UK Must Cut Electricity Costs to Boost Clean Tech Adoption, Advisors Warn

Strategic Insights -

The UK must reduce electricity costs to encourage households to switch to cleaner technologies like heat pumps and electric vehicles, climate advisers have urged. The Climate Change Committee (CCC) has warned that pollution from flights is now greater than greenhouse gas emissions from generating electricity in the UK, and that aviation's climate impacts must be reflected in the cost of flying. Continued growth in aviation emissions could put the UK's climate targets at risk.

The CCC's latest report found that the UK has made significant progress in reducing greenhouse gas emissions, with a 2.5% drop in 2024 and 10 consecutive years of sustained reductions. However, the report also highlighted the need for further policy action to meet the UK's climate commitments, including reducing the cost of electricity.

Key Takeaways:

  • The UK must reduce electricity costs to encourage households to switch to cleaner technologies like heat pumps and electric vehicles.
  • Pollution from flights is now greater than greenhouse gas emissions from generating electricity in the UK, and aviation's climate impacts must be reflected in the cost of flying.
  • The UK has cut its greenhouse gas emissions by more than 50% since 1990, with a 2.5% drop in 2024 and 10 consecutive years of sustained reductions.
  • The rollout of heat pumps and EVs is below where it should be, and clear plans are missing for heat pumps.
  • The Government has not yet tackled the high cost of electricity, which can put people off moving to electric-powered clean technology.
  • The CCC has recommended removing policy costs, such as renewable subsidies and levies to tackle fuel poverty, that have been put on to electricity bills rather than on to gas or into taxation.
  • The committee warned that while tech like heat pumps are much more efficient than their fossil fuel equivalents, the price of electricity needed to run them is around four times that of gas.
  • Electricity needs to be no more than three times more expensive than gas for people to save enough money for it to be worth investing in clean tech.

Statistics:

  • The UK has cut its greenhouse gas emissions by more than 50% since 1990.
  • The UK saw a 2.5% drop in greenhouse gas emissions in 2024.
  • There were 10 consecutive years of sustained reductions in greenhouse gas emissions in the UK.
  • The installation of heat pumps has increased by 56% in 2024.
  • Electric vehicles (EVs) made up 19.6% of new car sales last year.
  • The UK has removed planning barriers for renewables such as onshore wind.
  • Tree planting was up 57% in 2024.
  • Peatland restoration increased 47% in 2024.

Sources:

  • Climate Change Committee (CCC) report
  • The Guardian article by Emily Beament
  • The Department for Energy Security and Net Zero statement
  • Greenpeace UK statement
  • Which? statement