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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
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.
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 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.
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.
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.
news update
UK GOVERNMENT REFUSES CLIMATE COMMITMENTS
Climate talks ‘obstacle to Brexit deal’
The UK Government’s refusal to seal climate commitments, within a new deal with the European Union to govern relations after Brexit, has become a major stumbling block in their deadlocked final talks.
While Britain has joined the global Paris agreement to fight climate change and has its own emissionscutting goals, London has refused to make binding commitments in this area within the new deal it is seeking with the EU from 2021. “This creates big problems with the level playing field and is increasingly politically sensitive in the EU,” said a spokesperson for the 27-nation European Commission.
Britain has a legally binding target to reduce its net greenhouse gas emissions to zero by 2050. The Commission is setting the same goal for the bloc. Yet their bust-up over climate provisions in the new deal reflects fundamental differences about the nature of their future relationship.
“Trying to put this into the trade deal is another example of how the EU is seeking to continue influencing domestic UK policies,” complained a British official.
The EU wants to keep Britain closely aligned under a broad deal that includes compliance with product standards developed under the Eco Design directive, covering energy efficiency standards for many products. There are also several existing key directives covering energy end-use, both in buildings and commerce.
But London wants to break away from the EU’s orbit and prefers a trimmed-down trade deal only. The ‘level playing field’ - extensive guarantees of fair competition ranging from labour and climate standards to state aid - is a key EU demand in the talks with Britain, a large economy on its doorstep. Brussels fears that UK imports could otherwise undercut the EU’s cherished single market.
The rift raises the possibility of many future trade disputes over energy and climate-related issues, as Brussels has pledged to impose carbon border costs on imports from countries with less stringent specific climate policies than its own.
Britain’s long-term emissions targets currently do match the EU’s ambitions. But Brussels officials say that - without binding climate commitments within the new EU-UK deal - it is unclear what would happen if one party set a more ambitious emissions-cutting goal, or amended its carbon pricing policies in a way that ended the current “level playing field” on climate policies. • The UK has published 13 separate documents setting out its approach to a post-Brexit relationship with the EU, including an energy document covering carbon pricing. Issued 17 months ago (see EiBI Feb 2019) it stressed that Britain was considering a link between a future national Emissions Trading Scheme (ETS) and the EU’s carbon market. Since then, the UK has continued to insist it is on track to launch its own ETS next January (see page 6) when the Brexit transition period expires, even as it also makes contingency plans for a new interim carbon tax.
US energy use declines in 2019 by 1 per cent
Total energy use in the United States declined by 1 per cent in 2019, partially reversing a significant increase in 2018, according to the American Council for an Energy-Efficient Economy.
Data recently released by the Energy Information Administration reveals that energy savings were spread across every economic sector (homes, commercial buildings, industry, and transportation), but were mostly in electricity produced by coal, along with a small decline in oil use for transportation.
This data precedes the COVID-19 pandemic, and a more significant drop is expected when 2020 data is released at this time next year.
The ACEEE also reveals that if energy use had grown as rapidly as gross domestic product since 1980, it would have been about 220 quadrillion BTUs (quads) last year. Based on studies looking at the different factors involved, ACEEE estimates that energy efficiency accounts for about 60 per cent of the difference between the 100 quads of actual consumption and 220 quads if past patterns had continued. Structural changes, such as shifts toward a more service-oriented economy account for the other 40 per cent.
In other words, energy efficiency over the past three decades is reducing energy use by about 70 quads each year (and growing) – a gigantic achievement. To put this in perspective, this is about the same as the combined annual energy use of Japan, Germany, India, and the United Kingdom.
IN BRIEF
Heat exchangers get WRAS approval SWEP’s Sealix range of brazed plate heat exchangers (BPHEs), have been formally approved by the Water Regulations Advisory Scheme (WRAS). BPHEs are one of the most efficient ways to transfer heat.
Christer Frennfelt, SWEP business development manager, consultant & utility, said: “The approval reinforces our message to customers that SWEP Sealix will help save them money.” Club speaker line up announced The Rumford Club, a social dining and debate club for the built environment, has released its programme of speakers for 2020/21.
Sharon Duffy, head of transport infrastructure engineering at Transport for London, begins the six-strong speaker line up in November. She will be followed by Chris Marsland of Eurosite Power, Simon Wyatt of Cundall, Mike Ryan of Habitat Energy, Dr Phillipa Coan, a behaviour change specialist, and Gary Shanahan of BEIS.
Webinar for water filtration, quality
ENWA Water Technology is to offer a webinar on The Importance of Effective Filtration and Water Treatment for Heating and Cooling Systems.
Taking place from June 15, the webinar focuses on water quality requirements for modern HVAC systems, highlighting the key issues that threaten new build and refurbishment projects and how to reduce these risks. Also, case studies will illustrate the positive impacts of effective water treatment and filtration on performance, resilience and lifespan. Experts will also examine the role of automation, effective control and management and how shortcomings in design and procurement can effect project commissioning and completion. Finally, the impact on lifecycle costs, energy efficiency and the environmental implications of failing strategies will be scrutinised. • Details: mandie.fawkes@enwa.com
news update
Hydrogen has ‘a key future role’
Renewable hydrogen has a key role to play in the UK’s successful transition from fossil fuels to renewables, alongside a huge expansion of wind energy and other clean power sources, according to a new report published from RenewableUK.
