The UK government launched a suite of policies on Thursday aimed at boosting investment in climate technology, but the measures fall short of their US equivalents. Among the measures are plans to cut emissions to net zero by 2050, along with an extension of the voucher programme for heat pumps until 2028, funding for carbon capture and storage, hydrogen and a new body to promote nuclear power. However, the $369bn of the US Infrastructure Investment and Jobs Act is conspicuously absent. The Great British Insulation Scheme expands the number of eligible upgrade funding to 300,000 of the draftiest UK homes. The government also plans to lower electricity costs by the end of next year. The policies are part of the UK’s “Green Finance Strategy”, which aims to stimulate economic growth and encourage the development of climate tech businesses to compete with the EU’s Green Industrial Plan and the US IRA. G20 nations are now required to report climate-related financial risks by law.
In other news, investors are demanding more green bond options as they welcome greater regulation and reduced reliance on credit ratings firms. A European Wind Energy Association report showed the sector’s performance in 2022 was 15% below forecast, although offshore turbines performed better than their onshore equivalents. Electric vehicle (EV) results in Q4 of 2021 show Tesla dominating the sector with 4.6 times the EV sales of its nearest competitor. The global energy investment needed to achieve the goals of the Paris Agreement must quadruple by 2030, reaching $5tn, according to the International Renewable Energy Agency.
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