Industry, Unions, Academics and Energy Leaders Unite to Call for Greater Government Support for Industrial Decarbonisation
- Cross-sector coalition calls on UK Government to strengthen support for industrial decarbonisation in the upcoming Spending Review.
- Warning that failure to invest risks significant job losses, decline in our critical industries, and threats to UK energy, product and economic security.
- Coalition of 50 organisations calls for accelerated delivery for CCUS and low- carbon hydrogen.
- Letter urges the Government to treat industrial decarbonisation with the same urgency as the 2030 Clean Power goal.
A broad coalition of industry associations, trade unions, academics and energy and manufacturing companies have come together in a unified call for the UK Government to strengthen its support for industrial decarbonisation, warning that failure to act risks undermining the nation’s economic and energy security.
In a joint letter to the Chancellor and Secretary of State for Energy Security and Net Zero, the coalition praised the Government’s early steps toward decarbonising UK industry – including recent financial milestones for major carbon capture projects such as Eni’s Liverpool Bay CCS, Net Zero Teesside Power, and the Northern Endurance Partnership.
However, with the upcoming Spending Review being a pivotal moment, the signatories are urging the Government to go further. They are calling for policy certainty and funding to support Carbon Capture, Utilisation and Storage (CCUS), and hydrogen infrastructure across industrial clusters – particularly for projects in the next wave of development, including Track 2, Track-1 expansion and other projects that can deploy along a similar timeframe.
Decarbonising our industries stimulates significant economic growth with £26bn of private sector funding invested in the UK’s industrial heartlands by 2030, rising to £68bn by 2050 and creating £94bn cumulative GVA in the UK by 2050. However, industry needs the Government to show continued commitment if they are to continue to invest in the face of an uncertain future.
“It is vital that we decarbonise, not deindustrialise the UK’s industrial heartlands,” the letter states.
The group notes that while the UK has made impressive progress in reducing emissions, many of the most challenging industrial sectors to decarbonise – including cement, refining and chemicals – still lack the tools and infrastructure necessary to fully transition to a net zero future. Without further urgent support in the upcoming Spending Review, these industries risk decline, and could lead to the loss of thousands of skilled jobs and Britain’s broader industrial resilience.
Highlighting the recent job losses at the Grangemouth refinery and long-running pressures in British steel, the signatories warn that a lack of timely investment in decarbonisation of our industries could severely hinder domestic capabilities and impact targets such as the Government’s pledge to build 1.5 million homes during this Parliament.
The coalition is calling for:
- Delivery of the most mature clusters and projects across our industrial heartlands including the North-West, North-East, Humber and Scotland; in Track 2, Track-1 expansion and other advanced clusters delivering along the same timescales.
- Timely selection of CO2 emitter projects alongside CO2 infrastructure investment.
- A commitment to supporting decarbonisation on the same scale as the Clean Power by 2030 goal.
The letter emphasises that foundational industries stand ready to invest and innovate, but require a stable and supportive policy environment to do so. With the right backing, and working towards a self-sustaining sustainable business model that promotes growth and economic security, the UK can lead the way in low-carbon industrial production and secure its position as a clean energy superpower.
About the Coalition
The joint letter represents a wide range of UK trade associations, manufacturing and energy sector leaders, and trade unions working together to ensure a just, secure and prosperous industrial transition to net zero.