Carbon dioxide emissions fell by just 2.5% across the UK during 2018, the slowest decline since 2012, according to Ofgem’s annual state of the market report.
Last year’s reduction was down from a 3% decrease during 2017, with transport remaining the largest emitter of greenhouse gases despite a 3% dip.
The report showed renewables accounted for a third of electricity generation last year, and the energy regulator is due to publish its new corporate strategy early next year, which will lay out how the watchdog aims to help decarbonise the market at the lowest cost to consumers.
Ofgem chairman Martin Cave said it was important to recognise the progress made so far on decarbonisation but also the challenge that lies ahead.
“The UK has reduced its emissions of greenhouse gases since 1990 at a greater rate than any other advanced economy. But progress may be stalling just when we need to step up our efforts.”
Ofgem’s report also revealed that medium-sized companies now supply 20% of consumers with their gas and electricity.
Switching rates have risen to 20% and hit an all-time high, with medium-sized suppliers benefitting the most from customers shopping around.