• Spring Statement confirms the downscaling of net zero legislation as a recurring theme of this administration. 
  • Targeted policies are welcome, but disappointing to see promising measures previously announced not expanded on. 
  • The UK net zero economy is a proven success story, that will continue to grow the economy and lead to cheaper bills, but is being held back by lack of Government support.  

The Association for Renewable Energy and Clean Technology (REA) is disheartened by the lack of sector wide measures introduced by Chancellor of the Exchequer Jeremy Hunt in today’s Spring Statement.  

The REA and most academic studies have been very clear that tackling climate change and boosting our economy is not an ‘either-or’ decision. The UK’s net zero economy grew 9% in 2023, in contrast to stagnation in the wider economy with GDP growth at just 0.1%. And yet, sensible measures to support this UK success story have not been implemented.  

On a more positive note, the REA welcomes the increase in the latest Contracts for Difference (CfD) budget to over £1 billion, as the Government takes steps to provide clarity and certainty for investment into the UK’s renewables sector. 

The Chancellor also announced a £270 million joint investment in zero-carbon aircraft technology to develop a more sustainable aviation sector, and for zero emissions automotive technology. There was also a modest increase of £120 million to Green Industries Growth Accelerator fund, to support the expansion of clean energy supply chains across the UK. 

The REA also welcomes the 12-month extension on the levy on the profits of North Sea oil and gas companies under the Energy Profits Levy.  

Whilst many of the measures announced will need to be analysed in more detail, the Spring Statement arguably confirms the diminishing of net zero legislation as a recurring theme of this administration.  

REA Members will receive a full policy breakdown of the Spring Statement later today.  

Read the REA 2024 Manifesto.  

Frank Gordon, Director of Policy, REA (Association for Renewable Energy and Clean Technology) said: 

“This is a political budget above all that does not reflect the urgency of Net Zero and while we welcome the CfD budget announced alongside the Spring Statement today, and extension of the windfall tax on oil and gas excess profits, this is disappointing overall.  

In particular, the Chancellor had promised the sector a response to the US investment in green supply chains and manufacturing at the last fiscal event and to see very little once again on how we can ensure the UK does not miss out on the vital green jobs and investment up for grabs is very disappointing. ”