10 point plan sets out raft of green policiesnew funding and ambition announcements covering transport, hydrogen, energy efficiency, carbon capture, offshore wind, nuclear and green finance.
New Energy Policies
Prime Minister Boris Johnson launched the government’s much-trailed 10 point plan late on 17 November, with the full plan published on 18 November, setting out a series of new funding and ambition announcements covering transport, hydrogen, energy efficiency, carbon capture, offshore wind, nuclear and green finance.
The PM reiterated the previously announced 40GW by 2030 offshore wind target stating in the 10 point plan document,: “we will aim to deliver up to double the amount of renewables we procure through our next Contract for Difference (CfD) auction.” Allocation round three had a capacity cap of 6GW so this would suggest 12GW for the fourth allocation round.
The government will invest £160mn into modern ports and manufacturing infrastructure. It will also enable the delivery of 60% UK content in offshore wind projects, as set out by the industry, through more stringent requirements for supply chains in the CfD auctions.
The government is pursuing large-scale new nuclear projects, “subject to value-for-money”. To support this, it will provide development funding.
The PM announced a target to remove 10MT of carbon dioxide a year by 2030. This will be achieved by an extra £200mn in funding for carbon capture, usage and storage (CCUS) projects being added to the £800mn previously announced by the government. This extra funding will create two carbon capture clusters by the mid-2020s, with another two set to be created by 2030, with clusters likely to focus on areas such as the Humber, Teesside, Merseyside, Grangemouth and Port Talbot.
The PM said the UK would aim to generate 5GW of low carbon hydrogen production capacity by 2030 for industry, transport, power and homes. This will be supported by a range of measures, including a £240mn Net Zero Hydrogen Fund, and setting out next year, hydrogen business models and a revenue mechanism for them to bring through private sector investment.
To decarbonise building emissions, the government is targeting 600,000 heat pump installations every year by 2028. The recently launched Green Homes Grant is being extended by a year and the ECO scheme, which had been due to end in 2022, is being extended to 2026. Additionally, the government will seek to implement the Future Home Standard in the “shortest possible timeline” and will consult “shortly” on higher standards for non-domestic buildings.
For transport, the PM announced plans to end the sale of new petrol and diesel cars and vans in 2030, earlier than the previous target of 2040. Hybrid cars and vans that can drive a significant distance with “no carbon coming out of the tailpipe” can be sold until 2035.