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Tighter UK Emissions Cap: Energy, Industry and Aviation

UK Emissions Trading Scheme Authority (UK ETS) announces sweeping measures to impose stricter emission caps on energy sectors, energy intensive industries and aviation from 2024. These reforms aim to encourage the transition to cleaner energy sources, reduce carbon footprint and increase energy security.

Since 2021, the UK ETS has implemented emission caps for the aviation, energy and power industries. However, starting next year, these sectors will be required to constantly reduce their emissions, in line with net zero emission targets. This underscores the importance of long-term decarbonization efforts.

The UK's emission of CO2 is around 5.22 t. This also includes issues relating to the use of all energy sources, in particular industry and aviation. An important point about the impacts on the environment is the fact that the issue of aviation was discussed at COP 26. The results on aviation should impact global emissions by 2050.

Emission limits will be set at the proposed maximum level, providing flexibility, for example, to industries. In addition, additional licenses will be introduced to the market between 2024 and 2027. Industries will also be protected from international pressure, with the guarantee of free allocation of licenses until 2026, as announced by the Department of Energy Security and Net Zero.

The reforms cover not only the energy sectors and energy-intensive industries, but also include the expansion of emission limits to cover the domestic shipping and waste sectors. This gradual approach will allow industries to adapt and invest in long-term decarbonization strategies while maintaining flexibility.

In a joint statement, UK ETS Authority Ministers, including Lord Callanan, Julie James MS, Màiri McAllan MSP and Gareth Davies MP, emphasized the importance of these measures in the current context of rising energy prices. They highlighted that the decisions taken are aimed at accelerating the transition to greener and safer energy, leading not only to net zero but also supporting crucial industries in their journey towards long-term sustainability.

 

Data on clean energy production in the UK

 

Non-hydropower renewable energy generation in the UK has been mainly driven by wind, solar and bioenergy sources. These sources represented around 42% of the total electricity generation mix in 2022, an increase from the 36% recorded in 2019. This trend reflects the country's continued commitment to increase the share of renewable energy in its energy supply and reduce carbon emissions.

In January 2022, the SSE company announced details of its first solar project, which will provide 30 MW of clean energy. This project forms part of SSE's ambitious GBP 12.5 billion investment program which aims to drive the transition to a net zero energy economy. The 30 MW solar farm, called Littleton Pastures, is located near Evesham in Worcestershire.

Covering an area of 77 acres, the solar farm is expected to be completed by the end of 2023. Once operational, it will be able to provide enough energy to power approximately 9,400 homes. This project will contribute to increasing the UK's solar capacity and further strengthen the country's position as a leader in renewable energy generation.

In 2022, the UK and Germany led the share of wind energy among countries in the world. The UK achieved an impressive share of 25% in wind power, closely followed by Germany with 22%. These numbers reflect these nations' ongoing efforts to drive the transition to renewable energy sources and reduce their reliance on fossil fuels.

Meanwhile, Australia and Japan stand out in the use of solar energy among the G20 countries. Australia achieved a significant share of 13% in solar energy, consolidating its position as a leader in this area. Japan has also made notable progress, with a share of 10% in solar energy by 2022. These numbers indicate these countries' commitment to harnessing the abundance of sunlight to generate clean, sustainable electricity.

These high shares of wind and solar energy demonstrate the growing global recognition of the importance of renewable energies in the search for sustainable solutions and in the reduction of greenhouse gas emissions. As more countries follow these examples, we can expect an even greater acceleration of the global energy transition towards a cleaner and more sustainable future.

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This content was originally created in Portuguese.

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