MPs are piling pressure on the government to compete with rival markets for green investment, amid growing concerns the UK could lose out to the US and EU unless it offered a more attractive climate for renewable energy projects.
Shropshire Conservative MP Philip Dunne urged ministers to “act now” to ensure the UK’s global net zero standing was not “eroded” by companies heading overseas.
The environment audit committee chairman told City A.M.: “Other countries are offering impressive incentives for investment. The UK risks losing immense talent if it fails to make the UK an attractive place for innovators to invest and spur green growth.
“The UK cannot allow its net zero standing in the world to be eroded, with UK innovators attracted by overseas incentives. These vital demand signals are needed urgently.”
Meanwhile, Alexander Stafford, Rother Valley Tory MP and BEIS Select Committee member, said the UK could not become complacent about its leading role in renewable projects.
He said: “The UK, which is unquestionably a world leader in green energy projects, must work hard to ensure we stay the torchbearers of global green projects.
“There are elements of these funding regimes that the UK should also look to emulate.”
Peter Aldous, Conservative MP for Waveney, said the UK risked missing its net zero goals unless it matched EU and US plans for subsidies and tax breaks.
He said: “The UK needs to stay competitive to keep growing net zero investment, which is the best route to a more productive, resilient economy with better-paid jobs.”
Aldous argued Biden’s legislation had “accelerated the global race to net zero” and posed a “challenge” to UK competitiveness.
The MP urged the government to deliver a set of fresh incentives to invest, from planning reforms and investment relief for renewable energy projects in line with the oil and gas allowance and “backing emerging sectors like sustainable aviation fuel earlier than other nations”.
“We can still lead by ensuring the UK is the best place to invest in clean industries and technologies,” he stressed."