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— Renewable industry chiefs push for a U.K. government response to Biden’s Inflation Reduction Act.

— Energy Minister Graham Stuart is speaking at a solar gathering in London today.

— Are Tory MPs mulling some late-in-the-day Energy Bill mischief?

Good morning, happy Tuesday and welcome to POLITICO PRO Morning Energy and Climate UK. Before we launch into an array of stories, regular MECUK readers will no doubt be delighted with some jolly news: Russell’s watchful eye now extends to a greyhound called Seren. A happy Tuesday indeed.

As always, please send your thoughts, musings, tips and critique to one or all of us at: [email protected], [email protected] and [email protected] Or talk to us on Twitter: @hargraver; @charliecooper8; @abby_wallace3.

IRA OFFER: President Biden signed off the Inflation Reduction Act (IRA) last summer. The mammoth package pledges almost $400 billion in tax credits and other incentives to renewable industries, including solar farms and electric car manufacturers. Almost one year after the package was unveiled, the U.K. has yet to set out its full response.

What we know: Chancellor Jeremy Hunt previously warned that the U.K.’s response will not come until the autumn statement, while some U.K. ministers have criticized President Biden’s multi-million dollar package as “protectionist.”

INDUSTRY WARNING: Renewable energy chiefs have demanded a “clear plan” from the government and warned that potential investors will simply go elsewhere if the U.K. does not announce its counteroffer soon. Abby has talked to green industry experts — read her piece here.

Quote: “The U.K. has not responded and that sends a huge message to the industry, which I’d say is already on slightly shaky grounds in terms of its confidence in the government,” warned Clare Jackson, chief executive of the industry body, Hydrogen UK.

Projects “ready to go:” Jackson called for progress in funding hydrogen and carbon capture projects. Business models for these industries are set to be laid out in the government’s Energy Bill, which MPs are expected to approve in a few weeks time. (Keen readers will know that MECUK is happiest when plugging the Energy Bill).

SUPPLY CHAIN PROBLEMS: Tom Greatrex, chief executive of the Nuclear Industry Association (NIA) and a former Labour shadow energy minister, said that if the U.K. didn’t respond soon it would impact supply chains — think the industries, materials and workers which prop up the energy system — and, as a result, the industry’s ability to hit its net zero targets.

Lackluster: “The worst thing that could happen is, having said they’ll do it in the autumn, what we get in the autumn is something lackluster — or a sense there will be something very high level but there will be no detail to it, because what that will do is put people off seeing the UK as a serious place to invest,” he told POLITICO.

DON’T FORGET THE GRID: Plus, if the government is to have any hope of meeting its net zero targets, it also needs a clear plan to reform the transmission network.

Ramp up renewables: “It’s almost no good announcing new targets and ramping up the ambition if we don’t sort out the connections here,” said Ana Musat, executive director of policy and engagement at the trade group, RenewableUK.

Final thoughts: Musat said the U.K. did not need to match the fiscal incentives on offer in the U.S., but she does want to see progress on lifting the ban on onshore wind and developing a business model for funding hydrogen projects.

GOVERNMENT SAYS: A government spokesperson told MECUK the U.K. was “a world leader” in both tackling climate change and investing in green industries. “We have already attracted £120 billion of private investment in real terms in renewables since 2010, and expect to attract a further £100 billion of investment across the economy which will support up to 480,000 jobs by 2030,” they added.

ENERGY BILL: The Bill is back for its final week of committee scrutiny before it returns to the Commons for its report stage. The committee sits today at 9:25 a.m. and 2:00 p.m.

ECO CHAMBER: MPs will hold a Westminster Hall debate today between 2:30 p.m. and 4:00 p.m. on the government’s energy efficiency schemes, ECO4 and ECO+, tabled by Plaid Cymru’s Ben Lake. The scheme requires energy companies to fit energy efficiency measures (think insulation and solar panels).

POLITICS LIVE: The New Statesman is hosting an all-day conference Tuesday with big name climate speakers including Chris Skidmore, Green Alliance’s Roz Bulleid, and Offshore Energies UK’s Jenny Stanning. The panel “Saving the Planet: How can we deliver net zero?” is on at 9:30 a.m., straight after Keir Starmer does his bit. More here.

**A message from SSE: Want to decarbonise our industrial heartlands, protect and create jobs in communities across the UK? Then now is the time to be bold on carbon capture. SSE has projects ready to go. But urgent action is needed, right now. Find out more.**

CLIMATE DISCLOSURES: At COP26 in Glasgow, a new international body was tasked with setting a global benchmark for companies’ sustainability and climate-related disclosures. The International Sustainability Standards Board has now unveiled its inaugural standards. More from our U.S. colleague Jordan Wolman here.

DECARBONIZING INDUSTRY: DESNZ has launched a consultation on the next phase of its funding program for British manufacturers seeking support with decarbonization. In March, up to £185 million was allocated to phase three of the Industrial Energy Transformation Fund. Ministers want applications to open next year and are seeking views on the design of the scheme. Consultation closes July 21.

