Climate change mitigation - National Responses (United Kingdom)

The Stern Review noted that the costs of moving to a low-carbon economy could be minimised with a policy framework that is credible, predictable and flexible, and that is built around three elements:

·         establishing a carbon price associated with the emissions of greenhouse gases, so that businesses and individuals are able to factor the cost of damage caused by climate change into their decisions;

·         encouraging innovation in low-carbon technologies and infrastructure through policies that address separately the market failures associated with innovation; and

removing or overcoming barriers that may prevent or deter individuals and businesses from taking cost-effective action to reduce their emissions, particularly on energy efficiency

The Climate Change Act 2008[1] has created a new approach to managing and responding to climate change in the UK. At the heart of the Act is a legally binding target to reduce the UK’s greenhouse gas emissions to at least 80 per cent below 1990 levels by 2050, to be achieved through action at home and abroad. To drive progress towards this target, the Act has introduced five year “carbon budgets”, which define the emissions pathway to the 2050 target by limiting the total greenhouse gas emissions allowed in each consecutive five year period.

The first three carbon budgets[2] – for 2008-12, 2013-17, and 2018-22 – were set in law in May 2009. In setting them, the Government took into account the advice of the independent Committee on Climate Change (CCC) established under the Act to advise the Government on setting carbon budgets and to report to Parliament on the progress being made in reducing greenhouse gas emissions. The CCC published its second annual progress report[3] at the end of June 2010 and the Government’s response was published in October 2010.[4]  

The Low Carbon Transition Plan[5], published in July 2009, set out how these carbon budgets will be met, as required under the Climate Change Act . By 2020, it is estimated that UK emissions will be reduced by more than one third as required to meet the 2020 reduction target in the Act - to reduce emissions by at least 34 per cent below the 1990 baseline. The carbon budgets will be tightened further in the event that the EU adopts a 30 per cent 2020 emissions reduction target.  

The  Renewable Energy Strategy[6], published alongside the Transition Plan, set out how the UK will increase the use of renewable energy for heat, electricity and transport to meet the target to ensure 15 per cent of our energy comes from renewable sources by 2020. This target is very ambitious; it is almost a seven-fold increase in the share of renewables in scarcely more than a decade. Our lead scenario suggests that the UK could see more than 30 per cent of our electricity being generated from renewables, up from about 5½ per cent today; 12 per cent of our heat being generated from renewables, up from very low levels today; and, 10 per cent of transport energy coming from renewables, up from the current level of 2½ per cent of road transport energy consumption.

All sectors of the economy will need to play a part in meeting carbon budgets, through decarbonising electricity generation, improving energy efficiency in buildings and industry, and improving the fuel efficiency of road vehicles. The Government has acted to further strengthen the policy framework in a number of areas and set out thirty two action points on climate and energy policy in the first ever Annual Energy Statement made in July 2010.[7]  These  included a commitment to seek EU agreement to adopt a 30 per cent emissions reduction target by 2020, tackling the barriers for investment in energy efficiency measures in both homes and businesses by launching a “Green Deal” and intent to roll out “smart meters” more rapidly than previously announced, an electricity market reform project, with a public consultation in autumn 2010 to assess the role that carbon price support, emissions performance standards, a revised renewables obligation, Feed-in Tariffs, capacity mechanisms and other interventions could play in a coherent, durable, system that supports the delivery of an affordable, secure, low carbon energy mix. In October 2010, under the auspices of the comprehensive spending review, the Government announced investment of up to £1 billion in a commercial scale carbon capture and storage demonstration project,  investment in wind turbine research and development, and the upgrading of offshore wind manufacturing facilities at ports sites as well as increased incentives for low carbon energy generation through the Renewable Heat Incentive – all aimed at assisting in the delivery of long term decarbonisation of the UK economy.

Looking ahead, the Government announced that it will set out in full how each individual Government department’s policies will contribute to meeting emission reduction targets and carbon budgets in a government wide carbon plan to be published in 2011.

While the UK Government has overall responsibility for ensuring a programme is in place to deliver the UK’s Kyoto target and carbon budgets, the Devolved Administrations – the Scottish Government (delivery plan), Welsh Assembly Government (strategy), and the Northern Ireland Executive (strategy) – play their part in meeting these targets. The approach taken by each administration will differ, drawing on the range of policies at their disposal.