[ Focus: Brexit special ]
Where next for sustainability and renewables? BILL WRIGHT, ECA Head of Energy Solutions, assesses energy policy post-Brexit
E
nergy policy is one of the many areas affected by Brexit that is heading towards an uncertain horizon. We will not know what the future may hold until we reach some sort of agreement with Brussels
itself. But the EU isn’t the only body with influence on UK energy policy – and our track record in the UK in this area is very strong. We currently have a mixture of UK and EU laws and regulations governing the energy market, energy efficiency and renewable power that include the Climate Change Act, The Energy Act, and the Building Regulations. These could be joined by the Paris Agreement on Climate Change which, when ratified, will commit us to worldwide targets, not just EU ones. In addition, the government has announced plans to eventually scrap all EU legislation under the ‘Great Repeal Act’ and immediately transpose it all into UK legislation. If this works (and some EU legislation may be in various parts of domestic law, making this harder to do) then future governments will be able to amend or remove these laws as they believe necessary. EU green regulations and directives which effect UK law, and devolved legislation to Northern Ireland and Scotland, may need to be unravelled, without weakening the UK’s post-Brexit environmental and energy regime. Take, for example, European Directives like the Energy Performance of Buildings Directive (EPBD), which are implemented by each member state and usually interpreted differently. The EPBD is implemented in England and Wales via the Building Regulations and Energy Performance of Buildings Regulations. Directives like the Energy Efficiency Directive (EED) have produced regulations such as ESOS (Energy Savings Opportunity Scheme) in the UK. Other parts of the Directive have implications for billing, metering, monitoring and setting targets for the public sector. A further example is the Minimum Energy Efficiency Standards, in which buildings can only be sold, leased or rented if they are above a minimum energy performance standard. This is part of the Energy Act, but the process uses EPCs (Energy Performance Certificates) brought in by the EPBD. Many landlords would probably prefer these to disappear but they are nevertheless enshrined in UK law.
government has recently committed itself to meet the latest ‘Carbon Budget’ which covers the period 2028 –2032. This means we’ll likely need to comply with current EU legislation which governs energy efficiency and renewable energy targets if we’re going to have a realistic chance of meeting these targets. Overall, the UK has a good track record of implementing environmental and energy policies, driven by global ambitions, domestic policy and EU regulations. It is unlikely this will change – after all, it would be potentially harmful if all the previous work and investment on environmental regulations was sidelined following Brexit. A real post-Brexit challenge will be keeping up with EU legislation if we can no longer influence its formation – especially if the remaining member states diverge from previously agreed aims or targets. In the short term, it is unlikely EU based regulations will be scrapped without a suitable UK replacement. Hopefully our longer-term energy and green ambitions will ensure Britain remains a global leader in renewables and energy sustainability.
A real postBrexit challenge will be keeping up with EU legislation if we can no longer influence its formation
What effect will Brexit have on our sector in the next five years on environmental policy and legislation Very positive Slightly negative
Slightly positive Very negative
11% 4%
No change Don’t know
13%
7% 23%
DELPIXEL / SHUTTERSTOCK
Climate challenges
34 ECA Today Winter 2016
The Climate Change Act (2008) is UK legislation which places legal obligations on the country to reduce emissions by at least 80 per cent from 1990 levels by 2050, still a major strategic challenge. The Climate Change Committee was set up to monitor progress and produce carbon ‘budgets’ every five years which the government should follow. These targets are independent of the EU, although they line up with those set by many other countries. The
42%
Source: ECA/BESA/SELECT Brexit survey, August-September 2016
Winter 2016 ECA Today 35