Climate Change & the UK Policy Response

1. Climate Change & the UK Policy Response David Muller, Vice Consul, Science and Technology British Consulate General, Atlanta

2. UK Commitment • “Climate Change is... the single most important issue that we face as a global community” Prime Minister Tony Blair April 27 2004 • “But frankly, we need to go beyond Kyoto. Science and technology is the way. Climate change, deforestation and the voracious drain on natural resources cannot be ignored. Unchecked, these forces will hinder the economic development of the most vulnerable nations first, and ultimately, all nations. We must show the world that we are willing to step up to these challenges around the world and in our own backyard” Prime Minster to Congress July 18 2003

3. UK Policy Context • NECESSARY • Scientific Evidence • Environmental Damage • Energy Security • ACHIEVABLE • Targets and Achievements • Portfolio Approach • Technological Options • AFFORDABLE • Continued Economic Growth • Costs of Inaction

4. Is action NECESSARY?

5. Scientific Consensus - Statement by National Academies Statement by Eleven National Academies of Science (G8 plus China, Brazil, India), 7 June 2005 • “it is likely that most of the warming in recent decades can be attributed to human activity” • “the scientific understanding of climate change is now sufficiently clear to justify nations taking prompt action. It is vital that all nations identify cost-effective steps that they can take now, to contribute to substantial and long-term reduction in net global greenhouse gas emissions”

6. CO2 levels are already unprecedented in the last 400,000 years

7. Recent impacts apparently due to human induced climate change • Hottest 10 years on record all since 1991 • Extent of droughts and intensity of rainfall increasing since 1970s • Widespread melting of glaciers • Loss of Arctic sea ice and melting permafrost • Rising sea levels • Increased intensity of hurricanes? • Thames Barrier - used once pa in 1980, 24 times in 2000

8. How much climate change can we accept? • Science suggests need to stabilise global greenhouse gases at maximum 550 parts per million (ppm) (Double pre-industrial levels) • Even 550ppm results in serious climate change and implies a temperature increase of between 2 and 5 C. • And this implies preventing the emission of about 7 Giga Tonnes of Carbon (GtC)/year by 2050

9. Climate Change - the environmental imperative • Climate change, if unchecked, will have dramatic impacts for human welfare and natural eco-systems. • with global average temperature up by a further 1 - 2 C (2050?) we could expect to see • Increased risks to ecosystems & species extinction • Increased incidence of heat waves, floods and droughts • Adverse impacts on human health e.g. increases in the potential transmission of infectious diseases such as malaria and dengue fever • Increased risk of famine • with temperatures up a further 3 - 4 C (2080?) • Ice-sheets at risk? • Climate system instability? • Disappearance of 1/3 to 1/2 of existing mountain glacier mass by 2100, with implications for water supply to many cities

10. UK Energy Security • The UK is currently a net exporter of oil (to 2010) but has just become a net importer of gas. • demand for oil and gas is widely projected to rise by 2020 whilst domestic production is projected to fall. • The UK needs to take a strategic approach to manage this transition effectively. • Energy review announced to consider progress and challenges • Source: DTI 2002

11. Is action ACHIEVABLE?

12. The UK’s strategic response to climate change • COMMITMENT - To put UK on a path to 60% reduction in GHG emissions • CREDIBILTY - By putting in place concrete policies to achieve first steps now • LEADERSHIP - In building consensus around the need for multilateral change and firm commitments to take action to reduce carbon emissions within the framework of the UNFCC. • CO-OPERATION - With other countries willing to make a 60% commitment, on accelerating the development of low carbon technologies, with developing countries on energy efficiency

13. UK Targets & Achievements Targets • Kyoto: Emissions basket 12.5% below 1990 levels by 2008-2010 • Domestic: CO2 emissions 20% below 1990 levels by 2010 • Long term: CO2 emissions 60% below 1990 levels by 2050 Achievements • Annual UK GHG emissions down 15.3% • But CO2 tougher, well down overall but up 3% from 1997 (would have been up 8%)

14. A Portfolio Approach • Emissions Cap and Trade • EU Emissions Trading Scheme • Climate Change Levy • Recycled to support energy efficiency & low carbon innovation • Exemptions for renewables • Renewables Obligation • 10% by 2010, 15% by 2015, aiming for 20% by 2020 • Landfill Tax • Can be offset against environmental projects • Planning Policy • Designed to promote and encourage development of renewables • Transport Measures • Fiscal measures, fuel efficiency, 5% biofuels obligation

15. Technological Options & Energy Efficiency Technological Options • Combined heat & power (co-gen) • Renewable sources – wind, tidal, biomass, solar • Nuclear? (UK is currently considering new nuclear build) • Carbon capture and storage Energy Efficiency • Around half of necessary CO2 reductions by 2020 • Surest most cost-effective way to achieve all of the UK’s energy goals • Simultaneously helps to reduce carbon emissions; improve energy security; take people out of fuel poverty • Will save UK households and businesses over $5.25Bn per year on their energy bills by 2010

16. Is action AFFORDABLE?

17. De-linking growth in GDP, Primary Energy Consumption & Emissions • UK annual emissions down by 15.3% to 2002 • UK economy grew by 36% between 1990 and 2002.

18. Cost of Inaction - Recent economic losses substantial • European floods 2002 • 37 deaths • $16bn direct costs • European heat-wave 2003 • 26,000 deaths • $13.5bn direct costs • UK floods, autumn 2000 • Insurance pay-out $1.75bn • UK hot summer of 1995 • Agriculture, water, retail, insurance losses $1.75bn

19. Climate Change and Local Government

20. Climate Change and Local Government • 75% of the world’s energy is consumed in cities and differences made locally will make a large impact globally London Initiatives • Mayor has committed London to a 20% reduction of CO2 by 2010 • London Climate Change Agency – a municipally-owned entity that will enter into partnerships with private industry to deliver low and zero-carbon projects, services and technologies • Other London policies include: Improved land management and development, congestion charging, improved mass transit

21. Conclusion

22. Conclusion • Unrestrained climate change presents unacceptable risks • Evidence is very strong with very broad scientific consensus • Global control of greenhouse gas emissions essential to stabilise concentrations at a safe level • Need concerted research effort internationally to improve understanding of impacts, response options, costs etc. Risks may be greater than we think. • UK experience and forecasts shows that the shift to a low carbon economy is very affordable: opportunity not cost. • ...NECESSARY, ACHIEVABLE, AFFORDABLE

23. Contact Info:David Muller – david.muller@fco.gov.ukNatalie Pawelski – natalie.pawelski@fco.gov.uk