Prime Minister Boris Johnson

Prime Minister Boris Johnson's Ten Point Plan for a Green Industrial Revolution for 250,000 jobs 

The Prime Minister last week (18 Nov) set out his ambitious ten point plan for a green industrial revolution which will create and support up to 250,000 British jobs.

Covering clean energy, transport, nature and innovative technologies, the Prime Minister’s blueprint will allow the UK to forge ahead with eradicating its contribution to climate change by 2050, particularly crucial in the run up to the COP26 climate summit in Glasgow next year.

The plan – which is part of the PM’s mission to level up across the country - will mobilise £12 billion of government investment, with £4 billion to create and support up to 250,000 highly-skilled green jobs in the UK, and spur over three times as much private sector investment by 2030.

At the centre of his blueprint are the UK’s industrial heartlands, including in the North East, Yorkshire and the Humber, West Midlands, Scotland and Wales, which will drive forward the green industrial revolution and build green jobs and industries of the future.

The Prime Minister’s ten points, which are built around the UK’s strengths, are:

  1. Offshore wind: Producing enough offshore wind to power every home, quadrupling how much we produce to 40GW by 2030, supporting up to 60,000 jobs.
  2. Hydrogen: Working with industry aiming to generate 5GW of low carbon hydrogen production capacity by 2030 for industry, transport, power and homes, and aiming to develop the first town heated entirely by hydrogen by the end of the decade.
  3. Nuclear: Advancing nuclear as a clean energy source, across large scale nuclear and developing the next generation of small and advanced reactors, which could support 10,000 jobs.
  4. Electric vehicles: Backing our world-leading car manufacturing bases including in the West Midlands, North East and North Wales to accelerate the transition to electric vehicles, and transforming our national infrastructure to better support electric vehicles.
  5. Public transport, cycling and walking: Making cycling and walking more attractive ways to travel and investing in zero-emission public transport of the future.
  6. Jet Zero and greener maritime: Supporting difficult-to-decarbonise industries to become greener through research projects for zero-emission planes and ships.
  7. Homes and public buildings: Making our homes, schools and hospitals greener, warmer and more energy efficient, whilst creating 50,000 jobs by 2030, and a target to install 600,000 heat pumps every year by 2028.
  8. Carbon capture: Becoming a world-leader in technology to capture and store harmful emissions away from the atmosphere, with a target to remove 10MT of carbon dioxide by 2030, equivalent to all emissions of the industrial Humber today.
  9. Nature: Protecting and restoring our natural environment, planting 30,000 hectares of trees every year, whilst creating and retaining thousands of jobs.
  10. Innovation and finance: Developing the cutting-edge technologies needed to reach these new energy ambitions and make the City of London the global centre of green finance.

Prime Minister Boris Johnson said:

Although this year has taken a very different path to the one we expected, I haven’t lost sight of our ambitious plans to level up across the country. My Ten Point Plan will create, support and protect hundreds of thousands of green jobs, whilst making strides towards net zero by 2050.

Our green industrial revolution will be powered by the wind turbines of Scotland and the North East, propelled by the electric vehicles made in the Midlands and advanced by the latest technologies developed in Wales, so we can look ahead to a more prosperous, greener future.

To deliver on six points of the plan, the Prime Minister announced new investment, including:

Carbon capture: To revitalise the birthplaces of the first industrial revolution, the UK will be at the global forefront of carbon capture, usage and storage technology, benefiting regions with industries that are particularly difficult to decarbonise.

An extra £200 million of new funding to create two carbon capture clusters by the mid-2020s, with another two set to be created by 2030. This increased the total invested to £1 billion, helping to support 50,000 jobs, potentially in areas such as the Humber, Teesside, Merseyside, Grangemouth and Port Talbot.

Hydrogen: Up to £500 million, including for trialling homes using hydrogen for heating and cooking, starting with a Hydrogen Neighbourhood in 2023, moving to a Hydrogen Village by 2025, with an aim for a Hydrogen Town – equivalent to tens of thousands of homes – before the end of the decade. Of this funding, £240 million will go into new hydrogen production facilities.

Nuclear: £525 million to help develop large and smaller-scale nuclear plants, and research and develop new advanced modular reactors.

Electric vehicles: Following extensive consultation with car manufacturers and sellers, the Prime Minister has confirmed that the UK will end the sale of new petrol and diesel cars and vans by 2030, ten years earlier than planned. However we will allow the sale of hybrid cars and vans that can drive a significant distance with no carbon coming out of the tailpipe until 2035.

The UK car industry already manufactures a significant proportion of electric vehicles in Europe, including one of the most popular models in the world.

To support this acceleration, the Prime Minister announced:

  • £1.3 billion to accelerate the rollout of chargepoints for electric vehicles in homes, streets and on motorways across England, so people can more easily and conveniently charge their cars.
  • £582 million in grants for those buying zero or ultra-low emission vehicles to make them cheaper to buy and incentivise more people to make the transition.
  • Nearly £500 million to be spent in the next four years for the development and mass-scale production of electric vehicle batteries, as part of our commitment to provide up to £1 billion, boosting international investment into our strong manufacturing bases including in the Midlands and North East.

This will help protect and create thousands of new jobs, particularly in the Midlands, North East, and North Wales.

We will also launch a consultation on the phase out of new diesel HGVs to put the UK in the vanguard of zero emission freight. No date has been set yet.

