Increasing private investment in low carbon energy

A CUSP and Aldersgate Group briefing

Power accounts for 21% of the UK’s greenhouse gas emissions. Decarbonising the energy sector in line with our Climate Change Act target of at least an 80% reduction in emissions by 2050 compared to 1990 will require significant investment in low carbon energy. The government anticipates that around 95GW of new electricity generating capacity will need to be built over the next two decades.

The outlook for low carbon energy generation is mixed. Clear policy drivers in this area have established a private investment market, notably in the offshore wind market. Investments in low carbon power generation have been proceeding at the necessary pace in line with Committee on Climate Change (CCC) indicators, and account for almost all progress in reducing GHG emissions from 2012.

[1]As of 2016. Committee on Climate Change (June 2017) Meeting Carbon Budgets: Closing the policy gap
[2]National Audit Office (July 2016) Nuclear Power in the UK
[3]Committee on Climate Change (2016) 2016 Progress Report to Parliament