Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 21 September 2023.

Joint statement related to the Climate Mobilisation Forum on 21 September 2023.

In a gathering at the National Museum of Natural History in Paris, President Macron and His Majesty the King Charles III heard from company chief executives and leading organisations on how they are supporting action on tackling climate change and nature loss in emerging and developing economies.

Attending as part of His Majesty’s State visit to France, the gathering followed the Climate and Nature Finance Mobilisation Forum. It builds on long-standing collaboration between the UK and France to accelerate action on climate change and protecting the natural environment. Both governments are committed to deepening this further, and to increasing support for emerging and developing economies, as reconfirmed through the Joint Leaders’ Declaration made at the 36th France – United Kingdom Summit, held in Paris in March 2023.

Today’s event was convened by France’s Minister for Higher Education and Research, Sylvie Retailleau, Minister for the Ecological Transition and Territorial Cohesion, Christophe Béchu, and Minister for the Energy Transition, Agnès Pannier-Runacher, and UK Secretary of State for Energy Security and Net Zero, Claire Coutinho, and Minister for Biosecurity, Marine and Rural Affairs, Lord Benyon. It brought together key figures from the private and public sector to identify how we can go faster to mobilise investment and financing to deploy climate and nature solutions in emerging and developing economies.

The event builds on the Climate Finance Mobilisation Forum held earlier this year in Windsor, at which financial institutions and philanthropists announced a range of new investment platforms and initiatives, demonstrating their commitment to concrete actions to finance climate efforts in Africa, Asia and Latin America.

It also follows on from the commitments on climate and nature made by the UK and France during the UN General Assembly this week in New York, and at the Summit on a New Global Financing Pact in June 2023, at which France and the UK launched a joint initiative to promote funding for nature protection and restoration. A key part of this was the creation of a new International Advisory Panel on Biodiversity Credits co-chaired by Chair of the Royal Botanic Gardens at Kew Dame Amelia Fawcett and Former Deputy Governor of the Banque de France Sylvie Goulard. The panel brings together existing initiatives and a diverse range of perspectives to guide the development of biodiversity credits, which are a new tool for raising private sector investment for protecting and restoring biodiversity.

Participants at the Forum held today discussed practical actions that investors and companies are already taking to tackle climate change and biodiversity loss and what more can be done to increase investment particularly in emerging markets and developing economies. Many of those attending made new announcements and set out how they are implementing their existing commitments.

The companies involved today made the following announcements:

Ardian, a French private investment house, and aDryada, a French biodiversity operator, join forces to launch the Averrhoa Nature-Based Solutions Fund, dedicated to large-scale nature-based projects, with a strong positive impact on climate, biodiversity and local communities. It will allow investments for a total of up to €1.5 billion.

Designed to accelerate the strategies of investors and companies in the protection and regeneration of nature and the fight against climate change, this Fund aims to build a portfolio of around 15 diversified projects of reforestation, afforestation, restoration of mangroves and wetlands allowing for the removal of c. 150 million tons of carbon. These projects will be based on the three pillars of climate, biodiversity and providing benefits for local communities, complying with the most demanding international standards and generating high-quality carbon credits.

Averrhoa Nature-Based Solutions Fund will deploy capital globally, mostly in emerging markets and developing economies.

Amundi is taking a new step in the deployment of its strategy to contribute to the preservation of biodiversity and the investment into natural capital.

After engaging 385 companies in 2021 and 2022 to trigger improvements in integrating biodiversity into their strategy, Amundi is proud to join Nature Action 100, the largest global investor’s coalition dedicated to foster action on natural capital, building on the success of Climate Action 100.

Amundi has already launched 2 thematic funds linked to the biodiversity thematic: one on the blue economy and another one to support the transition to a circular economy taking into account the biodiversity footprint.

Amundi is also working on a first fully dedicated biodiversity fund, which is to be launched in the coming months.

In 2022, AXA, Unilever, and Tikehau Capital committed to create a €1bn private equity impact investment fund. This fund is unique by its size, thematic approach towards regenerative agriculture, and partnership gathering AXA’s specialised arm in climate adaptation and impact financing (AXA Climate), a large multinational consumer packaged goods company and an experienced fund manager in climate-related investments. They are now launching a €120 million investment in Biobest, a pioneer in sustainable crop management solutions, in particular in biocontrols that replace conventional pesticides. Biocontrols help farmers derisk their transition to regenerative agriculture practices during 5 to 10 years to restore the ecosystem on the field. With the investment, Biobest will acquire Biotrop, a Brazilian company active in bioinput, highly complementary to their own offer and impact generation.

Cool Earth, have pioneered unconditional grants to rainforest communities from Peru to Papua New Guinea and are regarded as the most effective approach, and are pleased to announce the roll out of a unique programme that provides regular cash grants to 2,000 households in the Peruvian Amazon putting decisions and control in the hands of the people who have most to lose from forest destruction and contributing to keeping 290,000 hectares safe.

