Theresa May confirmed last week that the UK government will legislate to reduce carbon emissions to net-zero by 2050, following the recommendations set out by the Committee on Climate Change (CCC).
The energy industry has welcomed this decision. Lawrence Slade, Chief Executive of trade body Energy UK, commented:
“This exciting commitment from the government to meeting the 2050 net-zero target will see the UK continue its world-leading role in tackling climate change, and the energy sector is ready to lead further progress which will deliver benefits for the environment, the economy and customers.“
However, it is widely accepted that a net-zero target can only be achieved with bold, clear and consistent policy-making from across all government departments, combined with a huge amount of investment in our energy system.
Chancellor Philip Hammond warned that it could cost around £1 trillion to achieve this target, which then raises the question of how it will be funded. Most likely it will be passed through to businesses via a tax on their energy bills. So whilst we await the finer details of the proposed legislation, we recommend that businesses get ahead of this and start preparing now to reduce consumption by developing an effective energy management strategy.