Business and energy

Energy support and decarbonisation funding for the chemicals and ceramics sectors was an encouraging sign that Government recognises a central challenge for industry: decarbonisation and electricity prices go hand in hand. It offers a potential model for future targeted support by linking help with energy costs to incentives for cleaner production. However, it also highlights … Show more

Energy support and decarbonisation funding for the chemicals and ceramics sectors was an encouraging sign that Government recognises a central challenge for industry: decarbonisation and electricity prices go hand in hand. It offers a potential model for future targeted support by linking help with energy costs to incentives for cleaner production. However, it also highlights the absence of a broader strategic framework for industrial decarbonisation/electrification across manufacturing. Current support remains uneven. The new BICS scheme is not designed to drive electrification and decarbonisation and may be better understood as short-term relief. The EII Supercharger also provides important relief for some energy-intensive industries, but many manufacturers remain outside its scope. This is particularly concerning given the continued uncertainty around the long-awaited Industrial Decarbonisation Strategy, which remains unpublished and may not provide the clarity or scope industry needs. Small and Medium-sized Enterprises (SMEs) account for 99% of the business population in the UK and over a third of the UK’s greenhouse gas emissions. Rising cost pressures are increasingly limiting SME’s ability to drive growth in local economies and contribute to the UK’s net‑zero transition. Many firms are postponing or scaling back green investment, and NatWest’s latest growth tracker shows that only 30% of firms consider sustainability a high priority, the lowest since early 2020. Show less