Kering launched the Climate Fund for Nature at the COP15 on biodiversity in 2022. In partnership with L’Occitane Group, €140 million have already been committed, and new investors are expected to join this effort with the aim of reaching a total objective of €300 million.

Nine months after its creation, the Fund is fully operational and Kering is thrilled to announce the funding of a first project on the ground to protect primary forests in Peru (for an amount of €2 million) in partnership with a local NGO and indigenous communities. Various other projects are at an advanced study stage, including the restoration of mangroves and land in Latin America, West Africa and South-East Asia.

Finally, Kering will renew its financial support to the Museum of Natural History’s endowment fund to assist them in their work on biodiversity certificates, which are intended to establish a science-based methodology for creating a voluntary market for biodiversity credits, similar to what already exists for carbon.

LVMH is pleased to announce that it will join the Circular Bioeconomy Alliance (CBA) as a Founder Member. The CBA was established in 2020 by His Majesty King Charles III (then His Royal Highness The Prince of Wales) to demonstrate, through Living Labs on the ground, a holistic approach to landscape restoration and value chain creation that works for people, for nature and for the planet. LVMH is already working with the CBA through its support of a Living Lab in Chad that produces cotton sustainably, using agroforestry systems and regenerative farming techniques in partnership with local communities.

Mirova is continuing to roll out its Land Degradation Neutrality (LDN) fund with an investment of €8.5 million in Pamoja, an impact company specialising in sustainable land use, and a reference for sustainable macadamia nut production in East Africa. Pamoja supports nearly 6,000 small macadamia nut growers in Kenya in their efforts to promote sustainable agricultural land management practices. In Tanzania, Pamoja develops certified farms of macadamia nuts, under agroforestry systems. The investment will contribute to the development of Pamoja’s projects in Kenya and Tanzania, with the aim of contributing to sustainable land management over 6,200 hectares of land and reaching 13,000 local smallholder farmers. Mirova is a mission-driven, B Corp certified asset manager 100% dedicated to sustainable investing.

Safaricom, a Kenyan telecom operator and an associate business in Vodafone Group, will invest KES 15-20 billion (~€96 – €128 million) into a major environmental improvement programme. The company intends to reduce its CO2 emissions by accelerating the roll-out of more energy efficient fibre-to-the-home and fibre-to-the-building broadband to customers; to increase the usage of solar energy to power its network; to reduce plastic usage in its store network; and to increase the recycling of electronic waste, including redundant customer handsets. Safaricom has secured the largest Sustainability Linked Loan ever undertaken in East Africa. The funding was provided by a consortium of four banks: Standard Chartered Bank; Stanbic Bank; ABSA Bank; and KCB Bank.

Tikehau Capital, the global alternative asset management group, is in the process of partnering with the Natural Capital Investment Alliance (NCIA). This collaboration aims to advance the Terra Carta’s mission of prioritising nature, people and the planet at the forefront of global value creation. Furthermore, Tikehau Capital announces the first investment of its €1bn private equity impact strategy dedicated to regenerative agriculture and the launch of the second vintage of its decarbonisation strategy, which aims to mobilise between €2 and €3 billion. The first vintage, launched in 2018, successfully raised €1.4 billion and became one of the largest private equity vehicles exclusively committed to empowering companies that are at the forefront of efforts to decarbonise the economy.

This is in addition to recent pledges and initiatives from Forum participants showcasing climate and nature leadership:

Actis has pledged, through its Actis Energy 5 vehicle, $6bn of investable capital to renewable energy investment over the next 3 years, across 9 renewable energy businesses who will collectively deliver over 50 wind, solar and battery storage projects to both utility scale and commercial and industrial customers in Latin America, Asia, the Middle-East & Africa, the US and Central & Eastern Europe. A separate strategy will focus on transition in Asia including energy efficiency and sustainable mobility. Actis will build on its track record of delivering over 180 renewable energy projects across 35 countries over the last 20 years. With sustainability integral to Actis’ investment strategy, Actis continues to focus on a just energy transition – transformation for communities, investors and planet.

This year, both the International Development Finance Club (IDFC) – the group of 26 national and regional development banks from all over the world, and AFD Group – the French development bank and IDFC chair – announced record high levels of climate and biodiversity finance.

IDFC members reported a record high of 288 billion USD in total green finance commitments in 2022, a 29% increase from 2021, of which 32 billion USD were allocated to adaptation finance, a 52% increase from 2021. Cumulatively, green finance commitments by IDFC members surpassed 1.5 trillion USD since the Paris Agreement in 2015.

With €6.9 billion in 2022 of climate finance approved in developing countries and Overseas France, AFD Group reached a new record level too, which makes the Group one of the main international climate finance providers.

