UK government commits to fourth carbon budget

Covering the period between 2023 and 2027, it commits to legally binding emission cuts of 50% from 1990 levels and keeps the UK on track for reductions of 80% by 2050.

In September 2010, Chris Huhne MP, Secretary of State for the Department of Energy & Climate Change, opened Vattenfall’s Thanet offshore wind farm, where he told the assembled world media he wanted to see the UK move from playing in the ‘conference league’ of renewable energy to the ‘premier league’, adding his determination to meet their renewable targets, a very large part of which would come from offshore wind.

The renewable energy industry, when making major capital investments, will only do so if they know that government support in the form of policy direction and practical support is present. When Vestas recently revealed Sheerness in Kent as the location for turbine manufacturing facilities in the UK, they stated that their customers needed to see “a long term political and regulatory certainty that ensures their business case”, adding that making that happen lies in the hands of the policy makers. Developments such as the fourth carbon budget will therefore be seen as a long term bellwether of government policy.

It is important to point out that the CCC Renewable Energy Review, a 166 page document, provides comprehensive analysis associated with reducing emissions, including insulation of domestic housing and the promotion of electric cars. Marine renewables is just part of the equation. It does however confirm the continuation of the basic footings on which government policy will be based over what is a long term period, involving all the potential pitfalls of making long term financial assessments.

A number of green groups expressed disappointment that while the government’s aim is to reduce emissions domestically, the option of carbon trading is being kept open, a system considered by some as ‘exporting’ the problems to other countries. Responding, Chris Huhne stated that enormous progress is being made on reducing emissions globally, including in India and China.

The fourth carbon budget goes beyond current EU targets, and politics has had a hand in determining the final package, particularly as the UK currently has a coalition government. A review is to be undertaken early in 2014 to ensure the UK’s carbon targets are in line with those of other EU countries to avoid putting the UK’s economy at a competitive disadvantage. Any subsequent review will however, under the Climate Change Act 2008, have to be preceded by a recommendation from the CCC. Commentators also pointed out that the EU will not have decided on their targets by 2014, also that it would be difficult for the government to be seen to be lowering emissions targets close to the scheduled date of the next election.

Policy is to be set out in October and this announcement, by itself, does not address in detail the specific measures the marine renewable industry may be seeking in support of their own commitments and investments. Marine renewables are but one part of the energy generation mix, which in turn is one part of the task of reducing greenhouse gas emissions. Any such measures will however only flow from the foundations that are government policy on the subject and the long term message is that the UK is on track for its 2050 targets.

Back at the Thanet wind farm opening ceremony in September 2010, Chris Huhne told the audience that the UK’s renewable sector lies 25 out of 27 EU members states, a position he wanted to see improved. He repeated the same point during the commons debate following the fourth carbon budget statement.

By Peter Barker