REA sets out plans for a successful Green Recovery as the Prime Minister outlines initial support package

  • Today the REA has published a report outlining the key policies needed to achieve a successful Green Recovery
  • Amongst the policy recommendations, the report highlights energy efficiency and reducing VAT rates as key to unlocking a Net Zero economy
  • The REA is calling on the Chancellor to implement these recommendations in his forthcoming stimulus package
  • This comes in the same week that Prime Minister Boris Johnson sets out the first stage of UK economic recovery

Today the REA has published a report setting out renewable energy and clean technology stimulus policies that will achieve a fair and inclusive economic recovery in line with our legally binding Net Zero targets.

The report, published in the same week that the Government announced the first stage of the UK economic recovery, advocates for an economic recovery rooted in green stimulus packages and policies. Addressing demands for immediate action as well as the need for longer term initiatives, the report sets out a variety of timely and costed policies. This includes those designed to bear fruit within 12-18 months as well as longer term options taking place over 18-36 months.

Ahead of the Chancellor’s forthcoming stimulus package next week, the REA is calling on the Government to prioritise;

  • low-carbon power and heat generation in new homes and retrofit energy efficiency measure into existing homes, as well as more funding for regular CfD auctions for clean electricity
  • reform the tax system to enable the low-carbon transition, particularly Business Rates and VAT,
  • And fund Local Authorities to take actions locally to meet Net-Zero by upgrading local Government buildings estates, such as schools, offices, hospitals and care homes and make the transition to a Circular economy

Creating low-carbon homes and reforming the tax system alone would create 176,000 new jobs, save consumers £270 on bills annually and generate a net value to the UK economy of £7.5 billion – a 50% increase on the £5 billion pledged for the recovery this week.

As the only trade association working across renewable heat, transport, power and the circular economy, the report takes a pan-technology approach to achieving a successful Green Recovery. In doing so, the report is able to identify cross-cutting, high impact policies that are essential to the economic recovery of the UK. These policies, if implemented, would bolster the economy through the creation sophisticated industries and supply chains boasting thousands of highly skilled jobs across the entire of the UK.

Dr Nina Skorupska CBE FEI, Chief Executive of the REA, commented:

“Renewable energy and clean technology have again and again proven to be versatile, secure and economically beneficial – this needs to be acknowledged and reflected in the post-Covid economic recovery. It is no longer enough to support a Net Zero economy in rhetoric alone, we must ensure that renewables are at the core of the recovery if we are to achieve the just and inclusive society the Government has been referring to.

“The Prime Minister has already outlined the first stage of the recovery package, which was underwhelming and lacked details. This report therefore comes at a timely moment, serving to remind the Government of the enormous opportunities that renewable energy and clean technology can offer them in their bid to deliver a Green Recovery.

“As 2050 approaches, the window to meaningfully address climate change becomes smaller and smaller. We ask the Government to recognise this and adopt the policies outlined in the report during the Chancellor’s update next week.”


For more information or to request an interview, please contact

Hayley Allen

External Affairs Officer

020 7925 3570
[email protected]

Notes to editors

  • The full report is available here
  • The statistics regarding 176,000 new jobs, £270 annual savings on bills annually and a net value to the UK economy of £7.5 billion referenced in the press release relates to the following statistics and sources:
    • Passivhaus property can cost as little as £5 a month to heat and light.
    • 28 million homes need upgrading, with insulation, LED lighting, sustainable heating and new homes built to Passivhaus standard with solar and smart technologies, this would create up to 90,000 direct and indirect jobs.
    • House of Commons, BEIS Committee (2019) “Energy Efficiency: building towards net zero” .

Summary: The REA’s Green Recovery Recommendations

Decarbonising Power & Homes  

  • Bring forward new renewable power generation capacity and energy storage projects to enable the shift to Net Zero – £2bn funding could deliver an extra 15-20 GW of renewable power
  • Commit to low-carbon power and heat generation in new homes and Retrofit Existing homes with energy efficiency measures and Low Carbon Technologies
  • Reform the tax system to enable the low-carbon transition, particularly Business Rates and VAT
  • Launch an ambitious national training and re-skilling programme to help workers in oil and gas transition to the net zero world and train a new generation of electrical apprentices to enable the low-carbon energy and transport evolution
  • Invest in battery manufacturing capacity in the UK in line with the Faraday Institution’s recommendations, to enable EV production and energy storage to smooth the energy transition

Decarbonising Heat

  • Stimulate renewable heat deployment by providing an immediate cash injection into the Non-Domestic Renewable Heat Incentive, extending it for 12 months
  • Provide funding to ensure the third allocation round of RHI Tariff Guarantees provides adequate support for biomethane plant development and other eligible technologies, with flexible timelines for commissioning plants

Decarbonising the Transport Sector

  • Accelerate the programmes under way to enable the deployment of public and private EV infrastructure through regulatory support and funding to ensure continued investor confidence
  • Maintain existing low-carbon vehicle incentives and clarify future tax and regulatory questions to provide certainty to consumers and industry
  • Promote renewable transport fuels and the Circular Economy by supporting the removal of fatbergs


Moving to a Circular Economy

  • Adequately Fund Local Authorities to take actions locally to meet Net-Zero, across waste and resources, transport, heat and power with a £2.5 billion Local Low Carbon Transition Fund
  • Invest in an Education and Communications programme to drive quality recycling with funding of at least £50million for a programme to reach every home in the country
  • Fund the revision of the Quality Protocols for compost and digestate at a cost of up to £260,000 & End the use of carbon intensive peat by supporting commercial peat-free sustainable compost alternatives with a £50m Fund
  • Implement a targeted programme of enhanced landfill mining to recover valuable materials and promote a more Circular Economy

About the REA

The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.


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