Bank of America recently made an investment in responsAbility’s Climate-Smart Agriculture and Food Systems Transformation Fund, which provides long-term debt to innovative businesses in the food value chain in emerging markets. The fund could potentially transform 300,000 hectares to climate-smart practices, drive sustainable land use and reduce about 8 million tons of GHG emissions. It builds on other ways that Bank of America is deploying capital into blended finance vehicles focusing on natural capital. Previously, Bank of America also committed to Bamboo Capital’s Agri-Business Capital (ABC) Fund and the InsuResilience Debt Fund, both driving private capital to largely underserved segments of small agricultural holders and farmers in developing countries. Each of these funds is addressing issues of land use, biodiversity and greenhouse gas emissions while creating sustainable food supply, jobs and economic benefits as well as climate resilience for local communities.

Egis, a global consultancy, construction engineering, and operations firm, allocates 38% of its R&D budget to climate action and biodiversity conservation. Through nature-based solutions like Soil.is, Egis is assisting countries such as Côte d’Ivoire and Congo to diagnose soil health and implement approaches to boost carbon sequestration around major infrastructure. Its Seaboost initiative has aided the Philippines to mitigate flood risk whilst safeguarding local populations and biodiversity. These innovations underscore Egis’s belief that climate and biodiversity solutions must evolve hand-in-hand. By 2030, the company will integrate sustainable design practices in every project, part of a wider strategy that has already seen 45% of its 2022 revenue contribute to sustainable transition. Solidifying its commitment, Egis secured a landmark Sustainability-Linked Loan in 2023 to finance its growth in alignment with its environmental, social and governance objectives.

ENGIE is stepping up its engagement for climate. Firmly committed to achieve its Net Zero Ambition worldwide by 2045, it will reach Net Zero in 4 countries as early as 2030. To reach this target, it will invest €22-25bn between 2023 and 2025. Concretely, it develops energy transition projects in both developed and developing economies, such as the 150MW utility scale battery in the former Australian coalmine site of Hazelwood, a new 3GW windfarm as part of the Ras Ghareb consortium in Egypt and the recent acquisition of BTE Renewables in South Africa including 340MW of installed capacity.

Federated Hermes Limited is pioneering work directing public and private capital into nature while targeting 80% alignment with 1.5C by 2030 across its public markets portfolio, through active engagement with over 190 companies whose market cap tops USD 10 trillion.

In late 2022, the firm announced the development of a UK Nature Impact Investment fund to invest in nature-based solutions across land, coasts, rivers and sea. With the UK government committing £30 million, and with strong private capital interest, it is now committing to raising £400 million in the medium term.

Federated Hermes Limited also launched its Biodiversity Fund in 2022, devoting capital to companies globally that provide solutions around biodiversity loss or lead their sector on nature. Drawing on its partnership with the Natural History Museum in London, the fund has raised over £50 million since launch and is now aiming to exceed £100 million of assets by the end of 2024.

Haleon is committed to helping break down social and environmental barriers that hold people back from better everyday health. Recognising the worsening impact of climate change on health, the company works with industry peers through the ‘Climate and Health Coalition’ to mobilise action. Haleon created ‘The Clean Breathing Institute’ to support pharmacists to give trusted advice to patients on mitigating the impact of air pollution on their respiratory health. The business has 1.5 degree-aligned near-term Scope 1, 2 and 3 carbon reduction targets, which were recently validated by the Science Based Targets initiative. During its 2022 reporting period, Haleon reduced its net Scope 1 and 2 carbon emissions by 41% versus its 2020 baseline, driven by steps including switching to 100% renewable electricity across the sites the business directly controls.

The International Ski and Snowboard Federation (FIS), the governing body of skiing and snowboarding, has established the FIS Rainforest Initiative and committed to investing in communities in Peru by supporting the charity Cool Earth. The deforestation project focuses on educating local young people to become tomorrow’s successful farmers and protectors of the rainforest. By off-setting its total carbon footprint many times over through the Rainforest Initiative, FIS has become the world’s first Climate Positive sports federation.

Pollination is a joint project owner in Delta Blue Carbon (DBC), the largest coastal blue carbon project in the world. Across two phases, the project will restore more than 4000 km2 of degraded mangroves, while further conserving an area of approximately 2000 km2, and will produce an estimated total of 244 million carbon credits. The project is underpinned by strong benefit sharing mechanisms across education, healthcare, economic development and gender equality, with approximately 60% of the revenue from carbon credit sales reinvested back into the local communities.

When combined, these are landscape – scale projects which aim to protect and restore the entire ecosystem and bring increased climate resiliency to the southern Sindh province, an area severely impacted by climate change in the floods of 2022. Quite simply there is no other successful restoration project in its class. The second phase, DBC-2, is currently in the fundraising stage.

The members of the Sustainable Markets Initiative’s (SMI’s) Financial Services Task Force have committed over $9 trillion to support the transition to net zero by 2030 (or sooner) and have already provided and mobilized over $2.5 trillion in capital as part of those commitments since 2020 to 2021. The SMI continues to work to align industry, investment and country roadmaps to accelerate the deployment of private sector capital with a focus on emerging and development markets.

