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News Release

London

JLL 2014 Budget House View – Dane Wilkins, Head of Renewable Energy Capital


Commenting on the 2014 Budget, Dane Wilkins, Head of Renewable Energy Capital at JLL, said:  “From a renewables specific standpoint I am against freezing the carbon price floor at £18/tonne until 2020. This will only serve to undermine investor confidence in the UK renewables sector at a time when institutional funders have been actively looking to increase their exposure to this attractive asset class. While I recognise the cost of energy remains a political hot potato in the wake of the recession the urgency to decarbonise our economy continues to grow and setting a robust carbon price is an important means for achieving this.       
 
“If the government’s aim is to encourage low cost capital to invest into the renewable energy sector it is important to apply a consistent political message and policy approach. Given the carbon price support mechanism was only introduced two years ago freezing the price floor now merely adds to the perception of increased policy risk in the sector.
 
Dane Wilkins concluded:  “Looking ahead the impact of freezing the carbon price floor is expected to provide a short term benefit to coal fired generators, who will be required to pay less for the carbon they emit. However, despite the freeze the principal drivers underpinning the investment case in the renewables sector remains strong and will continue to make renewable energy investments an attractive proposition in the coming years. Ultimately any measure to delay or limit the introduction of effective carbon pricing will increase the cost of transitioning to a low carbon economy in the long run.”