The future of carbon emission and carbon taxation policies 10 October 2016 Jonathan Graham Head of Policy

About the ADE The voice for a cost effective efficient, low carbon, user-led energy system; a market in which decentralised energy can flourish Areas of expertise: Combined heat and power District heating and cooling Demand side energy services, including DSR and storage Demand side services CHP District Heat

The future of UK Carbon emissions policy

UK carbon reductions over time Source: CCC

Each sector required to help deliver Source: CCC

Progress to date is entirely power Source: CCC

heat networks and carbon budgets

Large potential DHC carbon savings Element energy estimated that the average carbon abatement cost from district heating is from 2025 onwards ranges between £65/tCO2 and £140/tCO2 in its work for the CCC.

Networks versus generation What is the carbon content of this? Or the carbon content of this?

Heat networks capture alternative heat sources

The size of the waste heat prize

Reducing carbon with waste heat

Impact of power decarbonisation Source: CCC

Importance of marginal carbon intensity Source: Smartest Energy

Gas CHP saves CO2 in medium term

Heat pumps save CO2 in long-term Source: Delta ee

Any questions?

The future of Carbon taxation and fuel costs

Warwick’s Fully Delivered Gas vs Electricity

Warwick’s Fully Delivered Gas Breakdown

Warwick’s Fully Delivered Electricity Breakdown

Retail electricity price vs gas price

Fuel and carbon costs over time Source: Element Energy

The future of carbon pricing Source: CCC

Carbon tax burdens by user type Source: IFS

Short term carbon tax impact Long term carbon tax impact

Further questions? Thank you Jonathan.graham@theade.co.uk Twitter: @theade_UK @enerjg