Sunak was going to unveil the plans in Aberdeen – the heart of the UK’s energy industry.
One industry source told City A.M. that there will be no movement on planning reform for onshore wind.
The source also said that the UK’s energy regulator Ofgem won’t be given greater powers to drive renewable energy production and discipline companies that fail to meet renewable targets.
Another industry source told City A.M., however, that plans to boost nuclear power projects, as well as small modular reactors, are set to be unveiled tomorrow.
A major delay or dilution of the plans would be a blow to the UK’s green industry, which hoped Britain would respond robustly to the challenge of vast US and EU subsidies.
City A.M. understands that the government is separately set to deliver its response to Conservative MP Chris Skidmore’s net zero review tomorrow, after judges ruled last year that the plans lacked sufficient detail.