Despite 2023 reportedly being an impressive year of growth for the Net Zero economy, many British energy firms say they’re turning away from investing in the UK, instead favouring alternative markets that are ‘more supportive’ of their sustainable goals.

The statement follows a survey conducted by the UK Sustainable Investment and Finance Association (UKSIF) on 100 business decision makers, representing £700 billion in turnover, operating in the UK energy sector, where 63% of British firms have moved or plan to move investments out of the UK to a more supportive market.

The survey went on to find that 87% of those questioned agreed that changes to policy are essential to make the UK an attractive investment location for green energy and 81% agree the UK is falling behind other countries.

These findings were published in a report made public within days of the Energy and Climate Intelligence Unit (ECIU)’s highly publicised report that found the Net Zero economy grew by 9% in 2023 alone.

So, if the Net Zero economy is booming, why are big business decision makers so unsure of the UK market?

UKSIF’s Chief Executive states that: “Multiple decades of arcane and archaic planning rules are putting the UK energy transition in great jeopardy.”

And, absolutely, this seems to be the case, especially when analysing the stats in UKSIF’s latest report.

However, policy issues are surely just part of the green energy story; planning & permitting delays contributing to these challenges.

The UK also suffers from well-documented issues with the gas and electricity grids. New renewable energy projects, for example, are being given estimated connection dates a decade into the future and electricity grid amendments and expansions have been caught up in their fair share of countryside controversy, all leading to a lack of confidence from both the general public and investors - each incredibly crucial to full scale renewable energy adoption.

Without supportive and attractive policies, efficient planning & permitting processes, and an updated and green-ready national energy grid, investors will continue to shy away from the UK when looking for opportunities.

As such, although the Net Zero economy has increased undeniably impressively within the last 12 months, existing issues - including outdated policies - could be holding the UK energy market back significantly.