As the UK’s international investment summit secured £24 billion for clean energy projects, the government has opened consultation for its “Invest 2035: the UK’s modern industrial strategy” programme.
Seeking to tackle barriers to growth in the “highest potential growth-driving sectors and places”, the strategy sets out to encourage international investment in industry. It identifies eight growth-driving sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
Within these categories, it will identify key areas of focus for which there is evidence that policy can address barriers to growth. The government is also seeking feedback on how it should identify the most important subsectors for delivering objectives including net zero.
Energy UK’s deputy chief executive, Dhara Vyas, said the trade association particularly welcomes the inclusion of clean energy industries as one of the eight growth sectors.
She added: “We’ve already seen how clean energy can help create growth and employment across the country and the green paper rightly highlights net zero as both an economic opportunity and an ambition that will be supported by the strategy.”
The proposed industrial strategy touches on the importance of transport in facilitating business investment, although it does not reference the electrification of the sector.
Commenting on the industrial strategy green paper, Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU) said: “A failure to support the transition to electrification at pace, leaving our car industry stuck producing petrol and diesel cars that the world is increasingly turning its back on, could see hundreds of thousands of jobs lost.”
Record-breaking investment announced
The UK government states that this year’s Investment Summit secured a record-breaking £63 billion investment that is more than double the amount committed at the previous summit.
A significant portion of the £24 billion clean energy investment announced last week is allocated to offshore wind; Ørsted and Greenvolt announced investments of £8 billion and £2.4 billion, respectively, for offshore wind developments.
RenewableUK’s head of supply chain Ajai Ahluwalia said: “With the UK taking a leading role in developing offshore wind, including new floating wind projects, now is the right time to set an industrial strategy for the sector to maximise the industrial benefits and employment opportunities which can be created by attracting billions of pounds in private investment to this country.”
As Current± recently reported, Iberdrola will double its investment in the UK through distribution network operator Scottish Power, which it owns. The £24 billion committed across the next four years will enable the full integration of Electricity North West and Scottish Power, as well as delivering the significant upgrades required in the country under the RIIO-T3 framework.
Iberdrola’s executive chairman, Ignaicio Galán, said the doubled investment was enabled by “the clear policy direction, stable regulatory frameworks and overall attractiveness of the UK”.
Prime minister Keir Starmer added: “Working people up and down the country will reap the benefits of Iberdrola’s crucial investments in our green energy sector.”
