- Following the general election and the new labour government, the new Department for Energy Security and Net Zero Secretary (DESNZ) Ed Miliband released his top 5 priorities on 8 July 2024 which include clean power by 2030, setting up Great British Energy (GBE), creating jobs including in the North Sea and leading on climate action (domestically and internationally).
- At the Autumn Budget 2024, the chancellor made a series of announcements regarding sustainability. Firstly, the UK Carbon Border Adjustment Mechanism (CBAM) will be introduced on 1 January 2027 with five product categories at risk of carbon leakage which will provide companies with the certainty required to start their planning for the tax. Secondly, £3.4bn was announced over the next three years for the Warm Homes Plan, which the government has indicated will include grants and low-interest loans for home insulation, low-carbon heating, and home improvements. Thirdly, funding to kickstart GBE will include £25m to establish it as a company and £100m for capital funding in 2025-2026 for clean energy projects. However, the precise nature of how GBE will work alongside the National Wealth Fund remains unclear. Finally, some investments in specific technology such as Carbon Capture, Usage and Storage (CCUS), hydrogen and nuclear were announced.
- The Clean Power 2030 Action Plan was released on 13 December 2024 by DESNZ. The 138-page Plan outlines the steps the government will take to meet its target of achieving 95% of the UK’s electricity from clean energy sources by 2030. It offers a valuable roadmap outlining the anticipated deployment of various clean energy technologies up to 2030 and brings certainty to attract investment, as demonstrated by the government's projection that the reforms will spur £40 billion in annual private investment up to 2030. The upcoming Industrial Strategy (expected in June 2025) will outline a sector plan for clean energy industries.
- At the Spring Statement 2025, the government launched a consultation on the Climate Change Levy (CCL) for electrolytic hydrogen, seeking input on the best legislative way to remove the CCL costs, and on other related areas where CCL may need to be reviewed (see page here). The consultation closes on 7 May 2025.
- On 24 April 2025, HMRC released a technical consultation on draft legislation on UK CBAM (see page here). This consultation aims to refine the legislation to ensure it meets the policy intent, and will run until 3 July and is not a further consultation on the policy design. A wider “policy update” was published, summarising the key features of the new tax.
- Timing: this is a continuing area of development, so there is no specific timeframe for changes.
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