Policy & Socio-Economics

The following report accompanies the Committee on Climate Change’s 2017 report on energy prices and bills. It was written by Ricardo Energy and Environment.

The report provides an analysis of the opportunities to UK businesses to supply global markets with low carbon materials and goods and services. The report considers: the position of the current UK low carbon economy the size of the market opportunity for UK businesses in 2030 and 2050 the barriers to UK business capturing a larger share of the global market the opportunity to increase the UK’s share of future global markets

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The Paris Agreement marks a significant positive step in global action to tackle climate change. This report considers the domestic actions the UK Government should take as part of a fair contribution to the aims of the Agreement.<br/>The report concludes that the Paris Agreement is a significant step forward in global efforts to tackle climate change. It is more ambitious in its aims to limit climate change than the basis of the UK’s existing climate targets. However it is not yet appropriate to set new UK targets. Existing targets are already stretching and the priority is to take action to meet them.

At the request of the government of Japan under its G20 presidency the International Energy Agency produced this landmark report to analyse the current state of play for hydrogen and to offer guidance on its future development.

The report finds that clean hydrogen is currently enjoying unprecedented political and business momentum with the number of policies and projects around the world expanding rapidly. It concludes that now is the time to scale up technologies and bring down costs to allow hydrogen to become widely used. The pragmatic and actionable recommendations to governments and industry that are provided will make it possible to take full advantage of this increasing momentum.

Hydrogen and energy have a long shared history – powering the first internal combustion engines over 200 years ago to becoming an integral part of the modern refining industry. It is light storable energy-dense and produces no direct emissions of pollutants or greenhouse gases. But for hydrogen to make a significant contribution to clean energy transitions it needs to be adopted in sectors where it is almost completely absent such as transport buildings and power generation.

The Future of Hydrogen provides an extensive and independent survey of hydrogen that lays out where things stand now; the ways in which hydrogen can help to achieve a clean secure and affordable energy future; and how we can go about realising its potential.

Link to Document on IEA Website

Energy used for heat accounts (in terms of final consumption) for approximately 45% of our total energy needs and is critical for families to heat their homes on winter days. Decarbonising heat while still meeting peak winter heating demands is recognised as a big perhaps the biggest challenge for the industry. The way heat has been delivered in the UK has not fundamentally changed for decades and huge investments have been made in gas infrastructure assets ranging from import terminals to networks through to the appliances in our homes. Changing how heat is delivered whichever way is chosen will be a major economic and practical challenge affecting families and businesses everywhere. Any plan to decarbonise will need to address power and transport alongside heat. Our report has also looked at potential decarbonisation of power and transport as part of a whole energy system approach.

In this report we explore ways that the heat sector can be decarbonised by looking at four possible future scenarios set in 2050. These stylised scenarios present illustrative snapshots of alternative energy solutions. The scenarios do not present a detailed roadmap – indeed the future may include some elements from each. We have analysed the advantages disadvantages and costs of each scenario. All our scenarios meet the 2050 Carbon emissions targets. In this report we have concentrated on reductions to CO₂ emissions and we have not considered other greenhouse gases.

When looking out to 2050 there is huge uncertainty surrounding how gas will be consumed transported and sourced in Great Britain (GB). The extent of the climate change challenge is now widely accepted and the UK Government has introduced a legislative requirement for aggressive reductions in carbon dioxide (CO2) emissions out to 2050. In addition at European Union (EU) level a package of measures has been implemented to reduce greenhouse gas emissions improve energy efficiency and significantly increase the share of energy produced from renewable sources by 2020. These policy developments naturally raise the question of what role gas has to play in the future energy mix.



To help inform this debate the Energy Networks Association Gas Futures Group (ENA GFG) commissioned Redpoint and Trilemma to undertake a long-range scenario-based modelling study of the future utilisation of gas out to 2050 and the consequential impacts of this for gas networks. Our modelling assumptions draw heavily on the Department of Energy and Climate Change (DECC) 2050 Pathways analysis and we consider that our conclusions are fully compatible with both DECC‟s work and current EU policy objectives.



