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Last month the Government announced a surprise cut to the grants available for buyers of new electric vehicles (EVs) and restricted eligibility to only the cheapest models. The cut is the Government’s response to the growing popularity and falling prices of EVs, which threatens to blow the budget of the UK’s grant programme. The design of the grant programme sets up the Government to fail – to be seen as the climate Scrooge in the same year it hosts COP26, constantly intervening to cut support for EVs just as more drivers look to take the plunge.
Negative emissions are piquing the interest of the Government, as shown in its recent announcement of innovation funding for new negative emission technologies (NETs). However, policies based on grants and innovation funding are short-term options – they act as the spark to get the kindling going, but the fire requires continuous government support until the flame catches.
The Government’s post-Brexit “Better Regulation Committee” is reportedly looking at ways to improve on EU regulations.,Policy Exchange’s recent report, Post-Brexit freedoms and opportunities for the UK, is one contribution to that debate.Understandably, most of the focus has been on state aid, financial services and workers’ rights. One area that I think isn’t getting enough attention is energy markets.
New figures show that 2020 was the greenest year yet for the UK’s electricity supply, with nearly 60% of electricity produced by low-carbon sources. Offshore wind is now the driving force behind the UK’s greener grid, growing by around a quarter annually and already providing 17% of our electricity.
This week’s is a substantial document that moves the UK a step closer towards a Net Zero energy system. However, it’s clear that the White Paper is largely about ambition, which leaves a lot for the Government to do in 2021.
Reaching Net Zero requires more than just reducing emissions. To account for processes that will be exceptionally difficult to decarbonise completely (such as steel or cement making), we actually have to remove greenhouse gases from the atmosphere, thereby balancing out at ‘net’ zero.
‘Negative emissions’ technologies (NETs), also known as Greenhouse Gas Removal (GGR) technologies, allow us to do that. They remove greenhouse gases – usually carbon dioxide – from the atmosphere and they are needed to prevent the worst effects of climate change.
The Prime Minister’s green announcement reflects several policies that we’ve championed over more than a decade.
After some key personnel changes at the top, the Prime Minister has begun his administration’s ‘reset’ with a long-awaited 10-Point Plan for a Green Industrial Revolution. The Plan has been broadly praised for its breadth and welcomed as a major statement of intent across multiple technologies. He combined knotty, unglamorous issues such as home heating with big, visionary technologies like CCS and hydrogen.
The Prime Minister’s commitment to 40 gigawatts (GW) of offshore wind by 2030 is a huge undertaking that will galvanise industry to redouble their efforts to deploy clean energy projects. However, despite the scale of the ambition and the falling cost of offshore wind, the UK could also be getting more from a range of energy technologies by helping them to work together. ‘Hybrid’ clean energy projects, such as solar farms working with batteries, have the potential to significantly reduce costs by sharing components, particularly expensive grid connections. Other combinations include wind with hydrogen production or wind with interconnectors.
The next 12 months are hugely important for the UK’s energy and environment policy, with the Government preparing to host the COP26 climate conference in in Glasgow in November 2021 and committing to ‘Build Back Better’ from the Coronavirus pandemic.
Policy Exchange is tracking around 30 milestones for UK energy and environment policies, which we have collated in the timeline below. We plan to update and maintain this timeline with the latest Government announcements, White Papers and consultation documents.
“We believe that in 10 years’ time offshore wind will be powering every home in the country.” This was the Prime Minister’s positive vision for a low-carbon UK that he set out in his Conference speech last week. Rather predictably, this has led to questions about what happens when the wind stops blowing. Not all of this criticism will be in good faith, but there is also a serious point.