Sector specific comments on the 2020 Budget

Decarbonising Heat

Frank Gordon, Head of Policy at the REA said:

“It is encouraging to see the Government make an effort to progress and support the decarbonisation of heat by extending the Domestic RHI, consulting on much anticipated Green Gas support measures and introducing a £100 million grant for the installation of heat pumps and biomass, this is vital protection for small business installers which would fall off the cliff edge when the scheme ends in 2021.

“However, we are confused to why the Government would not to grant this extension for Non-Domestic RHI. Small and medium scale projects are equally at risk of collapse without the necessary support. The significant gap between the end of the RHI and the introduction of £100 million grant will see the market contract even further jeopardising our Net Zero target, UK businesses and green jobs.

“The Government must address these issues as a matter of urgency by committing to an extension of the non-domestic RHI and bridging the policy gap expected in 2021.”


Decarbonising Power

Frank Gordon, Head of Policy at the REA said:

“It was great to see the Chancellor rightly acknowledge the role renewables are currently playing in the power sector and that with the falling costs renewables – offshore wind, onshore wind and solar being specifically referenced – will likely be the UK’s primary source of electricity in combination with other technologies.

“Supporting Carbon Capture Storage clusters, raising the rate on CCL for gas supplies and additional funding for R&D projects are all welcomed policies. Yet none of them provide the high impact results we need to progress the power sector. We would have liked to see the Budget build upon the Contract for Difference announcement made last week by increasing the budget for future auctions, which would open up a route to market for these technologies, and to see measures for energy storage which is vital for decentralised flexible energy systems.”


Decarbonising Transport 

Frank Gordon, Head of Policy at the REA said:

“The proposals for first year allowances for gas refuelling infrastructure are a welcome boost for decarbonising heavy goods vehicles and these gases can be renewable in which case they deliver valuable carbon savings.

“For the electric vehicles sector, this budget is a welcome boost. With a new fund for developing a high-power charging network, tax relief for new electric cars, R&D investment, and an extension to plug-in vehicle grants all announced it is clear that the Government is doing what it can to ensure the UK is at the fore of this emerging global industry. What’s needed now is clarity, particularly on the role Government will play in supporting rapid charging roll-out along the motorway network, and on what is to happen to the existing home and workplace EV charging grant schemes due to expire later this year.”


Preserving Natural Capital 

Frank Gordon, Head of Policy at the REA said:

“We are really pleased to see the Plastic Packaging Tax confirmed in the Budget. We hope that this will in the long run see a reduction in plastic contamination of compost.

“However, we were disappointed at the lack of clarity on the implementation of the Resources and Waste Strategy. For the Strategy to be successful, Local Authorities need to be adequately funded to make the infrastructural and practical changes needed to accommodate for food waste collections and the standardisation of recycling.

“We are looking forward to responding to the relevant consultations (including on the reform of the packaging system) so that the majority of compostable items that reach composting and suitable AD facilities, are bio-degraded in those facilities, with the operators adequately rewarded for doing so.”


For more information or to request an interview, please contact:

Amy MacConnachie

Head of External Affairs


[email protected]

Notes to editors:

  • The Budget is available here.

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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