United Kingdom going net zero
Insights — December 2020
The United Kingdom began unveiling its plans to transition to net zero carbon emissions
The United Kingdom’s government released the first stage of a 10-point clean energy plan for a “green industrial revolution”. The plan for Britain’s transition to net zero carbon emissions (which will be fully set out in coming months) includes measures such as bringing forward its ban on the sale of gasoline and diesel powered vehicles to 2030 (from 2035) and a plan to increase Britain’s offshore wind power to 40GW by 2030 (enough electricity to power every home in the country) from c.10GW presently.
The United Kingdom is among the developed economies leading the transformation to renewable energy (Britain routinely achieves up to 40% renewable energy in its electricity balance) and we believe its latest plans are a promising roadmap for clean energy which others will follow.
Clearly these data points emphasise the incredible growth opportunity in offshore wind (which in 2019 accounted for only c.0.3% of global electricity generation). More importantly, it underscores the growth opportunity in clean energy more broadly – solar is still only c.2% of global electricity and wind (both onshore and offshore) is only c.6%. We strongly believe the considerable government imperatives, the running room for growth and the falling technology costs creates a generational investment opportunity.