Diversion of investment away


from renewables

Bloomberg New Energy Finance suggests that renewables are

unlikely to be directly affected by shale gas, because their

adoption is driven by decarbonisation policy82. However, the UK

Government’s clear support for shale gas and, by contrast,

reductions in its support for renewable energy and energy

efficiency, may be deterring investment. For example, after the

Government’s failure to use the Energy Bill to introduce a target

for decarbonising the electricity supply by 2030, a group of

investors responsible for over £1 trillion called on Chancellor

George Osborne to reconsider. They argued that “The UK has the

potential to offer a safe harbour for renewable energy investors

in Europe, but the delay in delivering a stable policy framework is

weakening our prospects and holding back investment”83.