New carbon budget sets out action plan

Making electricity cheaper and providing more clarity to help businesses invest in low-carbon operations are among the key recommendations in a new report by the Government’s climate change advisor.

The Climate Change Committee’s seventh carbon budget sets out a series of measures to reduce emissions by 87% compared to 1990 levels by 2040.

Given the largest share of emissions reductions comes from switching to low-carbon electric technologies across sectors including transport, buildings, and industry, the report says business and households need to be better incentivised through “rebalancing prices to remove policy levies”.

The report also said businesses need clarity on the balance between government support and market mechanisms such as the UK ETS and carbon border adjustment mechanisms, so that they can make the transition to low-carbon operations.

The committee’s Interim Chair Professor Piers Forster, said: “For a long time, decarbonisation in this country has really meant work in the power sector, but now we need to see action on transport, buildings, industry, and farming. This will create opportunities in the economy, tackle climate change, and bring down household bills.”