NEWS UPDATE
Nearly 62% of UK businesses unaware of energy efficiency support schemes
A recent survey of 503 UK businesses shows that 62% are unaware of government energy efficiency support schemes, with 47% deterred by cost concerns from investing in green upgrades. The survey conducted by IPSOS has revealed insights into the attitudes of UK businesses towards sustainability and energy efficiency. The findings indicate that while over one-third of businesses prioritise these aspects in their budgets, others are deterred by concerns over costs and lack of information. The survey highlights that almost 62% of businesses are unaware of government support for energy efficiency upgrades. Despite this, nearly 41% of businesses believe retrofitting buildings can be beneficial. Additionally, approximately 48% consider sustainability important to their customers, with larger businesses showing a higher level of interest.
Cost concerns emerged as a
significant barrier, with 47% of businesses indicating that they are deterred from investing in green upgrades due to financial constraints.
Nikki Flanders, MD of SSE
Energy Customer Solutions, GB and Ireland, said: “It’s clear that industry and government need to do more to enable businesses to engage in net zero. There are over five million micro-businesses in the UK employing less than ten workers; decarbonising the UK economy requires more than a one- size-fits-all approach and must recognise what different business cohorts need to make progress. “Cost is an understandable concern for small business owners but a good starting point is to reduce energy consumption and emissions, often requiring simple and minimal changes, starting with information about energy consumption. “We need to do more to spread that message and information through the business community and challenge any misconceptions that every action to reduce emissions is costly.”
10 NORTHERN IRELAND Catching up on climate change
A new power-sharing government has been set up in Northern Ireland, after the region was effectively run by civil servants for the past two years. Although Northern Ireland has a Climate Change Act, including a net-zero target, it has a lot of climate policy to “catch up on” after two years of stagnation, warns Dr Viviane Gravey, a senior politics lecturer at Queen’s University, Belfast. “We don’t have our climate plan, supposed to be published in 2023, nor our environmental strategy. We don’t even have our statement on environmental principles.“ These were not able to be put in
place “because ministers were not there, and civil servants could not just produce policies that have such a big impact,” she adds. Without these “central pillars,” Gravey says that Northern Ireland is “really not in a position right now to actually deliver on any targets, because we don’t even
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know what the targets really are.” Gravey said there is a “glimmer of hope” that the new minister – Andrew Muir – will tackle climate and environmental issues, but “whether he is going to manage to actually deliver on that, who knows?” Without action on climate change
in Northern Ireland, there is a risk that the region could “hold the UK back”
when it comes to meeting its target of net zero emissions by 2050. But the return of power-sharing means there is at least “some chance of getting something done,” she adds. “The last time we had a government, from 2020 until 2022, was a moment of hope and, finally, we had action on climate change. Now the question is: Will we be able to get action again?”
New zero economy grew by 9% last year
The UK’s net zero economy grew 9% in 2023, according to a new report commissioned by the Energy and Climate Intelligence Unit (ECIU), with analysis provided by CBI Economics and The Data City. The total gross value added (GVA) by businesses
involved in the net zero economy now stands at £74 billion. This is in contrast to stagnation in the wider economy with GDP growth at just 0.1% in 2023. But CBI Economics is warning that without further investment and policy stability, the strength of future growth is in jeopardy as the US and EU compete to attract and develop clean industries.
The analysis found that jobs in the net zero economy are highly productive, generating £114,300 in economic activity, more than one and a half times the UK average of £72,550. They are also better paid by almost £10,000, the average net zero salary being £44,600 compared to the £35,400 UK average.
Scotland, Wales and the Midlands have particularly
strong net zero economies with London having the lowest proportion of its economy based on businesses in net zero sectors. Some areas with particularly high concentrations of net zero activity are amongst the most deprived in the country, for example, Hartlepool, Nottingham, Redcar and Cleveland are among the top 10% local authorities for income deprivation in England.
Louise Hellem, chief economist at the CBI, comments: “The UK’s transition to net zero brings immense opportunities for our economy. Our report, together with the Energy and Climate Intelligence Unit, highlights how businesses are already seizing those prizes – creating jobs and attracting investment, whilst boosting our energy resilience. But we also know that there’s much work to be done to fulfil the UK’s potential, and accelerate our journey to net zero.”
Proposals to change UK emissions trading
The UK Emissions Trading Scheme Authority is consulting on proposed amendments to enhance the fairness and proportionality of civil penalties within the Greenhouse Gas Emissions Trading Scheme Order 2020. This replaced the requirements for companies involved with the original EU emissions trading scheme, following the 2016 Brexit vote. The first proposed change seeks to
standardise the punitive element across three specific penalties. The second amendment focuses on penalties
related to under-reporting emissions. It suggests revising the penalty calculation, particularly for medical and other smaller emitters, to align more closely with the fines for major UK ETS participants. The third proposal seeks to ensure an
appropriate and equitable inflation rate is applied to penalties. Lastly, the fourth amendment aims to ensure consistency in fines for not surrendering a sufficient number of ETS permits. Collapse in the trading price of
the EU ETS, which has almost halved
from its peak of over €100 per tonne, has seen the UK scheme restoring near equivalence in pricing. This has lessened pressures upon UK companies to face surcharges under the new European Carbon Border Adjustment Mechanism. However, the pioneering EU mechanism has got off to a slow start. Obligated companies were required to submit reports quantifying the emissions of their imports by the end of February. Only 13,000 met that deadline and just 14% of those were eligible.
EIBI | MARCH 2024
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