The press release issued by the Department for Energy Security and Net Zero on 21 September 2023.

Thousands of new training places available for retrofitting, heat networks and heat pump installations.

A new wave of low-carbon heating and insulation installers will be created through thousands of heavily discounted training spaces in a boost to the green jobs sector.

From today (Thursday 21 September) up to 8,000 people – including current installers and those who are new to the industry – will be able to develop the skills and expert knowledge needed to retrofit homes and install insulation through a host of training providers thanks to the Home Decarbonisation Skills Training scheme.

A further 4,000 people will also be able to get £500 towards training to install and maintain heat networks through the Heat Training Grant.

And the Low Carbon Heating Technician Apprenticeship, the first of its kind, will provide people with the chance to learn how to install low-carbon heating systems on the job, supporting delivery of the expanded Boiler Upgrade Scheme which gives hard-working families the opportunity to make the switch away from fossil fuel heating.

The schemes are aimed at creating a high-skilled workforce for now and the future, scaling-up energy efficiency and low-carbon heating installations and supporting the Prime Minister’s plan to reach net zero in a pragmatic and proportionate way, while delivering on his priority to grow the economy.

This will help to generate hundreds of new green job opportunities, supporting the nation’s push for greater energy security and independence.

The schemes announced today build on the £15 million provided since 2020 on skills training, which have delivered at least 16,000 opportunities in the energy efficiency, retrofit and low carbon heating sector.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

The UK is a world leader when it comes to reducing carbon emissions, and we’re investing billions of pounds to help decarbonise the nation’s heating, saving homes and businesses energy and cutting bills.

To do that we’re helping to improve the energy efficiency of homes and ensure they have access to cutting-edge low-carbon heating technologies such as heat pumps and heat networks.

With consumer demand for these measures set to surge in the coming years, the funding announced today will help to create the skilled workforce that will be needed.

Under the £8.85 million Home Decarbonisation Skills Training scheme, free or low-cost courses will be available through training providers, such as colleges and accreditation providers, across England.

Training and support will be given to installers to help build the capacity of the supply chain and upskill individuals. This will include installer training that leads to a recognised qualification NVQ or equivalent, and short courses.

Training, which will be delivered until 31 March 2024, will be focused on 2 packages.

• Retrofit assessor and retrofit coordinator: provision and delivery of training to PAS 2035 standards
• Insulation: provision and delivery of training to National Occupation Standards or higher in the installation of domestic insulation measures

Under the £5 million Heat Training Grant, 5 new training providers – based across England – will help develop a new generation of heat network professionals by offering courses to upskill and teach them how to install and maintain them.

They are:

• Building Engineering Services Association (BESA) Academy
• Sycous Limited
• Chirpy Heating
• Herts Energy Academy
• Chartered Institute of Building Services Engineers (CIBSE)

The scheme will provide £500 off the cost of training per person, which usually costs between £500 and £600 to complete – meaning all or most of the course cost will be covered by the government.

Applicants simply sign up for the training through their chosen provider and confirm they are eligible for the grant. Thousands of trainees will receive the practical training needed for heat networks, including feasibility and design, construction, operation and maintenance. Courses will be available to trainees from October 2023 to April 2024.

The Low Carbon Heating Technician apprenticeship will be available across England and has been designed by industry experts.

It will allow new entrants into the heating sector to learn how to install low carbon heating technologies including heat pumps, and will offer sustainable long term career opportunities.

Jennifer Coupland, chief executive of the Institute for Apprenticeships and Technical Education (IFATE), which designed the new training programme, said:

Low carbon heating will be vital with supporting our nation’s drive to net zero by 2050. It’s no good making these leaps in technology if we don’t have thousands of people out there trained up to fit and maintain the pumps and other equipment.

This apprenticeship will provide exciting opportunities for the next generation to establish themselves in a fast-growing sector and be available to people of all ages to upskill, so everyone reaps the career benefits and can play their part in making homes and the economy more sustainable.

Ian Rippin, CEO of low-carbon standards body MCS, said:

The launch of the UK’s first ever low-carbon heating technician apprenticeship marks a step towards a greener workforce for the future. Thousands more skilled and qualified installers will be needed to reach the nation’s net zero targets. Apprenticeships will form a vital part of achieving that goal and making the UK a world leader when it comes to green technology and jobs.

The apprenticeship scheme will provide certainty to businesses who will know that their employees have the skills they need and that there is a pipeline of installers, helping to grow this vital part of the green economy.

John Szymik, CEO of Octopus Energy Services, said:

Heat pumps are like magic – they turn one unit of energy into four units of heat. People who switch from a gas boiler to a heat pump can not only reduce their energy bills, they also help wean the UK off gas.

We’ve already invested over £50 million into the heat pump industry but we need an army of green workers to roll them out at scale. This apprenticeship scheme makes green jobs more accessible, helping to boost the UK economy while getting us closer to net zero.

