Despite some criticism from economists over the methods used to produce quantitative estimates, Sir Nicholas Stern’s economic study is being taken seriously by many as a tool to assist countries with their energy strategy for the first half of this century.

The report’s main conclusion is that around 1% of global GDP is required to be invested per year in order to avoid a colossal negative impact on future world economics. In light of the report’s conclusion, the current UK Government appears committed to leading the international response to tackling climate change, and one tool it has identified to help cut carbon emissions is the adoption of both clean and renewable energy sources in UK power production.

With the report suggesting that 60% of the world’s power production needs to be decarbonised by 2050, the Government has indicated that it intends to commission fresh nuclear installations in order to assist in its share of this goal. Despite much criticism, the Government sees nuclear energy as a cost effective, proven and reliable solution to the clean energy crisis. However, due to the negative side effects of an over reliance on nuclear power, the Government has stated that it remains committed to the renewable energy sector and aims to have at least 20% of the UK’s energy being produced from renewable sources by 2020.

At first glance, the massive potential of offshore marine energy seems a natural solution to this objective. Studies suggest that the marine environment surrounding the UK mainland stores enough energy in the form of waves, tides and offshore wind to more than meet our electricity demands. There are, however, many barriers that currently restrict the commercial exploitation of this huge potential.

Wave and tidal technology is in its infancy for the most part, and current devices still face a number of challenges before they can meet their promising potential to reach large scale deployment. Innovation therefore needs to be supported, and funding needs to be made available to bridge the gap between the many demonstration stage technologies and more mature commercial installations in order to support cost effective manufacturing and deployment.

This financing and support could be raised via revenues from emissions taxes, but more importantly, private sector interest could be increased by offering further incentives to investment, research and development. Current legal barriers are, however, already being addressed. The Government is, via the Marine Bill, attempting to create a system that facilitates a sustainable marine environment for developers and users, streamlining the planning and consent system to a point which encourages sector participation.

There will be further consultation on the Bill through 2007, but it seems that marine based renewable energy could, in light of its huge potential, be a critical tool in securing Britain’s long term ambitions for carbon free and carbon neutral energy production. The UK has a great maritime foundation upon which this sector can be built, but for the time being at least, its participation in any solution is limited until the legal and financial framework is put in place to support the growth of a sector which is still very much in its infancy.

MJ Information No: 22721