Climate and Sustainability - UK Budget
2024
🍁 2024’s perspectives on the UK Autumn Statement from the lens of climate change and sustainability.
▪@Accountancy Age
· The UK government’s Autumn Budget 2024 has placed a strong emphasis on sustainability, with significant funds directed towards green investment initiatives and energy efficiency.
· A significant boost of £120m (US$155m) has been allocated to the Green Industries Growth Accelerator (GIGA) fund, which aims to support the development of supply chains for new technologies, including offshore wind and carbon capture and storage.
🔗 https://www.accountancyage.com/2024/10/31/budget-snapshot-the-green-agenda-that-looks-beyond-the-tax-breaks/
▪Business Green
· Government plans £4.5bn green manufacturing boost from 2025
🔗 https://www.businessgreen.com/news/4148100/government-plans-gbp-5bn-green-manufacturing-boost-2025
▪Climate Bonds Initiative
· The correct risk/return profile will help unlock finance for climate projects within the UK, overcoming the current mismatch between financing needs and investor appetite. It would be further enhanced if the National Wealth Fund were to work in concert with other UK bodies such as BII and UK Export Finance.
· The budget included pledges for dedicated resilience investment, including GBP2.4bn in flood defences and GBP400m for nature-based resilience. This direct public funding is crucial and such activities could also be included in the green gilt framework to signal to the market how green gilts can finance resilience.
🔗 https://www.climatebonds.net/2024/11/uk-budget-what-does-it-mean-sustainable-finance
▪IIGCC
· Capital budgets will be set for five years and extended at every two-year spending review, promising greater policy certainty and clarity.
· New funding set out for green technology in 2025-2026
· Reinstatement of climate as a priority for the Bank of England
🔗 https://www.iigcc.org/our-work
▪CETEX – LSE
· There are some positive steps in opening investment for clean growth, but the budget’s day-to-day tax and spending decisions do not reflect the need for bold, holistic action on climate.
🔗 https://www.lse.ac.uk/cetex/publications/wins-losses-and-draws-a-climate-review-of-the-uks-autumn-2024-budget/
▪Carbon Brief
· The budget confirms the introduction of a carbon border adjustment mechanism (CBAM) from 2027, to support emissions cuts in sectors such as steel and cement, and ensure that the UK remains competitive when trading these products globally.
🔗 https://www.carbonbrief.org/uk-autumn-budget-2024-key-climate-and-energy-announcements/
▪The Construction Index Ltd.
· Changes to fiscal rules were announced with £100bn to be spent on capital projects over the next five years.
· Commitment given to the East West Rail scheme (Oxford-Milton Keynes-Cambridge) and the Trans Pennine Upgrade to improve rail journeys between York, Leeds and Manchester, key road projects impacted.
🔗 https://www.building.co.uk/news/autumn-budget-2024-key-measures-for-construction-at-a-glance/5132492.article
🔗https://www.theconstructionindex.co.uk/news/view/more-road-projects-axed-to-save-13bn
▪Green Alliance
· The Department for Energy Security and Net Zero will see its capital budget rise by up to 25 per cent in real terms over the next five years.
· As well as the extra £100 billion in capital investment, the chancellor confirmed the setting up of GB Energy and the National Wealth Fund to channel some of this money into net zero projects.
· There was also confirmation of funding for new, multi-year investments in carbon capture and storage (CCS), and funding will be provided for 11 new green hydrogen projects across England, Scotland and Wales.
· A crucial £200 million per year of new capital will be invested over the next two years in tree planting and peatland restoration. Nature’s recovery depends on changes to the 70 per cent of UK land that is farmed, and the food system will emerge in the 2030s as the single largest source of emissions.
🔗 https://green-alliance.org.uk/wp-content/uploads/2024/10/Did-the-2024-budget-deliver-for-the-environment.pdf
▪UKGBC
· The £2.4 billion towards flood resilience is welcome, but this must include upgrading our existing buildings and future-proofing new ones to protect communities across the country from the impacts of flooding.
· The Department for Transport’s overall budget was reduced by 2.5 per cent. Transport can be an engine for clean growth with the right investment and incentives, through stronger public transport links at a local, regional and national levels. It opens access to opportunities in education, work and leisure, while active travel can boost the nation’s health and save money for the NHS.
· Investing in bus services is the quickest route to getting more people using public transport so the £1 billion allocated for buses is a welcome move. While an additional £100 million investment in cycling and walking infrastructure in 2025-26 is positive, there is a worrying long term trend where the cost of lower carbon public transport increases faster than the cost of driving a petrol or diesel car.