The press release issued by the Department for Energy Security and Net Zero on 21 September 2023.

New £160 million funding to help reduce emissions and lower costs in developing countries.

The UK will stand as a key ally with developing countries in their efforts to cut emissions.

The £160 million funding will support developing countries to speed up the development and deployment of new green technologies, which will reduce emissions and drive down costs.

The new funding was announced by Energy Minister Graham Stuart at the UN Climate Ambitions Summit in New York, highlighting the UK’s leadership in tackling emissions and working to achieve net zero.

The Energy Security Secretary Claire Coutinho will also join her French counterpart Agnes Pannier Runacher in Paris today (Thursday 21 September) for the Climate Mobilisation Forum, meeting leading businesses and philanthropists looking to invest in developing technologies while stressing the need for international cooperation to reduce global emissions.

The funding package will support energy-intensive industries in developing and emerging economies to cut their emissions, with backing for measures ranging from deploying clean hydrogen-based fuels for steel production to the creation of biomass-powered refrigeration.

Secretary of State for Energy Security and Net Zero Claire Coutinho said:

I am proud that the UK is a key ally of developing countries and is supporting them to reduce emissions and develop clean energy.

We in the UK only account for 1% of global emissions, so we must work together with other countries around the world if we are to achieve our ambition of Net Zero.

Today’s funding will help decarbonise key industrial sectors in the developing world, support new industries and create long-term jobs.

Energy Minister Graham Stuart said:

The UK has cut its emissions by more than any other major economy since 1990 and, following COP26, will continue to spearhead international efforts to limit global warming and reach net zero.

It is essential that developing countries are able to future-proof their industries too – and we will stand with them every step of the way in their industrial transformation.

The funding is part of UK’s international efforts to help developing countries tackle climate change, including by pledging to spend £11.6 billion on international climate finance between 2021 to 2022 and 2025 to 2026.

It follows the Prime Minister’s pledge of £1.62 billion towards the Global Climate Fund, at the G20 in India. That commitment is the UK’s biggest single financial contribution to helping the world’s most vulnerable people adapt to and mitigate the impact of climate change.

The funding will be spread across 4 global programmes:

• £100 million for the Mitigation Action Facility – working with the German government, this fund aims to support developing countries to reduce emissions by funding projects particularly focused on sectors including energy, industry and transport
• £55 million for the Clean Energy Innovation Facility – this new funding will extend the Clean Energy Innovation Facility programme from 2024 to 2029, which provides grants to accelerate the development of innovative clean energy technologies in developing countries in areas such as industrial decarbonisation, and smart energy
• £5.7 million for the Nationally Determined Contribution (NDC) Partnership – to support developing countries with technical assistance to implement their NDC: namely, their share of global emissions reductions to reduce global warming under the Paris Agreement
• £750,000 for the Global Innovation Lab for Climate Finance – further funding for the Global Innovation Lab which supports green projects in developing countries, with this £750k ‘seed funding’ aiming to leverage further private investment. This new funding will focus on supporting projects to reduce emissions in Latin America & the Caribbean and protect forests

Dr Lasse Ringius, Nepal Country Representative, the Global Green Growth Institute, said:

The Global Green Growth Institute (GGGI) applauds the UK government’s renewed commitment to fund the Mitigation Action Facility. As an implementer of a current project and prospective applicant for further funding from the facility, we emphasise the need for a mid-term outlook on future call for projects, allowing us to collaborate with partner governments for new project development.

We believe the Mitigation Action Facility uniquely combines technical expertise, financial support, and agile project execution, making it ideally suited to advance impactful climate mitigation initiatives globally.

In addition to the funding announced yesterday, the UK also confirmed support for a new ‘Cement Breakthrough’, joining Canada. The Breakthrough aim to ensure near-zero emission cement is the preferred choice in global markets by 2030.

Launched by world leaders at the COP26 talks in Glasgow, the Breakthrough Agenda is a UK-led international climate framework, to align global action and coordinate investment for deploying clean technologies in sectors including power, road transport, steel, hydrogen, and agriculture.

The press release issued by the Department for Energy Security and Net Zero on 18 September 2023.

Government opens process for partners to express interest in investing in nuclear revival.

Private investors will have their first chance to come forward and qualify to invest in Sizewell C power station, a key component of the UK’s nuclear revival, from today (Monday 18 September).

Today, the Energy Security Secretary Claire Coutinho confirmed the next stage for the investment process – opening applications for partners to register their interest in being part of the project.

The government, the Sizewell C Company and EDF, the project’s lead developer, are looking for companies with substantial experience in the delivery of major infrastructure projects. This builds on engagement undertaken as the Sizewell C project has developed.

Any investment will also be subject to strict national security checks.

Sizewell C is expected to house 2 of the most powerful nuclear reactors in the world.  It will generate reliable, low-carbon power for up to 6 million homes over 60 years, avoiding 9 million tonnes of carbon each year. At peak construction, it is expected to support 10,000 jobs across the country.

