Lower energy costs part of government’s 10-year plan for industry – BBC

UK Government Unveils 10-Year Industrial Strategy Focused on Sustainable Development Goals

Introduction

The UK government has announced a comprehensive 10-year industrial strategy aimed at lowering energy costs for thousands of businesses by exempting them from certain green energy levies. This initiative aligns with multiple Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure).

Energy Cost Reduction Measures

The new strategy proposes measures that could reduce energy bills by up to 25% for more than 7,000 UK businesses. Key features include:

1. Implementation of the British Industrial Competitiveness Scheme from 2027, which will cut costs by up to £40 per megawatt-hour by exempting eligible manufacturing firms from certain green energy and backup power levies.
2. Extension of network charge discounts for approximately 500 of the most energy-intensive firms, including steel, chemicals, and glassmaking industries, increasing the discount from 60% to 90% by 2026.
3. Acceleration of the connection process for new factories and projects to the energy grid to support industrial growth.

These measures contribute to SDG 7 by promoting affordable and clean energy access for industries, while supporting SDG 9 through enhanced industrial infrastructure.

Funding and Sustainability Considerations

• The government plans to fund these changes without increasing consumer bills or raising borrowing.
• Funding will be sourced through adjustments to existing green energy subsidies, extending the timeframe for renewable energy producer subsidies.
• The UK’s proposed re-entry into the EU carbon emissions trading system is expected to generate additional revenues and reduce costs.

This approach supports SDG 13 (Climate Action) by maintaining commitments to net zero emissions while ensuring economic viability.

Skills Development and Workforce Enhancement

The industrial strategy includes significant investments to improve workforce skills and reduce reliance on foreign labor, directly addressing SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth). Planned initiatives are:

• An additional £1.2 billion annual investment in skills development by 2028-29.
• Visa and migration reforms to attract elite global talent to the UK.
• Hiring more planners and streamlining application processes to reduce development timelines and costs.
• Increasing research and development spending to £22.6 billion per year by 2029-30, including a £2 billion allocation for artificial intelligence innovation.

Targeted Sectors for Growth

The strategy focuses on eight key sectors with strong UK potential, fostering sustainable economic growth in line with SDG 9:

• Advanced manufacturing
• Clean energy industries
• Creative industries
• Defence
• Digital and technologies
• Financial services
• Life sciences
• Professional and business services

Stakeholder Reactions

Industry and labor organizations have expressed mixed responses:

• Make UK: Welcomed the strategy for addressing the skills crisis, high energy costs, and capital access challenges.
• Trades Union Congress (TUC): Supported efforts to reduce energy costs, highlighting the competitive disadvantage caused by high prices.
• UKHospitality: Expressed disappointment over the exclusion of retail and leisure sectors, which employ over 7 million people, from the strategy.
• Liberal Democrat spokesperson: Emphasized the need for solutions targeting small businesses and comprehensive energy cost reductions.

Conclusion

The UK government’s industrial strategy is designed to promote sustainable economic growth, innovation, and energy affordability, directly contributing to several SDGs. By focusing on energy cost reductions, skills development, and sector-specific growth, the strategy aims to create a resilient and competitive industrial base that supports long-term environmental and economic sustainability.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy – The article discusses plans to lower energy costs for businesses by exempting them from some green energy levies and cutting network charges, directly relating to affordable energy access.
2. SDG 8: Decent Work and Economic Growth – The industrial strategy aims to boost growth, create jobs, improve skills, and support innovation, which aligns with promoting sustained, inclusive economic growth and productive employment.
3. SDG 9: Industry, Innovation, and Infrastructure – The strategy includes boosting research and development, speeding up energy grid connections, and supporting manufacturing sectors, which relate to building resilient infrastructure and fostering innovation.
4. SDG 4: Quality Education – The plan to improve UK workers’ skills and reduce reliance on foreign workers by investing in skills development aligns with ensuring inclusive and equitable quality education and promoting lifelong learning opportunities.
5. SDG 13: Climate Action – The article references green energy levies and subsidies for renewable energy producers, indicating efforts to support climate action and transition to net zero.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 Targets:
   • 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
   • 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 8 Targets:
   • 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
   • 8.5: Achieve full and productive employment and decent work for all women and men.
   • 8.6: Reduce the proportion of youth not in employment, education, or training.
3. SDG 9 Targets:
   • 9.2: Promote inclusive and sustainable industrialization and, by 2030, raise industry’s share of employment and GDP.
   • 9.5: Enhance scientific research and upgrade technological capabilities of industrial sectors.
4. SDG 4 Targets:
   • 4.4: By 2030, increase the number of youth and adults who have relevant skills for employment.
5. SDG 13 Targets:
   • 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Indicators Mentioned or Implied to Measure Progress

1. Energy Cost Reduction Indicators:
   • Percentage reduction in energy bills for businesses (e.g., up to 25% reduction for 7,000+ businesses).
   • Number of businesses exempted from green energy levies and network charges.
2. Employment and Skills Indicators:
   • Annual government spending on skills development (£1.2bn by 2028-29).
   • Number of workers upskilled or trained in relevant sectors.
   • Visa and migration reforms attracting global talent (number of elite global talents entering the UK).
3. Industrial Growth and Innovation Indicators:
   • Research and development spending (£22.6bn per year by 2029-30).
   • Number of new factories and projects connected to the energy grid (speed of connection).
   • Growth in key sectors such as advanced manufacturing and clean energy industries.
4. Climate Action Indicators:
   • Revenue raised from carbon emissions trading system.
   • Subsidies allocated to renewable energy producers over time.

4. Table of SDGs, Targets, and Indicators

Source: bbc.com