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The Scottish secretary shows Scotland will benefit from an influx of capital as investors surprised by Donald Trump’s unpredictability are seeking alternative destinations for their money.
The UK’s renewable energy sector, particularly Scotland, is likely to attract new inward investments thanks to the US president’s departure from clean energy policies, Ian Murray told the Financial Times in an interview.
Earlier this month, investors expressed concern about the disruption of support for green transitions held by New York asset management company BlackRock, Murray said.
“The message there was that investors were really benefiting from the Inflation Reduction Act,” he said. He referred to the 2022 law passed by then-President Joe Biden, leading subsidies and tax credits to the clean energy sector.
But he said, “The era is over and there is a lot of uncertainty, especially when it comes to renewables.
“They were looking for a place to be the world leader in renewable energy, and they see the UK as an investmentable proposal for two reasons.
“One, political and parliamentary stability is very unique in the rest of the Western world at this point. Secondly, the fact that there is a wealth of technology and talent here,” Murray said.
In contrast, the “uncertainty” and “unpredictability” of the White House were the biggest issues for investors considering plowing their funds into the US.
Since 2010, Labour MP Murray, a Southern Edinburgh MP, has called on the British government to do everything possible to “exploit” Trump’s love for Scotland.
The US President often spoke about his affinity for his mother’s hometown, born on Lewis Island on the Hebridian Island before moving to New York.
However, Murray did not suggest that the UK should consider options to improve the likelihood of Turnberry, a Trump-owned golf course. The president’s team raised the issue directly with an aide to British Prime Minister Kiel Starmer.
The R&A Golf Governance Agency, which decides ROTA, is questioning whether transportation links around the venue can address the number of spectators expected.
Scotland is at the forefront of the UK’s net zero industry as it expands its renewable energy production and replaces the decline in oil and gas extraction in the mature North Sea Basin.
The UK is hoping to secure the expected bumper renewable energy auction round for the summer as it is tense to decarbonise its electricity system by 2030.
To encourage investment, the government guarantees low-carbon developers a fixed price of electricity through an annual “contract agreement” auction. The UK wants to expand from today’s 15 gigawatt capacity to 60 GW by 2030.
Since taking office in January, a rollback of Trump’s support for renewable initiatives should facilitate the global supply chain, which was slugged by strong US demand during the Biden era.
However, many executives believe regulatory uncertainty and planning delays are as much of a challenge as attracting capital to the sector.
Murray also became a hit with conservatives and reform Britain as it split the UK’s net zero consensus, claiming it was harmful to the industry. “They are completely wrong to try and break it because it’s not just an environmental opportunity, but an economic opportunity,” he said.
Murray warned Trump’s 10% universal baseline tariff was “big concern” for Scotland, but argued that businesses supported the UK’s attempts to negotiate the deal rather than retaliate.
However, executives in some sectors, including chemicals, a major export from the UK to the US, remain nervous about the onslaught of American imports. They fear that if the industry cannot be protected through mutual tariffs, US products directed towards Europe could be converted to the UK.
Identifying the narrow upside down of Trump’s tariff regime, Murray said in trade talks that he would “force other countries that may have taken longer to reach a conclusion.”
He expressed optimism about the UK’s reset with the EU and trade negotiations between India and the Gulf countries.
“There’s a great economic opportunity here that will help you survive some of the storm,” he said.
