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UK Climate Policy And Politics A National Perspective Andrew Pendleton Institute for Public Policy Research (ippr) Oslo, 25 May 2010 Overview 1. 2. 3. 4. The Climate Change Act (2008) - What does it say? - How does it work? Climate policy in the UK - How the UK implements the Act? The Politics of Climate Change - Why there are still major challenges - Fairness and the climate paradox The Way Forward 1. The Climate Change Act • Passed in 2008 following a major UK campaign (see http://opsi.gov.uk/acts/acts2008/ukpga_20080027_en_2#pt1) • Four main elements: - 2050 target of at least 80% reductions in GHG emissions below 1990 levels - 2020 interim target of at least 34% reductions in GHG emissions below 1990 levels (without offset credits) - Carbon budgets in five year periods (now set to 2022) - Climate Change Committee established to advise on targets, budgets and policy (see http://www.theccc.org.uk/home) 1. The Climate Change Act Source: Department for Energy and Climate Change 2. Climate policy in the UK • EU ETS – Covers the high emitters in the UK economy§§ • CRC Energy Efficiency Scheme – Non ETS sectors, such as supermarkets and hospitals – 20,000 organisations taking part with 5,000 buying permits • Renewables Obligation – Predates the Climate Change Act as was established in 2002 – Recent revision weight subsidy in favour of offshore wind • Carbon Emissions Reduction Target (CERT) – Aimed at households to encourage efficiency – Obligation is on energy suppliers to provide household efficiency 2. Climate policy in the UK • Climate Change Levy – A small levy on energy use for businesses; recycled as a tax relief – Likely to be changed to become a tax on emissions • Moratorium on coal power – Previous government had agreed no new coal without CCS – New government may introduce and EPS • Energy Bill expected in new Parliament – Likely to include provisions for new nuclear – Possible focus on de-centralised energy • Feed-in-tariff – Was due to go ahead for small and domestic installations – May now be expanded to overlap with RO 3. Politics of Climate Change • 3. Politics of Climate Change • 3. Politics of Climate Change e an d pl oy m en t an d th e ec on om an y tiTh so e Pe ci N al ns H be S io ns ha vi an ou d Im r ca m re ig En ra fo tio rt er n gy he el an de d G rly pe lo ba tr ol lw co ar st m s in Ed g/ u Cl ca im tio at n e ch Fo an re ge Tr ig an n sp po or lic ta y nd tr af fic C hi ld ca re rim ne m C U 3. Politics of Climate Change Debate in UK is far from settled 80% 70% 60% 50% 40% 30% 20% 10% 0% % all 3. Politics of Climate Change • 3. Politics of Climate Change • 3. Politics of Climate Change 3. Politics of Climate Change Income Decile 1st (Poorest) 2nd 3rd 4th 5th 6th 7th 8th 9th 10th (Richest) % change in average weekly income (before housing costs) -1.07 -0.71 -0.65 -0.6 -0.55 -0.48 -0.43 -0.37 -0.34 -0.25 % change in average weekly income (after housing costs) Figure 1: Distributional effect of carbon tax @ £25 per tonne of CO2 (ippr 2010) -1.68 -0.88 -0.75 -0.76 -0.63 -0.53 -0.47 -0.4 -0.37 -0.27 4. The Way Forward Less likely to vote for that • 3. 80% Politics of Climate Change party More likely to vote for that 70% party • 3. 60% Politics of Climate Change 50% 40% 30% 20% 10% 0% -10% -20% Foreign oil and gas - all Climate change - All Economic Opps - All 4. The Way Forward • Even in the climate-progressive UK, there are deep troubles ahead as climate policy ‘bites’. • There is a need to reframe away from climate policy for the sake of the climate • ippr’s research suggests that in the UK, that means a focus on energy security (the end of cheap oil and gas!) • Fairness is also important - although Norway is already a fairer country than the UK! • Each country may well be different; ippr plans to repeat its research elsewhere. • The end of the road for environmentalism, or just a new road altogether? THANK YOU For further information, please contact [email protected] / www.ippr.org