OVERVIEW
The UK energy sector’s commitment to decarbonisation is in a very healthy state. Some 88% of energy suppliers and investors have either maintained or ramped up their decarbonisation goals in the last 12 months, with over a third (35%) reporting a significant acceleration in their plans.
Decarbonisation commitment
This change in pace is driven by a combination of the continued pressure to hit net zero targets and the availability of UK government support.
Meanwhile, 86% of commercial consumers say that decarbonising their operations is important or very important to their business, with 69% confirming they are progressing or have advanced decarbonisation plans in place.
These positions are largely driven by a strong focus on environmental protection, cited by 58% of respondents.
Additionally, 36% highlighted the moral imperative of doing the right thing, and another 36% pointed to the operational efficiencies decarbonisation brings - all in all, an approach which allows firms to tick both ethical and financial boxes.
Energy suppliers and investors maintained or ramped up their decarbonisation goals
Decarbonising operations important to commercial consumers
Driven by a strong focus on environmental protection
Transition concerns
When it comes to what is keeping investors and suppliers up at night, the UK faces a diverse mix of challenges, much like those at a global level, pointing to an international industry confronted by issues from all sides. While market stability is the top concern worldwide, it is lower on the UK’s worry list. Instead, regulation (including permitting) takes the top spot, followed closely by workforce challenges and infrastructure and operating costs.
Political change
Interestingly, UK respondents were far less concerned about the potential for the phasing out of incentives and UK government support than those from other parts of the world. This is a likely reflection of the commitments we have now seen from the new UK government, underlined by the fact that 57% of all those we surveyed are confident that the new administration indicates a strong intention to sustain momentum on energy transition throughout its term.
However, there are many areas where the energy sector is hoping to see more from the UK government in terms of legislation and regulation. Over half (52%) of suppliers and investors put funding of grid upgrades at the top of their wish list, followed by policies to accelerate EV (electric vehicle) use (50%) and the circular economy (49%).
We also asked all respondents which policy actions they thought would be most effective in driving energy transition. The majority of investors and suppliers indicated that the implementation of stricter carbon emissions regulations is likely to have greatest impact on the acceleration of energy transition, while most commercial consumers want to see funding for clean energy research and development.
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