The UK Government has been warned that without committed plans to reduce greenhouse gas emissions the UK will see its green industry sector falling behind other parts of the world.
Both the US and Europe have already got incentives in place that are boosting their own green technology sector. Areas within the UK that need an increase in planning and investments include batteries, carbon capture, wind turbines and hydrogen.
The government has also been warned by its own politicians of the US’s Inflation Reduction Act which contains a $369 billion green incentives bill. The EU has already stated that it may cause their state aid laws on tax credits to be loosened. Which will affect green investments within Europe.
The worry for Britain is that companies will now find that they are in a ‘subsidy arms race’ with the US, companies look for the best country to expand their green growth. In the UK there are currently 20,000 businesses that are a part of the UK’s ‘net zero economy’. These 20,000 businesses contribute around £71 billion into the UK, and these US incentives could see part of this money move into the US economic market.
Chris Stark, the head of the UK’s Climate Change Committee has stated that there is a: “risk for us is that capital will flow to that area.” Where more advantageous green incentives are on offer.