UK’s Green Policy Ambiguity Stifles Investment
The United Kingdom’s indecisiveness on green energy policies could critically handicap its manufacturing sector, warned Miles Roberts, CEO of the FTSE 100 packaging giant DS Smith. Highlighting the stark contrast with Europe’s clear-cut decarbonisation strategies, Roberts emphasized that such ambiguities have compelled the company to channel a €90m investment into a paper mill in Rouen, France, while UK investments hang in limbo awaiting governmental clarity.
Global Green Incentives Overshadow UK’s Stance
While the European Union’s Green Deal and the US’s Inflation Reduction Act aggressively incentivize carbon emission reduction through substantial subsidies, the UK lags in offering comparable incentives, prompting industries to question the country’s post-Brexit investment appeal. Roberts challenged, “We’ve taken back control, so where is that control? How are we making Britain an attractive place to invest?”
Investment Diversion A Looming Threat for UK Manufacturing
In the absence of a coherent national strategy, Roberts forewarned of investment diversions to more proactive regions. The UK, celebrated for its commitment to carbon neutrality, risks a manufacturing decline if it fails to match the attractive investment solutions found elsewhere, especially those significantly supported by the US and EU policies.
DS Smith’s Commitment to Sustainable Practices
Amid this, DS Smith is forging ahead with its sustainability commitment in Rouen, installing biomass burners to supplant coal-fired boilers, addressing 80% of its energy requirements, with operations commencing in early 2025. However, Roberts underscored the energy-cost discrepancy, noting that UK energy expenses nearly double those in the EU.
Inconsistent UK Policies Hinder Local Advancements
Despite DS Smith’s similar facility in Kemsley, Kent, inconsistencies in the UK’s waste collection systems, contrasted with France’s unified approach, create an unstable operational foundation. The environmental sustainability of biomass boilers remains debated, yet DS Smith counters by emphasizing their use of non-forest materials and waste otherwise destined for landfills.
The Cost of Policy Uncertainty
Concluding, Roberts stressed that current UK policy uncertainty not only deters immediate investment but threatens to impose long-lasting repercussions on the country’s manufacturing landscape and environmental conservation progress.