YES WE KHAN: The London Sustainable Development Commission (LSDC), which advises Mayor of London Sadiq Khan, has outlined a “shared vision” for the city’s transition to net zero. Among its recommendations, published Monday, was increased local powers to set net zero strategies.

Quote: “Cities such as London are already leading the way on ambitious climate action that supports local communities, but lack the funding and powers needed to go further. Much decision-making and action is most effective and cost-efficient when done at local and regional level,” the report said.

Read on: You can download the full report, and rewatch Monday’s launch event, here.

EU NOT ON TRACK FOR 2030: The EU risks missing its 2030 targets for cutting greenhouse gas emissions and boosting renewables, a European watchdog has warned. It found “little indication” that ambitious targets could be “translated into sufficient action.” More from our Brussels-based colleague Federica Di Sario here.

Critical minerals trio: Meanwhile, EU big beasts Germany, France and Italy have agreed to ramp up collaboration on securing supplies of critical raw materials needed for green and digital transition technologies, POLITICO’s Antonia Zimmerman reports.

NO 10 DOUBLES DOWN ON GREEN LEVY: After confirmation that a £170 per year “green” levy on energy bills will be reinstated from July, Rishi Sunak’s official spokesperson said on Monday that the plan was simply a return to “normal” now that overall household energy bills have fallen.  

Recap: As part of its wider support for energy bills, the government took on the cost of the green levy last year. Now that wholesale energy prices have fallen, the government is putting the cost of the levy back onto bills. Overall, households will still be paying nearly £430 less from July on average, No. 10 was at pains to point out.

One to watch: The plan, reported by the Sunday Telegraph over the weekend, has sparked a mini-backlash from net zero-skeptic Tories. Former Energy Secretary Jacob Rees-Mogg argued that the costs should continue to be paid through general taxation and not “slyly” put back on to household bills. A Telegraph leader on Monday called the levy “a net zero poll tax.” 

Step back: MECUK reckons we haven’t heard the last of this row. It plays into the argument of net zero-skeptics that the upfront costs of the energy transition will fall unfairly on ordinary households. But it’s also notable that No. 10 — often accused of not leaning into the net zero agenda — has gone out to bat for the green levy.

Reminder: The levy pays for renewable energy projects, home insulation schemes, and bill support for some low-income households. “As we said from the start,” the PM’s official spokesperson said Monday, “as the energy price cap has fallen below the energy price guarantee, customers will pay the energy rates as normal and that cap includes the green levy.” He added that, through its support for renewables, the levy would help bring down bills over time. 

Amendments incoming? There is time left for amendments to the government’s Energy Bill, which could yet become a vehicle for discontent on the backbenches. Asked whether there would be further pushback against the green levy, Rees-Mogg told MECUK: “There is a little time left [for amendments to the Energy Bill] which I am sure people will be mulling over.” 

DAY IN THE SUN: Energy Minister Graham Stuart is speaking this morning at a gathering of the great and the good of the British solar sector in London. In his speech at the U.K. Solar Summit he will hail Monday’s decision from Energy Secretary Grant Shapps to greenlight a major new solar development — Longfield in Essex.

Shine on: With a total generating capacity of 500 megawatts, the Longfield site will also include battery storage and grid connection infrastructure. It will cover an area of around 459 hectares north-east of Chelmsford. Other even bigger solar farms are in the pipeline — but for now Shapps is calling it “the U.K.’s largest capacity consented solar farm.” Solar Energy UK Chief Executive Chris Hewett welcomed the decision as a “vote of confidence that solar can and should be built at a large scale in this country.”

Warham words: Meanwhile, Tim Warham, DESNZ’s senior policy adviser for renewable electricity, will also be at the Solar Summit, speaking in a “fireside chat” with Hewett.

What else is on Hewett’s mind: Alongside Stuart, Hewett co-chairs the government’s solar taskforce, which met for the first time last month with the task of speeding up progress to the U.K.’s target of deploying 70 gigawatts of solar by 2035. Hewett told MECUK earlier this month that the U.K. was “absolutely capable” of hitting that target if (and it’s a big ‘if’) electricity grid constraints and skills shortages can be addressed. “I think, if you deal with the grid and deal with the skills, you can see that those targets are very achievable,” he said.

Milestones: But it wouldn’t hurt to have some kind of “interim target” between now and 2035, Hewitt added — something the taskforce will likely look at.

**A message from SSE: Time to be bold on carbon capture. Scotland’s north-east is synonymous with our energy past and present. There are plans to transform this region into a low-carbon hub and SSE’s carbon capture project at Peterhead in the Scottish Cluster is ready to go, but time is running out. All we need to progress is a commitment to build the transport and infrastructure in this region to underpin the rollout of carbon capture and storage. Actions, not ambitions will secure our energy future.  SSE. We Power Change. Find out more.**