Following the Summer Budget Announcements, in which £3bn was pledged toward domestic energy efficiency schemes, Boris Johnson has used his first anniversary in office to unveil £350m funding for the development of technologies including Carbon Capture and Storage (CCS) and hydrogen. He has also unveiled a further £400m to drive developments in sustainable aircraft and aviation fuel. The new funding will help de-carbonise sectors including construction, heavy industry, and transport in line with the UK’s 2050 net-zero target.
The funding for aviation will consist of £200m from central Government and a further £200m from the aviation industry. It will be allocated to projects developing sustainable fuel, electric aircraft components, high-performance engines and wing designs intended to minimise fuel usage. In addition to this a further £350m of investment will be provided for low-carbon technologies, this time across the industrial, construction and materials sectors.
Of the £750m, £149m will be spent to increase the use of innovative low-carbon materials in the heavy industry sector. This will be funded with £66m from central Government and £83m from the private sector. A further £139m will be used to cut emissions from heavy industry with investments to scale-up hydrogen production capacity, to develop the required infrastructure and to bring CCS technologies online in greater capacity. There will also be smaller funding packages of £36m for construction, £15m for space and £10m to the automotive sector.
The announcement comes as the Government makes further commitments to a green recovery from the Covid-19 pandemic. The funding is being targeted at the heart of the two industries which significantly contribute to the UK’s carbon footprint. and has been widely welcomed by industry leaders as recognition that in order to reignite the economy and meet the Government’s ambitious pledges to the net zero carbon target, substantial investment is required.