by Hardwick Legal | Sep 14, 2020 | Purpose Built (LexisNexis)
<article><section><p>Energy analysis: Matthew Collinson, independent specialist energy lawyer and consultant, discusses the <a href="https://www.nationalgrideso.com/document/173821/download" target="_blank" data-sf-ec-immutable="">Future Energy Scenarios</a> (FES) <a href="https://www.nationalgrideso.com/document/173821/download" data-sf-ec-immutable="">2020</a>, providing an overview of common themes and highlights what it means for energy lawyers.</p><section><h2>What is FES 2020?</h2><p>FES is an annual publication by National Grid Electricity Transmission System Operator (NETSO). It actually refers to a suite of documents, but is commonly taken to mean the FES Report, which sets out a range of different, credible scenarios for decarbonising the energy system.</p></section><section><h2><mark id="CITEID_865531"></mark>What are the key changes from FES 2019 to FES 2020?</h2><p>The most important change for FES 2020 is that all scenarios have net zero at their core. The timing of the net zero commitment meant that FES 2019 could only include a net zero sensitivity analysis, whereas FES 2020 is focused on different pathways for achieving the new net zero target.</p></section><section><h2><mark id="CITEID_865532"></mark>What are the common themes highlighted by NETSO in FES 2020?</h2><p>Like its predecessor, FES 2020 highlights four possible scenarios. All but one achieve net zero by 2050: the ‘Steady Progression’ scenario achieves only a 68% reduction in emissions against 1990 levels by 2050.</p><p>In broad terms (and unsurprisingly) the fastest decarbonisation requires changes from both consumers (the products they buy, and how they use them) and industry (efficient products that allow smarter consumption).</p><p>NETSO anticipates that if the transition is driven predominantly by a change in consumer behaviour, increased uptake of residential heating products like air source heat pumps will force the system towards greater electrification. A consumer-led transition is, however, contingent on the success of the smart meter roll-out, and relies on companion technologies like thermal stora</p></section></section></article>
Source: LexisNexis Purpose Built
Future Energy Scenarios 2020
by Hardwick Legal | Sep 4, 2020 | Purpose Built (LexisNexis)
<article><section><p>Environment analysis: Simon Tilling and Stephen Lavington, partner and senior associate respectively in Burges Salmon’s environment and climate change team, discuss the government’s recent carbon emissions tax consultation</p><h2>What is the background leading up to this consultation?</h2><div><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">The </span><a id="ORIGHIT_6" name="ORIGHIT_6" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_6" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">Carbon </span><a data-sf-ec-immutable="" id="ORIGHIT_7" name="ORIGHIT_7" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_7" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">Emissions </span><a data-sf-ec-immutable="" id="ORIGHIT_8" name="ORIGHIT_8" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_8" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">Tax (CET) was first announced in the 2018 budget as a contingency measure in the event of a no-deal Brexit. Had the UK left the EU with no deal it would have immediately ceased participation in the EU </span><a data-sf-ec-immutable="" id="ORIGHIT_49" name="ORIGHIT_49" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_49" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">Emissions Trading Scheme (EU ETS). In those circumstances, the UK </span><a data-sf-ec-immutable="" id="ORIGHIT_50" name="ORIGHIT_50" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_50" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">government would have implemented CET to ensure the continuity of </span><a data-sf-ec-immutable="" id="ORIGHIT_51" name="ORIGHIT_51" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_51" style="font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;"></a><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">carbon pricing across the UK.</span><br></div></section><p>In accordance with the EU-UK Withdrawal Agreement, the UK will remain part of EU ETS until the transition period for leaving the EU ends on 31 December 2020. The <a data-sf-ec-immutable="" id="ORIGHIT_52" name="ORIGHIT_52"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_52"></a>government has already stated its intention to continue <a data-sf-ec-immutable="" id="ORIGHIT_53" name="ORIGHIT_53"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_53"></a>carbon pricing (which forms an essential part of meeting its ambitious 2050 <a data-sf-ec-immutable="" id="ORIGHIT_9" name="ORIGHIT_9"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_9"></a>net<a data-sf-ec-immutable="" id="ORIGHIT_10" name="ORIGHIT_10"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_10"></a>-<a data-sf-ec-immutable="" id="ORIGHIT_11" name="ORIGHIT_11"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_11"></a>zero target) and so will need to implement a replacement regime.</p><p>As outlined in the 2019 <a data-sf-ec-immutable="" id="ORIGHIT_54" name="ORIGHIT_54"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_54"></a>consultation, on ‘The Future of UK <a data-sf-ec-immutable="" id="ORIGHIT_55" name="ORIGHIT_55"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_55"></a>Carbon Pricing’ and the <a data-sf-ec-immutable="" id="ORIGHIT_56" name="ORIGHIT_56"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_56"></a>government response document published on 1 June 2020, the preferred alternative to the EU ETS is a UK <a data-sf-ec-immutable="" id="ORIGHIT_57" name="ORIGHIT_57"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_57"></a>emissions trading scheme (UK ETS).</p><p>If it is not possible to put a UK ETS in place (either on a standalone basis or linked with the EU), the current intention of the <a data-sf-ec-immutable="" id="ORIGHIT_58" name="ORIGHIT_58"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_58"></a>government is to implement CET. This <a data-sf-ec-immutable="" id="ORIGHIT_59" name="ORIGHIT_59"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_59"></a>consultation paper details the <a data-sf-ec-immutable="" id="ORIGHIT_60" name="ORIGHIT_60"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_60"></a>government’s proposals for the operation of CET, building on the legislative framework for the <a data-sf-ec-immutable="" id="ORIGHIT_61" name="ORIGHIT_61"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_61"></a>tax already contained in the <a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-AWW-AWW-MsSWYWD-UUA-UZEYAAUUW-U-U-U-U-U-U-AZUAYBCVZA-ACEEVAZWZA-ZADUBYZW-U-U/1/linkHandler.faces?psldocinfo=Incentivising_net_zero_an_analysis_of_the_government_s_carbon_emissions_tax_consultation&linkInfo=F%23GB%23UK_ACTS%23num%252019_1a_Title%25&A=0.629263770940773&bct=A&risb=&service=citation&langcountry=GB" target="_parent">Finance Act 2019</a> (<a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-AWW-AWW-MsSWYWD-UUA-UZEYAAUUW-U-U-U-U-U-U-AZUAYBCVZA-ACEEVAZWZA-ZADUBYZW-U-U/1/linkHandler.faces?psldocinfo=Incentivising_net_zero_an_analysis_of_the_government_s_carbon_emissions_tax_consultation&linkInfo=F%23GB%23UK_ACTS%23num%252019_1a_Title%25&A=0.06223705701359439&bct=A&risb=&service=citation&langcountry=GB" target="_parent">FA 2019</a>).</p><h2>What provisions have already been made in FA 2019 with regard to the <a data-sf-ec-immutable="" id="ORIGHIT_12" name="ORIGHIT_12"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_12"></a>carbon <a data-sf-ec-immutable="" id="ORIGHIT_13" name="ORIGHIT_13"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_13"></a>emissions <a data-sf-ec-immutable="" id="ORIGHIT_14" name="ORIGHIT_14"></a><a data-sf-ec-immutable="" _.hitnav="Y" name="HIT_14"></a>tax?</h2><p><a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/d-wa-a-aww-aww-msswywd-uu data-sf-ec-immutable="" href=""></a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/d-wa-a-aww-aww-msswywd-uu></p></article>
Source: LexisNexis Purpose Built
Incentivising net zero—an analysis of the government’s carbon emissions tax consultation
