There are several key national strategies that provide the framework for how the UK (and its regions) can move towards reducing the environmental impact of energy use and become a low carbon economy. The most recent are listed below (latest shown first) or visit the Department of Energy and Climate Change (DECC) website for further information:-
Energy policy of the UK Coalition Government
Charles Hendry, Minister for Energy, speaking at Chatham House, 8 June 2010 said: "We see low carbon technologies as the way forward to meet our climate change commitments, but also to enhance our energy security. Our goal is to make Britain the most attractive place to invest in energy, to provide secure, low carbon energy we need to keep bills affordable."
Carbon Budgets
The Climate Change Act 2008 established a new approach to managing and responding to climate change in the UK. The Act created a legally binding target to reduce the UK’s emissions of greenhouse gases (GHGs) to at least 80% below 1990 levels by 2050. To set the UK's trajectory to 2050 a carbon budgeting system which caps emissions over five year periods, with three budgets set at a time, has been introduced.
In its December 2008 report the Committee on Climate Change (CCC) advised on the level of the budgets for 2008-2012, 2013-2017, and 2018-2022. The Government accepted this advice. In April 2009 it announced carbon budgets and these passed into legislation in May 2009. The budgets are:
• Budget 1. 2008 - 2012: 3018 MtCO2e representing a 22% cut on 1990 levels
• Budget 2. 2013 - 2017: 2782 McCO2e representing a 28% cut on 1990 levels
• Budget 3. 2018 - 2022: 2544 McCO2e representing a 34% cut on 1990 levels
In line with the CCC's advice, the Government does not intend to use offset credits to meet these legislated budgets. It has legally committed to this for the first budget in the Climate Change Act.
Click here for link to CCC's: Carbon Budgets web page.
UK Low Carbon Transition Plan
- includes key role for SW region
A comprehensive plan to move the UK onto a permanent low carbon footing and to maximise economic opportunities, growth and jobs was published by the Government on 15 July 2009. The UK Low Carbon Transition Plan plots out how the UK will meet the cut in emissions set out in the budget of 34% on 1990 levels by 2020. A 21% reduction has already been delivered – equivalent to cutting emissions entirely from four cities the size of London.
The UK is the first country in the world to set itself legally binding 'carbon budgets'. Under the Climate Change Act 2008 emissions of greenhouse gases are constrained in each successive five year period. The Transition Plan sets out how the UK will cut emissions by 34% on 1990 levels by 2020 from the main emitting sectors – power, homes, workplaces, transport and agriculture – on the way to
achieving a reduction of at least 80% by 2050. Every government department has (on 15 July) been allocated its own carbon budget, as the Government pilots a new system to run alongside financial budgets. Departments will have to live within these when taking major policy decisions and also for managing their own buildings.
Transforming the country into a cleaner, greener and more prosperous place to live is at the heart of the Government's economic plans for Building Britain’s Future and ensuring the UK is ready to take advantage of the opportunities ahead. The Government stated that by 2020:
• More than 1.2 million people will be in green jobs;
• 7 million homes will enjoy pay-as-you-save home energy makeovers, and more than 1.5 million households will be supported to produce their own clean energy;
• 40% of electricity will be from low carbon sources, from renewables, nuclear and clean coal;
• We will be importing 20-30% less gas than we otherwise would;
• The average new car will emit 40% less carbon than now.
The Transition Plan seeks a cost effective route to reducing carbon and therefore aims to keep the overall impact on the consumer to a minimum. The intention is for no immediate impact on bills as most new policies kick in beyond 2015. By 2020, the impact of ALL climate change policies, both existing and new, will be to add, on average, an additional 8% to today’s household bills. The Plan includes greater powers for
the regulator Ofgem to protect the consumer and new resources for discounts off the bills of the poorest households.
To see the Low Carbon Transition Plan on the DECC website including other related announcements click here: LCTP - DECC.
Also announced by the Government on 15 July '09:
• the UK Low Carbon Industrial Strategy which sets out a series of active government interventions to support industries critical to tackling climate change by targeting key industries and regions where the UK has competitive or commercial advantage, including offshore wind, marine power and carbon capture and storage. This includes making the South West the first low carbon economic area*;
• the Renewable Energy Strategy which maps out how we will deliver the UK’s target of getting 15% of all energy (electricity, heat and transport) from renewables by 2020;
• the Government’s Low Carbon Transport Plan which sets out how to reduce carbon emissions from domestic transport by up to 14% over the next decade.