Homes and public buildings: £1 billion next year into making new and existing homes and public buildings more efficient, extending the Green Homes Grant voucher scheme by a year and making public sector buildings greener and cutting bills for hospitals and schools, as part of the Public Sector Decarbonisation Scheme.

Greener maritime: £20 million for a competition to develop clean maritime technology, such as feasibility studies on key sites, including Orkney and Teesside.

This follows ambitious plans to make the UK the world leader in clean wind energy, and plans for greater protections for England’s iconic landscapes and the creation of new national parks, as set out by the Prime Minister over the last few weeks.

Other key parts of the plan will be driven forward by significant investment set out over the last year, including the £1 billion energy innovation fund to stay ahead of the latest technologies needed to reach new energy targets, £5 billion for alternative greener ways of travel including cycling, walking, and buses, and £5.2 billion to create for new flood and coastal defences in England by 2027.

These new commitments backed by government funding send a clear signal to industries across the British economy to invest in the UK, which is why the Prime Minister hosted a virtual roundtable with green investors to set out his ambitious plan and incentivise further private sector investment.

This marks the beginning of the UK’s path to net zero, with further plans to reduce emissions whilst creating jobs to follow over the next year in the run up to the international COP26 climate summit in Glasgow next year.

Green industrial revolution in sight as government sets out plans for more clean energy

The government has today (24 Nov) set out its next steps towards a green industrial revolution with ambitious plans for the next round of its flagship renewables support scheme.

The fourth round of the Contracts for Difference (CfD) scheme – to open in late 2021 – will aim to double the capacity of renewable energy compared to the last round and expand the number of technologies supported, with offshore wind, onshore wind, solar, tidal and floating offshore wind projects all eligible to bid.

This will be coupled with a new consultation looking at the supply chain and ways to support more jobs and private investment by increasing the competitiveness of UK manufacturers. It will mean the country can reap the rewards of clean energy following the Prime Minister’s Ten Point Plan for a Green Industrial Revolution published last week.

Energy Minister Kwasi Kwarteng said:

The UK is a world leader in clean energy, with over a third of our electricity now coming from renewables. That huge achievement is thanks to the government’s Contracts for Difference scheme.

The new plans set out today build on the Prime Minister’s Ten Point Plan and put us firmly on the path towards building a new, green industrial revolution.

The CfD scheme is the government’s primary method of supporting low-carbon electricity. It encourages investment in renewable energy by providing projects with a stable income, while protecting consumers from paying increased costs when electricity prices are high.

The fourth round aims to increase the capacity of renewable energy from the 5.8GW achieved in the last round to up to 12GW, which could be enough to power 20 million electric cars on the UK’s roads in any year.

Government support to unleash the potential of offshore wind generation has seen the cost of it fall by two thirds in the last 5 years. Given its long-term potential to support the country’s 2050 net zero target, offshore wind projects will compete in their own ‘pot’ in the next auction process rather than against other technologies as they have previously.

Last year’s third round delivered record-low prices and secured enough clean energy to power over 7 million homes. Today’s plans set out changes to the structure of the scheme to build on that success.

Floating offshore wind projects will be able to bid for contracts for the first time, allowing wind farms to be built further away from the shoreline where it is windiest and increasing the UK’s renewable energy capacity even further.

And as announced in March, solar and onshore wind projects will be able to bid for the first time since 2015, coupled with a commitment to update guidance for new onshore wind schemes in England to fully reflect the impacts and benefits to local communities.

Following the first consultation on the fourth CfD round, the government has also announced today (24 November 2020) that a second consultation is being launched on new proposals for the Supply Chain Plan.

The proposals are designed to increase the clarity, ambition and measurability of commitments made by renewable project developers when they bid for contracts in the CfD scheme, and to introduce new measures if they subsequently fail to deliver on those commitments.

Today’s announcement follows last week’s unveiling of the Prime Minister’s Ten Point Plan, which outlines an ambitious vision of a low-carbon future for the UK, and will ensure that clean energy continues to play a key role in ending our contribution to climate change entirely by 2050.

the fourth round will see three ‘pots’ for renewables technologies:

  • Pot 1: Established technologies – including onshore wind and solar PV
  • Pot 2: Less-established technologies – including floating offshore wind, Advanced Conversion Technologies and tidal stream
  • Pot 3: Offshore wind

former coal-burning power stations that have been converted to biomass generation will be excluded from future CfD rounds

Contracts for Difference are 15-year private law contracts between renewable electricity generators and the Low Carbon Contracts Company (LCCC), a government-owned company that manages CfDs at arm’s length from government

contracts are awarded in a series of competitive auctions, known as allocation rounds, which have been run every 2 years. In the auction process, the lowest price bids are successful, which drives efficiency and cost reduction

CfDs give greater certainty and stability of revenues to electricity generators by reducing their exposure to volatile wholesale prices, while protecting consumers from paying for higher costs when electricity prices are high

the scheme has delivered substantial new investment and helped deliver significant reductions in the costs of capital for some renewable technologies

the third round of the CfD renewable energy auction delivered record-low prices on enough clean energy to power over 7 million homes

in the fourth allocation round of CfD, the government’s aim is to support up to double the capacity of renewable energy from levels achieved in the third round, rising from 5.8GW in AR3 to up to 12GW in AR4

following the conclusion of the third CfD Allocation Round in September 2019, the scheme currently supports 49 renewable electricity projects (73 CfDs) across a range of technologies, totalling around 15.5 GW

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