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The Government has today published a 10-point plan for tackling climate change. Here we look at what this means for the UK’s infrastructure sector.
Bringing forward the point at which the sale of petrol and diesel cars is phased out to 2030 is positive. But with electric vehicles currently exempt from paying VED and the diminishing impact that this will have on fuel duty revenues this does create some concern around the long-term funding of roads. On this point, ICE has previously advocated the introduction of a pay-as-you-go system for England’s strategic road network (SRN) to plug the funding gap. This would mean users of the SRN paying for journeys that they make on this network.
The decision to pursue building one additional nuclear power plant on top of Hinkley Point C is, on the surface, in line with the recommendation that the National Infrastructure Commission had made in its assessment in 2018. Something that the ICE has since publicly supported. The Institution’s recent paper on the need for a Net-Zero Infrastructure Plan identified that government should set out its thinking on hydrogen and CCS. Today’s announcements highlight a direction of travel but lack detail. In the case of CCS, it is important to remember that the UK has already seen two large scale funding competitions fail over the last decade.
Overall, the 10-point plan falls short in conveying how government is taking a holistic approach across departments to tackle climate change. This is something that is necessary if the UK is to meet its 2050 net-zero emissions target.
When the National Infrastructure Strategy and Energy White Paper are published next week, we would expect these to include a joined-up plan for achieving the target.
The ICE policy team will post analysis of announcements made in the spending review next week through this blog. Do look out for this! Read more on the findings of a recent APPGI meeting discussing how infrastructure investment could be key to a UK economic recovery. Read more on electric vehicle use in the Journals section of ICE Publishing here.