The UK should invest more in low-carbon innovation, in order
to both achieve the 2050 climate change target and secure long-term
economic benefits
London, July 19, 2010 - The UK Committee on
Climate Change (CCC) today advised that the UK should protect
funding for a suite of low-carbon technologies, which if developed
here, will help to reduce emissions by 80% by 2050. It will also
provide the basis for green economic growth in the longer term.
Without government support, a range of essential low-carbon
technologies are likely to get stuck in a so-called 'valley of
death', where development is curtailed, and will fail to make it to
market.
New low-carbon technologies will be vital in generating cleaner
forms of electricity, which can then be used for electric vehicles
and heating, and in delivering energy efficient buildings, areas
which will make a very significant contribution to meeting the 2050
target to reduce emissions by 80% relative to 1990 levels.
The Committee conclude that any reduction in current funding
levels (£550m per year) would increase the risk of missing carbon
budgets and would see the UK losing out on critical opportunities
to build a green economy. Once financial pressures have eased,
increased funding will be required in specific cases (such as
marine technologies and electric vehicles), and for low-carbon
innovation more generally, over the next decade.
The UK's spend on energy Research, Development and Demonstration
(RD&D) as a % of GDP lags behind other developed countries.
This situation is even more worrying in the context of global
investment in technology development that is low relative to
benchmarks proposed by the Stern Review, the International Energy
Agency, and the EU.
Professor Julia King, member of the Committee on Climate Change
said: "The case for action is strong. With adequate funding, new
policies and strengthened delivery arrangements, we would expect UK
firms to take leading roles in the development of key technologies,
driving down emissions to meet carbon budgets and targets, and
fulfilling the new Government's clear objective to build a
low-carbon economy. "
There is much more for the UK to do in terms of supporting
technology development. The Committee recommends that the UK should
focus on the development and deployment of at least 6
technologies:
1. Offshore wind - likely to be the least cost
path for decarbonising the power sector and meeting the UK's 2020
15% renewable energy target. The UK requires 13GW of offshore wind
capacity to be developed, requiring up to £50 million per annum in
funding for Research, Development & Demonstration
(RD&D).
2. Marine (wave and tidal) - the UK has the
potential to be a world leader in this area and has significant
natural resources, estimated at 65GW per year. UK-based companies
have world-leading expertise in marine engineering and
design.
3. Carbon Capture and Storage (CCS) - technology
to remove carbon from coal and gas power generation will be crucial
to meeting the target. The UK is strong on subsurface evaluation
and geotechnical engineering because of the North Sea oil and gas
developments.
4. Smart grids and meters - the UK has research
expertise and industrial capabilities in key smart grid
technologies including electrical machinery, power electronics and
communications.
5. Electric vehicles - the UK has the expertise to
design and build electric cars. Funding needs to be protected for
the purchase of electric cars (£230m) and to support the
development of a national battery charging network (£30m).
Investment of up to £800 million will be required to meet the CCC's
target to have 1.7 million electric cars on the road by 2020.
6. Aviation - UK-based companies are globally
competitive in design and manufacture of advanced wings and
aeroengines. Public support for radical technologies (e.g. blended
wing) will be necessary to achieve UK targets.
The UK should also deploy nuclear power, advanced insulation
technologies, CCS for industry, and heat pumps. The UK should
invest in research and development of hydrogen fuel cell vehicles,
technologies in agriculture and industry, 3rd generation solar PV
technologies, electricity storage and advanced bio-fuels
technologies.
Lastly, the Committee find that there is a lack of clarity in the
institutional landscape that supports low-carbon innovation. The
funding environment is complex and can be difficult for business to
navigate. A strengthened institutional framework - with clear
objectives, desired outcomes and responsibilities, and improved
monitoring and information flows - is required to ensure that
public money is well spent and to increase investor
confidence.
The challenge for the new Government is to set a clear strategy out
to 2050 to focus resources on the right suite of low-carbon
technologies and guide the various delivery bodies to ensure that
public funding delivers long-term environmental and economic
benefits.
The findings are published in a report to the Governments Chief
Scientific Advisor, Professor Sir John Beddington, who requested
the review in October 2009.
Government Chief Scientific Adviser Professor Sir John Beddington
said: "Innovation will be enormously important if the UK is to meet
its climate change goals, and to do so affordably. We need to
develop and deploy the most promising low carbon technologies
quickly across all sectors. In times of austerity we must also make
sure we invest public money to maximum effect. I welcome the
Climate Change Committee's advice in this critical area."
The full report is available here