A jobs tragedy that could have been avoided
Yesterday saw the sad announcement that energy efficiency and renewables employers Mark Group and Climate Energy had gone into administration. Many hundreds of people have lost their jobs. This is a direct consequence of the uncertain and unstable investment environment created by Government. A long-term policy framework is now DECC’s stated aim – and the newly announced Infrastructure Commission has a remit to consider energy infrastructure needs. But for these companies this is too little, far too late. Since May the Government has jettisoned policy after policy – playing havoc with industry’s confidence and longer term expectations.
While we believe it is possible – and necessary – to rebuild investor and supply chain confidence, without swift and clear indications of a stable, long-term policy framework, there is a significant risk that the UK will be written off as a place to invest in energy efficiency and renewables. This would mean tens of thousands of jobs forgone, energy security undermined, competitiveness reduced, fuel poverty exacerbated and CO2 reductions made more expensive.
Current Government policy is recasting energy efficiency as Cinderella, whereas it is – as the International Energy Agency puts it – the First Fuel. If we are to avoid further tragedies such as yesterday’s and reap energy efficiency’s rich rewards, it is high time for the whole Government to treat it as such.
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