Thank you very much, Dirprwy Lywydd. I'd like to give an update to Members on the Government’s work on developing a national energy strategy for Wales. Energy is fundamental to modern life. The transition to a low-carbon energy system is central to our ambition to reach net zero by 2040, facing the climate and natural emergencies together while strengthening our energy security, improving productivity and creating lasting benefits for Wales.
Our ambition goes beyond generating more energy. We need to understand Wales's current and future energy needs, as well as where infrastructure is required, ensuring the best use of what we have and how the value created by our land, wind, water and seas can be retained more fairly by the people and communities of Wales. Wales's natural resources are national assets. The value they create should increasingly be retained in Wales and used to support Welsh communities, Welsh businesses and future generations.
The strategy will provide a clear path to delivering on our policies, which, once in place, will provide more certainty to developers and communities, identifying how we plan to deliver an energy system that is clean, owned in Wales and is more affordable. Therefore, the strategy will be guided by an overarching vision to deliver an energy system that delivers on our climate and nature goals, retains value within Wales, and is more affordable and resilient.
Renewable energy will be crucial as the sources of energy that Wales uses change, including innovative technologies such as tidal stream and tidal lagoons. An energy system cannot depend on variable generation alone. We need wind, solar and marine generation supported by storage of energy, stronger networks and firm, flexible, low-carbon capacity that is responsive to demand. We must reduce reliance on unabated fossil fuels without related carbon capture and storage, while maintaining security of supply, including through targeted roles for carbon capture and storage, low-carbon hydrogen and bioenergy, where they make a clear and sustained contribution.
At its heart, this strategy is about building an energy system that is cleaner, more affordable and is increasingly owned in Wales and by Wales—an energy system that can drive economic renewal, support nature recovery and retention of more of the value created by Welsh resources for the people of Wales.
The infrastructure required for the transition will lead to change, including impacts that cannot always be avoided. Our responsibility is to take decisions based on robust evidence, consistent with the Well-being of Future Generations (Wales) Act 2015.
Our new national energy strategy will set the strategic direction for this Government's approach to energy, making clear what Wales can deliver and achieve directly, with a national energy delivery framework turning that direction into a more detailed programme of work. It will set out the actions needed to support our productivity mission and to meet our carbon budgets.
We'll also make clear our asks of the UK Government, of Ofgem, of the National Energy System Operator and of others if decisions are outside our direct control. There is already a substantial programme of work under way. The purpose of the strategy is to provide a clear direction for that work and to ensure it delivers on this Government's priorities. We will be engaging and consulting as policy is developed.
We propose an evidence-based and pragmatic view to increase the responsible deployment of sustainable low-carbon energy technologies. A plan-led approach will help us to avoid impacts on irreplaceable unique habitats and high-quality agricultural land, mitigate effects on protected sites and identify opportunities for energy projects to support nature recovery.
To support this, we intend to replace and change the present target with an emissions-based energy target. This revised target will mean that energy ceases to be treated as renewable electricity policy solely, or as climate policy alone, and will instead be set within a whole-system vision. This will provide a more complete measure of progress towards our carbon budgets and will better reflect the role of energy in decarbonising buildings, heat networks, transport and industry. Alongside this, we will revise our local ownership target so that it supports our ambition to retain more value from the energy transition within Wales.
Energy should not be treated solely as a climate issue. It is essential economic infrastructure and is central to our ambition to improve productivity and drive reindustrialisation in Wales. Our objective is not simply to decarbonise the economy, but to use the energy transition to strengthen Wales's competitive position, to attract investment, to support strategic industries and to create high-quality jobs. Energy should be used as a competitive advantage to ensure that Welsh businesses prosper. We'll be setting out actions that will ensure that we retain that value in Wales.
A reliable and increasingly low-carbon energy system can give businesses confidence to invest and grow, can support our industrial base, as well as attracting new investment and creating skilled long-term employment. That means identifying strategically important energy projects, aligning provision with major demand centres and industrial clusters, and developing the skills and supply chains needed to turn investment into high-value jobs and stronger communities.
Clean energy must be developed with and for the people and communities of Wales. Local and shared ownership can retain more economic value, strengthen community resilience and give people a meaningful stake in that transition. Communities should not simply host new infrastructure. They should have genuine opportunities to shape projects and benefit through ownership, through investment, through employment and through long-term community value. We've started the process of gathering evidence on community ownership through our consultation on proposals for a single national public energy company owned by the people of Wales, and we encourage the people of Wales, businesses, community organisations and other interested parties to take part in that consultation. We are already considering other opportunities on how to develop this policy in terms of mandating processes, and we will be seeking further evidence and consulting on such matters once we have clarity on the targets.
We will publish a high-level national energy strategy during November. It will be developed alongside strategic planning by the National Energy System Operator, and will be grounded in Wales's priorities and evidence. Delivery will require collaboration across the Government. Decisions related to housing, transport, planning, the economy, agriculture and industry all affect future energy demand, and the strategy will connect those decisions rather than treating them separately.
The transition facing us is substantial, but so too is the opportunity. The national energy strategy will provide the direction and the discipline needed to create a cleaner, more secure energy system that supports productivity, sustainable industry and good quality jobs. Our objective is clear: clean energy, owned by Wales and more affordable, delivered responsibly and developed with the people and communities of Wales. I look forward to working with Members, communities, the industry and partners across Wales as we take this work forward.