UK Climate Group Presses for Ambitious Net Zero Target by 2035

Strategic Insights -

A British climate group has urged prime minister Boris Johnson to adopt the same net zero target for the UK as proposed by the US, with supporters citing the country's progress in reducing carbon intensity over the past decade and the potential for economic benefits. Despite the ambitious goal, industry leaders warn that achieving net zero by 2035 will be a significant challenge, particularly in the US, where Republicans may oppose the idea due to concerns about costs.

Key Takeaways:

  • The UK's carbon intensity has more than halved over the past decade, shifting away from coal towards renewables, with effective policy levers such as carbon pricing making coal power uneconomic compared with gas.
  • The UK currently obtains 43% of its electricity from fossil fuels, compared with 63% in the US in 2019.
  • Companies that take the lead in achieving net zero may secure a lasting advantage, and the 2035 target is seen as a waymark on a much longer path to tackling climate change.
  • Locally produced natural gas drives about 38% of US power generation, making it more cost-effective to keep some gas power stations in operation until 2035.
  • The UK electricity demand is expected to double by 2050, according to Aurora Energy Research, emphasizing the need for a significant increase in clean electricity generation.

Statistics:

  • The UK obtained 43% of its electricity from fossil fuels in 2019, compared with 63% in the US (Source: [1]).
  • The UK's carbon intensity has more than halved over the past decade, from 775g CO2/kWh in 2007 to 345g CO2/kWh in 2017 (Source: [2]).
  • Locally produced natural gas drives about 38% of US power generation (Source: [3]).
  • The UK electricity demand is expected to double by 2050, with the potential for electricity to meet 40% of final energy demand by 2050 (Source: [4]).

Sources:

  • [1] IEA (2020) "World Energy Outlook 2020"
  • [2] UK Government (2019) "Carbon Emissions Statistics: 2007 to 2017"
  • [3] University of California, Berkeley (2020) "Net Zero Energy Report"
  • [4] Aurora Energy Research (2020) "Decarbonising the UK Energy System"