· The budget recognised electric vehicles (EVs) and their supply chain as a key sector for the industrial strategy due to be published in the spring.
· Reflecting the importance of the government’s mission to make Britain a clean energy superpower, the Department for Energy Security and Net Zero saw the biggest increase of any government department in its capital spending budget. It is set to grow 22 per cent annually over the next two years. The chancellor also confirmed a series of investments in low carbon energy and industrial projects. This included confirmation of CCS cluster funding, amounting to £3.9 billion in 2025-26, paid by the government (ie all taxpayers, not just energy bill payers). This budget has laid the groundwork for the major investment needed in clean power generation, electricity transmission, carbon capture and green hydrogen.
· In its budget settlement for the Department for Energy Security and Net Zero, the government committed to £3.4 billion for the Warm Homes Plan between the financial years 2024-25 and 2027-28.
🔗 https://ukgbc.org/news/ukgbc-responds-to-the-autumn-budget-2025/
▪CIOB
· In addition to taxation decisions that will impact industry, there were several investment measures announced targeted at constructing, re-building and maintaining the built environment across a range of construction sub-sectors. However the Budget was not without its drawbacks for construction.
🔗 https://www.ciob.org/blog/uk-autumn-budget-2024-key-announcements-for-the-built-environment
▪CIEEM
· £58 million across two years for research and innovation in support of climate resilience and net zero goals from Defra budget.
· Infrastructure and housing development, which includes boosting nature recovery, is allocated £70 million in 2025-26. This includes £14 million for the Nature Restoration Fund to offset the environmental impact of development, with a developer contribution, and £13 million to expand Protected Sites Strategies in priority areas.
· Local government too get an increase in funding with an increase up to £14.3 billion, including £1.3 billion in new grant funding. This is a 3.2% increase for local government. The national governments of Scotland, Wales and Northern Ireland are all getting more money as well (£47.7 billion, £21 billion and £18.2 billion respectively).
🔗 https://cieem.net/whats-in-the-autumn-budget-for-nature/
Opportunities
· Cross Industry detailed plans required on transitioning faster to a netzero, biodiversity positive future.
· Climate tech in the built environment sector needs direct investment to aid this transition.
· A move beyond promises of spending and private capital expenditure to better connect policy infrastructure.
· Clearer risk/return profile for climate investments.
#summary #budget #climatefinance #climatetechnology
2023 Review
🍁 Interesting #perspectives on the 2023 UK #autumnstatement from the lens of climate change and sustainability.
▪ @Business Green
· 4.5bn for strategic manufacturing sectors (investment in automotive sector, aerospace, life sciences) including 960m Investment in ‘green industries growth accelerator’ suggested by 2030, will come online in 2025 – used for carbon capture, electricity networks, hydrogen, nuclear, offshore wind.
· Key Investment zones named for focus on green industries and advanced manufacturing.
🔗 https://lnkd.in/eyvmP63K
▪Carbon Brief
· Grid constrains considered a major challenge for decarbonising the energy sector and holding back the expansion of industry – reform to grid connection to cut waiting times and connect sooner announced. Battery strategy yet to be detailed.
· Full expensing of capital allowances announced as part of facilitating strategy towards a low carbon industry which tends to be capital intensive.
🔗 https://lnkd.in/eB5g9RCH
▪The Construction Index Ltd
· Funding for planning backlogs in LPA’s announced with a consultation on streamlining the planning system.
· No update to the National Infrastructure Strategy which will influence signing off on new investments in skills and capacity.
· Incentivisation of investment to retrofit still needed with a national retrofit strategy.
· Investment in apprenticeships for sectors such as engineering announced but unclear on others that industry traditionally relies on.
🔗 https://lnkd.in/eVvebXp3
▪Green Alliance
· Energy efficiency and insulation requires mention and details.
· Limited mentions of nature and biodiversity markets -still required.
· Not much on climate resilience and adaptation beyond flood defence schemes.
🔗 https://lnkd.in/eUsjii5S
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Potential Opportunities:
· Businesses still need clear plans against the global climate picture– value of ecological impact on health and well-being as part of business resilience.
· Detailed Strategy that considers sector cross overs, integrated thinking and full systems scale impact such as on supply chain, local communities and climate skills gap important - 'hashtag#design' a key component to find efficiencies/links and build partnerships to make the most of what is outlined.
Check out the statement in full.
#summary