In a show of support, the government has already invested £700 million in the project – the first such direct public investment in a nuclear project for a generation. Ministers have also made £511 million available to continue project development and prepare the Suffolk site for construction, ahead of the planned private equity raise for the project in advance.

The government is delivering a revival of nuclear power by investing in large scale reactors as well as emerging technologies, such as Small Modular Reactors, with the ambition of having up to a quarter of the UK’s electricity generated by nuclear by 2050.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said:

Investing in Sizewell C is an exciting opportunity to be a part of the UK’s nuclear revival – delivering clean, reliable, and affordable power for generations to come.

This project will create thousands of jobs, power 6 million homes and will boost our energy security.

We are focused on securing good value for taxpayers and look forward to seeing strong and competitive bids to be a part of this exciting project.

Sizewell C Company Joint Managing Director, Julia Pyke, said:

The launch of the formal equity raise opens another exciting phase for the project, following a positive response from investors during market testing.

Investors who participate in Sizewell C would be contributing to one of the biggest clean energy projects in the UK.  They should feel confident in our proposals as we are building a replica project with government backing, a mature reactor design and a workforce ready to build it.

We look forward to starting the main site construction and delivering this vital project which will reduce costs for consumers and help to create a future-proof low-carbon energy system for Britain.

The initial process launched today invites partners to complete a pre-qualification assessment. Companies will have to demonstrate that they meet the key criteria for entering negotiations on a potential equity stake in Sizewell C, including experience in delivering major infrastructure projects.

The process has been designed following market testing with a cross-section of partners.

While details of the investors who come forward and get involved cannot be provided at this stage given the need for commercial confidentiality, ministers will be looking for private investors who can add value to the project and will only accept private investment if it provides value for money, while bolstering energy security.

Minister for Nuclear and Networks, Andrew Bowie, said:

Sizewell C is at the heart of the UK’s nuclear revival and our ambition to provide up to a quarter of the UK’s electricity from homegrown nuclear energy by 2050.

This will provide reliable and abundant energy, boost economic growth and jobs across the country and underpin the UK’s path to Net Zero.

Following the first government direct public investment in a nuclear project for a generation, I look forward to seeing strong and competitive bids from potential investors to bring new expertise and experience into the company to help deliver this critical piece of national infrastructure.

CEO of EDF Energy, Simone Rossi, said:

EDF is pleased to support the development of the Sizewell C nuclear plant and the launch of this equity raise.

The very significant investment that EDF continues to make in Britain at Hinkley Point C benefits Sizewell C through replication of the design and construction, and a proven UK supply chain.

Together, Hinkley Point C and Sizewell C will be the bedrock of Britain’s new nuclear fleet, a critical part of ensuring Britain has the clean, affordable energy it needs.

Alongside support for Sizewell C at Suffolk, and Hinkley Point C in Somerset, the government has also launched Great British Nuclear, which will further drive the UK’s nuclear revival through the development of new and emerging technologies.

This includes Small Modular Reactors, which can be constructed more quickly having been partially built in factories; and Advanced Modular Reactors, which are also smaller and can generate high temperatures which can help power industry.

The press release issued by the Department for Energy Security and Net Zero on 15 September 2023.

Industry and consumer groups are invited to offer views on increasing the amount of hydrogen used in the UK’s gas network.

The government has, today (Friday 15 September), invited views from industry and consumer groups on increasing the amount of hydrogen used in the UK’s gas network to fuel homes and businesses, in a move to help cut emissions, strengthen energy security and create new skilled jobs.

Energy Minister Lord Callanan has launched a consultation on the UK pursuing a process of ‘blending’, to accelerate the creation of a new hydrogen industry.

Hydrogen currently makes up around 0.1% of the gas used in people’s homes and businesses – but proposals could see the volume of hydrogen in the network increase gradually over time, up to a maximum of 20%.

This blending of hydrogen with natural gas in the network could boost hydrogen production – which would in turn cut carbon emissions and strengthen energy security, helping to stabilise bills for families and businesses by making them less susceptible to volatile gas prices.

The views from industry and consumer groups – combined with forthcoming advice from the Health and Safety Executive – will help inform next steps on the use of hydrogen, including through blending.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

We want to capture the full economic potential that comes with using hydrogen as a cleaner, reliable energy source – with the opportunity to create tens of thousands of new skilled jobs.

Blending hydrogen into our gas supply – through existing gas infrastructure – would open the doors to an expansion of its use as a fuel, one which could help us cut emissions and stabilise bills for families and businesses.

The consultation launched today marks the next step in government’s plans to reach 10GW of hydrogen production capacity by 2030 – creating over 12,000 new jobs and putting the UK at the forefront of the growing hydrogen market.

Already the government has committed to support the design of business models that will help early projects develop new technology – so hydrogen can be used as a cleaner home-grown energy source that will help stabilise bills for customers.

