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The UK Low Carbon
Transition Plan
Leila Pourarkin
Seoul, South Korea
March 2010
Why did we produce a Low Carbon Transition Plan?
What is in it?
How did we do it?
2
Why did we produce a low carbon transition plan?
EU
legislation
•EU Energy and Climate package
•EU 20% target →UK 34% reduction on 1990 levels
•20% renewable energy by 2020 → UK 15%
UK
legislation
•Climate Change Act 2008
•Five-year carbon budgets
•Publish policies to meet budgets
Single statement of climate and energy strategy
Comprehensible plan for business and the public
3
First ever legally binding carbon budgets
MtCO2e
2020
34% emissions
reductions
The UK will also
cut emissions
by 80% by 2050
3 018 MtCO2
2 782 MtCO2
2 544 MtCO2
Carbon budgets
Projected emissions including
policies in the Transition plan
Carbon Budget 1
(2008-2012)
Carbon Budget 2
(2013-2017)
Carbon Budget 3
(2018-2022)
4
Why did we produce a Low Carbon Transition Plan?
What is in it?
How did we do it?
5
The UK Transition Plan sets out how these carbon
budgets will be met
All sectors will contribute to emission savings
6
POWER and HEAVY INDUSTRY:
The EU Emissions Trading System is at the heart of our
strategy
The EU ETS started in 2005
3 objectives:
Ambitious targets
21% below 2005 levels by 2005
EU-wide central cap
declining by 1.74% per year
1
2
3
Pricing carbon
Setting a cap
Certainty on level of emissions
Trading allowances
Promote least cost abatement
UK
EU ETS
sectors
UK
non-ETS
sectors
• Electricity
• Iron & steel
• Pulp & paper
• Industrial processes
7
POWER and HEAVY INDUSTRY:
Beyond the EU ETS, other policies are required to meet
targets
EU ETS
+
Renewable
electricity
Fossil fuel with CCS
Nuclear
30% target by 2020
4 new CCS
demonstrations
New nuclear power
stations by 2018
40% of UK’s electricity from low carbon sources in 2020
8
TRANSPORT:
Achieving 19% emission cuts in 2018-22
Road transport
Making engines more
efficient
• New EU car emission
standards
• £30m for low carbon
buses
Supporting low carbon
vehicles
• £400m to encourage
development
• 10% of transport energy
from renewables
Changing behaviour
• £29m for the first
‘Sustainable Travel City’
• £145 million for cycling
Rail
Increased energy efficiency and more electrification
Aviation
European flights part of EU ETS from 2012
9
HOMES AND COMMUNITIES:
Achieving 13% emission cuts in 2018-22
Making homes greener
Carbon Emissions
Reduction Target
Community Energy
Saving Programme
Pilot ‘Pay As You Save’
• Legal obligation on energy
suppliers
• To date £1bn/yr invested
in households
• Low income communities
• Implemented by energy
companies
• Delivers whole-house
energy efficiency packages
• Removes up-front cost
from 500 households
• Repayments lower than
saving on bills
• Scheme linked to property
Clean energy cash-bash,
e.g. Feed-in Tariffs
• Financial support for lowcarbon electricity, e.g. First
30,000 combined heat and
power
Helping people to play their part
Rolling out
smart meters
Developing
proactive services
10
HOMES AND COMMUNITIES:
Helping to make these changes more affordable, especially
for the most vulnerable
Impact of these policies = £76 on annual bills, i.e. 6% increase from current energy bills
Help for the most vulnerable households
• Price: creating mandated social price support
• Energy efficiency: Increasing level of grants to vulnerable households
• Income: Winter Fuel Payments and Cold Weather Payments
11
WORKPLACES:
Achieving 13% reduction on 2008 levels by 2020
Reduce emissions from workplaces by:
Driving emission reductions
• EU ETS in heavy industry
• Climate Change Levy (CCL) and
Climate Change Agreements
(CCA)
• Loans to SMEs and public
sector for low carbon
technologies
Promoting energy efficiency
• Carbon Reduction
Commitment (CRC):
Providing advice
• Carbon Trust provides advice
to businesses
-Targets large non-energy
intensive organisations
-Cap and trade
delivering
• UK low carbon economy could be worth £150bn and employ 1.2 million by 2015
• Up to 500,000 new jobs in UK renewable energy by 2020
12
FARMING, LAND-USE and WASTE:
Achieving 4% of emission savings in 2018-22
Driving down emissions by:
FARMING
LAND-USE
• More efficient use of fertiliser
• Better management of
livestock and manure
• Encouraging private funding
for woodland creation
WASTE
• Support for anaerobic
digestion of farm waste
Research to improve measurement of on-farm emissions
13
Why did we produce a Low Carbon Transition Plan?
What is in it?
How did we do it?
14
How did we do it?
• A central team of 10-12 people
• Used existing expertise and work
• Coordination and new analysis to ensure all added up:
• Cross-Government:
- Central team worked with all departments with an interest
- Cross-Government branding
• In six months: late January to mid July 2009
15
THANK YOU!
Contact: [email protected]
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