The UK government should provide more funding for regular Contracts for Difference auctions as part of a green stimulus package for the economy, according to a report from the Renewable Energy Association (REA).
The REA report outlines key policies needed to achieve a successful green recovery in the country following Covid-19.
These include low-carbon power and heat generation in new homes and retrofit energy efficiency measure into existing homes, reform of the tax system – , particularly business rates and VAT – to enable the low-carbon transition, and funding for local authorities to take actions locally to meet net-zero by upgrading government buildings estates.
Creating low-carbon homes and reforming the tax system alone would create 176,000 new jobs, save consumers £270 on bills annually and generate a net value to the UK economy of £7.5bn, REA said.
It said: “These policies, if implemented, would bolster the economy through the creation sophisticated industries and supply chains boasting thousands of highly skilled jobs across the entire of the UK.”
REA chief executive Nina Skorupska said: “Renewable energy and clean technology have again and again proven to be versatile, secure and economically beneficial – this needs to be acknowledged and reflected in the post-Covid economic recovery.
“It is no longer enough to support a net zero economy in rhetoric alone, we must ensure that renewables are at the core of the recovery if we are to achieve the just and inclusive society the government has been referring to.
“The Prime Minister has already outlined the first stage of the recovery package, which was underwhelming and lacked details.
“This report therefore comes at a timely moment, serving to remind the government of the enormous opportunities that renewable energy and clean technology can offer them in their bid to deliver a green recovery.
“As 2050 approaches, the window to meaningfully address climate change becomes smaller and smaller.
“We ask the government to recognise this and adopt the policies outlined in the report during the Chancellor’s update next week.”
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