UK Sees No Need For Subsidies in US, EU Green Technology Battle

UK Government Takes Different Approach In US, EU Green Technology Battle

The position taken by the UK government regarding the lack of immediate need for subsidies to compete with the green industry incentives proposed by the United States and the European Union has sparked debate and criticism. Business Secretary Grant Shapps and Chancellor of the Exchequer Jeremy Hunt both believe that the best way to drive the global transition to a carbon-free future is through open trade and collaboration between countries with the same ambitions, rather than through subsidies.

Shapps views the UK as having the advantage of time to consider its response and the opportunity to approach the situation in its own unique way, while Hunt believes that the UK’s independence from the EU allows for nimbleness in creating new regulatory structures.

However, this stance by the government has drawn criticism from business leaders and industry experts for not having a solid plan in place to support and promote green industries, especially as the US and EU are actively pushing forward with their own green initiatives.

The CEO of the Institute of Directors, Kitty Ussher, has described Hunt’s overall plan for the economy as “empty” and stressed the importance of seeing a plan to incentivize the transition to net-zero for small and medium-sized businesses. The founder of the failed battery start-up, Britishvolt Ltd., Orral Nadjari, believes that without government support, the industry will fail.

Despite these criticisms, Hunt has assured that the UK will announce its plans soon and will be able to present a highly competitive package, focusing on promoting creativity, innovation, and a positive investment climate, rather than relying on subsidies.