Wind in the sails for a green recovery?

By Elisabeth Cowell

Ten years ago, Alex Salmond pledged to make Scotland ‘the Saudi Arabia of renewable energy’. Sound familiar? 

Declared hot on the heels of his landslide win in the Scottish parliamentary elections, Salmond believed that renewable energy exports could underpin self-rule. While independence has not materialised, Scotland has had success in the former, with electricity exports hitting record highs of 4,543 GWh in 2019 thanks to serious investment in offshore wind capacity which means that the industry is now three times bigger in Scotland than it was at the end of 2009. 

With Boris putting offshore wind centre-stage at the Tory Party Conference today, claiming that every home in the UK will be powered “without guilt from the breezes that blow around these islands” by 2030, it seems as though faith in the renewable sector’s ability to power the strength and independence of a nation remains as strong as ever. Stronger, in fact, thanks to the resilience that the offshore wind and environmental infrastructure sector has shown since the start of the Covid-19 pandemic.

With a high proportion of Boris’ £160m investment into offshore wind earmarked for Teeside, Humber, Scotland and Wales, it is clear even to those non-cynics out there that Boris may have more strategic intentions on his mind than simply saving the planet.

Criticism of Government has been coming in thick and fast over recent months, dominated by the continued ineffectiveness of the test and trace system. Only months ago, government come under fire for failing to set out plans for a green recovery that would put the UK on track to meet its goal of reaching net zero carbon emissions by 2050. Apart from £3bn for insulating homes, there were no green measures in the Covid-19 recovery plan, despite its ‘Build Back Better’ sloganeering.

So the fact that Boris has chosen to herald the renewable energy sector as the white knight capable of tackling the issues which keep him up at night – rising unemployment, recession, re-emerging drives for devolution and Britain’s prospects post Brexit – should spark optimism across those communities which are more deeply concerned with the ecological implications of climate change. 

Some may say that government has been a little slow to champion green economy causes. Indeed, the London Stock Exchange’s Green Economy Mark, which is awarded to equity issuers with green revenues of 50% or more, celebrates its first anniversary this month, while its Green Bond Segment has been around for five years. This wildly successful initiative has been front and centre of the LSE’s marketing drive, clearly highlighting that we should expect a surge in renewable/ green oriented IPOs in the years to come. 

But whether you think that more needs to be done or not, one thing is certain: government has finally backed its own manifesto to reach Net Zero by 2050, even if it is politically motivated. With more green policy packages already earmarked for the end of the month, encompassing hydrogen fuels, carbon capture and storage and a ban on sales of new petrol car, we can look forward to more announcements about how Building Back Better will work in reality.