Energy Focus

Volume 35 Number 3 Reports from the Committee on Climate Change House of Lords Annual Dinner sponsored by Arup & Cadent December 2018 IPCC Special Report 1.5oC – a short summary Cryodiesel: Low carbon transport – Dolphin N2 ENERGY FOCUS This is not an ofﬁcial publication of the House of Commons or the House of Lords. It has not been approved by either House or its committees. All-Party Parliamentary Groups are informal groups of Members of both Houses with a common interest in particular issues. The views expressed in Energy Focus are those of the individual organisations and contributors and do not necessarily represent the views held by the All-Party Parlia- mentary Group for Energy Studies. The journal of The All-Party Parliamentary Group for Energy Studies Established in 1980, the Parliamentary Group for Energy Studies remains the only All-Party Parliamentary Group representing the entire energy industry. We champion cross-sector energy research and development. The Group’s membership is comprised of over 100 parliamentarians, 100 associate bodies from the private, public and charity sectors and a range of individual members. CHAIRMAN’S Published three times a year, Energy Focus records the Group’s activities, tracks key energy and environmental developments through parliament, presents articles from leading industry contributors and provides insight into the views and interests of both parliamentarians and officials. FOREWORD Executive Council Chairman Ian Liddell-Grainger MP Officers Julie Elliott MP | James Heappey MP | Rt Hon Lord Hunt of Kings Heath OBE | Ian Lavery MP Lord O’Neill of Clackmannan | Lord Oxburgh | Neil Parish MP | Lord Redesdale Membership Lead Robert Lane CBE Executive Council Christopher Chope OBE MP | Julie Elliott MP | Martin Fry | Ian Graves Dr Simon Harrison | Louise Kingham OBE | Joan MacNaughton CB | Paul Needley | Albert Owen MP | Michael Roberts OBE Ruth Thompson OBE | Stephen Vaughan | Barbara Vest | Simon Virley | Graham Ward CBE | John Wybrew OBE In the run up to the Christmas recess, we are in the throes of the Brexit agreement that was Disclaimer: The views expressed in Energy Focus are those of individual organisations and contributors and do not necessarily represent the views held by members of the All-Party Parliamentary Group for Energy Studies. brought back from Brussels on 13th November. The initial clamour has not died down, not even a little bit, but the serious work is underway. We have had a privilege debate on contempt of parliament and five days of debate on the issues themselves, all in preparation for the meaningful Contents vote in January in Parliament. Foreword 3 Noise around the Brexit debate will, of course, continue to run throughout the next session with Ian Liddell–Grainger MP, Chairman of PGES ever increasing intensity up to the end of March. CCC Reports 4 Almost unnoticed, the European Court of Justice issued its ruling on an appeal into the Capacity Chris Stark - CEO of the Committee on Climate Change Mechanism. The European Court of Justice annulled the European Commission’s decision not to House of Lords Annual Dinner 8 object to the scheme. The ruling essentially prevents the government from holding future auctions 30th October 2018 - Sponsored by Arup & Cadent and making payments under existing agreements. IPCC Special Report 1.5oC – a short summary 10 However, the Department for Business, Energy and Industrial Strategy has said it intends to work closely with the European Commission to reinstate the scheme as soon as possible. There are at Sponsored Article - Cryodiesel 12 Simon Brewster, CEO, Dolphin N2 explains a low carbon transport development least six other capacity markets within the EU, it is unclear what action is being taken in these. Obituary - Lord Skelmersdale 14 The Parliamentary calendar has been drained of ability to do anything whilst the Brexit issue dominates, however, our Minister of State for Energy & Climate Change, the Rt Hon Claire Perry European Court of Justice ruling on the Capacity Mechanism 15 MP has held a Global CCUS Summit in Edinburgh and signed several accords contributing towards reducing global emission. Parliamentary Record Select Committee Statements, Reports And Inquiries 16 As we go to press, there is plenty to look forward to in the new year, when we expect to hear from Oral Questions 18 the new Chairman of Ofgem, the Energy Research Accelerator and the Durham Energy Institute. We will also have speaker meetings on transport and heat. Legislation 19 PGES is growing in stature, leading with expertise on issues as they arise. Our Associate and Academic Membership is increasing in strength. Our Parliamentary Members, despite the Cover image original work, drawn by annietheillustrator.co.uk. ©PGES 2018, prints available. pressures of political life, still attend meetings, although we would always welcome more! ISSN 0265-1734 For non-members, annual subscription rate is £65.00, single copies £27.00 Members receive a complimentary copy as part of membership to the Group Ian Liddell-Grainger MP Copyright 2016 Parliamentary Group for Energy Studies. All rights reserved. None of the articles or addresses in this publication may be reproduced, stored in a retrieval Chairman, PGES system or transmitted in any form, by any means., electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the Copyright owner. An All-Party Parliamentary Group Printed in Great Britain by First Colour Ltd, London. 