The energy sector, consumer groups and wider industry have until 27 October 2023 to submit their views to the government’s consultation on ‘Hydrogen Blending into GB gas distribution networks’. The feedback will help inform government’s decision on whether to proceed with blending.

The press release issued by the Department for Energy Security and Net Zero on 14 September 2023.

More than 300,000 homes in England, Scotland and Wales to get insulation installed, which could save families an average of £400 a year on their energy bills.

More than 300,000 families are set to save hundreds of pounds on their bills thanks to new energy efficiency upgrades.

Today (Thursday 14 September) the government launches the £1 billion drive to help those most in need heat their home for less, through the Great British Insulation Scheme.

Families in lower council tax bands with less energy-efficient homes will be offered vital upgrades – such as roof, loft or cavity wall insulation – which could cut their annual energy bill by an average of between £300 to £400.

The scheme will boost help for those on the lowest incomes as well as extend support to a wider range of households compared to other existing government-funded schemes. Those eligible for support under the Great British Insulation Scheme include families in council tax bands A-D in England, A-E in Scotland and Wales, with an Energy Performance Certificate (EPC) rating of D or below.

The 300,000 set to benefit come on top of the 2.4 million homes that have so far benefited from new energy efficiency measures under existing support schemes, as part of government’s ongoing efforts to protect the most vulnerable across the country.

These customers will, from today, be able to find out if they can get support to make their homes more energy efficient by using a new online checker tool.

Energy Security Secretary Claire Coutinho said:

We are determined to help families keep their homes warm through the winter months and save on their energy costs.

Our Great British Insulation Scheme will help hundreds of thousands of people, including some of the most vulnerable in society, get the upgrades their homes need, while cutting their energy bills.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Boosting the energy efficiency of homes creates the best long-term protection against fuel poverty for the most vulnerable.

That’s why we are helping families with extra support to make their homes warmer, while saving hundreds on energy costs.

The scheme will help build on the government’s progress in improving energy efficiency in the country’s homes – in 2010, just 14% of homes had an EPC rating of C or above, compared to 47% in 2022.

This support will run alongside the existing Energy Company Obligation (ECO) scheme, which offers free home energy efficiency improvements, such as insulation, heat pumps and solar panels to families on low incomes.

Customers will be able to use a new online checker for the Great British Insulation Scheme, launched today, to find out if they are eligible. The tool will ask a series of questions – including how they heat their home, whether their home has solid or cavity walls, and if they are receiving any benefits.

A separate checker has also been launched for the Home Upgrade Grant, which could help as many as 25,000 off-the-gas-grid homes that have an EPC rating of D to G. People can find out if they qualify for energy efficiency support – ranging from insulation and draft proofing to new windows and doors, as well as heat pumps and solar panels.

Customers using the online tools will then be referred to either their energy supplier, for support from the ECO programme and Great British Insulation Scheme, or their local council for the Home Upgrade Grant, to take the next step in making their home more energy efficient.

Mike Thornton, Chief Executive, Energy Saving Trust said:

Improving the energy efficiency of our homes is a vital part of addressing both the energy crisis and climate emergency.

By reducing demand for fossil fuels it provides a triple win long-term solution for cutting energy bills, decreasing carbon emissions and improving energy security.

The launch of the Great British Insulation Scheme is therefore a welcome development as it will mean more households are eligible for financial support for insulation measures and comes at a crucial time as we approach the colder winter months.

The press release issued by the Department for Energy Security and Net Zero on 7 September 2023.

Following the decision to not associate to Euratom R&T, the government announces plans for an ambitious and cutting-edge suite of new fusion R&D in the UK.

The press release issued by the Department for Energy Security and Net Zero on 6 September 2023.

Mark McAllister is named as the government’s preferred candidate to be the next Chair of Ofgem, the energy regulator.

Mark McAllister is today (6 September 2023) named as the government’s preferred candidate to be the next Chair of Ofgem, the energy regulator.

Minister for Energy Consumers and Affordability Amanda Solloway said that Mark, currently Chair of the Office for Nuclear Regulation, will bring a “strong track record” in the industry to the role.

Mark would help ensure the energy market is fit for the future – from reforming the grid to supporting households in accessing smarter, more flexible energy.

Responsible for helping shape the regulator’s strategy and policy decisions, as Chair he will champion the interests of electricity and gas consumers. This involves working closely with government, which provided nearly £40 billion to cover around half a typical household’s energy bill last winter.

As we move to a more secure energy system, the Chair’s leadership will help us bring down household bills, protect vulnerable people and ensure the market is working for all consumers.

Minister for Energy Consumers and Affordability Amanda Solloway said:

We will always ensure the energy market is working for families to protect them from sky high bills, including by working closely with our partners at Ofgem.

Mark McAllister has a strong track record of advising governments and regulators on competition and regulation. His expertise will be vital in the years ahead, as we make sure more households have access to cheaper, cleaner energy.

