The UK must scale-up decarbonisation of heat and transport, according to the International Energy Agency’s (IEA), who has published its latest review of UK energy policies.
The 220-page report was published on 6 June, and it is the first detailed report on the country since 2012. It applauds the UK’s decarbonisation efforts and its leadership role, including in the design of energy efficiency policies through energy supplier obligations and voluntary agreements with industry.
But it stressed the need for greater investment in the transport and heat sectors if the country is to reduce its emissions in line with existing commitments under the Paris Agreement. A mix of technology innovation and electrification will be required, boosted by fiscal policies and increased energy efficiency to offset higher power costs. It also recommends that the government promote electric and low-emission vehicles and development of a national charging network and design a scheme to replace the Renewable Heat Incentive, which is due to close in 2021.
Additionally, it recommends that the government ensure timely decisions on future Contracts for Difference auctions in order to provide certainty to project developers.