- The Autumn statement had climate-friendly pledges, but few details
- Investment in energy efficiency will double with an aim to reduce energy consumption by 15% by 2030
- The energy levy will rise from 25% to 35% and has been extended to include power generation firms
Laura Hoy, Equity and ESG Analyst at Hargreaves Lansdown:
“It was encouraging to see Jeremy Hunt address the underlying issue of energy efficiency in the UK with a pledge to double the government’s annual investment and decrease consumption by 15% by 2030. A new energy efficiency task force will be set up to determine exactly how to funnel the additional £6bn pledged to the projects that need it most. However, judgement on whether or not these programmes are adequate to truly make a dent in the necessary refurbishments around the country will be reserved for their unveiling.
The windfall tax has also been accelerated and extended as the government looks to the energy companies riding high on ballooning oil prices to plug its budget shortfalls. However the increased tax rate does little to combat the loopholes that allow oil and gas companies to duck their tax obligations by reinvesting in new projects. The eco-credentials of those projects aren’t tied to these breaks, so there’s no added incentive for reinvestment in green energy instead of handing those funds over to the government.”
