COP26 progress in ‘jeopardy’ from UK government failings

Victory Hill CIO says the UK government lacks coherent and workable policies to achieve net zero

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Richard Lum, CIO, Victory Hill Capital

It is November 2020. A global pandemic has swept across the UK, the economy is limping along on government-backed crutches, and the country needs some hope. Prime minister Boris Johnson talks of plans to “build back better”, to bring “green and growth” together and transform the UK’s energy system.

Fast forward to today, and we have seen little evidence of the much-hyped 10-point plan being put into action, nor of any plans to launch the promised “green industrial revolution” that Johnson made such noise about last autumn.

Given the urgency of the global situation it is hugely important the UK government steps up to provide the leadership it had assured the country, indeed the world, it would provide. It is vital if we are to make inroads into the work needed to limit the ongoing damage being wreaked on the climate and the environment, but also to build a more resilient energy system that can sustain the country.

Instead, we have a government that, in the words of Lord Deben, chair of the independent Committee on Climate Change, is putting hopes of progress at this year’s COP26 – which the UK will host – into jeopardy due to its own lack of coherent and workable policy to achieve net-zero targets.

How can we lead the world in efforts to decarbonise economies and build a better, more sustainable future if we cannot show that we are doing it here at home, and doing it well?

The UK has the expertise and knowledge needed to lead the world when it comes to building sustainable energy systems, but with a leadership set on offering empty slogans rather than concrete action it is difficult, if near impossible, to map out a way of bringing these efforts together.

Decisive action

We need the government to take the lead on sustainable energy and provide a clear vision to guide manufacturers, developers, and investors, to bring supply chains in line and ensure the infrastructure needed to build out the UK’s energy system is put in place.

Strong guidance from the top echelons on where, what, and how we are to develop the infrastructure needed to support a sustainable energy system will be vital. A cohesive plan, where each party knows what is needed and when, is the only way to ensure a successful roll out of renewable energy that can be effectively used.

This guidance could, some argue should, take the form of actionable policy. By legislating in areas such as, to use one example, the use of hydrogen fuel for heavy goods vehicles, the government can help support the demand needed to keep the energy plants of the future operational. Without the promise of strong future demand, many initiatives risk falling at the first hurdle and fail to reach building stage, or risk falling out of use. With government commitments to support sustainable energy projects and expand the market for innovative energy solutions they stand a far better chance of being effective over the long term.

Government support to reassure developers that their efforts will not go to waste would also provide the push and encouragement needed to support the research into new technologies, and into repurposing older tech for new, more sustainable, use. The UK has the skills and knowledge needed, but lacks the guidance and top-level vision to unlock this potential.

Ambitious targets

The UK has some of the most ambitious targets for reducing carbon emissions. In April this year the prime minister announced that the commitment was to reduce carbon emissions by 78% on 1990 levels by 2035 – bringing forward the target by around 15 years.

See also: – Pressure mounts on UK government to roll out net-zero strategy ‘as soon as possible’ – ESG Clarity

However, without taking immediate action and leading on the issue, particularly with COP26 fast approaching, the UK will likely falter in its ambitions to become carbon neutral. It also risks losing out on the chance to lead the world in the battle against climate change and the quest for sustainable and effective energy solutions.

The end goal is clear and government targets are world-leading, but how exactly we achieve these lofty goals remains clouded by uncertainty and the action taken by government is far from offering the true global leadership that is needed, and which has been promised. We need to see policy-making, real action, and true leadership, and we must get it urgently.

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