UK Government backs clean growth in new Industrial Strategy plans

On Monday, the UK Government unveiled its Industrial Strategy, a new plan to boost the economy by embracing new technological opportunities and prioritising clean growth opportunities. 

Throughout the strategy, the Government identified four so-called ‘Grand Challenges’; artificial intelligence, an ageing society, the future of mobility and clean growth.

However, the report states that the move to cleaner economic growth through low carbon technologies and the efficient use of resources is at the same time “one of the greatest industrial opportunities of our time” estimating that the UK’s clean economy could grow at four times the rate of GDP.

Smart systems for affordable and clean energy across the power, heating, and transport sector will be some of the priority action areas of the Government.

Towards this goal, a new programme entitled ‘Prospering from the energy revolution’ will be launched where local smart energy systems will be developed and action on the smart meters rollout will be enhanced.

Nuclear and offshore wind will still be in the centre of the country’s low-carbon energy policy, as the government pledges to pursue further opportunities for clean heating and potential uses of hydrogen.

Construction, one of UK’s strongest industries, will also play a pivotal role under the new ‘Transforming Construction’ programme, which will focus on sustainable and efficient buildings.

£162 million will be invested in innovation for low-carbon industries and in developing a new strategy for the bio-economy with the ultimate goal of making the UK’s energy intensive industries competitive in the clean economy.

The new ‘Transforming food production: from farm to fork’ programme aims to boost sustainable agricultural practices, by increasing incentives for producers to embrace innovative technologies and techniques.

Regarding sustainable financing, the new Industrial Strategy provisions the establishment of a new Green Finance Taskforce, which along with the British Standards Institution and the City of London’s Green Finance Initiative will work towards developing the world’s first green financial management standards.

As for the ‘Future Mobility’ challenge, the Government repeated the measures announced in last week’s Autumn Budget, which include multiple investments in clean mobility: £400 million Charging Infrustructure Fund and a £100 million Plug-in Car Grant. 

In addition, it will focus on the development of an updated regulatory framework that will encourage “new modes of transport and new business models” and will promote new mobility services such as journey-sharing by “blurring the distinctions between private and public transport”.

Theresa May, UK Prime Minister said the Industrial Strategy “will help propel Britain to global leadership of the industries of the future - from artificial intelligence and big data to clean energy and self-driving vehicles” “As we leave the European Union and forge a new path for ourselves, we need to focus on building a better future for our country and all the people who live in it”.

Hugh McNeal, RenewableUK Chief Executive expressed disappointment that the Industrial Strategy does not mention onshore wind, wave or tidal energy.

He said: “Renewables are set to become the backbone of our modern energy system and the plummeting cost of wind power means onshore and offshore wind can help improve the competitiveness of UK industry”.

“We are exporting our skills and knowledge worldwide, winning multimillion-pound contracts in wind and marine energy – if this industrial strategy fully supports these world-leading sectors, it can drive growth across all parts of the UK and create tens of thousands of high-value jobs”.

You can access the full 255-page “Industrial Strategy: Building a Britain fit for the future” here.