Chancellor unveils £3bn green investment package

Chancellor, Rishi Sunak, has announced a £3bn green investment package, targeted at supporting green jobs, upgrading buildings, and reducing emissions.

On 8 July, the Chancellor delivered his Summer Economic Update to Parliament, setting out a “Plan for Jobs” to mark the second part of the government’s three-phase plan for an economic recovery from coronavirus. The majority of green investment will be devoted to a £2bn Green Homes Grant, with the government acknowledging that meeting the 2050 net zero target calls for emissions from heating buildings to be “significantly reduced”.

The scheme could support over 100,000 green jobs, strengthen a supply chain “vital” for meeting net zero and is aiming to upgrade over 600,000 homes across England. It will provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household, while fully funding energy efficiency measures for those on the lowest incomes, up to £10,000 per household. The government will also establish a Social Housing Decarbonisation Fund, helping social landlords to improve the least energy efficient socially rented homes, beginning with a £50mn demonstrator project.

Elsewhere, the government is planning to pledge £1bn over the next year in a Public Sector Decarbonisation Scheme. This will offer grants to public sector bodies, including schools and hospitals, funding both energy efficiency and low carbon heat upgrades. A Green Jobs Challenge Fund for environmental charities and public authorities is to be backed with £40mn, creating and protecting 5,000 jobs in England that involve improving the natural environment. The package also includes £100mn of new funding for researching and developing Direct Air Capture to capture CO2 from the air.

HM Treasury