New research from Siemens has shown that UK businesses are increasingly concerned about their ability to meet decarbonisation targets, despite an eagerness to accelerate delivery of Net Zero.
The findings come from Siemens’ latest Infrastructure Transition Monitor (ITM), which surveys 1,400 global decision-makers across energy, transport, technology, health, industrials, retail and real estate.
It shows that only a third (32%) of UK decision makers expect that their organisations will hit 2030 targets, down 23 percentage points compared with Siemens’ last Infrastructure Transition Monitor in 2023.
Confidence among UK businesses on reaching the targets trails the global average (37%), with more expecting to reach 2030 targets in Germany (45%) and Switzerland (60%). However, fewer organisations in the US (28%) and China (22%) envisage reaching goals set for the end of the decade.
But the research shows there is fresh momentum towards action by UK businesses, despite fears on targets. More than three in five (64%) expect to accelerate their decarbonisation efforts in the year ahead, up from 46% in 2023, according to the findings.
According to the data, two thirds of decision makers (66%) believe digitalisation will be key to the UK’s energy transition with 74% saying it offers an added potential of supporting productivity. Respondents said that AI-driven data analysis (46%), cloud computing (42%) and AI prediction (30%) are the top technologies that will have the greatest impact on decarbonisation in the next three years.
The survey also reveals that 74% of UK organisations have fully developed roadmaps to reach targets. Siemens says that the reality of 2030 targets are spurring action and that fewer organisations are burying their head in the sand about the importance of the energy transition.
Electrification is seen as the most feasible way to achieve net zero energy systems according to 80% of those asked while 68% said that electrification is held back by inadequate grid infrastructure and 66% also said that regulatory uncertainty discourages private sector investment in renewable energy projects.
When it comes to wider national infrastructure, the business leaders polled in the survey identified key areas that would speed up the energy transition. The areas that the Government should focus on to deliver impact are expansion and transformation of the energy network (34%), expansion of renewables (34%) and expansion of large-scale energy storage (28%).
Carl Ennis, CEO of Siemens UK & Ireland, said: “We talk about the energy trilemma – cost, security and decarbonisation. Decarbonisation through electrification is vital because it also enhances our ability to provide the energy to meet demand – supporting improved cost and better energy security. Without these things the UK will fall short of attracting the types of private investment needed to scale the economy and provide long-term skilled jobs.
“In the UK, 78% of the people we asked said that our country has a consistent decarbonisation strategy and the same number again said that the country’s strategy is effective. It’s no surprise those two things go hand in hand – we need consistency to deliver the transition.
“Now is the time to accelerate decarbonisation investment and action and stay true to the policy legislation that has helped deliver huge feats in the energy transition so far. While realism means that many businesses recognise the hill to climb in front of them, there is an encouragingly clear shift from ambition to delivery in the findings and there is more evidence of real intent to accelerate action, even if short-term milestones are proving harder to reach.”
Carl Ennis continued: “While traditional infrastructure investment – like more copper in the ground – will get us some way towards decarbonisation through electrification, we can’t rely on 50-year-old solutions on their own to meet to modern energy challenges. Digital technologies that make the grid smarter, help us plan better, and speed up delivery will be vital for grid operators. Industry at large looking to optimise their energy use are increasingly using data to enhance productivity and decarbonise operations. Our research shows two thirds are already using AI to decarbonise, and it will be the backbone of the energy transition.
“The real story is not one of targets slipping away, but of industries learning, adapting and gaining momentum. The companies that are digitalising their operations today are not only decarbonising, but building resilience in their energy security, while reducing costs for increased competitiveness and for finding new opportunities for growth.”
For more information visit https://www.siemens.com/uk/en.html
