Manufacturing firms in the UK are calling on the government to provide more insight and support regarding making the country net-neutral.
Manufacturing
The government previously announced its intentions to target net-neutral emissions when they called for a review on how the UK would handle the economic impact of such a move back in November of 2019.
This review was designed to provide a roadmap with the potential of making the United Kingdom completely carbon neutral by 2050, even if the events of 2020 have stalled progress slightly.
The report states that 75% of the businesses surveyed believe this is a realistic target, with 64% already having a game plan to help their carbon emissions net-neutral ahead of 2050.
Furthermore, more than 80% found that their organisation would benefit from the changes required during the transition, with the primary driver being long-term operational resilience as many older technologies are being phased out.
The report was conducted by British utilities company npower, who consulted with nearly 100 businesses across various sectors, including 25 in manufacturing.
Concerns were raised about how the transition would be funded, with 47% of the manufacturing respondents worried about the potential future economic impact such a move would have on their businesses.
When quizzed on who should foot the bill, respondents were split between the government and larger, more energy-intensive industries, with financial institutions also ranking quite highly.
Many respondents concurred that there would be a responsibility for businesses to help contribute to the goals of becoming net-neutral, with many of them agreeing that there should be new government incentives to invest either in renewable technologies or flexibility to give businesses the ability to change their demand, generate their own energy and support the grid.
26% of the manufacturing bodies agreed there would be some level of general taxation, with a third believing it should come as a part of their general climate obligations.
In a statement, Anthony Ainsworth, Chief Operating Officer, I&C at npower, said: “The initial announcements from the government this summer to improve energy efficiency in homes and public buildings were a promising start, but – at the moment at least – they lack any major net-zero stimulus for businesses, particularly in energy-intensive sectors like manufacturing.
“At the time, we released our own insight, which showed that 90 per cent of businesses backed a green recovery plan and 85 per cent believed that organisations with a serious commitment to sustainability should be prioritised for post-Covid-19 government support.
“This report takes this a step further, and asked respondents whether they believed their business would benefit from the changes required during the net-zero transition – it shows that a huge number felt that they would.
He added: “However, the message coming through, loud and clear, from this consultation is that more is needed to support the manufacturing community. As manufacturers have such a crucial role to play in the net-zero transition, it is important that their voices are heard. That is why we will submit this report to BEIS to provide guidance on what UK organisations want to see in terms of incentives and mandates to enable them to effectively plan for a cleaner, greener and more sustainable future.
“There is a real willingness from manufacturing and wider business to embrace net zero – they just need the policy clarity and additional support to help them achieve it.”
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