Transcript Enabling an Efficient Carbon Market

Urban Decarbonisation:
Experience in the UK
Seminar at the Intelligent City Salon
Berlin, 15 Juni 2011
Sam Fankhauser
Grantham Research Institute and CCCEP
London School of Economics
Support by the ESRC and the Grantham Foundation is gratefully acknowledged
Overview
• Britain’s carbon targets
• Decarbonising transport
• Decarbonising buildings
• Decarbonising electric power
The 2008 Climate Change Act
• Sets legally binding carbon targets
•
Long-term (2050) target set in the Act
• Binding 5-year carbon budgets set 12 years ahead
— First three budgets (2008–22) set in 2009
— Fourth budget (2023-27) to be determined later in 2011
• Puts in place an institutional framework for delivery
•
Independent Committee on Climate Change
recommends budgets and reports on progress
The mandatory 2050 target
Set in the Climate Change Act, as recommended by the CCC
Climate Objective
• Expected temperature
change as little above 2oC
as possible
Science
International
Circumstances
• Risk of 4 oC at very low
levels (e.g. <1%)
UK 2050 legislated target
80% reduction in GHG from 1990, all sources
679 Mt CO2e
International aviation
& international shipping*
42
UK non-CO2 GHGs
94
Other CO2
Industrial CO2 (heat &
industrial processes)
109
Residential, public &
commercial heat
97
Domestic transport
135
76% cut
(= 80% vs. 1990)
159 Mt CO2e
Electricity generation
* bunker f uels basis
178
2007 emissions
2050 objective
Global emissions
peak by 2020,
halve by 2050
The carbon budgets 2008 - 27
Interim Budget is currently legislated, CCC recommends tightening
Source: Committee on Climate Change (2010)
Indicative emissions trajectories
Different sectors will have different emission reduction paths
Source: Committee on Climate Change (2010)
The special role of cities
Sources of urban greenhouse gas emissions
Source: Kennedy et al 2009
Overview
• Britain’s carbon targets
• Decarbonising transport
• Decarbonising buildings
• Decarbonising electric power
Transport emissions
Technological change dominates demand management
Key technology targets for 2020
• New car efficiency of 95 gCO2/km
− Through a combination of vehicle technologies
• 1.7m battery and plug-in hybrid electric cars
− 16% of new car sales and 5% of fleet
• New van efficiency of 135 gCO2/km
• Biofuel penetration of 8%
− Mostly for buses, HGVs, some PHEVs
− Limited availability of sustainable biofuels
A combination of vehicle technologies
Emissions intensity of cars – by type and distance
Emissions Intensity gCO2/km
125
Fleet average
emissions:
81 g/km
80
50
Conventional cars:
• 80-125 g/km
• 70% of km
Plug-in
hybrids:
50 g/km
20% of km
Pure electrics:
• 0 gCO2/km
• 10% of miles
0
Distance (km)
70%
100%
How different technologies might add up
Source: Committee on Climate Change (2010)
Encouraging electric car uptake
• Price incentives
− Government subsidy of £5,000 on new cars
− Differentiation in road tax, excise duty, London
Congestion Charge
• Provide recharging points
− London: 1,300 charging points by 2013
− Although experience shows most people charge
at home
Key behavioural targets
• Ecodriving
− Train 10% of car / van drivers, all HGV drivers
• Enforcing speed limits on motorways
• Smarter choices program in all cities and towns
– Policies encouraging car sharing, working from
home, use of public transport
• Introduction of road pricing?
– In addition to, not instead of fuel duty
Smarter choices
• Pilot programme to change travel behaviour
– Workplace, school and personal travel plans
– Personalised travel planning, travel awareness
campaigns, and public transport information
– Car clubs and car sharing schemes
– Teleworking, teleconferencing and home shopping
• Three pilot sustainable travel towns
– Darlington, Peterborough and Worcester
– £15million over 5 years (2004-09)
Smarter choices: Pilot results
Key policy levers
Improve efficiency of conventional
vehicles
(e.g. more stringent new car CO2 target-based
regulation, complementing fuel duty)
Encourage uptake of electric, plug-in
hybrid and hydrogen vehicles
(e.g. taxes/subsidies on fuel/vehicles or very
stringent new vehicle CO2 regulation)
Manage additional electricity demand
(e.g. Smart meters and time-of-day tariffs)
Encourage deployment of hydrogen
buses
(e.g. regulation, economic instruments)
Continue to reduce travel demand
(e.g. Smarter Choices, incentives to improve
logistics, land use planning)
Encourage sustainable biofuels
(e.g. Regulation mandating minimum life-cycle
emissions saving)
Overview
• Britain’s carbon targets
• Decarbonising transport
• Decarbonising buildings
• Decarbonising electric power
Emissions from buildings
Push in energy efficiency and gradual introduction of renewable heat
A boost in energy efficiency
Targets on insulation, boilers and appliances
Budgets 1, 2 and 3
Source: Committee on Climate Change (2010)
The role of new heat technologies
Renewable sources of heat emerging in the 2020s
Source: Committee on Climate Change (2010)
Energy efficiency measures
• Supplier obligations
− Carbon Emission Reduction Target (CERT)
• Financial assistance
− “Green Deal” (for building efficiency)
− Green Investment Bank (for large investments)
• Information and technical assistance
− Carbon Trust, Energy Savings Trust
• Reputation and management incentives
− CRC Energy Efficiency Scheme
Energy efficiency and fuel poverty
Energy efficiency could take 300,000 households out of fuel poverty
Targeted energy
efficiency
Income support
(e.g. winter fuel payments)
Tariff structure
(e.g. block tariffs)
Overview
• Britain’s carbon targets
• Decarbonising transport
• Decarbonising buildings
• Decarbonising electric power
Electric power emissions
Electricity generation needs to be all but carbon-free in 20 years
Source: Committee on Climate Change (2010)
Wholesale replacement of generating assets
Many power stations due for replacement in the 2020s anyway
Source: CCC (2009, 2010)
on shore
offshore
Has it worked?
Emissions are within budget, but mostly due to the recession
Source: Committee on Climate Change (2010)
Urban Decarbonisation:
Experience in the UK
Seminar at the Intelligent City Salon
Berlin, 15 Juni 2011
Sam Fankhauser
Grantham Research Institute and CCCEP
London School of Economics
Support by the ESRC and the Grantham Foundation is gratefully acknowledged