Stepping up to the net-zero challenge

It was the Chinese philosopher – Lao Tzu – who is credited with saying that the longest journey starts with a single step. As first reported in Utility Week, we’ve recently outlined 14 steps in total the government can take in the forthcoming Energy White Paper and Budget to support the ongoing journey towards a net-zero economy.

A total of 14 just to get us started underlines the sheer scale of the challenge that lies ahead. No single action will get us to net zero and nor can it be undertaken in isolation. Those in the sector will be familiar with our calls for increasing investment and opportunities for all forms of low carbon generation, greater system flexibility, decarbonising heating and transport, prioritising energy efficiency and providing clarity on carbon pricing.

These steps are all interlinked and show why a consistent and coordinated drive to decarbonise all areas of our economy must be the central theme for the whole of government through all its policy making in 2020.

A new majority government and a more stable political environment should enable greater action. Based on our engagement so far, the government not only recognises how our sector has led the way in reducing UK emissions but also the essential part we will play in decarbonising the rest of the economy.

We have welcomed recent announcements from the government – and look forward to a year of climate action – because we must see further, urgent action to make up for the recent hiatus in energy policy.

While the temptation to put off difficult decisions or make expedient exceptions is ever present, as we’ve said, every policy now needs to meet the net-zero test. So, the government’s intention to bring forward the phase-out of petrol and diesel vehicles to 2035 was welcome – not only as a gratifyingly quick response to one of our 14 steps but as the sort of ambition that we now need.

There has been something of backlash to the 2035 announcement from some quarters, as there has been to the Ofgem decarbonisation plan, which contained no new revelations but did highlight the impending need to replace the gas boilers that heat most of our houses.

True, a year ago we’d have been bemoaning that nobody was even talking about the transformation needed with heating and transport, but it also shows why backing up words with action will not always be an easy ride. It’s why our steps also stress the need for a fair transition, one that doesn’t unfairly burden customers but one that brings them with us on this transformation, explaining what needs to be done and having them involved and informed about the choices and the challenges that lie ahead. The current opportunity to be involved with the Climate Assembly has been particularly pleasing because this is exactly what it’s aiming to do.

A transformation of this scale cannot happen without making big courageous decisions. The way the UK has transformed its sources of power and reduced emissions is rightly trumpeted but owes everything to long term policy consistency, enduring through successive governments and enabling a steady stream of investment and projects. Net Zero means we need much more of that – and on a grand scale – to go further and faster

2020 has to be the year that we start making giant strides towards a target that is now less than 30 years away.