BSRIA has expressed concern over messages from Amber Rudd, Secretary of State for Energy & Climate Change, in her first major speech since the general election, particularly those centering on the ending of and reliance on subsidies for energy saving schemes.

Ms Rudd was addressing the Aviva conference with the theme ‘Climate Change: The Financial Implications’.

Chief executive of BSRIA, Julia Evans, said: “More and more, BSRIA is getting the impression that energy and carbon reduction issues are being viewed as a burden to government – which is inhibiting – not only the industry – but the economy at large. The Minister’s speech is arguing that the removal of subsidy will strengthen the economy and a strong economy will respond to the carbon agenda. But the issue is clearly the lack of stability in subsidy and without such stability industry can’t plan for a ‘green future’.”

Ms Evans continued: “In recent weeks, government has scrapped subsidies for onshore wind and commercial solar – the two cheapest forms of clean energy, slashed the energy efficiency budget, lowered taxes on polluting firms and introduced a tax on clean energy. Green Deal Finance Company funding ending is yet another example of this, along with energy-saving materials being singled out as no longer qualifying for reduced-rate VAT.

“Nothing in the Secretary of State’s speech enables me to see a direction of travel which gives me confidence that the Government is taking the carbon reduction agenda seriously.”

She added: “At best we would say that government is sending out mixed messages on carbon reduction policies. Indeed, such recent sudden changes to low-carbon policies have created mass uncertainty for the industry and investors.

“Government has swept it all away without signalling their precise intent in their manifesto. Government policies will not lead to the low-carbon society they claim they want – they are destroying the UK renewables industry just at the point where it's almost competitive.”

Ms Evans said the Government must either legislate, incentivise or do both.

She concluded by saying: “Industry will question how it is supposed to meet its carbon emission targets. Policies lately have been a move away from renewable technology. Now it would appear to be moving away from addressing the energy efficiency of the existing housing stock. That the Green Deal failed comes as no surprise, however, it seems reckless to be relying on no policy at all to deliver this important agenda.”