At a glance
“United Kingdom 2024: Energy Policy Review“, International Energy Agency (IEA), Aug. 28, 2024.
This report published by the International Energy Agency looks at how the United Kingdom is doing in meeting clean energy and climate goals, including its pledge to reach net-zero emissions by 2050. The report notes the UK has already cut its greenhouse gas emissions by 53 per cent since 1990, closed most coal-fired power stations and set other ambitious goals such as fully decarbonizing its power sector by 2035.
The IEA suggests the rest of the world has a lot to learn from the UK experience in trying to go green while keeping energy both reliable and affordable. It also says the UK needs to build much more infrastructure to support the energy transition and speed up progress for buildings, transport and industry.
Key findings
- GHG emissions: The UK reduced its GHG emissions by 53 per cent from 1990 levels by 2023, with a goal to cut 68 per cent by 2030.
- Renewable energy: Renewables now account for 42 per cent of the UK’s electricity, led by wind energy, up from just 12 per cent in 2012.
- Electricity decarbonisation: The UK plans to fully decarbonise the power sector by 2035, aiming to deploy 50 GW of offshore wind by 2030; 70 GW of solar capacity; and 24 GW of nuclear power by 2050.
- Transport emissions: Transport is the UK’s largest emitting sector, responsible for over one-third of domestic energy-related emissions and the second-largest share of energy demand (35 per cent).
- Energy efficiency in buildings: The UK buildings sector contributes 41 per cent of energy consumption and over a quarter of energy emissions, requiring urgent efficiency upgrades and electrification of heating systems.
- Industry emissions: The industry sector is an important part of the UK economy, accounting for around 20 per cent of UK energy consumption, 14 per cent of emissions and 24 per cent of energy demand.
Take a look
Bigger picture
The IEA report provides critical insights into one of the world’s leading economies on the path to net zero, underscoring the role of swift policy action and technological investments. It shows that climate action is feasible in advanced economies. It could also help influence other countries and global industries such as energy, transportation and construction to take similar steps.
The world could learn from the UK’s struggles with building retrofits, as well as its success in replacing coal generation with renewables. The report also identifies potential trends, such as expanding offshore wind capacity, advancing hydrogen technology, investing in carbon capture, utilization and storage (CCUS) and integrating nuclear energy. All are likely to play a pivotal role in the next phase of the transition.
Looking ahead, the report highlights next steps that are relevant globally. This includes the need for massive expansion of grid infrastructure, the importance of clear technology roadmaps and spatial planning, and balancing near-term emissions reductions with long-term technology development. The UK’s experiences show that while significant progress is possible, maintaining momentum requires sustained policy focus, substantial investment and private-sector collaboration.
Challenges and opportunities
Key barriers to the UK’s energy transition include:
• Lengthy permitting processes for renewable projects and grid infrastructure;
• Skills shortages and supply chain constraints in clean energy sectors;
• Challenges in decarbonizing buildings and heavy transport;
• Decline of the nuclear industry;
• Cost disparities between electricity and natural gas;
• Insufficient grid infrastructure for renewable integration;
• Economic constraints on large low-carbon projects.
To address these challenges, the report recommends:
• Streamlining planning and permitting processes;
• Investing in offshore wind, hydrogen, and CCS technologies;
• Balancing energy costs between electricity and fossil fuels;
• Refining Contracts for Difference auctions for renewables;
• Developing strategies for critical mineral supply and carbon pricing;
• Prioritizing near-term emissions reductions and long-term technology development;
• Investing in skills development and supply chain capabilities;
• Enhancing public-private collaboration with financial incentives.
In their own words
Since 2010, the United Kingdom has made nearly GBP 200 billion of public and private investment in low-carbon energy sectors. The Net Zero Strategy estimates that through the late 2020s and 2030s, an additional GBP 50-60 billion in capital investments will be needed annually to meet net zero and energy security targets.
“United Kingdom 2024:
Energy Policy Review,” International Energy Agency (IEA), August 2024
Final thoughts
The report assesses the UK’s progress towards net-zero goals, noting its success in emissions reduction and ambitious renewable energy targets. It stresses the need for policy stability, infrastructure development, and investment in technologies such as hydrogen and CCUS. The UK’s experiences in offshore wind, nuclear financing, and electricity market design offer valuable lessons for others. However, the report could have further explored the importance of international co-operation and provided a deeper analysis of the social and economic impacts of the energy transition, including job creation and energy equity.
— By Charlie Bush
Download the full report originally published by the International Energy Agency on Aug. 28, 2024.
