3rd NOVEMBER 2015
GREEN TUESDAY • Data Management • Legislation • Compliance
A Unique Perspective
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A Unique Perspective | Green Tuesday | 03.11.2015
UK: Government responds to Committee on Climate Change’s progress report On 15 October 2015, the Department of Energy and Climate Change (DECC) published the government’s response to the Committee on Climate Change’s (CCC) seventh progress report published under the Climate Change Act 2008. The document sets out the government’s response to the CCC’s main recommendations on climate change. It also announces that the government will publish a new greenhouse gas emissions reduction plan, setting out a post-2020 climate framework, towards the end of 2016.
The document sets out the government’s response to the CCC’s main recommendations on climate change
Background: Climate Change Act 2008 The Climate Change Act 2008 (CCA 2008) provides a long-term framework for climate change policy in the UK. It sets a statutory target for the UK to achieve to achieve an 80% reduction in greenhouse gas (GHG) levels (below 1990 levels) by 2050. It creates a system of “carbon budgets”, which set limits on UK GHG emissions, in order to assist the UK in meeting that target. The CCA 2008 set up the Committee on Climate Change (CCC), to advise the government on how best to achieve its targets and on setting carbon budgets. Section 36 requires the CCC to publish annual progress reports to Parliament setting out its views on progress made towards achieving the various carbon budgets and on the 2050 target. It published its seventh progress report in June 2015, which warned that the UK risked failing to meet its carbon targets for the mid-2020s.
The Climate Change Act 2008 (CCA 2008) provides a long-term framework for climate change policy in the UK
Government response to CCC progress report On 15 October 2015, the Department of Energy and Climate Change (DECC) and the Department for Environment, Food and Rural Affairs (Defra) published the government’s response to the CCC’s seventh progress report. The document sets out the government’s response to the CCC’s main recommendations on climate change. It sets out how the government will continue to work on climate change mitigation and adaptation in key areas, and includes the following points:
DECC and Defra have published the government’s response to the CCC’s seventh progress report
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A Unique Perspective | Green Tuesday | 03.11.2015
• Electricity - The government will set out: - its approach to the Levy Control Framework (LCF) beyond 2020. The LCF is a mechanism that caps the total amount of renewable energy subsidies that are paid for through consumers’ energy bills, for the period to 2020-21; and - plans for future Contracts for Difference (CFD) allocation rounds, in autumn 2015. • Buildings - The government recognises the need for a stronger long-term plan to address low-carbon heat. However, the response document confirms that: - - -
decisions on the future of the Renewable Heat Incentive (RHI) are a matter for the Spending Review. the government will not implement the zero carbon homes standard; and the government will not develop a strategy to address future residual risk of flooding at this time.
• Transport - The government’s aim is for almost every car and van to be a zero emission vehicle by 2050. • Infrastructure - The government is committed to delivering on its National Infrastructure Plan, which sets out a strategic vision for UK infrastructure and outlines clear delivery plans for each of the key economic infrastructure sectors.
The LCF is a mechanism that caps the total amount of renewable energy subsidies that are paid for through consumers’ energy bills
The government’s aim is for almost every car and van to be a zero emission vehicle by 2050
• Land and water management - The government has committed to extend the life of the Natural Capital Committee until at least the end of this Parliament.
Next steps: Government will publish a new greenhouse gas emissions reduction plan The CCA 2008 requires the government to set the fifth carbon budget by the end of June 2016.
The CCA 2008 requires the government to set the fifth carbon budget by the end of June 2016
It has also announced that it will publish a new GHG emissions reduction plan towards the end of 2016, which will set out a post-2020 framework for climate change. The new emissions reduction plan will include: • The level of support for low-carbon technologies in the power sector. • How the government will tackle GHG emissions from buildings. • The government’s next steps on electric vehicles.
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A Unique Perspective | Green Tuesday | 03.11.2015
EU: ETS reform: A real chance for Carbon Capture and Storage (CCS) Earlier this month, the European Parliament adopted a report on “Towards a new international climate agreement in Paris”, in which it calls on the European Commission to link the EU’s Emission Trading System (ETS) with other emission trading systems around the world. The EU ETS isn’t just an EU policy issue, it’s about making sure we can mitigate enough carbon emissions to keep global warming under the threshold of 2 degrees.
The European Parliament calls on the European Commission to link the EU’s Emission Trading System with other emission trading systems around the world
In order to reach the target of reducing emissions by 40% by 2030 and the 2050 objective of an 80 - 95% reduction, the EU ETS must drive cost-effective emissions reductions and promote investment in low carbon technologies at the same time. Reforming the EU ETS, as outlined in the Commission’s proposal, is essential. Incentives for investing in low-carbon technologies in the power sector and in energy-intensive industries clearly need to be adjusted. Deep decarbonisation of energy intensive industries is currently only possible with CCS. A reformed EU ETS should stimulate a more predictable and meaningful carbon price and enable the commercial-scale deployment of CCS technologies. Access to CO2 transport and storage infrastructure remains a key barrier to commercial-scale CCS projects in the European Union. Such funding mechanisms will therefore need to be sufficiently flexible to drive the development of CCS projects and the uptake of corresponding infrastructure. They should also be complementary, to enable most efficient use of the available funds.
Access to CO2 transport and storage infrastructure remains a key barrier to commercial-scale CCS projects in the European Union
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