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by Dr. Danial Sturge, Carbon Policy Practice Manager
Only thirty years remain before the UK must legally reach Net Zero carbon emissions. All major emitting sectors – transport, heating, manufacturing, power generation, and farming – will need to change radically to get as close as possible to zero emissions by 2050.
Our work last year on Rethinking Decarbonisation Incentives showed how current policies are too uneven and weak to achieve this (see, for example, the Financial Times coverage in the lead up to this year’s Budget). This means we need major new policy reforms to drive both the supply of, and demand for, low, zero, and negative carbon technologies across the whole economy.
“…few think taxation alone is the magic bullet to carbon reduction. With the politics of raising taxes on emissions so difficult, new regulations and standards will also be required.”
Financial Times (10 March, 2020)
In our new thought leadership project, Net Zero Carbon Policy, we use the term ‘carbon policy’ for any policies that require or incentivise action to reduce or remove greenhouse gas emissions, including pricing, regulation, subsidies, and standards.
In our first report, Accelerating to Net Zero: A sector led approach to an economy-wide carbon policy framework, published today we propose a set of guiding principles for designing and implementing policies to achieve Net Zero. We also set out how a ‘sector led’ approach to carbon policy can accelerate progress during the 2020s towards a more coherent economy-wide framework in the 2030s.
The sector led approach that we propose:
A sector led approach (see summary below) can also be combined with complementary policies and co-ordination mechanisms (such as infrastructure regulation or multi-vector local energy planning tools) to enable a whole systems approach to the energy transition.
Our other thought leadership projects – Rethinking Electricity Markets and Zero Carbon Buildings – are developing further detailed sector policy proposals, as components of an integrated economy-wide carbon policy framework.
We argue that there is significant merit in taking a sector led approach to build an economy-wide carbon policy framework to accelerate the transition to Net Zero.
The UK now has a historic opportunity, through creating its own emissions trading system and its forthcoming leadership of COP26. Key first steps to seize this opportunity include:
During 2020-21, through the Net Zero Carbon Policy thought leadership project, we will be carrying out deeper dives into:
If you want to work with us or discuss any of the topics described above, then please contact Markets, Policy and Regulation.
Find out more about how Energy Systems Catapult can help you and your teams
Find out more about how Energy Systems Catapult can help you and your teams
Independent thought leadership that combines expertise in clean technology, economics, and energy policy design, informed by cutting-edge modelling and evidence-based analysis.
Find out moreFind out more about how Energy Systems Catapult can help you and your teams
Find out more about how Energy Systems Catapult can help you and your teams