I would also like to extend my warm thanks to Martin Cave for all of his work as Ofgem Chair since 2018.

An engineer by profession, Mark has served as Chair of the Office for Nuclear Regulation (ONR) since April 2019, where he is charged with ensuring the ONR delivers efficient and effective regulation of the nuclear industry.

His selection follows a competitive recruitment process and will be scrutinised by the Energy Security and Net Zero (ESNZ) Select Committee at a forthcoming pre-appointment hearing.

The date of Mark’s pre-appointment hearing will be announced by the ESNZ Select Committee. If confirmed, he is expected to take up post in November.

The press release issued by the Department for Energy Security and Net Zero on 1 September 2023.

The UK government confirms it will be reviewing its Energy Charter Treaty membership, and considering withdrawal if vital modernisation is not agreed.

The UK is reviewing its membership of the Energy Charter Treaty, Energy Minister Graham Stuart announced today (Friday 1 September), including whether the country will leave.

The treaty has historically provided protections for investors in fossil fuels – the UK’s future membership will depend on whether proposals for the treaty’s modernisation are adopted in November.

Last year the UK reached a landmark agreement to modernise the terms of the Energy Charter Treaty, maintaining its current benefits while supporting the transition to cleaner energy.

The modernised treaty, for which the UK has been a strong advocate, was supposed to have been adopted in November last year. It would have a much stronger focus on promoting clean, affordable energy, such as carbon capture, utilisation and storage as well as hydrogen and other renewables. It would also strengthen the UK government’s sovereign right to change its energy system to reach net zero and protect UK investors abroad.

However, several EU member states have decided to leave the treaty, leading to an impasse on modernisation. Ministers are therefore reviewing the UK’s membership of the Energy Charter Treaty to support the transition to cleaner, cheaper and home-grown energy sources, in a mission to bolster energy security.

Minister of State for Energy Security and Net Zero, Graham Stuart, said:

Rather than being stuck indefinitely with an outdated treaty, the UK wants to see an agreement on a modernised treaty as quickly as possible.

In its current form, the Energy Charter Treaty will not support those countries looking to make the transition to cleaner, cheaper energy sources such as renewables – and could even penalise our country for being at the forefront of those efforts.

Governments around the world are looking to boost their sources of home-grown energy, including with new clean technologies – and that is why the Energy Charter Treaty must be modernised. It is also why we are reviewing our membership, and will consider withdrawal, if that vital modernisation is not agreed.

The UK will continue to carefully consider the views of stakeholders in business, civil society and Parliament to inform the UK’s approach. The UK’s strong rule of law means it remains an attractive destination for investment in the energy sector regardless of its Energy Charter Treaty membership.

The press release issued by the Department for Energy Security and Net Zero on 31 August 2023.

Simplified approach to qualifying for a heat pump grant could save consumers time and money, and variable grants will improve access.

Homeowners and small businesses could find it cheaper and easier to install heat pumps under new proposals set out today (Thursday 31 August).

Proposed measures could mean varying the levels of grants that are made available, depending on the customer’s property type or existing fuel source.

This would make heat pump installations more affordable for even more households and small businesses, enabling them to benefit from low-cost and low-carbon heating.

Households could also save time and money through a simplified approach to qualifying for a heat pump grant by removing the need to install loft or cavity wall insulation first.

These changes will help more homes and businesses move away from costly foreign fossil fuels and onto cleaner, cheaper homegrown energy – forming part of the government’s drive to decarbonise the nation’s heating, with more than £81 million in vouchers already issued to customers under the Boiler Upgrade Scheme.

Today’s new proposals also provide an additional option to help consumers install new biomass boilers that also work as an oven, helping more households access the latest in cutting-edge, green technology.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security.

While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.

Today’s changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.

A heat pump takes heat at a low temperature from the air or ground, increases it to a higher temperature, before transferring the heat into homes for heating and hot water. This technology is significantly more efficient than traditional boilers and uses cleaner electricity rather than fossil fuels – helping to reduce the carbon footprint of a home.

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5,000 towards the installation of an air source heat pump; £6,000 off a ground source heat pump; and £5,000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.

Consumer satisfaction is also high, with 92% of surveyed heat pump owners saying they were highly satisfied with the technology after 2 winters, in an evaluation of the Domestic Renewable Heat Incentive Scheme, which was replaced by the Boiler Upgrade Scheme.

Heat pump installers, manufactures, suppliers, and the wider industry are now being invited to offer their views on the government’s proposed changes to the Boiler Upgrade Scheme, with the consultation open on GOV.UK until 12 October.

This comes alongside a government commitment to the Future Homes Standard coming into force in 2025. The Building Regulations will continue to set a performance-based standard rather than mandating or banning the use of any technologies.

However, to make sure that new homes are zero carbon ready we plan to set the performance standard of the Future Homes Standard at a level which will effectively preclude new homes being built with fossil fuel heating.