2 3 CCC REPORTS Chris Stark CEO of the Committee on Climate Change DECEMBER SPEAKER MEETING When speaking to the Group, four • could replace natural gas in • A strategy should be developed reports had just been issued and parts of the energy system, for low-carbon heavy goods are summarised below. These give where electrification is not vehicles (HGVs) which a good overview of the thinking feasible or is prohibitively encourages a move away from behind the advice that will be given expensive, for example in fossil fuels and biofuels to zero- to BEIS following the recent IPPC providing heat on colder winter emission solutions by 2050 Report on 1½o on the UK progress days, industrial heat processes and actions to meet zero carbon. and back-up power generation See the infographic opposite. • is not a ‘silver bullet’ solution; the Hydrogen in a low-carbon economy report explores some commonly- Public acceptability of hydrogen held misconceptions, highlighting in the home Report issued 22nd November 2018 the need for careful planning Report issued 22nd November 2018 The report by the Committee on The report’s key recommendations are: Climate Change (CCC) assesses the This report for the CCC by Madano potential role of hydrogen in the • Government must commit to and Element Energy assesses UK’s low-carbon economy and finds developing a low-carbon heat the public acceptability of two that hydrogen: strategy within the next three years alternative low-carbon technologies for heating the home: hydrogen • is a credible option to help • Significant volumes of low-carbon heating and heat pumps. decarbonise the UK energy hydrogen should be produced system but its role depends on in a carbon capture and storage These technologies could early Government commitment (CCS) ‘cluster’ by 2030 to help the potentially replace natural gas in and improved support to develop industry grow many UK households as part of the the UK’s industrial capability government’s efforts to decrease • Government must support the carbon emissions in the UK. • can make an important early demonstration of the contribution to long-term everyday uses of hydrogen in The report’s key findings are: decarbonisation if combined with order to establish the practicality greater energy efficiency, cheap of switching from natural gas • carbon emissions reduction is low-carbon power generation, to hydrogen viewed as an important issue, electrified transport and new but there is limited awareness of ‘hybrid’ heat pump systems, • There is low awareness amongst the need to decarbonise which have been successfully the general public of reasons household heating or the trialled in the UK to move away from natural gas implications of switching over to heating to low-carbon alternatives low-carbon heating technologies 4 5 • acceptability of both heating the land’s ability to provide critical Biomass in a low-carbon economy technologies is limited by a lack services including clean water, of perceived tangible consumer healthy soils and timber, and ensure Report issued 15th November 2018 benefit, which has the potential to sufficient food production for an drive scepticism towards the increasing population and space for This report by the Committee on switch over more generally new homes. Climate Change assesses the role of biomass – wood, plants • heating technology preferences Overall, the report finds that and organic waste – in the global are not fixed at this stage, fundamental reform is required strategy to tackle climate change. although heat pumps appear to ensure land becomes a more to be the favoured option in this effective carbon store, whilst early Biomass can play an important research study action is needed to maximise the role in meeting the UK’s long- benefits from changing how land term (2050) emissions targets, • three overarching factors were is used. and moving towards net-zero identified as influencing emissions, but only with stricter preferences for heating The report’s key recommendations governance to ensure sustainable technologies. These factors are: supplies. manifested differently for different • New land use policy should people, meaning that the same promote transformational land The report’s key findings are: factor could lead one person to uses and reward landowners for prefer heat pumps and another to public goods that deliver climate • Managing biomass stocks is an prefer hydrogen, depending on mitigation and adaptation important component of global their overall heating preferences objectives. New policies should climate mitigation strategies and understanding of the two also reflect better the value of technologies.

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