The UK’s investment in renewable energy has lagged significantly behind the rest of the world in recent years, according to an analysis of global data.
The latest government figures reveal the UK’s renewable capacity has fallen to an average increase of 4.45% in the past three years, compared with an average 9.67% annual increase globally.
The analysis follows the government’s announcement that it will approve more than 100 new oil and gas licences.
In the UK, total renewable capacity grew by 1.96% in 2020, 3.65% in 2021 and 7.74% in 2022, averaging a capacity of just 4.45% a year – well down from the 24.26% growth recorded in 2015.
The rest of the world recorded much higher levels of growth in renewable capacity compared with the UK in the last three years. In 2020, renewable capacity grew by 10.3%, followed by 9.1% in 2021 and 9.6% in 2022. This averages a 9.67% increase, more than double that of the UK over the same period.
The Liberal Democrats’ energy and climate spokesperson, Wera Hobhouse, criticised the government’s failure “to invest in the greenest, cheapest and most popular form of energy” and demanded it do more, including removing restrictions on new solar and wind and empowering local authorities to support decentralised energy that will “not only bring down bills, but also provide skilled jobs for the future”.
She said the figures showed the Conservative party could not be trusted with the environment. “They would rather new onshore oilfields than solar farms and wind turbines,” she said.
Roger Fouquet, a senior research fellow at the Energy Studies Institute in the National University of Singapore, said that as countries such as Iceland move towards 100% renewable energy, “its investment is likely to slow down, only increasing to meet the rising demand of power”. However, he noted that the UK cannot compare.
“The UK’s current renewable electricity capacity is below 50%, and has a great deal of further investment to undertake to claim to be a leader in low-carbon energy systems. In fact, 45% of European economies have a higher share of renewable electricity capacity,” Fouquet said.
RenewableUK, a leading non-profit energy trade association, believes the government needs to develop a plan to compete with the EU and US in a competitive renewables market.
Its executive director of policy, Ana Musat, said: “The government urgently needs to develop a comprehensive strategy for making the UK renewables sector the most attractive to global investors, so that we can continue to build new clean energy projects at scale and attract supply chain investment in key areas such as blades, cables and floating offshore wind.”
The Department for Energy Security and Net Zero said: “We won’t apologise for moving faster and earlier on renewable energy than many other countries, and we are glad to see that nations across Europe and the rest of the world are starting to catch up.
“We have already attracted around £120bn investment in renewables since 2010, and are expected to attract a further £100bn in net zero by 2030 – powering up Britain and supporting up to 480,000 jobs. This has meant we have increased the amount of energy coming from renewables from 6.7% in 2010 to 41.5% in 2022.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
