REA report reveals ‘significant challenges’ to meeting UK net zero goals

The REA (Association for Renewable Energy and Clean Technology) has published its annual ‘state of the industry’ report, REview23, revealing that the UK’s energy transition is facing ‘significant challenges’ that are delaying the roll out of low carbon technologies across all sectors.

The report, which presents the latest deployment and employment figures for the renewable energy and clean technology industry, shows that while progress on renewable power remains positive, until supportive government policy measures are forthcoming for heat, transport and circular bioresources, it will continually be a challenge for the UK to meet its legally binding net zero commitments.

The report highlights that the energy transition is as much an economic opportunity as an environmental imperative. The industry is currently on track to support more than 210,000 jobs by 2035, with the market value doubling from 2022 at £23bn to £46bn by 2035. However, political uncertainty and rolling back on green policies has meant that renewable developers are hurting, and international investment risks going elsewhere.

As highlighted in last year’s report, jobs are found across the country, although numerically, much of the industry is currently weighted towards London and the South East, reflecting a trend across the economy. However, our modelling shows that consistent and proactive support from the Government – for example, more use of Supply Chain Plans – could see future jobs and investment distributed more equally across every region and nation of the UK. The North East could see a 111% increase in market value by 2035, the North is projected to support around 30,600 jobs with another 12,700 jobs held in Yorkshire and the Humber. Harnessing the potential of all regions of the UK and accelerating deployment of all clean technologies is essential.

Dr Nina Skorupska CBE, chief executive of the REA (Association for Renewable Energy and Clean Technology), said:

“The urgent need to unlock policy and investment blockages is clear throughout REview23, which shows that in 2022, only 14% of the UK’s total energy consumption came from renewable sources across heat, transport and power according to government statistics. Even though it has been proven countless times that the energy transition is as much an economic opportunity as an environmental imperative, our sector still finds itself having to overcome naysayers time and time again.

“REview23 projects that thousands of new jobs and billions of pounds will be added by the sector by 2035, and these figures could be even greater should the government deliver the right support. Of course, these numbers are by no means guaranteed if the government continues to provide patchy and unreliable policy. We are clear, tackling climate change and boosting our economy is not an ‘either-or’ decision. In fact, it goes hand in hand. I would urge the government to recognise the opportunities on offer for our country and finally match their warm words with action.”