CCC: UK climate action has reduced emissions without increases in household energy bills

16 Mar 2017 12:44 PM

Action to tackle climate change and improve energy efficiency has occurred alongside reductions in household energy bills since the Climate Change Act was passed, new analysis by the Committee on Climate Change (CCC) shows.

While measures to deliver a cleaner, low-carbon electricity system added around £9 a month to the typical UK household energy bill in 2016, this was more than offset by a cut of over £20 per month due to reduced energy demand mainly from more efficient lights and appliances.

In 2016, low carbon-policies made up around 9% of an annual ‘dual fuel’ household energy bill of around £1,160. The majority of the typical household bill resulted from wholesale, transmission and distribution costs which are unrelated to the Government’s low-carbon policies to meet UK carbon budgets and contribute to global efforts to tackle climate change.

The conclusions are set out in the CCC’s fourth independent assessment of the impact of carbon budgets on energy bills. The Committee finds that:

For households:

 For businesses:

There is also a range of opportunities for business arising from the transition to a low-carbon economy. The UK low-carbon economy already makes up 2-3% of GDP and employs hundreds of thousands of people. Its direct contribution to the economy is the same as the oil, gas and coal extraction sectors put together. The low-carbon transition will create opportunities across current and new sectors of the economy.

Lord Deben, CCC Chairman, said: “Action to deliver a cleaner, more efficient energy system is already delivering benefits for households and businesses. UK emissions are falling – down 38% from 1990 to 2015 – while GDP has risen by almost 65% in the same period. Meanwhile, the typical household energy bill has fallen in real terms since 2012. The UK’s progress to reduce emissions, and its comparative advantage in important areas such as the automotive sector, offer opportunities for future growth and employment while delivering vital action to tackle climate change.”

Notes to editors

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