The UKs approach to Low Carbon Development

Libby Townshend First Secretary British Embassy Beijing

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050s Pathways Analysis 5. Electricity Market Reform

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050s Pathways Analysis 5. The EU context

 10% of England, Scotland and Wales National Parks; 1 million members of the Royal Society for Protection of Birds

 1989 - Margaret Thatcher first leader to raise climate change as an important issue for the international community

 1997 UK plays a key role in securing the Kyoto Protocol Note: UK green house gas emissions in 2009 about 26% lower than 1990 levels Kyoto target to reduce by 12.5% below 1990 levels)

 2002 - UK piloted first multi-industry emissions trading scheme EU ETS now makes largest contribution to cutting UK ghg emissions

 2005 Tony Blair makes climate change an issue for leaders for the first time by putting it at the top of the agenda for the UKs G8 Presidency.

 2008 - Climate Change Act worlds first legally binding framework to tackle climate change strong cross-party support illustrated by final vote in the House of Commons (463 in favour, 3 against).

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050s Pathways Analysis 5. The EU context

2008 Climate Change Act

Two aims to improve domestic carbon management; to demonstrate international leadership Key provisions of the Act
A legally binding target of at least 34% cut in ghg emissions by 2020 and at least 80% cut 2050, against a 1990 baseline. The creation of the Committee on Climate Change an independent expert body to advise the government on the carbon budgets. A carbon budgeting system to cap emissions over 5 year periods; 3 budgets set at a time to keep the government on track. 4th carbon budget (2023-2027) agreed to 50% reduction.

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050s Pathways Analysis 5. The EU context

The Greenest Government ever

Green Investment Bank Carbon Price Floor Commitment to 4 CCS Demonstration plants Incentivise the Green Deal

Green Investment Bank

Aim to finance the investment in low-carbon infrastructure in the UK Bank will take on risk that the market cannot finance Renewables likely to be an early priority Initial capitalisation of 3 billion Begin operating in 2012-13 a year earlier than planned Borrowing powers from 2015-16

Carbon Floor Price

To provide a stronger, more stable signal to investors in energy infrastructure. Introduced April 2013 Electricity generating companies required to pay 16 per tonne of CO2; rising to 30 per tonne in 2020. Drive investment in the low carbon power sector with modest increase in customer bills (50p per month in 2013)

Carbon Capture and Storage

4 CCS demonstration plants First will receive 1 billion capital funding largest public funding contribution to a single CCS plant Other 3 funded from general taxation

The Green Deal

of UK CO2 emissions come from heating homes and businesses Revolutionise the energy efficiency of British homes will start Autumn 2012 Private firms to offer consumers energy efficiency improvements to their homes / businesses No up-front costs. Firms re-coup payments through a charge on consumers energy bill

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050s Pathways Analysis 5. The EU context

Where do we get our electricity from?

UK 2050s Pathways Analysis

Need to transform UK economy to achieve 80% reductions by 2050 Analytical tool that examines different scenarios for reaching the target Whatever pathway is chosen, there are a number of actions that are common to achieving the 2050 goal

Common themes to 2050

Reduce energy demand Substantial electrification of heating, transport and industry Trinity of renewables, nuclear and CCS essential Unpredictable renewable generation increases the challenge Need emissions cuts from agriculture, waste, industrial processes and international transport Fossil fuels continue to play a role, but their size will depend on development of CCS

Contents
1. UKs tradition of environmental action 2. UK Climate Change Act 3. The Coalition Governments low carbon actions 4. UK 2050 Pathways Analysis 5. Electricity Market Reform

Electricity Market reform

1/4 of UKs generating capacity will shut down in next 10 years as coal and nuclear power stations close; More than 110 billion needed to invest in new infrastructure; Electricity supply needs to largely decarbonise during 2030s while demand is by 2050 is set to double.
1

Reform package includes:

Carbon floor price; Introduction of new long term contracts to provide incentives to invest in low carbon electricity generation; Emission Performance Standards for new fossil fuel power stations; A capacity mechanism to ensure security of supply; Renewables Roadmap DECC allocating 30 million over next 4 years to support off-shore wind. 1

For more details on all these policies go to

www.decc.gov.uk

Or email libby.townshend@fco.gov.uk