On 26 February, the Climate Change Committee published their advice to government on the 7th Carbon Budget, covering the period 2038 – 2042.  

Tom Glover, RWE UK Country Chair: “We welcome the publication of the Climate Change Committee’s advice on the 7^th Carbon Budget. The report rightly highlights the critical role for a decarbonised power sector in driving emissions reductions across the economy, accounting to 60% of emissions reductions in 2040.  

To meet growing demand from other sectors, the electricity sector is required to expand at the same time as decarbonise. Renewables such as wind and solar will make up the bulk of generation by 2040, alongside storage such as batteries and low-carbon, dispatchable generation including gas CCS and hydrogen.  

Their recommendations provide a helpful blueprint for policymakers and the private sector: government must move at pace to remove barriers including planning and grid connections, and provide certainty with clear, timely decisions that give businesses confidence to invest. 

We particularly welcome the Committee’s recommendation to better incentivise households and businesses to switch to low-carbon electric technologies in other sectors such as heat and transport by rebalancing prices to remove policy levies that are currently levied on electricity bills. 

They also note the importance of ensuring the design and funding of the next CfD auction is right to secure the level of renewable capacity required, and to provide clarity on the future of electricity market arrangements as soon as possible.”