Skip to main content

International Investor Magazine Summer 2020

Page 55

3. Investing in clean energy

5. The UK automotive sector already

infrastructure, especially in offshore

supports over 100 000 jobs and low-

wind and electricity grids, can support

carbon investment in electric vehicles

green jobs. 28 000 jobs, including in

(EVs) and EV infrastructure could help

manufacturing could be supported in

support further growth. Currently, the

TO PAY FOR THESE INVESTMENTS, MAJOR, WELL-DESIGNED NEW POLICY INITIATIVES ARE NEEDED TO RAISE THE REQUIRED PUBLIC FUNDS.

raising the UK’s offshore wind capacity

sector is characterised by job substitution,

While the recently announced UK ETS is

f rom 8.5 GW to 40 GW. The sector is

where workers with skills to produce

a good starting point, it is unlikely to raise

already market-driven, but current

petrol/diesel vehicles can transfer these

sufficient revenue in the short term unless

contracts for difference (CfDs) can be

to EV assembly, supporting around

a high price floor is implemented. Other

widened. Government can play a key

11 000 jobs by 2030. New jobs can be

mechanisms, such as carbon obligations,

role in redistributing the co-benefits,

supported in complementary sectors:

could be used to shift costs onto the

by strategically choosing production

batteries and charging infrastructure,

private sector. Ultimately a balance of

locations in underdeveloped regions.

with an investment need of over £1

these tools will be required to raise funds

To support these larger power sectors,

billion annually, can support around

in the short term and yield the more than

investment in transmission and

5500 jobs, and these sub-sectors are

£90 billion of net annual benefits to the

distribution is also required, which has

especially interesting for creating a

UK.

its own capacity to support jobs and

competitive advantage internationally.

economic activity. Investing in over-

Additionally, creating a viable battery and

capacity of electricity grids is a smart

charging infrastructure sector will have

strategy for future grid development.

a positive spill over on EV producers to boost production, without having to use

4. Carbon Capture and Storage has the

subsidies or other incentives.

potential of supporting around 30 000 jobs. A net-zero pathway includes approximately 3 million metric tonnes of industrial CO2 captured per annum and will also require some form of carbon removal technology such as bioenergy with CCS (BECCS) or Direct Air Capture (DAC). Investment for industrial carbon capture alone will require around £400 million annually for both the capture units and the supporting transmission and storage inf rastructure.

I N T ER N AT I ON AL I NVESTOR MAGAZ INE | 055


Turn static files into dynamic content formats.

Create a flipbook
International Investor Magazine Summer 2020 by International Investor - Issuu