Decarbonising the economy and adapting to climate change
Chapter three of the NIS stems from the central objective of meeting the UK’s net zero emissions target by 2050. The proposed measures include both the deployment of existing technology and the development of newer technologies, and are closely related to the Prime Minister’s Ten Point Plan for a Green Industrial Revolution. While reference is made to recent successes, such as the 70% fall in emissions from the power sector since 2008, it is made clear that further work is required, with over 80% of the UK’s emissions coming from the infrastructure sectors.
The measures proposed to tackle the challenge of net zero emissions by 2050 are categorised as follows:
Power
Approximately 65% of electricity generated in Great Britain is expected to come from renewables by 2030. Further, in order to meet the 2050 target, a virtually carbon free and larger system will be required to meet the demand from increased electrification.
In order to achieve this, the NIS announces a series of funding initiatives for the power sector. These include: GBP160 million to upgrade ports and manufacturing facilities in order to support the development of offshore wind; GBP525 million to bring forward large-scale nuclear and invest in the development of advanced nuclear; GBP220 million for nuclear fusion; and a GBP240 million Net Zero Hydrogen Fund, for both “blue” and “green” hydrogen1. In addition, building on the CCS Action Plan, there is a GBP1 billion commitment to bring forward four Carbon Capture and Storage clusters by the end of the decade and an ambition to capture ten megatons of carbon dioxide per year by 2030. There is also a broader commitment to support the development of floating offshore wind.
Industry
The NIS states that industry accounted for 25% of emissions in 2019, while acknowledging that emissions have more than halved since 1990. A considerable number of the initiatives and funds for the power sector will also benefit the industrials sector. However, in addition to these, the NIS announces a GBP315 million Industrial Energy Transformation Fund to support efficiency and decarbonisation in energy intensive industries. Further fiscal measures are highlighted for future consideration.
Transport
As the highest contributing sector to UK emissions, transport is seen as a key frontier in the realisation of net zero by 2050. The NIS acknowledges the DfT’s work in preparing its Transport Decarbonisation Plan, as well as the Prime Minister’s announcement that new petrol and diesel cars will not be sold after 2030. It then goes on to announce key measures to “kickstart the delivery of a core rapid charging network across motorway and key A road service stations.” These include GBP950 million in grid capacity along motorways and key A roads and a further GBP90 million for local EV charging infrastructure. Recognising that it is not just private transport which requires investment, the NIS also announces funding and initiatives to support and trial the decarbonising of aviation and freight. These measures include GBP21 million for the decarbonisation of aviation, the modernisation of UK airspace, GBP20 million for technology demonstrations in alternative marine fuels and green shipbuilding and GBP20 million to establish zero emission road freight trials.
Buildings
The NIS acknowledges the progress in reducing emissions from UK buildings2 and emphasises the importance of continuing existing schemes to make existing buildings more efficient, while ensuring new builds are appropriately future proofed. The focus is on the continuance of current initiatives rather than the introduction of further measures, with an emphasis on the importance of the phased installation of net zero ready heating systems.
Climate Change adaptation
In addition to setting out the need for infrastructure to evolve in order to reduce emissions, the NIS also highlights the importance of the design of new infrastructure considering risks associated with climate change. In doing so, reference is made to the risks identified in the 2017 Climate Change Risk Assessment and the guidance for policy and programme makers set out in the ¬Green Book Supplementary Guidance on Accounting for the Effects of Climate Change.
Nature-based solutions and waste
The NIS acknowledges that “nature-based solutions have an essential role to play both in climate mitigation and adaptation.” This is substantiated by a commitment to further funding to help England to meet its share of the Climate Change Committee’s recommendations to plant 30,000 hectares of trees per year in the UK. In addition to this funding commitment, the NIS highlights the importance of extended producer responsibility in the waste sector, and promotes the use of waste tracking technology to assist with this.
Water and flood risk management
These measures are intended to tackle an increased risk of flooding or drought. They include reference to the March 2020 Budget announcement of GBP5.2 billion by 2027 to better protect 336,000 properties and boost resilience of communities to the increased risk of flooding and coastal erosion, as well as a GBP200 million Flood and Coastal Resilience Innovation Programme. Future requirements to increase resilience in water supplies and reduce the overall demand for water are also recognised as being key in better managing supply requirements.
Innovative technologies
In addition to the research and development funds referred to for each sector, the NIS sets out ongoing funding commitments to bringing innovative technologies to market, such as through the Energy Innovation Programme.
All of the above measures are framed by an indication of the level of investment required in order to spark a “green industrial revolution”. Reference is made to policy levers, public financing, appropriate regulation and tax measures as mechanisms to support this revolution. While the NIS doesn’t go into detail on these measures, further detail will be set out in the coming year, including in the Net Zero Review, Energy White Paper, UK Hydrogen Strategy and Industrial Decarbonisation Strategy.
If you have any questions about the potential implications of the NIS for your business, please contact Ian Graves, Legal Director, or Henry Jeffreys, Associate, members of our Planning and Land Use team and UK Infrastructure, Construction and Transport sector group.
1 Blue hydrogen is derived from natural gas through the process of steam methane reforming. Green hydrogen uses renewable energy to produce hydrogen from water.
2 Down 25% since their peak in 2001.
