UK Energy Policy
Philip Pearsonwww.tuc.org.uk
2008 Climate Change Act Legally binding targets
◦34% cut in CO2 emissions 2020◦60% by 2030◦80% 2050
Independent Committee on Climate Change◦4 x 5-year Carbon Budgets
UK Energy Policy Framework
2012: 574 MtCO2e
2030: 310 MtCO2e ◦ = 60% reduction on 1990. ◦= 46% reduction over the next 20 years ◦= 62% cut 2030 -2050 to meet 2050
target.
UK – carbon budget cuts
Energy supply: energy mix and CO2 intensity
Surface transport: road • Domestic Energy Efficiency • Industrial Energy Efficiency
Greatest effort needed - 4 priority sectors
Power = 25% UK greenhouse gases £110bn investment needed C02 target for 2013 Energy Act:
◦2030 = C02 intensity 50-100g ◦2012 = 500g CO2 KWH
New Energy Legislation 2013
Energy: Policy vs political risk
Policy Risk
2020 RE target: 15% energy/30% electricity
CCS [4 pilots] for coal & gas &industry
Coal plant closures New nuclear “dash for gas” Green Investment
Bank EU = ETS reforms
“Greenest government ever”
RE hostility◦ Public investment◦ Balance Regulation vs
Market Austerity > GIB Lobby
◦ Investors “gaming”◦ Oil & gas lobby
Anti-EU
TUC Energy Policy in Transition
Energy Industry
“Balanced” energy supply – renewables, new nuclear, CCS for coal & gas
Green Investment Bank CO2 tax/floor price FITs No to shale gas “Green Deal” domestic
energy
Greening the workplace Skills for low carbon
economy Energy intensive
industries CCS – regional networks On-site power
generation Low carbon vehicle
manufacture
Yorkshire 60 MT C02 carbon cluster Regional CCS network: CO2 Sense Reliable/flexible low carbon energy supply. “Industrial security” Low-carbon economy/jobs. Developing key skills and expertise. Attracting direct investment.
CCS: power & industry clusters
“Carbon price floor” 2020 (£30/tCO2) 2030 (£70/tCO2)
“is consistent with longer-term emissions targets and should strengthen incentives for
emission reductions.” [CCC] Recycling revenues?
UK carbon tax
14
Carbon Revenue Forecast
Total revenue between 2013 and 2027 is £64bn (£11bn CPS)
20112013
20152017
20192021
20232025
2027£.0 Bn
£1.0 Bn
£2.0 Bn
£3.0 Bn
£4.0 Bn
£5.0 Bn
£6.0 Bn
£7.0 Bn
£8.0 Bn
.4 .4
1.9 2.0 2.2 2.3 2.5 2.7 2.9 3.0 3.3 3.6 4.1 4.7 5.2 5.7 6.2
.4 .5 .6 .7 .7 .7 .8 .81.0
1.0.9
.8.7
.7.6
EUETS Revenue Carbon Price Floor Revenue
Year
Re
ve
nu
e (
£b
n)
“Just Transition” in practice
Greening the workplace Green Economy Council
◦ Energy Intensive Industries Skills◦ Investment◦ Energy Roundtable
Social partner initiatives & campaigns◦ Clean Coal Task Group◦ Energy Intensive Industries◦ Renewable energy
www.tuc.org.uk – go to Green Workplaces