Offshore wind is the UK's biggest climate change success story. Further ambition today is good news. But if govt is to get on track for net zero, it should really apply the lessons on how to support technology transformations to other areas which are lagging. Quick thread:

The UK's progress on offshore has been remarkable. In auctions held in 2014, the price (per MWh) was £140–£150. Last year, it was less than £40 (for contracts that will run from 2023/24). Few thought this possible.

The CEO of Wind Europe has said the UK is now “the leader in offshore wind across Europe” with the best auction model, allowing for the lowest overall costs to consumers and taxpayers.

How did this happen? In short, successive govts have given the market the certainty to invest. They have used all the tools at its disposal in a coherent way- and maintained a consistent approach for over a decade:

1. They have provided price certainty to investors - first through the Renewables Obligation and later through Contracts for Difference, reducing risk. (Support was banded - with govt recognising the limitations of tech-neutral approach.)

2. They've used industrial policy to support skills & training in places like Hull and Newcastle, helping to domesticate the supply chain (and win political support).

3. The Crown Estate which (bizarrely to me at least) owns offshore territories has worked to secure access to the seabed. (more on that oddity here: https://members.tortoisemedia.com/2020/06/29/royal-money-sovereign-wealth-fund-queen-and-charles/content.html )

4. The Green Investment Bank (before it was sold off) helped to open up sources of financing and reduce financing costs.

In short, every signal from govt pointed in the same direction. With a clear long-term framework, it turns out the market can move very fast.

Sounds easy. But compare that with areas like housing and transport: the picture is very different. Policy and regulation have changed constantly; tax signals are confusing; companies are burned as govts U-turn. See this on housing from last night

Each sector needs a LT roadmap like offshore has had. And these other areas will make the progress on offshore look easy. It has largely been driven by govt and businesses; transitions in housing and transport will require big changes from consumers and the public.

So as well as extra investment in the PM's speech today, it would be good to see the govt look to learn from its successes in areas where its not doing so well. More in our report here: https://www.instituteforgovernment.org.uk/sites/default/files/publications/net-zero-government-climate-change-target.pdf