Industrial Energy Use and Carbon Emissions Reduction in a UK Context

What is it about?

Reducing carbon dioxide emissions over the long term will depend critically on the adoption of a small number of key technologies, alongside the ‘decarbonisation’ of electricity supply. The latter implies the generation of electricity by way of various combinations of fossil-fuelled power plants with coupled carbon capture, usage and storage (CCUS) facilities, nuclear power and various renewable energy technologies, principally large-scale wind or solar photovoltaic arrays at a range of geographic scales. A number of opportunities and priorities for industrial decarbonisation and improved resource efficiency in the UK have been articulated. However, the task for both industrial and policy decision makers will be challenging. The aspirations highlighted in the UK Government’s recent ‘Clean Growth Strategy’ (CGS) need to be clarified and more clearly elaborated. In order to achieve its commitments under the 2015 Paris Agreement, the UK Government should not rely on accounting ‘flexibilities’ [what the British Government’s independent Committee on Climate Change (CCC) regards as ‘banking and borrowing’) or reliance on international carbon credits. The joint industry–government Action Plans and forthcoming Sector Deals will have to be delivered in partnership. ‘Circular economy’ (CE) interventions have the potential to make significant energy savings that are complementary to other energy-efficiency measures. In order to maximise the benefits from the adoption of CE approaches, they need to be applied widely and consistently, reflecting the international nature of supply chains. The actual interventions are varied in their nature and their scope. In general, the CE approaches that exhibit the greatest potential energy savings are those that can either be applied broadly or relate to relatively concentrated flows of goods or services. For example, some options to reduce food waste can be applied to a large proportion of the existing food waste, whereas some of the options to improve resource efficiency in manufacturing or construction are specific to particular processes. This does not negate the value of the approaches that are specific, but indicates that policies with broad applicability may have greater scope to facilitate change. Such measures and policies are often associated with both key users of goods (e.g. construction, retail and public services) and with some of the key materials that are employed (e.g. steel, chemicals, cement, paper, plastics, etc.). There is greater overall scope for energy savings within the UK through CE interventions that make more effective use of products than through those that make production more resource efficient. However, the potential for each type of approach is significant. Policy measures that encourage the uptake of CE interventions should therefore target both sides of the supply relationship.

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Photo by Chris LeBoutillier on Unsplash

Photo by Chris LeBoutillier on Unsplash

Why is it important?

The British Government has therefore introduced a bold, legally binding target of reducing the nation’s CO2 emissions overall by 80% by 2050 in comparison to a 1990 baseline in their 2008 Climate Change Act. The British Government’s independent Committee on Climate Change (CCC), established under the 2008 Climate Change Act, has advocated deep cuts in power sector operational emissions through the 2020s, with UK electricity generation being largely decarbonised by 2030-2040. In recommending the Fifth ‘Carbon Budget’ for the period 2028-2032, they proposed a 57% fall in GHG emissions below 1990 levels by 2032. Achieving these carbon reduction targets will require a challenging transition in Britain’s systems for producing, delivering and using energy that is not only low carbon, but also secure and affordable; thus resolving three components of the so-called energy policy ‘trilemma’. Thus, these GHG reductions will necessitate a radical transition towards an energy system that delivers high quality energy services through low carbon technologies and processes, that are also secure and at competitive prices. Reducing industrial energy demand and improving resource efficiency could therefore make a substantial contribution towards the UK government’s goal of achieving 80% reduction in carbon dioxide emissions by 2050, while simultaneously improving productivity and creating employment opportunities. In this context, the government released its ‘Clean Growth Strategy’ in October 2017, although it has a number of limitations identified by various stakeholders. The associated technology roadmaps, for example, exhibit quite large uncertainties.

Perspectives