Rinnai Director Chris Goggin evaluates the new potential path of UK emissions reductions under Prime Minister Andy Burnham. As NetZero has become increasingly polarising both domestically and internationally by some mainstream media outlets, the UK’s pursuit of carbon neutrality must be adapted to match both public demand and market forces. Continue reading to see the how and why of NetZero being altered to combat diminishing political and public support fuelled by global economics and media misinformation.
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To begin this article, it must be clarified that there is no political bias that has motivated any aspect of this reportage. Transparency must be used to provide the UK market with information that provides insight into the misinformation and weaponisation of energy. At the time of writing, it is widely accepted that 97% of the global scientific community accept that accelerated climate change is due to global industrial practises.
Global fuel provision is a discernible aspect of opposing political thought and is therefore the subject of distinct interpretations made by opposing ideologies. This article’s intention is to not suggest any political bipartisan support but to explain why energy is a key component of domestic as well as international economics and politics.
UK NetZero ambitions are still in place and legislated into law. The UK’s primary net zero legislation is anchored by the Climate Change Act 2008, which was amended in 2019 to legally bind the government to reaching a 100% reduction of net greenhouse gas emissions by 2050 compared to 1990 levels. However, there is loud disillusionment in sections of mainstream media and politics.
The scientific led aim of UK carbon neutrality has been increasingly used to polarise viewpoints and is now considered by a significant minority as an unnecessary cost that is preventing personal and national economic growth.
Damage to the reputation of NetZero is so successful there have been calls for a rebranding by the Energy Security and NetZero Committee, a cross-party group of MPs who advised the Prime Minister to refrain from using the term “NetZero” as the term has “lost much of its significant positive association,” and instead has become a “lightning rod for opposition to climate action.” Additionally, the committee also suggested that “NetZero” should be dropped from the governmental department title of: “Department of Energy Security and NetZero.”
Instead, the UK’s new Prime Minister Andy Burnham has reconfirmed his support for NetZero aims by introducing a new People’s Power project. This £30 million scheme will focus on implementing community-based renewable energy. Communities across the UK will soon be able to construct and control their own renewable energy supply.
The investment stems from Great British Energy, a publicly owned company created by the UK government to invest in local clean energy projects. In time, over 1,000 community led renewable energy projects will be financed by Great British Energy.
Additionally, Andy Burnham has announced the creation of Great British Grid, a publicly owned company designed to bring energy costs in line with Europe inside ten years. Great British Grid will apply pressured competition for renewable grid connection projects.
In a recent newspaper article Andy Burnham wrote, “Every council and community group awarded funding will have at least part-ownership in its renewable energy projects. That means, in the years ahead, more and more communities in Britain will do more than simply host solar panels and wind turbines. They will own a stake in them and retain a share of the wealth they create.”
Prime Minister Andy Burnham has taken this course of action regarding community renewable projects because of past success in rejuvenating Manchester’s public transport system from his time as Mayor of the city.
Control of buses and trams was handed over to a central system as opposed to the private sector which had been in place for nearly 40 years. Fares were capped and free transport was issued to the young and old. Despite being centrally controlled, the public benefits from having all financial proceeds being placed back into the transport network with the aim of upholding steady and cost-effective public service standards.
Although a positive step towards clean power introduction to UK communities, it remains to be seen if the same public friendly approach to local transport can be utilised in local clean energy provision or domestic fuel policy and if this approach aligns itself with current public and mainstream media support.
It appears that Andy Burnham is pivoting away from free market conditions to a more flexible approach. From an objective view, free market conditions under which water and rail companies operate, have not produced cost-effective and adequate public services. In particular the water companies are shackled with billions of debt.
There are many obstacles that Andy Burnham will have to confront in his attempt to introduce community renewable energy projects. Great British Energy has been created to introduce renewables only. No oil, gas or electricity will be dispersed by Great British Energy, meaning that solar and wind will be prioritised.
This will provide a level of dissent from homeowners who prefer to keep landscapes untarnished from solar PV modules and wind turbines, a concern that some sections of the mainstream media perpetuate. As well as supporting homeowners, some mainstream media outlets are also culpable of spreading significant misinformation related to inflating overall government cost and by diminishing environmental impact, or by claiming that natural weather patterns are the sole cause of accelerated climate change.
As NetZero has been demonised by select sections of the mainstream media Andy Burnham has been forced to apply a vaguely populist approach to UK decarbonisation. This is evident in a range of modifications to MEES standards.
The first applies to the ruling that states from 2031 buildings over 1000 sq meters must upgrade their MEES status to band B. Other notable proposals include the 2030 EPC Band B upgrade for non-domestic buildings under 1000 sp meters being moved to 2031, and the abolishment of the 2027 band C upgrade – for domestic properties, will remain in 2030.
Reviewing in further detail regarding required MEES standards upgrades, non-domestic rented buildings over 1000 sq meters are now advised to enhance their MEES status from band E to band B by 2031. The previous date for final energy system refurbishment was 2030. This new direction will provide landlords with an additional year to complete their new installations.
This means that business owners must improve their energy systems by installing new or adapting existing heating and hot water apparatus to be more energy efficient by 2031. Landlords risk financial penalties as well as having their license to rent properties revoked if they do not comply.
Businesses that rent non-domestic buildings under 1000 sq ft will now no longer have to convert their on-premises heating and hot water system to band B from band E, with no incoming deadline that enforces change. This proposal is designed to provide small business owners with a balanced approach that assists financial stability.
The third proposal focuses on the abolishment of the band C upgrade of MEES standards for domestic rented properties. The previous government aimed to move this to 2027, instead the new date of compliance is set at 2030. This is also designed to alleviate landlords of having to arrange costly modifications.
All three new regulations will combine to create a version of NetZero that is less immediate in its aim of decarbonisation but more thoughtful in respect to the financial considerations of landlords and renters of domestic and non-domestic properties.
These proposals have been prioritised to ensure that any renovations towards energy systems are only considered and completed if they are practical, affordable and cost-effective.
In regard to these three new proposals of policy adaptations, what can the non-partisan observer extrapolate from this new governmental approach? All three suggestions which imply a change of direction in UK decarbonisation strategy are centered on the financial concerns of both renters and landlords of non-domestic and domestic properties. This means that the new government is prioritising fiscal equilibrium over an aggressive form of decarbonisation.
The reasons for this could be viewed as political, as a new government attempts to mould a supportive public image, it would be a sensible move to reduce future costs across the property sector to both renters and landlords, as this will shape appearance into a friendly form to both concerned parties.
An additional political benefit of rolling back elements of UK NetZero policy could be viewed as supporting a public view, or lack of. As NetZero has been demonised by opposing voices in UK media the public are keen to shift the pace of a national energy transition towards a more comfortable financial setting. A majority of the UK public understands that national energy stocks must be replaced with clean alternatives but are equally concerned with financial impact.
Andy Burnham remains an advocate of NetZero and does not wish to rebrand the environmental pursuit. However, it has also been recognised that imposing attached economic commitments to the wider public could risk near abolishment of carbon reducing aims that are enshrined in UK domestic and international law.
This is why the current government is applying a redesigned approach to the fiscal concerns held by many people in the UK. Andy Burnham will continue to assert NetZero values into his time as head of the UK state. It remains to be seen if a more flexible, if not obsequious application of UK decarbonisation will be successful, or if this too becomes the subject of media, political and public scrutiny.