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Find out more about how Energy Systems Catapult can help you and your teams
In July 2023, Energy Systems Catapult kicked off a two-year project that aims to set out how the concept of a Carbon Regulator could be brought to life. As part of the cross-Catapult Carbon Accounting Programme, funded by Innovate UK and led by the High Value Manufacturing Catapult, we are aiming to answer the question:
What does regulatory oversight for carbon accounting and emissions data look like in a Net Zero economy?
Reliable and trustworthy emissions data will be essential to the functioning of a Net Zero economy.
Some carbon accounting regulations and regulators already exist, for example, the Environment Agency is responsible for the UK Emissions Trading Scheme (UK ETS). But such regulators are disparate and specific to individual policy mechanisms.
There is currently an absence of regulatory oversight for carbon accounting and the monitoring, reporting, and verification (MRV) of emissions to provide this consistently economy-wide.
We propose the introduction of an independent Carbon Regulator, economy-wide in scope, for carbon accounting and MRV. A Carbon Regulator would be an independent body, either set up as a new institution, or by extending the mandate of an existing organisation, or it could be a group of bodies working together in a more coherent way.
Regulatory oversight provides clarity, and innovation-friendly regulation can ensure a level playing field for innovators, cut investment risks, and build business and consumer confidence. It can also support:
With a focus on heavy industry and manufacturing, we intend to answer the following questions:
We will do this by:
In the first year:
In the second year:
Operationalising a Carbon Regulator – International Considerations for a Carbon Regulator
In this report, we identify international considerations for a Carbon Regulator and implications for UK exports based on a review of national policies. Firstly, this report considers the national policies of a select group of countries chosen based on their trade proximity to the UK. Secondly, the report outlines key considerations for a Carbon Regulator based on a review of international coordination initiatives across industrial sub-sectors. Finally, the report identifies opportunities for a Carbon Regulator to play a leading role in promoting international alignment in carbon accounting to support UK industry.
Operationalising a Carbon Regulator – Review of existing regulatory landscape
This report is the second in our Operationalising a Carbon Regulator series where we consider the feasibility of setting up an independent regulator to plug some of the gaps in carbon accounting regulation and move to a more robust, data driven Net Zero economy.The report highlights seven major gaps in carbon accounting regulation.
Operationalising a Carbon Regulator – Learning from other sectors
This report is the first in our Operationalising a Carbon Regulator series where we consider the feasibility of setting up an independent regulator to plug some of the gaps in carbon accounting regulation and move to a more robust, data driven Net Zero economy. The report draws on insights from existing regulated sectors and interviews with senior regulatory experts in industry and academia.
Carbon Accounting and Standards in Industry: A Framework for Innovation and Growth
Carbon accounting and standards in industry: A framework for innovation and growth, produced as part of the Innovate UK-funded cross-Catapult Carbon Accounting programme, proposes a carbon accounting framework to overcome the complexity and limitations of the existing regulatory ecosystem by considering options for robust monitoring, reporting, and verification (MRV).
Carbon Accounting in Industry: Learning from the South Wales Industrial Cluster
In this report, we review options for policymakers to support a more consistent and coherent approach to the monitoring, reporting and verification (MRV) and accounting of greenhouse gas (GHG) emissions in industry.
The Case for an Economy-Wide Carbon Regulator
In this report, The Case for an Economy-Wide Carbon Regulator, we make the case for a new regulator to oversee accurate and coherent monitoring, reporting, and verification (MRV) of greenhouse gas emissions reduction and removal across the economy.
We need a Carbon Regulator, but setting one up will not be without its challenges – Elle Butterworth
Despite all the challenges and trade-offs required to get the state of implementing regulation or even a new regulatory body, regulation is essential to economic success, sending clear signals to innovators on where to focus their efforts and gives more certainty to investors.
Without regulation the carbon accounting landscape will continue develop in a disjointed way, limiting the credibility of product claims and company disclosures, which in turn limits the confidence investors and customers have in products and services.
Carbon Accounting: The Future is Digital – Elle Butterworth
The ability to exchange, compare, track and trace emissions data through supply chains will be fundamental to the UK’s future low carbon economy. Complete and accurate data will support innovations relating to carbon intensive products and processes. Data will also support Government and consumers to make informed, low carbon, decisions.
Untangling a messy carbon accounting landscape – Elle Butterworth and Dr Danial Sturge
How do we know whether policies are achieving their decarbonisation aims? How can we hold companies to account for delivering their low carbon promises? How can we track and trace emissions through complex supply chains? The answer to all of these is having a well-regulated carbon accounting framework.
Carbon accounting is more than just numbers on a spreadsheet – Danial Sturge and Elle Butterworth
To achieve the decarbonisation of the whole energy system, it is important to develop a complete and quantifiable picture of GHG emissions that supports decision makers and track progress towards the UK’s Net Zero target. And do so in way that is transparent enough to identify feedbacks and unintended consequences at different levels of the system.
We’re developing a standardised carbon accounting framework suitable for all UK manufacturers.
Find out moreNet Zero Carbon Policy is an Energy Systems Catapult thought leadership project, focusing on how the UK can develop an innovation-friendly, economy-wide framework for Net Zero.
Find out moreIndependent 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