Argus Media Limited

03/30/2023 | News release | Distributed by Public on 03/30/2023 07:31

UK’s revised net zero plan still lacks finished policy

The UK government has set out a revised net zero plan to ensure the country hits its legally binding target of net zero by 2050, but much of the progress hinges on roadmaps and consultations that are set for release later this year.

The government was legally required to update its net zero strategy by the end of this month, after a High Court ruling last year.

The UK plans to tackle the so-called energy trilemma by moving away from fossil fuels to "cheaper, cleaner, domestic sources of energy", the government said today. And it recognised that significant amounts of funding from the private sector is required.

"The policies and ambitions we have committed to will help leverage around £100bn ($124bn) of private investment", it said. Investors have long called for policy certainty before they are able to mobilise funding for developing energy transition technologies.

"We do not wish to participate in a discriminatory subsidy race… Our focus is on responding to investor and industry calls to provide the long-term certainty, strategic de-risking, and confidence, they need to invest in the technologies and infrastructure necessary," the government's strategy noted. A series of net zero investment roadmaps, published by sector, will be launched this year, it added. Innovation will be key, as "a significant proportion of technologies we will need for 2050 are currently at the demonstration or prototype phase", it said.

The UK will stick to its plan to decarbonise the power sector by 2035, but roadmaps and consultations on solar, nuclear and hydrogen will come later this year, as will an action plan on halving the development time for transmission network projects. Further work on decarbonising industry is also promised, ranging from more support for energy efficiency to a long-awaited biomass strategy, due this year.

The government is addressing planning bottlenecks, which slow renewables deployment, but it expects that further reform will be required. "We are looking closely at what other countries have done to speed up infrastructure deployment, including recent developments in Europe", the government said today.

Carbon capture and storage inches forward

The government detailed some progress on the UK's carbon capture and storage (CCS) industry, which remains at a very early stage of development. The results of last year's tender for CO2 storage licences will be announced in April, while eight projects will advance to further negotiations as part of the "Track 1" cluster, which aims to deploy two CCS clusters by the mid 2020s. The government today also called for submissions for its Track 2 scheme, which plans for two further new CCS clusters in operation by the end of the decade.

And some engineered greenhouse gas removal (GGR) projects may be able to apply to the expansion of the Track 1 scheme, as well as to Track 2, the strategy noted. The government also today opened a consultation on carbon leakage and launched separate consultations on mandates for zero emissions vehicles - for implementation next year - and sustainable aviation fuel.

The net zero plan was released alongside an energy security strategy plan, which supports "maximising the production of UK oil and gas". Natural gas will "play a role for years to come", and the government has focused on the electrification of oil and gas infrastructure to drive emissions lower in that sector.

In its response to recent recommendations from member of parliament Chris Skidmore, the government today said it was working to support the electrification of existing oil and gas platforms, but warned that "long lead times for these project mean that the 2030 target is already very ambitious". The sector aims to reduce greenhouse gas emissions by 10pc from 2025, by 24pc by 2027 and by 50pc by 2030, from a 2018 baseline.

It has also stuck to its 2030 date to end routine flaring and venting, despite recent recommendations from member of parliament Chris Skidmore that it be brought forward to 2025.

By Georgia Gratton