Fuels Industry report

Fuels Industry UK has set out the policy changes needed from the UK government so the fuels sector, and the UK as a whole, can transition to net zero with a thriving industrial sector still in place.

With a General Election more than likely later this year, Fuels Industry UK says the recommendations can be adopted by any government to encourage essential investment in the delivery of net zero by making the UK competitive internationally.

The policies highlighted in the association’s Policies for the Fuels Sector report address:

• The UK’s high carbon and energy costs which are discouraging investors;

• Old models of legislation and regulation that are slowing down the net zero transition;

• The need to consider full lifecycle emissions;

• The workforce skills needed to deliver net zero.

Fuels Industry UK CEO, Elizabeth de Jong, said: “The fuels sector is helping the UK decarbonise but faces higher industrial costs than most competitor countries, poorer incentives to develop new low emission technologies, and a policy environment that currently offers less certainty for investors. Without urgent action we risk falling behind and losing our global leadership in large-scale decarbonisation technologies like hydrogen, low-carbon fuels, and carbon capture.

“As we look ahead to the general election, this report sets out the clear policy needs of the fuels sector that will help us to deliver a successful transition while maintaining energy security for the UK.”