Case Study: Thinking of a Low Carbon Economy – UK

Towards a Low Carbon Economy:

Striving for a low carbon economy is the new rage in the current climate change arena. This post by PwC in November stipulates that the ‘UK maintains its position as a climate change leader’, decarbonising at such a rate that there has been a reduction in carbon intensity between 2014 and 2015 – producing 157 tonnes of carbon dioxide per 1 million $’s of GDP, which is the 3^rd lowest carbon intensity of all G20 countries. This analysis is of course done so based on the economy.

The premise of a low carbon economy is simple, using the governments definition of it: it is decarbonisation, it is simply the ability of activities performed in the economy to function on a lower carbon utilisation of firms (The low carbon economy (as of 2013) is said to include 11,550 business). The low carbon economy is measured through the six sectors outlined in table 1.

                  Table 1. Sectors of a Low Carbon Economy. (Source: The UK Government: 2015)

  

The 5^th Carbon Budget

The Climate Change Act of 2008 outlined that there should be a reduction of greenhouse gas emissions to at least 80% by 2015 in relation to 1990 baseline emissions, essentially the act sets out an outline for a low carbon economy. Carbon budgets have been released since the act was established, the most recent budget is the 5th Carbon Budget set at: 1,765 MtCO₂e over 2028-2032. The budget pushes for a decrease in the amount of emissions produced in electricity generation and the need for an increase in low-emission vehicles like electric and hybrid vehicles. The 5^th Carbon Budget also pushes for an establishment of low-carbon power and calls for policy to aid it, aiming to reduce carbon emissions to 57% of 1990 levels, based on accounting rules of the act – whilst they recommend a reduction of emissions by 61%. As of far, in accordance to the Carbon Budgets set, the UK has decarbonised at a rate which has seen a reduction of carbon intensity in the economy by 36% of 1990 levels (figure 1). (The Committee on Climate Change ((The CCC)) 2015)

Figure 1. Carbon Budget of the UK (Source: From DECC in 5^th Carbon Budget by The CCC: 2015)

How to achieve these targets you say?

Well, the Committee on Climate Change that proposed this budget stress the need for action sooner rather than later to allow for consumer adaptation as well as the improvement in energy efficiency in homes and businesses through a low carbon energy profiles: namely a move away from natural gases and into renewables with a complete cease in the emissions of power production; moving from a low carbon economy to a, in my own words, an idealistic no carbon economy!