Further Opinion
Tom William, Partner and Head of Energy and Infrastructure at Downing LLP, comments: “What we do over the next decade will be critical to mitigating or averting a climate crisis but, unfortunately, it seems that a short-term focus on the cost of living and energy security is driving much of the Government’s Energy Strategy.
“Increased emphasis on nuclear energy as part of the solution is a medium to long term effect; it takes years to plan, commission, build and deliver new nuclear capacity. In the short term, fossil fuel intensive generation will be sweated harder for longer, emitting more greenhouse gases in the process.”
He believes the fastest and cleanest way to reduce our energy bills is a greater use of renewable energy. “The Government must do more to encourage the rapid scale up of renewable energy infrastructure through easing of planning regulations for wind and solar, especially on-shore wind.
“Pairing this with improved storage and transmission is the only way to deliver against our competing demands of energy security and an impending climate crisis. While, to mitigate the short-term impact of fossil fuel use, we need to see equal commitment to carbon capture and sequestering technologies.”
He feels that like any area of policy, it can’t be considered in isolation, but the greatest fear is that the climate crisis will be the price we pay for energy security.
Jonathan Maxwell, CEO and founder of Sustainable Development Capital LLP (SDCL), which has invested over $2 billion in energy efficiency projects internationally, commented:
“We are surprised to learn that the Government is not doing more to drive energy efficiency. Improving energy efficiency in commercial, industrial and public sector buildings, as well as households, has a huge role to play in cutting carbon, lowering costs, and increasing our energy security.
“The International Energy Agency has already pointed to energy efficiency measures in buildings and industry as a way of reducing reliance on Russian gas, but it often gets less attention than it deserves. This must change.
“Most of the public will be shocked to learn that we waste two-thirds of the world’s energy. Energy efficiency measures can be introduced rapidly to deliver immediate benefits. This is a real advantage now, and especially when renewable and nuclear energy sources can take years to develop.”
He argues that furthermore, energy efficiency measures quickly pay for themselves in terms of the cost savings they deliver, and then go on to produce further savings. There is an investment case, an environmental case and a national security case for putting energy efficiency at the heart of Government energy policy.
“We have the opportunity to create a better system, so that when clean energy at scale does arrive, it’s not wasted. Energy efficiency is one of the best, fastest and cheapest ways of improving energy security.”
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Shifts
The plan also includes more zero emission vehicles, and a recognition that UK industrial electricity prices are higher than those of other countries.
Government is to extend the EII Compensation Scheme for a further three years, and increase the aid intensity to up to 100 per cent. It is also pondering increasing the renewable obligation exemption to 100 per cent.
“Environmental groups, and anyone who followed the climate emergency debates during COP26, will be very disappointed,” concludes Smith. “The big test for the planet, according to the CCC and IPCC, is where we will get to with carbon reduction globally by 2030, which is only eight years away.
“With China and India still increasing their gargantuan use of coal to create power, the developed nations will have to work much harder to stick to 1.5 degrees.
“Overall, it’s a balanced scorecard on a shaky path towards 2050, but as ever with this Government, the big question is whether they have the right people in the top positions to implement it.”