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The CCC has established a variety of viable scenarios in which UK decarbonisation targets can be met. Each has consequences for the way in which the UK’s gas network infrastructure is utilised. This report considers the implications of decarbonisation for the future regulation of the gas grid.<br/>The CCC’s 5th Carbon Budget envisaged different scenarios that would enable the UK to meet its emissions targets for 2050. These scenarios represent holistic analyses based on internally consistent combinations of different technologies which could deliver carbon reductions across different sectors of the economy.<br/>The CCC’s scenarios incorporate projections of the demand for natural gas to 2050. The scenarios imply that the volume of throughput on the gas networks1 and the nature and location of network usage is likely to change significantly to meet emissions targets. They are also characterised by significant uncertainty.<br/>Under some decarbonisation scenarios gas networks could be re-purposed to supply hydrogen instead of natural gas meaning there would be ongoing need for network infrastructure.<br/>In other scenarios gas demand in buildings is largely replaced by electric alternatives meaning portions of the low pressure gas distribution networks could be decommissioned.<br/>Patchwork scenarios are also possible in which there is a mixture of these outcomes across the country.<br/>In this project the CCC wished to assess the potential implications for gas networks under these different demand scenarios; and evaluate the associated challenges for Government and regulatory policy. The challenge for BEIS and Ofgem is how to regulate in a way that keeps options open while uncertainty persists about the best solution for the UK; and at the same time how best to make policy and regulatory decisions which would serve to reduce this uncertainty. Both Government and Ofgem have policy and regulatory levers that they can use – and we identify and evaluate such levers in this report.

Hydrogen is recognized as a promising and attractive energy carrier to decarbonize the sectors responsible for global warming such as electricity production industry and transportation. However although hydrogen releases only water as a result of its reaction with oxygen through a fuel cell the hydrogen production pathway is currently a challenging issue since hydrogen is produced mainly from thermochemical processes (natural gas reforming coal gasification). On the other hand hydrogen production through water electrolysis has attracted a lot of attention as a means to reduce greenhouse gas emissions by using low-carbon sources such as renewable energy (solar wind hydro) and nuclear energy. In this context by providing an environmentally-friendly fuel instead of the currently-used fuels (unleaded petrol gasoline kerosene) hydrogen can be used in various applications such as transportation (aircraft boat vehicle and train) energy storage industry medicine and power-to-gas. This article aims to provide an overview of the main hydrogen applications (including present and future) while examining funding and barriers to building a prosperous future for the nation by addressing all the critical challenges met in all energy sectors.

This report for the CCC by Madano and Element Energy assesses the public acceptability of two alternative low-carbon technologies for heating the home: hydrogen heating and heat pumps.

These technologies could potentially replace natural gas in many UK households as part of the government’s efforts to decrease carbon emissions in the UK.

The report’s key findings are:

• carbon emissions reduction is viewed as an important issue but there is limited awareness of the need to decarbonise household heating or the implications of switching over to low-carbon heating technologies
• acceptability of both heating technologies is limited by a lack of perceived tangible consumer benefit which has the potential to drive scepticism towards the switch over more generally
• heating technology preferences are not fixed at this stage although heat pumps appear to be the favoured option in this research studythree overarching factors were identified as influencing preferences for heating technologies.

These factors manifested differently for different people meaning that the same factor could lead one person to prefer heat pumps and another to prefer hydrogen depending on their overall heating preferences and understanding of the two technologies. The factors are:

• perceptions of the negative installation burden
• familiarity with the lived experience of using the technologies for heating
• perceptions of how well the technologies would meet modern heating needs both hydrogen heating and heat pumps face significant challenges to secure public acceptability

This is the CCC’s eighth annual report on the UK’s progress in meeting carbon budgets.

The report shows that greenhouse gas emissions have fallen rapidly in the UK power sector but that progress has stalled in other sectors such as:

• heating in buildings
• transport
• industry
• agriculture

The report also outlines the Committee’s view of key criteria for the government’s ’emissions reduction plan’ published later in 2017

Natural gas plays a central role in the UK energy system today but it is also a significant source of greenhouse gas (GHG) emissions. The UK committed in 2008 to reduce GHG emissions by at least 80% compared to 1990 levels by 2050. In June 2019 a more ambitious target was adopted into law and the UK became the first major economy to commit to “net-zero” emissions by 2050. In this context the Energy Networks Association (ENA) commissioned Navigant to explore the role that the gas sector can play in the decarbonisation of the Great Britain (GB) energy system. In this report we demonstrate that low carbon and renewable gases can make a fundamental contribution to the decarbonisation pathway between now and 2050.