*The South West will become a world centre for wave energy under new plans announced by the Government on 15 July 2009. The Low Carbon Industrial Strategy will include £85m of public investment to make the South West the UK’s first Low Carbon Economic Area, building on regional business opportunities and skills. £9.5m of low carbon strategic investment funding will secure the go-ahead for the Wave Hub sub-sea socket off Cornwall
and a further £10m to support other strategic marine energy projects. There is also £6m of funding to explore the potential of geothermal energy in the UK and the South West is a strong contender for the funds, hosting several possible suitable hot rock sites.
The Government also published on 15 July 2009 a response to the Severn tidal power consultation held earlier this year – confirming more work on the impact of three barrages and two lagoons and cash to bring forward the development of three embryonic Severn proposals, including two types of tidal fence and a low-head barrage using a new turbine design. Once further information on the environmental, social and regional impacts of the shortlist of schemes is
available, there will be a second public consultation (likely in 2010) on whether the UK should look to build a Severn tidal power scheme. For further details click here: Severn Tidal Power (DECC website).
Climate Change Act 2008 - the first of its kind in the world. It was enacted on 26 November 2008 and sets out a framework that will put Britain on the path to become a low-carbon economy.
Key points in the Climate Change Act 2008 include:
• Legally binding targets: Greenhouse gas emission reductions through action in the UK and abroad of at least 80% by 2050, and reductions in CO2 emissions of at least 26% by 2020, against a 1990 baseline. The 2020 target will be reviewed soon after Royal Assent to reflect the move to all greenhouse gases and the increase in the 2050 target to 80%.
• A carbon budgeting system which caps emissions over five year periods, with three budgets set at a time, to set out our trajectory to 2050. The first three carbon budgets will run from 2008-12, 2013-17 and 2018-22, and set by 1 June 2009. The Government must report to Parliament its policies and proposals to meet the budgets as soon as practical after that.
• The creation of the Committee on Climate Change (CCC), a new independent, expert body to advise Government on the level of carbon budgets and where cost effective savings could be made. The Committee will submit annual reports to Parliament on the UK’s progress towards targets and budgets.
• International aviation and shipping emissions - the Government will include international aviation and shipping emissions in the Act or explain why not to Parliament by 31 December 2012. The CCC is required to advise the Government on the consequences of including emissions from international aviation and shipping in the Bill’s targets and budgets. Projected emissions from international aviation and shipping must be taken into account in making decisions on carbon budgets.
The Energy Act 2008, was enacted on 26 November 2008. It contains the legislative provisions required to implement UK energy policy following the publication of the Energy Review 2006 and the Energy White Paper 2007. This policy is driven by the two long-term energy challenges
faced by the UK: tackling climate change by reducing carbon dioxide emissions, and ensuring secure, clean and affordable energy.
Insulating Britain's homes - Government announced its aim for all of Britain's homes to be insulated, where practical, by 2020 on 11 September 2008 when a £1 billion package was launched which would enable households to take advantage of help that could save them over £300 every year on their energy bills.
Meeting the energy challenge (the 2007 Energy White Paper) - published 23 May 2007. This provides the Government's strategy for greater energy efficiency and a secure, low carbon energy mix for the long-term. Measures include:
- free smart meters on request, to show homeowners how much electricity they use (everyone to have a smart meter within 10 years);
- working with industry to "phase out" inefficient goods and energy-consuming standby switches;
- more demanding environmental standards for new build homes and other products (the Government wants all new homes to be zero carbon by 2016 if practically possible);
- a three month deadline for Government consent decisions on large scale energy projects, pending more radical reforms set out in the Planning White Paper; and
- simplification of the energy market and licensing arrangements to assist microgenerators to sell excess electricity.
By 2015, the Government expects 15% of electricity supplies to come from renewable sources - triple the amount it provides today. Also announced in the White Paper was a public consultation on the Government’s preliminary view that it is in the public interest to give private sector energy companies the option of investing in new nuclear power stations. Energy companies were subsequently invited to bring forward
plans to build and operate new nuclear power stations as part of the UK's strategy for a secure, diverse, low carbon energy mix.
The Carbon Reduction Commitment Energy Efficiency Scheme (CRC - formerly the Energy Performance Commitment) applies mandatory emissions trading to cut carbon emissions from large commercial and public sector organisations. It covers around 10% of the UK economy wide emissions, and provides incentives for organisations to save money through energy efficiency. CRC came into force from April 2010 (based on
consumption in 2008) for business and public sector organisations consuming more than 6,000 MWh of half-hourly metered electricity.
Secure energy supplies. - In 2006 the Government announced that it was to take steps to ensure it had the right framework for companies to invest to maximise production from UK oil and gas reserves, and to invest in new energy infrastructure and power stations in a timely way.
It will also continue international pressure to liberalise markets in the EU and ensure open and competitive access to energy reserves
elsewhere in the world.
