Climate Change Committee sets its Seventh Carbon Budget

The Climate Change Committee (CCC), the UK’s independent statutory body for advising the Government on reducing its emissions has published its Seventh Carbon Budget. These budgets represent the legally binding limit for greenhouse gas emissions that the Government must stick to within a five-year period, in this case, between 2038 and 2042.  These limits will be agreed to this year as part of the Government’s stated commitment to reach net zero emissions by 2050.

The CCC estimates that the carbon budget for 2038-2042 should be set at 535 megatonnes of CO2 equivalent, this includes all domestic emissions as well as emissions from international aviation and shipping. This budget represents a reduction to a quarter of the UK’s current levels, and an 87% reduction compared to 1990 levels.

Achieving these levels in reduction would require investing around 0.2% of the UK’s GDP each year, which includes a sixfold increase in the number of offshore wind farms, and a doubling of onshore turbines. These changes, and reducing the reliance on gas and other fossil fuels, is estimated to bring savings of at least £700 for individual households energy bills as energy security increases. Electrification is set to make up 60% of the emissions reduction, with the CCC recommending that the Government accelerates the roll-out rate of heat pumps, electric vehicles and the decarbonisation of the grid. Although energy costs may rise in the short-term during the transition period the budget emphasises the additional economic benefits of achieving Net Zero, stating that large parts of the economy would see little impact from the transition but it would significantly increase economic security against fossil fuel price shocks, which have plagued the UK economy since the 1970s.

This latest CCC budget highlights how taking action against climate change is not counter to the Government’s economic goals, and that the sooner the Government acts, the sooner the UK will benefit.