“Powering the Future: RenewableUK’s Vision of the Transition” sets out a wide-ranging vision of how the UK’s energy system is set to change between now and 2050, the Government’s target date to reach net zero emissions.
Despite the short-term impacts of Covid-19 on energy use, RenewableUK expects low-cost renewable power to grow rapidly in the next ten years to meet new demand from electric vehicles, low-carbon heating and renewable hydrogen. By 2050, RenewableUK predicts renewables could be providing over three quarters (76 per cent) of the UK’s power needs. The study highlights the huge potential for green hydrogen – hydrogen produced using renewable electricity – as a zero-carbon alternative to fossil fuels like gas or petroleum.
The UK’s mix of high renewable energy capacity and strong climate change policies mean that renewable hydrogen is likely to become cost competitive in the UK faster than in other parts of the world. Renewable hydrogen can be used instead of gas in factories – in heavy industries like steel making - where progress on decarbonisation has been slow to date, as well as heating boilers in homes. Green hydrogen from renewables can also be used to power a turbine in the same way as a combined cycle gas turbine (CCGT) plant currently works, and in hydrogen fuel cells for heavy good vehicles and shipping.
Britons unaware of how to cut carbon
While the majority of Britons see climate change as a major threat that both individuals and the government have a responsibility to tackle, most remain unaware of some of the most effective means of cutting carbon emissions from their daily lives, a major new survey suggests.
An Energy Systems Catapult (ESC) survey of over 2,000 British adults reveals that 75 per cent of people regards climate change a big problem, with 84 per cent believing the government should do something to tackle the issue and 77 per cent claiming individuals should take some responsibility.
But when quizzed on which activities they thought produced the most emissions, there was far less clarity from respondents, the innovation research body found.
While 77 per cent said transport produced climate changing emissions and 67 per cent pointed to air travel, less than half highlighted the role of gas central heating despite this being one of the major contributors to the UK’s greenhouse gases.
The lack of awareness of emissions sources also appears to inform the actions people are taking to curb their environmental impacts. For example, while 86 per cent said they aimed to recycle everything they could and 71 per cent said they were trying to cut down on single-use plastics, far fewer - less than three per cent - had taken more effective actions to cut emissions the research found.
Matt Lipson, consumer insight business lead at the ESC, said these findings indicated that concern about climate change “does not necessarily
A new project has been launched to explore the potential for an integrated and flexible energy system to reduce the cost of reaching the UK’s net zero economy goal by 2050.
Led by the Carbon Trust and supported by Imperial College, The Flexibility in Great Britain project will be carried out by a cross-sector consortium. It will conduct in-depth analysis based on modelling, research and stakeholder interviews to investigate how different sources of flexibility across the heat, transport and power sectors can reduce overall system costs to consumers.
Xxxxxxxx xxxxxxx xxxxxx xxxxx The Covid-19 pandemic has set in on track for growth of around 2 per cent, which would COVID-19 leads to drop in energy investment motion the largest drop in global have been the largest annual rise in spending in six years. energy investment in history, with But after the Covid-19 crisis brought large swathes of spending expected to plunge in the world economy to a standstill in a matter of months, every major sector this year – from global investment is now expected to plummet by 20 fossil fuels to renewables and per cent, or almost $400bn, compared with last year, efficiency – the International Energy according to the IEA’s World Energy Investment 2020 Agency said in a new report. report.
Energy efficiency is suffering too. Estimated “The historic plunge in global energy investment is investment in efficiency and end-use applications is set deeply troubling for many reasons,” said Dr Fatih Birol to fall by an estimated 10-15 per cent as vehicle sales and (left), the IEA’s executive director. “It means lost jobs and construction activity weaken and spending on more economic opportunities today, as well as lost energy efficient appliances and equipment is dialled back. supply that we might well need tomorrow once the
The unparalleled decline is staggering in both its scale economy recovers. The slowdown in spending on key and swiftness, with serious potential implications for clean energy technologies also risks undermining the energy security and clean energy transitions, says the much-needed transition to more resilient and sustainable IEA. At the start of 2020, global energy investment was energy systems.”
UK project to explore potential of integrated, flexible energy system
It builds on Carbon Trust reports from 2016 which identified that the cost of a future energy system in Great Britain could be reduced by £40bn with greater flexibility and the implementation of storage.
translate into understanding the biggest sources of carbon emissions, or the action that will do the most to cut them.
“For example, people understand a clear link between emissions and transport, but they’re less clear on how heating relates to climate change,” he said. “Many people think they’re already doing everything they can. But their efforts don’t necessarily have a big impact from a climate perspective.”
On transport, of those respondents who said they had flown last year, 34 per cent said they would be willing to fly less often. Another 22 per cent also said they would consider switching to an electric car.
The results will inform the debate over the extent to which the public will embrace changes in behaviour to reduce climate risks, which has been triggered by the huge changes in public and business practices undertaken in response to the coronavirus pandemic.
The project’s findings will be published in early 2021 and are expected to inform energy system stakeholders and policy makers’ work on net zero commitments, heat decarbonisation pathways and the rapid transition to low emission transport options.
The consortium represents a broad range of organisations across the energy system including: Bryt Energy, EDF Energy, the Greater London Authority, the Institution of Gas Engineers & Managers, SBM Offshore, Scottish & Southern Electricity Networks, SP Energy Networks, Statera Energy, UK Power Networks, and Western Power Distribution.