The Energy Act 2008 (November 2008) implements the legislative aspects required for this.
The Stern Review of the economics of climate change - This major report of international significance was published on 30 October 2006. It examined the impacts and risks arising from uncontrolled climate change, and on the costs and opportunities associated with action to tackle it. The
report described climate change as the greatest market failure the world has seen and identified three elements of policy that are required for an effective response:
(1) carbon pricing, through taxation, emissions trading or regulation, so that people are faced with the full social costs of their actions. The aim should be to build a common global carbon price across countries and sectors.
(2) technology policy, to drive the development and deployment at scale of a range of low-carbon and high-efficiency products, and
(3) action to remove barriers to energy efficiency, and to inform, educate and persuade individuals about what they can do to respond to climate change.
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There are several key European strategies that provide the framework for how Member States can move towards a low carbon economy. These are listed below (in date order, most recent first) and further details can be found on the EC Energy website.
EU 20/20/20
A package of measures aimed at cutting greenhouse gas emissions by 20% by 2020 compared to 1990 was approved by EU leaders in December 2008. Passed by the European Parliament, the package includes efficiency measures to cut energy consumption by 20% by 2020 relative to 1990 and brings in a key Directive to deliver a 20% energy contribution from renewable energy by 2020 – leading to the term ‘EU 20/20/20’. Agreements on the
funding of carbon capture and storage (CCS), car emissions and road fuel were also reached.
EU leaders agree binding renewable energy targets & a ban on filament lighting by 2010
On 8 March 2007 the 27 EU Member States agreed to a 20% target for renewable fuel use by 2020. This is a binding target but the plan does allow flexibility in how each member state contributes to the overall EU target. EU leaders also agreed to cut carbon dioxide emissions by 20% from 1990 levels by 2020. The measures could
include a ban on filament light bulbs by 2010, forcing people to switch to fluorescent bulbs.
EU climate change proposals announced
European Commission President Jose Manuel Barroso announced plans to make Europe "the first economy for the low-carbon age" on 23 January 2008. The plans contain proposals to implement the decisions agreed by EU Heads of State and Government at the 2007 Spring European Council, including a 20% reduction in EU greenhouse gas emissions by 2020, increasing to 30% when
there is an international climate agreement; 20% of total EU energy consumption to come from renewables by 2020; and measures to support the development of carbon capture and storage (CCS) including up to twelve CCS demonstration projects. Mr Barroso put the cost at 60bn euros a year until 2020. It would mean a rise in electricity prices of 10-15% but there would be less reliance on energy imports.
The proposals also put the EU Emissions Trading Scheme (ETS) at the heart of EU climate policy, including establishing an EU-wide central cap on emissions covered by the EU ETS to 2020 and beyond.
For the UK, the Commission’s proposals include:
• A reduction of 16% in UK greenhouse gas emissions from sectors not covered by the EU ETS by 2020 from 2005 levels;
• For 15% of the energy consumed in the UK to come from renewable sources by 2020;
• For 10% of road transport fuels to come from renewable sources, subject to them being produced in a sustainable way.
For further information see the EU press statement with the Member States' legally binding targets for 2020 (external site).
Common EU Energy Policy - more security, less pollution
In January 2007 the European Commission tabled proposals for a common energy policy to improve energy supply security in Europe while combating climate change and
making industry more competitive. The Commission sought to provide solutions to those challenges based on three central pillars:
1. A true Internal Energy Market
2. Accelerating the shift to low carbon energy
3. Energy efficiency
The Energy Services Directive
This Directive was introduced in April 2006 to enhance the cost effective improvement of energy end use efficiency in Member States.
It covers all forms of energy and fuel, including electricity, natural gas, liquefied petroleum gas, coal, heating oil, biomass and transport fuels (except aviation and bunker fuels).
The Directive applies to providers of energy efficiency measures, energy distributors, distribution system operators and retail energy sales companies; and all energy users except those involved with the EU carbon emissions trading scheme.
The main requirements of the Directive are:
• national indicative energy savings target of 9% by 2017;
• public sector to fulfill an exemplary role in meeting the target;
• Member States required to place obligations on energy suppliers and distributors to promote energy efficiency;
• requirements on metering and billing to allow consumers to make better informed decisions about their energy use.
European Union Emissions Trading Scheme (EU ETS)
The EU ETS is one of the policies being implemented across Europe to reduce emissions of carbon dioxide and combat the serious threat of climate change.
Phase I of the Scheme began on 1 January 2005 and ran until 31 December 2007. Phase II runs from 2008-2012 to coincide with the first Kyoto Protocol commitment period. For further details
on the Environment Agency's website, click here: EU ETS - Environment Agency.
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