1. Energy justice and the transformation to a low carbon society
Jim Skea
Research Director
UK Energy Research Centre
Energy justice in a changing climate: defining an agenda
InCluESEV Conference
Coin Street neighbourhood centre
10 November 2011

2. Structure of the presentation
UK energy and climate policy
Affordability

3. The energy policy “trilemma”
Environment
Affordability
Security

4. What Government and the CCC have to consider under the Climate Change Act
scientific knowledge
technology
economic circumstances and competitiveness
circumstances at European and international level
energy policy
fiscal circumstances
the estimated amount of reportable emissions from international aviation and international
social circumstances
differences between England, Wales, Scotland and Northern Ireland
Central
Emerging
“Rear view mirror”

5. The long-term target and the emissions trajectory
2050 allowed emissions
3.2% p.a. reduction
Scenario emissions to 2030
4.7% p.a. reduction

6. Carbon budgets recommended by the CCC

7. The decarbonisation/electrification/efficiency story
Reducing power sector emissions:
Renewables (Wind, solar, tidal and marine, biomass), nuclear, CCS
Application of power to transport and heat
Reducing heat emissions:
Energy efficiency
Behaviour change
Electric heat (e.g. heat pumps, storage heating)
Biomass boilers
CCS in industry
Reducing transport emissions:
Fuel efficiency
Electric/plug-in hybrids
Sustainable Bio fuels

8. The decarbonisation “trilemma”
Decarbonising electricity
Environment driven
Security/affordability driven
Electrification
Efficiency

9. This is a technology narrative – why?
Culture/skill-sets of government and advisory bodies
Lack of evidence relating to the impact of policies targeting “lifestyle” and “behaviour change”
Technology interventions are believed to be amenable to quantification and hence “bankable” but outcomes of course mediated by social factors

10. Affordability

11. Affordability and paying for supply side decarbonisation
Renewables, nuclear and CCS will all cost more than conventional fossil fuel generation (forgetting about externalities and future generations)
The cost per household is likely to rise to the low £100s per year
Only two ways to pay – bills or taxes
“Stealth” payments via bills has been the chosen route
Consumers Association arrival in the debate
Increased transparency is unavoidable
The (independent) National Statistician has deemed that subsidies financed through bills should be regarded as “taxes” for macro- economic /statistical purposes
Using bills is socially regressive compared to using taxation

12. Addressing affordability
Re-define fuel poverty (the Hills review)
Rising block tariffs?
Finance subsidies through taxes not bills
Choose cheaper low-carbon technologies –which means onshore wind
Scale back de-carbonisation ambitions
Justice for future generations?
Link energy policy to other goals – housing, transportation etc
Reduce energy needs

13. “Hills review” of fuel poverty
Level of income and level of expenditure on energy

14. The “fuel poor”, incomes and costs (2004)

15. The “fuel poor”, incomes and costs (2009)

16. Fuel poverty: definitions
Current definition
a member of a household living on a lower income in a home which cannot be kept warm at reasonable cost ⇒ household is in fuel poverty if it would need to spend more than 10 per cent of its income to achieve an ‘adequate’ level of warmth through the year and on other energy costs.
Proposed definition
Fuel costs above the median level
If they were to spend that amount, they would be left with a residual income below the official poverty line.
Look at fuel poverty “gap”

17. Framework for policies dealing with poverty/energy
Need income support
Fend for themselves
Target of EE polices
True fuel poor

18. Residential efficiency/decarbonisation measures get harder…
Loft insulation
Cavity wall insulation
Boiler replacement
Solid wall insulation
Heat pumps/electricity

19. Tensions going forward
Cost of low-carbon supply
“Acceptability” of ambitious efficiency measures that affect perceived quality of life
Not only poor people may feel injustice…

20. UK Energy Research Centre
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