15.11.2024
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As COP29 comes to the end of its first week, DHA's Seth Tyler and Tim Spicer look at the UK Government's plans to tackle Climate Change.
What is COP29? What does COP29 mean?
‘COP29’ will be the 29th Conference of the Parties meeting. This is the UN’s annual climate change summit, hosting all the ‘Parties’ (meaning the countries who are ‘party to’ – i.e. signed – the UN’s landmark treaty on tackling climate change in 1992).
When and where is COP29 being held and in which country? Who will host COP29?
UNFCCC COP 29 has convened this week in Baku, Azerbaijan and runs until 22nd November.
Why is COP29 so important?
The annual conference is a crucial global event which addresses climate change and discusses the impacts it’s having, but also the solutions that need to be implemented to reduce the damage that’s being done from global greenhouse gas (GHG) emissions.
COP29: What is the UK doing to tackle Climate Change?
At the conference Keir Starmer has announced another major step forward in the Government’s mission to make the UK a clean energy superpower.
As part of this he has set out new ambitious climate targets for the UK, which also seek to boost the UK's clean energy growth.
Mr Starmer has set out that he wishes the UK to “lead the clean energy transition”. He pledged that the UK would cut GHG emissions by 81 % by 2035 compared to 1990 levels. This comes off the back of the government having to renege on its previous emissions reduction commitment of 75% by 2030. Starmer has also set out the following to boost the UK clean energy economy:
• British manufacturing benefiting from a £1bn offshore wind deal in Hull;
• The introduction of a Clean Industry Bonus a new initiative to encourage offshore wind developers to invest in key industrial regions, coastal communities, and oil and gas hubs. The CIB will provide £27 million per gigawatt of offshore wind projects, with potential funding of up to £200 million for projects totalling between 7-8 GW;
• The firing of the starting gun on the UK’s Carbon Capture and Storage industry, with funding agreed for two industry clusters in Teesside and Merseyside;
• The procurement of the ScottishPower £1 billion turbine contract for its East Anglia TWO offshore windfarm to Siemens Gamesa, including blade production at its Hull blade factory;
• The UK’s commitment at the International Investment Summit where Iberdrola doubled their investment in the UK, through Scottish Power, from £12bn to £24bn over the next 4 years;
• The launch of the new CIF Capital Market Mechanism on the London Stock Exchange which has the potential to mobilise up to $75 billion additional climate capital for developing countries over the next decade;
• Market reforms to unlock £40 billion per year of investment;
• Targeting nearly twice as much onshore wind capacity by 2030;
• Having a target of four times as much battery capacity connected to the grid by 2030; and
• Targeting three times as much solar power by 2030.
COP29: Will the UK meet its new COP29 declarations?
It will be interesting to see if the Prime Minister can maintain the UK’s commitment to an 81% reduction in emissions by 2035 given their previous U-turn on the 75% proposal. In any event reaching the 75% (2030 target) or the 81% (2035) target will mean a change in approach to the delivery of clean, renewable, energy to a “pace over perfection approach”, a term coined by National Energy System Operator (NESO), a joint venture Government Agency run by Scottish Power energy networks and SSE networks and the UK Government.
There is evidence of this new approach already with the Labour government, with the Prime Minister highlighting the successful delivery of 2GW of nationally significant solar energy since coming into power. However, this statement covers the existing cracks in the system surrounding the grid connection dates for renewable energy schemes, including solar.
The crux of the issue for the timely delivery of renewable energy that the UK requires, and for it to meet its clean energy targets is the availability of grid connection dates and the grid's capacity. Many schemes granted consent within the last year have a grid connection date between 2030 and 2040. This means that schemes granted consent may miss connection dates for 2030 emissions targets, the 2035 commitment, and even wider wind- and solar-related energy generation targets set out in the governments National Policy Statements.
To resolve this issue, Ofgem is currently working on ways to reduce the grid connection time and move away from the first come, first serve grid connection process that is currently operated to enable the NESO to ask applicants to prove that they have reached certain milestones in the application process of a development to secure their grid connection. If not, NESO will be able to remove projects from the pipeline, freeing up grid space. This is likely to reduce the wait time for grid connections, but it is not yet known by how much.
To help the grid connection issues and the capacity of the grid with the uptake of renewable energy, National Grid is undertaking the “Great Grid Upgrade”. This comprises 17 infrastructure projects requiring Development Consent Orders (DCOs) to deliver the upgrades to the National Grid to carry clean, renewable energy to meet the Labour Government's grid decarbonisation target by 2030. The first infrastructure project Yorkshire Green, DCO, was granted in March 2024 and has a completion date in 2028.
We will have to wait to see how this develops over the coming months and/or years as to whether the proposals by Ofgem, NESO and the ‘Great Grid Upgrade’ will reduce grid connection times, allowing clean, renewable energy proposals to help meet the labour administrations 20230 grid decarbonisation targets and the 2030 and 2035 emissions targets.
Whilst the UK Government at COP 29 have made clear commitments to solar and offshore wind development, they have been silent on the development of onshore, other than reinforcing that they have lifted the ‘de facto’ ban on onshore wind. No update was given on the delivery of onshore wind in practice. It is DHA’s understanding that the publication of the revised NPPF is due around 19th December. We eagerly await to see how the revised NPPF removes barriers to onshore wind and other renewable energy generation. Will this come with any economic support such as that currently proposed for offshore wind?
Closing Word
Will the UK government be able to keep its commitment to the new 81% reduction in emissions from 1990 levels? Can we swiftly resolve grid connection issues that are the crux of the issues relating to the delivery of clean, renewable energy to allow it to be a world leader in the industry? Only time will tell.
If you would like to discuss this article in any further detail, please contact DHA Environment’s Tim Spicer or Seth Tyler.
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