Transcript Presentation Professor Julia King (PowerPoint)

Building a low-carbon
economy
The UK’s innovation challenge
19th July 2010
www.theccc.org.uk
Main messages
Current levels of public RD&D spend are a minimum:
• cuts will damage achievement of our climate goals
• funding increases should be an urgent priority as
financial pressures ease
Government should address current uncertainties by
setting out its strategy for meeting the 2050 target
The landscape of delivery bodies should:
• be aligned with Government objectives
• provide seamless coverage of all stages of innovation
• be simple to understand and access
• implement improved monitoring
Presentation structure
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Terms of reference
To review the effectiveness of research and
innovation arrangements in the UK related to
achieving our climate change goals
The Committee should:
• consider issues at a high strategic level,
• draw on existing information and analysis,
• decide on which areas/sectors to place greatest attention
4
The innovation system: RDD&D
Source: Energy Research Partnership
Our approach
Identify
potential
technology
paths to 2050
Map
technologies
to the UK’s
RDD&D
capabilities
Assess the
current levels
of public
support
Consider
institutional
arrangements
Presentation structure
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
The case for intervention
Manufacturing
Agriculture
Low levels of
innovation in key
sectors for climate
change mitigation
Mining/quarrying
Utilities
Construction
0%
Source: ONS/CCC
1%
2%
3%
4%
5%
6%
R&D as % of value added
7%
8%
Dominant designs, lack of product differentiation, uncertainty
and knowledge spillovers mean that support is required
Energy RD&D funding: historically low
UK public sector energy RD&D spend 1974-2008
1400
Source : IEA
1200
1000
ALL OTHER ENERGY RD&D
800
600
400
200
0
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$USD millions
NUCLEAR FISSION
Compared to other countries: low
% GDP
International comparisons of public sector energy RD&D
spend 2007
0.10%
0.09%
0.08%
0.07%
0.06%
0.05%
0.04%
0.03%
0.02%
0.01%
0.00%
Source: IEA
UK is failing to exploit the
opportunities offered by a
low-carbon economy
Presentation structure
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Technology pathways to 2050
Broadly consistent view of technologies required to meet 2050 targets
Illustrative
scenario
Develop and Deploy
Offshore
wind
●
●
Marine
CCS
Smart
grid
&smart
meters
Aviation
Electric
vehicle
Technologies not yet competitive with high-carbon alternatives
UK has relevant capabilities
● UK well placed to accelerate development
Deploy
Nuclear
fission
Heat
pumps
Advanced
insulation
materials
●
Industry
CCS
UK appears to lack an advantage
● Unlikely to influence direction of development
●
may develop some components
● can participate in international collaborations
Research & Develop
Solar
PV
3rd gen
Energy
storage
Hydrogen
fuel cell
vehicles
Adv.
biofuels
●Technologies further from market
● Unclear which country has, or will
Agriculture
techs
Industry
techs
have, an advantage
● Potential for UK to lead/continue to lead some research areas
Presentation structure
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Low-carbon RDD&D spend
Estimated spend in 2009/10
Very difficult to
estimate, data
not routinely
collected
£ 550 million
Power
£5 billion
deployment
support*
Transport
£0.5bn
RD&D
Buildings & industry
Agric & Waste
Other
* Deployment support comprises two-third levies
and one-third expenditure
Consider funding changes
Gas CCS
demonstration
• A gas CCS demonstration could
mean the UK becomes a leader
Increased
funding for other
areas
•
•
•
•
Offshore wind
Marine generation (demonstration)
Electric vehicles
Aviation: radical technologies
Any cuts to public expenditure on low-carbon RD&D would
be detrimental to the achievement of our climate goals
Deployment barriers
Barriers to deployment are as important as RD&D support
Power
• Current electricity market arrangements will not
deliver required investments
• Planning approval for wind projects remains a barrier
Transport
• Increase resources for developing battery charging
network and early adopter support for EVs
Buildings
• Resolve outstanding design questions on Renewable
Heat Incentive including precise levels of support
Presentation structure
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Long-term objectives & focus
Today: Objectives to 2050 and beyond
but a strategy only to 2020
Government should:
Set out objectives and desired
outcomes for meeting 2050 targets
Identify level and form of public
support
International engagement
Government strategy should focus on increasing:
UK influence on the design of European
programmes
Collaboration with other countries
Influence on international arrangements
Delivery bodies
Delivery bodies should:
Have objectives that are consistent with
Government objectives
Deliver better continuity and integration
of support
Provide clearer signposting of support
Monitoring and evaluation
Improved monitoring and evaluation
requires:
Increased capacity to produce good quality
monitoring and evaluation information
Consistent collection and reporting of
spend data
Increased resources for measuring longterm performance
Main messages
Current levels of public RD&D spend are a minimum:
• cuts will damage achievement of our climate goals
• funding increases should be an urgent priority as
financial pressures ease
Government should address current uncertainties by
setting out its strategy for meeting the 2050 target
The landscape of delivery bodies should:
• be aligned with Government objectives
• provide seamless coverage of all stages of innovation
• be simple to understand and access
• implement improved monitoring
Future work of the Committee
2010
2011
2012
•
Review of the second phase cap for the Carbon Reduction Commitment
•
Advice on the level of the fourth budget
•
Review of renewable energy ambition
•
Advice on the Scottish cumulative emissions budget
•
Third annual report to Parliament
•
Advice on use of offset credits to meet the second carbon budget
•
Review of international shipping emissions
•
Review of sustainable bioenergy
•
Advice on inclusion of international aviation & shipping in carbon budgets
•
Fourth annual report to Parliament