As the UN General Assembly continues and ahead of the UK-hosted COP26 climate summit, the UK Government has introduced a new investment in which businesses will be able to bid for a share of £200m.
Businesses in some of the UK’s most polluting and energy-intensive industries will be able to bid for a share of £200m to help cut their carbon emissions and the costs of their energy bill.
This move comes following the government’s announcement in April that it aims to cut the country’s emissions by 78% by 2035 – the world’s most ambitious climate change target. It aims to build a more secure, home-grown, and clean energy sector to reduce its reliance on fossil fuels and exposure to volatile global wholesale energy prices.
The new investment will support green projects that help businesses across England, Wales, and Northern Ireland clean up their industrial processes, improve their energy efficiency and reduce their carbon emissions.
The energy industry is expected to be producing 16% of the UK’s emissions today and will need to cut emissions by two-thirds over the next 15 years in order to set the UK on the path to ending its contributions to climate change by 2050.
The government believes that this new investment plays a crucial role in helping big-emitting industries to clean up as part of the UK’s green industrial revolution, by decarbonising their industrial processes and reducing their reliance on fossil fuels such as gas.
Prime Minister Boris Johnson said: “With innovation and investment across the economy, we can power the UK’s green industrial revolution. But we know for the most polluting and energy-intensive businesses, this will mean a big shift in the way they operate.
“That’s why we’re putting £220m more into helping them cut their carbon emissions, bring down their energy bills, and support good jobs – creating a sustainable future as we build back greener around the country”.
This new investment is part of the Industrial Energy Transformation Fund (IETF) – it will support the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.
Business and Energy Secretary Kwasi Kwarteng said that, through this new fund, the government is “stepping up efforts to clean-up industry as we transition to a low-carbon economy.
“Not only will this major investment support energy-intensive industries to cut pollution, it will help companies save money on energy bills and support jobs as we fight to ensure British industry remains globally competitive”.
A total of £289m has been made available through both phases of the IETF, with the deadline extended to 2025.