The UK has topped the G20 in the Low Carbon Economy Index with 10.9% year on year decline in greenhouse gas emissions linked to energy usage.
The analysis by PwC models major economies’ carbon intensity. The UK’s 10.9% reduction is better than any reported in PwC’s analysis over the past seven years.
Recent changes to the Climate Change Levy, Green Deal, and renewables incentives have raised concerns in the industry about stability of regulation and incentives designed to underpin the transition to a low carbon economy.
As a result the report describes the performance as “exceptional”, cautioning that it owes more to “circumstance than policy” with the closure of coal fired power stations, strong economic growth and a warmer winter among the factors.
PwC sustainability and climate change director Jonathan Grant said: “While the annual record for the UK is headline grabbing, it’s the UK’s consistent performance since 2000, reducing carbon intensity by 3.3% on average a year that is notable. It’s critical to at a minimum, maintain it, and ideally increase it.
“The level the UK achieved is more than twice the level achieved globally, and with a deal in Paris on long term climate change on the horizon, is a strong long term competitive positioning.
“While business should expect and plan for more regulation on carbon emissions, this shows the UK has a head start on other countries. Maintaining the UK’s leadership requires stability not surprises in government policy.”
Overall however, the level of reductions in greenhouse gas emissions per unit of GDP needed to limit global warming to 2°C has been missed for the seventh successive year.
Rapid and sustained decarbonisation of around 6.3% is needed every year globally in order to limit global average temperature rise to 2°C.
Emissions reduction targets submitted already by over 160 national governments Paris targets would only limit warming to 3°C by the end of the century, if they were achieved.