United Kingdom

United Kingdom

Enacts an Energy Act focussed on promoting investment in clean technologies

26 Oct 2023

On 26 October 2023, the United Kingdom enacted the Energy Act 2023, a pivotal reform in the energy system with a primary focus on promoting investment in clean technologies and achieving the United Kingdom's net-zero targets.

One of the key initiatives includes the establishment of a framework for the licensing of carbon dioxide transport and storage activities, a move that is crucial for the advancement of the Carbon Capture, Utilization, and Storage (CCUS) infrastructure. By setting clear regulations and responsibilities, the Act aims to create a more predictable environment for investors looking to fund CCUS projects.

The Act also regulates and supports hydrogen production and transportation and introduces a market-based mechanism to incentivize low-carbon heat, while requiring manufacturers of fossil fuel heating appliances to increase sales of low-carbon heat pumps as a proportion of their total appliance sales.

Nature of measure:
  • Facilitation
  • Promotion
Type:
  • Entry and establishment (Approval and admission - other)
  • Treatment and operation (Operational conditions)
  • Promotion and facilitation (Investment facilitation , Investment incentives)
Industry:
  • Services (Electricity, gas, steam and air conditioning supply, Transportation and storage)
Inward FDI:
No
Outward FDI:
No
Sources: