The UK Low Carbon Transition Plan Leila Pourarkin Seoul, South Korea March 2010

2 Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

3 Why did we produce a low carbon transition plan? EU legislation UK legislation EU Energy and Climate package EU 20% target UK 34% reduction on 1990 levels 20% renewable energy by 2020 UK 15% 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

4 First ever legally binding carbon budgets MtCO MtCO MtCO 2 Carbon Budget 2 ( ) Carbon Budget 3 ( ) Carbon Budget 1 ( ) % emissions reductions Carbon budgets Projected emissions including policies in the Transition plan MtCO 2 e The UK will also cut emissions by 80% by 2050

5 Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

6 The UK Transition Plan sets out how these carbon budgets will be met All sectors will contribute to emission savings

7 POWER and HEAVY INDUSTRY: The EU Emissions Trading System is at the heart of our strategy 3 objectives: Pricing carbon 1 Setting a cap Certainty on level of emissions 2 Trading allowances Promote least cost abatement 3 The EU ETS started in 2005 UK EU ETS sectors UK non-ETS sectors Electricity Iron & steel Pulp & paper Industrial processes EU-wide central cap declining by 1.74% per year Ambitious targets 21% below 2005 levels by 2005

8 POWER and HEAVY INDUSTRY: Beyond the EU ETS, other policies are required to meet targets EU ETS + 40% of UKs electricity from low carbon sources in 2020 Renewable electricity Fossil fuel with CCSNuclear 30% target by new CCS demonstrations New nuclear power stations by 2018

9 TRANSPORT: Achieving 19% emission cuts in European flights part of EU ETS from 2012 Road transport Increased energy efficiency and more electrification Making engines more efficient Changing behaviour Supporting low carbon vehicles New EU car emission standards £30m for low carbon buses £400m to encourage development 10% of transport energy from renewables £29m for the first Sustainable Travel City £145 million for cycling Rail Aviation

10 HOMES AND COMMUNITIES: Achieving 13% emission cuts in Making homes greener Carbon Emissions Reduction Target Legal obligation on energy suppliers To date £1bn/yr invested in households Community Energy Saving Programme Low income communities Implemented by energy companies Delivers whole-house energy efficiency packages Pilot Pay As You Save Clean energy cash-bash, e.g. Feed-in Tariffs Financial support for low- carbon electricity, e.g. First 30,000 combined heat and power Removes up-front cost from 500 households Repayments lower than saving on bills Scheme linked to property Helping people to play their part Rolling out smart meters Developing proactive services

11 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

12 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 delivering WORKPLACES: Achieving 13% reduction on 2008 levels by 2020 Reduce emissions from workplaces by: Promoting energy efficiencyProviding adviceDriving 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 Carbon Reduction Commitment (CRC): - Targets large non-energy intensive organisations - Cap and trade Carbon Trust provides advice to businesses

13 FARMING, LAND-USE and WASTE: Achieving 4% of emission savings in Driving down emissions by: Research to improve measurement of on-farm emissions FARMINGLAND-USEWASTE Encouraging private funding for woodland creation Support for anaerobic digestion of farm waste More efficient use of fertiliser Better management of livestock and manure

14 Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

15 How did we do it? 15 A central team of 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

16 THANK YOU! Contact: