The UK Low Carbon Transition Plan

Leila PourarkinSeoul, South KoreaMarch 2010

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Why did we produce a Low Carbon Transition Plan?

What is in it?

How did we do it?

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Why did we produce a low carbon transition plan?

EU legislation

UK legislation

•EU Energy and Climate package

•EU 20% target →UK 34% reduction on 1990 levels

•20% renewable energy by 2020 → UK 15%

•Climate Change Act 2008

•Five-year carbon budgets

•Publish policies to meet budgets

Single statement of climate and energy strategy

Comprehensible plan for business and the public

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First ever legally binding carbon budgets

3 018 MtCO2

2 782 MtCO2

2 544 MtCO2

Carbon Budget 2(2013-2017)

Carbon Budget 3(2018-2022)

Carbon Budget 1(2008-2012)

202034% emissions

reductions

Carbon budgets

Projected emissions including policies in the Transition plan

MtCO2e

The UK will also cut emissions by 80% by 2050

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Why did we produce a Low Carbon Transition Plan?

What is in it?

How did we do it?

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The UK Transition Plan sets out how these carbon budgets will be met

All sectors will contribute to emission savings

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POWER and HEAVY INDUSTRY:The EU Emissions Trading System is at the heart of our strategy

3 objectives:

Pricing carbon1

Setting a cap Certainty on level of emissions 2

Trading allowancesPromote least cost abatement3

The EU ETS started in 2005

UKEU ETS sectors

UKnon-ETS sectors

• Electricity• Iron & steel• Pulp & paper• Industrial processes

EU-wide central cap declining by 1.74% per year

Ambitious targets21% below 2005 levels by 2005

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POWER and HEAVY INDUSTRY:Beyond the EU ETS, other policies are required to meet targets

EU ETS

+

40% of UK’s electricity from low carbon sources in 2020

Renewable electricity Fossil fuel with CCS Nuclear

30% target by 2020 4 new CCS demonstrations

New nuclear power stations by 2018

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TRANSPORT:Achieving 19% emission cuts in 2018-22

European flights part of EU ETS from 2012

Road transport

Increased energy efficiency and more electrification

Making engines more efficient Changing behaviourSupporting low carbon

vehicles

•New EU car emission standards• £30m for low carbon

buses

• £400m to encourage development• 10% of transport energy

from renewables

• £29m for the first ‘Sustainable Travel City’• £145 million for cycling

Rail

Aviation

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HOMES AND COMMUNITIES:Achieving 13% emission cuts in 2018-22

Making homes greener

Carbon Emissions Reduction Target

• Legal obligation on energy suppliers• To date £1bn/yr invested

in households

Community Energy Saving Programme

• Low income communities• Implemented by energy

companies•Delivers whole-house

energy efficiency packages

Pilot ‘Pay As You Save’ Clean energy cash-bash, e.g. Feed-in Tariffs

• Financial support for low-carbon electricity, e.g. First 30,000 combined heat and power

• Removes up-front cost from 500 households• Repayments lower than

saving on bills• Scheme linked to property

Helping people to play their part

Rolling outsmart meters

Developing proactive services

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HOMES AND COMMUNITIES: Helping to make these changes more affordable, especially for the most vulnerable

Impact of these policies = £76 on annual bills, i.e. 6% increase from current energy bills

Help for the most vulnerable households

• Price: creating mandated social price support

• Energy efficiency: Increasing level of grants to vulnerable households

• Income: Winter Fuel Payments and Cold Weather Payments

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• UK low carbon economy could be worth £150bn and employ 1.2 million by 2015

• Up to 500,000 new jobs in UK renewable energy by 2020

delivering

WORKPLACES: Achieving 13% reduction on 2008 levels by 2020

Reduce emissions from workplaces by:

Promoting energy efficiency Providing adviceDriving emission reductions

• EU ETS in heavy industry• Climate Change Levy (CCL) and

Climate Change Agreements (CCA)• Loans to SMEs and public

sector for low carbon technologies

• Carbon Reduction Commitment (CRC): -Targets large non-energy

intensive organisations-Cap and trade

• Carbon Trust provides advice to businesses

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FARMING, LAND-USE and WASTE: Achieving 4% of emission savings in 2018-22

Driving down emissions by:

Research to improve measurement of on-farm emissions

FARMING LAND-USE WASTE

• Encouraging private funding for woodland creation

• Support for anaerobic digestion of farm waste

•More efficient use of fertiliser • Better management of

livestock and manure

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Why did we produce a Low Carbon Transition Plan?

What is in it?

How did we do it?

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How did we do it?

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• A central team of 10-12 people

• Used existing expertise and work

• Coordination and new analysis to ensure all added up:

• Cross-Government: -Central team worked with all departments with an interest-Cross-Government branding

• In six months: late January to mid July 2009

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THANK YOU!

Contact: leila.pourarkin@decc.gsi.gov.uk