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Leaders call for green recovery A coalition of business leaders has added its voice to the growing demands for governments to examine economic recovery packages to focus on a transition to a low-carbon global economy. The Energy Transitions Commission, which includes a range of business leaders from organisations including Heathrow Airport, National Grid, Saint Gobain and BP, has sent a letter to governments with recommendations on how nations should “unleash massive investment in renewables,” phase out fossil fuels, and incentivise businesses to set net-zero emissions targets. The letter states: “Today, we call on governments of the world to spend economic stimulus spending wisely and invest in the economy of the future. We come from global organisations across the energy, industry, finance and civil society sectors. Our companies and organisations have been impacted by the economic downturn. We are acutely aware of the imperative to support corporates shaken by the crisis and restart the global economy fast. We are also committed to learn the lessons from the COVID19 crisis, which has demonstrated the unpreparedness of the global economy to systemic risks.” Clean energy, low-carbon and digital solutions are fundamental pillars of a better economy: they can improve the quality of the air we breathe, enhance our quality of life, and limit the occurrence of climate-related disasters. They can also underpin new businesses and new jobs: according to IRENA [International Renewable Energy Agency], the cumulative gains for transforming the energy system could reach $98tr between 2020 and 2050, greatly exceeding the related investment costs ($15tr).” One recommendation is the inclusion of “climate conditionalities” into stimulus packages that enable corporates a route to recovery through sustainable actions. These should include defined decarbonisation commitments set for 2030, with an end goal of achieving net-zero emissions by 2050. The packages would also require businesses to disclose climate-related financial risks from 2021.
INSTITUTION CALLS FOR RADICAL INITIATIVES
Every home sold ‘should hit C rating’ The main professional organisation for estate agents and surveyors is demanding that the Government ensure that practically every home sold should achieve a minimum Energy Performance Certificate (EPC) rating of C. Traditionally the least outspoken of construction professionals, the Royal Institution of Chartered Surveyors (RICS) is now demanding radical initiatives to modernise the UK housing stock. A new RICS paper calls on Government to make a “step-change in policies” for decarbonising existing UK housing stock, as people spend more time at home due to the Coronavirus lockdown. Government “must maximise public interest in home improvements to green the entire existing UK housing stock”. Seeking to “provide a blueprint for Government to take forward as part of their resilient recovery from COVID-19,” the new policy
paper highlights how government incentives can promote positive consumer behaviour, and both entice and support more people in making their homes energy efficient. Recommendations are encapsulated in a package of regulatory measures, industry standards, fiscal levels and market insight. These include: • Government must work with sector stakeholders and publish a defined energy efficiency road map, with quantitative targets, investment and implementation plans to achieve a minimum EPC rating of ‘C’; • Government should monitor and ensure that local authorities are
adequately resourced to manage and enforce across their portfolio of building control, minimum energy efficiency standards and EPCs; • Government must engage with industry to improve public awareness of standards and professional competency-based advice and training regarding energy efficiency retrofits and wider home improvement works, especially for heritage buildings which are more complex and present a skills gap in the market; • a uniform VAT rate of 5 per cent for home improvement and repair to houses to enhance energy efficiency, to be carried out by an accredited installer or contractor with a recognised quality mark; and • Government must create long-term policy and regulatory energy efficiency roadmaps to bring confidence to the financial sector, encouraging lenders to invest and develop products to support these ambitions.
Government outlines emissions trading scheme The UK Government is increasing the country’s climate ambitions through new proposals showing how a new UK-wide Emissions Trading System (ETS) would work – putting a cost on carbon pollution to encourage polluters to reduce the amount of greenhouse gases they emit. The system – designed by the UK Government jointly with the Scottish Government, Welsh Government and Northern Ireland Executive – would be a crucial step towards achieving the UK’s target for net zero carbon emissions by 2050. It includes plans to reduce the existing emissions cap by five per cent, going further than the current EU system. The new scheme would replace the EU Emissions Trading System, which the UK will leave at the end of this year as the transition period ends. The system draws on the best of the current system that the UK helped to develop while ensuring it has greater flexibility to work in the best interests of the UK. Once a new system is up and running the government
intends to go even further by amending the cap again in line with its net zero target. Energy Minister Kwasi Kwarteng (left) said: “The UK is a world-leader in tackling climate change, and thanks to the opportunities arising as we exit the transition period, we are now able to go even further, faster. This new scheme will provide a smooth transition for businesses while reducing our contribution to climate change, crucial as we work towards net zero emissions by 2050.” The Government confirmed that the Carbon Price Support will continue to operate at £18 per tonne of CO2 up to 2022. After the Brexit transition period, the UK will aim to apply an “ambitious carbon price” that could be linked to the EU ETS. Elements of the new Emissions Trading System are intended to be familiar to operators and it is designed to ensure a seamless transition at the end of the year. Emissions trading systems work by setting a cap on the total amount of greenhouse gases that can be emitted from energy intensive industries such as steel, the power generation sector and aviation. The cap is reduced over time so that total emissions fall.
European Parliament approves tyre labelling plan The European Parliament has approved a new EU-wide tyre labelling scheme that it hopes will lead to lower emissions. The EU Commission calculates that vehicle tyres, mainly owing to rolling resistance, account for up to 10 per cent of the average vehicle’s fuel
consumption. The new tyre labels will operate an A-E scale for fuel efficiency, resembling familiar EU labelling schemes for household goods. The Commission estimates that the policy could deliver a transport sector emissions cut of up to 10m tonnes per year of carbon dioxide by 2030 as a
result of incentivising consumers to use only the most fuel-efficient tyres. The new labelling rules will apply from May 1, 2021. Road transport currently accounts for 22 per cent of the EU’s emissions. It is not clear whether the UK intends to comply with these higher standards.
06 | ENERGY IN BUILDINGS & INDUSTRY | MAY / JUNE 2020
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