Policies for a Low Carbon UK Energy System

Prof. Dennis Anderson, Imperial College.  3 October 2007

This paper provides an independent assessment of the policies required, and estimated costs for, achieving a low carbon energy system in the UK. This links to the policies set out within the recent Energy White Paper, building on the findings of the Stern Review. It is suggested that the magnitudes of the incentives required, fall substantially short of what will be needed if the UK is to meet both its near and long-term targets by 2050. Through an analysis of the costs of low carbon technologies relative to those of fossil fuels, the paper puts forward proposals for how the incentives might be financed without unnecessary recourse to the public revenue. The cost implications and incentives needed to move to a higher emission abatement target than the 60% Royal Commission on Environmental Pollution recommendation are also considered.