24/06/25
Cheaper power key to reach UK’s climate targets
Cheaper power key to reach UK’s climate targets
Edinburgh, 24 June (Argus) — The UK's climate plan credibility has improved
slightly but no progress has been made to make electricity cheaper, which is key
to hit the country's emissions targets, independent advisory body Climate Change
Committee (CCC) said in its progress report. The report assesses the UK's
progress towards its net zero goals under the current government, which took
power in July 2024. The CCC found the UK's 2050 target remains reachable but
climate action needs to accelerate, even though policies to cut greenhouse gas
emissions have improved. Only half of the 16 key indicators assessed by the CCC,
with a relevant benchmark or target, are on track — including offshore and
onshore wind operational capacity, sustainable aviation fuel, electric vehicle
(EV) charging points and distances travelled by car. EV car sales, heat pump
installations, woodland creation and peatland restoration are "slightly off
track", while the ratio of electricity to gas prices for households and
industries is "significantly off track", the CCC said. The committee noted no
progress has been made on actions to lower the cost of power. The government is
planning to consult on this "in due course", but CCC urged for actions and
timelines. The CCC has identified "ten priority actions" for the year ahead,
with cutting the cost of electricity for households and businesses again at the
top. Cheaper power will support industrial electrification and "speed up the
uptake of clean electric technologies, such as heat pumps and electric
vehicles," the CCC said. The transition to renewables will eventually reduce the
country's reliance on volatile wholesale gas prices, which are the main driver
of electricity prices, it said. "But the government can take immediate action to
accelerate this by moving policy costs associated with past schemes, and those
that are not directly related to the cost of electricity generation, off
electricity bills," the CCC said. Removing electricity policy costs — levied on
the unit price of electricity at 20 times the rate of gas — would reduce annual
electricity bills by £190 ($258) for a typical household with a gas boiler and
by £490 for a typical household with a heat pump, CCC found. "This would bring
UK prices into the range of other countries who are ahead on heat pump
roll-out," it said. The CCC report assessed policy development from July 2024 to
23 May 2025, so does not take into account policies announced in the recent
spending review nor the British Industrial Competitiveness Scheme intended to
reduce electricity costs by up to £40/MWh for more than 7,000
electricity-intensive businesses. UK emissions reached 413.7mn t of CO2
equivalent (CO2e) in 2024, including its share of international aviation and
shipping, down by 50pc from 1990 and by 2.5pc from 2023, according to the CCC.
The year-on-year reductions come mainly from the electricity supply — declining
gas generation — and the industry sector. The government will increasingly need
to focus on transport, building, agriculture and aviation to reach its emission
reduction targets, the CCC said. The report points to encouraging trends in EVs
and in heat pump installations, which grew by 56pc on the year, and in woodland
creations, but it reiterated action on these fronts must accelerate. Although
much of the progress stems from policies set by previous government, the CCC
said "bold policies" introduced this year are promising, such as removing
planning barriers on renewable deployment and the reinstatement of the 2030
phase-out date for gasoline and diesel vehicles. The market share of new EVs
increased on the year in 2024, by nearly 20pc. But CCC noted aviation sector
emissions are increasing. The share of sustainable aviation fuel increased to
2.1pc last year from 0.7pc in 2023, but a lot more is required to reach the 10pc
SAF mandate by 2030. By Caroline Varin Distribution of past emissions reductions
and future emissions savings by sector.pdf Distribution of past emissions
reductions and future emissions savings by sector Send comments and request more
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