Green call

Policymakers ‘must set conditions for energy transition’

David Whitehouse
David Whitehouse: we want a partnership with political parties

Energy leaders want policymakers to manage the transition to Net Zero by encouraging £200 billion of private investment across the sector.

Among the measures demanded by Offshore Energies UK (OEUK) is a competitive tax regime that provides long term predictability for investment and a fair return, and an independent statutory body to oversee delivery of UK energy and net zero.

It says this new body would ensure the UK delivers on climate goals while tackling energy affordability, security and creating high value jobs.

In its industry manifesto, published today, OEUK also calls for a strategic approach to UK infrastructure including ports, transmission systems, rail networks and the grid and an Energy Skills Passport to draw on the capabilities of the workforce across the sector.

It says a “homegrown” energy transition built on private sector investment could power the UK’s journey to net zero if private investment conditions are right. The Office for Budget Responsibility says net zero will cost the UK £1.4 trillion and the lion’s share must come from industry. OEUK says its manifesto shows how this investment can be unlocked by policymakers. 

The 12-page documents says more than 200,000 jobs around the UK depend on the sector and the industry has the expertise to build the UK’s future low carbon infrastructure. 

An estimated £200 billion of new private capital for offshore energy projects is already earmarked and awaiting a green light, the manifesto says. This investment can be deployed across the UK’s energy mix including wind, hydrogen and carbon capture as well as maintaining domestic oil and gas supplies. 

OEUK represents more than 400 companies of all sizes producing oil, gas, wind and hydrogen energy, carbon capture and the energy supply chain. 

David Whitehouse, OEUK chief executive, said: “Choosing an energy transition which is homegrown instead of imported has the potential to turbocharge our economy, support jobs, champion our world class supply chain and deliver reliable supplies of cleaner energy in the UK.  

“We must get this right. From Shetland to Southampton and everywhere in between, the offshore energy industry has people in every parliamentary constituency around the UK and they have so much to offer.  No one must be left behind. We must ensure our energy transition is delivered with people rather than done to them. 

“Our plan for a homegrown energy transition shows how, with the right support from all parties, our world class offshore energy industry can remain a national strategic asset and lead the world.  

“We are asking all parties and policy makers to forge real partnerships with industry, our communities and our people to unleash our potential and power our future. Let’s choose a homegrown energy transition.”

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