New industrial policy must accelerate net zero

3rd March 2023

By Diana Casey

New industrial policy must accelerate net zero

The UK Government has an opportunity to establish new domestic measures to support the net zero transition. Driving the continued decarbonisation of energy intensive manufacturing industries, which can help to accelerate the transition and create UK net zero jobs, is critical.

The Independent Net Zero Review led by Chris Skidmore MP is clear about the economic and environmental risks of climate inaction.

It’s a well-considered, clear-eyed analysis of gaps in policy and a point in time critique of current net zero delivery.

The review set out the opportunity to support the decarbonisation of industrial clusters and has highlighted the opportunity that exists in the cement industry.

We believe there are policy enablers which if implemented by Government would also help the UK concrete and cement industry to drive its continued decarbonisation and journey to net zero.

To set out the opportunity and risks of inaction, the industry has published a proposed package of policy recommendations [Download Here] to cut carbon and deliver high value net zero jobs.

Our policy recommendations to Government include:

  • New domestic measures must eliminate the threat of carbon leakage and protect UK manufacturing jobs
  • Longer term visibility of funding and support for decarbonisation is needed to help businesses plan
  • Whole life carbon assessment should be incorporated into Government policy to cut carbon and deliver improved social outcomes
  • The UK must implement new carbon accounting measures including measurement of consumption emissions, to take full responsibility for its emissions

Achieving net zero will require significant capital expenditure and a considerable increase in operational spending for businesses across energy-intensive industries. To allow informed long term investment decisions, the Government must provide clear forward planning of wider industrial decarbonisation strategies.