The Government is being urged to explain how it plans to fund the transition to net zero as a new report finds that it will likely miss its 2050 targets due to failing to put in place credible investment plans.

A House of Lords Industry Regulators Committee report concluded that there is insufficient policy detail to incentivise the £50bn a year investment required annually to transform the energy system.

It said that the targets have not been matched by policy and the required clarity over financial incentives necessary to unlock the substantial investment needed by businesses and consumers to fund new energy technologies.

The report demanded that the Government act urgently to explain how the transition to net zero will be funded and called for a full range of options for energy investment to be considered.

Martin Dronfield, executive chairman of the East of England Energy Group (EEEGR), said that the report "highlights one of the biggest challenges we face in financing the transition to net zero".

He said: "At a time when the cost of living is rising sharply and gas prices are rocketing in part due to the current Russian Ukrainian conflict, we urgently need more practical solutions to help business and consumers, whilst we continue to invest in new renewable and low carbon energy projects such as offshore wind and nuclear.”

“We need greater support from central government, not just financial, but clearer policies to give businesses and communities confidence in driving their own journey to net zero. Local Government bodies need to play a much greater role. As EEEGR, we will be working with our regional MPs, public bodies, and our member companies to explore what more we can collectively do to address these ‘critical gaps’ in the East of England and beyond.”

Meanwhile, Lord Hollick, Chair of the Committee said that there is "no point" is setting net zero targets if "you haven't got a clue how you will get there or how it will be paid for".

He added: “The amounts that can realistically be raised via surcharges on energy bills is not enough. Bills are regressive as the poor pay more of their income on energy costs; it is also unfair to the current generation as we are asking current billpayers to cover the huge costs of something that is designed to mainly benefit future generations."