Billions wanted: Report sets net-zero price as Siemens aims for £100bn green project pipeline
Technology firm Siemens has signed an agreement with a coalition of 94 local authority political leaders across the UK to help unlock green investment towards clean energy projects, as a new report warns that up to £20bn may be required annually to deliver the UK's net-zero commitment.
Siemens has agreed to the partnership with the UK100, a network of 94 political leaders across the UK. Both organisations will now work with the Department of Business, Energy and Industrial Strategy (BEIS) to create a pipeline of clean energy projects by combining finance from local authorities, private capital partners and government investment.
The new partnership will aim to unlock investment for councils and authorities to accelerate local energy transition strategies. A survey of local authorities by the UK100, as well as data analysed from Siemens, suggests that a pipeline of more than £100bn could be rolled out to develop and commercialise clean energy projects.
UK100’s director Polly Billington said: “Siemens commitment to this partnership is a sign that the private sector is taking local energy schemes seriously and can help local government to play its part in meeting our ambition of net-zero emissions.”
The partnership builds on the development of five Local Energy Projects (LEPs) which are being created by BEIS in the North West; Yorkshire, Humber & the North East; Greater South East; Midlands; and the South West.
Siemens has also worked on the Humber LEP, in an attempt to reduce the region’s carbon footprint that currently exceeds the total annual emissions of Kenya. Siemens is working with the region on a strategy to develop the UK's first regional Hydrogen Economy. Bristol and Liverpool have also launched ambitious decarbonisation strategies, amongst others.
The partnership between UK100 and Siemens comes as a new report by Vivid Economics estimates that up to £20bn a year could be required for the UK to reach its net-zero target for 2050.
The report found that between £1bn and £2bn a year would be required in 2030 to account for decarbonisation measures, which then rises to between £6bn and £20bn depending on the technologies that are rolled out.
More expensive technology, such as carbon capture methods, could cost between £160 to £470 a tonne, while the cheapest options, such as habitat restoration, would cost between £8 and £78 per tonne.