24 of the largest and most innovative electrotechnical manufacturing companies – are today announcing a major commitment to reduce their emissions to net zero by 2050.
The commitment will be unveiled at an event at One Great George Street marking the launch of a new report by BEAMA, the trade body for manufacturers and providers of energy infrastructure technologies and systems.
The Net Zero By Design report and an accompanying joint letter from pledge signatories warn that setting the net-zero target in legislation alone will not be enough to achieve net-zero. Investment in the low carbon sector to date has been impeded by the lack of stable and effective regulation, and national leadership is urgently needed to drive the rapid deployment of these technologies which will be crucial if the UK is to meet its international climate change commitments.
The report contains a list of policy recommendations on how the Government can spearhead growth in the electricity market and make the UK a world leader in new technology markets for smart flexible electrical systems – including more clarity about the future direction of regulation, reform of building regulations, a carbon price for heat, and reduced VAT for low carbon technologies.
The BEAMA report aligns closely with recommendations from the Committee on Climate Change, which published its own Net Zero paper arguing that while the technology is primed and ready to make this 2050 target feasible, it will only be reached through strong leadership from the Government.
Dr Howard Porter, CEO, BEAMA, said:
This is a cross party, cross industry, global coordination challenge at an unprecedented level – current markets for renewables and certain low carbon technologies essential for the energy transition, including storage, are struggling to gain the levels of investment needed to radically decarbonise our UK electricity infrastructure, buildings and transport system. This is a great opportunity to be grasped by UK Government and drive growth in the UK market.
Quotes from Industry
Mike Hughes, Zone President, Schneider Electric UK & Ireland, said:
Time is short and we need to act quickly if we are to combat climate change. At Schneider Electric we are fully behind the BEAMA initiative and support the UK government commitment to achieving a zero-carbon economy by 2050.
We believe that demonstrating the commercial viability of net-zero is key. Whilst switching to renewables and reducing the use of fossil fuels is critical, we cannot achieve net zero without also tackling waste. Our own research has found that 84% of business leaders are torn between the perceived cost of tackling waste and doing the right thing. Yet reducing a business’s energy use by 30% can equate to a 10% reduction in operating costs. The technologies exist today to reduce waste but much more needs to be done to incentivise, legislate and encourage behaviour change if we are to create a sustainable future.
Marc Overson, Mitsubishi Electric UK, said:
Strong, clear long-term policy signals and legislation ‘is a key driver for our business – Government need to limit business risk and in doing so, investment will move into the UK market. As of today, the UK Government is not reducing that risk and this does not warrant a significant shift in resources.
John Griffiths, CEO, Lucy Electric, said:
Lucy Electric is fully supportive of the aims of the BEAMA Net Zero campaign. Our business and the rest of the industry is working hard to manage the complex mix of new technologies, which is driving the decarbonisation of the UK’s electricity supply. But this must be supported by Government action. The industry needs a regulatory framework which reflects the Government’s green policy ambitions and enables innovation and the development of the marketplace, if we are to meet the UK’s Net Zero Emissions target.
Mark Wilkins, Vaillant, said:
We are very pleased to be supporting this event and the publication of BEAMA’s Net Zero by Design Report. The industry is committed to achieving the ambitious net zero by 2050 targets but needs the support of Government with a clear policy framework and pathway to make it happen.
Stephen Currier, Country Manager UK&I, Eaton, said:
In the UK and across Europe, wind and solar power will dominate electricity generation from the early 2020s due to powerful drivers including statutory requirements to meet the global Paris climate agreement, the falling cost of solar panels and wind turbines, rising carbon prices and the electrification of transport and heating. As a result, electricity supply will also be increasingly variable. To avoid resulting, higher system costs, flexibility must become the new cornerstone of the grid. This will require Governmental policies that provide the regulatory certainty needed to spur private investment in the flexibility technologies and business models needed to smooth out this variability, for example by aligning peaks in demand with peaks in supply of wind and solar power.
Neil Stewart, CEO, Glen Dimplex Heating and Ventilation, said:
For manufacturers like Glen Dimplex Heating & Ventilation, energy costs and fuel factors are key to determining future investment decisions. The cost per kWh of energy is largely policy dependent, and with the current disparity in the price of gas Vs electricity it is hard to see how we will incentivise a market for electrification. A trajectory therefore needs to be set by government for these values and factors, so that manufacturers can make confident investment decisions and fulfill their role in delivering the solutions needed to achieve net zero.
BEAMA is the UK trade association for manufacturers and providers of energy infrastructure technologies and systems. We represent more than 200 companies, from start-ups and SMEs to large multinationals. Our member’s products ensure low carbon energy and environmental services are delivered safely, securely and efficiently to UK homes, businesses, transport and grid networks. We support our members in ensuring that the UK has a strong electrotechnical industry that is recognised as an essential part of modern society and brings invaluable economic, social and environmental benefits.
BEAMA sector = £12.6billion turnover
Key recommendations include:
· Re-risk investment landscape – create market clarity through clear aligned regulatory reform and infrastructure planning
· Reform building regulations in the next 18 months to drive efficiency in buildings and phase our high carbon fossil fuel technologies
· Set a carbon price for heat
· Maintain and enhance financial incentives through reduced VAT rates for key low carbon technologies (this comes at a time when Government agree to remove existing reduced VAT rates for solar and storage)
· Increase enforcement of non-compliance of the building regulations
· Introduce urgent market reform to ensure the introduction of variable Time of Use Tariffs and retail market reform to drive the market for flexibility services in the UK
· Open the market to new energy services to help consumer transition to low carbon energy technologies in UK homes and create appropriate financial incentives
· Enable consistent spend and investment strategies for the supply chain delivering key energy system assets, alleviating existing spending pressures on network companies to enable net-zero
To view the whole report please click the link – Net-Zero By Design – Beama Report