A balancing act: championing the energy transition in a just and fair way
At a glance
During this year’s UK Real Estate and Infrastructure Investment Forum (UKREiiF), an important issue was discussed in the GHD-sponsored panel discussion “Energy Security, Resilience, and Place: Balancing the Scales between Policy and Practicality”. This session brought together an esteemed lineup of panellists, including Cllr Bev Craig, Amanda Latham, Tom McGarry, Kate McGavin, and John Allison, to discuss the complex challenges and opportunities within the energy sector, highlighting the urgent need to bridge the gap between policy aspirations and implementation as the UK transitions towards a more resilient and secure energy future.
Navigating the path to decarbonisation and net zero
A central theme of the discussion was the uncertain journey towards decarbonisation and achieving net zero. While the goals are clear, the pathway to reaching them remains less defined and fraught with challenges. The pace of change must increase significantly to meet the targets. Indeed, insights from COP 28 underscored the urgency of accelerating efforts to combat climate change. As environmental challenges intensify, the response must be both rapid and innovative.
Policy as a catalyst
Policy and regulation remain pivotal drivers of the energy transition. John Allison from the Department for Energy Security and Net Zero (DESNZ) emphasised this with the introduction of the heat network zoning policy, a strategic place-based initiative aimed at decarbonising the energy sector by providing regulatory clarity and incentives for private investment. Such policies are crucial in setting the stage for significant market transformations, but alongside this is a realisation that new business models are needed to make projects investable and to bring forward timely private investment.
The role of investment
This timely investment is critical to advancing the energy transition. Amanda Latham from IFM Investors emphasised the importance of partnerships in mobilising sustainable investments. With substantial capital commitments to UK projects, IFM Investors is poised to support the nation’s net-zero ambitions.
Meanwhile, Kate McGavin, Chief Strategy and Policy Officer of the UK Infrastructure Bank, points out that effective collaboration between stakeholders is essential to creating frameworks that align policy goals with practical investment opportunities, as is focusing on risk-adjusted returns from an investor’s perspective. Bundling projects together can attract investment and secure the necessary capital to drive these initiatives forward, ensuring projects appeal to investors while delivering sustainable outcomes.
Local implementation and engagement
Chancellor Bev Craig from Manchester City Council highlighted the local place-based dimension of the energy transition and its application in the built environment. Manchester’s ambitious goal to achieve net zero by 2038 involves extensive decarbonisation efforts across housing, transport and public services. Aligning national policies with local needs and ensuring community benefits are crucial to the success of such initiatives.
Addressing infrastructure challenges
Tom McGarry from the National Grid discussed the critical need to overhaul the grid to support the influx of renewable energy. The Great Grid Upgrade aims to connect offshore and onshore renewable sources, but this requires overcoming logistical and community challenges. Flexible government policies and community engagement are vital to facilitate this transformation. Recognising that no city is the same, addressing community resistance to change by clearly communicating the benefits of the transition can help overcome these barriers.
A call to action: Collaboration, communication, and innovative approaches
The discussion concluded with a call to action for all stakeholders. To accelerate the energy transition while ensuring fairness, collaboration, effective communication, coherent long-term planning, and innovation must be prioritised. By working together, everyone, especially the key actors, can create a sustainable future where energy security and resilience are balanced with the practical needs of communities, embracing new co-designed models that incorporate community input.
I think everything comes down to place, space, and community in the end. Whether it’s around strategic infrastructure or the more locally based decarbonisation of the built environment, it’s really about people and getting people on board. What’s quite nice was that, as a conclusion, we came up with some calls to action that included the need to communicate, the need to collaborate better for a coherent plan at all stages of the process. Also to engage early with the right stakeholders — the UK Infrastructure Bank made that point. Finally, we really have to bring the whole of society on the transition that we’re going through.”