In recent years, we in Scotland have taken the lead on improving our carbon footprint. In fact, we have reduced it by an astonishing 42%, and we have done so six years ahead of schedule. It now appears however, that our progress may be stunted. The Conservative led UK Government has recently decided to cut climate change levy exemptions for electricity generated from renewable resources, which I fear will undermine the development of the UK’s energy sector.
Yesterday, as a member of the Finance Bill Committee, I spoke out against the cut to the exemption from the climate change levy, and in favour of an amendment which would help hold the UK Government to account. Unfortunately, the amendment was voted down by the Conservatives. It is perverse that the Climate Change Levy will now be applied to green, clean energy. It is not what the Levy was intended for.
Cuts to renewable energy have particular relevance for us here in Scotland as we provide a vital contribution to the UK’s energy sector. One third of the UK’s green energy comes from Scotland and we cannot afford to have our growth stunted by the Tories’ destruction of any progressive policies relating to green energy.
A stark example of this destructive stance is the Conservatives’ decision in March this year to privatise the Green Investment Bank. The Bank was founded in 2012 with the mission to bring public and private sector money into environmental projects that might not otherwise get up and running. The Tory obsession with austerity and privatisation has resulted in this innovative programme which was touted as globally pioneering being axed.
Our economy is now unfortunately in a period of extreme uncertainty due to the Brexit vote last week. Scotland has reaffirmed its commitment to remaining a front-runner in the promotion of green energy and reduction of carbon emissions by setting a new carbon reduction target of 50% by 2020. It is now more vital than ever for the UK to demonstrate a tangible commitment to promoting the renewables sector. Exiting the European Union means that the UK is now responsible for its own climate targets, as it does not have the EU for guidance in regards to carbon reduction goals. While we in Scotland have continued to exceed EU climate reduction targets and have been a leader in Europe, the UK as a whole has struggled to meet EU targets. Now, more than ever, this Conservative UK Government needs to acknowledge that our future is, in fact, in renewable energy.