UK lags behind European counterparts in low-carbon energy spending

LONDON

A recent analysis by Greenpeace revealed that the UK falls behind other major European economies in its expenditure on low-carbon energy policies.

The country's spending on low-carbon measures from April 2020 to April 2023 amounted to approximately $33.3 billion (£26.2 billion), the lowest among the top five European economies.

Italy emerged as the leader in Western Europe, allocating $111 billion during the same period for low-carbon initiatives.

Germany followed closely with $92.7 billion, while France and Spain dedicated $64.5 billion and $51.3 billion respectively.

The scope of expenditure encompassed various aspects including electricity networks, energy efficiency, innovation in fuels and technology, as well as low-carbon and efficient transportation and electricity generation.

In the UK, approximately $42 billion was allocated to energy affordability measures such as energy bill rebates and assistance for vulnerable demographics.

However, only a fraction of this sum, about $13.3 billion, was directed toward energy efficiency in homes and industries. Similarly, $12.8 billion was allocated to low-carbon transport, with less than $6 billion dedicated to renewable electricity and innovation.

Greenpeace also said in another report that both major political parties in the UK have reversed crucial climate commitments over the past six months, citing concerns over cost.

The Conservative government, led by Prime Minister Rishi Sunak, announced in September a rollback on key net zero commitments, arguing that the transition would burden ordinary citizens with hefty costs.

Meanwhile, the Labour Party significantly scaled back its green spending pledge of £28 billion ($35.5 billion) per year, a move criticized by environmental groups like Greenpeace.

"The government must learn from past mistakes and embrace the opportunities of net zero. Borrowing to invest in a green industrial strategy can resolve many of the UK’s major economic and social issues," Greenpeace said.