The plan involves a significant push in the UK for carbon capture and storage, floating offshore wind, green hydrogen, small modular reactors, home insulation, electric vehicle charging infrastructure, and heat pumps.

The UK intends to scale up affordable, clean, homegrown power and develop thriving green industries, thereby enhancing the nation’s energy security and independence, reducing household bills over the long term, and maintaining a world-leading position in accomplishing net zero emissions.

The government of the UK asserts that it is implementing a radical transition in the nation’s energy system. The plans have been tailored to support the growth of the economy and the invention of nearly half a million new green employment by 2030.

Thereby creating a strategic advantage in new clean industries and facilitating the export of British expertise abroad.

Here are some of the plan’s focal points:

Carbon Capture Utilization and Storage: The first initiatives are advancing to the next phase of negotiations to deploy the first carbon capture clusters in industrial hubs. In addition, the Prime Minister and Energy Security Secretary have launched the application process for two additional future clusters and affirmed that there would be an opportunity to add additional projects to the first two clusters. These announcements expand upon the £20 billion funding allocation for CCUS announced in the spring budget.

Delivering Great British Nuclear: This Greater Manchester-based organisation will drive the delivery of new nuclear initiatives, to generate 25% of the UK’s electricity from nuclear sources by 2050, up from the current 15%. Great British Nuclear’s first task will be to launch a competition by autumn to select the finest Small Modular Reactor (SMR) technologies for development – smaller nuclear plants based on cutting-edge technology.

Green Hydrogen: The £240 million Net Zero Hydrogen Fund will fund new hydrogen initiatives nationwide to jumpstart this industry in the UK. Twenty initiatives will advance to the next phase of the first electrolytic hydrogen allocation round. The government opened bids for the fifth round of financing through the world-leading Contracts for Difference Scheme, with a budget of £205 million. 

In addition, Grant Shapps is launching the Floating Offshore Wind Manufacturing Scheme, which could provide up to £160 million to kickstart the investment in port infrastructure projects required to realise the UK’s floating offshore wind ambitions.

Up to 80% of people in council tax bands A-D across the country will be eligible for assistance to make their homes more energy-efficient under a new ECO+ scheme termed the “Great British Insulation Scheme.

“It is part of a £1 billion energy efficiency programme running until March 2026, contributing to the government’s goal of reducing energy demand by 15% by 2030. This will allow improvements to be made to an additional 300,000 of the country’s least energy-efficient homes, saving households an average of £300-400 per year on energy bills.

Reducing our dependence on fossil fuels for building heating: A new £30 million Heat Pump Investment Accelerator is intended to leverage £270 million in private investment to increase heat pump production and supply in the UK. The government announced an extension of the Boiler Upgrade Scheme until 2028, which grants up to £5,000 to anyone purchasing a heat pump, thereby making heat pumps more affordable than gas boilers to purchase and operate.

Confirmation that the government will lay out plans in 2023/24 to rebalance gas and electricity costs in household bills to reduce household electricity bills and accelerate the electrification of households and businesses.

Decarbonising transport: According to the government, reducing carbon emissions in the transport network will be crucial to achieving net zero.

This supports the government’s consultation on a world-leading zero-emission vehicle mandate, providing certainty to the sector and bolstering the market for used electric vehicles. In addition, the government is encouraging domestic production and the use of sustainable aviation fuels by launching the second SAF mandate consultation.

The plans also address issues concerning the acceleration of the planning process, the greening of the economy, and the attraction of the capital. 

The Electricity Networks Commissioner will investigate what else can be done to accelerate network infrastructure and make recommendations to Ministers by June. Additionally, a consultation was initiated today to ensure that local communities will benefit from developing new network infrastructure in their region.

An update to the Green Finance Strategy can mobilise the billions of dollars in private investment required for net-zero emissions and nature restoration. It involves consulting on requirements for the UK’s largest firms to publish net zero transition plans mirroring requirements for financial firms.

Lord Harrington of Watford will lead a review into how the UK can better attract foreign direct investment across five growth sectors, including green industries.

UK Export Finance has also been granted an additional £10 billion to promote exports, including those of the UK’s world-leading clean growth industries. In addition, the government will release Patrick Vallance’s Pro-Innovation Regulation of Technologies Review and its response, which adopts all nine recommendations.

Prime Minister Rishi Sunak said: “By assisting in paying approximately half of the average energy bill, we are shielding people from its worst effects.” But we are stepping up to power Britain and safeguard our long-term energy security with cheaper, cleaner energy from Britain so that we can reduce energy prices and expand our economy. This is why we are advancing plans to increase renewables, revive nuclear, and build new thriving industries such as carbon capture.”

Secretary of energy security Grant Shapps said: “Affordable, abundant, and dependable energy is the cornerstone of a flourishing economy, with our homes and businesses dependent on it for future prosperity.”

Jeremy Hunt, chancellor of the Exchequer, added: “Transforming our energy system is no longer solely a matter of combating climate change; it is also a matter of national security. We must expedite the transition to cleaner, cheaper domestic energy sources to prevent future price surges. By releasing billions of private capital through our Green Finance Strategy, we generate more of the energy we require in the UK and create new industries and employment that will last.”

Since 2010, the UK has invested £198 billion in low-carbon energy through government funding, private investment, and consumer bill levies. Additionally, the UK has broken numerous records in producing renewable electricity and is the global leader in offshore wind; the country is now in a prime position to export its world-leading expertise.